Document:

Exhibit 10.1

 

MASTER REPURCHASE AGREEMENT

 

 

Among

 

 

JPMorgan Chase Bank, National Association,

as Buyer

 

 

PennyMac Corp.,

as a Seller

 

 

PennyMac Operating Partnership, L.P.,

as a Seller

 

 

PennyMac Holdings, LLC,

as a Seller 

 

 

PMC REO Trust 2015-1,

as a REO Subsidiary

 

 

TRS REO Trust 1-A,

as a REO Subsidiary

 

 

and

 

 

PennyMac Mortgage Investment Trust,

as Guarantor

 

 

Dated January 27, 2015

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

 

	 	 	Page
	 	 	 
	SECTION 1.	APPLICABILITY	1
	SECTION 2.	DEFINITIONS	1
	SECTION 3.	INITIATION; TERMINATION	19
	SECTION 4.	MARGIN AMOUNT MAINTENANCE	26
	SECTION 5.	INCOME PAYMENTS	27
	SECTION 6.	REQUIREMENTS OF LAW	28
	SECTION 7.	TAXES.	29
	SECTION 8.	SECURITY INTEREST; BUYER’S APPOINTMENT AS ATTORNEY-IN-FACT.	32
	SECTION 9.	PAYMENT, TRANSFER AND CUSTODY	38
	SECTION 10.	HYPOTHECATION OR PLEDGE OF PURCHASED MORTGAGE LOANS	38
	SECTION 11.	FACILITY FEE.	38
	SECTION 12.	REPRESENTATIONS	39
	SECTION 13.	COVENANTS OF SELLER PARTY AND GUARANTOR	45
	SECTION 14.	EVENTS OF DEFAULT	52
	SECTION 15.	REMEDIES	55
	SECTION 16.	INDEMNIFICATION AND EXPENSES	59
	SECTION 17.	SERVICING	60
	SECTION 18.	RESERVED	61
	SECTION 19.	DUE DILIGENCE	61
	SECTION 20.	ASSIGNABILITY.	62
	SECTION 21.	TRANSFER AND MAINTENANCE OF REGISTER.	62
	SECTION 22.	TAX TREATMENT	63

 

 

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	SECTION 23.	SET-OFF	63
	SECTION 24.	TERMINABILITY	64
	SECTION 25.	NOTICES AND OTHER COMMUNICATIONS	64
	SECTION 26.	ENTIRE AGREEMENT; SEVERABILITY; SINGLE AGREEMENT	64
	SECTION 27.	GOVERNING LAW	65
	SECTION 28.	SUBMISSION TO JURISDICTION; WAIVERS	65
	SECTION 29.	NO WAIVERS, ETC	65
	SECTION 30.	NETTING	66
	SECTION 31.	CONFIDENTIALITY	66
	SECTION 32.	INTENT	67
	SECTION 33.	DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS	68
	SECTION 34.	CONFLICTS	68
	SECTION 35.	AUTHORIZATIONS	69
	SECTION 36.	RESERVED.	69
	SECTION 37.	MISCELLANEOUS.	69
	SECTION 38.	GENERAL INTERPRETIVE PRINCIPLES	69
	SECTION 39.	JOINT AND SEVERAL	70

 

 

	SCHEDULE 1-A	REPRESENTATIONS AND WARRANTIES RE: MORTGAGE LOANS
	SCHEDULE 1-B	REPRESENTATIONS AND WARRANTIES RE: UNDERLYING REO PROPERTY
	SCHEDULE 1-C	REPRESENTATIONS AND WARRANTIES RE: REO SUBSIDIARY INTERESTS
	SCHEDULE 1-D	REPRESENTATIONS AND WARRANTIES RE: UNDERLYING REPURCHASE TRANSACTIONS
	SCHEDULE 2	AUTHORIZED REPRESENTATIVES

 

 

 

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	EXHIBIT A	FORM OF CONFIRMATION LETTER
	EXHIBIT B	RESERVED
	EXHIBIT C	SELLERS’ AND GUARANTOR’S TAX IDENTIFICATION NUMBER
	EXHIBIT D	EXISTING INDEBTEDNESS
	EXHIBIT E	RESERVED
	EXHIBIT F	RESERVED
	EXHIBIT G	RESERVED
	EXHIBIT H	RESERVED
	EXHIBIT I	FORM OF SECTION 7 CERTIFICATE
	EXHIBIT J	ASSET SCHEDULE FIELDS
	EXHIBIT K	RESERVED
	EXHIBIT L	FORM OF SERVICER NOTICE AND PLEDGE
	EXHIBIT M	FORM OF POWER OF ATTORNEY
	EXHIBIT N	FORM OF REPURCHASE REQUEST

 

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MASTER REPURCHASE AGREEMENT

 

 

This is a MASTER REPURCHASE
AGREEMENT, dated as of January 27, 2015, among PennyMac Corp., a Delaware corporation (“PMC”), PennyMac Operating
Partnership, L.P., a Delaware limited partnership (“POP”), PennyMac Holdings, LLC, a Delaware limited liability
company (“PMH”, and together with POP and PMC, each individually, a “Seller”, and collectively
the “Sellers”), PMC REO Trust 2015-1, a Delaware statutory trust (“New REO Subsidiary”),
TRS REO Trust 1-A, a Delaware statutory trust (“Legacy REO Subsidiary” and together with New REO Subsidiary,
each an “REO Subsidiary” and collectively, “REO Subsidiaries”, and together with Sellers,
each a “Seller Party” and collectively, “Seller Parties”), PennyMac Mortgage Investment Trust,
a Maryland real estate investment trust (the “Guarantor”) and JPMorgan Chase Bank, National Association, a banking
association organized under the laws of the United States (the “Buyer”).

 

Section 1.Applicability.
From time to time the parties hereto may enter into transactions in which any or all Sellers agree (a) to transfer to Buyer Mortgage
Loans on a servicing released basis against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer
to the applicable Seller such Mortgage Loans on a servicing released basis at a date certain not later than the Termination Date
and (b) to pledge the beneficial interests in each REO Subsidiary to Buyer in connection with Transactions. On account of REO Property,
Buyer and PMC agree that from time to time PMC shall initiate the transfer of the REO Properties to New REO Subsidiary against
the transfer by Buyer of funds in an amount equal to the Purchase Price Increase, with a simultaneous agreement by Buyer to permit
the release of REO Properties with respect thereto from New REO Subsidiary, to or for the benefit of POP upon payment by POP of
a portion of the Repurchase Price for the REO Subsidiary Interests representing the Repurchase Price in respect of such REO Properties,
in all cases, subject to the terms of this Agreement. Each such transaction shall be referred to herein as a “Transaction”
and shall be governed by this Agreement, unless otherwise agreed in writing.

 

This Agreement is not
a commitment by Buyer to enter into Transactions (including Purchase Price Increases, from time to time) with Sellers but rather
sets forth the procedures to be used in connection with periodic requests for Buyer to enter into Transactions with Sellers. Each
Seller hereby acknowledges that Buyer is under no obligation to agree to enter into, or to enter into, any Transaction pursuant
to this Agreement.

 

Section 2.Definitions.
As used herein, the following terms shall have the following meanings (all terms defined in this Section 2 or in other provisions
of this Agreement in the singular to have the same meanings when used in the plural and vice versa).

 

“1934 Act”
shall have the meaning set forth in Section 33(a) hereof.

 

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

 

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“Affiliate”
shall mean with respect to any Person, any “affiliate” of such Person, as such term is defined in the Bankruptcy Code;
provided that notwithstanding anything contained herein to the contrary, Private National Mortgage Acceptance Company, LLC and
its direct and indirect Subsidiaries and affiliated entities shall not be included as “Affiliates” with respect to
Seller Parties and Guarantor.

 

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

 

“Agency Approval”
shall have the meaning set forth in Section 13(w) hereof.

 

“Agreement”
shall mean this Master Repurchase Agreement among Buyer, Seller Parties and Guarantor, dated as of the date hereof, as the same
may be further amended, supplemented or otherwise modified in accordance with the terms hereof.

 

“Anti-Money
Laundering Laws” shall have the meaning set forth in Section 12(cc) hereof.

 

“Asset”
shall mean a Purchased Mortgage Loan (including, for the avoidance of doubt, Underlying Repurchase Assets), or REO Subsidiary Interests
owned by a Seller, or Underlying REO Property owned by a REO Subsidiary, as the context may require.

 

“Asset Detail
and Exception Report” shall have the meaning set forth in the Custodial Agreement.

 

“Asset File”
shall mean, with respect to an Asset, the documents and instruments relating to such Asset and set forth in the Custodial Agreement.

 

“Asset Schedule”
shall mean with respect to any Transaction as of any date, an Asset Schedule in the form of a computer tape or other electronic
medium generated by a Seller and delivered to Buyer and the Custodian, which provides information (including, without limitation,
the information set forth on Exhibit J attached hereto) relating to the Assets in a format acceptable to Buyer.

 

“Asset Value”
shall have the meaning set forth in the Pricing Side Letter.

 

“Assignment
and Acceptance” shall have the meaning set forth in Section 20(a) hereof.

 

“Assignment
of Mortgage” shall mean 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 to the party indicated therein.

 

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

 

“Authorized
Representative” shall mean, for the purposes of this Agreement only, an agent or Responsible Officer of each Seller,
each REO Subsidiary, Guarantor and Buyer listed on Schedule 2 hereto, as such Schedule 2 may be amended from time to time.

 

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

 

“Bank”
shall mean City National Bank, in its capacity as bank with respect to the Control Agreement.

 

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

 

“BPO”
shall mean an opinion of the fair market value of a Mortgaged Property, REO Property or parcel of real property given by a licensed
real estate agent or broker in conformity with customary and usual business practices, which generally includes comparable sales
and comparable listings and is reasonably acceptable to Buyer; provided that no BPO shall be valid if it is dated earlier than
270 days prior to any date of determination; provided further that with respect to Mortgage Loans and Underlying REO Properties
subject to the initial Transaction, Sellers shall have seven (7) Business Days from the Purchase Date to update any BPO not otherwise
in compliance with this definition. In addition to the foregoing, Buyer may require an updated BPO to be delivered upon request.

 

“Business
Day” shall mean a day other than (i) a Saturday or Sunday, (ii) any day on which banking institutions are authorized
or required by law, executive order or governmental decree to be closed in the State of New York or (iii) any day on which the
New York Stock Exchange is closed.

 

“Buyer”
shall mean JPMorgan Chase Bank, National Association, its successors in interest and assigns, and with respect to Section 7, its
participants.

 

“Capital Lease
Obligations” shall mean, 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”
shall mean, 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).

 

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“Cash Equivalents”
shall mean (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 any commercial bank, which commercial bank is organized
under the laws of the United States of America or any state thereof, having capital and surplus in excess of $500,000,000, and
rated at least A-2 by S&P and P-2 by Moody’s, (c) repurchase obligations of any commercial bank satisfying the requirements
of clause (b) of this definition and (d) commercial paper (having original maturities of not more than 91 days) of JPMorgan Chase
& Co., but not its Affiliates provided that the commercial paper is United States Dollar denominated and amounts payable thereunder
are not subject to any withholding imposed by any non-United States jurisdiction and is not issued by an asset backed commercial
paper conduit or structured investment vehicle.

 

“Certificate
Distribution Account” shall mean, collectively, (a) the deposit account (the title of which shall indicate that the funds
therein are being held in trust for Buyer) established by the New REO Subsidiary at the Bank subject to a Control Agreement, into
which all Income constituting Liquidation Proceeds with respect to Liquidated REO Property held by the New REO Subsidiary shall
be deposited and (b) the deposit account (the title of which shall indicate that the funds therein are being held in trust for
Buyer) established by the Legacy REO Subsidiary at the Bank subject to a Control Agreement, into which all Income constituting
Liquidation Proceeds with respect to Liquidated REO Property held by the Legacy REO Subsidiary shall be deposited.

 

“Change in
Control” shall mean:

 

(a)any
transaction or event as a result of which Guarantor ceases to own directly or indirectly 100% of the Capital Stock of POP;

 

(b)any
transaction or event as a result of which POP ceases to own directly 100% of the Capital Stock of either PMH or PMC;

 

(c)any
transaction or event as a result of which PMC and/or POP ceases to own directly 100% of the Capital Stock of any REO Subsidiary;

 

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

 

(e)the
consummation of a merger or consolidation of any Seller with or into another entity or any other corporate reorganization (in one
transaction or in a series of transactions), if 50% or more 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 any Seller immediately prior to such merger, consolidation or other reorganization.

 

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“Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

“Collection
Account” shall mean the deposit account (the title of which shall indicate that the funds therein are being held in trust
for Buyer) established by Sellers at the Bank subject to a Control Agreement, into which all Income (other than Liquidation Proceeds
with respect to REO Property) shall be deposited.

 

“Collection
Period” shall mean the period commencing on the 1st day of the month up to but not including the 1st day of the following
month.

 

“Concentration
Limit” shall have the meaning set forth in the Pricing Side Letter.

 

“Confidential
Information” shall have the meaning set forth in Section 31(b) hereof.

 

“Confidential
Terms” shall have the meaning set forth in Section 31(a) hereof.

 

“Confirmation”
shall mean a confirmation letter in the form of Exhibit A hereto.

 

“Control Agreement”
shall mean a letter agreement among Seller Parties, Buyer, and the Bank in form and substance acceptable to Buyer, as the same
may be amended from time to time.

 

“Costs”
shall have the meaning set forth in Section 16(a) hereof.

 

“Custodial
Agreement” shall mean that certain Custodial Agreement dated as of the date hereof, among Sellers, Buyer and Custodian
as the same may be amended from time to time.

 

“Custodian”
shall mean Deutsche Bank National Trust Company and any successor thereto under the Custodial Agreement.

 

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

 

“Defaulting
Party” shall have the meaning set forth in Section 30 hereof.

 

“Dollars”
and “$” shall mean lawful money of the United States of America.

 

“Due Date”
shall mean 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” shall have the meaning set forth in the Pricing Side Letter.

 

“Due Diligence
Costs” shall have the meaning set forth in Section 19 hereof.

 

“Due Diligence
Documents” shall have the meaning set forth in Section 19 hereof.

 

“Due Diligence
Review” shall mean the performance by Buyer or its designee of any or all of the reviews permitted under Section 19 hereof
with respect to any or all of the Mortgage Loans, as desired by Buyer from time to time.

 

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“Early Payment
Default” shall mean, with respect to a Mortgage Loan, the failure of the Mortgagor to make any of the first three Monthly
Payments due under the Mortgage Loan within thirty (30) days of its scheduled Due Date.

 

“Effective
Date” shall mean the date upon which the conditions precedent set forth in Section 3(a) shall have been satisfied.

 

“Electronic
Tracking Agreement” shall mean an Electronic Tracking Agreement among Buyer, Sellers, MERS and MERSCORP Holdings, Inc.,
to the extent applicable as the same may be amended from time to time.

 

“Eligible
Assets” shall mean, collectively, Eligible Mortgage Loans, Eligible REO Property and Eligible REO Subsidiary Interests.

 

“Eligible
Mortgage Loan” shall mean a Purchased Mortgage Loan which complies with the representations and warranties set forth
on Schedule 1-A to this Agreement.

 

“Eligible
REO Property” shall mean an REO Property that satisfies the applicable representations and warranties set forth on Schedule
1-B with respect thereto.

 

“Eligible
REO Subsidiary Interests” shall mean the Capital Stock in each REO Subsidiary that satisfy the applicable representations
and warranties set forth on Schedule 1-C with respect thereto.

 

“EO13224”
shall have the meaning set forth in Section 12(dd) hereof.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time and any successor thereto, and the
regulations promulgated and rulings issued thereunder.

 

“ERISA Affiliate”
shall mean any Person which, together with any Seller Party 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 a single employer described in Section 414 of the Code.

 

“Escrow Payments”
shall mean, 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” shall have the meaning set forth in Section 14 hereof.

 

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“Event of
ERISA Termination” shall mean (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 reporting of the occurrence of such event, or (ii) the withdrawal of
any Seller Party, 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 any Seller Party, 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 430 (j) of the Code or Section 303(j)
of ERISA, or (iv) the distribution under Section 4041 of ERISA of a notice of intent to terminate any Plan or any action taken
by any Seller Party, Guarantor or any ERISA Affiliate thereof to terminate any Plan, or (v) the failure to meet the 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 any Seller Party, 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 any Seller Party,
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.

 

“Excluded
Taxes” shall have the meaning set forth in Section 7(e) hereof.

 

“Expenses”
shall mean all present and future expenses incurred by or on behalf of Buyer in connection with this Agreement or any of the other
Facility Documents and any amendment, supplement or other modification or waiver related hereto or thereto, whether incurred heretofore
or hereafter, which expenses shall include the cost of title, lien, judgment and other record searches; attorneys’ fees;
and costs of preparing and recording any UCC financing statements or other filings necessary to perfect the security interest created
hereby.

 

“Facility
Documents” shall mean this Agreement, the Pricing Side Letter, the Guaranty, the Custodial Agreement, the Netting Agreement,
the Electronic Tracking Agreement, if applicable, a Servicer Notice, if any, the Power of Attorney, the Control Agreement, the
REO Subsidiary Agreements, the Servicing Agreement and the Underlying Repurchase Documents.

 

“Fannie Mae”
shall mean the Federal National Mortgage Association, or any successor thereto.

 

“FDIA”
shall have the meaning set forth in Section 32(c) hereof.

 

“FDICIA”
shall have the meaning set forth in Section 32(d) hereof.

 

“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 Buyer.

 

“Financial
Statements” shall mean the consolidated and consolidating financial statements of each of PMC and Guarantor prepared
in accordance with GAAP for the year or other period then ended. Such financial statements will be audited, in the case of annual
statements, by a nationally recognized public accounting firm.

 

“Fitch”
shall mean Fitch Ratings, Inc., or any successor thereto.

 

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

 

“GAAP”
shall mean generally accepted accounting principles in the United States of America, applied on a consistent basis and applied
to both classification of items and amounts, and shall include, without limitation, the official interpretations thereof by the
Financial Accounting Standards Board, its predecessors and successors.

 

“GLB Act”
shall have the meaning set forth in Section 31(b) hereof.

 

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

 

“Governmental
Authority” shall mean any nation or government, any state, county, municipality or other political subdivision thereof
or any governmental body, agency, authority, department or commission (including, without limitation, any taxing authority) or
any instrumentality or officer of any of the foregoing (including, without limitation, any court or tribunal) exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation, partnership or
other entity directly or indirectly owned by or controlled by the foregoing.

 

“Guarantee”
shall mean, 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 endorsements for collection
or deposit in the ordinary course of business. 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”
shall mean PennyMac Mortgage Investment Trust, its successors in interest and assigns.

 

“Guaranty”
shall mean that certain Guaranty made by the Guarantor in favor of Buyer, dated as of the date hereof, as amended from time to
time.

 

“High Cost
Mortgage Loan” shall mean a Mortgage Loan classified as (a) a “high cost” loan under the Home Ownership and
Equity Protection Act of 1994; (b) a “high cost,” “high risk,” “high rate,” “threshold,”
“deceptive,” “unfair,” “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) or (c) having a percentage listed under the Indicative Loss Severity Column (the column that appears in the S&P
Anti-Predatory Lending Law Update Table, included in the then-current S&P’s LEVELS® Glossary of Terms on Appendix
E).

 

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“HUD”
shall mean the Department of Housing and Urban Development.

 

“Income”
shall mean, with respect to any Purchased Mortgage Loan or Underlying REO Property at any time, all principal and interest payments
received with respect to the Purchased Mortgage Loans or Underlying REO Property, including any sale or Liquidation Proceeds, insurance
proceeds, all interest, dividends or other distributions payable thereon or any fees or payments of any kind received by the Servicer.
Income shall also include any sale or any Liquidation Proceeds received by Servicer or a REO Subsidiary in connection with a Liquidated
REO Property.

 

“Indebtedness”
shall mean, with respect to any Person: (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; (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; and (i) Indebtedness of general partnerships of which such Person is a general partner.

 

“Indemnified
Party” shall have the meaning set forth in Section 16 hereof.

 

“Insolvency
Event” shall mean, for any Person:

 

(i)that
such Person or any Affiliate shall discontinue or abandon operation of its business; or

 

(ii)that
such Person or any Affiliate shall fail generally to, or admit in writing its inability to, pay its debts as they become due; or

 

(iii)a
proceeding shall have been instituted in a court having jurisdiction in the premises seeking a decree or order for relief in respect
of such Person or any Affiliate in an involuntary case under any applicable bankruptcy, insolvency, liquidation, reorganization
or other similar law now or hereafter in effect, or for the appointment of a receiver, liquidator, assignee, trustee, custodian,
sequestrator, conservator or other similar official of such Person or any Affiliate, or for any substantial part of its property,
or for the winding-up or liquidation of its affairs; or

 

(iv)the
commencement by such Person or any Affiliate of a voluntary case under any applicable bankruptcy, insolvency or other similar Law
now or hereafter in effect, or such Person’s or any Affiliate’s consent to the entry of an order for relief in an involuntary
case under any such Law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator, conservator or other similar official of such Person, or for any substantial part of its property, or any general
assignment for the benefit of creditors; or

 

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(v)that such Person or any Affiliate shall become insolvent; or

 

(vi)if
such Person or any Affiliate is a corporation, such Person or any Affiliate, or any of their Subsidiaries, shall take any corporate
action in furtherance of, or the action of which would result in any of the actions set forth in the preceding clauses (i), (ii),
(iii), (iv) or (v).

 

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

 

“Late Payment
Fee” shall mean the excess of the Price Differential paid as a result of its calculation at the Post-Default Rate over
the Price Differential as would have been calculated at the Pricing Rate.

 

“Lien”
shall mean any lien, claim, charge, restriction, pledge, security interest, mortgage, deed of trust or other encumbrance.

 

“Liquidated
Mortgage Loan” shall mean a Mortgage Loan which has been sold or refinanced, which was paid or otherwise satisfied in
full, or was subject to a short sale or with respect to which the Mortgaged Property has been sold.

 

“Liquidated
REO Property” shall mean an REO Property which has been sold by a REO Subsidiary.

 

“Liquidation
Proceeds” shall mean, for any Mortgage Loan that becomes a Liquidated Mortgage Loan or REO Property that becomes a Liquidated
REO Property, as applicable, the proceeds received on account of the liquidation of such Mortgage Loan or REO Property, as applicable.

 

“Liquidity”
shall mean, as of any date of determination, for any Person, the sum of (i) such Person’s unrestricted and unencumbered cash
and (ii) such Person’s unrestricted and unencumbered Cash Equivalents.

 

“Margin Call”
shall have the meaning set forth in Section 4(b) hereof.

 

“Margin Deficit”
shall have the meaning set forth in Section 4(b) hereof.

 

“Market Value”
shall mean, as of any date with respect to any Purchased Mortgage Loan or Underlying REO Property, the price at which such Purchased
Mortgage Loan or Underlying REO Property could readily be sold as determined by Buyer in its sole
discretion.

 

    	10

    	 

    

“Material
Adverse Effect” shall mean a material adverse effect on (a) the Property, business, operations, financial condition
or prospects of any Seller Party, Guarantor or any Affiliate, (b) the ability of any Seller Party, Guarantor or any Affiliate
to perform its obligations under any of the Facility Documents to which it is a party, (c) the validity or enforceability
of any of the Facility Documents, (d) the rights and remedies of Buyer or any Affiliate under any of the Facility Documents,
(e) the timely payment of any amounts payable under the Facility Documents or the rights and remedies of POP under any of
the Underlying Repurchase Documents, or (f) the Asset Value of the Purchased Mortgage Loans taken as a whole; in each case
as determined by Buyer in its sole and good faith discretion.

 

“Maximum Purchase
Price” shall mean $500,000,000.

 

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

 

“MERS Mortgage
Loan” shall mean any Purchased Mortgage Loan registered with MERS on the MERS System.

 

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

 

“MIN”
shall mean the mortgage identification number for any MERS Mortgage Loan.

 

“MOM Loan”
shall mean any Purchased Mortgage Loan as to which MERS is acting as mortgagee, solely as nominee for the originator of such Mortgage
Loan and its successors and assigns.

 

“Monthly Payment”
shall mean the scheduled monthly payment of principal and interest on a Mortgage Loan.

 

“Moody’s”
shall mean Moody’s Investor’s Service, Inc. or any successors thereto.

 

“More Favorable
Agreement” shall have the meaning set forth in Section 13(y).

 

“Mortgage”
shall mean each mortgage, assignment of rents, security agreement and fixture filing, or deed of trust, assignment of rents, security
agreement and fixture filing, deed to secure debt, assignment of rents, security agreement and fixture filing, or similar instrument
creating and evidencing a first lien on real property and other property and rights incidental thereto.

 

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

 

“Mortgage
Loan” shall mean any first lien, one-to-four-family residential mortgage loan evidenced by and including a Mortgage Note
and a Mortgage, which Mortgage Loan is subject to a Transaction hereunder.

 

    	11

    	 

    

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

 

“Mortgaged
Property” shall mean the real property securing repayment of the debt evidenced by a Mortgage Note.

 

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

 

“Multiemployer
Plan” shall mean, with respect to any Person, a “multiemployer plan” as defined in Section 3(37) of
ERISA which is or was at any time during the current year or the immediately preceding five years contributed to (or required to
be contributed to) by such Person or any ERISA Affiliate thereof on behalf of its employees and which is covered by Title IV of
ERISA.

 

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

 

“Netting Agreement”
shall mean the netting agreement between Buyer and its Affiliates and Sellers and their Affiliates with respect to netting this
Agreement and one or more agreements, as the same may be amended from time to time.

 

“Nondefaulting
Party” shall have the meaning set forth in Section 30(b) hereof.

 

“Non-Excluded
Taxes” shall have the meaning set forth in Section 7(a) hereof.

 

“Non-Exempt
Buyer” shall have the meaning set forth in Section 7(e) hereof.

 

“Non-Performing
Mortgage Loan” shall mean any Mortgage Loan that fails to satisfy the definition of Performing Mortgage Loan or Re-Performing
Mortgage Loan.

 

“Non-Recourse
Debt” shall mean Indebtedness under a credit or repurchase facility payable solely from the assets sold or pledged to
secure such facility and under which facility no purchaser or creditor has recourse to any Seller, Guarantor or any of their Affiliates
if such assets are inadequate or unavailable to pay off such credit or repurchase facility, and no Seller, Guarantor nor any of
their Affiliates effectively has any obligation to directly or indirectly pay any such deficiency.

 

“Obligations”
shall mean (a) any amounts owed by Sellers to Buyer in connection with a Transaction hereunder, together with interest thereon
(including interest which would be payable as post-petition interest in connection with any bankruptcy or similar proceeding) and
all other fees or expenses which are payable hereunder or under any of the Facility Documents; (b) all other obligations or amounts
owed to Buyer under the Guaranty and (c) all other obligations or amounts owed by any Seller to Buyer or an Affiliate of Buyer
under any other contract or agreement, in each case, whether such amounts or obligations owed are direct or indirect, absolute
or contingent, matured or unmatured.

 

“OFAC”
shall have the meaning set forth in Section 12(dd) hereof.

 

    	12

    	 

    

“Optional
Repurchase Date” shall have the meaning set forth in Section 3(f) hereof.

 

“Other Taxes”
shall have the meaning set forth in Section 7(b) hereof.

 

“Payment Date”
shall mean the 22nd day of each month, or if such date is not a Business Day, the next succeeding Business Day.

