Document:

Exhibit 10.2

 

AMENDED AND RESTATED GUARANTY 

 

AMENDED AND RESTATED
GUARANTY, dated as of March 31, 2016 (as amended, supplemented, or otherwise modified from time to time, this “Guaranty”),
made by PennyMac Mortgage Investment Trust, a Maryland real estate investment trust (“PMIT”), and PennyMac Operating
Partnership, L.P., a Delaware limited partnership (“POP” and, together with PMIT, each, a “Guarantor”
and collectively, the “Guarantors”), in favor of Credit Suisse First Boston Mortgage Capital, LLC (the “Buyer”).

 

RECITALS

 

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

 

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

 

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

 

WHEREAS, the Buyer,
PennyMac Holdings, PMC, POP (collectively, the “Sellers”), PMC REO Financing Trust, an asset subsidiary (the
“REO Subsidiary” and together with the Sellers, the “Seller Parties”) and the Guarantors
are entering into that certain Master Repurchase Agreement dated as of March 31, 2016 (as amended, supplemented or otherwise
modified from time to time, the “Repurchase Agreement”), which amends, restates and consolidates the Existing
Master Repurchase Agreements;

 

WHEREAS, PMIT and POP
previously entered into a Guaranty in favor of Buyer dated November 2, 2010 (the “Existing Regular Way Guaranty”).

 

WHEREAS, PMIT previously
entered into a Guaranty in favor of Buyer dated June 8, 2011 (the “Existing NPL Guaranty”).

 

WHEREAS, PMIT and POP
previously entered into a Guaranty in favor of Buyer dated March 29, 2012 (the “Existing Internal Rewarehouse Guaranty”
and together with the Existing Regular Way Guaranty and the Existing NPL Guaranty, the “Existing Guaranties”).

 

 

    	 	- 1 -	 

     

    

WHEREAS, the parties
hereto have requested that the Existing Guaranties be consolidated, amended and restated, in their entirety, on the terms and subject
to the conditions set forth herein;

 

WHEREAS, it is a condition
precedent to the obligation of the Buyer to continue the Transactions under the Repurchase Agreement that Guarantors shall have
executed and delivered this Guaranty to the Buyer;

 

NOW,
THEREFORE, in consideration of the foregoing premises, to induce the Buyer to enter into the Repurchase Agreement and to
enter into Transactions thereunder, Guarantors hereby agree with the Buyer, as follows:

 

1.Defined Terms.

 

(a)Capitalized terms
used but not defined herein shall have the meanings assigned to them in the Repurchase Agreement.

 

(b)For purposes of
this Guaranty, “Obligations” shall mean all obligations and liabilities of the Seller Parties to the Buyer, whether
direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under,
or out of or in connection with the Repurchase Agreement and any other Program Agreements 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 a party to the Transaction pursuant to the terms of the Program Agreements and costs of enforcement of this Guaranty) or otherwise.

 

2.Guaranty.

 

(a)Guarantors hereby
unconditionally and irrevocably guarantee to the Buyer the prompt and complete payment and performance by the Seller Parties when
due (whether at the stated maturity, by acceleration or otherwise) of the Obligations.

 

(b)Guarantors further
agree 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, Guarantors 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 the Seller Parties may be free from any Obligations.

 

(c)No payment or
payments made by a Seller Party or any other Person or received or collected by the Buyer from a Seller Party 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 Guarantors
hereunder which shall, notwithstanding any such payment or payments, remain liable for the amount of the Obligations until the
Obligations are paid in full.

 

    	 	- 2 -	 

     

    

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

 

3.Right of Set-off.
The Buyer is hereby irrevocably authorized at any time and from time to time without notice to Guarantors, any such notice being
hereby waived by Guarantors, to set off and appropriate and apply any and all monies and other property of Guarantors, 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 any the Guarantor, or any part thereof in such amounts
as the Buyer may elect, on account of the Obligations and liabilities of Guarantors hereunder and claims of every nature and description
of the Buyer against either Guarantor, in any currency, whether arising hereunder, under the Repurchase Agreement or otherwise,
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 Guarantors 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 paragraph are in addition to other rights and remedies (including, without limitation, other rights
of set-off) which the Buyer may have.

 

4.Subrogation.
Notwithstanding any payment or payments made by either Guarantor hereunder or any set-off or application of funds of either Guarantor
by the Buyer, either Guarantor shall not be entitled to be subrogated to any of the rights of the Buyer against the Seller Parties
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 either Guarantor seek or be entitled to seek any contribution or reimbursement from the Seller Parties or any other guarantor
in respect of payments made by either Guarantor hereunder, until all amounts owing to the Buyer by the Seller Parties on account
of the Obligations are paid in full and the Repurchase Agreement is terminated. If any amount shall be paid to either Guarantor
on account of such subrogation rights at any time when all of the Obligations shall not have been paid in full, such amounts shall
be held by such Guarantor for the benefit of Buyer, segregated from other funds of such Guarantor, and shall, forthwith upon receipt
by such Guarantor, be turned over to the Buyer in the exact form received by such Guarantor (duly indorsed by such Guarantor to
the Buyer, if required), to be applied against the Obligations, whether matured or unmatured, in such order as the Buyer may determine.

 

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5.Amendments,
etc. with Respect to the Obligations. Each Guarantor shall remain obligated hereunder notwithstanding that, without any reservation
of rights against either Guarantor, and without notice to or further assent by Guarantors, 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 Program Agreements and any other document
in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, pursuant to its terms and 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 have no 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 any Guarantor, the Buyer may, but shall be under no obligation
to, make a similar demand on the Seller Parties or any other guarantor, and any failure by the Buyer to make any such demand or
to collect any payments from the Seller Parties or any such guarantor or any release of the Seller Parties or such other guarantor
shall not relieve any 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 any Guarantor. For the purposes hereof “demand” shall
include the commencement and continuance of any legal proceedings.

 

6.Guaranty Absolute and Unconditional.

 

(a)Each 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 the Seller Parties or Guarantors, on the one hand, and the Buyer, on the other, shall likewise be conclusively presumed
to have been had or consummated in reliance upon this Guaranty. Each Guarantor waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the Seller Parties or Guarantors with respect to the Obligations. 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, the other Program Agreements, any of the Obligations or any 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 the Seller Parties against
the Buyer, or (iii) any other circumstance whatsoever (with or without notice to or knowledge of the Seller Parties or Guarantors)
which constitutes, or might be construed to constitute, an equitable or legal discharge of the Seller Parties for the Obligations,
or of any Guarantor under this Guaranty, in bankruptcy or in any other instance. When pursuing its rights and remedies hereunder
against either Guarantor, the Buyer may, but shall be under no obligation, to pursue such rights and remedies that they may have
against the Seller Parties 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 the Seller Parties 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 the Seller Parties or any such other Person or any such collateral security, guarantee
or right of offset, shall not relieve any 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 either Guarantor. This Guaranty shall remain in
full force and effect and be binding in accordance with and to the extent of its terms upon Guarantors and their successors and
assigns thereof, and shall inure to the benefit of the Buyer, and successors, indorsees, transferees and assigns, until all the
Obligations and the obligations of Guarantors under this Guaranty shall have been satisfied by payment in full, notwithstanding
that from time to time during the term of the Repurchase Agreement the Seller Parties may be free from any Obligations.

 

    	 	- 4 -	 

     

    

(b)Without limiting the generality of
the foregoing, each Guarantor hereby agrees, acknowledges, and represents and warrants to the Buyer as follows:

 

(i)Such Guarantor
hereby waives any defense arising by reason of, and any and all right to assert against the Buyer any claim or defense based upon,
an election of remedies by the Buyer which in any manner impairs, affects, reduces, releases, destroys and/or extinguishes such
Guarantor’s subrogation rights, rights to proceed against the Seller Parties or any other guarantor for reimbursement or
contribution, and/or any other rights of Guarantors to proceed against the Seller Parties, against any other guarantor, or against
any other person or security.

 

(ii)Such Guarantor
is presently informed of the financial condition of the Seller Parties and of all other circumstances which diligent inquiry would
reveal and which bear upon the risk of nonpayment of the Obligations. Such Guarantor hereby covenants that it will make its own
investigation and will continue to keep itself informed of each Seller Party’s financial condition, the status of other guarantors,
if any, of all other circumstances which bear upon the risk of nonpayment and that it will continue to rely upon sources other
than the Buyer for such information and will not rely upon the Buyer for any such information. Absent a written request for such
information by such Guarantor to the Buyer, such Guarantor hereby waives its right, if any, to require the Buyer to disclose to
such Guarantor any information which the Buyer may now or hereafter acquire concerning such condition or circumstances including,
but not limited to, the release of or revocation by any other guarantor.

 

(iii)Such Guarantor
has independently reviewed the Repurchase Agreement and related agreements and has made an independent determination as to the
validity and enforceability thereof, and in executing and delivering this Guaranty to the Buyer, such Guarantor is not in any manner
relying upon the validity, and/or enforceability, and/or attachment, and/or perfection of any Liens or security interests of any
kind or nature granted by the Seller Parties or any other guarantor to the Buyer, now or at any time and from time to time in the
future.

 

7.Reinstatement.
This Guaranty shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof,
of any of the Obligations is rescinded or must otherwise be restored or returned by the Buyer upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Seller Parties or upon or as a result of the appointment of a receiver, intervenor
or conservator of, or trustee or similar officer for, the Seller Parties or any substantial part of their property, or otherwise,
all as though such payments had not been made.

 

    	 	- 5 -	 

     

    

8.Payments.
Each Guarantor hereby agrees that the 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, each Guarantor agrees that, as between
such Guarantor and Buyer, the Obligations may be declared to be due in accordance with the terms of the Repurchase Agreement 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 Party and that, in the event of any such declaration (or attempted declaration), such Obligations
shall forthwith become due by each Guarantor for purposes of this Guaranty.

 

10.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.

 

11.Headings.
The paragraph 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.

 

12.No Waiver;
Cumulative Remedies. The Buyer shall not by any act (except by a written instrument pursuant to paragraph 13 hereof), 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. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any rights or remedies provided by law.

 

13.Waivers and
Amendments; Successors and Assigns; Governing Law. None of the terms or provisions of this Guaranty may be waived, amended,
supplemented or otherwise modified except by a written instrument executed by Guarantors and the Buyer, provided that any provision
of this Guaranty may be waived by the Buyer in a letter or agreement executed by the Buyer or by facsimile or electronic transmission
from the Buyer to Guarantors. This Guaranty shall be binding upon the personal representatives, successors and assigns of Guarantors
and shall inure to the benefit of the Buyer and its respective successors and assigns.

 

    	 	- 6 -	 

     

    

14.Notices.
Notices delivered in connection with this Guaranty shall be given in accordance with Section 20 of the Repurchase Agreement.

 

15.Jurisdiction.

 

(a)THIS GUARANTY
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

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

 

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

 

17.Acknowledgments.
Each Guarantor hereby acknowledges that:

 

(a)such Guarantor
has been advised by counsel in the negotiation, execution and delivery of this Guaranty and the other Program Agreements;

 

(b)the Buyer does
not have any fiduciary relationship to such Guarantor, such Guarantor does not have any fiduciary relationship to Buyer and the
relationship between the Buyer and such Guarantor is solely that of surety and creditor; and

 

(c)no joint venture
exists between the Buyer and such Guarantor or among the Buyer, the Seller Parties and such Guarantor.

 

18.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.

 

19.Amendment and
Restatement. The terms and provisions of the Existing Guaranty shall be amended and restated in their entirety by the terms
and provisions of this Guaranty.

 

    	 	- 7 -	 

     

    

20.Joint and Several
Liability. Each Guarantor hereby acknowledges and agrees that such Guarantor shall be jointly and severally liable for all
representations, warranties, covenants, obligations and indemnities of the Guarantors hereunder.

 

 

 

[SIGNATURES COMMENCE ON THE FOLLOWING PAGE]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

	 	 PENNYMAC MORTGAGE INVESTMENT TRUST, as a Guarantor

 

 

By:/s/ Pamela Marsh

Name:Pamela Marsh

Title:Managing Director, Treasurer

 

 

PENNYMAC OPERATING PARTNERSHIP,
L.P., as a Guarantor

 

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

 

 

By:/s/ Pamela Marsh

Name: Pamela Marsh

Title:Managing Director, Treasurer

 

 

 

 

 

 

 

Signature Page to the Amended and Restated
GuarantyExhibit 10.3

 

 

 

 

 

 

AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

 

 

CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL
LLC, as buyer

(“Buyer”), and

 

 

PENNYMAC OPERATING PARTNERSHIP, L.P., as seller
(“Seller”), and

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST, as
guarantor (“Guarantor”)

 

 

 

 

 

Dated March 31, 2016

 

 

 

 

    	 	 	 

     

    

 

 

TABLE OF CONTENTS

 

 

	 	 	Page
	 	 	 
	1.	Applicability	1
	2.	Definitions	1
	3.	Program; Initiation of Transactions	19
	4.	Repurchase	21
	5.	Price Differential	22
	6.	Margin Maintenance	22
	7.	Income Payments	23
	8.	Security Interest	24
	9.	Payment and Transfer	25
	10.	Conditions Precedent	25
	11.	Program; Costs	29
	12.	Servicing	30
	13.	Representations and Warranties	31
	14.	Covenants	37
	15.	Events of Default	43
	16.	Remedies Upon Default	46
	17.	Reports	48
	18.	Repurchase Transactions	52
	19.	Single Agreement	52
	20.	Notices and Other Communications	53
	21.	Entire Agreement; Severability	54
	22.	Non assignability	54
	23.	Set-off	55

 

 

    	 	-i-	 

     

    

 

 

 

	24.	Binding Effect; Governing Law; Jurisdiction	55
	25.	No Waivers, Etc.	56
	26.	Intent	56
	27.	Disclosure Relating to Certain Federal Protections	57
	28.	Power of Attorney	57
	29.	Buyer May Act Through Affiliates	58
	30.	Indemnification; Obligations	58
	31.	Counterparts	59
	32.	Confidentiality	59
	33.	Recording of Communications	60
	34.	Commitment Fee	60
	35.	Condition Subsequent	60
	36.	Periodic Due Diligence Review	61
	37.	Approval of Underlying Repurchase Counterparties and Servicers	61
	38.	Authorizations	62
	39.	Acknowledgement Of Anti-Predatory Lending Policies	63
	40.	Documents Mutually Drafted	63
	41.	Conflicts	63
	42.	General Interpretive Principles	63
	43.	Agency and Allocation Agreement	64
	44.	Reaffirmation of Guaranty	64
	45.	Amendment and Restatement	64

 

 

SCHEDULES

 

Schedule 1 - Representations and
Warranties

 

Part I: with Respect to Purchased
Mortgage Loans

 

 

    	 	-ii-	 

     

    

 

 

Part II: with Respect to Underlying Repurchase Transactions

 

Schedule 2 – Authorized Representatives

 

EXHIBITS

 

Exhibit A – Form of Purchase
Confirmation for Exception Mortgage Loans

 

Exhibit B – Form of Mortgage
Loan Schedule

 

Exhibit C – Form of Servicing
Renewal Letter

 

Exhibit D – Form of Power of
Attorney

 

Exhibit E – Litigation

 

Exhibit F – Officer’s
Certificate

 

Exhibit G – Seller’s
and Guarantor’s Tax Identification Numbers

 

Exhibit H – Existing Indebtedness

 

Exhibit I – Escrow Instruction
Letter

 

Exhibit J – Form of Servicer
Notice and Pledge

 

Exhibit K – Form of Servicer
Notice

 

 

 

 

 

 

 

 

 

 

 

    	 	-iii-	 

     

    

 

This is an AMENDED AND
RESTATED MASTER REPURCHASE AGREEMENT, dated as of March 31, 2016, by and among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC
(the “Buyer”), PENNYMAC OPERATING PARTNERSHIP, L.P. (the “Seller”) and PENNYMAC MORTGAGE
INVESTMENT TRUST (the “Guarantor”).

