Document:

Fourth Amendment to the Mortgage Warehouse Loan and Security Agreement

 EXHIBIT 10.4 
  
 FOURTH AMENDMENT TO MORTGAGE 
 WAREHOUSE LOAN AND SECURITY AGREEMENT 
  
 This Fourth Amendment to Mortgage Warehouse Loan and Security Agreement (this
“Amendment”), made by and between CRESCENT MORTGAGE SERVICES, INC., a Georgia corporation, as borrower (“Borrower”), and COLONIAL BANK, an Alabama banking corporation, as lender (“Lender”), is dated as of
the 31st day of January, 2003. 
  
 R E C I T A L S: 
  
 Pursuant to that certain Mortgage Warehouse Loan and Security Agreement dated as of December 20, 1999, as amended by that certain First Amendment to
Mortgage Warehouse Loan and Security Agreement dated as of July 31, 2000, that certain Second Amendment to Mortgage Warehouse Loan and Security Agreement dated as of June 25, 2001, and that certain Third Amendment to Mortgage Warehouse Loan and
Security Agreement dated as of July 31, 2002 (as heretofore amended, the “Agreement”), Lender made available to Borrower, subject to the terms and conditions thereof, a resolving line of credit loan in the maximum aggregate principal
amount not to exceed $40,000,000.00 (the “Line of Credit”), secured by Borrower’s assignment and pledge to Lender of certain mortgage loans and related collateral, for the purpose of assisting Borrower in its business of originating
and making such loans. 
  
 Borrower has requested that Lender
agree to temporarily increase the maximum amount available under the Line of Credit from $40,000,000.00 to $55,000,000.00, to make corresponding temporary increases to the existing Sublimits thereunder, to add a new Sublimit E (as hereinafter
defined) thereunder for warehousing Eligible Non-Conforming Mortgage Loans (as hereinafter defined), and to make certain other modifications to the Agreement, and Lender is willing to do so, but only on the express condition, among others, that
Borrower enter into this Amendment, pursuant to which the Agreement shall be amended and modified. 
  
 NOW, THEREFORE, in consideration of the premises and agreements contained herein, and for good and valuable consideration, the receipt and sufficiency of
which are acknowledged by the parties hereto, the parties hereto do hereby agree, each with the other, as follows: 
  
 1. If not otherwise defined herein or the context shall not expressly indicate otherwise, all capitalized terms which are used herein shall have their
respective meanings given to them in the Agreement. 
  
 2. Section
1.1 (Defined Terms) of the Agreement is hereby amended as follows: 
  
 (A) By amending and restating the definition of “Advance” to read in its entirety as follows: 
  
 “Advance” shall mean a Sublimit A Advance, a Sublimit B Advance, a Sublimit C Advance, a Sublimit D Advance and/or a
Sublimit E Advance, as applicable, in each case pursuant to an Advance Request. 
  
 (B) By amending and restating the definition of “Advance Rate Amount” to read in its entirely as follows: 
  
 “Advance Rate Amount” shall mean (i) with
respect to any Eligible Conforming Mortgage Loan, an amount equal to ninety-nine percent (99%) of the amount to be paid by the Approved Investor for the Mortgage Loan pursuant to a binding Investor Commitment (i.e., “commitment”),
not to exceed the current unpaid principal balance of such Mortgage Loan (i.e., “par”), (ii) with respect to any Eligible Gestation Mortgage Loan, an amount equal to ninety-nine percent (99%) of commitment, not to exceed par, (iii)
with respect to any Eligible Repurchased Mortgage Loan, an amount equal to ninety percent (90%) of the lesser of (a) the repurchase price of the Mortgage Loan or (b) the current (within forty-five (45) days) appraised value of such Mortgage Loan,
(iv) with respect to any Eligible Non-Conforming Mortgage Loan, an amount equal to ninety-eight percent (98%) of the lesser of par or commitment, and (v) with respect to any Eligible Wet Mortgage Loan, an amount equal to the Advance Rate Amount
applicable to the Type of Mortgage Loan supporting the Advance. 
  

 (C) By adding a definition of “Collateral Value” thereto which reads in its
entirety as follows: 
  
 “Collateral
Value” shall mean with respect to any Eligible Mortgage Loan, the Advance Rate Amount applicable to the Type of Mortgage Loan involved. 
  
 (D) By amending and restating the definition of “Commitment” to read in its entirety as follows: 
  
 “Commitment” shall mean the commitment of
Lender to make Advances to Borrower which Advances in the aggregate, subject to each applicable Sublimit, shall not exceed (i) $55,000,000.00 at any time outstanding before the Reduction Date or (ii) $40,000,000.00 at any time outstanding on or
after the Reduction Date. The Commitment shall automatically decrease on the Reduction Date without notice or other action of any kind on the part of Borrower, Lender or any other Person. 
  
 (E) By amending and restating the definition of
“Eligible Mortgage Loan” to read in its entirety as follows: 
  
 “Eligible Mortgage Loan” shall mean a Mortgage Loan owned by Borrower conforming to the requirements of one Type of Mortgage Loan with respect to which each of the following statements is true and
correct: 
  
 (a) such Mortgage Loan is a binding
and valid obligation of the Obligor thereon, is in full force and effect and is enforceable in accordance with its terms; 
  
 (b) such Mortgage Loan is secured by a first priority mortgage (or deed of trust) on the Property encumbered thereby or, in the case of
an Eligible Non-Conforming Mortgage Loan, a first or second priority mortgage (or deed of trust) on the Property encumbered thereby; 
  
 (c) such Mortgage Loan is genuine, in all respects, as appearing on its face or as represented in the books and records of Borrower, and
all information set forth therein is true and correct; 
  
 (d) such Mortgage Loan is free of any material default (other than as permitted in subsection (e) below) of any party thereto (including Borrower), counterclaims, offsets and defenses and from any rescission,
cancellation or avoidance, and all rights thereof, whether by operation of law or otherwise; 
  
 (e) no payment under such Mortgage Loan is more than thirty (30) days past due the payment due date set forth in the underlying
promissory note and mortgage (or deed of trust); 
  
 (f) such Mortgage Loan contains the entire agreement of the parties thereto with respect to the subject matter thereof, has not been modified or amended in any respect and is free of concessions or understandings with the Obligor thereon of
any kind not expressed in writing therein; 
  
 (g) such Mortgage Loan is in all respects as required by and in accordance with all applicable laws and regulations governing the same, including the federal Consumer Credit Protection Act and the regulations promulgated thereunder, the
federal Truth-in-Lending Act and the regulations promulgated thereunder, and all applicable usury laws and restrictions; and all notices, disclosures and other statements or information required by law or regulation to be given, and any other act
required by law or regulation to be performed, in connection with such Mortgage Loan have been given and performed as required; 
  

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 (h) all advance payments and other deposits on such Mortgage Loan have been paid in
cash, and no part of such sums has been loaned, directly or indirectly, by Borrower to the Obligor thereon; 
  
 (i) at all times such Mortgage Loan will be free and clear of all liens, encumbrances, charges, rights and interests of any kind (other
than Investor Commitments), except in favor of Lender hereunder; 
  
 (j) the Property encumbered by such Mortgage Loan is insured against loss or damage by fire and all other hazards normally included within standard extended insurance coverage (including flood plain insurance if such
Property is located in a federally designated flood plain) in accordance with the provisions of such Mortgage Loan with Borrower named as a loss payee thereon; 
  

(k) the Property encumbered by such Mortgage Loan is free and clear of all Liens except Liens in favor of Borrower, which has assigned
any and all such Liens to Lender hereunder, subject only to (i) Liens junior in priority to the Lien of Borrower; (ii) the Lien of real property taxes and assessments not yet due and payable; (iii) covenants, conditions and restrictions, rights of
way, easements and other matters of public record, as of the date of recording, being acceptable to mortgage lending institutions generally and specifically referred to in a lender’s title insurance policy delivered to the originator of the
Mortgage Loan and (A) referred to or otherwise considered in the appraisal made for the originator of the Mortgage Loan or (B) that do not materially adversely affect the appraised value of such Property as set forth in such appraisal; and (iv)
other matters to which like properties are commonly subject that do not materially interfere with the benefits of the security intended to be provided by the Mortgage Loan or the use, enjoyment, value or marketability of the related Properly;

  
 (l) if the promissory note for such Mortgage
Loan (or any other documentation relating thereto) has been withdrawn from the possession of Lender on terms and subject to conditions set forth in Section 4.4 hereof, (i) such promissory note or other documentation has been released to Borrower for
purposes of correcting clerical or other non-substantive documentation problems pursuant to a Trust Receipt as permitted under Section 4.4(a) hereof, such release has occurred within the immediately preceding ten (10) days and the Collateral Value
of the Mortgage Loan for which such note or other documentation has been released, when added to the Collateral Value of all other Mortgage Loans for which notes or other documentation have been similarly released to Borrower, does not exceed
$500,000.00 or (ii) such promissory note and any related documentation for such Mortgage Loan have been shipped by Lender directly to an Approved Investor for purchase, as permitted under Section 4.4(b) hereof, such shipment has occurred within the
immediately preceding (x) forty-five (45) days in the case of the shipment of Mortgage Loans to an Approved Investor if such Approved Investor is a housing authority constituting a Governmental Authority, and (y) twenty-five (25) days in all other
cases, and, in the case of clause (x), the Collateral Value of such Mortgage Loan, when added to the Collateral Value of all other Mortgage Loans for which promissory notes or other documentation has been similarly shipped, does not exceed
$1,000,000.00; 
  