 

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

 

“Pension
Protection Act” shall mean the Pension Protection Act of 2006.

 

“Performing
Mortgage Loan” shall mean any Mortgage Loan (i) for which any payment of principal or interest is less than fifty-nine
(59) days past due and (ii) which is not under a bankruptcy payment plan.

 

“Periodic
Advance Repurchase Payment” shall have the meaning set forth in Section 5(a).

 

“Person”
shall mean any individual, corporation, company, voluntary association, partnership, joint venture, limited liability company,
trust, unincorporated association or government (or any agency, instrumentality or political subdivision thereof) including,
but not limited to, any Seller.

 

“Plan”
shall mean, with respect to any Seller Party or Guarantor, any employee benefit or similar plan that is or was at any time during
the current year or immediately preceding five years established, maintained or contributed to by any Seller Party, Guarantor or
any ERISA Affiliate thereof and that is covered by Title IV of ERISA, other than a Multiemployer Plan.

 

“Post-Default
Rate” shall have the meaning set forth in the Pricing Side Letter.

 

“Power of
Attorney” shall mean a power of attorney substantially in the form of Exhibit M of the Agreement.

 

“Price Differential”
shall mean, with respect to any Transaction hereunder as of any date, the aggregate amount obtained by daily application of the
Pricing Rate (or, during the continuation of an Event of Default, by daily application of the Post-Default Rate) for such Transaction
to the Purchase Price for such Transaction 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 Transaction and ending on (but excluding) the Repurchase Date (reduced by any amount
of such Price Differential previously paid by Sellers to Buyer with respect to such Transaction).

 

“Pricing Rate”
shall have the meaning set forth in the Pricing Side Letter.

 

“Pricing Side
Letter” shall mean that certain letter agreement among Buyer, Seller Parties and Guarantor, dated as of the date hereof,
as the same may be amended from time to time.

 

“Pricing Spread”
shall have the meaning set forth in the Pricing Side Letter.

 

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“Prohibited
Person” shall have the meaning set forth in Section 12(dd) hereof.

 

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

 

“Purchase
Date” shall mean the date on which Purchased Mortgage Loans are transferred by any Seller to Buyer or its designee or
a Purchase Price Increase Date, as applicable.

 

“Purchase
Price” shall have the meaning set forth in the Pricing Side Letter.

 

“Purchase
Price Increase” shall mean an increase in the Purchase Price for the REO Subsidiary Interests based upon New REO Subsidiary
acquiring additional REO Properties to which such portion of the Purchase Price is allocated, as requested by Seller pursuant to
Section 3(c) hereof. Notwithstanding that REO Subsidiary Interests are pledged, and not sold, to Buyer hereunder, the acquisition
or contribution of REO Properties by or to New REO Subsidiary and corresponding increase in value of the REO Subsidiary Interests
shall be used to determine a Purchase Price Increase with respect to such REO Subsidiary Interests pursuant to the definition of
Purchase Price, as further set forth in Section 3(d) hereof, and such Purchase Price Increase shall be added to the Purchase
Price with respect to Purchased Mortgage Loans and Underlying REO Properties for purposes of determining the outstanding Purchase
Price hereunder.

 

“Purchase
Price Increase Date” shall mean, with respect to REO Subsidiary Interests, the date on which (i) an REO Property is transferred
or contributed to New REO Subsidiary, and (ii) a Purchase Price Increase is made with respect thereto.

 

“Purchase
Price Percentage” shall have the meaning set forth in the Pricing Side Letter.

 

“Purchased
Mortgage Loans” shall mean the Mortgage Loans sold by a Seller to Buyer in a Transaction (including, for the avoidance
of doubt, any Underlying Repurchase Transaction), as evidenced by a Confirmation and/or a Trust Receipt.

 

“Records”
shall mean all instruments, agreements and other books, records, and reports and data generated by other media for the storage
of information maintained by any Seller or any other Person or entity with respect to a Purchased Mortgage Loan or Underlying REO
Property. Records shall include the Mortgage Notes, any Mortgages, the Asset Files, the credit files related to the Purchased Mortgage
Loan or Underlying REO Property and any other instruments necessary to document, manage or service a Mortgage Loan or Underlying
REO Property, as applicable.

 

“Register”
shall have the meaning set forth in Section 21 hereof.

 

“Regulations
T, U and X” shall mean Regulations T, U and X of the Board of Governors of the Federal Reserve System (or any successor),
as the same may be modified and supplemented and in effect from time to time.

 

“REIT”
shall mean a real estate investment trust, as defined in Section 856 of the Code.

 

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“Release Price”
shall mean with respect to each Purchased Mortgage Loan or Underlying REO Property, the sum of (a) the outstanding Purchase Price
for such Purchased Mortgage Loan or Underlying REO Property, as applicable, and (b) accrued unpaid Price Differential related to
such Purchased Mortgage Loan or Underlying REO Property, as applicable, in each case, as of the date of such determination.

 

“REO Conversion
Date” shall mean, with respect to any Mortgage Loan that has been foreclosed upon, either (x) with respect to Mortgage
Loans as to which the related Mortgaged Property is located in jurisdictions in which a post-foreclosure sale administrative process
of redemption, ratification, confirmation or other similar process is required by law to be undertaken by the applicable authorities
prior to the issuance of the related deed, the date on which such process is concluded and the related deed has been prepared and
sent for recording, or (y) in all other cases, the date on which the foreclosure sale is completed.

 

“REO Deed”
shall mean, with respect to each REO Property, the instrument or document required by the law of the jurisdiction in which the
REO Property is located to convey fee title to the applicable REO Subsidiary and identified as recorded or delivered for recordation
on the related Asset Schedule.

 

“REO Property”
shall mean a Mortgaged Property acquired through foreclosure or by deed in lieu of foreclosure.

 

“REO Subsidiary”
shall mean, individually and collectively, PMC REO Trust 2015-1 and TRS REO Trust 1-A.

 

“REO Subsidiary
Agreement” shall mean (i) that certain Amended and Restated Trust Agreement of New REO Subsidiary, by and among Servicer,
Wilmington Trust, National Association and PMC and (ii) that certain Second Amended and Restated Trust Agreement of Legacy REO
Subsidiary, by and between Wilmington Trust, National Association and PMC, as each may be amended, restated supplemented or modified
from time to time.

 

“REO Subsidiary
Interests” shall mean all of the certificates issued by each REO Subsidiary pursuant to the applicable REO Subsidiary
Agreement, which represents 100% of the Capital Stock in REO Subsidiaries.

 

“Re-Performing
Mortgage Loan” shall mean any Mortgage Loan for which two (2) or more consecutive payments of principal or interest
have been made, regardless of whether all other payments due with respect to such Re-Performing Mortgage Loan have been brought
current.

 

“Reportable
Event” shall mean any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the
thirty day notice period is waived under subsections .21, .22, .24, .26, .27 or .28 of PBGC Reg. § 4043.

 

“Reporting
Date” shall mean the Business Day preceding each Payment Date.

 

“Repurchase
Assets” shall have the meaning provided in Section 8 hereof.

 

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“Repurchase
Date” shall mean the date, including any Optional Repurchase Date, on which any Seller is to repurchase the Purchased
Mortgage Loans or cause the release of Underlying REO Property subject to a Transaction from Buyer as specified in the related
Confirmation, or if not so specified on a date requested pursuant to Section 3(f) or on the Termination Date, including any
date determined by application of the provisions of Sections 3 or 14, or the date identified to Buyer by any Seller as the
date that the related Purchased Mortgage Loan or Underlying REO Property is to be sold.

 

“Repurchase
Price” shall mean an amount equal to the Release Price for the Purchased Mortgage Loans or Underlying REO Property subject
to a Transaction hereunder.

 

“Requirement
of Law” shall mean as to any Person, the certificate of incorporation and by-laws or other organizational or governing
documents of such Person, and 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.

 

“Responsible
Officer” shall mean, as to any Person, the chief executive officer or, with respect to financial matters, the chief financial
officer of such Person.

 

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

 

“SEC”
shall mean the Securities and Exchange Commission.

 

“Section 4402”
shall have the meaning set forth in Section 30 hereof.

 

“Section 7
Certificate” shall have the meaning set forth in Section 7(e)(ii) hereof.

 

“Seller”
shall mean, individually and collectively, PennyMac Corp., PennyMac Operating Partnership, L.P., and PennyMac Holdings, LLC, and/or
any successors in interest thereto.

 

“Seller Party”
shall mean, collectively, Sellers and REO Subsidiaries.

 

“Servicer”
shall mean PennyMac Loan Services, LLC, or any other servicer approved by Buyer in its sole discretion.

 

“Servicer
Notice” shall mean the notice and pledge acknowledged by Servicer substantially in the form of Exhibit L hereto.

 

“Servicing
Agreement” shall mean (i) the Second Amended and Restated Flow Servicing Agreement, dated as of March 1, 2013, between
Servicer and POP, and (ii) any servicing agreement entered into among a Seller, Buyer and a Servicer, as each may be amended from
time to time of which Buyer shall be an intended third party beneficiary.

 

“Servicing
Rights” shall mean rights of any Person to administer, service or subservice, the Purchased Mortgage Loans or Underlying
REO Property or to possess related Records.

 

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“Servicing
Termination Event” shall mean (i) a material breach of the Servicing Agreement by Servicer or (ii) the initiation of
any investigation or non-routine audit of Servicer by any Governmental Authority, any trade association or consumer advocacy group
relating to the acquisition, sale or servicing of Mortgage Loans by Servicer or the business operations of Servicer.

 

“Single-Employer
Plan” shall mean a single-employer plan as defined in Section 4001(a)(15) of ERISA which is subject to the provisions
of Title IV of ERISA.

 

“SIPA”
shall have the meaning set forth in Section 33(a) hereof.

 

“Subsidiary”
shall mean, 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.

 

“Subsidiary
Owned Assets” shall mean all property including Underlying REO Property and shall include any Subsidiary Repurchase Asset
related to the foregoing subject to a Transaction, owned by the REO Subsidiaries, including those listed on the related Asset Schedule
attached to the related Confirmation for a Transaction Request.

 

“Subsidiary
Repurchase Assets” shall have the meaning set forth in Section 8(a) hereof.

 

“Tangible
Net Worth” shall mean, for any Person as of a particular date,

 

(a)all amounts
which would be included under shareholder’s equity on a balance sheet of such Person at such date, determined in accordance
with GAAP, less

 

(b)(i) amounts
owing to such Person from Affiliates, or from officers, employees, shareholders or other Persons similarly affiliated with such
Person, and (ii) intangible assets, which, for the avoidance of doubt, shall not include mortgage servicing rights.

 

“Taxes”
shall have the meaning set forth in Section 7(a) hereof.

 

“Termination
Date” shall have the meaning set forth in the Pricing Side Letter.

 

“Total Liabilities”
shall mean all liabilities of a Seller and its Subsidiaries including all contingent liabilities and obligations (including recourse
servicing, recourse sale and other recourse obligations, and guarantee, indemnity and mortgage loan repurchase obligations), less
Non-Recourse Debt and any debt classified as intercompany debt that is eliminated on the accompanying consolidating financial statements
of Guarantor and its Subsidiaries.

 

    	17

    	 

    

“Transaction”
shall have the meaning set forth in Section 1, and shall, for the avoidance of doubt, include any Underlying Repurchase Transaction.

 

“Transaction
Request” shall mean a request from any or all Sellers to Buyer to enter into a Transaction.

 

“Trust Receipt”
shall have the meaning set forth in the Custodial Agreement.

 

“Underlying
REO Property” shall mean the REO Property owned by the REO Subsidiaries, as to which (i) a REO Subsidiary, Servicer or
a nominee on behalf of such REO Subsidiary, has acquired bare legal title thereto, and (ii) 100% of the beneficial interests therein
are represented by the REO Subsidiary Interests owned by PMC and/or POP, which shall include Unrecorded REO Property.

 

“Underlying
Repurchase Agreement” shall mean the master repurchase agreement, dated as of the date hereof, between PMC, as seller,
and POP, as buyer.

 

“Underlying
Repurchase Asset” shall mean, in connection with an Underlying Repurchase Transaction, the Mortgage Loans and the REO
Subsidiary Interests sold by PMC to POP thereunder.

 

“Underlying
Repurchase Documents” shall mean 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” shall mean a transaction between POP and PMC whereby PMC sells one or more Mortgage Loans and
the REO Subsidiary Interests to POP against the transfer of funds by POP, with the simultaneous agreement by POP to transfer to
PMC such Mortgage Loans and REO Subsidiary Interests at a date certain against the transfer of funds by PMC, which Mortgage Loans
are concurrently or consecutively purchased by Buyer hereunder.

 

“Uniform Commercial
Code” or “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State
of New York; provided that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection
of the security interest in any Repurchase Assets or the continuation, renewal or enforcement thereof is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than New York, “Uniform Commercial Code” shall mean the Uniform
Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect
of perfection or non-perfection.

 

“Unrecorded
REO Property” shall mean Underlying REO Property for which the Custodian has not received a copy of the REO Deed recorded
or submitted for recording into the name of the applicable REO Subsidiary and otherwise meets the criteria set forth in this Agreement.

 

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Section 3.Initiation;
Termination. a) Conditions Precedent to Initial Transaction. Buyer’s agreement to enter into the initial
Transaction hereunder is subject to the satisfaction, immediately prior to or concurrently with the making of such Transaction,
of the condition precedent that Buyer shall have received from Sellers any fees and expenses payable hereunder, and all of the
following documents, each of which shall be satisfactory to Buyer and its counsel in form and substance:

 

(i)Facility
Documents. The Facility Documents, duly executed by the parties thereto;

 

(ii)Opinions
of Counsel. (A) A security interest, general corporate and enforceability opinion or opinions of counsel to Seller Parties
and Guarantor, including an Investment Company Act opinion indicating that (1) it is not necessary to register the New REO Subsidiary
under the Investment Company Act of 1940, as amended (the “Investment Company Act”), as it is not within the
definition of investment company in Section 3(a)(1) of the Investment Company Act, (2) it is not necessary to register the Legacy
REO Subsidiary under the Investment Company Act due to the exemption provided under Section 3(c)(5)(C) of the Investment Company
Act, and (3) it is not necessary to register any Seller under the Investment Company Act; (B) a Bankruptcy Code opinion of outside
counsel to Seller Parties and Guarantor with respect to the matters outlined in Section 32; and (C) an opinion of outside counsel
to Sellers and Guarantor covering comparable matters with respect to the Underlying Repurchase Documents;

 

(iii)Seller
Party and Guarantor Organizational Documents. A certificate of corporate existence of each Seller Party and Guarantor delivered
to Buyer prior to the Effective Date and certified copies of the charter and by-laws (or equivalent documents) of each Seller Party
and Guarantor and of all corporate or other authority for such Seller Party and Guarantor with respect to the execution, delivery
and performance of the Facility Documents and each other document to be delivered by each Seller Party and Guarantor from time
to time in connection herewith;

 

(iv)Good
Standing Certificate. A certified copy of a good standing certificate from the jurisdiction of organization of each Seller
Party and Guarantor, dated as of no earlier than the date ten (10) Business Days prior to the Purchase Date with respect to the
initial Transaction hereunder;

 

(v)Incumbency
Certificate. An incumbency certificate of the corporate secretary of each Seller Party and Guarantor, certifying the names,
true signatures and titles of the representatives duly authorized to request transactions hereunder and to execute the Facility
Documents;

 

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

 

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(vii)Reserved;

 

(viii)Fees
and Expenses. Buyer shall have received all fees and expenses of counsel to Buyer as contemplated by Sections 11 and 16(b);

 

(ix)Insurance.
Evidence that Sellers have added Buyer as an additional loss payee under their Fidelity Insurance; and

 

(x)Other
Documents. Such other documents as Buyer may reasonably request, in form and substance reasonably acceptable to Buyer.

 

(b)Conditions
Precedent to all Transactions. Upon satisfaction of the conditions set forth in this Section 3(b), Buyer may enter into
a Transaction with any or all Sellers. Buyer’s entering into each Transaction (including the initial Transaction) is subject
to the satisfaction of the following further conditions precedent, both immediately prior to entering into such Transaction and
also after giving effect thereto to the intended use thereof:

 

(i)Confirmation.
Buyer shall have executed and delivered a Confirmation in accordance with the procedures set forth in Section 3(c);

 

(ii)Due
Diligence Review. Without limiting the generality of Section 19 hereof, Buyer shall have completed, to its satisfaction, its
due diligence review of the related Mortgage Loans, REO Properties and Seller Parties, Guarantor and the Servicer;

 

(iii)No
Default. No Default or Event of Default shall have occurred and be continuing under the Facility Documents;

 

(iv)Delivery
of Certificates. The original certificates evidencing the REO Subsidiary Interests of each REO Subsidiary, registered in the
name of the Buyer, have been delivered to the Buyer solely for the purpose of perfecting the security interest granted in such
REO Subsidiary Interests hereunder by means of “control” pursuant to Section 8-106(b)(2) of the Uniform Commercial
Code (and not to transfer legal or beneficial ownership interests in such REO Subsidiary Interests) and for otherwise exercising
its rights permitted under this Agreement;

 

(v)Representations
and Warranties. Both immediately prior to the Transaction and also after giving effect thereto and to the intended use thereof,
the representations and warranties made by each Seller in Section 12 hereof, 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);

 

(vi)Maximum
Purchase Price. After giving effect to the requested Transaction, the aggregate outstanding Purchase Price for all Assets subject
to then outstanding Transactions under this Agreement shall not exceed the Maximum Purchase Price;

 

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(vii)No
Margin Deficit. After giving effect to the requested Transaction, the Asset Value of all Purchased Mortgage Loans and Underlying
REO Properties equals or exceeds the aggregate Purchase Prices and Purchase Price Increases, respectively, of such Transactions;

 

(viii)Transaction
Request. On or prior to 11:00 a.m. (New York City time) five (5) Business Days prior to the related Purchase Date, the
applicable Seller shall have delivered to Buyer (a) a Transaction Request, and (b) an Asset Schedule.

 

(ix)Delivery
of Asset File. The applicable Seller shall have delivered to the Custodian the Asset File with respect to each Asset and the
Custodian shall have issued a Trust Receipt with respect to each such Asset to Buyer all in accordance with the Custodial Agreement;

 

(x)Compliance
with Applicable Law. Buyer shall not have determined that any Requirement of Law or the interpretation or administration of
any Requirement of Law applicable to Buyer has made it unlawful for any of Sellers or Buyer to enter into the Transaction;

 

(xi)BPO.
With respect to each Mortgage Loan or Underlying REO Property that is subject to a proposed Transaction, Sellers shall have delivered
to Buyer the BPO value and related valuation date for such Mortgage Loan or Underlying REO Property, and, on the request of Buyer,
a true and complete copy of Sellers’ copy of the related BPO;

 

(xii)No
Material Adverse Change. None of the following shall have occurred and/or be continuing:

 

(A)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 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

 

(B)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

 

(C)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; or

 

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(D)there
shall have occurred (i) a material change in financial markets, an outbreak or escalation of hostilities or a material change
in national or international political, financial or economic conditions; (ii) a general suspension of trading on major stock
exchanges or suspension of trading in Guarantor’s stock; or (iii) a disruption in or moratorium on commercial banking
activities or securities settlement services.

 

(xiii)Approval
of Servicing Agreement. To the extent not previously delivered and approved, Buyer shall have, in its sole discretion, approved
each Servicing Agreement pursuant to which any Purchased Mortgage Loan or Underlying REO Property that is subject to the proposed
Transaction is serviced; 

 

(xiv)Underlying
Repurchase Transaction. If such Transaction is an Underlying Repurchase Transaction, (x) Buyer shall have received and approved
the Underlying Repurchase Documents in its sole discretion and following such approval received duly executed copies thereof by
the parties thereto and (y) PMC shall have satisfied all conditions precedent to the entry into such Underlying Repurchase Transaction
under the Underlying Repurchase Agreement; and

 

(xv)Servicer
Notice. To the extent not previously delivered, Sellers shall have provided to Buyer a Servicer Notice in the form of Exhibit
L hereto addressed to, agreed to and executed by Servicer, Seller Parties and Buyer.

 

(xvi)Certification.
Each Transaction Request delivered by any or all Sellers hereunder shall constitute a certification by such Seller that all the
conditions set forth in this Section 3(b) have been satisfied (both as of the date of such notice or request and as of Purchase
Date).

 

(c)Initiation.

 

(i)On the
initial Purchase Date, PMC and POP will pledge their rights in and to the REO Subsidiary Interests to Buyer. The applicable Seller
shall deliver a Transaction Request to Buyer on or prior to the date and time set forth in Section 3(b)(viii) prior to entering
into any Transaction. Such Transaction Request shall include an Asset Schedule with respect to the Eligible Assets to be made subject
to such requested Transaction. Buyer shall confirm the terms of each Transaction by issuing a written confirmation to the Sellers
promptly after the parties enter into such Transaction in the form of Exhibit A attached hereto (a “Confirmation”).
Such Confirmation shall set forth (A) the Purchase Date, (B) the Purchase Price or Purchase Price Increase, (C) the
Repurchase Date, if applicable, (D) the Pricing Rate applicable to the Transaction, (E) the applicable Purchase Price
Percentages, and (F) additional terms or conditions not inconsistent with this Repurchase Agreement. The Sellers shall execute
and return the Confirmation to Buyer via facsimile or electronic mail on or prior to 5:00 p.m. (New York City time) on the date
one (1) Business Day prior to the related Purchase Date, with the executed and acknowledged original Confirmation to follow via
overnight delivery (and in any event to arrive no later than 48 hours after the related Purchase Date).

 

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(ii)The
Repurchase Date for each Transaction (including Purchase Price Increases related to addition of REO Property to New REO Subsidiary,
from time to time) shall not be later than the Termination Date.

 

(iii)Each
Confirmation, together with this Repurchase Agreement, shall be conclusive evidence of the terms of the Transaction(s) covered
thereby unless objected to in writing by the Sellers no more than two (2) Business Days after the date the Confirmation was
received by Sellers or unless a corrected Confirmation is sent by Buyer. An objection sent by the Sellers must state specifically
the portion which is objected to, must specify the provision(s) being objected to by Sellers, must set forth such provision(s)
in the manner that Sellers believe they should be stated, and must be received by Buyer no more than two (2) Business Days
after the Confirmation was received by Sellers.

 

(iv)Subject
to the terms and conditions of this Agreement, any or all Sellers may sell, repurchase and resell Eligible Mortgage Loans and Eligible
REO Properties hereunder.

 

(v)No later
than the date and time set forth in the Custodial Agreement, the applicable Seller shall deliver to the Custodian the Asset File
pertaining to each Eligible Asset made subject to a Transaction.

 

(vi)Upon
Buyer’s receipt of the Trust Receipt in accordance with the Custodial Agreement and subject to the provisions of this Section 3,
the Purchase Price or Purchase Price Increase, as applicable, will then be made available to the Sellers by Buyer transferring,
via wire transfer, in the aggregate amount of such Purchase Price or Purchase Price Increase, as applicable, in funds immediately
available.

 

(d)Conveyance
and Acquisition of REO Property.

 

(i)At any
time that a Seller conveys a Purchased Mortgage Loan that has become an REO Property to New REO Subsidiary, (i) the legal and beneficial
title in such REO Property (A) shall be immediately vested in New REO Subsidiary (subject to exceptions permitted for Unrecorded
REO Property) and (B) that is Unrecorded REO Property shall be retained by the Servicer, a Seller, or any prior owner or prior
servicer for whom the Servicer is contractually permitted to act in trust, for the benefit of the New 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 Servicer, or
any prior owner or prior servicer for whom the Servicer is contractually permitted to act, Seller shall deliver or cause to be
delivered to the applicable county recorder’s office (with a copy to Custodian) an REO Deed in the name of New REO Subsidiary
within the period of time generally necessary in the applicable jurisdiction for the Servicer to (i) receive the REO Deed into
the name of such party, (ii) review such REO Deed and perform all necessary title work with respect to the related property and
(iii) prepare the new REO Deed to the New REO Subsidiary, and (ii) such increased value in the REO Subsidiary Interests shall be
deemed to be part of the same Transaction as the related Purchased Mortgage Loan without the need to effect a repurchase of the
related Purchased Mortgage Loan (unless such Purchased Mortgage Loan is no longer an Eligible Mortgage Loan) or a new Transaction
with respect to the increased value of the REO Subsidiary Interests.

 

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(ii)If
PMC shall cause New REO Subsidiary to acquire, or contemplate the acquisition by New REO Subsidiary of, any Underlying REO Property,
or desire to extinguish any Mortgage Note in connection with the foreclosure of the related Purchased Mortgage Loan, a transfer
of the real property underlying the Mortgage Note in lieu of foreclosure or other transfer of such real property, PMC shall cause
such real property to be taken by REO 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 REO 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 Underlying REO Property is located, in the
name of New REO Subsidiary and in accordance with the terms of the applicable REO Subsidiary Agreement.

 

(iii)Upon
the occurrence of an REO Conversion Date for any Purchased Mortgage Loan or if New REO Subsidiary acquires or contemplates the
acquisition of, any Underlying REO Property or desires to extinguish any Mortgage Note in connection with the foreclosure of the
related Purchased Mortgage Loan, PMC shall ensure that:

 

(A)New REO
Subsidiary delivers a correct and complete Asset File (including a true, correct and complete copy of the original REO Deed (including
the related intervening deeds) reflecting New REO Subsidiary as the owner of the Underlying REO Property in fee simple) to Buyer
or its designee on or prior to the related REO Conversion Date; and

 

(B)each title
commitment, “date-down” or trustee’s sale guarantee delivered to Buyer or its designee as part of the Asset File
is a true, correct and complete copy of the original document.

 

(iv)All
costs and expenses in connection with the preparation, execution, delivery and filing or recording of any REO Deed, and any filing,
transfer or recording tax or other charges with respect thereto shall be borne by New REO Subsidiary. Upon the acquisition of title
to an Underlying REO Property by New REO Subsidiary, PMC will be deemed to make the representations and warranties hereto with
respect to such Underlying REO Property as set forth in Schedule 1-B attached hereto. 

 

(e)Underlying
Repurchase Transactions.

 

(i)With
respect to any Purchased Mortgage Loan that is sold by PMH to Buyer in a Transaction, in the event that such Purchased Mortgage
Loan is subsequently sold by PMH to PMC, PMC may sell such Purchased Mortgage Loan under the Underlying Repurchase Agreement as
an Underlying Repurchase Asset, provided that PMH provides notice thereof to Buyer and such Underlying Repurchase Asset is and
continues to be an Eligible Mortgage Loan, from and after the related Purchase Date, PMH shall be deemed to have repurchased such
Purchased Mortgage Loan hereunder, PMC shall be deemed to have sold such Underlying Repurchase Asset to POP under the Underlying
Repurchase Agreement, Buyer shall be deemed to have purchased such Underlying Repurchase Asset as a Purchased Mortgage Loan from
POP hereunder and the Transaction governing such Purchased Mortgage Loan shall thereafter be between POP and Buyer. For the avoidance
of doubt, any Eligible Mortgage Loan sold by PMH to Buyer in a Transaction that is subsequently sold by PMH to PMC, and thereafter
becomes subject to a Underlying Repurchase Transaction under the Underlying Repurchase Agreement 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 Eligible Mortgage Loan was subject.