 

The Buyer, Seller and
Guarantor previously entered into a Master Repurchase Agreement, dated as of September 28, 2012 (the “Existing Master
Repurchase Agreement”).

 

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

 

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

 

1.Applicability

 

From time to time the
parties hereto may enter into transactions in which Seller agrees to transfer to Buyer Mortgage Loans (as hereinafter defined)
on a servicing released basis against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller
such Mortgage Loans on a servicing released basis at a date certain or on demand, against the transfer of funds by Seller. This
Agreement is a commitment by Buyer to engage in the Transactions as set forth herein up to the Maximum Committed Purchase Price;
provided, that Buyer shall have no commitment to enter into any Transaction requested that would result in the aggregate Purchase
Price of then-outstanding Transactions exceeding the Maximum Committed Purchase Price, and in no event shall the aggregate Purchase
Price of outstanding Transactions exceed the Maximum Purchase Price at any time. Each such transaction shall be referred to herein
as a “Transaction” and, unless otherwise agreed in writing, shall be governed by this Agreement, including any
supplemental terms or conditions contained in any annexes identified herein, as applicable hereunder.

 

2.Definitions

 

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

 

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

 

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

 

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

 

    	 	-1-	 

     

    

ii.The repurchase
agreement contains a back-up grant of security interest in each related Mortgage Loan and Servicing Rights to Seller and broad
subordination language, in each case, similar in form and substance to the security interest granted to Buyer in Section 8
hereof, and the repurchase agreement or an ancillary document thereto provides for a provision or instruction that, (i) unless
such Mortgage Loan is a Wet-Ink Mortgage Loan, the Mortgage File in respect of such Mortgage Loan be delivered by the Underlying
Repurchase Counterparty directly to Buyer or Buyer’s designee and (ii) if such Mortgage Loan is a Wet-Ink Mortgage Loan,
the Settlement Agent has been instructed to deliver or cause the delivery of the related Mortgage File to Buyer or Buyer’s
designee within the prescribed time period;

 

iii.The repurchase
agreement contains a broad grant of a power of attorney to Seller and Seller’s attorneys-in-fact;

 

iv.The repurchase
agreement grants to Seller and its designee or repledgee the right to immediately terminate the Underlying Repurchase Counterparty’s
right or any third party servicer’s right to service the Mortgage Loans upon the occurrence of an Event of Default hereunder;

 

v.The repurchase
agreement provides broad due diligence and inspection rights to Seller and its repledgees;

 

vi.The Underlying
Electronic Tracking Agreements or other Underlying Repurchase Documents provide that the Underlying Repurchase Counterparty gives
Buyer, as repledgee thereunder, the authority, following an Event of Default, to change fields in the MERS® System as appropriate,
including, without limitation, changing the “interim funder” field to insert parties with which Seller enters into
financing arrangements including repurchase agreements with respect to such Mortgage Loans.

 

vii.The Underlying
Repurchase Documents have not been assigned by Seller, and Seller has not granted a security interest in the Underlying Repurchase
Documents, to any party;

 

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

 

ix.The Underlying
Repurchase Documents contain events of default substantially similar to the events of default contained in this Agreement; and

 

    	 	-2-	 

     

    

x.All of the representations
and warranties set forth on Schedule 1, Part 2 are true and correct in all material respects.

 

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

 

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

 

“Adjusted Tangible
Net Worth” has the meaning assigned to such term in the Pricing Side Letter.

 

“Affiliate”
means, with respect to any Person, any “affiliate” of such Person, as such term is defined in the Bankruptcy Code;
provided, however, that any entity that is otherwise not directly or indirectly owned or controlled by Seller or Guarantor shall
not be deemed an “Affiliate” for the purposes of this definition.

 

“Aged Loan”
means an Aged 60 Day, an Aged 75 Day or an Aged 90 Day Loan.

 

“Aged Non-Agency
QM Mortgage Loan” has the meaning assigned to such term in the Pricing Side Letter.

 

“Aged 60 Day
Loan” means a Mortgage Loan which has been subject to a Transaction hereunder for a period of greater than 30 days but
not greater than 60 days.

 

“Aged 75 Day
Loan” means a Mortgage Loan other than a Non-Agency QM Mortgage Loan which has been subject to a Transaction hereunder
for a period of greater than 60 days but not greater than 75 days.

 

    	 	-3-	 

     

    

“Aged 90 Day
Loan” means a Mortgage Loan other than a Non-Agency QM Mortgage Loan which has been subject to a Transaction hereunder
for a period of greater than 75 days but not greater than 90 days.

 

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

 

“Agency Mortgage
Loan” means a Conforming Mortgage Loan, a Conforming High LTV Loan, a FHA Loan and a VA Loan.

 

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

 

“Aging Limit”
has the meaning assigned to such term in the Pricing Side Letter.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Business Day”
means any day other than (a) a Saturday or Sunday or (b) a day on which the New York Stock Exchange, the Federal Reserve
Bank of New York or the Custodian is authorized or obligated by law or executive order to be closed.

 

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

 

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

 

    	 	-4-	 

     

    

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

 

“Change in Control”
means:

 

(a)any transaction
or event as a result of which Guarantor ceases to own, beneficially or of record, 100% of the stock of Seller;

 

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

 

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

 

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

 

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

 

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

 

    	 	-5-	 

     

    

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

 

“Conforming
High LTV Loan” means a Conforming Mortgage Loan with an LTV of 95% or higher but not to exceed 135%.

 

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

 

“Custodial Agreement”
means each custodial agreement among an Underlying Repurchase Counterparty, Seller and Custodian, as each may be amended from time
to time, and each in the form and substance approved by Buyer in writing in its sole discretion and the related Custodial Repledgee
Information Notice.

 

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

 

“Custodial Repledgee
Information Notice” means the repledgee information notice delivered pursuant to the applicable Custodial Agreement.

 

“Custodian”
means Deutsche Bank Trust Company Americas or such other party approved in writing by Buyer, which approval shall not be unreasonably
withheld.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-6-	 

     

    

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

 

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

 

“ETA Repledgee
Information Notice” means the repledgee information notice delivered pursuant to the applicable Underlying Electronic
Tracking Agreement.

 

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

 

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

 

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

 

    	 	-7-	 

     

    

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-8-	 

     

    

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

 

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

 

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

 

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

 

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

 

“Guarantor”
means PennyMac Mortgage Investment Trust, in its capacity as guarantor under the Guaranty.

 

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

 

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

 

    	 	-9-	 

     

    

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-10-	 

     

    

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

 

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

 

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

 

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

 

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

 

“Maximum Committed
Purchase Price” means the “Maximum External Rewarehouse Committed Purchase Price” as defined in the Pricing
Side Letter.

 

“Maximum Purchase
Price” means the “Maximum External Rewarehouse Purchase Price” as defined in the Pricing Side Letter.

 

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

 

“MERS Identification
Number” means the mortgage identification number for any Mortgage Loan registered with MERS on the MERS® System.

 

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

 

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

 

“Monthly Summary
Report” means the report comprised of a “scorecard” and a “report card” in form and substance
mutually agreed upon by Buyer and Seller, together with such other documents as mutually agreed upon by Buyer and Seller, with
respect to each of Seller’s customers.

 

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

 

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

 

    	 	-11-	 

     

    

“Mortgage File”
means, with respect to a Mortgage Loan, the documents and instruments relating to such Mortgage Loan and set forth in an exhibit
to the applicable Custodial Agreement.

 

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

 

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

 

“Mortgage Loan”
means any closed Agency Mortgage Loan or Non-Agency QM Mortgage Loan, which is a fixed or floating-rate, one-to-four-family residential
mortgage loan evidenced by a promissory note and secured by a first lien mortgage, which satisfies the requirements set forth in
the Underwriting Guidelines and Section 13(b) hereof.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-12-	 

     

    

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

 

“Non-Agency
QM Mortgage Loan” means a Mortgage Loan that (a) does not meet the criteria for an Agency Mortgage Loan; (b) meets all
applicable criteria as set forth in the Underwriting Guidelines and (c) is otherwise acceptable to Buyer in its sole discretion.

 

“Non-Performing
Mortgage Loan” means (a) any Mortgage Loan for which any payment of principal or interest is more than thirty (30)
days past due, (b) any Mortgage Loan with respect to which the related Mortgagor is in bankruptcy or (c) any Mortgage
Loan with respect to which the related Mortgaged Property is in foreclosure.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-13-	 

     

    

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

 

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

 

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

 

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

 

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

 

“Pricing Side
Letter” means the amended and restated letter agreement dated as of the date hereof, among Buyer, Seller, PennyMac Corp.,
PennyMac Holdings, LLC, PMC REO Financing Trust and the Guarantor, as the same may be amended from time to time.

 

“Program Agreements”
means, collectively, this Agreement, the Pricing Side Letter, the Guaranty, each Custodial Agreement, each Underlying Electronic
Tracking Agreement for each Underlying Repurchase Counterparty, the Power of Attorney, the Servicing Agreement, if any, the Servicer
Notice or the Servicer Notice and Pledge, as applicable, the Custodial Repledgee Information Notices, the ETA Repledgee Information
Notices, and, with respect to each Exception Mortgage Loan, a Purchase Confirmation.

 

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

 

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

 

“Purchase Confirmation”
means, with respect to an Exception Mortgage Loan, a confirmation of a Transaction, in the form attached as Exhibit A
hereto.

 

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

 

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

 

(a) on the Purchase Date,
the applicable Purchase Price Percentage multiplied by the lesser of either: (x) the Market Value of such Purchased Mortgage Loan
or (y) the outstanding principal amount thereof as set forth on the related Mortgage Loan Schedule;

 

    	 	-14-	 

     

    

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

 

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

 

“Purchased Mortgage
Loans” means the collective reference to Mortgage Loans together with the Repurchase Assets related to such Mortgage
Loans transferred by Seller to Buyer in a Transaction hereunder, listed on the related Mortgage Loan Schedule identified in the
Transaction Request and uploaded to the Buyer’s file transfer protocol website, and which such Mortgage Loans the Custodian
has been or will be instructed to hold for the benefit of Buyer pursuant to the applicable Custodial Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Repurchase
Date” means the earliest of (a) the Termination Date, (b) the date set forth in the applicable Purchase Confirmation
with respect to an Exception Mortgage Loan, (c) the date determined by application of Section 16 hereof, (d) the date that is one
year from the Purchase Date and if such date is not a Business Day, the immediately preceding Business Day, or (e) any other date
requested by Seller upon one (1) Business Day’s prior written notice subject to Section 4 hereof.

 

    	 	-15-	 

     

    

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

 

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

 

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

 

“Responsible
Officer” means as to any Person, the chief executive officer or, with respect to financial matters, the chief financial
officer of such Person. The Responsible Officers of Seller as of the date hereof are listed on Schedule 2 hereto.

 

“Restricted
Cash” means for any Person, any amount of cash of such Person that is contractually required to be set aside, segregated
or otherwise reserved.

 

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

 

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

 

“Seller”
means PennyMac Operating Partnership, L.P. or its permitted successors and assigns.

 

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

 

“Servicer Notice”
means the notice to the Servicer, which Servicer shall be a third party other than an Underlying Repurchase Counterparty or Seller,
substantially in the form of Exhibit K hereto.

 

“Servicer Notice
and Pledge” means the notice to and pledge by the Servicer if the Servicer is an affiliate of the Seller substantially
in the form of Exhibit J hereto.

 

“Servicing Agreement”
means any servicing agreement approved by Buyer in writing.

 

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

 

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

 

    	 	-16-	 

     

    

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

 

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

 

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

 

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

 

“Take-out Investor”
means (a) an Agency, (b) PennyMac Corp. or (c) any other institution which has made a Take-out Commitment and has been approved
by Buyer.

 

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

 

“Test Period”
means any one fiscal quarter.

 

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

 

“Transaction
Request” means a request via email from Seller to Buyer notifying Buyer that Seller wishes to enter into a Transaction
hereunder that indicates that it is a Transaction Request under this Agreement.

 

    	 	-17-	 

     

    

“Trust Receipt”
means, with respect to any Transaction as of any date, a receipt in the form attached as an exhibit to the applicable Custodial
Agreement, which shall be issued and delivered to Buyer in its capacity as repledgee pursuant to the applicable Custodial Agreement.

 

“Underlying
Electronic Tracking Agreement” means, to the extent applicable, each Electronic Tracking Agreement among an Underlying
Repurchase Counterparty, Seller, MERS and MERSCORP Holdings, Inc., as the same may be amended from time to time, together
with the related ETA Repledgee Information Notice executed by Seller, MERS, MERSCORP Holdings, Inc. and Buyer.

 

“Underlying
Interest Rate Protection Agreement” means, with respect to any or all of the Purchased Mortgage Loans, any short sale
of a US Treasury Security, or futures contract, or mortgage related security, or Eurodollar futures contract, or options related
contract, or interest rate swap, cap or collar agreement, or similar arrangement providing for protection against fluctuations
in interest rates or the exchange of nominal interest obligations, either generally or under specific contingencies, entered into
by Underlying Repurchase Counterparty.

 

“Underlying
Repurchase Counterparty” means the counterparty to an Underlying Repurchase Transaction, who has previously been approved
by Buyer in writing in its sole discretion in accordance with the provisions of Section 37 hereof, that has sold, or concurrently
with a purchase of a Mortgage Loan by Buyer hereunder, will sell, such Mortgage Loan to Seller.

 

“Underlying
Repurchase Documents” means the repurchase agreement, pricing letter, the applicable Custodial Agreement, the applicable
Underlying Electronic Tracking Agreement, confirmations and all documents ancillary thereto that evidence an Underlying Repurchase
Transaction in the form and substance approved by Buyer in writing in its sole discretion with any material modifications approved
by Buyer in writing in its sole discretion (excluding provisions related to the price or pricing rate of such Underlying Repurchase
Transactions, which shall not be subject to Buyer review or approval).

 

“Underlying
Repurchase Transaction” means a transaction between Seller and an Underlying Repurchase Counterparty whereby the Underlying
Repurchase Counterparty sells one or more Mortgage Loans to Seller against the transfer of funds by Seller, with the simultaneous
agreement by Seller to transfer to such Underlying Repurchase Counterparty such Mortgage Loans at a date certain against the transfer
of funds by such Underlying Repurchase Counterparty, which Mortgage Loans are concurrently or consecutively purchased by Buyer
hereunder.

 

“Underwriting
Guidelines” means, as applicable, the Fannie Mae Single-Family Selling and Servicing Guide, the Freddie Mac Single-Family
Seller/Servicer Guide, FHA Underwriting Guidelines or VA Underwriting Guidelines and such other guidelines as are identified and
approved in writing by Buyer.

 

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

 

    	 	-18-	 

     

    

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

 

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

 

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

 

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

 

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

 

“Warehouse Facility”
means a mortgage loan warehouse facility, warehouse line of credit (including both on and off balance sheet facilities), and any
other such facility with terms and conditions similar to the terms and conditions of this Agreement and the purpose of which is
to fund the origination and/or purchase of newly originated Mortgage Loans pending sale or securitization.

 

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

 

“Wet-Ink Mortgage
Loan” means a Mortgage Loan which Seller is selling to Buyer simultaneously with the origination thereof.