 (m) with respect to
Conventional Mortgage Loans, in the event the loan-to-value ratio of such Mortgage Loan exceeds eighty percent (80%), such Mortgage Loan is the subject of a private mortgage insurance policy issued in favor of Borrower by an insurer approved by
FNMA, FHLMC, GNMA or the Approved Investor issuing the Investor Commitment for such Mortgage Loan; 
  
 (n) the date of the promissory note is no earlier than sixty (60) days prior to the date the Advance secured by such Mortgage Loan is
made by Lender to Borrower or, if the interest rate applicable to such Mortgage Loan has converted to a fixed rate, the date of such 

  

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conversion is no earlier than sixty (60) days prior to the date the Advance secured by such Mortgage Loan is made by Lender to Borrower; 
  
 (o) such Mortgage Loan is insured by the FHA or guaranteed
by the VA (or is eligible for such insurance or guaranty and said insurance or guaranty will be in place within 30 days from the date of funding under such Mortgage Loan), and or fully conforms to all underwriting and other requirements of FNMA,
FHLMC, FHA VA or one of the Approved Investors; 
  
 (p) such Mortgage Loan has not aged longer than the Warehouse Period applicable thereto, unless specifically agreed otherwise by Lender on a case-by-case basis; 
  
 (q) each of the promissory notes delivered to Lender evidences a Mortgage Loan with respect to which there
exists either (i) a binding and valid Investor Commitment to purchase such Mortgage Loan which is fully enforceable in accordance with its terms or (ii) if sold or to be sold on a “pool” basis, has been included in a pool of Mortgage Loans
in which Mortgage-Backed Securities will represent interests under valid, binding and enforceable Investor Commitments covering 100% of such Mortgage Loans warehoused with Lender and included in such pool sale; 
  
 (r) (i) Borrower has delivered (or caused to be delivered)
to Lender an Advance Request in the form of Exhibit B-l, appropriately completed for the Type of Advance requested (unless a different form of Advance Request has been specified by Lender for Sublimit B Advances, in which case. Borrower has
delivered or caused to be delivered an Advance Request in the required form or unless such Advance Request has been transmitted to Lender electronically as permitted by Section 2.2(a), in which case. Borrower has delivered, or caused to be
delivered, to Lender a Confirmation of Electronic Advance Request in the form of Exhibit B-2). (A) accompanied by those documents described on Exhibit C to this Agreement for such Mortgage Loan to Lender on or prior to the date the
Advance secured by such Mortgage Loan is made by Lender to Borrower or (B) if such documents do not accompany said Advance Request: (1) Borrower or Lender’s agent/bailee holds said documents in trust for Lender and (2) such documents are
received by Lender within five (5) Banking Days after the date the Advance secured by such Mortgage Loan is made by Lender to Borrower: (ii) if applicable, Borrower has delivered (or caused to be delivered) to the Certificating Custodian, on or
prior to the date the Advance secured by such Mortgage Loan is made by Lender to Borrower, the documentation for such Mortgage Loan that the Certificating Custodian is required under the applicable Agency Guide to examine, for completeness and
acceptability, for purposes of initially determining the suitability of such Mortgage Loan for inclusion in a mortgage loan pool supporting a Mortgage-Backed Security, (iii) Borrower or Lender’s agent/bailee holds in trust for Lender those
items described in Exhibit D; and (iv) there has been delivered to Lender, if Lender has so requested in writing, the additional items described on Exhibit D; and 
  
 (s) except for the existence of a commitment to sell such Mortgage Loan on a servicing-released basis and
or on a concurrent basis, such Mortgage Loan is not subject to any servicing arrangement with any Person other than Borrower nor are any servicing rights relating to such Mortgage Loan subject to any lien, claim, interest or negative pledge in favor
of any Person other than as permitted hereunder. 
  

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 (F) By adding a definition of “Eligible Non-Conforming Mortgage Loan” thereto
which reads in its entirety as follows: 
  
 “Eligible Non-Conforming Mortgage Loan” shall mean a Mortgage Loan with respect to which each of the following statements is true and correct: 
  
 (a) such Mortgage Loan is an Eligible Mortgage Loan, except that if such Mortgage Loan otherwise meets the
requirements of an Eligible Mortgage Loan, such Mortgage Loan may be secured by a second priority (rather than a first priority) mortgage (or deed of trust) on the Property encumbered thereby; 
  
 (b) the Property encumbered by such Mortgage Loan is owner
occupied and is not an investment property, except that Mortgage Loans may be eligible even if they are held as investment property if such Mortgage Loans are (i) rated “A” or “B” or (ii) underwritten and approved by the Approved
Investor issuing the Investor Commitment for such Mortgage Loan if rated below “B”; 
  
 (c) such Mortgage Loan conforms to the credit quality guidelines utilized by Fitch IBCA or such other nationally recognized credit
ratings agency or firm as specified by Lender as set forth in Exhibit E and otherwise conforms to all underwriting and other requirements of one of the Approved Investors other than FNMA, FHLMC or FHA VA (such as by way of illustration and
not limitation. Mortgage Loans which are A-. B or C rated mortgage loans, high loan-to-value ratio, second mortgages or HELOC’s). which underwriting and other requirements are customary in the mortgage banking industry and have been approved by
Lender in writing, except that Mortgage Loans rated “D” or below shall be ineligible; 
  
 (d) such Mortgage Loan is pre-sold on a “Flow basis” or, if sold on a “bulk basis”, is underwritten to specific
Approved Investor guidelines deeming it eligible for purchase pending documentation review; 
  
 (e) such Mortgage Loan has not aged longer than the applicable Warehouse Period and, if included in the warehouse for a period in excess
of ninety (90) days, 5% (based on initial Advance Rate Amount) of the Advance related to such Mortgage Loan has been repaid on or before the 91st day in warehouse; and 
  
 (f) the initial principal amount of such Mortgage Loan, if
underwritten by Borrower, does not exceed $650,000.00, or if the initial principal amount thereof exceeds $650,000.00 such Mortgage Loan has been underwritten and approved by the Approved Investor under such Investor Commitment. 
  
 (G) By amending and restating the definition of
“Eligible Repurchased Mortgage Loan” to read in its entirety as follows: 
  
 “Eligible Repurchased Mortgage Loan” shall mean a Mortgage Loan with respect to which each of the following statements is
true: 
  
 (a) such Mortgage Loan meets the
requirements of subparagraphs (a), (b), (c), (f), (g), (h), (i), (j), (k), (m), (p) and (r) of the definition of Eligible Mortgage Loan; 
  
 (b) such Mortgage Loan currently is not eligible for purchase by an Approved Investor as either an “Eligible Conforming Mortgage
Loan” or an “Eligible Non-Conforming Mortgage Loan”, but it either meets the requirements set forth in subparagraph (b) of the definition of “Eligible Conforming Mortgage Loan” or meets the requirements set forth in
subparagraphs (b) and (c) of the definition of “Eligible Non-Conforming Mortgage Loan”; 
  
 (c) such Mortgage Loan was originally sold by Borrower to an Approved Investor and subsequently repurchased by Borrower from such
Approved Investor in accordance with the terms of the applicable Investor Commitment or became, for reasons that do not adversely affect or impair the enforceability of such Mortgage Loan against the Obligor, ineligible for purchase by an Approved
Investor as either an “Eligible Conforming 

  

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Mortgage Loan” or an “Eligible Non-Conforming Mortgage Loan” as long as such Mortgage Loan initially met the applicable underwriting criteria;

  
 (d) such Mortgage Loan was not repurchased
by Borrower from such Approved Investor as a result of any issue concerning the appraisal of the Property encumbered by such Mortgage Loan (or, if such Mortgage Loan was repurchased by Borrower from such Approved Investor as a result of any issue
concerning the appraisal of the Property encumbered by such Mortgage Loan, the Property has been reappraised to Lender’s satisfaction by a different appraiser); 
  
 (e) if the promissory note for such Mortgage Loan (or any other documentation relating thereto) has been
withdrawn from the possession of Lender on terms and subject to the conditions set forth in Section 4.4(a) of this Agreement. (i) such promissory note or other documentation has been released to Borrower pursuant to a Trust Receipt as permitted
under Section 4.4(a) of this Agreement and such release has occurred within the immediately preceding ten (10) days or (ii) such promissory note or other documentation has been released to an attorney, trustee or other third party conducting
foreclosure proceedings on behalf of Borrower (for purposes of prosecuting such foreclosure proceedings) pursuant to a Bailment Letter as permitted under this Agreement; provided that the Collateral Value of the Mortgage Loan for which such
promissory note or other documentation has been released, when added to the Collateral Value of all other Mortgage Loans for which notes or other documentation have been similarly released to Borrower, does not exceed $1,000,000.00; 
  