 

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(ii)With
respect to any Purchased Mortgage Loan that is sold by PMC, PMC shall first sell such Purchased Mortgage Loan under the Underlying
Repurchase Agreement as an Underlying Repurchase Asset, provided that PMC provides notice thereof to Buyer and such Underlying
Repurchase Asset is and continues to be an Eligible Mortgage Loan, from and after the related Purchase Date, PMC shall be deemed
to have sold such Underlying Repurchase Asset to POP under the Underlying Repurchase Agreement, Buyer shall be deemed to have purchased
such Underlying Repurchase Asset as a Purchased Mortgage Loan from POP hereunder and the Transaction governing such Purchased Mortgage
Loan shall thereafter be between POP and Buyer.

 

(iii)With
respect to the REO Subsidiary Interests that are pledged by PMC and POP, PMC shall first sell such REO Subsidiary Interests under
the Underlying Repurchase Agreement as an Underlying Repurchase Asset, provided that PMC provides notice thereof to Buyer and such
Underlying Repurchase Asset is and continues to be an Eligible REO Subsidiary Interest, from and after the related Purchase Date,
PMC shall be deemed to have sold such Underlying Repurchase Asset to POP under the Underlying Repurchase Agreement, POP shall be
deemed to have pledged such Underlying Repurchase Asset to Buyer hereunder and the Transaction governing such REO Subsidiary Interests
shall thereafter be between POP and Buyer.

 

(iv)On
each Purchase Date with respect to any Underlying Repurchase Asset, POP will be deemed to make the representations and warranties
hereto with respect to such Underlying Repurchase Asset as set forth in Schedule 1-D attached hereto.

 

(v)Each
Seller hereby agrees and acknowledges that such 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.

 

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(f)Repurchase.

 

(i)Optional
Repurchase. The Sellers may repurchase Purchased Mortgage Loans or cause the sale of an Underlying REO Property and a corresponding
decrease in the Purchase Price of the REO Subsidiary Interests without penalty or premium on any date. The Repurchase Price payable
for the repurchase of any such Purchased Mortgage Loan or Underlying REO Property shall be reduced as provided in Section 5(c).
If a Seller intends to make such a repurchase, such Seller shall give one (1) Business Day’s prior written notice in
the form of Exhibit N attached hereto to Buyer, designating the Purchased Mortgage Loans to be repurchased or Underlying
REO Property to be transferred. If such notice is given, the amount specified in such notice shall be due and payable on the date
specified therein (each, an “Optional Repurchase Date”), and, on receipt, such amount shall be applied to the
Repurchase Price for the designated Purchased Mortgage Loans or, with respect to the Underlying REO Properties, the REO Subsidiary
Interests. The Sellers shall pay such amount and cause their designee to take physical possession of the Purchased Mortgage Loans
or the Underlying REO Properties (including the Custodian) at Sellers’ expense on the related Optional Repurchase Date. Immediately
following receipt of such payment by Buyer, the related Purchased Mortgage Loan or Underlying REO Property, as applicable, shall
cease to be subject to this Agreement and the other Facility Documents, and Buyer shall be deemed to have released all of its interests
in such Purchased Mortgage Loan or Underlying REO Property, as applicable, without further action by any Person and shall direct
Custodian to release the related Asset File to the Sellers or its designee pursuant to the Custodial Agreement.

 

(ii)Mandatory
Repurchase. On the Repurchase Date, termination of the Transaction will be effected by reassignment to the Sellers or their
designee of the Purchased Mortgage Loans or Underlying REO Property, as applicable, (and any Income in respect thereof received
by Buyer not previously credited or transferred to, or applied to the obligations of, the Sellers pursuant to Section 5) against
the simultaneous transfer of the Repurchase Price to an account of Buyer. Such obligation to repurchase exists without regard to
any prior or intervening liquidation or foreclosure with respect to any Purchased Mortgage Loan or Underlying REO Property, as
applicable (but liquidation or foreclosure proceeds received by Buyer shall be applied to reduce the Repurchase Price for such
Purchased Mortgage Loan or Underlying REO Property, as applicable, on each Payment Date except as otherwise provided herein). The
Sellers are obligated to obtain the Asset Files from Buyer or its designee at Sellers’ expense on the Repurchase Date.

 

Section 4.Margin
Amount Maintenance. (a) Buyer shall determine the Asset Value of the Purchased Mortgage Loans and Underlying REO Property at
such intervals as determined by Buyer in its sole discretion.

 

(b) If at any
time the aggregate Asset Value of all related Purchased Mortgage Loans and Underlying REO Properties subject to all Transactions
is less than the aggregate Purchase Price for all such Transactions (a “Margin Deficit”), then Buyer may by
notice to Sellers (as such notice is more particularly set forth below, a “Margin Call”), require Sellers to
transfer to Buyer or its designee cash so that the aggregate Asset Value of the Purchased Mortgage Loans and Underlying REO Properties,
including any such cash, will thereupon equal or exceed the aggregate Purchase Price for all Transactions. Any amount paid by Sellers
to cure a Margin Deficit pursuant to this Section 4(b) shall be no less than $100,000. If Buyer delivers a Margin Call
to Sellers on or prior to 12:00 noon (New York City time) on any Business Day, then Sellers shall transfer cash to Buyer no later
than 5:00 p.m. (New York City time) that day. In the event Buyer delivers a Margin Call to Sellers after 12:00 noon (New York City
time) on any Business Day, Sellers shall be required to transfer cash no later than 5:00 p.m. (New York City time) on the subsequent
Business Day.

 

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(c)Buyer’s
election, in its sole and absolute discretion, not to make a Margin Call at any time there is a Margin Deficit shall not in any
way limit or impair its right to make a Margin Call at any time a Margin Deficit exists.

 

(d)Any cash transferred
to Buyer pursuant to Section 4(b) above shall be credited to the Repurchase Price of the related Transactions.

 

Section 5.Income
Payments. (a) Notwithstanding that Buyer and Sellers intend that the Transactions hereunder be sales to Buyer of the Purchased
Mortgage Loans and Repurchase Assets for all purposes except accounting and tax purposes, Sellers shall pay to Buyer the accreted
value of the Price Differential (less any amount of such Price Differential previously paid by Sellers to Buyer) plus the amount
of any unpaid Margin Deficit (each such payment, a “Periodic Advance Repurchase Payment”) on each Payment Date.
Notwithstanding the preceding sentence, if Sellers fail to make all or part of the Periodic Advance Repurchase Payment by 3:00
p.m. (New York City time) on any Payment Date, the Pricing Rate shall be equal to the Post-Default Rate until the Periodic Advance
Repurchase Payment is received in full by Buyer.

 

(b)Sellers shall,
and shall cause Servicer to, hold for the benefit of, and in trust for, Buyer all income, including, without limitation, all Income
received by or on behalf of any Seller Party with respect to the Eligible Assets. Such Seller Party shall, and shall cause Servicer
to, deposit such Income (other than Liquidation Proceeds with respect to Liquidated REO Property) in the Collection Account and
to deposit Liquidation Proceeds with respect to Liquidated REO Property into the applicable Certificate Distribution Account, in
each case, no later than two Business Days following receipt. All such Income shall be held in trust for Buyer, shall constitute
the property of Buyer except for tax purposes which shall be treated as income and property of Seller Parties and shall not be
commingled with other property of Seller Parties, any Affiliate of Seller Parties or the applicable Seller Party except as expressly
permitted above. Funds deposited in the Collection Account and the Certificate Distribution Accounts during any month shall be
held therein, in trust for Buyer, until the next Payment Date. Subject to the terms of the Control Agreement, Sellers shall withdraw
any funds on deposit in the Collection Account and the Certificate Distribution Accounts and apply such funds as follows:

 

(i)first,
to Buyer in payment of any accrued and unpaid Price Differential;

 

(ii)second,
to Buyer in payment of all unpaid costs, fees, expenses and indemnities payable by Sellers pursuant to this Agreement;

 

(iii)third,
Liquidation Proceeds will be distributed to Buyer with respect to each Liquidated Mortgage Loan or Liquidated REO Property, as
applicable, in an amount equal to the lesser of (1) the Liquidation Proceeds and (2) the Release Price, in each case with respect
to such Liquidated Mortgage Loan or Liquidated REO Property, as applicable;

 

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(iv)fourth,
without limiting the rights of Buyer under Section 4 of this Agreement, to Buyer, in the amount of any unpaid Margin Deficit
and any other due and unpaid Obligations; and

 

(v)fifth,
unless an Event of Default has occurred and is continuing, to the Sellers.

 

(c)To the extent
that Buyer receives any funds with respect to the purchase of a Mortgage Loan or REO Property, Buyer shall promptly apply such
funds in accordance with the same order of priority set forth in Section 5(b) hereof.

 

(d)Notwithstanding
the preceding provisions, if an Event of Default has occurred, all funds in the Collection Account and the Certificate Distribution
Accounts shall be withdrawn and applied as determined by Buyer.

 

Section 6.Requirements
Of Law. (a) If any Requirement of Law (other than with respect to any amendment made to Buyer’s certificate of incorporation
and by-laws or other organizational or governing documents) or any change in the interpretation or application thereof or compliance
by Buyer with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority
made subsequent to the date hereof:

 

(i)shall
subject Buyer to any Tax or increased Tax of any kind whatsoever with respect to this Agreement or any Transaction or change the
basis of taxation of payments to Buyer in respect thereof;

 

(ii)shall
impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, or other extensions of credit by, or any other acquisition of
funds by, any office of Buyer which is not otherwise included in the determination of the LIBOR Rate hereunder;

 

(iii)shall
impose on Buyer any other condition;

 

and the result of any of the foregoing
is to increase the cost to Buyer, by an amount which Buyer deems to be material, of entering, continuing or maintaining any Transaction
or to reduce any amount due or owing hereunder in respect thereof, then, in any such case, Sellers shall pay Buyer such additional
amount or amounts as calculated by Buyer in good faith as will compensate Buyer for such increased cost or reduced amount receivable;
provided, however, that Sellers shall only be obligated to pay such amounts incurred by Buyer from and after the date which is
thirty (30) days prior to notice to Sellers thereof.

 

(b)If Buyer shall
have determined that the adoption of or any change in any Requirement of Law (other than with respect to any amendment made to
Buyer’s certificate of incorporation and by-laws or other organizational or governing documents) regarding capital adequacy
or in the interpretation or application thereof or compliance by Buyer or any corporation controlling Buyer with any request or
directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority made subsequent to
the date hereof shall have the effect of reducing the rate of return on Buyer’s or such corporation’s capital as a
consequence of its obligations hereunder to a level below that which Buyer or such corporation could have achieved but for such
adoption, change or compliance (taking into consideration Buyer’s or such corporation’s policies with respect to capital
adequacy) by an amount deemed by Buyer to be material, then from time to time, Sellers shall pay to Buyer such additional amount
or amounts as will compensate Buyer for such reduction; provided, however, that Sellers shall only be obligated to pay such amounts
incurred by Buyer from and after the date which is thirty (30) days prior to notice to Sellers thereof.

 

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(c)If Buyer becomes
entitled to claim any additional amounts pursuant to this Section, it shall promptly notify Sellers of the event by reason of which
it has become so entitled. A certificate as to any additional amounts payable pursuant to this Section submitted by Buyer to Sellers
shall be conclusive in the absence of manifest error.

 

Section 7.Taxes.

 

(a)Any and all payments
by Sellers under or in respect of this Agreement or any other Facility Documents to which Sellers are a party shall be made free
and clear of, and without deduction or withholding for or on account of, any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities (including penalties, interest and additions to tax) with respect thereto,
whether now or hereafter imposed, levied, collected, withheld or assessed by any taxation authority or other Governmental Authority
(collectively, “Taxes”), unless required by law. If Sellers shall be required under any applicable Requirement
of Law to deduct or withhold any Taxes from or in respect of any sum payable under or in respect of this Agreement or any of the
other Facility Documents to Buyer, (i) Sellers shall make all such deductions and withholdings in respect of Taxes, (ii) Sellers
shall pay the full amount deducted or withheld in respect of Taxes to the relevant taxation authority or other Governmental Authority
in accordance with any applicable Requirement of Law, and (iii) the sum payable by Sellers shall be increased as may be necessary
so that after Sellers have made all required deductions and withholdings (including deductions and withholdings applicable to additional
amounts payable under this Section 7) Buyer receives an amount equal to the sum it would have received had no such deductions or
withholdings been made in respect of Non-Excluded Taxes. For purposes of this Agreement the term “Non-Excluded Taxes”
are Taxes other than, in the case of Buyer, Taxes that are imposed on its overall net income (and franchise taxes imposed in lieu
thereof) by the jurisdiction under the laws of which Buyer is organized or of its applicable lending office, or any political subdivision
thereof, unless such Taxes are imposed as a result of Buyer having executed, delivered or performed its obligations or received
payments under, or enforced, this Agreement or any of the other Facility Documents (in which case such Taxes will be treated as
Non-Excluded Taxes).

 

(b)In addition, each
Seller hereby agrees to pay any present or future stamp, recording, documentary, excise, property or value-added taxes, or similar
taxes, charges or levies that arise from any payment made under or in respect of this Agreement or any other Facility Document
or from the execution, delivery or registration of, any performance under, or otherwise with respect to, this Agreement or any
other Facility Document (collectively, “Other Taxes”).

 

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(c)Each Seller hereby
agrees to indemnify Buyer for, and to hold it harmless against, the full amount of Non-Excluded Taxes and Other Taxes, and the
full amount of Taxes of any kind imposed by any jurisdiction on amounts payable by any Seller under this Section 7 imposed on or
paid by Buyer and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect
thereto. The indemnity by Sellers provided for in this Section 7(c) shall apply and be made whether or not the Non-Excluded Taxes
or Other Taxes for which indemnification hereunder is sought have been correctly or legally asserted by any Governmental Agency.
Amounts payable by Sellers under the indemnity set forth in this Section 7(c) shall be paid within ten (10) days from the date
on which Buyer makes written demand therefor.

 

(d)Within thirty
(30) days after the date of any payment of Taxes pursuant to this Section 7, each Seller (or any Person making such payment on
behalf of such Seller) shall furnish to Buyer for its own account a certified copy of the original official receipt evidencing
payment thereof.

 

(e)For purposes of
subsection (e) of this Section 7, the terms “United States” and “United States person” shall have the meanings
specified in Section 7701 of the Internal Revenue Code. Each Buyer (including for avoidance of doubt any assignee, successor or
participant) that either (i) is not incorporated under the laws of the United States, any State thereof, or the District of Columbia
or (ii) whose name does not include “Incorporated,” “Inc.,” “Corporation,” “Corp.,”
“P.C.,” “N.A.,” “National Association,” “insurance company,” or “assurance
company” (a “Non-Exempt Buyer”) shall deliver or cause to be delivered to Sellers the following properly
completed and duly executed documents:

 

(i)in the
case of a Non-Exempt Buyer that is not a United States person or is a foreign disregarded entity for U.S. federal income tax purposes
that is entitled to provide such form, a complete and executed (x) U.S. Internal Revenue Form W-8BEN with Part II completed in
which Buyer claims the benefits of a tax treaty with the United States providing for a zero or reduced rate of withholding (or
any successor forms thereto), including all appropriate attachments or (y) a U.S. Internal Revenue Service Form W-8ECI (or any
successor forms thereto); or

 

(ii)in
the case of an individual, (x) a complete and executed U.S. Internal Revenue Service Form W-8BEN (or any successor forms thereto)
and a certificate substantially in the form of Exhibit I (a “Section 7 Certificate”) or (y) a complete
and executed U.S. Internal Revenue Service Form W-9 (or any successor forms thereto); or

 

(iii)in
the case of a Non-Exempt Buyer that is organized under the laws of the United States, any State thereof, or the District of Columbia,
a complete and executed U.S. Internal Revenue Service Form W-9 (or any successor forms thereto), including all appropriate attachments;
or

 

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(iv)in
the case of a Non-Exempt Buyer that (x) is not organized under the laws of the United States, any State thereof, or the District
of Columbia and (y) is treated as a corporation for U.S. federal income tax purposes, a complete and executed U.S. Internal Revenue
Service Form W-8BEN (or any successor forms thereto) and a Section 7 Certificate; or

 

(v)in the
case of a Non-Exempt Buyer that (A) is treated as a partnership or other non-corporate entity, and (B) is not organized under the
laws of the United States, any State thereof, or the District of Columbia, (x)(i) a complete and executed U.S. Internal Revenue
Service Form W-8IMY (or any successor forms thereto) (including all required documents and attachments) and (ii) a Section 7 Certificate,
and (y) without duplication, with respect to each of its beneficial owners and the beneficial owners of such beneficial owners
looking through chains of owners to individuals or entities that are treated as corporations for U.S. federal income tax purposes
(all such owners, “beneficial owners”), the documents that would be provided by each such beneficial owner pursuant
to this section if such beneficial owner were Buyer, provided, however, that no such documents will be required with respect to
a beneficial owner to the extent the actual Buyer is determined to be in compliance with the requirements for certification on
behalf of its beneficial owner as may be provided in applicable U.S. Treasury regulations, or the requirements of this clause (v)
are otherwise determined to be unnecessary, all such determinations under this clause (v) to be made in the sole discretion of
Sellers, provided, however, that Buyer shall be provided an opportunity to establish such compliance as reasonable; or

 

(vi)in
the case of a Non-Exempt Buyer that is disregarded for U.S. federal income tax purposes, the document that would be provided by
its beneficial owner pursuant to this Section if such beneficial owner were Buyer; or

 

(vii)in
the case of a Non-Exempt Buyer that (A) is not a United States person and (B) is acting in the capacity as an “intermediary”
(as defined in U.S. Treasury Regulations), (x)(i) a U.S. Internal Revenue Service Form W-8IMY (or any successor form thereto) (including
all required documents and attachments) and (ii) a Section 7 Certificate, and (y) if the intermediary is a “non-qualified
intermediary” (as defined in U.S. Treasury Regulations), from each person upon whose behalf the “non-qualified intermediary”
is acting the documents that would be provided by each such person pursuant to this Section if each such person were Buyer.

 

If Buyer provided a form
pursuant to clause (e)(i)(x) and the form provided by Buyer at the time Buyer first becomes a party to this Agreement or, with
respect to a grant of a participation, the effective date thereof, indicates a United States interest withholding tax rate in excess
of zero, withholding tax at such rate shall be treated as Taxes other than “Non-Excluded Taxes” (“Excluded
Taxes”) and shall not qualify as Non-Excluded Taxes unless and until Buyer provides the appropriate form certifying that
a lesser rate applies, whereupon withholding tax at such lesser rate shall be considered Excluded Taxes solely for the periods
governed by such form. If, however, on the date a Person becomes an assignee, successor or participant to this Agreement, Buyer
transferor was entitled to indemnification or additional amounts under this Section 7, then Buyer assignee, successor or participant
shall be entitled to indemnification or additional amounts to the extent (and only to the extent), that Buyer transferor was entitled
to such indemnification or additional amounts for Non-Excluded Taxes, and Buyer assignee, successor or participant shall be entitled
to additional indemnification or additional amounts for any other or additional Non-Excluded Taxes.

 

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(f)For any period
with respect to which Buyer has failed to provide Sellers with the appropriate form, certificate or other document described in
subsection (e) of this Section 7 (other than (i) if such failure is due to a change in any applicable Requirement of Law, or in
the interpretation or application thereof, occurring after the date on which a form, certificate or other document originally was
required to be provided by Buyer, or (ii) if it is legally inadvisable or otherwise commercially disadvantageous for Buyer to deliver
such form, certificate or other document), Buyer shall not be entitled to indemnification or additional amounts under subsection
(a) or (c) of this Section 7 with respect to Non-Excluded Taxes imposed by the United States by reason of such failure; provided,
however, that should a Buyer become subject to Non-Excluded Taxes because of its failure to deliver a form, certificate or other
document required hereunder, Sellers shall take such steps as Buyer shall reasonably request, to assist Buyer in recovering such
Non-Excluded Taxes.

 

(g)Without prejudice
to the survival of any other agreement of Sellers hereunder, the agreements and obligations of Sellers contained in this Section 7
shall survive the termination of this Agreement. Nothing contained in this Section 7 shall require Buyer to make available
any of its tax returns or any other information that it deems to be confidential or proprietary.

 

(h)Each party to
this Agreement acknowledges that it is its intent for purposes of U.S. federal, state and local income and franchise taxes, to
treat the Transaction as indebtedness of Sellers that is secured by the Purchased Mortgage Loans and Repurchase Assets and the
Purchased Mortgage Loans and Repurchase Assets as owned by Sellers for federal income tax purposes in the absence of a Default
by Sellers. All parties to this Agreement agree to such treatment and agree to take no action inconsistent with this treatment,
unless required by law.

 

Section 8.Security
Interest; Buyer’s Appointment as Attorney-in-Fact.

 

(a)Security Interest.

 

(i)On each
Purchase Date, each Seller hereby sells, assigns and conveys all rights and interests in the Purchased Mortgage Loans identified
on the related Asset Schedule. In addition to the foregoing, each Seller hereby pledges to Buyer as security for the performance
by Sellers of their Obligations and hereby grants, assigns and pledges to Buyer a fully perfected first priority security interest
in the Purchased Mortgage Loans, the REO Subsidiary Interests, the Records, and all Servicing Rights related to the Purchased Mortgage
Loans and Underlying REO Property, the Facility Documents (to the extent such Facility Documents and each Seller’s right
thereunder relate to the Purchased Mortgage Loans, REO Subsidiary Interests and Underlying REO Property), any Property relating
to any Purchased Mortgage Loan or the related Mortgaged Property or Underlying REO Property, all insurance policies and insurance
proceeds relating to any Purchased Mortgage Loan or the related Mortgaged Property or Underlying REO Property, including but not
limited to any payments or proceeds under any related primary insurance or hazard insurance, any Income relating to any Purchased
Mortgage Loan and Underlying REO Property, the Collection Account, the Certificate Distribution Accounts, and all rights against
and in respect of PMC related to the Underlying Repurchase Transactions, and any other contract rights, accounts (including any
interest of any Seller in escrow accounts) and any other payments, rights to payment (including payments of interest or finance
charges) and general intangibles to the extent that the foregoing relates to any Purchased Mortgage Loan, Underlying REO Property
or REO Subsidiary Interest and any other assets relating to the Purchased Mortgage Loans or Underlying REO Property (including,
without limitation, any other accounts) or any interest in the Purchased Mortgage Loans and Underlying REO Property, and any proceeds
(including the related securitization proceeds) and distributions and any other property, rights, title or interests as are specified
on a Confirmation and/or Trust Receipt and Asset Detail and Exception Report with respect to any of the foregoing, in all instances,
whether now owned or hereafter acquired, now existing or hereafter created (collectively, the “Seller Repurchase Assets”).
This paragraph is intended to constitute a security agreement or other arrangement or other credit enhancement related to the Agreement
and transactions hereunder as defined under Section 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code.

 

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(ii)Each
of POP and PMC hereby grant, assign and pledge to Buyer a fully perfected first priority security interest in all of POP’s
and PMC’s right, title and interest in, to and under the Underlying Repurchase Assets subject to an Underlying Repurchase
Transaction, Purchased Items (as such term is defined in the Underlying Repurchase Agreement), the Records, and all Servicing Rights
related to the Underlying Repurchase Assets, the Facility Documents (to the extent such Facility Documents and each of POP’s
and PMC’s right thereunder relate to the Underlying Repurchase Assets), any Property relating to any Underlying Repurchase
Asset or the related Mortgaged Property, 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 or
hazard insurance, any Income relating to any Underlying Repurchase Asset, the Collection Account, the Certificate Distribution
Accounts, and any other contract rights, accounts (including any interest of POP or PMC in escrow accounts) and any other payments,
rights to payment (including payments of interest or finance charges) and general intangibles to the extent that the foregoing
relates to any Underlying Repurchase Asset and any 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 and any other property, rights, title or interests as are specified on a Confirmation and/or Trust
Receipt and Asset Detail and Exception Report with respect to any of the foregoing, in all instances, whether now owned or hereafter
acquired, now existing or hereafter created (collectively, the “Underlying Transaction Repurchase Assets”).
This paragraph is intended to constitute a security agreement or other arrangement or other credit enhancement related to the Agreement
and transactions hereunder as defined under Section 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code.

 

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(iii)In
order to further secure the Obligations hereunder, each REO Subsidiary hereby pledges to Buyer as security for the performance
by such REO Subsidiary of its Obligations and hereby grants, assigns and pledges to Buyer a fully perfected first priority security
interest in the Subsidiary Owned Assets, the Records, and all Servicing Rights related to the Subsidiary Owned Assets, the Facility
Documents (to the extent such Facility Documents and such REO Subsidiary’s right thereunder relate to the Subsidiary Owned
Assets), any Property relating to any Subsidiary Owned Asset or the related Mortgaged Property, 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 or hazard insurance, any Income relating to any Subsidiary Owned Asset, the Collection
Account, the Certificate Distribution Accounts, and any other contract rights, accounts (including any interest of any REO Subsidiary
in escrow accounts) and any other payments, rights to payment (including payments of interest or finance charges) and general intangibles
to the extent that the foregoing relates to any Subsidiary Owned Asset and any 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 and any other property, rights, title or interests as are specified on a
Confirmation and/or Trust Receipt and Asset Detail and Exception Report with respect to any of the foregoing, 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”)
This paragraph is intended to constitute a security agreement or other arrangement or other credit enhancement related to the Agreement
and transactions hereunder as defined under Section 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code, and is further intended
to be a guaranty of the Obligations to the Buyer by such REO Subsidiary to the extent of its Subsidiary Owned Assets.

 

POP acknowledges
and agrees that its rights with respect to the Repurchase Assets (including without limitation its security interest in the Purchased
Mortgage Loans, the REO Subsidiary Interests and any other collateral purchased by POP 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. POP agrees that it will provide notice of any action it takes with
respect to the Underlying Repurchase Assets at any time any such Underlying Repurchase Assets are owned by or pledged to Buyer
under this Agreement.

 

(iv)Each
Seller acknowledges that it has no rights to service the Purchased Mortgage Loans or Underlying REO Property except as expressly
set forth herein. Without limiting the generality of the foregoing and in the event that a Seller Party is deemed to retain any
residual Servicing Rights, and for the avoidance of doubt, each Seller Party 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. This paragraph is intended to constitute a security agreement or other arrangement or other credit enhancement
related to the Agreement and transactions hereunder as defined under Section 101(47)(v) and 741(7)(xi) of the Bankruptcy Code.

 

 

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(v)Each
Seller Party hereby authorizes Buyer to file such financing statement or statements relating to the Repurchase Assets as Buyer,
at its option, may deem appropriate. Sellers shall pay the filing costs for any financing statement or statements prepared pursuant
to this Section 8.

 

(b)Buyer’s
Appointment as Attorney in Fact. Each Seller Party 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 such Seller Party and in the name of such Seller Party or in its own name, from time to time in Buyer’s
discretion if an Event of Default shall have occurred and be continuing, for the purpose of carrying out the terms of this Agreement,
to take any and all appropriate action and to execute any and all documents and instruments which may be reasonably necessary or
desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, such Seller Party
hereby gives Buyer the power and right, on behalf of such Seller Party, without assent by, but with notice to, such Seller Party,
to do the following:

 

(i)in the
name of such 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 other Repurchase 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 Repurchase Assets whenever payable;

 

(ii)to
pay or discharge taxes and Liens levied or placed on or threatened against the Repurchase Assets;

 

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

 

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Each 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. In addition the foregoing, each Seller Party agrees to execute a Power of Attorney,
the form of Exhibit M hereto, to be delivered on the date hereof.