 

3.Program;
Initiation of Transactions

 

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

 

    	 	-19-	 

     

    

b.Seller shall request
that Buyer enter into a Transaction by delivering (i) to Buyer, a Transaction Request on or before 3:00 p.m. (New York City time)
on the Purchase Date for Transactions involving Wet-Ink Mortgage Loans and one (1) Business Day prior to the proposed Purchase
Date for Transactions involving all Mortgage Loans other than Wet-Ink Mortgage Loans, and (ii) to Buyer and Custodian a Request
for Certification and related Mortgage Loan Schedule, in accordance with the applicable Custodial Agreement. In the event the Mortgage
Loan Schedule provided by Seller contains erroneous computer data, is not formatted properly or the computer fields are otherwise
improperly aligned, Buyer shall provide written or electronic notice to Seller describing such error and Seller shall correct the
computer data, reformat or properly align the computer fields itself and resubmit the Mortgage Loan Schedule as required herein.

 

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

 

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

 

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

 

 

 

 

 

    	 	-20-	 

     

    

f.With respect to
Mortgage Loans that are not Wet-Ink Mortgage Loans, Seller shall cause the delivery of the Mortgage File to the Custodian, as more
particularly set forth in the applicable Custodial Agreement.

 

g.With respect to
each Wet-Ink Mortgage Loan, by no later than the seventh (7th) Business Day following the applicable Purchase Date,
Seller shall cause the related Settlement Agent to deliver to the Custodian the remaining documents in the Mortgage File, as more
particularly set forth in the applicable Custodial Agreement.

 

4.Repurchase

 

a.Seller shall repurchase
the related Purchased Mortgage Loans from Buyer on each related Repurchase Date. Such obligation to repurchase exists without regard
to any prior or intervening liquidation or foreclosure with respect to any Purchased Mortgage Loan (but liquidation or foreclosure
proceeds received by Buyer shall be applied to reduce the Repurchase Price for such Purchased Mortgage Loan on each Price Differential
Payment Date except as otherwise provided herein). Seller is obligated to repurchase and take physical possession of the Purchased
Mortgage Loans from Buyer or its designee (including the Custodian) at Seller’s expense on the related Repurchase Date.

 

b.Provided that no
Default shall have occurred and is continuing, and Buyer has received the related Repurchase Price upon repurchase of the Purchased
Mortgage Loans, Buyer agrees to release its ownership interest hereunder in the Purchased Mortgage Loans (including, the Repurchase
Assets related thereto) at the request of Seller. The Purchased Mortgage Loans (including the Repurchase Assets related thereto)
shall be delivered to Seller free and clear of any lien, encumbrance or claim. With respect to payments in full by the related
Mortgagor of a Purchased Mortgage Loan, Seller agrees to (i) provide Buyer with a copy of a report from the related Servicer
indicating that such Purchased Mortgage Loan has been paid in full, (ii) remit to Buyer, within two (2) Business Days, the Repurchase
Price with respect to such Purchased Mortgage Loan and (iii) provide Buyer a notice specifying each Purchased Mortgage Loan
that has been prepaid in full. Buyer agrees to release its ownership interest in Purchased Mortgage Loans which have been prepaid
in full after receipt of evidence of compliance with clauses (i) through (iii) of the immediately preceding sentence.

 

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

 

    	 	-21-	 

     

    

5.Price Differential

 

a.On each Business
Day that a Transaction is outstanding, the Pricing Rate shall be reset and, unless otherwise agreed, the accrued and unpaid Price
Differential shall be settled in cash on each related Price Differential Payment Date. Two (2) Business Days prior to the Price
Differential Payment Date, Buyer shall give Seller written or electronic notice of the amount of the Price Differential due on
such Price Differential Payment Date. On the Price Differential Payment Date, Seller shall pay to Buyer the Price Differential
for such Price Differential Payment Date (along with any other amounts to be paid pursuant to Sections 7 and 34 hereof), by wire
transfer in immediately available funds.

 

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

 

6.Margin Maintenance

 

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

 

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

 

    	 	-22-	 

     

    

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

 

7.Income Payments

 

a.If Income is paid
in respect of any Purchased Mortgage Loan during the term of a Transaction, such Income shall be the property of Buyer. Upon an
Event of Default, Seller shall cause Servicer and any Underlying Repurchase Counterparty to deposit all Income to the account set
forth in Section 9, upon receipt thereof, in accordance with Section 12(c) hereof.

 

b.Provided no Event
of Default has occurred and is continuing, on each Price Differential Payment Date, Seller shall remit to Buyer an amount equal
to the Price Differential out of the interest portion of the Income paid in respect to the Purchased Mortgage Loans for the preceding
month in accordance with Section 5 of this Agreement. Provided no Event of Default has occurred and is continuing, upon termination
of any Transaction or portion thereof, Servicer shall retain from the Income relating thereto any servicing fee and other amounts
due under any Servicing Agreement and remit all remaining amounts as follows:

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	-23-	 

     

    

8.Security
Interest 

 

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

 

b.Reserved.

 

c.The Seller and
Guarantor each acknowledge that neither of them, nor any Underlying Repurchase Counterparty has rights to service the Purchased
Mortgage Loans but only has rights as a party to any Servicing Agreement. Without limiting the generality of the foregoing and
in the event that the Seller or Guarantor are deemed to retain any residual Servicing Rights, and for the avoidance of doubt, each
of Seller and Guarantor 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.

 

    	 	-24-	 

     

    

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

 

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

 

f.Seller acknowledges
and agrees that its rights with respect to the Repurchase Assets (including without limitation its security interest in the Purchased
Mortgage Loans and any other collateral purchased by Seller in an Underlying Repurchase Transaction and in which a security interest
is granted to Buyer pursuant to this Section 8) are and shall continue to be at all times junior and subordinate to the rights
of Buyer under this Agreement. Seller agrees that it will provide notice of any action it takes with respect to the Repurchase
Assets at any time any such Repurchase Assets are owned by or pledged to Buyer under this Agreement.

 

9.Payment
and Transfer

 

Unless otherwise mutually
agreed in writing, all transfers of funds to be made by Seller hereunder shall be made in Dollars, in immediately available funds,
without deduction, set-off or counterclaim, to Buyer at the following account maintained by Buyer: Account No. 3091 0312, for the
account of CSFB Buyer/PennyMac Operating Partnership, L.P.-Inbound Account, Citibank, ABA No. 021 000 089 or such other account
as Buyer shall specify to Seller in writing. Seller acknowledges that it has no rights of withdrawal from the foregoing account.
All Purchased Mortgage Loans transferred by one party hereto to the other party shall be in the case of a purchase by Buyer in
suitable form for transfer or shall be accompanied by duly executed instruments of transfer or assignment in blank and such other
documentation as Buyer may reasonably request. All Purchased Mortgage Loans shall be evidenced by a Trust Receipt. Any Repurchase
Price received by Buyer after 2:00 p.m. (New York City time) shall be deemed received on the next succeeding Business Day.

 

10.Conditions
Precedent

 

a.Effective Date.
As conditions precedent to the Effective Date, Buyer shall have received on or before the day of such initial Transaction the following,
in form and substance satisfactory to Buyer and duly executed by Seller, Guarantor and each other party thereto, as applicable:

 

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(1)Program Agreements.
The Program Agreements duly executed and delivered by the parties thereto and being in full force and effect, free of any modification,
breach or waiver.

 

(2)Reserved.

 

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

 

(4)Organizational
Documents. A certificate of the corporate secretary of the Seller, Guarantor and PennyMac GP OP, Inc. substantially in the
form of Exhibit F hereto, attaching certified copies of Seller’s certificate of formation and operating agreement,
Guarantor’s declaration of trust and Seller’s limited partnership certificate and limited partnership agreement and
in each case resolutions approving the Program Agreements and transactions thereunder (either specifically or by general resolution)
and all documents evidencing other necessary corporate action or governmental approvals as may be required in connection with the
Program Agreements.

 

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

 

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

 

(7)Opinion of
Counsel. An opinion of Seller’s and Guarantor’s counsel, in form and substance acceptable to Buyer as to (i) general
corporate matters, (ii) enforceability, (iii) creation and perfection, (iv) bankruptcy safe harbors and (v) Investment Company
Act.

 

(8)Reserved.

 

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

 

(10)Insurance.
Evidence that Seller has added Buyer as an additional loss payee under the Seller’s Fidelity Insurance.

 

(11)Underlying
Repurchase Documents. Form of Underlying Repurchase Documents.

 

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

 

(1)Due Diligence
Review. Without limiting the generality of Section 36 hereof, Buyer shall have completed, to its satisfaction, its due diligence
review of the related Mortgage Loans and the applicable Underlying Repurchase Counterparty, Seller, Guarantor and the Servicer.

 

(2)Required Documents.

 

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

 

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

 

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

 

(a)A Transaction
Request and Mortgage Loan Schedule delivered by Seller pursuant to Section 3(b) or 3(c) hereof and a Purchase Confirmation
with respect to an Exception Mortgage Loan.

 

(b)The Request
for Certification and the related Mortgage Loan Schedule delivered by Seller, and the Trust Receipt and Custodial Mortgage Loan
Schedule delivered by Custodian.

 

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

 

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

 

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

 

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

 

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(7)Underlying
Electronic Tracking Agreement. To the extent Seller is selling Mortgage Loans with respect to an Underlying Repurchase Counterparty
which are registered on the MERS® System, Seller shall have delivered (i) an Underlying Electronic Tracking Agreement with
the applicable Underlying Repurchase Counterparty, Seller and MERS each as a party, entered into, duly executed and delivered by
the parties thereto and being in full force and effect, free of any modification, breach or waiver, (ii) the MERS Identification
Numbers for each Mortgage Loan registered on the MERS® System, and (iii) the ETA Repledgee Information Notice executed by Seller,
MERS, MERSCORP Holdings, Inc. and Buyer.

 

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

 

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

 

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

 

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

 

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

 

(9)Underlying
Repurchase Documents. Seller shall provide a Transaction Request (as defined in the Underlying Repurchase Documents) or other
comparable document, which shall reference the applicable Mortgage Loan Schedule which shall describe the Purchased Mortgage Loans.
All Underlying Repurchase Documents and any Custodial Repledgee Information Notice or ETA Repledgee Information Notice, applicable
to each Purchased Mortgage Loan have been duly executed and delivered by Seller and the Underlying Repurchase Counterparty and
any other applicable party and are in form and substance satisfactory to Buyer in all material respects, in its sole discretion.

 

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(10)Acceptable
Underlying Repurchase Transaction. Such Mortgage Loan is sold to Seller by an Underlying Repurchase Counterparty pursuant to
an Acceptable Underlying Repurchase Transaction.

 

(11)Escrow Instruction
Letter. Evidence that an Escrow Instruction Letter has been delivered by Underlying Repurchase Counterparty to the related
Settlement Agent.

 

11.Program;
Costs

 

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

 

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

 

c.With respect to
any Transaction, Buyer may conclusively rely upon, and shall incur no liability to Seller in acting upon, any request or other
communication that Buyer reasonably believes to have been given or made by a person authorized to enter into a Transaction on Seller’s
behalf, whether or not such person is listed on the certificate delivered pursuant to Section 10(a)(6) hereof. In each such case,
Seller hereby waives the right to dispute Buyer’s record of the terms of the Purchase Confirmation, request or other communication.

 

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

 

    	 	-29-	 

     

    

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

 

12.Servicing

 

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

 

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

 

c.Seller shall and
shall cause the Servicer to deposit all collections received by Servicer on the Purchased Mortgage Loans in the account set forth
in Section 9 upon an Event of Default.

 

d.Seller shall provide
to Buyer a Servicer Notice and Pledge, or in the event that the Servicer is not an Affiliate of Seller, a Servicer Notice,
addressed to and agreed to by the Servicer of the related Purchased Mortgage Loans, 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 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 any related Income with respect thereto.

 

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

 

    	 	-30-	 

     

    

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

 

g.Servicer shall
service the Purchased Mortgage Loans on behalf of Buyer for ninety (90) day intervals which will automatically terminate if not
renewed by Buyer, which renewal shall be evidenced by delivery of a renewal letter substantially in the form of Exhibit C
hereto.

 

h.For the avoidance
of doubt, the Seller retains no economic rights to the servicing of the Purchased Mortgage Loans; provided that the Seller shall
and shall cause the Servicer to continue to service the Purchased Mortgage Loans hereunder as part of the Obligations hereunder.
As such, the Seller expressly acknowledges that the Purchased Mortgage Loans are sold to Buyer on a “servicing released”
basis.

 

13.Representations
and Warranties

 

a.Except as otherwise
specifically set forth below, each of Seller and Guarantor represents and warrants to Buyer as of the date hereof and as of each
Purchase Date for any Transaction that:

 

(1)Seller and
Guarantor Existence. Seller has been duly organized and is validly existing as a limited partnership in good standing
under the laws of the State of Delaware. Guarantor has been duly organized and is validly existing as a real estate investment
trust in good standing under the laws of the State of Maryland.

 

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

 

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

 

    	 	-31-	 

     

    

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

 

(5)Financial Statements.
Guarantor has heretofore furnished to Buyer a copy of (a) its consolidated balance sheets for the fiscal year ended December 31,
2015 and the related consolidated statements of income and retained earnings and of cash flows for such fiscal year, with the opinion
thereon of Deloitte & Touche LLP and (b) its consolidated balance sheets for each quarterly fiscal period ended June 30, 2015
and September 30, 2015 and the related consolidated statements of income and retained earnings and of cash flows for it and its
consolidated Subsidiaries for such quarterly fiscal periods. All such financial statements are complete and correct and fairly
present, in all material respects, the consolidated financial condition of Guarantor and its consolidated Subsidiaries, as applicable
and the consolidated results of their operations as at such dates and for such fiscal periods, all in accordance with GAAP (other
than monthly financial statements solely with respect to footnotes, year-end adjustments and cash flow statements) applied on a
consistent basis. Guarantor has, on the date of the statements delivered pursuant to this Section (the “Statement Date”)
no liabilities, direct or indirect, fixed or contingent, matured or unmatured, known or unknown, or liabilities for taxes, long-term
leases or unusual forward or long-term commitments not disclosed by, or reserved against in, said balance sheet and related statements,
and at the present time there are no material unrealized or anticipated losses from any loans, advances or other commitments of
Seller except as heretofore disclosed to Buyer in writing.

 

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

 

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

 

    	 	-32-	 

     

    

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

 

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

 

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

 

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

 

    	 	-33-	 

     

    

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

 

(13)Ownership.
Upon payment of the Purchase Price and the filing of the financing statement and delivery of the Mortgage Files to the Custodian
and the Custodian’s receipt of the related Request for Certification, Buyer shall become the sole owner of the Purchased
Mortgage Loans and related Repurchase Assets, free and clear of all liens and encumbrances. Seller has not assigned, pledged, or
otherwise conveyed or encumbered any Mortgage Loan to any other Person, and immediately prior to the sale and backup pledge of
such Mortgage Loan to Buyer, Seller, was the sole owner thereof and had good and marketable title thereto, free and clear of all
Liens. Seller has not assigned, pledged, or otherwise conveyed or encumbered any Repurchase Transaction Document to any other Person
and Seller is the sole owner thereof, free and clear of all Liens.

 

(14)Reserved.

 

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

 

(16)Investment
Company. None of Seller, Guarantor or any of their Subsidiaries is an “investment company,” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; provided,
however, that any entity that is under the management of PNMAC Capital Management LLC in its capacity as an “investment
adviser” within the meaning of the Investment Advisers Act of 1940 and is otherwise not directly or indirectly owned or controlled
by Seller shall not be deemed a “Subsidiary” for the purposes of this Section 13(a)(16).