 (f) such Mortgage Loan has not aged longer than the
applicable Warehouse Period and, if included in the warehouse for a period in excess of (i) ninety (90) days, 15% (based on the initial value) of the Mortgage Loan has been repaid on or before the 91st day in the warehouse, (ii) one hundred eighty
(180) days, an additional 25% (based on the initial value) of the Mortgage Loan has been repaid on or before the 181st day in the warehouse, (iii) two hundred seventy (270) days, an additional 25% (based on the initial value) of the Mortgage Loan
has been repaid on or before the 271st day in the warehouse, and (iv) three hundred sixty (360) days, the final 25% (based on the initial value) of the Mortgage Loan has been repaid on or before the 360th day in the warehouse; and 
  
 (g) (i) Borrower has delivered (or caused to be delivered)
to Lender those items for such Mortgage Loan described on Exhibit C to this Agreement prior to the Advance supported by such Mortgage Loan, plus a current (within 45 days) appraisal of the properly securing such Mortgage Loan and an
original assignment of mortgage (or deed of trust) in favor of Lender (in recordable form and which will be recorded at Lender’s option); (ii) Borrower or a third party approved by Lender holds in trust for the Lender those items described in
Exhibit D to this Agreement; and (iii) Borrower has delivered (or caused to be delivered) to Lender, if Lender has so requested in writing, the additional items described on Exhibit D to this Agreement. 
  
 (H) By adding a definition of “FICO Score” thereto
which reads in its entirety as follows: 
  
 “FICO Score” shall mean the Fair Isaac & Company or similar computer analytical objective scoring model ascertaining a borrower’s credit reputation based on a scale of 350-900, the lower the number, the greater the
probability of default. 
  
 (I) By amending and
restating the definition of “LIBOR Rate” to read in its entirely as follows: 
  
 “LIBOR Rate” shall mean the rate that appears on the display designated as page, “3750” of the Telerate
Service (or such other page as may replace page 3750 of that service) as of 11:00 a.m.. Orlando time, on each Banking Day or, if not so reported on such service, as otherwise quoted by Lender from time to time, as the 30-day LIBOR Rate, adjusted
daily with each change in the 30-day LIBOR Rate: provided, however, in no event shall the LIBOR Rate be less than the floor rate per 

  

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annum equal to 2.50% (which floor rate may be changed from time to time by Lender after consultation with the Treasurer of Lender) or greater than the
ceiling rate per annum equal to the Prime Rate. 
  
 (J) By amending and restating the definition of “Prime Rate” to read in its entirety as follows: 
  
 “Prime Rate” shall mean the fluctuating interest rate per annum announced by Lender from time to time as its Prime Rate
as such Prime Rate may change from time to time, adjusted daily with each change in such Prime Rate (which interest rate is only a benchmark, is purely discretionary and is not necessarily the best or lowest rate charged borrowing customers of
Lender): provided, however, in no event shall the Prime Rate be less than the floor rate per annum equal to 5.50% (which floor rate may be changed from time to time by Lender after consultation with the Treasurer of Lender).

  
 (K) By adding a definition of “Reduction
Date” thereto which reads in its entirety as follows: 
  
 “Reduction Date” shall mean March 3, 2003 (thirty (30) days after the date of the Fourth Amendment to the Agreement). 
  
 (L) By amending and restating the definition of “Servicing Rights Value” to read in its entirety
as follows: 
  
 “Servicing Rights
Value” shall mean as of the date of determination, the lesser of (i) eighty percent (80%) of the most recent quarterly Appraised Value of Borrower’s Eligible Servicing Portfolio (if such an appraisal is obtained) or (ii) one percent
(1.00%) of the ending principal balance of Borrower’s Eligible Servicing Portfolio as of the end of applicable calendar month (if no such appraisal is obtained). 
  
 (M) By amending and restating the definition of “Sublimit A” to read in its entirety as follows:

  
 “Sublimit A” shall mean a
portion of the Line of Credit up to but not exceeding $55,000,000.00 prior to the Reduction Dale or $40,000,000.00 on or after the Reduction Date, which shall be available to warehouse Sublimit A Mortgage Loans. 
  
 (N) By amending and restating the definition of
“Sublimit B” to read in its entirety as follows: 
  
 “Sublimit B” shall mean a portion of the Line of Credit up to but not exceeding ($13,750,000.00 [increasing to $19,250,000.00 during the last live (5), followed by the first five (5) Banking Days of
each month] prior to the Reduction Date, or $10,000,000.00 [increasing to $14,000,000.00 during the last five (5), followed by the first five (5) Banking Days of each month] on or after the Reduction Date, which shall be available to warehouse
Sublimit B Mortgage Loans. 
  
 (O) By amending
and restating the definition of “Sublimit C” to read in its entirety as follows: 
  
 “Sublimit C” shall mean a portion of the Line of Credit up to but not exceeding $27,500,000.00 prior to the Reduction
Date or $20,000,000.00 on or after the Reduction Date, which shall be available to warehouse Sublimit C Mortgage Loans. 
  
 (P)
By amending and restating the definition of “Sublimit D” to read in its entirely as follows: 
  
 “Sublimit D” shall mean a portion of the Line of Credit up to but not exceeding $770.000.00 prior to the Reduction Date
or $560,000.00 on or after the Reduction Date, which shall be available to warehouse Sublimit D Mortgage Loans. 
  

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 (Q) By adding a definition of “Sublimit E” thereto which reads in its entirety
as follows: 
  
 “Sublimit E”
shall mean a portion of the Line of Credit up to but not exceeding $5,500,000.00 prior to the Reduction Date or $4,000,000.00 on or after the Reduction Date, which shall be available to warehouse Sublimit E Mortgage Loans. 
  
 (R) By adding a definition of “Sublimit E Advance”
thereto which reads in its entirety as follows: 
  
 “Sublimit E Advance” shall mean an Advance pursuant to an Advance Request made by Lender to Borrower pursuant to Section 2. l(e) for the purposes set forth in Section 5.9. 
  
 (S) By adding a definition of “Sublimit E Mortgage
Loans” thereto which reads in its entirety as follows: 
  
 “Sublimit E Mortgage Loans” shall mean Eligible Non-Conforming Mortgage Loans funded by Lender under Sublimit E Advances. 
  
 (T) By amending and restating the definition of “Type” to read in its entirety as follows:

  
 “Type” shall mean (a) when
used in respect of any Mortgage Loan, an Eligible Conforming Mortgage Loan, an Eligible Wet Mortgage Loan, an Eligible Gestation Mortgage Loan, an Eligible Repurchased Mortgage Loan, or an Eligible Non-Conforming Mortgage Loan, and (b) when used in
respect of any Advance, a Sublimit A Advance, a Sublimit B Advance, a Sublimit C Advance, a Sublimit D Advance, or a Sublimit E Advance. 
  
 (U) By amending and restating the definition of “Warehouse Period” to read in its entirety as follows: 
  
 “Warehouse Period” shall mean, for any
Mortgage Loan, the period commencing on the Advance Date for such Mortgage Loan and ending on the first to occur of: (i) in the case of any Sublimit A Advance, ninety (90) days after such Advance Date: (ii) in the case of any Sublimit B Advance,
five (5) Banking Days alter such Advance Date unless the Required Documents and, if requested by Lender, the Additional Required Documents, supporting such Advance have been delivered to and accepted by Lender: (iii) in the case of any Sublimit C
Advance, forty-five (45) days after such Advance Date (provided the total combined Warehouse Period under Sublimit A and Sublimit C shall not exceed 120 days): (iv) in the case of any Sublimit D Advance, three hundred sixty (360) days after such
Advance Date; provided, however, on or before each of the 91st day in the warehouse, the 181st day in
the warehouse, the 271st day in the warehouse, and the 360th day in the warehouse, the amounts required for such Mortgage Loan to constitute an Eligible Repurchased Mortgage Loan must be repaid; (v) in the case of any Sublimit E Advance, one hundred
twenty (120) days after such Advance Date; provided, however, on or before the 91st day in the warehouse, the amount required for such Mortgage Loan to constitute an Eligible Non-Conforming Mortgage Loan must be repaid; (vi) expiration of the Investor Commitment for such Mortgage Loan or certificate covering same;
if applicable, within ten (10) days after redelivery by Lender to Borrower of any non-conforming instrument or document for correction unless Borrower has completed correction thereof and has delivered the same to Lender within such 10-day period;
or (vii) in the case of any Sublimit A Advance. Sublimit C Advance or Sublimit E Advance, five (5) Banking Days after the Mortgage Loan supporting such Advance is rejected by an Approved Investor for any reason unless such Mortgage Loan is
re-committed within such time period. 
  