 

Each Seller Party also
authorizes Buyer, if an Event of Default shall have occurred, from time to time, to execute, in connection with any sale provided
for in Section 15 hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Repurchase
Assets.

 

The powers conferred
on Buyer hereunder are solely to protect Buyer’s interests in the Repurchase 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 Parties for
any act or failure to act hereunder, except for its or their own gross negligence or willful misconduct.

 

(c)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; each of PMC and POP 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.
Each of PMC and POP shall, at Sellers’ sole cost and expense, take all steps as may be necessary in connection with the indorsement,
transfer, delivery and pledge of all REO Subsidiary Interests to Buyer.

 

(d)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 trust interest or other equity interest, any option rights, or any equity interest in any 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 the Buyer’s agent, 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 any 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.

 

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(e)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 Interest or
Repurchase Assets. Without limiting the generality of the foregoing, Buyer may in its sole discretion (x) remove a Servicer or
terminate a Servicing Agreement in connection with a default by a Servicer 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. 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 any 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 Subsidiaries’ 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 Subsidiaries to sell, assign or transfer the Repurchase
Assets.

 

(f)REO Subsidiary
Interests. Notwithstanding any provision to the contrary herein or in any other Facility Document, 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,
(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, and (iii) unless an Event of Default shall have occurred and be continuing, the Buyer
(A) shall not exercise any right or privilege of a Certificateholder (as defined in the REO Subsidiary Agreements) or owner of
the legal and beneficial ownership interest in the REO Subsidiary Interest without prior written notice (which may be in the form
of an email transmission) to the Sellers (which notice shall describe the contemplated action); provided that, to the extent that
any 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 (B) shall exercise all rights
and privileges with respect to the REO Subsidiary Interests 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 Interest or Repurchase Assets. 

 

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Section 9.Payment,
Transfer And Custody. (a) 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: JPMorgan Chase Bank, Account Number xxxxxxxx, for the credit account: JPMorgan Chase Bank NY; ref:
PennyMac, ABA# xxx-xxx-xxx Attn: Mortgage Finance, not later than 5:00 p.m. New York City time, on the date on which such payment
shall become due (and each such payment made after such time shall be deemed to have been made on the next succeeding Business
Day). Each Seller acknowledges that it has no rights of withdrawal from the foregoing account. 

 

(b)On the Purchase
Date for each Transaction, ownership of the Purchased Mortgage Loans shall be transferred to Buyer or its designee against the
simultaneous transfer of the Purchase Price to the following account of Sellers: Account No. xxxxxxxxxx, for the account of PennyMac
Operating Partnership, L.P. Operating Account, Bank of America, N.A., ABA No. xxx xxx xxx, Attn: Treasury, or Account No. xxxxxxxxxx,
for the account of PennyMac Holdings, LLC Operating Account, Bank of America, N.A., ABA No. xxx xxx xxx, Attn: Treasury, as applicable,
simultaneously with the delivery to Buyer of the Purchased Mortgage Loans relating to each Transaction. With respect to the Purchased
Mortgage Loans being sold by any Seller on a Purchase Date, such Seller hereby sells, transfers, conveys and assigns to Buyer or
its designee without recourse, but subject to the terms of this Agreement, all the right, title and interest of such Seller in
and to the Purchased Mortgage Loans together with all right, title and interest in and to the proceeds of any related Repurchase
Assets.

 

(c)In connection
with such sale, transfer, conveyance and assignment, on or prior to each Purchase Date, the applicable Seller shall deliver or
cause to be delivered and released to Buyer or its designee the Asset File for the related Asset.

 

Section 10.Hypothecation
or Pledge of Purchased Mortgage Loans. Title to all Purchased Mortgage Loans and all other Repurchase Assets purchased hereunder
shall pass to Buyer and Buyer shall have free and unrestricted use of all such Assets. Nothing in this Agreement shall preclude
Buyer from engaging in repurchase transactions with the Assets or otherwise pledging, repledging, transferring, hypothecating,
or rehypothecating the Assets. Nothing contained in this Agreement shall obligate Buyer to segregate any Purchased Mortgage Loans
or Underlying REO Property delivered to Buyer by Sellers.

 

Section 11.Facility
Fee. Sellers shall pay in immediately available funds to Buyer the Facility Fee as set forth in the Pricing Side Letter. Such
payment shall be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to Buyer at an account
designated by Buyer.

 

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Section 12.Representations.
Each Seller Party and Guarantor, jointly and severally, represents and warrants to Buyer that as of each Purchase Date and as of
the date of this Agreement and any Transaction hereunder and at all times while the Facility Documents and any Transaction hereunder
is in full force and effect:

 

(a)Acting as Principal.
Sellers will engage in such Transactions as principal (or, if agreed in writing in advance of any Transaction by the other party
hereto, as agent for a disclosed principal).

 

(b)Asset Schedule.
The information set forth in the related Asset Schedule and all other information or data furnished by, or on behalf of, Sellers
to Buyer is complete, true and correct in all material respects, and each Seller acknowledges that Buyer has not verified the accuracy
of such information or data.

 

(c)Solvency.
Neither the Facility Documents nor any Transaction thereunder are entered into in contemplation of insolvency or with intent to
hinder, delay or defraud any of any Seller Party’s creditors. The transfer of the Mortgage Loans (including for the avoidance
of doubt, the transfer of any Underlying Repurchase Assets by POP) and pledge of the REO Subsidiary Interests and transfer of REO
Properties into New REO Subsidiary is not undertaken with the intent to hinder, delay or defraud any Seller Party’s creditors.
The transfer of the Mortgage Loans subject to the Underlying Repurchase Documents is not undertaken with the intent to hinder,
delay or defraud any Seller’s creditors. Each Seller Party is not insolvent within the meaning of 11 U.S.C. Section 101(32)
and the transfer and sale of the Mortgage Loans and REO Properties into New REO Subsidiary pursuant hereto (i) will not cause
such Seller Party to become insolvent, (ii) will not result in any property remaining with such Seller Party to be unreasonably
small capital, and (iii) will not result in debts that would be beyond such Seller Party’s ability to pay as same mature.
Each Seller received reasonably equivalent value in exchange for the transfer and sale to New REO Subsidiary of the Underlying
REO Property and each Seller has received reasonably equivalent value in exchange for the transfer and sale of the Purchased Mortgage
Loans subject hereto.

 

(d)No Broker.  No
Seller Party has dealt with any broker, investment banker, agent, or other person, except for Buyer, who may be entitled to any
commission or compensation in connection with the sale of Purchased Mortgage Loans or pledge of the Repurchase Assets pursuant
to this Agreement.

 

(e)Ability to
Perform. No Seller believes, nor does it have any reason or cause to believe, that it cannot perform each and every covenant
contained in the Facility Documents to which it is a party on its part to be performed.

 

(f)Existence.
(a) (i) PMC is a corporation duly organized, validly existing and in good standing under the laws of Delaware, (ii) PMH is a limited
liability company duly organized, validly existing and in good standing under the laws of Delaware, (iii) POP is a limited partnership
duly organized, validly existing and in good standing under the laws of Delaware, and (iv) each REO Subsidiary is a statutory trust
duly organized, validly existing and in good standing under the laws of Delaware, (b) each Seller Party 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; and (c) is qualified to do business and is in good
standing in all other jurisdictions in which the nature of the business conducted by it makes such qualification necessary.

 

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(g)Financial Statements.
Guarantor and PMC have heretofore each furnished to Buyer a copy of their (a) consolidated (and, in the case of Guarantor
only, consolidating) balance sheets and statements of income of their consolidated Subsidiaries for the fiscal year ending December
31, 2013 and the related consolidated statements of retained earnings and cash flows for each of PMC and Guarantor and their respective
consolidated Subsidiaries for such fiscal year, setting forth for the consolidated Financial Statements only, in each case in comparative
form, the figures for the previous year, with the opinion thereon of Deloitte & Touche LLP, and (b) consolidated (and,
in the case of Guarantor only, consolidating) balance sheets and statements of income of their consolidated Subsidiaries for such
monthly periods of each of PMC and Guarantor up until September 30, 2014 and the related consolidated statements of retained earnings
and of cash flows for each of PMC and Guarantor and their respective consolidated Subsidiaries for such monthly periods. All such
financial statements are complete and correct and fairly present, in all material respects, the consolidated and consolidating
financial condition of each of PMC and Guarantor and their respective Subsidiaries and the consolidated and consolidating results
of their operations as at such dates and for such monthly periods, all in accordance with GAAP applied on a consistent basis. Since
December 31, 2013, there has been no material adverse change in the consolidated business, operations or financial condition of
PMC, Guarantor and their respective consolidated Subsidiaries taken as a whole from that set forth in said financial statements
nor is PMC or Guarantor aware of any state of facts which (without notice or the lapse of time) would or could result in any such
material adverse change or could have a Material Adverse Effect. Neither PMC nor Guarantor has, on December 31, 2013 any 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 either
PMC or Guarantor except as heretofore disclosed to Buyer in writing.

 

(h)No Breach.
Neither (a) the execution and delivery of the Facility Documents nor (b) the consummation of the transactions therein
contemplated to be entered into by Seller Parties or Guarantor in compliance with the terms and provisions thereof will conflict
with or result in a breach of the organizational documents of Seller Parties or Guarantor, or any applicable law, rule or regulation,
or any order, writ, injunction or decree of any Governmental Authority, or other material agreement or instrument to which a Seller
Party, Guarantor or any of their respective Subsidiaries is a party or by which any of them or any of their Property is bound or
to which any of them is subject, or constitute a default under any such material agreement or instrument or result in the creation
or imposition of any Lien (except for the Liens created pursuant to the Facility Documents) upon any Property of a Seller Party,
Guarantor or any of their respective Subsidiaries pursuant to the terms of any such agreement or instrument.

 

(i)Action.
Each Seller Party and Guarantor has all necessary corporate or other power, authority and legal right to execute, deliver and perform
its obligations under each of the Facility Documents, as applicable; the execution, delivery and performance by Seller Parties
and Guarantor of each of the Facility Documents have been duly authorized by all necessary corporate or other action on its part;
and each Facility Document has been duly and validly executed and delivered by Seller Parties and Guarantor, as applicable, and
constitutes a legal, valid and binding obligation of Seller Parties and Guarantor enforceable against Seller Parties and Guarantor
in accordance with its terms.

 

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(j)Approvals.
No authorizations, approvals or consents of, and no filings or registrations with, any Governmental Authority or any securities
exchange are necessary for the execution, delivery or performance by each Seller Party and Guarantor of the Facility Documents
or for the legality, validity or enforceability thereof, except for filings and recordings that have been obtained or in respect
of the Liens created pursuant to the Facility Documents.

 

(k)Enforceability.
This Agreement and all of the other Facility Documents executed and delivered by Seller Parties and Guarantor in connection herewith
are legal, valid and binding obligations of such Seller Parties and Guarantor and are enforceable against such Seller Parties and
Guarantor in accordance with their terms except as such enforceability may be limited by (i) the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and (ii) general
principles of equity.

 

(l)Indebtedness.
As of the date of this Agreement, no Seller Party or Guarantor has any Indebtedness, except as disclosed on Exhibit D to
this Agreement.

 

(m)Material Adverse
Effect. Since September 30, 2014, there has been no development or event nor, to any Seller’s or Guarantor’s knowledge,
any prospective development or event, which has had or could have a Material Adverse Effect.

 

(n)No Default.
No Default or Event of Default has occurred and is continuing (including without limitation any such default by PMC or POP under
the Underlying Repurchase Documents).

 

(o)Reserved.

 

(p)Adverse Selection.
No Seller Party has selected the Purchased Mortgage Loans or Underlying REO Property in a manner so as to adversely affect Buyer’s
interests.

 

(q)Litigation.
There are no actions, suits, arbitrations, investigations (including, without limitation, any of the foregoing which are pending
or threatened) or other legal or arbitrable proceedings affecting any Seller Party, Guarantor, or any of their respective 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 Facility Documents or any action to be taken in connection with the transactions contemplated hereby,
(ii) makes a claim in an aggregate 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.

 

(r)Margin Regulations.
The use of all funds acquired by Sellers under this Agreement will not conflict with or contravene any of Regulations T, U or X
promulgated by the Board of Governors of the Federal Reserve System as the same may from time to time be amended, supplemented
or otherwise modified.

 

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(s)Taxes.
(i) Each Seller Party, Guarantor and their respective Subsidiaries have timely filed all tax returns that are required to
be filed by them and have timely 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, and (ii) there
are no Liens for Taxes, except for statutory liens for Taxes not yet due and payable.

 

(t)Investment
Company Act. No Seller Party or any of its Subsidiaries is required to register under the Investment Company Act and it is
not necessary for (i) the New REO Subsidiary to register under the Investment Company Act as it is not within the definition of
investment company in Section 3(a)(1) of the Investment Company Act and (ii) the Legacy REO Subsidiary to register under the Investment
Company Act due to the exemption provided under Section 3(c)(5)(C) of the Investment Company Act.

 

(u)Repurchase
Assets.

 

(i)No Seller
Party has assigned, pledged, or otherwise conveyed or encumbered any Repurchase Asset to any other Person, and immediately prior
to the sale, transfer or pledge, as applicable, of such Repurchase Asset, the applicable Seller Party was the sole owner of such
Repurchase Asset and had good and marketable title thereto, free and clear of all Liens, in each case except for Liens to be released
simultaneously with the sale to Buyer hereunder.

 

(ii)The
provisions of this Agreement are effective to either constitute a sale of Repurchase Assets to Buyer or to create in favor of Buyer
a valid security interest in all right, title and interest of Seller Parties in, to and under the Repurchase Assets.

 

(v)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 Delaware.

 

(w)Location of
Books and Records. The location where Seller Parties keep their books and records, including all computer tapes and records
related to the Repurchase Assets is its chief executive office.

 

(x)True and Complete
Disclosure. (a) The information, reports, financial statements, exhibits and schedules furnished in writing by or on behalf
of any Seller Party or Guarantor to Buyer in connection with the negotiation, preparation or delivery of this Agreement and the
other Facility Documents or included herein or therein or delivered pursuant hereto or thereto (other than with respect to the
Mortgage Loans), when taken as a whole, do not contain any untrue statement of material fact or omit to state any material fact
necessary to make the statements herein or therein, in light of the circumstances under which they were made, not misleading. All
written information furnished after the date hereof by or on behalf of any Seller Party or Guarantor to Buyer in connection with
this Agreement and the other Facility Documents and the transactions contemplated hereby (other than with respect to the Mortgage
Loans) and thereby will be true, complete and accurate in every material respect, or (in the case of projections) based on reasonable
estimates, on the date as of which such information is stated or certified. There is no fact known to a Responsible Officer of
any Seller Party or Guarantor, after due inquiry, that could reasonably be expected to have a Material Adverse Effect that has
not been disclosed herein, in the other Facility Documents or in a report, financial statement, exhibit, schedule, disclosure letter
or other writing furnished to Buyer for use in connection with the transactions contemplated hereby or thereby.

 

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(y)ERISA.

 

(i)No liability
under Section 4062, 4063, 4064 or 4069 of ERISA has been or is expected by Seller Parties to be incurred by any Seller Party,
Guarantor or any ERISA Affiliate thereof with respect to any Plan which is a Single-Employer Plan in an amount that could reasonably
be expected to have a Material Adverse Effect.

 

(ii)No
Plan which is a Single-Employer Plan had an accumulated funding deficiency, whether or not waived, as of the last day of the most
recent fiscal year of such Plan ended prior to the date hereof, and no such plan which is subject
to Section 412 of the Code failed to meet the requirements of Section 436 of the Code as of such last day. No Seller Party,
Guarantor nor any ERISA Affiliate thereof is subject to a Lien in favor of such a Plan as
described in Section 430(k) of the Code or Section 303(k) of ERISA. 

 

(iii)Each
Plan of each Seller Party, Guarantor, each of its Subsidiaries and each of its ERISA Affiliates is in compliance in all material
respects with the applicable provisions of ERISA and the Code, except where the failure to comply would not result in any Material
Adverse Effect.

 

(iv)No
Seller Party, Guarantor nor any of their Subsidiaries has incurred a tax liability under Chapter 43 of the Code or a penalty under
Section 502(i) of ERISA which has not been paid in full, except where the incurrence of such tax or penalty would not result
in a Material Adverse Effect.

 

(v)No Seller
Party, Guarantor nor any of their Subsidiaries nor any ERISA Affiliate thereof has incurred or reasonably expects to incur any
withdrawal liability under Section 4201 of ERISA as a result of a complete or partial withdrawal from a Multiemployer Plan
in an amount that could reasonably be expected to have a Material Adverse Effect.

 

(z)Reserved.

 

(aa)Accepted Servicing
Practices. The Servicer has adequate financial standing, servicing facilities, procedures and experienced personnel necessary
for the sound servicing of mortgage loans and real estate of the same types as may from time to time constitute Mortgage Loans
and REO Properties, as applicable, and in accordance with Accepted Servicing Practices.

 

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(bb)No Reliance.
Each Seller Party and Guarantor has made its own independent decisions to enter into the Facility Documents 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. No Seller Party or 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.

 

(cc)Plan Assets.
No Seller Party 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 Assets and Repurchase Assets are not “plan assets” within the meaning of 29
CFR §2510.3-101, as modified by Section 3(42) of ERISA, in Seller Parties’ hands
and transactions by or with Seller Parties or Guarantor are not 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)Anti-Money
Laundering Laws. Each Seller Party and Guarantor has complied with all applicable anti-money laundering laws and regulations,
including without limitation the USA Patriot Act of 2001 (collectively, the “Anti-Money Laundering Laws”); each
Seller has established an anti-money laundering compliance program as required by the Anti-Money Laundering Laws, has conducted
the requisite due diligence in connection with the acquisition of each Mortgage Loan or REO Property for purposes of the Anti-Money
Laundering Laws, including with respect to the legitimacy of the applicable Mortgagor and the origin of the assets used by the
said Mortgagor to purchase the property in question, and maintains, and will maintain, sufficient information to identify the applicable
Mortgagor for purposes of the Anti-Money Laundering Laws.

 

(ee)No Prohibited
Persons. No Seller Party nor Guarantor nor any of its Affiliates, officers, directors, partners or members or any Eligible
Asset or the Mortgagor related to any such Eligible Asset is an entity or person (or to any Seller Party’s or Guarantor’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”).

 

(ff)Underlying
Repurchase Transactions. All of the representations and warranties set forth on Schedule 1-D are true and correct in
all material respects.

 

(gg)REO Subsidiary
Interests. All of the representations and warranties set forth on Schedule 1-C are true and correct in all material
respects.

 

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(hh)Real Estate
Investment Trust. Guarantor has not engaged in any material “prohibited transactions” as defined in Section 857(b)(6)(B)(iii)
and (C) of the Code. Guarantor for its current “tax year” (as defined in the Code) is entitled to a dividends paid
deduction under the requirements of Section 857 of the Code with respect to any dividends paid by it with respect to each such
year for which it claims a deduction in its Form 1120-REIT filed with the United States Internal Revenue Service for such year.

 

Section 13.Covenants
of Seller Party and Guarantor. On and as of the date of this Agreement and each Purchase Date and on each day until this Agreement
is no longer in force, each Seller Party and Guarantor covenants as follows:

 

(a)Preservation
of Existence; Compliance with Law. Each Seller Party and Guarantor shall:

 

(i)Preserve
and maintain its legal existence and all of its material rights, privileges, licenses and franchises necessary for the operation
of its business;

 

(ii)Comply
with the requirements of all applicable laws, rules, regulations and orders, whether now in effect or hereafter enacted or promulgated
by any applicable Governmental Authority (including, without limitation, all environmental laws);

 

(iii)Maintain
all licenses, permits or other approvals necessary for such Seller Party and Guarantor to conduct its business and to perform its
obligations under the Facility Documents, and shall conduct its business strictly in accordance with applicable law;

 

(iv)Keep
adequate records and books of account, in which complete entries will be made in accordance with GAAP consistently applied; and

 

(v)Permit
representatives of Buyer, upon reasonable notice (unless an Event of Default shall have occurred and is continuing, in which case,
no prior notice shall be required), during normal business hours, to examine, copy and make extracts from its books and records,
to inspect any of its Properties, and to discuss its business and affairs with its officers, all to the extent reasonably requested
by Buyer.

 

(b)Taxes.
Each Seller Party, Guarantor and their respective Subsidiaries shall timely file all tax returns that are required to be filed
by them and shall timely pay all Taxes due, 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.

 

(c)Notice of Proceedings
or Adverse Change. Seller Party and Guarantor shall give notice to Buyer immediately after a responsible officer of Seller
Party or Guarantor has any knowledge of:

 

(i)the
occurrence of any Default or Event of Default;

 

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(ii)any
(a) event of default under any Indebtedness of any Seller Party or Guarantor or (b) litigation, investigation, regulatory
action or proceeding that is pending or threatened by or against any Seller Party or Guarantor in any federal or state court or
before any Governmental Authority which, if not cured or if adversely determined, would reasonably be expected to have a Material
Adverse Effect or constitute a Default or Event of Default, and (c) any Material Adverse Effect with respect to any Seller
Party or Guarantor;

 

(iii)any
litigation or proceeding that is pending or threatened against (a) Seller Party or Guarantor in which the amount involved exceeds
$10,000,000 and is not covered by insurance, or in which injunctive or similar relief (x) with respect to matters related to the
Facility Documents, is sought, or (y) with respect to matters other than those related to an individual Mortgage Loan or REO Property,
is granted or obtained, or which, if adversely determined, would reasonably be expected to have a Material Adverse Effect and (b) any
litigation or proceeding that is pending or threatened in connection with any of the Repurchase Assets, which, if adversely determined,
would reasonably be expected to have a Material Adverse Effect;

 

(iv)and,
as soon as reasonably possible, notice of any of the following events:

 

(A)any material
change in the insurance coverage of Seller Party or Guarantor, with a copy of evidence of same attached;

 

(B)any material
change in accounting policies or financial reporting practices of any Seller Party or Guarantor except as required by GAAP consistently
applied;

 

(C)promptly
upon receipt of notice or knowledge of any Lien or security interest (other than security interests created hereby or under any
other Facility Document) on, or claim asserted against, any of the Repurchase Assets;

 

(D)any other
event, circumstance or condition that has resulted, or has a possibility of resulting, in a Material Adverse Effect; and

 

(E)Guarantor
enters into any “prohibited transactions” as defined in Sections 857(b)(6)(B)(iii) of the Code (taking into account
Sections 857(b)(6)(C), 857(b)(6)(D) and 857(b)(6)(E) of the Code);

 

(v)Promptly,
but no later than two (2) Business Days after Seller Party or Guarantor receives any of the same, deliver to Buyer a true,
complete, and correct copy of any schedule, report, notice, or any other document delivered to Seller Party or Guarantor by any
Person pursuant to, or in connection with, any of the Repurchase Assets; and

 

(vi)Promptly,
but no later than two (2) Business Days after a Seller Party or Guarantor receives notice of the same, any Purchased Mortgage
Loan or Underlying REO Property submitted to a third party investor (whole loan or securitization) and rejected for purchase.

 

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(d)Financial Reporting.
PMC and Guarantor shall maintain a system of accounting established and administered in accordance with GAAP, and furnish to Buyer:

 

(i)Within
ninety (90) days after the close of each fiscal year, Financial Statements, including consolidated (and, in the case of Guarantor
only, consolidating) statements of income and changes in shareholders’ equity of PMC and Guarantor for such year, and the
related consolidated (and, in the case of Guarantor only, consolidating) balance sheets as at the end of such year, all in reasonable
detail and accompanied by an opinion of an accounting firm as to said consolidated financial statements;

 

(ii)Within
forty-five (45) days after the end of each calendar month, the unaudited consolidated and consolidating balance sheets and
statements of income of Guarantor as at the end of such period and the related unaudited consolidated statements of retained earnings
and of cash flows for Guarantor for such period and the portion of the fiscal year through the end of such period, subject, however,
to year-end adjustments;

 

(iii)Within
forty-five (45) days after the end of each calendar month, the unaudited consolidated balance sheets of PMC as at the end
of such period and the related unaudited consolidated statements of income and retained earnings and of cash flows for PMC for
such period and the portion of the fiscal year through the end of such period, subject, however, to year-end adjustments;

 

(iv)Simultaneously
with the furnishing of each of the financial statements to be delivered pursuant to subsection (i)-(iii) above, or monthly
upon Buyer’s request, a certificate in the form of Exhibit A to the Pricing Side Letter and certified by an executive
officer of each Seller and Guarantor;

 

(v)Reserved;
and

 

(vi)Promptly,
from time to time, such other information regarding the business affairs, operations and financial condition of each Seller and
Guarantor as Buyer may reasonably request.

 

(e)Visitation
and Inspection Rights. Each Seller and Guarantor shall permit Buyer to inspect, and to discuss with each Seller’s and
Guarantor’s officers, agents and auditors, the affairs, finances, and accounts of each Seller and Guarantor, the Repurchase
Assets, and each Seller’s and Guarantor’s books and records, and to make abstracts or reproductions thereof and to
duplicate, reduce to hard copy or otherwise use any and all computer or electronically stored information or data, in each case,
(i) during normal business hours, (ii) upon reasonable notice (provided, that upon the occurrence of an Event of Default,
no notice shall be required), and (iii) at the expense of the applicable Seller or Guarantor to discuss with its officers,
its affairs, finances, and accounts.

 

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(f)Reimbursement
of Expenses. On the date of execution of this Agreement, Sellers shall reimburse Buyer for all expenses incurred by Buyer on
or prior to such date. From and after such date, Sellers shall promptly reimburse Buyer for all expenses as the same are incurred
by Buyer and within thirty (30) days of the receipt of invoices therefor.

 

(g)Further Assurances.
Each Seller Party and Guarantor shall execute and deliver to Buyer all further documents, financing statements, agreements and
instruments, and take all further action that may be required under applicable law, or that Buyer may reasonably request, in order
to effectuate the transactions contemplated by this Agreement and the Facility Documents or, without limiting any of the foregoing,
to grant, preserve, protect and perfect the validity and first-priority of the security interests created or intended to be created
hereby. Each Seller Party and Guarantor shall do all things necessary to preserve the Repurchase Assets so that they remain subject
to a first priority perfected security interest hereunder. Without limiting the foregoing, each Seller Party and Guarantor will
comply with all rules, regulations, and other laws of any Governmental Authority and cause the Repurchase Assets to comply with
all applicable rules, regulations and other laws. No Seller Party nor Guarantor will allow any default for which such Seller Party
or Guarantor is responsible to occur under any Repurchase Assets or any Facility Document and such Seller Party and Guarantor shall
fully perform or cause to be performed when due all of its obligations under any Repurchase Assets or the Facility Documents.

 

(h)True and Correct
Information. All information, reports, exhibits, schedules, financial statements or certificates of any Seller Party, Guarantor
or any of their respective Affiliates thereof or any of their officers furnished to Buyer hereunder and during Buyer’s diligence
of each Seller Party and Guarantor are and will be true and complete in all material respects and will not omit to disclose any
material facts necessary to make the statements therein or therein, in light of the circumstances in which they are made, not misleading.
All required financial statements, information and reports delivered by any Seller Party or Guarantor to Buyer pursuant to this
Agreement shall be prepared in accordance with GAAP, or in applicable, to SEC filings, the appropriate SEC accounting requirements.

 

(i)ERISA Events.