 

(17)Chief Executive
Office; Jurisdiction of Organization. On the Effective Date, Seller’s chief executive office, is, and has been, located
at 3043 Townsgate Road, Westlake Village, California 91361. On the Effective Date, Seller’s jurisdiction of organization
is the State of Delaware. Seller shall provide Buyer with thirty days advance notice of any change in Seller’s principal
office or place of business or jurisdiction. Seller has no trade name. During the preceding five years, Seller has not been known
by or done business under any other name, corporate or fictitious, and has not filed or had filed against it any bankruptcy receivership
or similar petitions nor has it made any assignments for the benefit of creditors.

 

    	 	-34-	 

     

    

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

 

(19)Adjusted Tangible
Net Worth. On the Effective Date, Seller’s and Guarantor’s Adjusted Tangible Net Worth are not less than the amounts
set forth in Section 14.dd(i) hereof.

 

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

 

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

 

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

 

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

 

(24)Reserved.

 

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

 

    	 	-35-	 

     

    

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

 

(27)No Prohibited
Persons. Neither the Seller nor Guarantor, nor any of their Affiliates, officers, directors, partners or members, is an entity
or person (or to the Seller’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”).

 

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

 

(29)Real Estate
Investment Trust. Guarantor is a REIT.

 

b.With respect to
(i) every Purchased Mortgage Loan, Seller represents and warrants to Buyer as of the applicable Purchase Date for any Transaction
and each date thereafter that each representation and warranty set forth on Part I of Schedule 1 is true and correct in
all material respects and (ii) every Underlying Repurchase Transaction, Underlying Repurchase Document and Underlying Repurchase
Counterparty, as applicable, Seller represents and warrants to Buyer as of the applicable Purchase Date for any Transaction and
each date thereafter that each representation and warranty set forth on Part II of Schedule 1 is true and correct in
all material respects.

 

c.The representations
and warranties set forth in this Agreement shall survive transfer of the Purchased Mortgage Loans to Buyer and shall continue for
so long as the Purchased Mortgage Loans are subject to this Agreement. Upon discovery by Seller, Servicer or Buyer of any breach
of any of the representations or warranties set forth in this Agreement, the party discovering such breach shall promptly give
notice of such discovery to the others. Buyer has the right to require, in its unreviewable discretion, Seller to repurchase within
one (1) Business Day after receipt of notice from Buyer any Purchased Mortgage Loan (i) for which a breach of one or more of the
representations and warranties referenced in Section 13(b) exists and which breach has a material adverse effect on the value of
such Mortgage Loan or the interests of Buyer or (ii) which is determined by Buyer, in its good faith discretion, to be generally
unacceptable for inclusion in a securitization.

 

    	 	-36-	 

     

    

14.Covenants

 

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

 

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

 

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

 

c.Servicing.
Seller shall not permit the Mortgage Loans to be serviced by any servicer other than a servicer expressly approved in writing by
Buyer.

 

d.Insurance.
The Seller or Guarantor shall continue to maintain, for Seller and its Subsidiaries, Fidelity Insurance in an aggregate amount
at least equal to $300,000. The Seller or Guarantor shall maintain, for Seller and its Subsidiaries, Fidelity Insurance in respect
of its officers, employees and agents, with respect to any claims made in connection with all or any portion of the Repurchase
Assets. The Seller or Guarantor shall notify the Buyer of any material change in the terms of any such Fidelity Insurance.

 

    	 	-37-	 

     

    

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

 

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

 

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

 

h.Records.

 

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

 

    	 	-38-	 

     

    

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

 

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

 

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

 

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

 

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

 

l.Reserved.

 

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

 

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

 

o.Existence.
Seller and the Guarantor shall preserve and maintain their legal existence and all of their material rights, privileges, material
licenses and franchises.

 

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

 

    	 	-39-	 

     

    

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

 

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

 

s.Guarantees.
Seller shall not create, incur, assume or suffer to exist any Guarantees, except (i) to the extent reflected in Seller’s
financial statements or notes thereto, (ii) to the extent the aggregate Guarantees of Seller (excluding Guarantees incurred pursuant
to clauses (iii), (iv) and (v) below) do not exceed $250,000, (iii) to guarantee the Existing Indebtedness specified on Exhibit
H hereto, (iv) to guarantee Indebtedness incurred in connection with new or existing secured lending facilities, and (v) to
the extent incurred in connection with an intercompany lending agreement.

 

t.Indebtedness.
Seller shall not incur any additional material Indebtedness (other than (i) the Existing Indebtedness specified on Exhibit H
hereto; (ii) usual and customary accounts payable for a mortgage company; (iii) Indebtedness incurred in connection with new or
existing secured lending facilities; and (iv) Indebtedness incurred in connection with an intercompany lending agreement) without
the prior written consent of Buyer.

 

u.Reserved.

 

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

 

w.Reserved.

 

    	 	-40-	 

     

    

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

 

y.Reserved.

 

z.Plan Assets.
Neither Seller 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 the Seller shall not use “plan assets” within the meaning of 29 CFR §2510.3
101, as amended by Section 3(42) of ERISA to engage in this Agreement or any Transaction hereunder. Transactions by or with Seller
or Guarantor shall not be subject to any state or local statute regulating investments of or fiduciary obligations with respect
to governmental plans within the meaning of Section 3(32) of ERISA.

 

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

 

bb.Negative Pledge.
Seller shall not sell, assign, transfer or otherwise dispose of, or grant any option with respect to, or pledge, hypothecate, or
grant a security interest in or lien on or otherwise encumber any of the Underlying Repurchase Documents or any interest therein
(except for Mortgage Loans subject thereto).

 

cc.Quality Control.
Seller shall cause each Underlying Repurchase Counterparty to maintain an internal quality control program that verifies, on a
regular basis, the existence and accuracy of all legal documents, credit documents, property appraisals, and underwriting decisions
related to Mortgage Loans.

 

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

 

    	 	-41-	 

     

    

(1)Adjusted Tangible
Net Worth. (A) Seller shall maintain an Adjusted Tangible Net Worth of at least $700,000,000, and (B) Guarantor shall maintain
an Adjusted Tangible Net Worth of at least $860,000,000.

 

(2)Indebtedness
to Adjusted Tangible Net Worth Ratio. Seller’s ratio of Indebtedness (on and off balance sheet and excluding (A) Non-Recourse
Debt, including any securitization debt and, (B) any intercompany debt eliminated in consolidation) to Adjusted Tangible Net Worth
shall not exceed 5:1. Guarantor’s ratio of Indebtedness (on and off balance sheet and excluding (A) Non-Recourse Debt, including
any securitization debt, and (B) any intercompany debt eliminated in consolidation) to Adjusted Tangible Net Worth shall not exceed
5:1.

 

(3)Maintenance
of Profitability. Guarantor shall maintain profitability of at least $1.00 in Net Income for at least one of the two prior
Test Periods.

 

(4)Maintenance
of Liquidity. The Seller and the Guarantor shall ensure that, as of the end of each calendar month, they have consolidated
cash and Cash Equivalents other than Restricted Cash in amounts not less than (i) with respect to the Seller, $40,000,000, and
(ii) with respect to the Guarantor, $40,000,000.

 

ee.Most Favored
Status. Seller, Guarantor and the Buyer each agree that should Seller enter into a Warehouse Facility with any Person other
than the Buyer or an Affiliate of the Buyer which by its terms provides more favorable terms to the Buyer with respect to the financial
covenants set forth in Section 14(dd) hereof (a “More Favorable Agreement”), the terms of this Agreement shall
be deemed automatically amended to include such more favorable terms contained in such More Favorable Agreement; provided, that
in the event that such More Favorable Agreement is terminated, upon notice by the Seller to the Buyer of such termination, the
original terms of this Agreement shall be deemed to be automatically reinstated. The Seller, the Guarantor, and the Buyer further
agree to execute and deliver any new agreements or amendments to this Agreement evidencing such provisions, provided that the execution
of such amendment shall not be a precondition to the effectiveness of such amendment, but shall merely be for the convenience of
the parties hereto. Promptly upon Seller entering into a repurchase agreement or other credit facility with any Person other than
the Buyer, Seller shall notify Buyer that it has entered into such repurchase agreement or other credit facility and deliver to
Buyer a summary of the material terms related to the comparable financial covenants of such repurchase agreement or other credit
facility in form and substance acceptable to Buyer.

 

ff.No Amendments/Waivers
of Underlying Repurchase Documents. Without the prior written consent of Buyer, Seller shall not, and shall not agree, consent
to or suffer to exist any amendment, modification, supplement, waiver or forbearance with respect to any of the Underlying Repurchase
Documents or any of Seller’s rights thereunder.

 

    	 	-42-	 

     

    

15.Events
of Default

 

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

 

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

 

b.Cross Default.
Seller, Guarantor or any Affiliates thereof shall be in default under (i) any Indebtedness, in the aggregate, in excess of $1.5
million of Seller, Guarantor or any Affiliate thereof, which default (1) involves the failure to pay a matured obligation, or (2)
permits the acceleration of the maturity of obligations by any other party to or beneficiary with respect to such Indebtedness,
or (ii) any other contract or contracts, in the aggregate in excess of $1.5 million to which Seller, Guarantor or any Affiliate
thereof is a party which default (1) involves the failure to pay a matured obligation, or (2) permits the acceleration of the maturity
of obligations by any other party to or beneficiary of such contract.

 

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

 

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

 

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

 

f.Breach of Specified
Representation or Covenant or Obligation. A breach by Seller or Guarantor of any of the representations, warranties or covenants
or obligations set forth (i) in Sections 13(a)(1), 13(a)(7), 13(a)(12), 13(a)(19), 14b, 14m, 14o, 14s, or 14z of this Agreement
or (ii) Sections 13(a)(23), 14t, 14dd or 14ee of this Agreement and such breach identified in this clause (ii) shall remain unremedied
for one (1) Business Day.

 

    	 	-43-	 

     

    

g.Breach of Take-out
Payment Covenant. A breach by Seller or Guarantor of the covenant set forth in Section 14(x), if such breach is not cured within
one (1) Business Day.

 

h.Breach of Non-Specified
Representation or Covenant. A breach by Seller or Guarantor of any other representation, warranty or covenant set forth in
this Agreement in any material respect (and not otherwise specified in Sections 15(f) and (g) above), if such breach is not cured
within five (5) Business Days (other than the representations and warranties set forth in Schedule 1, which shall be considered
solely for the purpose of determining the Market Value, the existence of a Margin Deficit and the obligation to repurchase such
Purchased Mortgage Loan) unless (i) such party shall have made any such representations and warranties with knowledge that they
were materially false or misleading at the time made, (ii) any such representations and warranties have been determined by Buyer
in its sole discretion to be materially false or misleading on a regular basis, or (iii) Buyer, in its sole discretion, determines
that such breach of a material representation, warranty or covenant materially and adversely affects (A) the condition (financial
or otherwise) of such party, its Subsidiaries or Affiliates; or (B) Buyer’s determination to enter into this Agreement or
Transactions with such party, then such breach shall constitute an immediate Event of Default and Seller shall have no cure right
hereunder).

 

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

 

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

 

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

 

l.Government Action.
Any Governmental Authority or any person, agency or entity acting or purporting to act under governmental authority shall have
taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the Property
of Seller, Guarantor or any Affiliate thereof, or shall have taken any action to displace the management of Seller, Guarantor or
any Affiliate thereof or to curtail its authority in the conduct of the business of Seller, Guarantor or any Affiliate thereof,
or takes any action in the nature of enforcement to remove, limit or restrict the approval of Seller, Guarantor or Affiliate as
an issuer, buyer or a seller/servicer of Mortgage Loans or securities backed thereby, and such action provided for in this Section
15l shall not have been discontinued or stayed within 30 days.

 

    	 	-44-	 

     

    

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

 

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

 

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

 

p.Underlying Repurchase
Documents and Underlying Repurchase Counterparties. (A) Any material provision of any Underlying Repurchase Document shall
at any time for any reason cease to be valid and binding or in full force and effect; or (B) the Underlying Repurchase Counterparty
shall deny that it has any or further liability or obligation under any material provision of any Underlying Repurchase Document;
or (C) [reserved]; or (D) the validity or enforceability of any material provision of any Underlying Repurchase Document shall
be contested by any party thereto; unless in each case of clauses (A) through (D), the related Mortgage Loans subject to the Underlying
Repurchase Document are repurchased by Seller within two (2) Business Days following notice or knowledge thereof.

 

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

 

r.REIT Qualification.
The failure of Guarantor to qualify as a REIT and Buyer has delivered notice of an Event of Default to the Seller with respect
thereto.

 

s.Governmental
Event. Buyer shall determine, in its sole discretion, that a Governmental Event, individually or collectively, and whether
unforeseen or arising out of Seller’s existing applications, communications and correspondence with any Governmental Authority
or Person, has had, or is likely to have, a Material Adverse Effect with respect to Seller, Guarantor or any Affiliate, or an adverse
effect upon its ability to perform its obligations under this Agreement or any other material agreement to which it is a party
or that may otherwise materially impair, limit or restrict Seller's ability to conduct its business or its operations.

 

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

 

    	 	-45-	 

     

    

16.Remedies
Upon Default

 

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

 

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

 

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

 

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

 

    	 	-46-	 

     

    

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

 

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

 

f.Seller shall be
liable to Buyer for (i) the amount of all reasonable 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.

 

    	 	-47-	 

     

    

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

 

h.Reserved.

 

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

 

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

 

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

 

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

 

17.Reports

 

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

 

b.Financial Notices.
Seller or Guarantor shall furnish to Buyer:

 

    	 	-48-	 

     

    

(1)as soon as available
and in any event within forty (40) calendar days after the end of each calendar month, the unaudited consolidated balance sheets
of Seller and Guarantor and their consolidated Subsidiaries as at the end of such period and the related unaudited consolidated
statements of income and retained earnings for the Seller and Guarantor and their consolidated Subsidiaries for such period and
the portion of the fiscal year through the end of such period, accompanied by a certificate of a Responsible Officer of Seller
and Guarantor, which certificate shall state that said consolidated financial statements fairly present in all material respects
the consolidated financial condition and results of operations of Seller and Guarantor and their consolidated Subsidiaries in accordance
with GAAP (other than solely with respect to footnotes, year-end adjustments and cash flow statements) consistently applied, as
at the end of, and for, such period;

 

(2)to the extent
not filed with the SEC on EDGAR, as soon as available and in any event within ninety (90) days after the end of each fiscal year
of Seller or Guarantor, the consolidated balance sheets of Seller, Guarantor and their consolidated Subsidiaries as at the end
of such fiscal year and the related consolidated statements of income and retained earnings and of cash flows for the Seller or
Guarantor and their consolidated Subsidiaries for such year, and in the case of Guarantor, setting forth in comparative form the
figures for the previous year, accompanied by an opinion thereon of independent certified public accountants of recognized national
standing, which opinion and the scope of audit shall be acceptable to Buyer in its sole discretion, shall have no “going
concern” qualification and shall state that said consolidated financial statements fairly present the consolidated financial
condition and results of operations of Guarantor and its consolidated Subsidiaries as at the end of, and for, such fiscal year
in accordance with GAAP;

 

(3)at the time the
Seller and Guarantor furnish each set of financial statements pursuant to Section 17(b)(1) or (2) above, an Officer’s Compliance
Certificate or, with respect to 17(b)(2) above, (at the time filed with the SEC on EDGAR), a certificate of a Responsible Officer
of Seller and Guarantor in the form attached as Exhibit A to the Pricing Side Letter;

 

(4)if applicable,
notice of any 10-K or 10-Q filings with the SEC on EDGAR by Seller or Guarantor, within five (5) Business Days of such filing with
the SEC; and

 

(5)as soon as available
and in any event within thirty (30) days of receipt thereof:

 

(a)reserved;

 

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

 

    	 	-49-	 

     

    

(c)such other information
regarding the financial condition, operations, or business of the Seller, Guarantor or any Underlying Repurchase Counterparty as
Buyer may reasonably request; and

 

(d)the particulars
of any Event of Termination in reasonable detail.