 3. Section 2.1
(Commitment) of the Agreement is hereby amended to amend and restate subsection (e) thereof in its entirety and to add a new subsection (f) thereto, such subsections to read in their entireties as follows: 
  
 (e) Sublimit E Advances. Subject to and upon the
terms and conditions herein set forth. Lender agrees at any time and from time to time during the Advance Period, to make Sublimit E Advances to Borrower in an aggregate principal amount which, (i) when added to the aggregate 

  

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principal amount of all other then outstanding Sublimit E Advances does not exceed the maximum amount of Sublimit E or (ii) when added to the aggregate
principal amount of all other then outstanding Advances does not exceed the Commitment. Within the foregoing limits and subject to the conditions set forth in Article 3. Borrower may borrow and reborrow Sublimit E Advances under Section 2.2 and
prepay Sublimit E Advances under Section 2.8. 
  
 (f) Limitation on Aggregate Advances; Individual Advances. Notwithstanding any other provisions of this Agreement, the aggregate principal amount of all Advances at any time outstanding shall not exceed the lesser of: (A) the
Commitment or (B) the aggregate Collateral Value of the Mortgage Loans funded with such Advances and warehoused with Lender hereunder. Notwithstanding any other provisions of this Agreement, the principal amount of any Advance shall not exceed the
Advance Rate Amount for an Advance of the applicable Type. 
  
 4.
Section 2.2 (Method of Borrowing) of the Agreement is hereby amended to amend and restate subsection (e) thereof in its entirety to read as follows: 
  
 (e) Further, by delivering an Advance Request to Lender in accordance with subsection (a) above. Borrower shall be deemed to represent and
warrant to Lender at and as of the date of such Advance Request and as of the Advance Date that with respect to such Mortgage Loan supporting such Advance, each of the statements set forth in the definition of Eligible Conforming Mortgage Loan,
Eligible Wet Mortgage Loan, Eligible Non-Conforming Mortgage Loan, Eligible Repurchased Mortgage Loan, or Eligible Gestation Mortgage Loan, as the case may be, is true and correct. 
  
 5. Section 2.3 (Disbursement of Funds) of the Agreement is hereby amended and restated to read in its entirety as
follows: 
  
 Section 2.3 Disbursement of
Funds. 
  
 Subject to Section 2.1 and the
other provisions of this Agreement, no later than 2:00 p.m. (Orlando time) on each Advance Date. Lender shall make available to Borrower the full amount of the Advance requested by Borrower in the Advance Request by deposit of such funds to the
Master Advance Account or in such other manner as Lender may agree. Funds so deposited in the Master Advance Account shall be transferred by Lender from time to time to the Controlled Disbursement Account to pay items drawn by Borrower on the
Controlled Disbursement Account for the purpose of funding Eligible Mortgage Loans: provided, however. Lender shall not be obligated to pay any items at any time drawn on any of Borrower’s accounts maintained with Lender if such
payment would result in an overdraft in any such account, and Borrower agrees that Lender shall not incur any liability to Borrower or any other Person for returning any such items. Notwithstanding the foregoing, in the event Borrower has requested
Lender to release a Mortgage Loan pursuant to Section 4.4(a) or 4.4(b) prior to clearance and payment of the closing check which funded such Mortgage Loan, the proceeds of the Advance related to such Mortgage Loan may be deposited upon disbursement
by Lender to the Administrative Account, and further, if the closing check which funded a Mortgage Loan has been returned for endorsement (or for any other reason), the funds initially transferred from the Master Advance Account to the Controlled
Disbursement Account to pay such check may be re-transferred by Lender to the Administrative Account until such check is again presented for payment. 
  
 6. Section 2.4 (Note) of the Agreement is hereby amended to delete the term “$40,000,000.00” therefrom and to substitute the term
“$55,000,000.00” in lieu thereof. 
  
 7. Section 2.5
(Interest) of the Agreement is hereby amended to amend and restate subsection (a) thereof in its entirety to read as: 
  
 (a) Except as otherwise provided in this Agreement (including the last three sentences of this Section 2.5(a)), the principal amount of
each Advance owed to Lender shall bear interest at an annual interest rate equal to the lesser of: (i) the Maximum Rate or (ii) (A) for Sublimit A Advances, the LIBOR Rate plus 1.25% (125 basis points), floating daily, subject,
however, to adjustment to the 

  

 9 

 
LIBOR Rate plus 1.50% (150 basis points), floating daily, if the Mortgage Loan funded with such Advance is warehoused with Lender for more than sixty
(60) days. (B) for Sublimit B Advances, the LIBOR Rate plus 1.55% (155 basis points), floating daily, (C) for Sublimit C Advances, the LIBOR Rate plus 1.15% (115 basis points), floating daily. (D) for Sublimit D Advances, the Prime
Rate, floating daily, and (E) for Sublimit E Advances, the LIBOR Rate plus 1.45% (145 basis points), floating daily, subject, however, to adjustment to the LIBOR Rate plus 1.70% (170 basis points), floating daily, if the
Mortgage Loan funded with such Advance is warehoused with Lender for more than sixty (60) days. In the event Lender is holding Buy-Down Deposits and no Potential Default or Event of Default has occurred, the interest rate on Advances made by Lender
may be reduced to the Buy-Down Rate for such portion of the Advances which is less than or equal to the amount of the Available Buy-Down Deposits (such portion of the Advances being referred to herein as a “Buy-Down Advances”). Except for
the reduction in interest rate described above. Buy-Down Advances shall be treated as Advances of the applicable Type, for all purposes under this Agreement. If Lender specifically agrees in its sole and absolute discretion and on a case-by-case
basis to allow a Mortgage Loan to stay in warehouse longer than the Warehouse Period therefore, the outstanding principal amount of the related Advance owed to Lender shall during the period of time in warehouse in excess of such Warehouse Period,
bear interest at an annual interest rate equal to the lesser of: (i) the Maximum Rate or (ii) the Interim Default Rate. 
  
 8. Section 2.7 (Mandatory Repayments) of the Agreement is hereby amended to amend and restate subsections (c) and (d) thereof to read in their
entireties as follows: 
  
 (c) Notwithstanding
any other provisions of this Agreement. Borrower shall immediately repay: (i) (A) Sublimit A Advances to the extent that the aggregate outstanding principal amount of Sublimit A Advances exceeds the lesser of: (1) the maximum amount of Sublimit A or
(2) the Collateral Value of the outstanding Sublimit A Mortgage Loans funded with such Sublimit A Advances, (B) Sublimit B Advances to the extent that the aggregate outstanding principal amount of Sublimit B Advances exceeds the lesser of: (1) the
maximum amount of Sublimit B or (2) the Collateral Value of the outstanding Sublimit B Mortgage Loans funded with such Sublimit B Advances. (C) Sublimit C Advances to the extent that the aggregate outstanding principal amount of Sublimit C Advances
exceeds the lesser of: (1) the maximum amount of Sublimit C or (2) the Collateral Value of the outstanding Sublimit C Mortgage Loans funded with such Sublimit C Advances. (D) Sublimit D Advances to the extent that the aggregate outstanding principal
amount of Sublimit D Advances exceeds the lesser of: (1) the maximum amount of Sublimit D, or (2) the Collateral Value of the outstanding Sublimit D Mortgage Loans funded with such Sublimit D Advances, and (E) Sublimit E Advances to the extent that
the aggregate outstanding principal amount of Sublimit E Advances exceeds the lesser of: (1) the maximum amount of Sublimit E, or (2) the Collateral Value of the outstanding Sublimit E Mortgage Loans funded with such Sublimit E Advances, and (ii)
Advances to the extent that the aggregate outstanding principal amount of such Advances exceeds the Commitment then in effect. Further, Borrower shall immediately upon demand pay to Lender all amounts necessary from time to time to compensate for
any resulting deficiency between the proceeds of sale of the Mortgage Loans and the principal amount advanced under the Line of Credit related to such Mortgage Loans. 
  
 (d) Notwithstanding any other provision of this Agreement Lender shall not be required to accept or to
continue to hold as security for repayment of Advances under Section 4.3 any Mortgage Loan which (i) has aged more than the length of the applicable Warehouse Period, unless specifically agreed otherwise by Lender in its sole and absolute discretion
and on a case-by-case basis. (ii) is deemed unsatisfactory for purchase by the applicable Approved Investor or for pooling and issuance of a Mortgage-Backed Security either by the Certificating Custodian or the pool sponsor, except as provided in
Section 4.4(d) below or for any other reason is not or ceases to be an Eligible Mortgage Loan. (iii) except in the case of an Eligible Repurchased Mortgage Loan remains in default for a period in excess of thirty (30) days or (iv) has not been paid
for in full within twenty-one (21) days after shipment to an Approved Investor unless said Mortgage Loan and all applicable documents relating thereto have been returned to Lender within said 21-day time period, and in any such case. Borrower shall
immediately repay to Lender any Advances made with respect to such Mortgage Loan 

  