 

(i)Promptly
upon becoming aware of the occurrence of any Event of ERISA Termination which together with all other Events of ERISA Termination
occurring within the prior 12 months involve a payment of money by or a potential aggregate liability of Seller Party or Guarantor
or any ERISA Affiliate thereof or any combination of such entities in excess of $500,000 Sellers shall give Buyer a written notice
specifying the nature thereof, what action Seller Party or Guarantor or any ERISA Affiliate thereof has taken and, when known,
any action taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto;

 

(ii)Promptly
upon receipt thereof, Sellers shall furnish to Buyer copies of (i) all notices received by Seller
Party or Guarantor or any ERISA Affiliate thereof of the PBGC’s intent to terminate any Plan or to have a trustee
appointed to administer any Plan; (ii) all notices received by Seller Party or Guarantor
or any ERISA Affiliate thereof from the sponsor of a Multiemployer Plan pursuant to Section 4202 of ERISA involving a withdrawal
liability in excess of $500,000; and (iii) all funding waiver requests filed by Seller Party or
Guarantor or any ERISA Affiliate thereof with the Internal Revenue Service with respect to any Plan, the accrued benefits
of which exceed the present value of the plan assets as of the date the waiver request is filed by more than $500,000, and all
communications received by Seller Party or Guarantor or any ERISA Affiliate thereof from
the Internal Revenue Service with respect to any such funding waiver request.

 

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(j)Financial Condition
Covenants. Each Seller and Guarantor shall comply with the Financial Condition Covenants set forth in the Pricing Side Letter.

 

(k)Reserved.

 

(l)No Adverse
Selection. No Seller Party shall select Eligible Assets to be subject to Transactions hereunder using any type of adverse selection
or other selection criteria which would adversely affect Buyer.

 

(m)Insurance.
Sellers shall continue to maintain Fidelity Insurance in an aggregate amount at least equal to the greatest minimum amount required
by any Agency. Sellers shall maintain 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. Sellers shall notify Buyer of any material change in
the terms of any such Fidelity Insurance. Sellers shall insure all buildings or other customarily insured improvements upon the
REO Property by an insurer against loss by fire, hazards of extended coverage and such other hazards in an amount not less than
the BPO Value.

 

(n)Books and Records.
Each Seller shall, to the extent practicable, maintain and implement administrative and operating procedures (including, without
limitation, an ability to recreate records evidencing the Repurchase Assets in the event of the destruction of the originals thereof),
and keep and maintain or obtain, as and when required, all documents, books, records and other information reasonably necessary
or advisable for the collection of all Repurchase Assets and Eligible Assets.

 

(o)Illegal Activities.
No Seller Party or Guarantor shall engage in any conduct or activity that could subject its assets to forfeiture or seizure.

 

(p)Material Change
in Business.  No Seller Party or Guarantor shall make any material change in the nature of
its business as carried on at the date hereof.

 

(q)Limitation
on Dividends and Distributions.  Following the occurrence and during the continuation of an
Event of Default or if an Event of Default would result therefrom, no Seller nor Guarantor shall make any payment on account of,
or set apart assets for, a sinking or other analogous fund for the purchase, redemption, defeasance, retirement or other acquisition
of any equity interest of any Seller or Guarantor, whether now or hereafter outstanding, or make any other distribution or dividend
in respect of any of the foregoing or to any shareholder or equity owner of any Seller or Guarantor in respect of the foregoing,
either directly or indirectly, whether in cash or property or in obligations of any Seller or Guarantor or any of their respective
consolidated Subsidiaries.

 

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(r)Disposition
of Assets; Liens. Except as permitted by the Facility Documents, no Seller Party shall cause any of the Repurchase Assets (including
Purchased Mortgage Loans and Underlying REO Property), the REO Subsidiary Interests, or the Underlying Repurchase Assets to be
sold, pledged, assigned or transferred; nor shall any Seller Party create, incur, assume or suffer to exist any mortgage, pledge,
Lien, charge or other encumbrance of any nature whatsoever on any of the Repurchase Assets, any REO Subsidiary, or the Underlying
Repurchase Assets, whether real, personal or mixed, now or hereafter owned, other than Liens in favor of Buyer or as permitted
by the Facility Documents.

 

(s)Transactions
with Affiliates.  No Seller Party shall enter into any transaction, including, without limitation,
the purchase, sale, lease or exchange of property or assets or the rendering or accepting of any service with any Affiliate, unless
such transaction is an Underlying Repurchase Transaction or transfer of REO Property to New REO Subsidiary as contemplated by this
Agreement or such transaction is (a) not otherwise prohibited in this Agreement, (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, as the case may be,
than it would obtain in a comparable arm’s length transaction with a Person which is not an Affiliate.

 

(t)ERISA Matters.

 

(i)No
Seller Party nor Guarantor shall permit
any event or condition which is described in any of clauses (i) through (viii) of the definition of “Event of ERISA Termination”
to occur or exist with respect to any Plan or Multiemployer Plan if such event or condition, together with all other events or
conditions described in the definition of Event of ERISA Termination occurring within the prior 12 months, involves the payment
of money by or an incurrence of liability of Seller Parties or Guarantor or any ERISA
Affiliate thereof, or any combination of such entities in an amount in excess of $500,000.

 

(ii)No
Seller Party nor Guarantor 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 no Seller Party nor
Guarantor shall use “plan assets” within the meaning of 29 CFR §2510.3-101,
as modified by Section 3(42) of ERISA, to engage in this Agreement or the Transactions hereunder
and transactions by or with any Seller Party or Guarantor are not 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.

 

(u)Consolidations,
Mergers and Sales of Assets.  No Seller shall (i) consolidate or merge with or into any
other Person or (ii) sell, lease or otherwise transfer all or substantially all of its assets to any other Person; provided
that the applicable Seller may merge or consolidate with another Person if such Seller is the corporation surviving such merger.

 

(v)Asset Reports.
On the Reporting Date or with such greater frequency as requested by Buyer, Sellers will furnish to Buyer monthly electronic Mortgage
Loan and REO Property performance data, including, without limitation, an Asset Schedule, delinquency reports, pool analytic reports
and static pool reports (i.e., delinquency, foreclosure and net charge-off reports) and monthly stratification reports summarizing
the characteristics of the Mortgage Loans and REO Properties.

 

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(w)Reserved.

 

(x)Reserved.

 

(y)Most Favored
Status. Each Seller and Guarantor agrees that should any 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 more favorable
terms to Buyer with respect to any guaranties or financial covenants, including without limitation covenants covering the same
or similar subject matter set forth in Sections 13(j) and 13(q) hereof (a “More Favorable Agreement”), Seller
and/or Guarantor shall provide notice to Buyer of such more favorable terms, and 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 Sellers or Guarantor to Buyer of such termination, the original terms of
this Agreement shall be deemed to be automatically reinstated. Each Seller and Guarantor agrees 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 any Seller, Guarantor or any Affiliate thereof entering into a repurchase agreement or other credit facility with
any Person other than Buyer and to the extent not publicly filed, such Seller or Guarantor shall deliver to Buyer a true, correct
and complete copy of such repurchase agreement, loan agreement, guaranty or other financing documentation.

 

(z)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 Sellers’ rights thereunder.

 

(aa)Special Purpose
Entity. Unless otherwise consented to by Buyer in writing, and except as permitted by the Facility Documents, PMC shall cause
each REO Subsidiary to be a Special Purpose Entity that shall (i) own no assets other than the assets specifically contemplated
by the Facility Documents, and will not engage in any business, other than the assets and transactions specifically contemplated
by the Facility Documents; (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 Facility Documents; (iii) not make any loans or
advances to any Affiliate or third party, and shall not acquire obligations or securities of any Seller’s Affiliates other
than PMC’s ownership of the REO Subsidiary Interests; (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; (vii) maintain all of its books, records and financial statements separate from those of its Affiliates; (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 and shall maintain and utilize
a separate telephone number; (ix) not enter into any transactions other than transactions specifically contemplated by the Facility
Documents with any Affiliates; (x) maintain adequate capital in light of its contemplated business purpose, transactions and liabilities;
(xi) not engage in or suffer any change in ownership, 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 any REO Subsidiary any proceedings of the type referred
to in the definition of “Insolvency Event” hereunder or seek to substantively consolidate any REO Subsidiary in connection
with any Insolvency Event with respect to any Seller; (xiv) 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 other than PMC
forming each REO Subsidiary and owning the REO Subsidiary Interests; (xvi) use separate stationery, invoices and checks bearing
its own name; (xvii) allocate fairly and reasonably any overhead for shared office space and services performed by an employee
of an Affiliate; and (xviii) not pledge its assets to secure the obligations of any other Person.

 

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(bb)REIT Status.
Guarantor shall maintain its status as a REIT under Section 856 of the Code, as amended or fails to be entitled to claim dividend
paid deductions pursuant to Section 857 of the Code, as amended.

 

Section 14.Events
Of Default. If any of the following events (each an “Event of Default”) occur, each Seller and Buyer shall
have the rights set forth in Section 15, as applicable:

 

(a)Payment Default.
Sellers shall (i) default in the payment of Price Differential, fees or Expenses and such default shall not be remedied within
one (1) Business Day, (ii) default in the payment of Income, (iii) fail to repurchase Assets when required by this Agreement or
(iv) fail to satisfy a Margin Deficit when due; or

 

(b)Representation
and Warranty Breach. Any representation, warranty or certification made or deemed made herein or in any other Facility Document
by any Seller Party or Guarantor or any certificate furnished to Buyer pursuant to the provisions hereof or thereof or any information
with respect to the Purchased Mortgage Loans or Underlying REO Property furnished in writing by on behalf of such Seller Party
and Guarantor shall prove to have been untrue or misleading in any material respect as of the time made or furnished (other than
the representations and warranties set forth in Schedule 1, which shall be considered solely for the purpose of determining
the Asset Value of the Assets; unless (i)  such Seller Party or Guarantor shall have made any such representations and warranties
with actual knowledge that they were materially false or misleading at the time made; or (ii) any such representations and
warranties have been determined in good faith by Buyer in its sole discretion to be materially false or misleading on a regular
basis); or

 

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(c)Immediate Covenant
Default. The failure of any Seller Party or Guarantor to perform, comply with or observe any term, covenant or agreement applicable
to such Seller Party or Guarantor contained in any of Sections 13(a) (Preservation of Existence; Compliance with Law),
(o) (Illegal Activities), (q) (Limitations on Dividends and Distributions), (r) (Disposition of Assets), (u)
(Consolidations, Mergers and Sales of Assets), (z) (No Amendments/Waivers of Underlying Repurchase Documents) or
(aa) (Special Purpose Entity); or

 

(d)Additional
Covenant Default. The failure of any Seller Party or Guarantor to perform, comply with or observe any term, covenant or agreement
applicable to such Seller Party or Guarantor contained in any of (i) Section 13(j) (Financial Condition Covenants),
and if such default under this subclause (d)(i) shall be capable of being remedied, such default shall continue unremedied for
a period of one (1) Business Day or (ii) Sections 13(l) (No Adverse Selection), (p) (Material Change in Business),
(s) (Transactions with Affiliates), (t) (ERISA Matters), or (y) (Most Favored Status), and if such default
under this subclause (d)(ii) shall be capable of being remedied, such default shall continue unremedied for a period of three (3)
Business Days; or

 

(e)Covenant Defaults.
Any Seller Party or Guarantor shall fail to observe or perform any other covenant or agreement contained in this Agreement (and
not identified in clauses (c) or (d) of Section 14) or any other Facility Document, and if such default shall be capable
of being remedied, and such failure to observe or perform shall continue unremedied for a period of five (5) Business Days; or

 

(f)Judgments.
A judgment or judgments for the payment of money in the aggregate in excess of $10,000,000 shall be rendered against any Seller,
Guarantor or any of their respective 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, and no Seller, Guarantor or any such Affiliate shall,
within said period of 30 days, or such longer period during which execution of the same shall have been stayed or bonded, appeal
therefrom and cause the execution thereof to be stayed during such appeal; or

 

(g)Cross-Default.
A Seller Party or Guarantor or any of such Seller Party’s or Guarantor’s Affiliates shall be in default under (A)(i) any
Indebtedness of such Seller Party or of Guarantor or of such Affiliate to Buyer 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 to which any Seller Party or Guarantor or such Affiliate and
Buyer are parties 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 or (B) any Indebtedness, in the aggregate,
in excess of $10,000,000 of such Seller Party or of Guarantor or of such Affiliate 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

 

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(h)Insolvency
Event. An Insolvency Event shall have occurred with respect to any Seller Party or Guarantor or any Affiliate thereof; or

 

(i)Enforceability.
For any reason (i) this Agreement at any time shall not be in full force and effect in all material respects or shall not be enforceable
in all material respects in accordance with its terms, or (ii) any Lien granted pursuant hereto shall fail to be perfected and
of first priority, or (iii) any Seller Party, Guarantor or an Affiliate thereof shall contest the validity, enforceability, perfection
or priority of any Lien granted pursuant hereto, or (iv) any Person (other than Buyer, any Seller Party, Guarantor or an Affiliate
thereof) shall contest the validity, enforceability, perfection or priority of any Lien granted pursuant hereto and such contest
has not been dismissed, rescinded, revoked or terminated within five (5) Business Days thereof, and, after such five (5) Business
Day period, Buyer has demanded repayment of the Repurchase Price outstanding hereunder, and Seller has failed to repay such Repurchase
Price within one (1) Business Day after demand therefor; or

 

(j)Liens.
Any Seller shall grant, or suffer to exist, any Lien on any Repurchase Asset (except any Lien in favor of Buyer or pursuant to
the Facility Documents); or

 

(k)Material Adverse
Effect. A Material Adverse Effect shall occur as determined by Buyer in its sole discretion; or

 

(l)Reserved;
or

 

(m)ERISA.
(i) Any Seller Party or Guarantor or ERISA Affiliate shall engage in any “prohibited transaction” (as defined
in Section 406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) any material “accumulated funding
deficiency” (as defined in Section 304 of ERISA), whether or not waived, shall exist with respect to any Plan or any
Lien in favor of the PBGC or a Plan shall arise on the assets of any Seller Party or Guarantor or any ERISA Affiliate, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Plan, which Reportable Event or commencement of proceedings or appointment of a trustee
is, in the reasonable opinion of Buyer, likely to result in the termination of such Plan for purposes of Title IV of ERISA, (iv) any
Plan shall terminate for purposes of Title IV of ERISA, (v)  any Seller Party or Guarantor or any ERISA Affiliate shall, or
in the reasonable opinion of Buyer is likely to, incur any liability in connection with a withdrawal from, or the insolvency or
reorganization of, a Multiemployer Plan or (vi) any other event or condition shall occur or exist with respect to a Plan;
and in each case in clauses (i) through (vi) above, such event or condition, together with all other such events or conditions,
if any, could reasonably be expected to have a Material Adverse Effect; or

 

(n)Change in Control.
A Change in Control of any Seller Party or Guarantor shall have occurred; or

 

(o)Going Concern.
Any Seller’s or Guarantor’s audited financial statements or notes thereto or other opinions or conclusions stated therein
shall be qualified or limited by reference to the status of any Seller, Guarantor or any Affiliate as a “going concern”
or reference of similar import; or

 

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(p)Reserved;
or

 

(q)Inability to
Perform. An officer of any Seller Party or Guarantor shall admit its inability to, or its intention not to, perform any of
such Seller Party’s or Guarantor’s Obligations; or

 

(r)Guarantor Breach.
A breach by Guarantor of any material representation, warranty or covenant set forth in the Guaranty or any other Facility Document,
any “event of default” by Guarantor under the Guaranty, any repudiation of the Guaranty by the Guarantor, any termination
of the Guaranty or if the Guaranty is not enforceable against the Guarantor; or

 

(s)Document Breach.
An event of default shall have occurred and shall be continuing under (i) any Facility Document (other than this Agreement), (ii)
any agreement between Buyer or any Affiliate and any Seller, Guarantor or any Affiliate or (iii) any other material agreement of
any Seller or Guarantor; or

 

(t)Underlying
Repurchase Documents. (i) 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 (ii) PMC shall deny that it has any or further liability or obligation
under any material provision of any Underlying Repurchase Document; or (iii) POP or PMC 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 (iv)
the validity or enforceability of any material provision of any Underlying Repurchase Document shall be contested by any party
thereto; or (v) any representation or warranty set forth on Schedule 1-D shall be untrue in any material respect; unless
in each case of clauses (i) through (v), the related Mortgage Loans subject to the Underlying Repurchase Document are repurchased
by POP within two (2) Business Days following notice or knowledge thereof; or

 

(u)Servicing Termination
Event. A Servicing Termination Event shall have occurred and Sellers have failed to replace Servicer within thirty (30) days
of such occurrence; or

 

(v)REIT Qualification.
Guarantor fails (i) to qualify as a REIT (without giving any effect to any cure or corrective periods or allowances), or (ii) to
continue to be entitled to a dividend paid deduction under Section 857 of the Code with respect to dividends paid by it with respect
to each taxable year for which it claims a deduction on its Form 1120- REIT filed with the United States Internal Revenue Service
for such year, or (iii) to satisfy any of the income or asset tests required to be satisfied by a REIT.

 

Section
15.Remedies. (a)  If an Event of Default occurs with respect to any Seller Party or Guarantor, the following
rights and remedies are available to Buyer; provided, that an Event of Default shall be deemed to be continuing unless
expressly waived by Buyer in writing.

 

(i)At the
option of Buyer, exercised by written notice to Sellers (which option shall be deemed to have been exercised, even if no notice
is given, immediately upon the occurrence of an Insolvency Event of any Seller Party or Guarantor), the Repurchase Date for each
Transaction hereunder, if it has not already occurred, shall be deemed immediately to occur. Buyer shall (except upon the occurrence
of an Insolvency Event of any Seller Party or Guarantor) give notice to Sellers of exercise of such option as promptly as practicable.

 

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(ii)If
Buyer exercises or is deemed to have exercised the option referred to in subsection (a)(i) of this Section,

 

(A)any or
all of Sellers’ obligations in such Transactions to repurchase all Purchased Mortgage Loans, Underlying REO Properties and
Repurchase Assets, at the Repurchase Price therefor on the Repurchase Date determined in accordance with subsection (a)(i)
of this Section, (1) shall thereupon become immediately due and payable, (2) all Income paid after such exercise or deemed
exercise shall be retained by Buyer and applied to the aggregate unpaid Repurchase Price and any other amounts owed by Sellers
hereunder, and (3) the applicable Seller shall immediately deliver to Buyer any Purchased Mortgage Loans, Underlying REO Property
and Repurchase Assets subject to such Transactions then in such Seller’s possession or control;

 

(B)to the
extent permitted by applicable law, the Repurchase Price with respect to each such Transaction shall be increased by the aggregate
amount obtained by daily application of, on a 360 day per year basis for the actual number of days during the period from and including
the date of the exercise or deemed exercise of such option to but excluding the date of payment of the Repurchase Price as so increased,
(x) the Post-Default Rate in effect following an Event of Default to (y) the Repurchase Price for such Transaction as
of the Repurchase Date as determined pursuant to subsection (a)(i) of this Section (decreased as of any day by (i) any
amounts actually in the possession of Buyer pursuant to clause (C) of this subsection, and (ii) any proceeds from the
sale of Purchased Mortgage Loans, Underlying REO Property and Repurchase Assets applied to the Repurchase Price pursuant to subsection (a)(iv)
of this Section; and

 

(C)all Income
actually received by Buyer pursuant to Section 5 (excluding any Late Payment Fees paid pursuant to Section 5(a)) shall
be applied to the aggregate unpaid Repurchase Price owed by Sellers.

 

(iii)Upon
the occurrence of one or more Events of Default, Buyer shall have the right to obtain physical possession of all files of each
Seller Party relating to the Purchased Mortgage Loans, Underlying REO Property and the Repurchase Assets and all documents relating
to the Purchased Mortgage Loans, Underlying REO Property and the 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 and each Seller Party shall deliver to Buyer
such assignments as Buyer shall request. Buyer shall be entitled to specific performance of all agreements of any Seller Party
contained in Facility Documents.

 

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(iv)At
any time on the Business Day following notice to Sellers (which notice may be the notice given under subsection (a)(i) of
this Section), in the event Sellers have not repurchased all Purchased Mortgage Loans, Underlying REO Property and Repurchase Assets,
Buyer may (A) immediately sell, without demand or further notice of any kind, at a public or private sale and at such price
or prices as Buyer may deem satisfactory any or all Purchased Mortgage Loans, Underlying REO Property and the Repurchase Assets
subject to a such Transactions hereunder and apply the proceeds thereof to the aggregate unpaid Repurchase Prices and any other
amounts owing by Sellers hereunder or (B) in its sole discretion elect, in lieu of selling all or a portion of such Purchased
Mortgage Loans, Underlying REO Property or Repurchase Assets, to give Sellers credit for such Purchased Mortgage Loans, Underlying
REO Property and the Repurchase Assets in an amount equal to the Market Value of the Purchased Mortgage Loans, Underlying REO Property
or Repurchase Assets, as applicable, against the aggregate unpaid Repurchase Price and any other amounts owing by Sellers hereunder.
The proceeds of any disposition of Purchased Mortgage Loans, Underlying REO Property and the Repurchase Assets shall be applied
as determined by Buyer in its sole discretion.

 

(v)Sellers
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.

 

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

 

(b)Each Seller Party
recognizes that the market for the Assets may not be liquid and as a result it may not be possible for Buyer to sell all of the
Assets in connection therewith 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 Assets that are 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 Assets, each Seller Party agrees that liquidation of any Asset in connection therewith
may be conducted in a private sale. Each Seller Party acknowledges and agrees that any such private sale may result in prices and
other terms less favorable to Buyer than if such sale were a public sale, and notwithstanding such circumstances, agrees that any
such private sale shall be deemed to have been made in a commercially reasonable manner. The Sellers further agree that it would
not be commercially unreasonable for Buyer to dispose of any Asset by using internet sites that provide for the auction or sale
of assets similar to the Assets, or that have the reasonable capability of doing so, or that match buyers and sellers of assets.
Buyer shall be under no obligation to delay a sale of any of any Assets that are the REO Subsidiary Interests for the period
of time necessary to permit Seller to register the REO Subsidiary Interests for public sale under the 1934 Act, or under
applicable state securities laws, even if Sellers would agree to do so.

 

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(c)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 Sellers shall not have
any 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 such Seller Party, 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.

 

(d)Buyer may exercise
one or more of the remedies available hereunder immediately upon the occurrence of an Event of Default and at any time thereafter
without notice to any Seller Party. 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.

 

(e)Buyer may enforce
its rights and remedies hereunder without prior judicial process or hearing, and each Seller Party hereby expressly waives any
defenses such Seller Party might otherwise have to require Buyer to enforce its rights by judicial process. Each Seller Party also
waives any defense (other than a defense of payment or performance) such Seller Party 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 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.

 

(f)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 to Buyer under this paragraph
14(d) shall be at a rate equal to the Post-Default Rate.

 

(g)Without limiting
the rights of Buyer hereto to pursue all other legal and equitable rights available to Buyer for any Seller Party’s failure
to perform its obligations under this Agreement, each Seller Party acknowledges and agree 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.

 

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Section 16.Indemnification
And Expenses.

 

(a) Each Seller agrees
to hold Buyer, and its Affiliates and their officers, directors, employees, agents and advisors (each an “Indemnified
Party”) harmless from and indemnify any Indemnified Party against all liabilities, losses, damages, judgments, costs
and expenses of any kind (including reasonable fees of counsel) which may be imposed on, incurred by or asserted against such Indemnified
Party (collectively, “Costs”), relating to or arising out of this Agreement, any other Facility Document or
any transaction contemplated hereby or thereby, or any amendment, supplement or modification of, or any waiver or consent under
or in respect of, this Agreement, any other Facility Document or any transaction contemplated hereby or thereby, that, in each
case, results from anything other than the Indemnified Party’s gross negligence or willful misconduct. Without limiting the
generality of the foregoing, each Seller agrees to hold any Indemnified Party harmless from and indemnify such Indemnified Party
against all Costs with respect to all Assets relating to or arising out of any taxes incurred or assessed in connection with the
ownership of the Assets, that, in each case, results from anything other than the Indemnified Party’s gross negligence or
willful misconduct. In any suit, proceeding or action brought by an Indemnified Party in connection with any Asset for any sum
owing thereunder, or to enforce any provisions of any Asset, each Seller will save, indemnify and hold such Indemnified Party harmless
from and against all expense, loss or damage suffered by reason of any defense, set-off, counterclaim, recoupment or reduction
or liability whatsoever of the account debtor or obligor thereunder, arising out of a breach by any Seller of any obligation thereunder
or arising out of any other agreement, indebtedness or liability at any time owing to or in favor of such account debtor or obligor
or its successors from any Seller. Each Seller also agrees to reimburse an Indemnified Party as and when billed by such Indemnified
Party for all the Indemnified Party’s costs and expenses incurred in connection with the enforcement or the preservation
of Buyer’s rights under this Agreement, any other Facility Document or any transaction contemplated hereby or thereby, including
without limitation the reasonable fees and disbursements of its counsel.

 

(b)Sellers agree
to pay as and when billed by Buyer all of the reasonable out-of-pocket costs and expenses incurred by Buyer in connection with
the development, preparation and execution of, and any amendment, supplement or modification to, this Agreement, any other Facility
Document or any other documents prepared in connection herewith or therewith. Sellers agree to pay as and when billed by Buyer
all of the reasonable out-of-pocket costs and expenses incurred in connection with the consummation and administration of the transactions
contemplated hereby and thereby including without limitation filing fees and all the reasonable fees, disbursements and expenses
of counsel to Buyer which amount shall be deducted from the Purchase Price paid for the first Transaction hereunder. Subject to
the limitations set forth in Section 19 hereof, Sellers agree to pay Buyer all the reasonable due diligence, inspection, testing
and review costs and expenses incurred by Buyer with respect to Mortgage Loans or Underlying REO Property submitted by Sellers
to become subject to a Transaction under this Agreement, including, but not limited to, those out-of-pocket costs and expenses
incurred by Buyer pursuant to Sections 16(b) and 19 hereof.

 

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(c)The obligations
of Sellers from time to time to pay the Repurchase Price, the Periodic Advance Repurchase Payments, and all other amounts due under
this Agreement shall be full recourse obligations of Sellers.

 

Section 17.Servicing.
(a)   Seller Parties, on Buyer’s behalf, shall contract with Servicer to, or if a Seller is the Servicer, such Seller
shall service the Purchased Mortgage Loans and Underlying REO Property consistent with the degree of skill and care that such Seller
customarily requires with respect to similar Purchased Mortgage Loans and Underlying REO Property owned or managed by it and in
accordance with Accepted Servicing Practices. 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 Purchased Mortgage Loans or Underlying REO Property or any payment thereunder.
Buyer may terminate the servicing of any Purchased Mortgage Loan or Underlying REO Property with the then existing servicer in
accordance with Section 17(e) hereof.

 

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

 

(c)Seller Parties
shall cause the Servicer to deposit all collections received by Seller Parties on account of the Purchased Mortgage Loans and Underlying
REO Property in the Collection Account or the applicable Certificate Distribution Account, as applicable, no later than two Business
Days following receipt.

 

(d)Seller Parties
shall provide promptly to Buyer a Servicer Notice addressed to and agreed to by the Servicer of the related Purchased Mortgage
Loans and Underlying REO Property, 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 Underlying REO Property 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 Underlying REO Property and any related Income with respect thereto.