 

c.Notices of Certain
Events. As soon as possible and in any event within five (5) Business Days of knowledge thereof, Seller shall furnish to Buyer
notice of the following events:

 

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

 

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

 

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

 

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

 

(5)any material issues
raised upon examination of Seller, any Underlying Repurchase Counterparty or Seller’s or any Underlying Repurchase Counterparty’s
facilities by any Governmental Authority;

 

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

 

(7)any default related
to any Repurchase Asset, including without limitation any default under any Underlying Repurchase Documents, or any lien or security
interest (other than security interests created hereby or by the other Program Agreements) on, or claim asserted against, any of
the Purchased Mortgage Loans;

 

 

 

    	 	-50-	 

     

    

(8)any Underlying
Repurchase Counterparty for any reason ceases to possess all applicable Agency approvals, or an event has occurred or Underlying
Repurchase Counterparty has a reason to believe or suspect that an event will occur prior to the issuance of the Agency Security
or the consummation of the Take-Out Commitment, that will require notification to an Agency or the Department of Housing and Urban
Development, FHA or VA;

 

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

 

(10)the occurrence
of any material employment dispute and a description of the strategy for resolving it that has the possibility of resulting in
a Material Adverse Effect with respect to Seller, Guarantor or any Affiliate;

 

(11)without limiting
any of the other reporting obligations of Seller hereunder, Seller shall promptly notify Buyer of any Governmental Event relating
to Seller, Guarantor, any Affiliate or any Underlying Repurchase Counterparty or update thereto, and shall include the particulars
of each update with sufficient detail as is satisfactory to Buyer; and

 

(12)any notice Seller
receives from an Underlying Repurchase Counterparty in accordance with the terms of the Underlying Repurchase Documents relating
to a material event, circumstance or condition affecting the Underlying Repurchase Counterparty or Servicer.

 

d.Portfolio Performance
Data. On the first Reporting Date of each calendar month, Seller will furnish to Buyer (i) in the event the Mortgage Loans
are serviced on a “retained” basis, an electronic Mortgage Loan performance data, including, without limitation, delinquency
reports and volume information, broken down by product (i.e., delinquency, foreclosure and net charge-off reports) and (ii)
electronically, in a format mutually acceptable to Buyer and Seller, servicing information, including, without limitation, those
fields reasonably requested by Buyer from time to time, on a loan-by-loan basis and in the aggregate, with respect to the Purchased
Mortgage Loans serviced by Seller or any Servicer for the month (or any portion thereof) prior to the Reporting Date. In addition
to the foregoing information on each Reporting Date, Seller will furnish to Buyer such information upon (i) the occurrence and
continuation of an Event of Default and (ii) upon any Purchased Mortgage Loan becoming an Aged Loan.

 

e.Monthly Summary
Reports. Within thirty (30) days following receipt by Buyer of the Officer’s Compliance Certificate, a Monthly Summary
Report; and

 

 

    	 	-51-	 

     

    

f.Pending/Completed
Repurchase Requests. Within forty (40) days following the end of each calendar month, a summary of the portfolio performance
of Mortgage Loans owned or financed by Underlying Repurchase Counterparty including representation breaches, missing document breaches,
repurchases due to fraud, early payment default requests, and Mortgage Loans owned or financed by Underlying Repurchase Counterparty
subject to other warehouse lines in excess of sixty (60) days summarized on the basis of (a) pending repurchase demands (including
weighted average duration of outstanding request), (b) satisfied repurchase demands and (c) total repurchase demands.

 

g.Reserved.

 

h.Other Reports.
Seller shall deliver to Buyer any other reports or information reasonably requested by Buyer or as otherwise required pursuant
to this Agreement including without limitation any reports or information received from any Underlying Repurchase Counterparty.

 

18.Repurchase
Transactions

 

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

 

19.Single
Agreement

 

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

 

    	 	-52-	 

     

    

20.Notices
and Other Communications

 

Any and all notices (with
the exception of Transaction Requests or Purchase Confirmations, which shall be delivered via electronic mail or other electronic
medium agreed to by the Buyer and Seller), statements, demands or other communications hereunder may be given by a party to the
other by mail, email, facsimile, messenger or otherwise to the address specified below, or so sent to such party at any other place
specified in a notice of change of address hereafter received by the other. All notices, demands and requests hereunder may be
made orally, to be confirmed promptly in writing, or by other communication as specified in the preceding sentence. In all cases,
to the extent that the related individual set forth in the respective “Attention” line is no longer employed by the
respective Person, such notice may be given to the attention of a Responsible Officer of the respective Person or to the attention
of such individual or individuals as subsequently notified in writing by a Responsible Officer of the respective Person.

 

If to Seller:

 

PennyMac Operating Partnership,
L.P.

3043 Townsgate Road

Westlake Village, California 91361

Attention: Anne D. McCallion

Phone Number: (818) 224-7434

E-mail: anne.mccallion@pnmac.com

 

If to Guarantor:

 

PennyMac Mortgage Investment Trust

3043 Townsgate Road

Westlake Village, California 91361

Attention: Anne D. McCallion

Phone Number: (818) 224-7434

E-mail: anne.mccallion@pnmac.com

 

If to Buyer:

 

For Transaction Requests
and Purchase Confirmations:

 

CSFBMC LLC

c/o Credit Suisse
Securities (USA) LLC

One Madison Avenue,
2nd floor

New York, New York
10010

Attention: Christopher
Bergs, Resi Mortgage Warehouse Ops

Phone: 212-538-5087

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

 

 

    	 	-53-	 

     

    

 

 

with a copy to:

 

Credit Suisse First
Boston Mortgage Capital LLC

c/o Credit Suisse
Securities (USA) LLC

Eleven Madison Avenue,
4th Floor

New York, NY 10010

Attention: Margaret
Dellafera

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

 

 

For all other Notices:

 

Credit Suisse First
Boston Mortgage Capital LLC

c/o Credit Suisse
Securities (USA) LLC

Eleven Madison Avenue,
4th Floor

New York, New York
10010

Attention:   Margaret
Dellafera

Phone Number: 212-325-6471

Fax Number: 212-743-4810

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

 

with a copy to:

 

Credit Suisse First
Boston Mortgage Capital LLC

c/o Credit Suisse
Securities (USA) LLC

One Madison Avenue,
9th Floor

New York, NY 10010

Attention: Legal Department—RMBS
Warehouse Lending

Fax Number: (212) 322-2376

 

21.Entire
Agreement; Severability

 

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

 

22.Non assignability

 

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

 

 

    	 	-54-	 

     

    

23.Set-off

 

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

 

24.Binding
Effect; Governing Law; Jurisdiction

 

a.This Agreement
shall be binding and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Seller acknowledges
that the obligations of Buyer hereunder or otherwise are not the subject of any guaranty by, or recourse to, any direct or indirect
parent or other Affiliate of Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE
OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT FOR SECTION 5-1401 AND 5-1402 OF THE NEW
YORK GENERAL OBLIGATIONS LAW).

 

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

 

 

    	 	-55-	 

     

    

25.No Waivers,
Etc.

 

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

 

26.Intent

 

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

 

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

 

 

    	 	-56-	 

     

    

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

 

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

 

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

 

27.Disclosure
Relating to Certain Federal Protections

 

The parties acknowledge
that they have been advised that:

 

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

 

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

 

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

 

28.Power of
Attorney

 

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

 

 

    	 	-57-	 

     

    

29.Buyer May
Act Through Affiliates

 

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

 

30.Indemnification;
Obligations

 

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

 

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

 

 

    	 	-58-	 

     

    

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

 

31.Counterparts

 

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

 

32.Confidentiality

 

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

 

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

 

 

    	 	-59-	 

     

    

33.Recording
of Communications

 

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

 

34.Commitment
Fee

 

Seller shall pay to Buyer
in immediately available funds a non-refundable Commitment Fee. The Commitment Fee shall be paid in accordance with the payment
schedule set forth in the Pricing Side Letter. All payments of the Commitment Fee shall be made in Dollars, in immediately available
funds, without deduction, set-off or counterclaim, to Buyer at such account designated by Buyer.

 

35.Condition
Subsequent

 

Within ten (10) Business
Days following the date hereof, Seller shall deliver to Buyer the opinions of Seller’s and Guarantor’s counsel, in
form and substance acceptable to Buyer, as referred to in Section 10(a)(7) hereof. Buyer reserves the right not to fund any Transactions
if Seller fails to deliver such items as described in this Section. Seller’s failure to deliver these items shall be a breach
of a material covenant under this Agreement.

 

 

    	 	-60-	 

     

    

36.Periodic
Due Diligence Review

 

Seller acknowledges that
Buyer has the right to perform continuing due diligence reviews with respect to the Seller, Underlying Repurchase Counterparty,
Servicer and the Mortgage Loans, for purposes of verifying compliance with the representations, warranties and specifications made
hereunder, for the purpose of performing quality control review of the Mortgage Loans or otherwise, and upon reasonable (but no
less than one (1) Business Day’s) prior notice unless an Event of Default shall have occurred, in which case no notice is
required, to Seller, Seller agrees to permit or shall cause Underlying Repurchase Counterparty to permit Buyer or its authorized
representatives will be permitted during normal business hours to examine, inspect, and make copies and extracts of, the Mortgage
Files and any and all documents, data, records, agreements, instruments or information relating to such Mortgage Loans (including,
without limitation, quality control review) in the possession or under the control of Seller, Underlying Repurchase Counterparty,
Servicer and/or the Custodian. Seller also shall make available or cause Underlying Repurchase Counterparty to make available to
Buyer a knowledgeable financial or accounting officer for the purpose of answering questions respecting the Mortgage Files and
the Mortgage Loans. Without limiting the generality of the foregoing, Seller acknowledges that Buyer may purchase Mortgage Loans
from Seller based solely upon the information provided by Seller to Buyer in the Mortgage Loan Schedule and the representations,
warranties and covenants contained herein, and that Buyer, at its option, has the right at any time to conduct a partial or complete
due diligence review on some or all of the Mortgage Loans purchased in a Transaction, including, without limitation, ordering Broker’s
price opinions, new credit reports and new appraisals on the related Mortgaged Properties and otherwise re-generating the information
used to originate such Mortgage Loan. Buyer may underwrite such Mortgage Loans itself or engage a mutually agreed upon third party
underwriter to perform such underwriting. Seller agrees to cooperate or cause Underlying Repurchase Counterparty to cooperate with
Buyer and any third party underwriter in connection with such underwriting, including, but not limited to, providing Buyer and
any third party underwriter with access to any and all documents, records, agreements, instruments or information relating to such
Mortgage Loans in the possession, or under the control, of Seller. Seller further agrees that Seller shall pay all out-of-pocket
costs and expenses incurred by Buyer in connection with Buyer’s activities pursuant to this Section 36 (“Due Diligence
Costs”).

 

37.Approval
of Underlying Repurchase Counterparties and Servicers

 

a.Seller
shall provide Buyer with (a) a written list of proposed Underlying Repurchase Counterparties and (b) any reasonably requested
information with respect to such proposed Underlying Repurchase Counterparties, in each case, prior to Buyer’s purchase
of any Mortgage Loan subject to the respective Underlying Repurchase Documents. Buyer in its sole and absolute discretion may
reject any proposed Underlying Repurchase Counterparty by providing written notice in accordance with Section 20 hereof to Seller
within ten (10) Business Days after Seller provides such written list of proposed Underlying Repurchase Counterparties. If Buyer
does not approve an Underlying Repurchase Counterparty by providing a written notice to Seller within ten (10) Business Days after
Seller provides the written list of proposed Underlying Repurchase Counterparties, then such Underlying Repurchase Counterparties
shall be deemed rejected by Buyer for the purposes of this Agreement. After an Underlying Repurchase Counterparty is approved
by Buyer as an Underlying Repurchase Counterparty for the purposes of this Agreement, Buyer may in its sole and absolute discretion
reject any previously approved Underlying Repurchase Counterparty by providing to Seller written notice in accordance with Section
20 hereof. Following any such rejection of a previously approved Underlying Repurchase Counterparty, Seller shall not sell to
Buyer hereunder any Mortgage Loans purchased by Seller from such previously approved Underlying Repurchase Counterparty and any
such Mortgage Loans may be assigned a Market Value of zero in Buyer’s good faith discretion.

 

 

    	 	-61-	 

     

    

b.Seller shall provide
Buyer with (a) a written list of proposed Servicers and (b) any reasonably requested information with respect to such proposed
Servicers, in each case, prior to any Servicer being engaged with respect to a prospective Purchased Mortgage Loan. Buyer in its
sole and absolute discretion may reject any proposed Servicer by providing written notice in accordance with Section 20 hereof
to Seller within ten (10) Business Days after Seller provides such written list of proposed Servicers. If Buyer does not approve
a Servicer by providing a written notice to Seller within ten (10) Business Days after Seller provides the written list of proposed
Servicers, then such Servicers shall be deemed rejected by Buyer for the purposes of this Agreement. After a Servicer is approved
by Buyer as a Servicer for the purposes of this Agreement, Buyer may in its sole good faith discretion reject any previously approved
Servicer by providing to Seller written notice in accordance with Section 20 hereof.

 

c.Buyer, with or
without cause, may instruct Seller to remove and discharge (i) MERS and MERSCORP Holdings, Inc., as Electronic Agent (as defined
in the Underlying Electronic Tracking Agreement) from the performance of their duties under the Underlying Electronic Tracking
Agreement with respect to some or all of the Purchased Mortgage Loans or (ii) the Custodian from the performance of its duties
under the Underlying Custodial Agreement with respect to some or all of the Purchased Mortgage Loans. If Buyer delivers such instruction
to Seller, Seller shall promptly exercise its rights to terminate MERS, MERSCORP Holdings, Inc. or the Custodian, as applicable,
in accordance with the related Underlying Repurchase Document.

 

38.Authorizations

 

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

 

 

    	 	-62-	 

     

    

39.Acknowledgement
Of Anti-Predatory Lending Policies

 

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

 

40.Documents
Mutually Drafted

 

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

 

41.Conflicts

 

In the event of any conflict
between the terms of this Agreement and any other Program Agreement, the documents shall control in the following order of priority:
first, the terms of the Pricing Side Letter shall prevail, then the terms of this Agreement shall prevail, and then the terms of
the other Program Agreements shall prevail.

 

42.General
Interpretive Principles

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

    	 	-63-	 

     

    

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

 

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

 

43.Agency
and Allocation Agreement

 

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

 

44.Reaffirmation
of Guaranty

 

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

 

45.Amendment
and Restatement

 

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

 

 

 

[Signature Page Follows]

 

    	 	-64-	 

     

    

IN WITNESS WHEREOF, the undersigned have
caused this Agreement to be duly executed as of the date first above written.