 10 

 
together with all accrued and unpaid interest thereon. In addition, (A) in the case of any Mortgage Loan funded under a Sublimit D Advance but not repaid in
full within (i) ninety (90) days after the Advance Date with regard to such Mortgage Loan. Borrower shall immediately repay to Lender at least 15% (based on the initial value) of such Sublimit D Mortgage Loan on or before the 91st day in the
warehouse. (ii) one hundred eighty (180) days after the Advance Date with regard to such Mortgage Loan. Borrower shall immediately repay to Lender an additional 25% (based on the initial value) of such Sublimit D Mortgage Loan on or before the 181st
day in the warehouse, (iii) two hundred seventy (270) days after the Advance Date with regard to such Mortgage Loan. Borrower shall immediately repay to Lender another 25% (based on the initial value) of such Sublimit D Mortgage Loan on or before
the 271st day in the warehouse and (iv) three hundred sixty (360) days after the Advance Date with regard to such Mortgage Loan. Borrower shall immediately repay to Lender the remaining 25% (based on the initial value) of such Sublimit D Mortgage
Loan on or before day 360 in the warehouse, together in each instance with all accrued and unpaid interest thereon, and (B) in the case of any Mortgage Loan funded under a Sublimit E Advance but not repaid in full within ninety (90) days after the
Advance Date with regard to such Mortgage Loan. Borrower shall immediately repay to Lender at least 5% (based on the initial Advance Rate Amount) of such sublimit E Mortgage Loan on or before the 91st day in warehouse, together with all accrued and unpaid interest thereon. Borrower further agrees that if Lender specifically agrees in its sole and absolute
discretion and on a case-by-case basis to accept or to continue to hold as security for repayment of Advances any Mortgage Loan which has aged more than the length of the applicable Warehouse Period. Borrower shall repay to Lender the related
Advance on Lender’s demand, or if no demand for payment is made, in accordance with the payment schedule specified therefor by Lender (which payment schedule may require periodic reductions of the principal amount of such Advance). 

 
 9. Section 6.3(a) (Adjusted Tangible Net Worth) of the Agreement is
hereby amended and restated in its entirety to read as follows: 
  
 (a) Adjusted Tangible Net Worth. Borrower’s Adjusted Tangible Net Worth shall not be less than $15,000,000.00. 
  
 10. Section 6.3(d) (Book Net Worth) of the Agreement is hereby deleted. 
  
 11. This Amendment shall become effective as of the date first above written, provided that Lender shall have received by
such date the following items, all of which must be signed by all appropriate Persons and in form and substance acceptable to Lender in its sole discretion: 
  
 (A) This Amendment executed by Borrower and Lender (whether such parties shall have signed the same or different counterparts):

  
 (B) A Third Amendment to Promissory Note
executed by Borrower and Lender (the “Note Amendment”) (whether such parties shall have signed the same or different counterparts): 
  
 (C) An executed affidavit, in form satisfactory to Lender, regarding the execution of this Agreement and the Note Amendment by Borrower
outside the State of Florida: 
  
 (D)
Certificates of even date herewith signed by the President and or Secretary of Borrower as appropriate certifying (I) the authorizing resolutions of Borrower, (a) the Articles of Incorporation and Bylaws of Borrower previously delivered to Lender
remain in full force and effect with no modification or amendments except as disclosed in said Certificate. (1) all representations and warranties previously made to Lender remain true, complete and accurate, and (2) no Event of Default or Potential
Default has occurred and is continuing: 
  
 (E) A
Confirmation of Comfort Letter of even date herewith: 
  
 (F) If requested by Lender, good standing certificates certificates of existence of a recent date for Borrower from the state of its incorporation and each other state in which Borrower conducts its business: 
  

 11 

 (G) Such UCC and other lien searches as Lender shall request, showing no Liens which have
priority over Lender’s first priority security interest in the Collateral: and 
  
 (H) Such other certificates, opinions, instruments and documents (if any) that Lender shall reasonably request. 
  
 12. Notwithstanding the execution of this Amendment and the Note Amendment,
all of the indebtedness evidenced by the Note (as modified by the Note Amendment shall remain in full force and effect and any collateral described in any agreement providing security for any obligation of Borrower so defined to include the Note (as
modified by the Note Amendment) shall remain subject to the liens, pledges, security interests and assignments of any such agreements as security for the indebtedness evidenced by the Note (as modified by the Note Amendment and all other
indebtedness described therein. Nothing herein in this Amendment shall be construed to constitute a novation of the indebtedness evidenced by the Note or to release, satisfy, discharge or otherwise affect or impair in any manner whatsoever (1) the
validity or enforceability of the indebtedness evidenced by the Note (as modified by the Note Amendment); (2) the liens, pledges, security interests, assignments and conveyances affected by the Agreement, the other Loan Documents and any other
agreement securing such Note (as modified by the Note Amendment), or the priority thereof; (3) the liability of any maker, endorser, surety, guarantor or other Person that may now or hereafter be liable under or on account of the Note (as modified
by the Note Amendment) or any agreement securing such Note (as modified by the Note Amendment): or (4) any other security or instrument now or hereafter held by Lender as security for as evidence of any of the above-described indebtedness. In no way
limiting the foregoing. Borrower acknowledges and agrees that the indebtedness evidenced by the Note (as modified by the Note Amendment) is and shall remain secured by the collateral described in the Agreement and the other Loan Documents.

  
 13. In order to induce Lender to enter into this Amendment.
Borrower represents and warrants that: 
  
 (A)
The execution, delivery and performance by Borrower of this Amendment and the Note Amendment within its corporate powers, have been duly authorized by all necessary corporate action and are not in contravention of any law, rule or regulation, or any
judgment, decree, writ, injunction, order to award of any arbitrator, court or governmental authority, or of the terms of Borrower’s articles of incorporation or bylaws, or of any contract or undertaking to which Borrower is a party or by which
Borrower or its property is or may be bound or affected. 
  
 (B) Each of this Amendment and the Note Amendment is the legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with its terms. 
  
 (C) No consent, approval or authorization of or declaration,
registration or filing with any governmental authority or any nongovernmental person or entity, including without limitation any creditor or stockholder of Borrower, is required on the part of Borrower in connection with the execution, delivery and
performance of this Amendment, the Note Amendment or the transactions contemplated hereby or thereby or as a condition to the legality, validity or enforceability of this Amendment or the Note Amendment. 
  
 (D) After giving effect to the amendments to the Agreement
contained in this Amendment, the representations and warranties contained in Article 5 of the Agreement and in the other Loan Documents are true and correct on and as of the date hereof with the same force and effect as if made on and as of the date
hereof, no Event of Default or Potential Default exists or has occurred and is continuing on the date hereof, and no material adverse change has occurred in the financial condition of Borrower since the original date of the Agreement. 
  
 14. If Borrower shall fail to perform or observe any term, covenant or
agreement in this Amendment or any representation or warranty made by Borrower in this Amendment shall prove to have been incorrect in any material respect when made such occurrence shall be deemed to constitute an Event of Default. 
  
 15. This Amendment shall be governed by and construed in accordance with the
laws of the State of Florida. 
  

 12 

 16. Borrower agrees to pay the reasonable fees and expenses of counsel for Lender, in connection with the
negotiation and preparation of this Amendment and the documents referred to herein and the consummation of the transactions contemplated hereby, and in connection with advising Lender as to its rights and responsibilities with respect thereto.

  
 17. Unless otherwise expressly modified or amended hereby, all
terms and conditions of the Agreement shall remain in full force and effect, and the same, as amended hereby, are hereby ratified and confirmed in all respects. From and after the effective date hereof, all references in the Agreement, and any other
document or instrument entered into in connection therewith, to the Agreement shall be deemed to be references to the Agreement as amended by this Amendment. 
  
 18. This Amendment shall inure to and be binding upon and enforceable by Borrower and Lender and their respective successors and assigns. 
  
 19. This Amendment may be executed in one or more counterparts, each of which
when executed and delivered shall constitute an original. All such counterparts shall together be deemed to be one and the same instrument. Further, the parties may execute facsimile copies of this Amendment and the facsimile signature of any such
party shall be deemed an original and fully binding on said party; provided, however, any party executing this Amendment by facsimile signature agrees to promptly provide an original executed copy of this Amendment to Lender.

  
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

 

 13 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, by and through their respective
duly authorized officers as of the day and year first above written. 
  

	 	 	 	 	 BORROWER:

			
	 ATTEST:
	 	 	 	CRESCENT MORTGAGE SERVICES. INC.
					
	By:	 	/s/    Illegible        	 	 	 	By:	 	/s/    ROBERT C. KENKNIGHT        
	 	
	 	 	 	 	

	 Its:
	 	Secretary	 	 	 	 Name:
	 	Robert C. KenKnight
	 	 	 	 	 	 	 Its:
	 	President

  
 [CORPORATE SEAL] 
  
 STATE OF GEORGIA 
  
 COUNTY OF DEKALB 
  
 On this 31st day of
January, 2003, personally appeared Robert C. KenKnight, as President of Crescent Mortgage Services, Inc., a Georgia corporation, and before me executed the attached Fourth Amendment to Mortgage Warehouse Loan and Security Agreement, by and between
Colonial Bank, as Lender, and Crescent Mortgage Services, Inc., as Borrower. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and official seal in the County and State last aforesaid. 
  