 

(e)Upon the occurrence
of an Event of Default hereunder or a Servicing Termination Event, Buyer shall have the right to immediately terminate the Servicer’s
right to service the Purchased Mortgage Loans and Underlying REO Property without payment of any penalty or termination fee. Sellers
shall cooperate in transferring the servicing of the Purchased Mortgage Loans and Underlying REO Property 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.

 

(f)If a Seller should
discover that, for any reason whatsoever, any entity responsible to such Seller by contract for managing or servicing any such
Purchased Mortgage Loan or Underlying REO Property has failed to perform fully such Seller’s obligations under the Facility
Documents or any of the obligations of such entities with respect to the Purchased Mortgage Loans or Underlying REO Property, such
Seller shall promptly notify Buyer.

 

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(g)For the avoidance
of doubt, no Seller Party retains any economic rights to the servicing of the Purchased Mortgage Loans and Underlying REO Property;
provided that Seller Parties shall cause Servicer to service the Purchased Mortgage Loans and Underlying REO Property hereunder
as part of its Obligations hereunder. As such, each Seller Party expressly acknowledges that the Purchased Mortgage Loans and Underlying
REO Property that are sold or pledged to Buyer or owned by a REO Subsidiary are sold or owned on a “servicing released”
basis with such servicing retained by the Servicer.

 

Section 18.Reserved.

 

Section 19.Due
Diligence. Each Seller Party and Guarantor acknowledges that Buyer has the right to perform continuing due diligence reviews
with respect to the Purchased Mortgage Loans and Underlying REO Property and Seller Parties and Guarantor, for purposes of verifying
compliance with the representations, warranties and specifications made hereunder, or otherwise, and each Seller Party and Guarantor
agrees that (a) upon reasonable prior notice to Sellers and Guarantor unless an Event of Default shall have occurred, in which
case no notice is required, 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, records, agreements, instruments or information
relating to such Purchased Mortgage Loans and Underlying REO Property (the “Due Diligence Documents”) in the possession
or under the control of Sellers and/or Guarantor and/or the Custodian, or (b) upon request, Sellers or Guarantor shall create and
deliver to Buyer within five (5) Business Days of such request, an electronic copy on CD or DVD, in a format acceptable to Buyer,
of such Due Diligence Documents as Buyer may request. Sellers and Guarantor also shall make available to Buyer a knowledgeable
financial or accounting officer for the purpose of answering questions respecting the Asset Files, Purchased Mortgage Loans and
Underlying REO Property. Without limiting the generality of the foregoing, each Seller Party and Guarantor acknowledges that Buyer
may purchase Mortgage Loans from Sellers and enter into Transactions with respect to REO Property based solely upon the information
provided by Sellers or Guarantor 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 Mortgage Loans and Underlying REO Property 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 acquire such Purchased Mortgage Loans and Underlying REO Property. Buyer may underwrite such Purchased Mortgage Loans and
Underlying REO Property itself or engage a mutually agreed upon third party underwriter to perform such underwriting. Each Seller
Party and Guarantor 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 Purchased Mortgage Loans and Underlying REO Property in the possession, or under the
control, of such Seller Party and/or Guarantor. Each Seller Party and Guarantor further agrees that Sellers or Guarantor shall
pay all out-of-pocket costs and expenses incurred by Buyer in connection with Buyer’s activities pursuant to this Section
19, such amount not to exceed the Due Diligence Cap per calendar year (“Due Diligence Costs”), unless an Event of Default
shall have occurred and be continuing, in which case such limit shall not apply.

 

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Section 20.Assignability.

 

(a)The rights and
obligations of the parties under this Agreement and under any Transaction shall not be assigned by Seller Parties without the prior
written consent of Buyer. Subject to the foregoing, this Agreement and any Transactions shall be binding upon and shall inure to
the benefit of the parties and their respective successors and assigns. Nothing in this Agreement express or implied, shall give
to any Person, other than the parties to this Agreement and their successors hereunder, any benefit of any legal or equitable right,
power, remedy or claim under this Agreement. Buyer may from time to time assign all or a portion of its rights and obligations
under this Agreement and the Facility Documents pursuant to 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 Facility Document 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 be released from its obligations hereunder and
under the Facility Documents. 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.

 

(b)Buyer may sell
participations to one or more Persons in or to all or a portion of its rights and obligations under this Agreement; provided, however,
that (i) Buyer’s obligations under this Agreement shall remain unchanged, (ii) Buyer shall remain solely responsible
to the other parties hereto for the performance of such obligations; and (iii) Seller Parties shall continue to deal solely
and directly with Buyer in connection with Buyer’s rights and obligations under this Agreement and the other Facility Documents
except as provided in Section 7.

 

(c)Buyer may, in
connection with any assignment or participation or proposed assignment or participation pursuant to this Section 20, disclose to
the assignee or participant or proposed assignee or participant, as the case may be, any information relating to any Seller Party
or any of its Subsidiaries or to any aspect of the Transactions that has been furnished to Buyer by or on behalf of any Seller
Party or any of its Subsidiaries; provided that such assignee or participant agrees to hold such information subject to the confidentiality
provisions of this Agreement.

 

(d)In the event Buyer
assigns all or a portion of its rights and obligations under this Agreement, the parties hereto agree to negotiate in good faith
an amendment to this Agreement to add agency provisions similar to those included in repurchase agreements for similar syndicated
repurchase facilities.

 

Section 21.Transfer
and Maintenance of Register.

 

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(a)Subject to acceptance
and recording thereof pursuant to paragraph (b) of this Section 21, from and after the effective date specified in each Assignment
and Acceptance the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and
Acceptance, have the rights and obligations of Buyer under this Agreement. Any assignment or transfer by Buyer of rights or obligations
under this Agreement that does not comply with this Section 21 shall be treated for purposes of this Agreement as a sale by such
Buyer of a participation in such rights and obligations in accordance with Section 21(b) hereof.

 

(b)Sellers shall
maintain a register (the “Register”) on which it will record Buyer’s rights hereunder, and each Assignment
and Acceptance and participation. The Register shall include the names and addresses of Buyer (including all assignees, successors
and participants) and the percentage or portion of such rights and obligations assigned. Failure to make any such recordation,
or any error in such recordation shall not affect any Seller Party’s obligations in respect of such rights. If Buyer sells
a participation in its rights hereunder, it shall provide Sellers, or maintain as agent of Sellers, the information described in
this paragraph and permit Sellers to review such information as reasonably needed for Sellers to comply with its obligations under
this Agreement or under any applicable Requirement of Law.

 

Section 22.Tax
Treatment. Each party to this Agreement acknowledges that it is its intent for purposes of U.S. federal, state and local income
and franchise taxes, to treat each Transaction as indebtedness of Sellers that is secured by the Assets and that the Assets are
owned by Sellers in the absence of a Default by Sellers. All parties to this Agreement agree to such treatment and agree to take
no action inconsistent with this treatment, unless required by law. 

 

Section 23.Set-Off.

 

(a)In addition to
any rights and remedies of Buyer hereunder and by law, on the occurrence of an Event of Default, the Buyer shall have the right,
without prior notice to Seller Parties and Guarantor, any such notice being expressly waived by Seller Parties and Guarantor to
the extent permitted by applicable law to set-off and appropriate and apply against any obligation from Seller Parties, 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 Parties, Guarantor or any Affiliate thereof.
Buyer agrees promptly to notify Seller Parties and 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.

 

(b)Buyer shall at
any time have the right, in each case until such time as Buyer determines otherwise, to retain, to suspend payment or performance
of, or to decline to remit, any amount or property that Buyer would otherwise be obligated to pay, remit or deliver to any Seller
Party hereunder if an Event of Default or Default has occurred with respect to any Seller Party or Guarantor.

 

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Section 24.Terminability.
Each representation and warranty made or deemed to be made by entering into a Transaction, herein or pursuant hereto shall survive
the making of such representation and warranty, and Buyer shall not be deemed to have waived any Default that may arise because
any such representation or warranty shall have proved to be false or misleading, notwithstanding that Buyer may have had notice
or knowledge or reason to believe that such representation or warranty was false or misleading at the time the Transaction was
made. The obligations of each Seller Party under Section 16 hereof shall survive the termination of this Agreement.

 

Section 25.Notices
And Other Communications. Except as otherwise expressly permitted by this Agreement, all notices, requests and other communications
provided for herein (including without limitation any modifications of, or waivers, requests or consents under, this Agreement)
shall be given or made in writing (including without limitation by telecopy or electronic mail) delivered to the intended recipient
at the “Address for Notices” specified below its name on the signature pages hereof or thereof); or, as to any party,
at such other address as shall be designated by such party in a written notice to each other party. Except as otherwise provided
in this Agreement and except for notices given under Section 3 (which shall be effective only on receipt), all such communications
shall be deemed to have been duly given when transmitted by telecopy or electronic mail or personally delivered or, in the case
of a mailed notice, upon receipt, in each case given or addressed as aforesaid. 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.

 

Section 26.Entire
Agreement; Severability; Single Agreement. (a) This Agreement, together with the Facility Documents, constitute the entire
understanding between Buyer and Seller Party with respect to the subject matter they cover and shall supersede any existing agreements
between the parties containing general terms and conditions for repurchase transactions involving Assets. By acceptance of this
Agreement, Buyer and each Seller Party acknowledge that they have not made, and are not relying upon, any statements, representations,
promises or undertakings not contained in this Agreement. 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.

 

(b)Buyer and each
Seller Party acknowledge that, and have entered hereinto 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 that each
has been entered into in consideration of the other Transactions. 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 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 and (iii) to promptly provide notice to the other after any
such application.

 

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Section 27.GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF
LAW PRINCIPLES THEREOF.

 

Section 28.SUBMISSION
TO JURISDICTION; WAIVERS. BUYER AND EACH OF THE SELLER PARTIES EACH HEREBY IRREVOCABLY AND UNCONDITIONALLY:

 

(a)SUBMITS FOR
ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND THE OTHER FACILITY DOCUMENTS, OR FOR RECOGNITION
AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK,
THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;

 

(b)CONSENTS THAT
ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY
NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT
IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

 

(c)AGREES THAT
SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR
ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS
OF WHICH BUYER SHALL HAVE BEEN NOTIFIED; 

 

(d)AGREES THAT
NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT
TO SUE IN ANY OTHER JURISDICTION; AND

 

(e)BUYER AND EACH
SELLER PARTY HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER FACILITY DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.

 

Section 29.No
Waivers, etc. No failure on the part of Buyer to exercise and no delay in exercising, and no course of dealing with respect
to, any right, power or privilege under any Facility Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege under any Facility Document preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The remedies provided herein are cumulative and not exclusive of any remedies provided
by law. An Event of Default shall be deemed to be continuing unless expressly waived by Buyer in writing.

 

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Section 30.Netting.
If Buyer and any Seller are “financial institutions” as now or hereinafter defined in Section 4402 of Title 12
of the United States Code (“Section 4402”) and any rules or regulations promulgated thereunder,

 

(a)All amounts to
be paid or advanced by one party to or on behalf of the other under this Agreement or any Transaction hereunder shall be deemed
to be “payment obligations” and all amounts to be received by or on behalf of one party from the other under this Agreement
or any Transaction hereunder shall be deemed to be “payment entitlements” within the meaning of Section 4402,
and this Agreement shall be deemed to be a “netting contract” as defined in Section 4402.

 

(b)The payment obligations
and the payment entitlements of the parties hereto pursuant to this Agreement and any Transaction hereunder shall be netted as
follows. In the event that either party (the “Defaulting Party”) shall fail to honor any payment obligation
under this Agreement or any Transaction hereunder, the other party (the “Nondefaulting Party”) shall be entitled
to reduce the amount of any payment to be made by the Nondefaulting Party to the Defaulting Party by the amount of the payment
obligation that the Defaulting Party failed to honor.

 

Section 31.Confidentiality.
(a) Each Seller Party and Guarantor hereby acknowledges and agrees that all written or computer-readable information provided by
Buyer to any Seller Party or Guarantor regarding the terms set forth in any of the Facility Documents or the Transactions contemplated
thereby (the “Confidential Terms”) shall be kept confidential and shall not be divulged to any third party without
the prior written consent of Buyer except to the extent that (i) it is necessary to do so in working with legal counsel, auditors,
taxing authorities or other governmental agencies or regulatory bodies or in order to comply with any applicable federal or state
laws, or (ii) any of the Confidential Terms are in the public domain other than due to a breach of this covenant. Notwithstanding
the foregoing or anything to the contrary contained herein or in any other Facility Document, 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 nor Guarantor may disclose the name of or identifying information with respect to Buyer
or any pricing terms (including, without limitation, the Pricing Rate, Facility 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. The provisions set forth in this Section 31 shall
survive the termination of this Agreement.

 

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(b)Notwithstanding
anything in this Agreement to the contrary, each Seller Party and Guarantor 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 Assets
and/or any applicable terms of this Agreement (the “Confidential Information”). Each Seller Party and Guarantor
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 “GLB Act”), and each Seller Party and Guarantor agrees
to maintain such nonpublic personal information that it receives hereunder in accordance with the GLB Act and other applicable
federal and state privacy laws. Each Seller Party and Guarantor 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 GLB 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. Each Seller Party and Guarantor shall, at a minimum establish
and maintain such data security program as is necessary to meet the objectives of the Interagency Guidelines Establishing Standards
for Safeguarding Customer Information as set forth in the Code of Federal Regulations at 12 C.F.R. Parts 30, 208, 211, 225, 263,
308, 364, 568 and 570. Upon request, each Seller Party and Guarantor will provide evidence reasonably satisfactory to allow Buyer
to confirm that such Seller Party and Guarantor have 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
and Guarantor. Each Seller Party and Guarantor 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 Seller Parties and Guarantor by Buyer or such Affiliate. Each Seller Party and Guarantor 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.

 

Section 32.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. Sellers 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).

 

(b)Buyer’s
right to liquidate the Purchased Mortgage Loans, Repurchase Assets and Underlying REO Property 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 15
hereof is a contractual right to liquidate, accelerate or terminate such Transaction as described in Bankruptcy Code Sections 555
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).

 

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(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)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.

 

Section 33.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 Securities and Exchange Commission (“SEC”)
under Section 15 of the Securities Exchange Act of 1934 (“1934 Act”), the Securities Investor Protection
Corporation has taken the position that the provisions of the Securities Investor Protection Act of 1970 (“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.

 

Section 34.Conflicts.
In the event of any conflict between the terms of this Agreement, any other Facility Document and any Confirmation, the documents
shall control in the following order of priority: first, the terms of the Confirmation shall prevail, then the terms of
this Agreement shall prevail, and then the terms of the Facility Documents shall prevail.

 

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Section 35.Authorizations.
Any of the persons whose signatures and titles appear on Schedule 2 are authorized, acting singly, to act for Seller Parties,
Guarantor or Buyer, as the case may be, under this Agreement.

 

Section 36.Reserved.

 

Section 37.Miscellaneous.

 

(a)Counterparts.
This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument,
and any of the parties hereto may execute this Agreement by signing any such counterpart.

 

(b)Captions.
The captions and headings appearing herein are for included solely for convenience of reference and are not intended to affect
the interpretation of any provision of this Agreement.

 

(c)Acknowledgment.
Each Seller Party and Guarantor hereby acknowledges that:

 

(i)it has
been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Facility Documents;

 

(ii)Buyer
has no fiduciary relationship to any Seller Party or Guarantor; and

 

(iii)no
joint venture exists between Buyer and any Seller Party or Guarantor.

 

(d)Documents Mutually
Drafted. Seller Parties, Guarantor and Buyer agree that this Agreement each other Facility Document 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.

 

Section 38.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;

 

    	69

    	 

    

(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 Facility Document (unless expressly specified otherwise) are local times in New York, New York unless otherwise
stated; and

 

(h)all references
herein or in any Facility Document 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.

 

Section 39.Joint
and Several. Each Seller shall be jointly and severally liable for the full, complete and punctual performance and satisfaction
of all obligations of any Seller under this Agreement. Accordingly, each Seller waives any and all notice of creation, renewal,
extension or accrual of any of the Obligations and notice of or proof of reliance by Buyer upon such Seller’s joint and several
liability. Each Seller waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon
such Seller with respect to the Obligations. When pursuing its rights and remedies hereunder against any Seller, Buyer may, but
shall be under no obligation to, pursue such rights and remedies hereunder against any Seller or any other Person or against any
collateral security for the Obligations or any right of offset with respect thereto, and any failure by Buyer to pursue such other
rights or remedies or to collect any payments from such Seller or any such other Person to realize upon any such collateral security
or to exercise any such right of offset, or any release of such Seller or any such other Person or any such collateral security,
or right of offset, shall not relieve such Seller of any liability hereunder, and shall not impair or affect the rights and remedies,
whether express, implied or available as a matter of law, of Buyer against such Seller.

 

 

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

 

 

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IN WITNESS WHEREOF, the parties
have entered into this Agreement as of the date set forth above.

 

	 	
        BUYER:

         

         

        JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

         

        By: /s/ John Winchester

        Name: John Winchester

Title: Executive Director

         

        Address for Notices:

         

        JPMorgan Chase Bank, National Association

        383 Madison Avenue, 31st Floor

        New York, New York 10179

        Attention: Jonathan Davis

        Telecopier No.: (917) 464-4160

        Telephone No.: (212) 834-3850

        Email: jonathan.p.davis@jpmorgan.com

         

        With a copy to:

         

        JPMorgan Chase Bank, National Association

500 Stanton Christiana Road, OPS2

Newark, Delaware 19713

Attention: Sophia Redzaj

Telecopier No.: (302) 504-8969

Telephone No.: (302) 634-1381

Email: spg_mf_team@jpmorgan.com

 

Signature Page to Master Repurchase Agreement

    	 

    	 

    

 

	 	
        SELLERS:

         

         

        PENNYMAC CORP.

         

        By: /s/ Pamela Marsh

        Name: Pamela Marsh

Title: Executive Vice President, Treasurer

         

        Address for Notices:

        

        PennyMac Corp.

        6101 Condor Drive

        Moorpark, CA 93021

        Attention: Pamela Marsh/Kevin Chamberlain

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

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

        kevin.chamberlain@pnmac.com

         

        PENNYMAC OPERATING PARTNERSHIP, L.P.

         

        By: PennyMac GP OP, Inc., its General Partner

         

        By: /s/ Pamela Marsh

        Name: Pamela Marsh

Title: Executive Vice President, Treasurer

         

        Address for Notices:

         

        PennyMac Operating Partnership, L.P.

        6101 Condor Drive

        Moorpark, CA 93021

        Attention: Pamela Marsh/Kevin Chamberlain

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

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

        kevin.chamberlain@pnmac.com

         

 

 

 

Signature Page to Master Repurchase Agreement

 

 

    	 

    	 

    

 

 

	 	
        PENNYMAC HOLDINGS, LLC

         

         

        By: /s/ Pamela Marsh

        Name: Pamela Marsh

Title: Executive Vice President, Treasurer

         

        Address for Notices:

         

        PennyMac Holdings, LLC

        6101 Condor Drive

        Moorpark, CA 93021

        Attention: Pamela Marsh/Kevin Chamberlain

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

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

        kevin.chamberlain@pnmac.com

         

        REO SUBSIDIARIES: 

         

        PMC REO Trust 2015-1

         

        By: PennyMac Corp., as Administrator

         

        By: /s/ Pamela Marsh

        Name: Pamela
Marsh

        Title: Executive Vice President, Treasurer

         

        Address for Notices:

         

        PMC REO Trust 2015-1

        6101 Condor Drive

        Moorpark, CA 93021

        Attention: Pamela Marsh/Kevin Chamberlain

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

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

        kevin.chamberlain@pnmac.com

         

 

 

 

Signature Page to Master Repurchase Agreement

 

    	 

    	 

    

 

	 	
        TRS REO Trust 1-A

         

        By: PennyMac Corp., as Administrator

         

        By: /s/ Pamela Marsh

        Name: Pamela Marsh

Title: Executive Vice President, Treasurer

         

        Address for Notices:

         

        TRS REO Trust 1-A

        6101 Condor Drive

        Moorpark, CA 93021

        Attention: Pamela Marsh/Kevin Chamberlain

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

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

        kevin.chamberlain@pnmac.com

         

        GUARANTOR:

         

        PENNYMAC MORTGAGE INVESTMENT TRUST

         

        By: /s/ Pamela Marsh

        Name: Pamela Marsh

Title: Executive Vice President, Treasurer

         

        Address for Notices:

         

        PennyMac Mortgage Investment Trust

        6101 Condor Drive

        Moorpark, CA 93021

        Attention: Pamela Marsh/Kevin Chamberlain

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

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

        kevin.chamberlain@pnmac.com

         

 

 

 

Signature Page to Master Repurchase Agreement

 

    	 

    	 

    

 

SCHEDULE 1-A

 

REPRESENTATIONS AND WARRANTIES RE: MORTGAGE
LOANS

 

 

Each Seller makes the
following representations and warranties to Buyer with respect to each Mortgage Loan, as of the Purchase Date for the purchase
of any Purchased Mortgage Loans by Buyer from Sellers and as of the date of this Agreement and any Transaction hereunder and at
all times while the Facility Documents and any Transaction hereunder is in full force and effect. For purposes of this Schedule 1-A
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 a Mortgage Loan if and when a Seller has 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 Mortgage Loan. With respect to those representations
and warranties which are made to the best of any Seller’s knowledge, if it is discovered by any Seller or Buyer that the
substance of such representation and warranty is inaccurate, notwithstanding any Seller’s lack of knowledge with respect
to the substance of such representation and warranty, such inaccuracy shall be deemed a breach of the applicable representation
and warranty.

 

(a)Data.
 The information on the Asset Schedule is true and correct in all material respects as of the date of such information. With
respect to each Mortgage Loan, as of the Purchase Date, the most recent credit score listed on the Asset Schedule was no more than
six (6) months old. As of the Purchase Date, with respect to each Mortgage Loan no BPO valuation listed on the Asset Schedule was
more than two hundred and seventy (270) days old, provided that with respect to Mortgage Loans and Underlying REO Property subject
to the initial Transaction, Sellers shall have seven (7) Business Days from the Purchase Date to update any BPO not otherwise in
compliance with this clause (a).

 

(b)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 The servicing and collection practices with respect to each Mortgage Loan complied in all
material respects with all then-applicable federal, state, and local laws.

 

(c)Ownership.
Immediately prior to the transfer and assignment of the Mortgage Loan pursuant to this Agreement, a Seller Party 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.

 

(d)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 generally in the area in which the Mortgaged Property is located, and (iii) 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 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 each Seller has the full right to pledge and assign the same
to the Buyer.

 

Schedule 1-A

 

    	 

    	 

    

(e)No Prior Modifications.
Unless otherwise indicated in the related Asset Schedule and reflected in an agreement included in the Mortgage File, no Seller
Party nor any prior holder of the Mortgage or the related Mortgage Note has: (i) modified the mortgage or the related Mortgage
Note in any material respect; (ii) satisfied, canceled, or subordinated the mortgage in whole or in part; (iii) released the Mortgaged
Property in whole or in part from the lien of the Mortgage; or (iv) executed any instrument of release, cancellation, modification,
or satisfaction. If a Mortgage Loan has been modified, the modified terms are reflected on the Asset Schedule.

 

(f)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.

 

(g)Mortgage Recorded.
Each original Mortgage was recorded 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 necessary to perfect the lien of the Mortgage. With respect to each Mortgage that 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 such Mortgage.

 

(h)Litigation.
Other than any customary claim or counterclaim arising out of any foreclosure, bankruptcy, eviction or collection proceeding relating
to any Mortgage Loan, there is no litigation, proceeding, governmental investigation or class action lawsuit existing or pending,
or any order, injunction or decree outstanding, existing or relating to the Mortgage Loan or the related Mortgaged Property.

 

(i)Complete Asset
Files. For each Mortgage Loan, all of the required Mortgage Loan documents have been delivered to the Custodian or held by
an attorney in connection with a foreclosure pursuant to an Attorney Bailee Letter 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. With respect to each such
Mortgage Loan, upon the consummation of the related Transaction, Custodian shall have received the related Asset File 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.

 

Schedule 1-A

 

    	 

    	 

    

(j)No Construction
Loans; Reverse Mortgage Loans; HELOCs; Co-ops; Commercial Loans. 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) was made in connection
with facilitating the trade-in or exchange of a Mortgaged Property, (iii) is a reverse mortgage, an “Option ARM” or
otherwise has negative amortization features, (iv) is a home equity line of credit, (v) is made to 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, (vi) is made for commercial purposes, (vii) is a rehabilitation loan, or
loan secured by a mobile home, a condotel or commercial property or raw land, or (viii) secured by a second lien on the related
Mortgaged Property.

 

(k)Taxes, Assessments.
All taxes, governmental assessments, water, sewer, and municipal charges which previously became due and owing have been paid,
or, where applicable law allows, an escrow of funds has been established in an amount sufficient to pay for such item that remains
unpaid; except for any such charges for which such Seller and/or Servicer have, after due consideration, made a determination not
to pay for, in accordance with their current practice and have been disclosed in writing to Buyer.

 

(l)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.

 

(m)No Consents.
Other than consents and approvals obtained as of the related Purchase Date or those already granted in the documents governing
such Mortgage Loan, no consent or approval by any Person is required in connection with a Seller’s sale and/or Buyer’s
acquisition of such Mortgage Loan, for Buyer’s exercise of any rights or remedies in respect of such Mortgage Loan or for
Buyer’s sale, pledge or other disposition of such Mortgage Loan. 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 Mortgage Loan. 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 Sellers is required for any transfer or assignment by the holder of such Mortgage Loan.

 

Schedule 1-A

 

    	 

    	 

    

(n)Legal, Valid
and Binding Obligation. The Mortgage Note and the related Mortgage are genuine, and each constitutes the legal, valid and binding
obligation of the maker thereof, enforceable in accordance with its terms in all material respects.

 

(o)Environmental
Matters. There is no pending action or proceeding directly involving the Mortgaged 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.

 

(p)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.

 

(q)Single-Premium
Credit Life Insurance.None of the proceeds of the Mortgage Loan were used to finance single-premium credit insurance policies.

 

(r)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.

 

(s)Appraisal.
The Servicing File contains an appraisal of the related Mortgaged Property which satisfied the standards of Fannie Mae and Freddie
Mac and was made and signed, prior to the approval of the Mortgage Loan application, 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, whose compensation
is not affected by the approval or disapproval of the Mortgage Loan and who met the minimum qualifications of Fannie Mae and Freddie
Mac. Each appraisal of the Mortgage Loan was made in accordance with the requirements of Title XI of the Federal Institutions Reform,
Recovery, and Enforcement Act of 1989 and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan
was originated.

 

Schedule 1-A

 

 

    	 

    	 

    

 

SCHEDULE 1-B

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO UNDERLYING REO PROPERTY

 

 

Each Seller makes the
following representations and warranties to Buyer with respect to each Underlying REO Property, as of the Purchase Date for the
purchase of any Underlying REO Property by Buyer from Sellers and as of the date of this Agreement and any Transaction hereunder
and at all times while the Facility Documents and any Transaction hereunder is in full force and effect. For purposes of this Schedule 1-B
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 a Underlying REO Property if and when a Seller has 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 REO Property. With respect
to those representations and warranties which are made to the best of any Seller’s knowledge, if it is discovered by any
Seller or Buyer that the substance of such representation and warranty is inaccurate, notwithstanding any Seller’s lack of
knowledge with respect to the substance of such representation and warranty, such inaccuracy shall be deemed a breach of the applicable
representation and warranty.