 

Credit Suisse First Boston Mortgage Capital LLC, as Buyer

 

 

By: /s/ Elie Chau

       Name: Elie Chau

       Title: Vice President

 

 

PennyMac Operating Partnership, L.P., as Seller

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

 

 

By: /s/ Pamela Marsh

       Name: Pamela Marsh

       Title: Managing Director, Treasurer

 

 

PennyMac Mortgage Investment Trust, as Guarantor

 

 

By: /s/ Pamela Marsh

      Name: Pamela Marsh

       Title: Managing Director, Treasurer

 

 

 

 

    	 	-65-	 

     

    

SCHEDULE 1

 

PART 1

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO PURCHASED MORTGAGE LOANS

 

(a)Payments Current.
All payments required to be made up to the Purchase Date for the Mortgage Loan under the terms of the Mortgage Note have been made
and credited. No payment required under the Mortgage Loan is delinquent nor has any payment under the Mortgage Loan been delinquent
at any time since the origination of the Mortgage Loan. The first Monthly Payment shall be made, or shall have been made, with
respect to the Mortgage Loan on its Due Date or within the grace period, all in accordance with the terms of the related Mortgage
Note.

 

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

 

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

 

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

 

 

 

    	 	Schedule 1 Part 1 - 1	 

     

    

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

 

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

 

 

 

    	 	Schedule 1 Part 1 - 2	 

     

    

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

 

(h)Location and
Type of Mortgaged Property. The Mortgaged Property is located in an Acceptable State as identified in the Custodial Mortgage
Loan Schedule and consists of a single parcel of real property with a detached single family residence erected thereon, or a two-
to four-family dwelling, or an individual condominium unit in a condominium project, or an individual unit in a planned unit development
or a de minimis planned unit development; provided, however, that any condominium unit or planned unit development shall conform
with the applicable Fannie Mae and Freddie Mac requirements regarding such dwellings or shall conform to underwriting guidelines
acceptable to Buyer in its sole discretion and that no residence or dwelling is a mobile home. No portion of the Mortgaged Property
is used for commercial purposes; provided, that, the Mortgaged Property may be a mixed use property if such Mortgaged Property
conforms to underwriting guidelines acceptable to Buyer in its sole discretion.

 

(i)Valid First
Lien. The Mortgage is a valid, subsisting, enforceable and perfected first priority lien and first priority security interest
on the real property included in the Mortgaged Property, including all buildings on the Mortgaged Property and all installations
and mechanical, electrical, plumbing, heating and air conditioning systems located in or annexed to such buildings, and all additions,
alterations and replacements made at any time with respect to the foregoing. The lien of the Mortgage is subject only to:

 

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

 

b.covenants, conditions
and restrictions, rights of way, easements and other matters of the public record as of the date of recording acceptable to prudent
mortgage lending institutions generally and specifically referred to in Buyer’s title insurance policy delivered to the originator
of the Mortgage Loan and (a) referred to or otherwise considered in the appraisal made for the originator of the Mortgage
Loan or (b) which do not adversely affect the Appraised Value of the Mortgaged Property set forth in such appraisal;

 

c.other matters
to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be
provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property.

 

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

 

 

 

    	 	Schedule 1 Part 1 - 3	 

     

    

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

 

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

 

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

 

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

 

 

 

    	 	Schedule 1 Part 1 - 4	 

     

    

(n)Title Insurance.
The Mortgage Loan is covered by either (i) an attorney’s opinion of title and abstract of title, the form and substance of
which is acceptable to prudent mortgage lending institutions making mortgage loans in the area wherein the Mortgaged Property is
located or (ii) an ALTA lender’s title insurance policy or other generally acceptable form of policy or insurance acceptable
to Fannie Mae or Freddie Mac and each such title insurance policy is issued by a title insurer acceptable to Fannie Mae or Freddie
Mac and qualified to do business in the jurisdiction where the Mortgaged Property is located, insuring Seller, its successors and
assigns, as to the first priority lien of the Mortgage, as applicable, in the original principal amount of the Mortgage Loan, with
respect to a Mortgage Loan (or to the extent a Mortgage Note provides for negative amortization, the maximum amount of negative
amortization in accordance with the Mortgage), subject only to the exceptions contained in clauses (a), (b) and (c) of paragraph
(i) of this Schedule 1. Seller, its successors and assigns, are the sole insureds of such lender’s title insurance
policy, and such lender’s title insurance policy is valid and remains in full force and effect and will be in force and effect
upon the consummation of the transactions contemplated by this Agreement. No claims have been made under such lender’s title
insurance policy, and no prior holder or servicer of the related Mortgage, including Seller, has done, by act or omission, anything
which would impair the coverage of such lender’s title insurance policy, including without limitation, no unlawful fee, commission,
kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney,
firm or other Person, and no such unlawful items have been received, retained or realized by Seller.

 

(o)No Defaults.
There is no default, breach, violation or event of acceleration existing under the Mortgage or the Mortgage Note and no event has
occurred which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default,
breach, violation or event of acceleration, and neither Seller nor its predecessors have waived any default, breach, violation
or event of acceleration.

 

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

 

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

 

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

 

 

 

    	 	Schedule 1 Part 1 - 5	 

     

    

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

 

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

 

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

 

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

 

 

 

    	 	Schedule 1 Part 1 - 6	 

     

    

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

 

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

 

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

 

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

 

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

 

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

 

 

 

    	 	Schedule 1 Part 1 - 7	 

     

    

(cc)Conversion
to Fixed Interest Rate. Except as allowed by Fannie Mae or Freddie Mac or otherwise as expressly approved in writing by Buyer,
with respect to adjustable rate Mortgage Loans, the Mortgage Loan is not convertible to a fixed interest rate Mortgage Loan.

 

(dd)Other Insurance
Policies. No action, inaction or event has occurred and no state of facts exists or has existed that has resulted or will result
in the exclusion from, denial of, or defense to coverage under any applicable special hazard insurance policy, PMI Policy or bankruptcy
bond, irrespective of the cause of such failure of coverage. In connection with the placement of any such insurance, no commission,
fee, or other compensation has been or will be received by Seller or by any officer, director, or employee of Seller or any designee
of Seller or any corporation in which Seller or any officer, director, or employee had a financial interest at the time of placement
of such insurance.

 

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

 

(ff)Appraisal.
The Mortgage File contains an appraisal of the related Mortgaged Property signed prior to the funding of the Mortgage Loan by a
qualified appraiser, who had no interest, direct or indirect in the Mortgaged Property or in any loan made on the security thereof,
and whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the appraisal and appraiser both
satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of the Federal Institutions Reform, Recovery, and Enforcement
Act of 1989 as amended and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan was originated.

 

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

 

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

 

(ii)No Defense
to Insurance Coverage. No action has been taken or failed to be taken, no event has occurred and no state of facts exists or
has existed on or prior to the Purchase Date (whether or not known to Seller on or prior to such date) which has resulted or will
result in an exclusion from, denial of, or defense to coverage under any private mortgage insurance (including, without limitation,
any exclusions, denials or defenses which would limit or reduce the availability of the timely payment of the full amount of the
loss otherwise due thereunder to the insured) whether arising out of actions, representations, errors, omissions, negligence, or
fraud of Seller, the related Mortgagor or any party involved in the application for such coverage, including the appraisal, plans
and specifications and other exhibits or documents submitted therewith to the insurer under such insurance policy, or for any other
reason under such coverage, but not including the failure of such insurer to pay by reason of such insurer’s breach of such
insurance policy or such insurer’s financial inability to pay.

 

 

 

    	 	Schedule 1 Part 1 - 8	 

     

    

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

 

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

 

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

 

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

 

(nn)No Exception.
The Custodian has not noted any material exceptions on a Custodial Mortgage Loan Schedule with respect to the Mortgage Loan which
would materially adversely affect the Mortgage Loan or Buyer’s interest in the Mortgage Loan.

 

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

 

(pp)Documents
Genuine. Such Purchased Mortgage Loan and all accompanying collateral documents are complete and authentic and all signatures
thereon are genuine. Such Purchased Mortgage Loan is a “closed” loan.

 

(qq)Bona Fide
Loan. Such Purchased Mortgage Loan arose from a bona fide loan, complying with all applicable State and Federal laws and regulations,
to persons having legal capacity to contract and is not subject to any defense, set-off or counterclaim.

 

(rr)Other Encumbrances.
To the best of Seller’s knowledge, any property subject to any security interest given in connection with such Purchased
Mortgage Loan is not subject to any other encumbrances other than a stated first mortgage, if applicable, and encumbrances which
may be allowed under the Underwriting Guidelines.

 

 

 

    	 	Schedule 1 Part 1 - 9	 

     

    

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

 

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

 

(uu)Underwriting
Guidelines. Each Purchased Mortgage Loan has been originated in accordance with the Underwriting Guidelines (including all
supplements or amendments thereto).

 

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

 

(ww)Reserved.

 

(xx)Primary Mortgage
Guaranty Insurance. Each Conforming Mortgage Loan with a Loan to Value Ratio of 80% or higher is insured as to payment defaults
by primary mortgage guaranty insurance. Each other Mortgage Loan is insured as to payment defaults by a policy of primary mortgage
guaranty insurance where applicable. Each Purchased Mortgage Loan is insured in the amount required, and by an insurer approved,
by the applicable Take-out Investor, if applicable, and all provisions of such primary mortgage guaranty insurance have been and
are being complied with, such policy is in full force and effect, and all premiums due thereunder have been paid. Each Mortgage
Loan which is represented to Buyer to have, or to be eligible for, FHA insurance is insured, or eligible to be insured, pursuant
to the National Housing Act. Each Mortgage Loan which is represented by Seller to be guaranteed, or to be eligible for guaranty,
by the VA is guaranteed, or eligible to be guaranteed, under the provisions of Chapter 37 of Title 38 of the United States Code.
As to each FHA insurance certificate or each VA guaranty certificate, Seller has complied with applicable provisions of the insurance
for guaranty contract and federal statutes and regulations, all premiums or other charges due in connection with such insurance
or guarantee have been paid, there has been no act or omission which would or may invalidate any such insurance or guaranty, and
the insurance or guaranty is, or when issued, will be, in full force and effect with respect to each Mortgage Loan. There are no
defenses, counterclaims, or rights of setoff affecting the Mortgage Loans or affecting the validity or enforceability of any private
mortgage insurance or FHA insurance applicable to the Mortgage Loans or any VA guaranty with respect to the Mortgage Loans.

 

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

 

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

 

 

 

    	 	Schedule 1 Part 1 - 10	 

     

    

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

 

(bbb)Second Lien.
None of the Mortgage Loans are second lien Mortgage Loans.

 

(ccc)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).

 

 

 

 

 

 

 

    	 	Schedule 1 Part 1 - 11	 

     

    

SCHEDULE 1

 

PART 2

 

 

REPRESENTATIONS AND WARRANTIES WITH
RESPECT TO 

UNDERLYING REPURCHASE TRANSACTIONS

 

 

(a)Validity of
Underlying Repurchase Documents. The Underlying Repurchase Documents and any other agreement executed and delivered by the
Underlying Repurchase Counterparty or guarantor thereto, as applicable, in connection with an Underlying Repurchase Transaction
are genuine, and each is the legal, valid and binding obligation of the maker thereof enforceable in accordance with its terms,
except as such enforcement may be affected by bankruptcy, by other insolvency laws or by general principles of equity. Seller and
the Underlying Repurchase Counterparty had legal capacity to enter into the Underlying Repurchase Transaction and the Underlying
Repurchase Counterparty had the legal capacity to execute and deliver the Underlying Repurchase Documents and any such agreement,
and the Underlying Repurchase Documents and any such other related agreement to which Seller or the Underlying Repurchase Counterparty
are parties have been duly and properly executed by Seller and the Underlying Repurchase Counterparty, as applicable. The Underlying
Repurchase Documents to which the Underlying Repurchase Counterparty is a party constitute legal, valid, binding and enforceable
obligations of the Underlying Repurchase Counterparty. The Underlying Repurchase Transaction and the Underlying Repurchase Documents
are in full force and effect, and the enforceability of the Underlying Repurchase Documents has not been contested by the Underlying
Repurchase Counterparty.

 

(b)Original Terms
Unmodified. Except to the extent approved in writing by Buyer, the terms of the Underlying Repurchase Documents have not been
impaired, altered or modified in any material respect.

 

(c)No Defenses.
The Underlying Repurchase Transaction is not subject to any right of rescission, set-off, counterclaim or defense nor will the
operation of any of the terms of any Underlying Repurchase Documents, or the exercise of any right thereunder, render any Underlying
Repurchase Document unenforceable in whole or in part and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto.

 

(d)No Bankruptcy.
The Underlying Repurchase Counterparty is not subject to an Act of Insolvency. The Underlying Repurchase Counterparty has not threatened
and, to Seller’s knowledge, is not contemplating either the filing of a petition by it under any state or federal bankruptcy
or insolvency laws or the liquidation of all or a major portion of the Underlying Repurchase Counterparty’s assets or any
of the Mortgage Loans.

 

(e)Compliance
with Applicable Laws; Consents. Any and all requirements of any federal, state or local law including, without limitation,
usury, consumer credit protection, or disclosure laws applicable to the Underlying Repurchase Transaction have been complied with
in all material respects, the consummation of the transactions contemplated hereby will not involve the violation of any such laws
or regulations, and Seller shall maintain in its possession, available for the inspection by Buyer, and shall deliver to Buyer,
upon demand, evidence of compliance with all such requirements. All consents of and all filings with any federal or state Governmental
Authority necessary in connection with the execution, delivery or performance of the Underlying Repurchase Transaction have been
obtained or made and are in full force and effect.

 

 

 

    	 	Schedule 1 Part 2 - 1	 

     

    

(f)[reserved].

 

(g)[reserved].

 

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

 

(i)Organization.
The Underlying Repurchase Counterparty has been duly organized and is validly existing and in good standing under the laws of the
jurisdiction of its formation. The Underlying Repurchase Counterparty has requisite power and authority to (i) own its properties,
(ii) transact the business in which it is now engaged, (iii) execute and deliver the Underlying Repurchase Documents and (iv) consummate
the transactions contemplated thereby. The Underlying Repurchase Counterparty is duly qualified to do business and is in good standing
in the jurisdictions where it is required to be so qualified in connection with the ownership, maintenance, management and operation
of its business. The Underlying Repurchase Counterparty possesses all material rights, licenses, permits and authorizations, governmental
or otherwise, necessary to entitle it to own its properties and to transact the businesses in which it is now engaged.

 

(j)No Conflicts.
The execution, delivery and performance of the Underlying Repurchase Documents by the Underlying Repurchase Counterparty do not
conflict with or constitute a default under, or result in the creation or imposition of any lien (other than pursuant to the Underlying
Repurchase Documents) under, any material mortgage, deed of trust, Agreement, partnership agreement, or other agreement or instrument
to which the Underlying Repurchase Counterparty is a party or to which any of its property is subject, nor will such action result
in any violation of the provisions of any statute of any Governmental Authority having jurisdiction over the Underlying Repurchase
Counterparty, and any qualification of or with any governmental authority required for the execution, delivery, and performance
by the Underlying Repurchase Counterparty of the Underlying Repurchase Documents has been obtained and is in full force and effect.

 

(k)Compliance.
The Underlying Repurchase Counterparty is in compliance in all material respects with all applicable legal requirements. The Underlying
Repurchase Counterparty is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority,
the violation of which might adversely affect the condition (financial or otherwise) or business of the Underlying Repurchase Counterparty.

 

(l)Underlying
Repurchase Transaction Not Assigned. No Underlying Repurchase Transaction Document is assigned to any third party. No Underlying
Repurchase Counterparty has sold, assigned, transferred or otherwise disposed of, or granted any option with respect to, or pledged,
hypothecated or granted a security interest in or lien on or otherwise encumbered (except pursuant to the Underlying Repurchase
Documents), any of the Purchased Mortgage Loans or any interest therein. The Underlying Repurchase Documents permit Seller to sell,
assign, pledge, transfer or rehypothecate the Mortgage Loans and all other collateral purchased by Seller pursuant to the Underlying
Repurchase Documents.