	 
	
	/s/    SHELIA BEST
	

	Signature of Notary Public-State of Georgia
	
	Shelia Best
	

	 Print Name: Notary Public, State of Georgia

	 Personally Known ___________________________

	 Produced Identification _______________________

	 Type of Identification: ________________________

  
  
  
 (NOTARIAL SEAL) 
  

 14 

	LENDER:
	COLONIAL BANK
		
	By:	 	/s/     AMY J. NUNNELEY        
	 	

	 Name:
	 	Amy J. Nunneley
	 Its:
	 	Senior Vice President

  
 STATE OF ALABAMA 
  
 COUNTY OF JEFFERSON 
  
 On this 21 day of January, 2003, personally appeared Amy J. Nunneley, as Senior Vice President of Colonial Bank, an Alabama
banking corporation, and before me executed the attached Fourth Amendment to Mortgage Warehouse Loan and Security Agreement, by and between Colonial Bank, as Lender, and Crescent Mortgage Services, Inc., as Borrower. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and official seal in
the County and State last aforesaid. 
  

	 
	
	/s/    Illegible
	

	Signature of Notary Public-State of Georgia
	
	Illegible
	

	 Print Name: Notary Public, State of Georgia

	 Personally Known____________________________

	 Produced Identification________________________

	 Type of Identification:_________________________

  
 (NOTARIAL SEAL)

  

	 	 	 NOTARY PUBLIC STATE OF ALABAMA AT
LARGE
 MY COMMISSION EXPIRES: Dec 23, 2006
 BONDED THRU NOTARY PUBLIC UNDERWRITERS
	 	 

  

 15Fifth Amendment to the Mortgage Warehouse Loan and Security Agreement

 EXHIBIT 10.5 
  
 FIFTH AMENDMENT TO MORTGAGE 
 WAREHOUSE LOAN AND SECURITY AGREEMENT 
  
 This Fifth Amendment to Mortgage Warehouse Loan and Security Agreement (this
“Amendment”), made by and between CRESCENT MORTGAGE SERVICES, INC., a Georgia corporation, as borrower (“Borrower”), and COLONIAL BANK, N.A., a national banking association (f/k/a Colonial Bank), as lender
(“Lender”), is dated as of the 30lh day of September, 2003. 
  
 R E C I T A L S: 
  
 Pursuant to that certain Mortgage Warehouse Loan and Security Agreement dated
as of December 20,1999, as amended by that certain First Amendment to Mortgage Warehouse Loan and Security Agreement dated as of July 31, 2000, that certain Second Amendment to Mortgage Warehouse Loan and Security Agreement dated as of June 25,
2001, that certain Third Amendment to Mortgage Warehouse Loan and Security Agreement dated as of July 31, 2002, and that certain Fourth Amendment to Mortgage Warehouse Loan and Security Agreement dated as of January 31, 2003 (as heretofore amended,
the “Agreement”), Lender made available to Borrower, subject to the terms and conditions thereof, a revolving line of credit loan in the maximum aggregate principal amount not to exceed $40,000,000.00 (the “Line of Credit”),
secured by Borrower’s assignment and pledge to Lender of certain mortgage loans and related collateral, for the purpose of assisting Borrower in its business of originating and making such loans. 
  
 Borrower has requested that Lender agree to extend the scheduled maturity
date of the Line of Credit to June 30, 2004 and to make certain other modifications to the Agreement, and Lender is willing to do so, but only on the express condition, among others, that Borrower enter into this Amendment, pursuant to which the
Agreement shall be amended and modified. 
  
 NOW, THEREFORE, in
consideration of the premises and agreements contained herein, and for good and valuable consideration, the receipt and sufficiency of which are acknowledged by the parties hereto, the parties hereto do hereby agree, each with the other, as follows:

  
 1. If not otherwise defined herein or the context shall not
expressly indicate otherwise, all capitalized terms which are used herein shall have their respective meanings given to them in the Agreement. 
  
 2. Section 1.1 (Defined Terms) of the Agreement is hereby amended as follows: 
  
 (A) By amending and restating the definition of “Adjusted Tangible Net Worth” to read in its
entirety as follows: 
  
 “Adjusted
Tangible Net Worth” shall mean, as of the date of determination, GAAP Net Worth, minus loans and advances owing to Borrower from officers, directors, employees, stockholders and other Affiliates of Borrower (if any), minus
Borrower’s off-balance sheet servicing rights, minus Borrower’s capitalized servicing rights, plus the lesser of (a) eighty percent (80%) of the most recent quarterly Appraised Value of Borrower’s Eligible Servicing
Portfolio (if such an appraisal is obtained), or (b) Borrower’s capitalized servicing rights. 
  
 (B) By amending and restating the definition of “Advance Rate Amount” to read in its entirety as follows: 
  
 “Advance Rate Amount” shall mean (i) with
respect to any Eligible Conforming Mortgage Loan, an amount equal to ninety-nine percent (99%) of the amount to be paid by the Approved Investor for the Mortgage Loan pursuant to a binding Investor Commitment (i.e., “commitment”),
not to exceed the current unpaid principal balance of such Mortgage Loan (i.e., “par”), (ii) with respect to any Eligible Non-Conforming Mortgage Loan, an amount equal to ninety-eight percent (98%) of the lesser of (a) par or (b)
commitment, (iii) with respect to any Eligible Repurchased Mortgage Loan, an 

 
amount equal to ninety percent (90%) of the least of (a) the repurchase price of such Mortgage Loan, (b) the market value of the Property securing such
Mortgage Loan as established by the most recent appraisal or broker’s price opinion (subject to the provisos in subsection (g) of the definition of Eligible Repurchased Mortgage Loan) of the Property securing such Mortgage Loan, or (c) the face
amount of the promissory note evidencing such Mortgage Loan, (iv) with respect to any Eligible Gestation Mortgage Loan, an amount equal to ninety-nine (99%) of commitment, not to exceed par, and (v) with respect to any Eligible Wet Mortgage Loan, an
amount equal to the Advance Rate Amount applicable to the Type of Mortgage Loan supporting the Advance. 
  
 (C) By adding a definition of “Electronic Advance Request” thereto which reads in its entirety as follows: 
  
 “Electronic Advance Request” shall mean an
electronic data transmission made in such manner and in accordance with such procedures as may be established by Lender from time to time and set forth in the Procedural Manual, containing the same information as Exhibit B-l (unless otherwise
directed by Lender). 
  
 (D) By amending, the
definition of “Eligible Repurchased Mortgage Loan” to amend and restate subparagraph (g) thereof to read in its entirety, as follows: 
  
 (g) (i) Borrower has delivered (or caused to be delivered) to Lender those items for such Mortgage Loan described on Exhibit C to
this Agreement prior to the Advance supported by such Mortgage Loan, plus an appraisal of such Mortgage Loan of a type determined as follows: (A) if the Mortgage Loan being repurchased is 9 months old or less, a certified copy of the most recent
appraisal of the property securing such Mortgage Loan, or (B) if the Mortgage Loan being repurchased is more than 9 months old, a broker’s price opinion (“BPO”) which supports the most recent appraised value must be received within 30
days of the Advance Date and any adjustments in the prior Sublimit D Advance will be made at that time, if necessary; provided, however. Lender retains the right to request a current appraisal if the BPO does not support the original
value; and provided, further, Borrower must provide to Lender current (within 45 days) full appraisals on all HUD foreclosures and certain other properties as mutually agreed upon by Lender and Borrower, and an original assignment of
mortgage (or deed of trust) in favor of Lender (in recordable form and which will be recorded at Lender’s option); (ii) Borrower or a third party approved by Lender holds in trust for the Lender those items described in Exhibit D to this
Agreement; and (iii) Borrower has delivered (or caused to be delivered) to Lender, if Lender has so requested in writing, the additional items described on Exhibit D to this Agreement. 
  
 (E) By adding a definition of “GAAP Net Worth”
thereto which reads in its entirety as follows: 
  
 “GAAP Net Worth” shall mean all assets of Borrower, determined in accordance with GAAP, less Total Liabilities. 
  
 (F) By amending and restating the definition of “LIBOR Rate” to read in its entirety as follows: 
  
 “LIBOR Rate” shall mean the rate that
appears on the display designated as page “3750” of the Telerate Service (or such other page as may replace page 3750 of that service) as of 11:00 a.m., Orlando time, on each Banking Day or, if not so reported on such service, as
otherwise quoted by Lender from time to time, as the 30-day LIBOR Rate, adjusted daily with each change in the 30-day LIBOR Rate; provided, however, in no event shall the LIBOR Rate be less than the floor rate per annum equal to 2.50%
(which floor rate may be changed from time to time by Lender after consultation with the Treasury Department of Lender) or greater than the ceiling rate per annum equal to the Prime Rate. 
  

 2 

 (G) By amending and restating the definition of “Maturity Date” to read in its
entirety as follows: 
  
 “Maturity
Date” shall mean June 30, 2004; provided, that upon the written request of Borrower to Lender, Lender may elect to extend the Maturity Date on such terms and conditions as it deems appropriate in its sole discretion. 
  
 (H) By amending and restating the definition of “Prime
Rate” to read in its entirety as follows: 
  
 “Prime Rate” shall mean the fluctuating interest rate per annum announced by Lender from time to time as its Prime Rate as such Prime Rate may change from time to time, adjusted daily with each change in such Prime Rate
(which interest rate is only a benchmark, is purely discretionary and is not necessarily the best or lowest rate charged borrowing customers of Lender); provided, however, in no event shall the Prime Rate be less than the floor rate
per annum equal to 5.50% (which floor rate may be changed from time to time by Lender after consultation with the Treasury Department of Lender). 
  