 

(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 a Bailee Letter and all information contained in the related Asset File (or as otherwise
provided to Buyer) in respect of such Underlying REO Property is accurate and complete in all material respects. To the extent
that an REO Deed has been sent out for recording, a copy will be contained in the Asset File within a period of sixty (60) days
from the date the related Mortgage Loan became an Underlying REO Property.

 

(b)Ownership.
The applicable REO Subsidiary is the sole owner and holder of the Underlying REO Property and the Servicing Rights related thereto;
provided that with respect to Unrecorded REO Property, the holder of record title in the Underlying REO Property may be a Seller,
Servicer, or any prior owner or prior servicer for whom Servicer is contractually permitted to act. No REO Subsidiary has assigned
or pledged the Underlying REO Property or the related Servicing Rights.

 

(c)Underlying
REO Property as Described. The information set forth in the Asset Schedule accurately reflects information contained in such
Seller Party’s records in all material respects. All information contained in the related Asset File in respect of the Underlying
REO Property is accurate and complete 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 Underlying
REO Property, there is no litigation, proceeding or governmental investigation pending, or any order, injunction or decree outstanding,
existing with respect to the Underlying REO Property that would materially and adversely affect the value of the Underlying REO
Property.

 

Schedule 1-B

 

    	 

    	 

    

 

(f)Hazard Insurance.
All buildings or other customarily insured improvements upon the Underlying 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 Underlying 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 Underlying 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)No Mechanics’
Liens. There are no mechanics’ or similar liens or claims which have been filed for work, labor or material affecting
the related Underlying REO Property.

 

(i)No Damage.
The Underlying REO Property is undamaged by water, fire, earthquake, earth movement, windstorm, flood, tornado, defective construction
materials or work, or similar casualty which would cause such Underlying REO Property to become uninhabitable.

 

(j)No Condemnation.
There is no proceeding pending, or threatened, for the total or partial condemnation of the Underlying REO Property.

 

(k)Environmental
Matters. There is no pending action or proceeding directly involving the Underlying REO Property in which compliance with any
environmental law, rule or regulation is an issue.

 

(l)Location and
Type of Underlying REO Property. Each Underlying 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 Underlying REO Property is a manufactured home.

 

(m)Recordation.
The original REO Deed is in recordable form, acceptable in all respects for recording under the laws of the jurisdiction in which
the Underlying REO Property is located and, upon contribution of such Underlying REO Property to a REO Subsidiary, has been delivered
for recordation to the appropriate recording office in the name of such REO Subsidiary.

 

(n)No Consents.
Other than consents and approvals obtained as of the related Purchase Date or those already granted in the documents governing
such Underlying REO Property, no consent or approval by any Person is required in connection with a REO Subsidiary’s acquisition
of such Underlying REO Property, for Buyer’s exercise of any rights or remedies in respect of such Underlying REO Property
or for Buyer’s sale, pledge or other disposition of such Underlying REO 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
Underlying REO 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 Seller Parties is required for any transfer or
assignment by the holder of such Underlying REO Property.

 

Schedule 1-B

 

    	 

    	 

    

 

(o)No Fraudulent
Acts. No fraudulent acts were committed by Seller Parties in connection with the acquisition or origination of such Underlying
REO Property nor were any fraudulent acts committed by any Person in connection with the origination of such Underlying REO Property.

 

(p)Acquisition
of REO Property. With respect to each such Underlying REO Property, (i) such Underlying REO Property is a Mortgaged Property
acquired by a REO Subsidiary through foreclosure or by deed in lieu of foreclosure or otherwise, which was, prior to such foreclosure
or deed in lieu of foreclosure, subject to the lien of a Purchased Mortgage Loan, and (ii) with respect to each such Underlying
REO Property, upon the consummation of the related Transaction, Custodian shall have received the related Asset File 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.

 

(q)No Occupants.  No tenant or other party has any right to occupy or is currently occupying
any Underlying REO Property.  Other than with respect to a Underlying REO Property as to which the redemption period has not
yet expired or the eviction process has not yet been completed, no holdover borrower has any right to occupy or is currently occupying
any Underlying REO Property.  

 

 

 

 

 

 

Schedule 1-B

 

 

    	 

    	 

    

 

 

SCHEDULE 1-C

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO REO SUBSIDIARY INTERESTS

 

Each Seller makes the
following representations and warranties to Buyer with respect to the REO Subsidiary Interests, as of the Purchase Date for the
pledge of the REO Subsidiary Interests by Buyer from Sellers and as of the date of this Agreement and any Transaction hereunder
and at all times while the Facility Documents and any Transaction hereunder is in full force and effect. For purposes of this Schedule 1-C
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 a Seller has 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. With respect
to those representations and warranties which are made to the best of any Seller’s knowledge, if it is discovered by any
Seller or Buyer that the substance of such representation and warranty is inaccurate, notwithstanding any Seller’s lack of
knowledge with respect to the substance of such representation and warranty, such inaccuracy shall be deemed a breach of the applicable
representation and warranty.

 

(a)Ownership.
The REO Subsidiary Interests constitute all the issued and outstanding beneficial interests of all classes of the Capital Stock
of each REO Subsidiary and are certificated.

 

(b)Compliance
with Law. Each REO Subsidiary Interest complies in all respects with, or is exempt from, all applicable requirements of federal,
state or local law relating to such REO Subsidiary Interest.

 

(c)Good and Marketable
Title. Immediately prior to the pledge to Buyer thereof, PMC and/or POP have good and marketable title to, and are the sole
owners and holders of, the REO Subsidiary Interests, and are transferring such REO Subsidiary Interests free and clear of any and
all liens, pledges, encumbrances, charges, security interests or any other ownership interests of any nature encumbering such REO
Subsidiary Interests, except as set forth in the Facility Documents. Upon consummation of the pledge contemplated to occur in respect
of such REO Subsidiary Interests, PMC will have validly and effectively granted to Buyer a security interest in all legal and beneficial
interest in and to such REO Subsidiary Interests free and clear of any pledge, lien, encumbrance or security interest (except as
set forth in the Facility Documents) and upon the filing of a financing statement covering the REO Subsidiary Interests in the
State of Delaware and naming PMC and/or POP as debtor and Buyer as secured party, the Lien granted pursuant to this Agreement will
constitute a valid, perfected first priority Lien on the REO Subsidiary Interests in favor of Buyer enforceable as such against
all creditors of PMC and POP and any Persons purporting to purchase the REO Subsidiary Interests from PMC or POP.

 

(d)No Fraud.
No fraudulent acts were committed by PMC or any of its Affiliates in connection with the issuance of such REO Subsidiary Interests.

 

Schedule 1-C

 

    	 

    	 

    

 

(e)No Defaults.
No (i) monetary default, breach or violation exists with respect to any agreement or other document governing or pertaining to
such REO Subsidiary Interests, (ii) non-monetary default, breach or violation exists with respect to such REO Subsidiary Interests,
or (iii) event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute
a default, breach or violation of such REO Subsidiary Interests.

 

(f)No Modifications.
Except for the Facility Documents, PMC is not a party to any document, instrument or agreement, and there is no document, that
by its terms modifies or affects the rights and obligations of any holder of any REO Subsidiary Interests and PMC has not consented
to any material change or waiver to any term or provision of any such document, instrument or agreement and no such change or waiver
exists.

 

(g)Power and Authority.
PMC and POP have full right, power and authority to sell and assign such REO Subsidiary Interests, as applicable, and such REO
Subsidiary Interests have not been cancelled, satisfied or rescinded in whole or part nor has any instrument been executed that
would effect a cancellation, satisfaction or rescission thereof.

 

(h)Consents and
Approvals. Other than consents and approvals obtained as of the related Purchase Date or those already granted in the documents
governing such REO Subsidiary Interests, no consent or approval by any Person is required in connection with PMC’s and POP’s
pledge and Buyer’s lien upon such REO Subsidiary Interests, for Buyer’s exercise of any rights or remedies in respect
of such REO Subsidiary Interests or for Buyer’s sale, pledge or other disposition of such REO Subsidiary Interests. 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 REO Subsidiary Interests.

 

(i)No Governmental
Approvals. 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 PMC is required for any transfer or assignment by the holder of
such REO Subsidiary Interests to the Buyer.

 

(j)Original Certificates.
PMC and POP have delivered to Buyer or Custodian the original certificate or other similar indicia of ownership of such REO Subsidiary
Interests, however denominated, reissued in Buyer’s name (it being understood that such reissuance in Buyer’s name
is for the sole purpose of perfecting Buyer’s security interest in the REO Subsidiary Interests (by means of “control”
under Section 8-106(b)(2) of the Uniform Commercial Code) and to otherwise exercise its rights under this Agreement.

 

(k)No Litigation.
PMC has not received written notice of any outstanding liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind for which the holder of such REO Subsidiary Interests is or may become obligated.

 

(l)Duly and Validly
Issued. Each of the REO Subsidiary Interests has been duly and validly issued .

 

Schedule 1-C

 

    	 

    	 

    

 

(m)No Notices.
PMC has not received written notice of any outstanding liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind for which the holder of such REO Subsidiary Interests is or may become obligated.

 

(n)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).

 

(o)Asset File.
All documents required to be delivered as part of the Asset File, 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 REO Subsidiary Interest is accurate and complete
in all material respects.  

 

(q) with Separateness
Covenants. Since its formation, each REO Subsidiary has complied with all separateness covenants set forth in Section 13(aa),
except that Legacy REO Subsidiary entered into Indebtedness with RBS pursuant to the Master Repurchase Agreement, dated February
18, 2014, among RBS, PMC, PMH and POP, which on or prior to the Purchase Date has been paid in full and all written releases by
RBS of the Legacy REO Subsidiary have been received.

 

 

Schedule 1-C

 

 

    	 

    	 

    

 

SCHEDULE 1-D

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO UNDERLYING REPURCHASE TRANSACTIONS

 

PMC makes the following
representations and warranties to Buyer with respect to the Underlying Repurchase Transactions, as of the date of the Underlying
Repurchase Transaction and as of each Purchase Date and at all times while the Facility Documents and any Underlying Repurchase
Transaction is in full force and effect. For purposes of this Schedule 1-D 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
Transactions if and when a Seller has 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. With respect to those representations and
warranties which are made to the best of any Seller’s knowledge, if it is discovered by any Seller or Buyer that the substance
of such representation and warranty is inaccurate, notwithstanding any Seller’s lack of knowledge with respect to the substance
of such representation and warranty, such inaccuracy shall be deemed a breach of the applicable representation and warranty.

 

(a)Validity of
Underlying Repurchase Documents. The Underlying Repurchase Documents and any other agreement executed and delivered by PMC
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. POP and PMC had legal capacity to enter into the Underlying
Repurchase Transaction and PMC 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 POP or PMC are parties have been duly and
properly executed by POP and PMC, as applicable. The Underlying Repurchase Documents to which PMC is a party constitute legal,
valid, binding and enforceable obligations of PMC. 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 PMC.

 

(b)Original Terms
Unmodified. Except to the extent approved in writing by Buyer, neither the terms of the Underlying Repurchase Documents nor
the terms of the Underlying Repurchase Transactions have been (i) materially amended, modified, supplemented or restated or (ii)
amended, modified, supplemented or restated in any manner that would affect the Buyer’s rights hereunder or under any other
Facility Document (including without limitation Buyer’s rights to the Purchased Mortgage Loans or REO Subsidiary Interests
that are Underlying Repurchase Assets) or (iii) amended, modified, supplemented or restated in any manner that could call in question
whether a Transaction in respect of any Underlying Repurchase Assets is a “repurchase agreement” as that term is defined
in Section 101(47)(A)(i) of Title 11 of the United States Code or a “master netting agreement” as that term is
defined in Section 101(38A)(A) of Title 11 of the United States Code.

 

(c)No Defenses.
The Underlying Repurchase Transaction 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 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-D

 

    	 

    	 

    

 

(d)No Bankruptcy.
PMC is not a debtor in any state or federal bankruptcy or insolvency proceeding. PMC 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 PMC’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, truth-in-lending, real estate settlement procedures, consumer credit protection, equal credit opportunity and disclosure
laws and unfair and deceptive practices laws applicable to the Underlying Repurchase Transaction have been complied with, the consummation
of the transactions contemplated hereby will not involve the violation of any such laws or regulations, and POP 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, POP has not waived the performance by PMC of any action under the Underlying
Repurchase Documents, if PMC’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 POP waived any such default resulting
from any action or inaction by PMC.

 

(g)No Defaults.
There is no default, breach, violation or event which would permit acceleration existing under the Underlying Repurchase Documents
and no event 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 which would permit acceleration, and neither POP nor any of its affiliates nor any of their
respective predecessors, have waived any default, breach, violation or event which would permit acceleration; and all maintenance
charges and assessments (including assessments payable in the future installments, which previously became due and owing) have
been paid.

 

(h)Delivery of
Underlying Repurchase Documents. True and correct copies of the Underlying Repurchase Documents have been delivered to Buyer.

 

(i)Organization.
PMC has been duly organized and is validly existing and in good standing under the laws of the jurisdiction of its formation. PMC
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. PMC 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. PMC 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-D

 

    	 

    	 

    

 

(j)No Conflicts.
The execution, delivery and performance of the Underlying Repurchase Documents by PMC 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 PMC 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 PMC, and any qualification of or with any governmental authority required for the
execution, delivery, and performance by PMC of the Underlying Repurchase Documents has been obtained and is in full force and effect.

 

(k)Compliance.
PMC is in compliance in all material respects with all applicable legal requirements. PMC 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 PMC.

 

(l)Underlying
Repurchase Documents Not Assigned. No Underlying Repurchase Document is assigned to any third party. The Underlying Repurchase
Documents permit POP to sell, assign, pledge, transfer or rehypothecate the Mortgage Loans and all other collateral purchased by
POP 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 PMC’s creditors. PMC 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 PMC to become insolvent, (ii)
will not result in any property remaining with PMC to be unreasonably small capital, and (iii) will not result in debts that would
be beyond PMC’s ability to pay as same mature. PMC receives reasonably equivalent value in exchange for the transfer and
pledge of the Mortgage Loans in accordance with the Underlying Repurchase Documents.

 

(n)Ownership.
POP is the sole owner and holder of the underlying Mortgage Loan. The Mortgage Loans have not been assigned or pledged by POP other
than pursuant to this Agreement. POP has good, indefeasible and marketable title to the Mortgage Loans, and has full right to transfer,
pledge and assign the Mortgage Loans 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 pursuant to this Agreement, and following the transfer and pledge
of the Mortgage Loans, Buyer will hold such Mortgage Loans 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.

 

(o)Reserved.

 

Schedule 1-D

 

    	 

    	 

    

 

(p)No Plan Assets.
PMC 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 PMC 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 EO13224; (ii) whose name appears on the United States Treasury Department’s 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 PMC’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 POP (i) are true, complete, and correct in all material respects,
and (ii) accurately represent the financial condition of PMC as of the date of such reports.

 

(s)Mortgage Loans
Assignable; Buyer’s Security Interest. (i) The underlying Asset File and Underlying Repurchase Documents have been delivered
to Buyer and (ii) the UCC-1 Financing Statement naming PMC as debtor and POP as secured party and identifying the Mortgage Loans
as collateral has been filed in the applicable filing office.

 

(t)No
Custodial Arrangement. There is no agreement or arrangement with any third party to hold the Asset File pursuant to the Underlying
Repurchase Transaction.

 

(u)PMC Diligence.
POP has delivered to Buyer all information regarding PMC as Buyer has requested and such information is satisfactory to Buyer in
all material respects.

 

(v)Underlying
Repurchase Documents.

 

(i)The
Underlying Repurchase Agreement contains broad repledge, assignment and rehypothecation provisions in favor of POP permitting POP
to sell, transfer and assign to Buyer hereunder, without restriction or rights to consent by PMC or any other Person, all of POP’s
right, title and interest in Underlying Repurchase Assets purchased by POP thereunder;

 

(ii)The
Underlying Repurchase Agreement contains a back-up grant of security interest in each related Underlying Repurchase Asset subject
to an Underlying Repurchase Transaction to POP, similar in form and substance to the security interest granted to Buyer in Section 8
of the Agreement, and the repurchase agreement or an ancillary document thereto provides for a provision or instruction that the
Asset File in respect of such Underlying Repurchase Asset be delivered by PMC directly to Buyer or Buyer’s designee (which
may be the Custodian);

 

Schedule 1-D

 

    	 

    	 

    

 

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

 

(iv)The
Underlying Repurchase Agreement contains grants to POP and Buyer the right to immediately terminate PMC’s right or any third
party servicer’s right to service the Underlying Repurchase Assets subject to an Underlying Repurchase Transaction;

 

(v)The
Underlying Repurchase Agreement contains requirements that (A) each 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 Underlying Repurchase Assets that are Mortgage Loans and in accordance with Accepted Servicing Practices and (B)
each Underlying Repurchase Asset that is a Mortgage Loan is sold on a “servicing-released” basis;

 

(vi)The
Underlying Repurchase Agreement requires that all Income with respect to the Underlying Repurchase Assets to be promptly remitted
to the Collection Account or the applicable Certificate Distribution Account, as applicable; and

 

(vii)The
Underlying Repurchase Documents are a “repurchase agreement” and a “master netting agreement” within the
meaning of Sections 559, and 561, respectively, of the Bankruptcy Code and Buyer shall have received copies of opinions of counsel
with respect to such matters.

 

Schedule 1-D

 

    	 

    	 

    

 

SCHEDULE II

 

AUTHORIZED REPRESENTATIVES

SELLER PARTY NOTICES

	Name: Pamela Marsh/Kevin Chamberlain	
         

        Address: 6101 Condor Drive

                          Moorpark, CA 93021

        

        

        

	Telephone:(805) 330-6059/(818) 746-2877
	Email:pamela.marsh@pnmac.com;
	           kevin.chamberlain@pnmac.com

SELLER PARTY AUTHORIZATIONS

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

	
        Name
	
        Title
	
        Signature

	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule II

 

    	 

    	 

    

 

 

GUARANTOR NOTICES

	Name: Pamela Marsh/Kevin Chamberlain	
         

        Address: 6101 Condor Drive

                          Moorpark, CA 93021

        

        

        

	Telephone:(805) 330-6059/(818) 746-2877
	Email:pamela.marsh@pnmac.com;
	          kevin.chamberlain@pnmac.com

GUARANTOR AUTHORIZATIONS

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

	
        Name
	
        Title
	
        Signature

	 	 	 

 

 

 

 

 

 

 

 

Schedule II

 

    	 

    	 

    

 

 

BUYER NOTICES

	Name:Jonathan Davis	
         

        Address:JPMorgan Chase Bank,
        National Association

        383 Madison Avenue, 31st Floor

        New York, New York 10179

	Title:Executive Director
	Telephone:(212) 834-3850
	Facsimile:(917) 464-4160

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

	
        Jonathan Davis

         
	
        Executive Director

         
	 
	
        John Winchester

         
	
        Executive Director

         
	 
	Seth Fenton	
        Vice President

         
	 

 

 

 

 

 

 

 

 

 

Schedule II

    	 

    	 

    

 

EXHIBIT A

 

FORM OF CONFIRMATION LETTER

 

	
        JPMorgan Chase Bank, National Association

        383 Madison Avenue, 31st Floor

        New York, New York 10179

        Attention: Jonathan Davis

        Confirmation No.:_____________________

         
	________  __, _____

 

Ladies/Gentlemen:

 

This letter confirms our
oral agreement to purchase from you the Mortgage Loans listed in Appendix I hereto, pursuant to the Master Repurchase Agreement
governing purchases and sales of Mortgage Loans between us, dated as of January 27, 2015 (the “Agreement”),
as follows:

 

Purchase [Price Increase]
Date: ________ __, _____

 

Mortgage Loans
and REO Properties to be subject to a Transaction: See Appendix I hereto.

[Appendix I to Confirmation
Letter will list Mortgage Loans and REO Properties]

 

[Purchase Price Increase:]

 

Aggregate Principal Amount
of [Purchased Mortgage Loans][Underlying REO Property]:

 

Asset Value:

 

Purchase Price:

 

Pricing Spread:

 

Repurchase Date:

 

Repurchase Price:

 

Names and addresses for
communications:

 

Buyer:

JPMorgan Chase Bank, National Association

383 Madison Avenue, 31st Floor

New York, New York 10179

Attention: Jonathan Davis

 

 

Exhibit A

    	 

    	 

    

 

Seller:

[PennyMac Corp.]

[PennyMac Operating Partnership, L.P.]

[PennyMac Holdings, LLC]

6101 Condor Drive

Moorpark, CA 93021

Attention: Pamela Marsh/Kevin Chamberlain

 

Agreed and Acknowledged:

 

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

 

By:____________________________________

       Name:

       Title:

 

[PENNYMAC CORP.][PENNYMAC OPERATING

PARTNERSHIP, L.P.][PENNYMAC HOLDINGS,
LLC]

 By:____________________________________ 
       Name:
        Title:

 

Exhibit A

    	 

    	 

    

 

EXHIBIT B

RESERVED

 

 

 

 

 

 

 

 

 

 

Exhibit B

    	 

    	 

    

 

EXHIBIT C

 

SELLERS’ AND GUARANTOR’S TAX
IDENTIFICATION NUMBER

 

 

PennyMac Corp. – 80-0463416

 

PennyMac Holdings, LLC – 27-2199755

 

PennyMac Operating Partnership, L.P. – 27-0214441

 

PennyMac Mortgage Investment Trust – 27-0186273

 

 

Exhibit C

    	 

    	 

    

 

EXHIBIT D

 

EXISTING INDEBTEDNESS

See Attached.

 

 

 

Exhibit D

    	 

    	 

    

 

 

 

EXHIBIT E

 

RESERVED

 

 

 

 

 

Exhibit E 

    	 

    	 

    

 

 

EXHIBIT F

 

RESERVED

 

 

 

 

 

 

 

Exhibit F

    	 

    	 

    

 

EXHIBIT G

 

RESERVED

 

 

 

 

 

 

 

 

 

 

Exhibit G

    	 

    	 

    

 

EXHIBIT H

 

RESERVED

 

 

 

 

 

 

 

 

 

 

Exhibit H

    	 

    	 

    

 

EXHIBIT I

FORM OF SECTION 7 CERTIFICATE

 

Reference is hereby made
to the Repurchase Agreement dated as of January 27, 2015 (as amended, restated, supplemented or otherwise modified from time to
time, the “Agreement”), among PennyMac Corp., PennyMac Operating Partnership, L.P., PennyMac Holdings, LLC (each
individually, a “Seller”, and collectively the “Sellers”), PMC REO Trust 2015-1 (“New
REO Subsidiary”), TRS REO Trust 1-A (“Legacy REO Subsidiary” and together with New REO Subsidiary,
each an “REO Subsidiary” and collectively, “REO Subsidiaries”), PennyMac Mortgage Investment
Trust (“Guarantor”) and JPMorgan Chase Bank, National Association (the “Buyer”). Pursuant
to the provisions of Section 7 of the Agreement, the undersigned hereby certifies that:

 

1. It is a ___ natural
individual person, ____ treated as a corporation for U.S. federal income tax purposes, ____ disregarded for federal income tax
purposes (in which case a copy of this Section 7 Certificate is attached in respect of its sole beneficial owner), or ____
treated as a partnership for U.S. federal income tax purposes (one must be checked).

 

2. It is the beneficial
owner of amounts received pursuant to the Agreement.

 

3. It is not a bank, as
such term is used in section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”),
or the Agreement is not, with respect to the undersigned, a loan agreement entered into in the ordinary course of its trade
or business, within the meaning of such section.

 

4. It is not a 10-percent
shareholder of any Seller within the meaning of section 871(h)(3) or 881(c)(3)(B) of the Code.

 

5. It is not a controlled
foreign corporation that is related to any Seller within the meaning of section 881(c)(3)(C) of the Code.

 

6. Amounts paid to it under
the Facility Documents (as defined in the Agreement) are not effectively connected with its conduct of a trade or business in the
United States.

 

	 	[NAME OF UNDERSIGNED]
	 	 
	 	By: ________________________
	 	 
	 	Title: _______________________
	 	 
	Date: _______________, ______	 

 

 

Exhibit I

    	 

    	 

    

 

 

EXHIBIT J

 

ASSET SCHEDULE FIELDS

 

 

	 	Loan Origination & Current Data
	1	Loan ID
	2	Cut Off Date
	3	Rate Type (Fixed, Adjustable)
	4	Original Balance
	5	Current Balance (Clarify Forebearance Amt)
	6	Current Interest Rate
	7	Original Interest Rate
	8	Property Valuation @ Origination
	9	Original LTV
	10	Original CLTV
	11	Current Property Value
	12	Current Property Value Date
	13	Current Property Value Type
	14	Purchase Price
	15	Original PandI
	16	Current PandI
	17	Property Address
	18	Property City
	19	Property State
	20	Property Zipcode
	21	Property Type
	22	Units
	23	Current FICO
	24	Current FICO Date
	25	Original FICO
	26	Maturity Date
	27	Origination Date
	28	First Payment Date
	29	Lien Position
	30	Mortgage Insurance Provider
	31	MI Coverage Amount
	32	Original Occupancy
	33	Original Term
	34	Original Amortization Term
	35	Original Loan Purpose

 

 

Exhibit J

    	 

    	 

    

 

	36	Negam Flag
	37	Interest Only Flag
	38	Interest Only Term
	39	Documentation Type
	40	Prepay Term
	41	Balloon Date
	 	Adjustable Rate Only Data
	42	Arm Margin
	43	Periodic Rate Cap
	44	Initial Periodic Cap
	45	Arm Index 
	46	Arm Rate Ceiling
	47	Arm First Rate Adjust Date
	48	Arm First Pay Adjust Date
	49	Arm Next Pay Adjst Date
	50	Arm Next Rate Adjust Date
	51	Arm Reset Frequency
	52	Arm Life Floor
	 	 
	 	Delinquency Data
	53	Status (Current, 30, 60, 90+, Bk, FC, REO)
	54	Next Due Date
	55	Paid Through Date
	56	DQ String (e.g., 000001001000)
	57	Times 30 in 12 Months
	58	Times 60 in 12 Months
	59	Times 90 in 12 Months
	 	 
	 	Modification Data
	60	Modification Balance
	61	Current Product Type (Arm IO Step, Fix IO Step, Etc.)
	62	Modification Step Rate Flag
	63	Modification Step Terms
	64	Modification Step Dates
	65	Modified First Payment Date
	66	Modified Maturity Date
	67	Modification Date
	68	Modification Original Term
	69	Modification Amortization Term
	70	Modified Interest Only Term
	71	Modification Type (MHA, Rate Reduction, Proprietary, etc.)