 

 

 

    	 	Schedule 1 Part 2 - 2	 

     

    

(m)Solvency.
The transfer of the Mortgage Loans subject to the Underlying Repurchase Documents is not undertaken with the intent to hinder,
delay or defraud any of the Underlying Repurchase Counterparty’s creditors. The Underlying Repurchase Counterparty is not
insolvent within the meaning of 11 U.S.C. Section 101(32) and the transfer and pledge of the Mortgage Loans pursuant to the Underlying
Repurchase Documents (i) will not cause the Underlying Repurchase Counterparty to become insolvent, (ii) will not result in any
property remaining with the Underlying Repurchase Counterparty to be unreasonably small capital, and (iii) will not result in debts
that would be beyond the Underlying Repurchase Counterparty’s ability to pay as same mature. The Underlying Repurchase Counterparty
receives reasonably equivalent value in exchange for the transfer and pledge of the Mortgage Loans in accordance with the Underlying
Repurchase Documents.

 

(n)Ownership.
Underlying Repurchase Counterparty has sold the Underlying Mortgage Loan on a servicing-released basis to the Seller under the
Underlying Repurchase Transaction. Underlying Repurchase Counterparty has good, indefeasible and marketable title to the Mortgage
Loans, and has full right to transfer, pledge and assign the Mortgage Loans to Seller 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 the Underlying
Repurchase Documents, and following the transfer and pledge of the Mortgage Loans, Seller 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 other than those created under this Agreement.

 

(o)Agency Approvals.
In the event the applicable Underlying Repurchase Counterparty becomes an FHA Approved Mortgagee, a VA Approved Lender and a GNMA
Approved Lender, such Underlying Repurchase Counterparty shall remain an FHA Approved Mortgagee, a VA Approved Lender and a GNMA
Approved Lender, as applicable. In the event the applicable Underlying Repurchase Counterparty is also approved by Fannie Mae as
an approved lender and Freddie Mac as an approved seller/servicer, and, to the extent necessary, approved by the Secretary of Housing
and Urban Development pursuant to Sections 203 and 211 of the National Housing Act, such Underlying Repurchase Counterparty shall
remain so approved. In each such case, the applicable Underlying Repurchase Counterparty is in good standing, with no event having
occurred or such Underlying Repurchase Counterparty having any reason whatsoever to believe or suspect will occur prior to the
issuance of the Agency Security or the consummation of the Take-out Commitment, as the case may be, including, without limitation,
a change in insurance coverage which would either make such Underlying Repurchase Counterparty unable to comply with the eligibility
requirements for maintaining all such applicable approvals or require notification to the relevant Agency or to the Department
of Housing and Urban Development, FHA or VA.

 

 

 

    	 	Schedule 1 Part 2 - 3	 

     

    

(p)No Plan Assets.
The related Underlying Repurchase Counterparty is not an “employee benefit plan,” as defined in Section 3(3) of ERISA,
subject to Title I of ERISA, and none of the assets of the Mortgagor constitutes or will constitute “plan assets” of
one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101.

 

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

 

(r)[reserved].

 

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

 

(t)Reserved.

 

(u)Reserved.

 

(v)Underlying
Repurchase Counterparty Diligence. Seller has delivered to Buyer all information regarding the applicable Underlying Repurchase
Counterparty as Buyer has requested and such information is satisfactory to Buyer in all material respects.

 

(w)Lender Insurance
Authority. In the event that the related Underlying Repurchase Counterparty has on the date hereof or subsequently receives
Lender Insurance Authority, such authority shall not be revoked or suspended.

 

(x)Underlying
Repurchase Documents. The Underlying Repurchase Documents are “repurchase agreements” within the meaning of Section
559 of the Bankruptcy Code.

 

(y)Reserved.

 

(z)True and Complete
Disclosure. All information, reports, exhibits, schedules, financial statements or certificates of each Underlying Repurchase
Counterparty or any of its officers furnished or to be furnished to Buyer in connection with the initial or any ongoing due diligence
of any Underlying Repurchase Counterparty or officer thereof, negotiation, preparation, or delivery of the Program Agreements are
true and complete and do not omit to disclose any material facts necessary to make the statements herein or therein, in light of
the circumstances in which they are made, not misleading. All financial statements have been prepared in accordance with GAAP (other
than monthly financial statements solely with respect to footnotes, year-end adjustments and cash flow statements).

 

 

 

    	 	Schedule 1 Part 2 - 4	 

     

    

(aa)Material Adverse
Change. There has been no material adverse change in the business, operations, financial condition, properties or prospects
of any Underlying Repurchase Counterparty since the date set forth in the most recent financial statements supplied to Buyer as
determined by Buyer in its sole good faith discretion and there is no other condition which, in Buyer’s sole good faith discretion,
constitutes a material impairment of any Underlying Repurchase Counterparty’s ability to perform its obligations under the
Underlying Repurchase Documents.

 

(bb)Insurance.
The Underlying Repurchase Counterparty maintains, for itself and its Subsidiaries, Fidelity Insurance in an aggregate amount at
least equal to $300,000. Each Underlying Repurchase Counterparty maintains, for itself and its Subsidiaries, Fidelity Insurance
in respect of its officers, employees and agents, with respect to any claims made in connection with all or any portion of the
Mortgage Loans it originates. The Underlying Repurchase Counterparty will notify the Buyer of any material change in the terms
of any such Fidelity Insurance.

 

(cc)Government
Action. No Governmental Authority or any person, agency or entity acting or purporting to act under governmental authority
has taken any action, which has not been discontinued or stayed within thirty (30) days: (i) to condemn, seize or appropriate,
or to assume custody or control of, all or any substantial part of the Property of the Underlying Repurchase Counterparty or any
Affiliate thereof, (ii) to displace the management of the Underlying Repurchase Counterparty or any Affiliate thereof, (iii) to
curtail its authority in the conduct of the business of the Underlying Repurchase Counterparty or any Affiliate thereof, or (iv)
in the nature of enforcement, to remove, limit or restrict the approval of such Underlying Repurchase Counterparty or Affiliate
as an issuer, buyer or a seller/servicer of Mortgage Loans or securities backed thereby. 

 

(dd)Financial
Statements. The Underlying Repurchase Counterparty’s audited annual financial statements or the notes thereto or other
opinions or conclusions stated therein are not qualified or limited by reference to the status of such Underlying Repurchase Counterparty
as a “going concern” or a reference of similar import.

 

(ee)Governmental
Event. In Buyer’s sole discretion, no Governmental Event individually or collectively, and whether unforeseen or arising
out of the Underlying Repurchase Counterparty’s existing applications, communications and correspondence with any Governmental
Authority or Person, has had a Material Adverse Effect with respect to the Underlying Repurchase Counterparty, or an adverse effect
upon such Underlying Repurchase Counterparty’s ability to perform such Underlying Repurchase Counterparty’s obligations
under the Underlying Repurchase Documents or any other material agreement to which it is a party or would otherwise materially
impair, limit or restrict such Underlying Repurchase Counterparty’s ability to conduct its business or its operations.

 

 

 

    	 	Schedule 1 Part 2 - 5	 

     

    

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

 

 

 

 

 

 

 

 

 

 

    	 	Schedule 1 Part 2 - 6	 

     

    

SCHEDULE 2

 

AUTHORIZED REPRESENTATIVES

 

 

 

SELLER AUTHORIZATIONS

 

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

 

Authorized Representatives for execution
of Program Agreements and amendments

 

	Name	 	Title	 	Signature

 

 

 

 

 

 

 

 

 

 

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

 

	Name	 	Title	 	Signature

 

 

 

 

    	 	Schedule 2 - 1	 

     

    

BUYER
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

         

	
        Margaret Dellafera

         

        Adam Loskove

         
	
        Vice President

         

        Vice President

         
	 
	Elie Chau	Vice President	 
	 	 	 
	Patrick Gallagher	Vice President	 
	 	 	 
	Deirdre Harrington	Vice President	 
	 	 	 
	Robert Durden

                                                       
	Vice President	 
	Ron Tarantino	Vice President	 
	 	 	 
	Michael Marra	Vice President	 

 

 

 

 

    	 	Schedule 2 - 2	 

     

    

EXHIBIT A

 

FORM OF PURCHASE CONFIRMATION

 

[Date]

 

[Name]

__________

__________

Attention:

 

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

 

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

 

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

 

    	 	Exhibit A-1	 

     

    

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

 

 

	 	 CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL
LLC

 

By:__________________________________

Name:

Title:

 

 

[Name]

 

 

By:____________________________________

Name:

Title:

 

 

 

 

 

    	 	Exhibit A-2	 

     

    

EXHIBIT B

 

MORTGAGE LOAN SCHEDULE

MORTGAGE LOAN CHARACTERISTICS

 

 

	1.	Customer Name
	2.	Collateral Number
	3.	Primary Borrower Last Name
	4.	Primary Borrower First Name
	5.	Co-Borrower Last Name *
	6.	Co-Borrower First Name *
	7.	Property Address
	8.	City
	9.	State
	10.	Zip Code
	11.	County
	12.	SS Number
	13.	SS # Co-borrower *
	14.	Product Type/Code
	15.	Underlying Repurchase Counterparty
	16.	Servicer/REO Manager
	17.	Loan Amount
	18.	Original monthly principal and interest
	19.	Original interest rate
	20.	Original date of Mortgage Note
	21.	Closing Date
	22.	First Payment Date
	23.	Maturity Date
	24.	Loan Type (adjustable, fixed, etc)
	25.	Purchase Date
	26.	Funding Method Code (wire disbursement, etc.)
	27.	Closing Agent
	28.	Address
	29.	City
	30.	State
	31.	Zip Code
	32.	Account Number
	33.	ABA Number
	34.	Closing Schedule
	35.	Instructions
	36.	Name of Bank
	37.	Address of Bank
	38.	City of Bank
	39.	State of Bank

 

    	 	Exhibit B-1	 

     

    

 

	40.	Zip of Bank
	41.	Other Account Bank *
	42.	Further Instructions *
	43.	Investor *
	44.	Investor Commitment Number *
	45.	Price *
	46.	Commitment Date *
	47.	Commitment Expiration Date *
	48.	Property Type
	49.	Lien Position
	50.	LTV
	51.	CLTV
	52.	FICO
	53.	Amortization Term
	54.	Purpose
	55.	No. of Units
	56.	Original Appraised Value
	57.	Name of appraiser
	58.	Certificate Number for each loan with primary mortgage insurance*
	59.	Margin*
	60.	Life floor*
	61.	Index type*
	62.	Initial rate floor*
	63.	Periodic rate cap*
	64.	Life cap*
	65.	First interest rate adjustment date*
	66.	Underlying Repurchase Counterparty

 

 

* If applicable.

 

    	 	Exhibit B-2	 

     

    

EXHIBIT C

 

FORM OF SERVICING RENEWAL LETTER

 

[Date]

 

[__________], as Servicer

[ADDRESS]

Attention: ___________

 

	Re:		Amended and Restated Master Repurchase Agreement, dated as of March 31, 2016 (the
“Repurchase Agreement”), by and among PennyMac Operating Partnership, L.P. (the “Seller”), PennyMac
Mortgage Investment Trust (the “Guarantor”) and Credit Suisse First Boston Mortgage Capital LLC (the “Buyer”).

 

Ladies and Gentlemen:

 

The Buyer hereby renews
the servicing term with respect to the Purchased Mortgage Loans listed on the attached schedule for an additional period of ninety
(90) days. The servicing term will automatically terminate at the end of such additional period unless renewed by Buyer in accordance
with the Repurchase Agreement.

 

 

	 	 Credit Suisse First Boston Mortgage Capital
LLC, as Buyer

 

 

 

By:  ____________________________________

       Name:

       Title:

 

 

 

 

    	 	Exhibit C-1	 

     

    

EXHIBIT D

 

FORM OF POWER OF ATTORNEY

 

KNOW ALL MEN BY THESE
PRESENTS, that PennyMac Operating Partnership, L.P. (“Seller”) hereby irrevocably constitutes and appoints Credit Suisse
First Boston Mortgage Capital LLC (“Buyer”) and any officer or agent thereof, with full power of substitution,
as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Seller and in the name
of Seller or in its own name, from time to time in Buyer’s discretion:

 

		a.	in the name of Seller, or in its own name, or otherwise, to take possession of and endorse and
collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due with respect to any assets purchased
by Buyer under the Amended and Restated Master Repurchase Agreement (as amended, restated or modified) dated March 31, 2016, by
and among PennyMac Operating Partnership, L.P., PennyMac Mortgage Investment Trust and Credit Suisse First Boston Mortgage Capital
LLC (the “Assets”) from Seller and to file any claim or to take any other action or proceeding in any court
of law or equity or otherwise deemed appropriate by Buyer for the purpose of collecting any and all such moneys due with respect
to the Obligations;

 

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

 

		c.	(i) to direct any party liable for any payment under any Assets, including without limitation,
any Underlying Repurchase Counterparty under any Underlying Repurchase Document, to make payment of any and all moneys due or to
become due thereunder directly to Buyer or as Buyer shall direct; (ii) to ask or demand for, collect, receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any
Assets including without limitation, from any Underlying Repurchase Counterparty under any Underlying Repurchase Document; (iii) to
sign and endorse any invoices, assignments, verifications, notices and other documents in connection with any Assets including
without limitation, with respect to any Underlying Repurchase Counterparty under any Underlying Repurchase Document; (iv) to
commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect
the Assets or any proceeds thereof and to enforce any other right in respect of any Assets including without limitation, any Underlying
Repurchase Document; (v) to defend any suit, action or proceeding brought against Seller with respect to any Assets, (vi) to
settle, compromise or adjust any suit, action or proceeding described in clause (vii) above and, in connection therewith,
to give such discharges or releases as Buyer may deem appropriate; and (viii) generally, to sell, transfer, pledge and make
any agreement with respect to or otherwise deal with any Assets as fully and completely as though Buyer were the absolute owner
thereof for all purposes, and to do, at Buyer’s option and Seller’s expense, at any time, and from time to time, all
acts and things which Buyer deems necessary to protect, preserve or realize upon the Assets and Buyer’s Liens thereon and
to effect the intent of this Agreement, all as fully and effectively as Seller might do, including without limitation, in each
case, with respect to any Underlying Repurchase Counterparty and any Underlying Repurchase Document;

 

 

 

    	 	Exhibit D-1	 

     

    

		d.	for the purpose of carrying out the transfer of servicing with respect to the Assets including
without limitation, directing any Underlying Repurchase Counterparty under any Underlying Repurchase Document, from Seller or any
third party to a successor servicer appointed by Buyer in its sole discretion and to take any and all appropriate action and to
execute any and all documents and instruments which may be necessary or desirable to accomplish such transfer of servicing, and,
without limiting the generality of the foregoing, Seller hereby gives Buyer the power and right, on behalf of Seller, without assent
by Seller, to, in the name of Seller or its own name, or otherwise, prepare and send or cause to be sent “good-bye”
letters to all mortgagors under the Assets, transferring the servicing of the Assets to a successor servicer appointed by Buyer
in its sole discretion;

 

		e.	for the purpose of delivering any notices of sale including without limitation, on behalf of any
Underlying Repurchase Counterparty under any Underlying Repurchase Document, to mortgagors or other third parties, including without
limitation, those required by law.

 

		f.	For the purpose of acting as attorney-in-fact for any Underlying Repurchase Counterparty pursuant
to any power of attorney granted to Seller by such Underlying Repurchase Counterparty.

 

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

 

Any capitalized term
used but not defined herein shall have the meaning assigned to such term in the Agreement.