 (I) By adding a definition of “Procedural Manual” thereto which reads in its entirety as follows: 
  
 “Procedural Manual” shall mean the
procedural manual given to Borrower by Lender relating to the Line of Credit and containing procedures, requirements and guidelines with respect thereto, as the same may be modified, amended or supplemented from time to time by Lender. 

 
 (J) By amending the definition of “Warehouse
Period” to amend and restate clause (iii) thereof to read in its entirety as follows: 
  
 (iii) in the case of any Sublimit C Advance, forty-five (45) days after such Advance Date (provided that the total combined Warehouse
Period under Sublimit A and Sublimit C shall not exceed 90 days and the total combined Warehouse Period under Sublimit E and Sublimit C shall not exceed 120 days); 
  
 3. Section 2.2 (Method of Borrowing) of the Agreement is hereby amended to amend and restate subsections (a) and (b)
thereof to read in their entireties as follows: 
  
 (a) Whenever Borrower desires to request an Advance hereunder, an Authorized Representative shall deliver to Lender written notice of such proposed Advance (an “Advance Request”), each such notice to be given by delivery
(which may be by facsimile transmission unless otherwise directed by Lender) to Lender prior to 11:00 a.m. (Orlando, Florida time), or as may otherwise be permitted or specified in the Procedural Manual as then in effect, on the Banking Day of such
proposed Advance of an Advance Request in the form of Exhibit B-1 (provided, however, Lender may change the form of Advance Request from time to time or require a different form for Advances under Sublimit B). Notwithstanding
the foregoing, if approved by Lender, any such Advance Request under the immediately preceding sentence may be made to Lender via an Electronic Advance Request, prior to 11:00 a.m. (Orlando, Florida time) on the Banking Day of such proposed Advance
and, if required by Lender, followed by delivery to Lender via facsimile transmission, prior to 12:00 noon (Orlando, Florida time), or as may otherwise be permitted or specified in the Procedural Manual as then in effect, on the date of such
proposed Advance, of a written confirmation of such Electronic Advance Request (a “Confirmation of Electronic Advance Request”) in the form of Exhibit B-2 (if Lender requires a Confirmation of Electronic Advance Request and
there is any discrepancy between the schedule of Eligible Mortgage Loans electronically transmitted to Lender and the list of Eligible Mortgage Loans attached to the Confirmation of Electronic Advance Request, Lender shall be entitled to rely solely
on the list attached to the Confirmation of Electronic Advance Request without further investigation or inquiry; otherwise, if Lender does not require a Confirmation of Electronic Advance Request, Lender shall be entitled to rely solely on the
schedule of Mortgage Loans electronically transmitted to Lender). An Advance Request, among other things, shall specify the amount of the 

  

 3 

 
Advance being requested; if applicable, the specific Eligible Mortgage Loans that support the Advance; and the Type of Advance. Each Advance Request shall be
irrevocable. With regard to each Advance, Borrower shall deliver or cause to be delivered to Lender all of the Required Documents referenced in Section 4.3 and, if requested by Lender at any time, all of the Additional Required Documents referenced
in said Section. Lender may change its procedures for Advances (including, without limitation, its procedures relating to Electronic Advance Requests) from time to time upon not less than three (3) Banking Days’ prior notice to Borrower.
Advance Requests not received by Leader by the applicable cut-off time shall be deemed received on the next Banking Day. 
  
 (b) Without in any way limiting Borrower’s obligation to deliver to Lender the original written Advance Request as required by
Section 2.2(a), Lender shall be entitled to rely on and may act without liability upon the basis of each Advance Request made by Borrower via electronic data transmission as permitted by Section 2.2(a) and Lender may make Advances pursuant thereto
prior to receipt by Lender of the Confirmation of Electronic Advance Request. In each case, Borrower waives the right to dispute or hold Lender in any way responsible for any errors or omissions in any electronic Advance Request. If the Advance
Request is made via electronic data transmission as permitted herein, Borrower, by transmitting such electronic Advance Request to Lender, shall be deemed to have made in respect thereto such affirmations, covenants, agreements and certifications to
Lender with regard to the specific Eligible Mortgage Loans supporting the requested Advance as are set forth in the applicable form of Advance Request. If the Advance Request is made via electronic data transmission or facsimile transmission, if
requested by Leader, Borrower shall deliver to Lender, no later than the Banking Day immediately succeeding the date of such electronic data transmission or facsimile transmission, as the case may be, the original Advance Request signed by an
Authorized Representative in the form of Exhibit B-1 (unless, as set forth in Section 2.2(a) above, Lender has changed the form of Advance Request or has required a different form for Advances under Sublimit B). 
  
 4. Section 2.4 (Note) of the Agreement is hereby amended to delete the
term “$55,000,000.00” therefrom and to substitute the term “$40,000,000.00” in lieu thereof. 
  
 5. Section 2.8 (Optional Prepayments) of the Agreement is hereby amended and restated in its entirety to read as follows: 
  
 Section 2.8 Optional Prepayments. 
  
 Borrower shall have the right at any time and from time to
time to prepay outstanding Advances, in whole upon not less than thirty (30) days prior written notice to Lender, or in part without prior notice; provided, however, unless otherwise agreed by Lender in its sole and absolute discretion
(whether by a separate writing or on a case-by-case basis), including such other limits and conditions Lender may require, each partial prepayment must be in the entire amount outstanding of the Advance to which it relates. Unless Lender has
otherwise agreed as aforesaid, Borrower shall, at the time of making such prepayment, designate the Type of Advances being prepaid. If Borrower fails to make such a designation when required, each partial prepayment shall be applied to the reduction
of the Line of Credit (or any Advance outstanding thereunder) as Lender, in its sole discretion, may determine. All prepayments of Advances under this Section 2.8 shall be without premium or penalty. Interest shall be payable in accordance with the
provisions of Section 2.5. 
  
 6. Section 2.9 (Fees) of the
Agreement is hereby amended and restated in its entirety to read as follows; 
  
 Section 2.9 Fees. 
  
 (a) Borrower agrees to pay to Lender a collateral agent fee (the “Collateral Agent Fee”) in the amount of $10.00 per Mortgage Loan for each Mortgage Loan warehoused by Borrower with Lender, payable
monthly in arrears upon receipt by Borrower of a statement from Lender for such Collateral Agent Fee based upon the prior month’s activity and on the dates separately agreed to by 

  

 4 

 
Lender and Borrower. Mortgage Loans that initially are funded under Sublimit B are not charged twice when subsequently funded under Sublimit A or Sublimit E.

  
 (b) Borrower agrees to pay to Lender a
non-usage fee (the “Non-Usage Fee”) at a rate per annum equal to 25 basis points on the difference between actual average usage of the Line of Credit for the applicable calendar quarter and fifty percent (50%) of the Commitment if
the average daily amount outstanding thereunder for such calendar quarter does not exceed fifty percent (50%) of the maximum amount of said Commitment. Such Non-Usage Fee, if any, shall be payable quarterly in arrears upon Borrower’s receipt of
Lender’s statement therefor, and on the Maturity Date. 
  
 (c) Borrower agrees to pay to Lender an endorsement fee (the “Endorsement Fee”) in the amount of $10.00 for each Mortgage Loan that Lender endorses on behalf of Borrower pursuant to Section 4.9 below because such Mortgage Loan is missing Borrower’s endorsement when it is submitted to Lender, payable
monthly in arrears upon receipt by Borrower of a statement from Lender for such Endorsement Fee based upon the prior month’s activity and on the dates separately agreed to by Lender and Borrower. 
  
 (d) In addition to the foregoing fees, Borrower shall pay or
reimburse Lender for any transaction fees payable to the Mortgage Electronic Registration System, Inc. (“MERS”) in connection with the registration of mortgage assignments to Lender if Borrower uses MERS and further, and shall pay or
reimburse Lender for all pass-through costs in connection with the warehouse of Mortgage Loans under Sublimit D (recording costs, etc.) and the use of any electronic data transmission system or service allocable to Borrower if Borrower downloads or
submits data to Lender using electronic data transmission. 
  
 (e) The Fees set forth in this Section 2,9, once paid, shall not be refundable under any circumstances. To the extent any of the Fees set forth in this Section 2.9 have not been paid in accordance with the foregoing
provisions of this Section 2.9 prior to the Maturity Date, they shall be payable in full on the Maturity Date. 
  
 7. Section 6.3 (Special Financial Covenants) of the Agreement is hereby amended and restated in its entirety to read as follows: 
  
 Section 6.3 Special Financial Covenants. 

 
 Borrower hereby covenants and agrees that, as long as any
Obligations remain unpaid or the Commitment hereunder is outstanding, the following special financial covenants shall be applicable to Borrower and tested monthly at the end of each calendar month as set forth below: 
  
 (a) Adjusted Tangible Net Worth. Borrower’s
Adjusted Tangible Net Worth shall not be less than $15,000,000.00. 
  