 

 

Exhibit J

    	 

    	 

    

 

	72	Forebearance or Deferred Balance
	73	Balance Subject to Forgiveness (if applicable)
	74	Modification Capitalized Amount
	75	Conditional Terms of Forgiveness
	76	Modification Arm Margin
	77	Modification Periodic Rate Cap
	78	Modification Initial Periodic Cap
	79	Modification Arm Index 
	80	Modification Arm Rate Ceiling
	81	Modification Arm Next Rate Adjust Date
	82	Modification Arm Reset Frequency
	83	Modification Arm Life Floor
	 	 
	 	Loss Mitigation Data
	84	Bk Flag
	85	Bk Chapter
	86	Bk Relief Filing Date
	87	Bk Relief Granted Date
	88	Bk Removal Date
	89	Bk Post Petition Due Date
	90	Bk Removal Reason
	91	FC Flag
	92	FC Referral Date
	93	FC Judgement Date
	94	FC Suspense Date
	95	FC Suspense Reason
	96	FC Removal Date
	97	FC Removal Reason
	98	FC Sale Scheduled Date
	99	FC Sale Date
	100	REO Flag
	101	REO Date
	102	REO Eviction Date
	103	Escrow Advance Balance
	104	Corporate Advance Balance
	105	Vacancy Flag
	106	Short Sale Status (Solicited, Sale Pending)
	107	Known Mechanic or Other Liens

 

 

Exhibit J

    	 

    	 

    

 

EXHIBIT K

 

RESERVED

 

 

 

 

 

 

 

 

 

 

Exhibit K

    	 

    	 

    

 

EXHIBIT L

 

FORM OF SERVICER NOTICE AND PLEDGE

 

[Date]

[________________], as Servicer

[ADDRESS]

Attention: ___________

 

	Re:		Master Repurchase Agreement, dated as of January 27, 2015 (the “Repurchase
Agreement”), by and among PennyMac Corp. (“PMC”), PennyMac Operating Partnership, L.P. (“POP”),
PennyMac Holdings, LLC (“PMH”, and together with POP and PMC, each individually, a “Seller”,
and collectively the “Sellers”), PMC REO Trust 2015-1 (“New REO Subsidiary”), TRS REO Trust
1-A (“Legacy REO Subsidiary” and together with New REO Subsidiary, each an “REO Subsidiary”
and collectively, “REO Subsidiaries”), PennyMac Mortgage Investment Trust (the “Guarantor”)
and JPMorgan Chase Bank, National Association (the “Buyer”).

 

Ladies and Gentlemen:

 

Pursuant to the Repurchase
Agreement, Servicer is hereby notified that Sellers have conveyed and pledged to Buyer certain Mortgage Loans the beneficial ownership
of which are then pledged to Buyer under the Repurchase Agreement (the “Mortgage Loans”) and the REO properties
the beneficial ownership of which are then pledged to Buyer under the Repurchase Agreement (the “REO Properties”),
which are serviced by [_________________] (the “Servicer”) pursuant to that certain Servicing Agreement dated
as of [_________, 20__], by and among the Servicer, the Sellers and the REO Subsidiaries (as amended, modified or otherwise supplemented
from time to time, the “Servicing Agreement”). Capitalized terms used herein but not herein defined shall have
the meanings ascribed thereto in the Repurchase Agreement.

 

Section 1. Servicing
Rights and Grant of Security Interest. (a) Servicer acknowledges that the Mortgage Loans and REO Properties are being serviced
on a servicing released basis. In the event that Servicer is deemed to retain any rights to servicing, Buyer and Servicer hereby
agree that in order to further secure the Sellers’ and REO Subsidiaries’ Obligations under the Repurchase Agreement,
Servicer hereby grants, assigns and pledges to Buyer a fully perfected first priority security interest in all its rights to service
(if any) related to the 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 (the “Servicing Assets”).

 

(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 Section 741(7)(A)(xi) and 101(47)(A)(v) of the Bankruptcy Code.

 

Exhibit L

    	 

    	 

    

 

(c)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, Servicer hereby authorizes Buyer to file financing statements relating to the security interest set
forth herein, as Buyer, at its option, may deem appropriate.

 

(d)Servicer waives any and all notice
of the creation, renewal, extension or accrual of any of the Obligations under the Repurchase Agreement and notice or proof of
reliance by Buyer upon this side letter (the “Servicer Notice and Pledge”). Servicer hereby waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to or upon Sellers with respect the Obligations.

 

(e)Buyer shall have all rights and
remedies against Servicer and the Servicing Assets as set forth herein, and the Servicing Assets shall be considered for all purposes
Repurchase Assets under the Repurchase Agreement and Buyer shall have all rights and remedies under the Repurchase Agreement with
respect to the Servicing Assets, which are incorporated by reference herein.

 

Section 2.Notice
of Default. (a) The Servicer shall segregate all amounts collected on account of such Mortgage Loans
and REO Properties, hold them in trust for the sole and exclusive benefit of Buyer, and remit such collections within two (2) Business
Days after receipt in accordance with the below instructions. Servicer shall follow the instructions of Buyer with respect to the
Mortgage Loans and REO Properties, and shall deliver to Buyer any information with respect to the Mortgage Loans and REO Properties
reasonably requested by Buyer. Sellers and REO Subsidiaries hereby notify and instruct the Servicer and the Servicer is hereby
authorized and instructed to remit any and all amounts which would be otherwise payable to Sellers with respect to the Mortgage
Loans and/or REO Property to the following account which instructions are irrevocable without the prior written consent of Buyer:

 

For all Income other than Liquidation
Proceeds with respect to Liquidated REO Property:

 

[COLLECTION ACCOUNT]

 

For all Income that is Liquidation
Proceeds with respect to Liquidated REO Property:

 

[EACH CERTIFICATE DISTRIBUTION
ACCOUNT]

 

(b)Upon written notice
following the occurrence and during the continuance of an Event of Default, Buyer shall have the right to (a) redirect the Servicer
to remit funds in accordance with Buyer’s instructions and (b) immediately terminate Servicer’s right to service the
Mortgage Loans and REO Properties without payment of any penalty or termination fee under the Servicing Agreement. Upon receipt
of such notice, Sellers and the Servicer shall cooperate in transferring the applicable servicing of the Mortgage Loans and REO
Properties to a successor servicer appointed by Buyer in its sole discretion.

 

 

Exhibit L

    	 

    	 

    

 

(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 Sellers 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.

 

(d)Buyer shall be an
intended third-party beneficiary of the Servicing Agreement, and the parties thereto shall not amend such Servicing Agreement without
the consent of Buyer, which may be granted or withheld in its sole discretion.

 

(e)Concurrently with
the delivery of any remittance report to the Sellers, the Servicer shall also deliver a copy of such remittance report to the Buyer.

 

Section 3.Counterparts.
This Servicer Notice and Pledge may be executed in any number of counterparts, all of which taken together shall constitute one
and the same instrument, and any of the parties hereto may execute this Servicer Notice and Pledge by signing any such counterpart.

 

Section 4.Entire
Agreement. This Servicer Notice and Pledge and the other Facility Documents embody the entire agreement and understanding
of the parties hereto and thereto and supersede any and all prior agreements, arrangements and understandings relating to the matters
provided for herein and therein. No alteration, waiver, amendments, or change or supplement hereto shall be binding or effective
unless the same is set forth in writing by a duly authorized representative of each party hereto.

 

Section 5.Governing
Law; Jurisdiction; Waiver of Trial by Jury. (a) THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW
YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF, OTHER THAN SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW, WHICH SHALL GOVERN.

 

(b)EACH PARTY HERETO HEREBY IRREVOCABLY
AND UNCONDITIONALLY:

 

(i)SUBMITS FOR ITSELF AND ITS PROPERTY
IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS SERVICER NOTICE AND PLEDGE AND/OR ANY OTHER FACILITY DOCUMENT, OR FOR RECOGNITION
AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK,
THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;

 

Exhibit L

    	 

    	 

    

 

(ii)CONSENTS THAT ANY SUCH ACTION OR PROCEEDING
MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT
AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

 

(iii)AGREES THAT SERVICE OF PROCESS IN
ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR
FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH IN THE REPURCHASE AGREEMENT OR AT SUCH OTHER ADDRESS OF WHICH BUYER SHALL
HAVE BEEN NOTIFIED; AND

 

(iv)AGREES THAT NOTHING HEREIN SHALL AFFECT
THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

 

(c)EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS SERVICER NOTICE AND PLEDGE, ANY OTHER FACILITY DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY.

 

 

 

 

 

 

 

 

 

Exhibit L

    	 

    	 

    

 

 

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 address: JPMorgan Chase Bank, National Association, [ADDRESS], Attention: [____], Telephone:
[____], Facsimile: [____].

 

 

	 	
        Very truly yours,

         

        [SELLER]

         

        By:_______________________________________

        Name:

        Title:

         

         

        ACKNOWLEDGED:

         

        JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

         

        By: ___________________________________

        Name:

        Title:

         

        [SERVICER],

        as Servicer

         

        By:____________________________________

        Title:

        Telephone:

        Facsimile:

         

 

Exhibit L

    	 

    	 

    

 

EXHIBIT M

 

FORM POWER OF ATTORNEY

 

 

 

KNOW ALL MEN BY THESE
PRESENTS, that [________________] (“[Seller][REO Subsidiary]”) hereby irrevocably constitutes and appoints JPMorgan
Chase Bank, National Association (“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][REO Subsidiary]
and in the name of [Seller][REO Subsidiary] or in its own name, from time to time in Buyer’s discretion:

 

(a)in the name of
[Seller][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 Master Repurchase
Agreement (as amended, restated or modified) dated January 27, 2015 (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][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 [Seller’s][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 Buyer’s Liens thereon and to effect the intent of this Agreement, all as fully and effectively as [Seller][REO
Subsidiary] might do;

 

(d)for the purpose
of carrying out the transfer of servicing with respect to the Assets from [Seller][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,
[Seller][REO Subsidiary] hereby gives Buyer the power and right, on behalf of [Seller][REO Subsidiary], without assent by [Seller][REO
Subsidiary], to, in the name of [Seller][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 M

    	 

    	 

    

 

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

 

[Seller][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.

 

[Seller][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 [Seller][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, [SELLER][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 M

    	 

    	 

    

 

IN WITNESS WHEREOF
[Seller][REO Subsidiary] has caused this power of attorney to be executed and [Seller’s][REO Subsidiary’s] seal to
be affixed this __ day of _____, 20__.

 

 

 

	 	
        [PENNYMAC CORP.]

         

        [PENNYMAC OPERATING PARTNERSHIP, L.P.][PENNYMAC
        HOLDINGS, LLC][PMC REO TRUST 2015-1][TRS REO TRUST 1-A]

        ([Seller][REO Subsidiary])

         

        By:____________________________________

        Name:

        Title:

         

         

         

 

 

 

 

 

Exhibit M

    	 

    	 

    

 

Acknowledgment of Execution
by [Seller][REO Subsidiary] (Principal):

 

 

 

	STATE OF __________  	)
	 	)     ss.:
	COUNTY OF ________ 	)

 

 

On the __ day of ________,
20__ before me, the undersigned, a Notary Public in and for said State, personally appeared _____________________, personally known
to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity as _________ for [PennyMac Corp.][PennyMac Operating Partnership,
L.P.][PennyMac Holdings, LLC][PMC REO Trust 2015-1][TRS REO Trust 1-A] and that by his signature on the instrument, the person
upon behalf of which the individual acted, executed the 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 M

    	 

    	 

    

 

EXHIBIT N

FORM REPURCHASE REQUEST

 

	[CLIENT
    NAME]	 
	[CLIENT PHONE #]	 [CLIENT ADDRESS]

 

 

 

REPURCHASE REQUEST 

 

 

 

[DATE]

 

J.P. Morgan Chase Bank, N.A.

500 Stanton Christiana Road, OPS2

Newark, Delaware 19713

Attention: Sophia Redzaj

Telecopier No.: (302) 504-8969

Telephone No.: (302) 634-1381

Email: spg_mf_team@jpmorgan.com

 

 

 

Please debit acct# _________________ to repurchase at the Repurchase
Price the following loans.

 

	Loan Number	Borrower Name	Repurchase Price	  Investor Name	Wire Amount
	 	 	 	 	 

* See Attached List *

 

 

 

Please move excess amount to acct# __________________.

 

 

Should you have any questions, please call [CLIENT CONTACT NAME]
at [CLIENT CONTACT PHONE # / EXT.]

 

 

Thank you for your assistance.

 

 

 

[CLIENT NAME]

 

 

 

 

 

______________________________________

[AUTHORIZED OFFICER NAME]

[AUTHORIZED OFFICER TITLE]

 

 

 

Exhibit NExhibit 10.2

 

GUARANTY

 

GUARANTY, dated as of
January 27, 2015 (as amended, restated, supplemented, or otherwise modified from time to time, this “Guaranty”),
made by PennyMac Mortgage Investment Trust, a Maryland real estate investment trust (the “Guarantor”), in favor
of JPMorgan Chase Bank, National Association (the “Buyer”).

 

RECITALS

 

Pursuant to the Master
Repurchase Agreement, dated as of January 27, 2015 (as amended, restated, supplemented or otherwise modified from time to time,
the “Repurchase Agreement”), among PennyMac Corp. (“PMC”), PennyMac Operating Partnership,
L.P. (“POP”), PennyMac Holdings, LLC (“PMH”, and together with PMC and POP, each individually,
a “Seller”, and collectively the “Sellers”), PMC REO Trust 2015-1 (“New REO Subsidiary”),
TRS REO Trust 1-A (“Legacy REO Subsidiary” and together with New REO Subsidiary, each an “REO Subsidiary”
and collectively, “REO Subsidiaries”), the Guarantor and the Buyer, the Buyer has agreed from time to time to
enter into transactions with Sellers upon the terms and subject to the conditions set forth therein. It is a condition precedent
to the obligation of the Buyer to enter into Transactions with the Sellers under the Repurchase Agreement that the Guarantor shall
have executed and delivered this Guaranty to the Buyer.

 

Now, therefore, in consideration
of the premises and to induce the Buyer to enter into the Repurchase Agreement and engage in Transactions with the Sellers, and
for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Guarantor hereby agrees
to guarantee each Seller’s obligations under the Repurchase Agreement, as may be amended from time to time.

 

1.              
Defined Terms.

 

(a)            
Unless otherwise defined herein, terms defined in the Repurchase Agreement and used herein shall have the meanings given
to them in the Repurchase Agreement.

 

(b)           
For purposes of this Guaranty, “Obligations” shall mean all obligations and liabilities of the Sellers
to the Buyer, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred,
or whether for payment or for performance (including, without limitation, Price Differential accruing after the Repurchase Date
for the Transactions and Price Differential accruing after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to any Seller, whether or not a claim for post filing or post petition
interest is allowed in such proceeding), which may arise under, or out of or in connection with the Repurchase Agreement, this
Guaranty and any other Facility Documents and any other document made, delivered or given in connection therewith or herewith,
whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including, without limitation,
all fees and disbursements of counsel to the Buyer that are required to be paid by the Sellers pursuant to the terms of such documents),
all “claims” (as defined in Section 101 of the Bankruptcy Code) of the Buyer against any Seller, or otherwise.

 

 

 

    	1

    	 

    

 

(c)            
The words “hereof,” “herein” and “hereunder” and words of similar import when used in
this Guaranty shall refer to this Guaranty as a whole and not to any particular provision of this Guaranty and section and paragraph
references are to this Guaranty unless otherwise specified.

 

(d)           
The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

2.              
Guarantee. (a) Guarantor hereby, unconditionally and irrevocably, guarantees to the Buyer and its successors, indorsees,
transferees and assigns, the prompt and complete payment and performance by any Seller when due (whether at the stated maturity,
by acceleration or otherwise) of the Obligations.

 

(b)           
Guarantor further agrees to pay any and all expenses (including, without limitation, all fees and disbursements of counsel)
which may be paid or incurred by the Buyer in enforcing, or obtaining advice of counsel in respect of, any rights with respect
to, or collecting, any or all of the Obligations and/or enforcing any rights with respect to, or collecting against, the Guarantor
under this Guaranty. This Guaranty shall remain in full force and effect until the later of (i) the termination of the Repurchase
Agreement or (ii) the Obligations are paid in full, notwithstanding that from time to time prior thereto a Seller may be free from
any Obligations.

 

(c)            
No payment or payments made by any Seller, the Guarantor, any other guarantor or any other Person or received or collected
by the Buyer from the Sellers, the Guarantor, any other guarantor or any other Person by virtue of any action or proceeding or
any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall
be deemed to modify, reduce, release or otherwise affect the liability of the Guarantor hereunder which shall, notwithstanding
any such payment or payments other than payments made by the Guarantor in respect of the Obligations or payments received or collected
from the Guarantor in respect of the Obligations, remain liable for the Obligations until the Obligations are paid in full and
the Repurchase Agreement is terminated, subject to the reinstatement provisions of Section 7 hereof.

 

(d)           
Guarantor agrees that whenever, at any time, or from time to time, Guarantor shall make any payment to the Buyer on account
of Guarantor’s liability hereunder, Guarantor will notify the Buyer in writing that such payment is made under this Guaranty
for such purpose.

 

3.              
Right of Set-off. Upon the occurrence of any Event of Default, Guarantor hereby irrevocably authorizes the Buyer
at any time and from time to time without notice to the Guarantor, any such notice being waived by the Guarantor, to set-off and
appropriate and apply any and all monies and other property of the Guarantor, deposits (general or special, time or demand, provisional
or final), in any currency, and any other 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 the Buyer or any Affiliate thereof to or for the credit
or the account of Guarantor, or any part thereof in such amounts as the Buyer may elect, against and on account of the Obligations
and liabilities of the Guarantor to the Buyer hereunder and claims of every nature and description of the Buyer against the Guarantor,
in any currency, whether arising hereunder or, under the Repurchase Agreement, as the Buyer may elect, whether or not the Buyer
has made any demand for payment and although such Obligations and liabilities and claims may be contingent or unmatured. The Buyer
shall notify the Guarantor promptly of any such set-off and the application made by the Buyer, provided that the failure
to give such notice shall not affect the validity of such set-off and application. The rights of the Buyer under this Section are
in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Buyer may have.

 

 

    	2

    	 

    

 

4.              
No Subrogation. Notwithstanding any payment or payments made by the Guarantor hereunder or any set-off or application
of funds of the Guarantor by the Buyer, the Guarantor shall not be entitled to be subrogated to any of the rights of the Buyer
against any Seller or any other guarantor or any collateral security or guarantee or right of offset held by the Buyer for the
payment of the Obligations, nor shall the Guarantor seek or be entitled to seek any contribution or reimbursement from any Seller
or any other guarantor in respect of payments made by the Guarantor hereunder, until all amounts owing to the Buyer by any Seller
on account of the Obligations are paid in full and the Repurchase Agreement is terminated. The Guarantor hereby subordinates all
of its subrogation rights against each Seller to the full payment of Obligations due Buyer under the Repurchase Agreement for a
period of 91 days following the final payment of the last of all of the Obligations under the Facility Documents. If any amount
shall be paid to the Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have been
paid in full, such amount shall be held by the Guarantor in trust for the Buyer, segregated from other funds of Guarantor, and
shall, forthwith upon receipt by the Guarantor, be turned over to the Buyer in the exact form received by the Guarantor (duly indorsed
by the Guarantor to the Buyer, if required), to be applied against the Obligations, whether matured or unmatured, in such order
as the Buyer may determine.

 

5.              
Amendments, Etc. with Respect to the Obligations; Waiver of Rights. Guarantor shall remain obligated hereunder notwithstanding
that, without any reservation of rights against Guarantor and without notice to or further assent by Guarantor, any demand for
payment of any of the Obligations made by the Buyer may be rescinded by the Buyer and any of the Obligations continued, and the
Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor
or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Buyer, and the Repurchase Agreement, and the other Facility Documents
and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in
whole or in part, as the Buyer may deem advisable from time to time, and any collateral security, guarantee or right of offset
at any time held by the Buyer for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. The Buyer
shall not have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations
or for this Guaranty or any property subject thereto. When making any demand hereunder against Guarantor, the Buyer may, but shall
be under no obligation to, make a similar demand on a Seller or any other guarantor, and any failure by the Buyer to make any such
demand or to collect any payments from any Seller or any such other guarantor or any release of a Seller or such other guarantor
shall not relieve Guarantor of its obligations or liabilities hereunder, and shall not impair or affect the rights and remedies,
express or implied, or as a matter of law, of the Buyer against Guarantor. For the purposes hereof “demand” shall include
the commencement and continuance of any legal proceedings.

 

 

    	3

    	 

    

 

 

6.              
Guaranty Absolute and Unconditional.

 

(a)            
Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice
of or proof of reliance by the Buyer upon this Guaranty or acceptance of this Guaranty, the Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon
this Guaranty; and all dealings between any Seller and the Guarantor, on the one hand, and the Buyer, on the other hand, likewise
shall be conclusively presumed to have been had or consummated in reliance upon this Guaranty.

 

(b)           
Guarantor hereby expressly waives all set-offs and counterclaims and all diligence, presentments, demands for payment, demands
for performance, notices of nonperformance, protests, notices of protest, notices of dishonor, notices of acceptance of this Guaranty,
notices of sale, notice of default or nonpayment to or upon any Seller or the Guarantor, surrender or other handling or disposition
of assets subject to the Repurchase Agreement, any requirement that Buyer exhaust any right, power or remedy or take any action
against any Seller or against any assets subject to the Repurchase Agreement, and other formalities of any kind.

 

(c)            
Guarantor understands and agrees that this Guaranty shall be construed as a continuing, absolute and unconditional guarantee
of payment without regard to (i) the validity or enforceability of the Repurchase Agreement, any of the Obligations or any
other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by
the Buyer, (ii) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time
be available to or be asserted by any Seller against the Buyer, or (iii) any other circumstance whatsoever (with or without
notice to or knowledge of any Seller or the Guarantor) which constitutes, or might be construed to constitute, an equitable or
legal discharge of a Seller from the Obligations, or of the Guarantor from this Guaranty, in bankruptcy or in any other instance.

 

(d)           
When pursuing its rights and remedies hereunder against the Guarantor, the Buyer may, but shall be under no obligation to,
pursue such rights and remedies as it may have against any Seller or any other Person or against any collateral security or guarantee
for the Obligations or any right of offset with respect thereto, and any failure by the Buyer to pursue such other rights or remedies
or to collect any payments from a Seller or any such other Person or to realize upon any such collateral security or guarantee
or to exercise any such right of offset, or any release of a Seller or any such other Person or any such collateral security, guarantee
or right of offset, shall not relieve the Guarantor of any liability hereunder, and shall not impair or affect the rights and remedies,
whether express, implied or available as a matter of law, of the Buyer against the Guarantor.

 

(e)            
This Guaranty shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon
the Guarantor and the successors and assigns thereof, and shall inure to the benefit of the Buyer, and its successors, indorsees,
transferees and assigns, until all the Obligations and the obligations of the Guarantor under this Guaranty shall have been satisfied
by payment in full and the Repurchase Agreement shall be terminated, notwithstanding that from time to time prior thereto a Seller
may be free from any Obligations.

 

 

    	4

    	 

    

 

(f)            
Guarantor waives, to the fullest extent permitted by applicable law, all defenses of surety to which it may be entitled
by statute or otherwise.

 

7.              
Reinstatement. The Obligations of the Guarantor under this Guaranty, and this Guaranty shall continue to be effective,
or be reinstated, as the case may be, and be continued in full force and effect, if at any time any payment, or any part thereof,
of any of the Obligations is rescinded, invalidated, declared fraudulent or preferentially set aside or must otherwise be restored,
returned or repaid by the Buyer upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of any Seller or the
Guarantor or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer
for, any Seller or the Guarantor or any substantial part of its or their property, or for any other reason, all as though such
payments had not been made.

 

8.              
Payments. Guarantor hereby guarantees that Obligations will be paid to the Buyer without set-off or counterclaim
in U.S. Dollars.

 

9.              
Event of Default. If an Event of Default under the Repurchase Agreement shall have occurred and be continuing, Guarantor
agrees that, as between Guarantor and Buyer, the Obligations may be declared to be due for purposes of this Guaranty notwithstanding
any stay, injunction or other prohibition which may prevent, delay or vitiate any such declaration as against a Seller and that,
in the event of any such declaration (or attempted declaration), such Obligations shall forthwith become due by Guarantor for purposes
of this Guaranty.

 

10.           
Waiver of Rights. Guarantor hereby waives: (i) notice of or proof of reliance by the Buyer upon this Guaranty or
acceptance of this Guaranty and the Obligations shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon this Guaranty, and all other dealings between a Seller and Guarantor, on the one
hand, and the Buyer, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon
this Guaranty; (ii) diligence, presentment, protest, all demands whatsoever, and notice of default or nonpayment with respect to
the Obligations; (iii) the filing of claims with any court in case of the insolvency, reorganization or bankruptcy of any Seller;
and (iv) any fact, event or circumstance that might otherwise constitute a legal or equitable defense to or discharge of Guarantor,
including (but without typifying or limiting this waiver), failure by the Buyer to perfect a security interest in any collateral
securing performance of any Obligation or to realize the value of any collateral or other assets which may be available to satisfy
any Obligation and any delay by the Buyer in exercising any of its rights hereunder or against any Seller.

 

11.           
Notices. All notices, requests and other communications provided for herein (including without limitation any modifications
of, or waivers, requests or consents under, this Guaranty) shall be given or made in writing (including without limitation by electronic
transmission) delivered to the intended recipient at the “Address for Notices” specified below its name on the signature
pages of the Repurchase Agreement; or, as to any party, at such other address as shall be designated by such party in a written
notice to each other party. All such communications shall be deemed to have been duly given when transmitted electronically or
personally delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid.

 

 

 

    	5

    	 

    

 

12.           
Severability. Any provision of this Guaranty which 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 provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

13.           
Integration. This Guaranty represents the agreement of the Guarantor with respect to the subject matter hereof and
thereof and there are no promises or representations by the Buyer relative to the subject matter hereof or thereof not reflected
herein or therein.

 

14.           
Amendments in Writing; No Waiver; Cumulative Remedies. (a) None of the terms or provisions of this Guaranty may be
waived, amended, supplemented or otherwise modified except by a written instrument executed by the Guarantor and the Buyer, provided
that any provision of this Guaranty may be waived by the Buyer.

 

(b)           
The Buyer shall not by any act (except by a written instrument pursuant to clause (a) above), delay, indulgence, omission
or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default or
in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part of the
Buyer, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power
or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.
A waiver by the Buyer of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy
which the Buyer would otherwise have on any future occasion.

 

(c)            
The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

 

15.           
Section Headings. The section headings used in this Guaranty are for convenience of reference only and are not to
affect the construction hereof or be taken into consideration in the interpretation hereof.

 

16.           
Successors and Assigns. This Guaranty shall be binding upon the successors and assigns of the Guarantor and shall
inure to the benefit of the Buyer and its successors and assigns. This Guaranty may not be assigned by the Guarantor without the
express written consent of the Buyer.

 

17.           
Governing Law. THIS GUARANTY SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT
TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

 

 

 

    	6

    	 

    

 

18.           
SUBMISSION TO JURISDICTION; WAIVERS. THE GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY:

 

(A)          
SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY AND THE OTHER FACILITY DOCUMENTS,
OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS
OF THE STATE OF NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE
COURTS FROM ANY THEREOF;

 

(B)          
CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION
OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

 

(C)          
AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED
OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW
OR AT SUCH OTHER ADDRESS OF WHICH THE BUYER SHALL HAVE BEEN NOTIFIED; AND

 

(D)          
AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL
LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

 

19.           
WAIVER OF JURY TRIAL. THE GUARANTOR AND THE BUYER HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, ANY OTHER FACILITY
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

20.           
Intent. This Guaranty 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.

 

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

    	7

    	 

    

 

IN WITNESS WHEREOF, the
undersigned has caused this Guaranty to be duly executed and delivered by its duly authorized officer as of the date first above
written.

 

 

 

 

	 	PENNYMAC MORTGAGE INVESTMENT TRUST , as Guarantor
	 	 
	 	By: 	/s/ Pamela Marsh
	 	 	Name: Pamela Marsh
Title: Executive Vice President, Treasurer

 

 

 

 

 

 

 

 

    	8

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