 

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

 

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

 

 

    	 	Exhibit D-2	 

     

    

 

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

 

[REMAINDER OF PAGE INTENTIONALLY BLANK.
SIGNATURES FOLLOW.]

 

 

 

 

 

 

 

    	 	Exhibit D-3	 

     

    

 

 

IN WITNESS WHEREOF, Seller
has caused this Power of Attorney to be executed and Seller’s seal to be affixed this ____ day of _________, 2016.

 

 

	 	 PennyMac Operating Partnership, L.P., as Seller

 

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

 

By:________________________________

       Name:

       Title:

 

 

 

 

 

 

 

 

 

 

 

Signature Page to
Power of Attorney

    	 	 	 

     

    

 

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

 

On
the _______ day of _________, 2016 before me, a Notary Public in and for said State, personally appeared           ,
known to me to be ______________________ of PennyMac Operating Partnership, L.P.,
the institution that executed the within instrument and also known to me to be the person who executed it on behalf of said limited
partnership, and acknowledged to me that such limited partnership executed the within instrument.

 

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

 

_____________________________

Notary Public

 

My Commission expires
        

 

 

 

 

Signature Page to Power of Attorney

    	 	 	 

     

    

EXHIBIT E

 

LITIGATION

 

 

 

[None]

 

 

 

 

 

    	 	Exhibit E-1	 

     

    

EXHIBIT F

 

Officer’s Certificate

 

The undersigned,
____________ of [PennyMac Operating Partnership, L.P.] [PennyMac Mortgage Investment Trust] [PennyMac GP OP, Inc.], a [STATE] [corporation]
(the “Company”), hereby certifies as follows:

 

1.Attached hereto
as Exhibit A is a copy of the formation documents of the Company, as certified by the Secretary of State of the State of
[STATE].

 

2.Neither any amendment
to the formation documents of the Company nor any other organizational document with respect to the Company has been filed, recorded
or executed since _______ __, ____, and no authorization for the filing, recording or execution of any such amendment or other
organizational document is outstanding.

 

3.Attached hereto
as Exhibit B is a true, correct and complete copy of the By-laws of the Company as in effect as of the date hereof and at
all times since ________ ___, ____.

 

4.Attached hereto
as Exhibit C is a true, correct and complete copy of resolutions adopted by the Board of Directors of the Company by unanimous
written consent on _________ __, 20__ (the “Resolutions”). The Resolutions have not been further amended, modified
or rescinded and are in full force and effect in the form adopted, and they are the only resolutions adopted by the Board of Directors
of the Company or by any committee of or designated by such Board of Directors relating to the execution and delivery of, and performance
of the transactions contemplated by the Amended and Restated Master Repurchase Agreement dated as of March 31, 2016 (the “Repurchase
Agreement”), among the Seller, the Guarantor and Credit Suisse First Boston Mortgage Capital LLC (the “Buyer”).

 

5.The Repurchase
Agreement [and the Guarantee] are substantially in the form approved by the Resolutions or pursuant to authority duly granted by
the Resolutions.

 

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

 

	Name	Title	Signature

 

 

 

    	 	Exhibit F-1	 

     

    

 

 

IN WITNESS WHEREOF, the
undersigned has hereunto executed this Certificate as of the _____ day of __________, 2016.

 

[PennyMac Operating Partnership, L.P.] [PennyMac Mortgage Investment
Trust] [PennyMac GP OP, Inc.], as [Seller] [Guarantor]

By: ___________________________________

Name:

Title:

 

 

 

 

 

    	 	Exhibit F-2	 

     

    

 

 

EXHIBIT G

 

SELLER’S AND GUARANTOR’S
TAX IDENTIFICATION NUMBERS

 

 

 

	PennyMac Operating Partnership, L.P.	27-0214441
	PennyMac Mortgage Investment Trust	27-0186273

 

 

 

 

 

 

    	 	Exhibit G-1	 

     

    

EXHIBIT H

 

EXISTING INDEBTEDNESS

 

See attached.

 

 

 

    	 	Exhibit H-1	 

     

    

EXHIBIT I

 

 

 

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

 

 

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

 

Credit Suisse First
Boston Mortgage Capital LLC (the “Buyer”), has agreed to provide funds (“Escrow Funds”)
on behalf of PennyMac Operating Partnership, L.P. to [UNDERLYING REPURCHASE COUNTERPARTY] to finance certain mortgage loans (the
“Mortgage Loans”) for which you are acting as Escrow Agent.

 

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

 

You further agree that,
upon disbursement of the Escrow Funds, you will hold all Mortgage Loan Documents specified in the Escrow Instruction Letter in
escrow as agent and bailee for Buyer, and will forward or cause to be forwarded the Mortgage Loan Documents and original Escrow
Instruction Letter in connection with such Mortgage Loans by overnight courier to the Custodian within five (5) Business Days
following the date of origination.

 

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

 

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

 

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

 

 

    	 	Exhibit I-1	 

     

    

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit I-2	 

     

    

EXHIBIT J

 

FORM OF SERVICER NOTICE AND PLEDGE

 

(Affiliate Servicer)

 

[Date]

 

[__________], as Servicer

[ADDRESS]

Attention: ___________

 

		Re:	Amended and Restated Master Repurchase Agreement, dated as of March 31, 2016 (the “Repurchase
Agreement”), by and among PennyMac Operating Partnership, L.P. (the “Seller”), PennyMac Mortgage Investment
Trust (the “Guarantor”) and Credit Suisse First Boston Mortgage Capital LLC (the “Buyer”).

 

Ladies and Gentlemen:

 

[__________] (the “Servicer”)
is servicing certain mortgage loans originated by [UNDERLYING REPURCHASE COUNTERPARTY] (“URC”) and purchased
by Seller, which mortgage loans are serviced pursuant to that certain [Servicing Agreement], dated as of [_____ __, ____], between
the Servicer and URC, as amended from time to time. Pursuant to the Repurchase Agreement between Buyer and Seller, the Servicer
is hereby notified that Seller has sold and pledged to Buyer certain mortgage loans which are serviced by Servicer which are subject
to a security interest in favor of Buyer. Capitalized Terms used but not defined herein shall have the meaning assigned to such
term in the Repurchase Agreement.

 

Section 1. Servicing Rights and
Grant of Security Interest. (a) Buyer and Servicer hereby agree that in order to further secure the Obligations under
the Repurchase Agreement, Servicer hereby grants, assigns and pledges to Buyer a fully perfected first priority security interest
in all of its Servicing Rights related to the Purchased Mortgage Loans and all proceeds related thereto and in all instances,
whether now owned or hereafter acquired, now existing or hereafter created.

 

(b)The foregoing provision is
intended to constitute a security agreement or other arrangement or other credit enhancement related to the Repurchase Agreement
and Transactions thereunder as defined under Sections 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code.

 

(c)Buyer shall have all rights
and remedies hereunder as are set forth in the Repurchase Agreement.

 

(d)In addition, Servicer hereby
acknowledges that the Buyer has purchased the Purchased Mortgage Loans on a servicing released basis and Buyer shall have the
same rights and remedies with respect to the Servicing Rights as it has with respect to the Repurchase Assets under the Repurchase
Agreement.

 

 

    	 	Exhibit J-1	 

     

    

(e)Servicer agrees
to execute, deliver and/or file such documents and perform such acts as may be reasonably necessary to fully perfect Buyer’s
security interest created hereby. Furthermore, the Servicer hereby authorizes Buyer to file financing statements relating to the
security interest set forth herein, as Buyer, at its option, may deem appropriate.

 

(f)Servicer waives any and all
notice of the creation, renewal, extension or accrual of any of the Obligations under the Repurchase Agreement or security interest
hereunder and notice or proof of reliance by Buyer upon this Servicer Notice and Pledge. Servicer hereby waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon Seller or Servicer with respect the Obligations.

 

Section 2.Act as Servicer.
(a) Upon receipt of a Notice of Event of Default from Buyer (“Notice of Event of Default”) in which Buyer
shall identify the Purchased Mortgage Loans which are then pledged to Buyer under the Repurchase Agreement, the Servicer shall
segregate all amounts collected on account of such Purchased Mortgage Loans, hold them in trust for the sole and exclusive benefit
of Buyer, and remit such collections in accordance with Buyer’s written instructions. Following such Notice of Event of Default,
Servicer shall follow the instructions of Buyer with respect to the Purchased Mortgage Loans, including, without limitation, any
instructions to transfer servicing, and shall deliver to Buyer any information with respect to the Purchased Mortgage Loans reasonably
requested by Buyer.

 

(b)Servicer further acknowledges that
notwithstanding any prior owner of the Repurchase Assets, or any other agreement between such prior owner and the Servicer, Buyer’s
rights are superior to any other claim by any party and Servicer shall follow the directions of Buyer and no other party, including,
without limitation, the URC and the Seller.

 

(c)Notwithstanding
any contrary information which may be delivered to the Servicer by Seller, the Servicer may conclusively rely on any information
or Notice of Event of Default delivered by Buyer, and Seller 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.

 

Section 3.Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all such counterparts
shall together constitute one and the same instrument.

 

Section 4.Entire Agreement; Severability.
This Agreement shall supersede any existing agreements between the parties containing general terms and conditions for repurchase
transactions. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement
herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

 

Section 5.Governing Law; Jurisdiction;
Waiver of Trial by Jury. (a) THIS SERVICER NOTICE AND PLEDGE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE
LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

 

 

 

    	 	Exhibit J-2	 

     

    

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

 

(c)SELLER AND SERVICER HEREBY WAIVES
TRIAL BY JURY.

 

 

 

[remainder of page intentionally left blank]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit J-3	 

     

    

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

 

Credit Suisse First Boston Mortgage Capital
LLC, as Buyer

 

By:____________________________________

       Name:

       Title:

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit J-4	 

     

    

[__________], as Servicer

 

By:____________________________________

       Name:

       Title:

 

 

PennyMac Operating Partnership, L.P., as Seller

 

 

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

 

By:____________________________________

       Name:

       Title:

 

 

 

[UNDERLYING REPURCHASE COUNTERPARTY]

 

By:____________________________________

       Name:

       Title:

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit J-5	 

     

    

EXHIBIT K

 

 

 

FORM OF SERVICER NOTICE 

 

(Third Party Servicer)

 

[Date]

 

[__________], as Servicer

[ADDRESS]

Attention: ___________

 

		Re:	Master Repurchase Agreement, dated as of [______ __], 201[__] (the “Repurchase Agreement”),
by and [between] [among] [UNDERLYING REPURCHASE COUNTERPARTY]. (the “URC”)[, [ ] (the “Guarantor”)]
and PennyMac Operating Partnership, L.P. (the “Buyer”), and any related repledge of assets as permitted thereunder.

 

Ladies and Gentlemen:

 

 

[__________] (the “Servicer”)
is servicing certain mortgage loans originated by URC, which mortgage loans are serviced pursuant to that certain [Servicing Agreement],
dated as of [_____ __, ____], between the Servicer and URC, as amended from time to time. Pursuant to the Amended and Restated
Master Repurchase Agreement, dated as of March 31, 2016 between Buyer and Credit Suisse First Boston Mortgage Capital LLC (the
“Repledgee”), the Servicer is hereby notified that URC has sold and pledged to Buyer certain mortgage loans
which are serviced by Servicer, and Buyer has sold and repledged and may from time to time repledge certain of such mortgage loans
to Repledgee. Capitalized terms used but not defined herein shall have the meaning assigned to such term in the Repurchase Agreement.

 

Section 1.Act as Servicer.
(a) Upon receipt of a Notice of Event of Default from Buyer (“Notice of Event of Default”) in which Buyer shall
identify the Purchased Mortgage Loans which are then pledged to Buyer under the Repurchase Agreement (“Purchased Mortgage
Loans”), the Servicer shall segregate all amounts collected on account of such Purchased Mortgage Loans, hold them in
trust for the sole and exclusive benefit of Buyer, and remit such collections in accordance with Buyer’s written instructions.
Following such Notice of Event of Default, Servicer shall follow the instructions of Buyer with respect to the Purchased Mortgage
Loans, including, without limitation, any instructions to transfer servicing, and shall deliver to Buyer any information with
respect to the Purchased Mortgage Loans reasonably requested by Buyer.

 

(b)Upon receipt
of a Notice of Event of Default from Repledgee (“Notice of Repledge Event of Default”) in which Repledgee shall
identify the mortgage loans which are then pledged to Repledgee (the “Repledged Mortgage Loans”), the Servicer
shall segregate all amounts collected on account of such Repledged Mortgage Loans, hold them in trust for the sole and exclusive
benefit of Repledgee, and remit such collections in accordance with Repledgee’s written instructions. Following such Notice
of Repledge Event of Default, Servicer shall follow the instructions of Repledgee with respect to the Repledged Mortgage Loans,
and shall deliver to Repledgee any information with respect to the Repledged Mortgage Loans reasonably requested by Repledgee.

 

 

 

    	 	Exhibit K-1	 

     

    

(c)Servicer further
acknowledges that notwithstanding any prior owner of the Repurchase Assets, or any other agreement between such prior owner and
the Servicer, Repledgee’s rights are superior to any other claim by any party and Servicer shall follow the directions of
Repledgee and no other party, including, without limitation, URC and the Buyer. For the avoidance of doubt, Servicer acknowledges
that Repledgee owns the Servicing Rights and proceeds related thereto and in all instances, whether now owned or hereafter acquired,
now existing or hereafter created.

 

(d)Notwithstanding
any contrary information which may be delivered to the Servicer by URC, the Servicer may conclusively rely on any information or
Notice of Event of Default delivered by Buyer, and URC 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.

 

 

(e)Notwithstanding
any contrary information which may be delivered to the Servicer by Buyer, the Servicer may conclusively rely on any information
or Notice of Repledge Event of Default delivered by Repledgee, and URC 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 Repledge Event of Default.

 

(f)In the event
that the Servicer shall receive both a Notice of Event of Default and a Notice of Repledge Event of Default, the Servicer is hereby
instructed to follow only the directions of the Repledgee, and shall disregard any instructions of Buyer given without the
consent of the Repledgee.

 

Section 2.Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all such counterparts
shall together constitute one and the same instrument.

 

Section 3.Entire Agreement;
Severability. This Agreement shall supersede any existing agreements between the parties containing general terms and
conditions for repurchase transactions. Each provision and agreement herein shall be treated as separate and independent from
any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision
or agreement.

 

Section 4.Governing Law; Jurisdiction;
Waiver of Trial by Jury. (a) THIS SERVICER NOTICE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE
STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

 

 

 

    	 	Exhibit K-2	 

     

    

(b)EACH PARTY HERETO HEREBY IRREVOCABLY
CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK, ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS IN ANY ACTION OR PROCEEDING. SERVICER HEREBY SUBMITS
TO, AND WAIVES ANY OBJECTION THEY MAY HAVE TO, EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK
AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR
RELATING TO THE PROGRAM AGREEMENTS.

 

(c)EACH PARTY HERETO HEREBY WAIVES
TRIAL BY JURY.

 

 

 

[remainder of page intentionally left blank]

 

 

 

    	 	Exhibit K-3	 

     

    

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: _______________, _______________, _______________, Attention:
_______________.

 

Very truly yours,

 

PennyMac Operating Partnership, L.P.,
as Buyer

 

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

 

By:____________________________________

       Name:

       Title:

 

ACKNOWLEDGED:

 

 

[UNDERLYING REPURCHASE COUNTERPARTY]

 

By:____________________________________

       Name:

       Title:

 

[__________], as Servicer

 

By:____________________________________

       Name:

       Title:

 

 

[__________], as Repledgee

 

By:____________________________________

       Name:

       Title:

 

 

 

 

    	 	Exhibit K-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]