 (b) Adjusted Leverage Ratio. Borrower’s Adjusted Leverage Ratio shall not be greater than 15.0:1.0. 
  
 (c) Current Ratio. Borrower’s Current Ratio shall not be less than 1.0: 1.0. 
  
 (d) [Intentionally omitted.] 
  
 8. Borrower acknowledges and agrees that if and when Lender implements
“ProMerit” for the electronic submission of data by Borrower to Lender, Borrower will be required to enter into one or more separate agreements with respect thereto. 
  

 5 

 9. This Amendment shall become effective as of the date first above written, provided that Lender shall
have received by such date the following items, all of which must be signed by all appropriate Persons and in form and substance acceptable to Lender in its sole discretion: 
  
 (A) This Amendment executed by Borrower and Lender (whether such parties shall have signed the same or
different counterparts); 
  
 (B) A Fourth
Amendment to Promissory Note executed by Borrower and Lender (the “Note Amendment”) (whether such parties shall have signed the same or different counterparts); 
  
 (C) An executed affidavit, in form satisfactory to Lender, regarding the execution of this Agreement by
Borrower outside the State of Florida; 
  
 (D)
Certificates of even date herewith signed by the President and/or Secretary of Borrower, as appropriate, certifying (1) the authorizing resolutions of Borrower, (1) the Articles of Incorporation and Bylaws of Borrower previously delivered to Lender
remain in full force and effect with no modification or amendments except as disclosed in said Certificate, (1) all representations and warranties previously made to Lender remain true, complete and accurate, and (2) no Event of Default or Potential
Default has occurred and is continuing; 
  
 (E) A
Confirmation of Comfort Letter of even date herewith; 
  
 (F) If requested by Lender, good standing certificates/certificates of existence of a recent date for Borrower from the state of its incorporation and each other state in which Borrower conducts its business; 
  
 (G) Such UCC and other lien searches as Lender shall
request, showing no Liens which have priority over Lender’s first priority security interest in the Collateral; and 
  
 (H) Such other certificates, opinions, instruments and documents (if any) that Lender shall reasonably request. 
  
 10. Notwithstanding the execution of this Amendment and the Note Amendment,
all of the indebtedness evidenced by the Note (as amended by the Note Amendment) shall remain in full force and effect, and any collateral described in any agreement providing security for any obligation of Borrower so defined to include the Note
shall remain subject to the liens, pledges, security interests and assignments of any such agreements as security for the indebtedness evidenced by the Note (as amended by the Note Amendment) and all other indebtedness described therein. Nothing
herein in this Amendment shall be construed to constitute a novation of the indebtedness evidenced by the Note or to release, satisfy, discharge or otherwise affect or impair in any manner whatsoever (1) the validity or enforceability of the
indebtedness evidenced by the Note (as amended by the Note Amendment); (2) the liens, pledges, security interests, assignments and conveyances affected by the Agreement, the other Loan Documents and any other agreement securing such Note (as amended
by the Note Amendment), or the priority thereof; (3) the liability of any maker, endorser, surety, guarantor or other Person that may now or hereafter be liable under or on account of the Note (as amended by the Note Amendment) or any agreement
securing such Note; or (4) any other security or instrument now or hereafter held by Lender as security for as evidence of any of the above-described indebtedness. In no way limiting the foregoing, Borrower acknowledges and agrees that the
indebtedness evidenced by the Note (as amended by the Note Amendment) is and shall remain secured by the collateral described in the Agreement and the other Loan Documents. 
  
 11. In order to induce Lender to enter into this Amendment, Borrower represents and warrants that: 
  
 (A) The execution, delivery and performance by Borrower of
this Amendment and the Note Amendment are within its corporate powers, have been duly authorized by all necessary corporate action and are not in contravention of any law, rule or regulation, or any judgment, decree, writ, injunction, order to award
of any arbitrator, court or governmental authority, or of the terms of Borrower’s articles of incorporation or bylaws, or of any contract or undertaking to which Borrower is a party or by which Borrower or its property is or may be bound or
affected. 
  

 6 

 (B) Each of this Amendment and the Note Amendment is the legal, valid and binding
obligation of Borrower, enforceable against Borrower in accordance with its terms. 
  
 (C) No consent, approval or authorization of or declaration, registration or filing with any governmental authority or any nongovernmental
person or entity, including without limitation any creditor or stockholder of Borrower, is required on the part of Borrower in connection with the execution, delivery and performance of this Amendment, the Note Amendment or the transactions
contemplated hereby or thereby or as a condition to the legality, validity or enforceability of this Amendment or the Note Amendment. 
  
 (D) After giving effect to the amendments to the Agreement contained in this Amendment, the representations and warranties contained in
Article 5 of the Agreement and in the other Loan Documents are true and correct on and as of the date hereof with the same force and effect as if made on and as of the date hereof, no Event of Default or Potential Default exists or has occurred and
is continuing on the date hereof, and no material adverse change has occurred in the financial condition of Borrower since the original date of the Agreement. 
  

12. If Borrower shall fail to perform or observe any term, covenant or agreement in this Amendment, or any representation or warranty made by Borrower
in this Amendment shall prove to have been incorrect in any material respect when made, such occurrence shall be deemed to constitute an Event of Default. 
  
 13. This Amendment shall be governed by and construed in accordance with the laws of the State of Florida. 
  
 14. Borrower agrees to pay the reasonable fees and expenses of counsel for
Lender, in connection with the negotiation and preparation of this Amendment and the documents referred to herein and the consummation of the transactions contemplated hereby, and in connection with advising Lender as to its rights and
responsibilities with respect thereto. 
  
 15. Unless otherwise
expressly modified or amended hereby, all terms and conditions of the Agreement shall remain in full force and effect, and the same, as amended hereby, are hereby ratified and confirmed in all respects. From and after the effective date hereof, all
references in the Agreement, and any other document or instrument entered into in connection therewith, to the Agreement shall be deemed to be references to the Agreement as amended by this Amendment. 
  
 16. This Amendment shall inure to and be binding upon and enforceable by
Borrower and Lender and their respective successors and assigns. 
  
 17. This Amendment may be executed in one or more counterparts, each of which when executed and delivered shall constitute an original. All such counterparts shall together be deemed to be one and the same instrument. Further, the parties
may execute facsimile copies of this Amendment and the facsimile signature of any such party shall be deemed an original and fully binding on said party; provided, however, any party executing this Amendment by facsimile signature
agrees to promptly provide an original executed copy of this Amendment to Lender. 
  
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 7 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, by and through their respective
duly authorized officers as of the day and year first above written. 
  

	 	 	 	 	 BORROWER:

			
	 ATTEST:
	 	 	 	CRESCENT MORTGAGE SERVICES, INC.
					
	By:	 	/s/    Illegible        	 	 	 	By:	 	/s/    ROBERT C. KENKNIGHT        
	 	
	 	 	 	 	

	 Its:
	 	Secretary	 	 	 	 Name:
	 	Robert C. KenKnight
	 	 	 	 	 	 	 Its:
	 	President

  
 [CORPORATE SEAL] 
  
 STATE OF GEORGIA 
  
 COUNTY OF DEKALB 
  
 On this              day of September, 2003, personally appeared Robert C. KenKnight,
as President of Crescent Mortgage Services, Inc., a Georgia corporarion, and before me executed the attached Fifth Amendment to Mortgage Warehouse Loan and Security Agreement, by and between Colonial Bank, N,A., as Lender, and Crescent
Mortgage Services, Inc., as Borrower. 
  
 IN WITNESS WHEREOF,
I have hereunto set my hand and official seal in the County and State last aforesaid. 
  

	 	 	/s/    Illegible        
	 	

	 	 	Signature of Notary Public state of Georgia

  

	 	 	/s/    Illegible        
	 	

	 	 	 Print Name: Notary Public, State of Georgia

	 	 	 Personally Known              OR Produced Identification
                    

	 	 	 Type of Identification:
                                        
                                

		
	 	 	(NOTARIAL SEAL)

  
 My Commission Expires
4/14/06 
  

 8 

	LENDER;
	
	COLONIAL BANK, N.A.
		
	 By:
	 	 
	 	

	 Name:
	 	Amy J. Nunneley
	 Its:
	 	Senior Vice President

  
 STATE OF ALABAMA 
  
 COUNTY OF JEFFERSON 
  
 On this              day of September, 2003, personally
appeared Amy J. Nunneley, as Senior Vice President of Colonial Bank, N.A., a national banking association, and before me executed die attached Fifth Amendment to Mortgage Warehouse Loan and Security Agreement, by and between Colonial
Bank, N.A., as Lender, and Crescent Mortgage Services, Inc., as Borrower. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and official seal in the County and State last aforesaid. 
  

	 	 	 
	 	

	 	 	Signature of Notary Public-State of Alabama

  

	 	 	 
	 	

	 	 	 Print Name: Notary Public, State of Alabama

	 	 	 Personally Known              OR Produced Identification
                    

	 	 	 Type of Identification:
                                        
                                

		
	 	 	(NOTARIAL SEAL)

  

 9

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