Document:

pfsi_EX_1010

		

			 

		

		
			PennyMac Financial Services, Inc.
2013 EQUITY INCENTIVE PLAN
		

		
			Restricted Stock Unit
		

		
			Award Agreement
		

		
			This Agreement is dated as of                          , 2013, between PennyMac Financial Services, Inc., a corporation organized under the laws of the State of Delaware (the “Company”), and the individual identified in the table below (the “Recipient”). 
		

		
			Recipient     
		

		
			Grant Date     
		

		
			Vesting Commencement Date  
		

		
			Number of RSUs Subject to 
		

		
			Continued Service     
		

		
			Number of RSUs Subject to 
		

		
			Performance Components     
		

		
			Total Number of RSUs     
		

		
			Performance Period     
		

		
			1.Grant of Restricted Stock Units.  Subject to the terms and conditions of this Award Agreement and the Company’s 2013 Equity Incentive Plan, as the same may be amended, modified, supplemented or interpreted from time to time (the “Plan”),  including without limitation the vesting provisions set forth in Section 2, the Company hereby grants to the Recipient, with effect as of the Grant Date specified above, the above indicated number of restricted stock units (the “RSUs”) to obtain (i) for each RSU that is subject to vesting based on continued service, one fully paid and nonassessable share of Class A Common Stock, par value $0.0001 per share, in the Company (the “Stock”), and (ii) for each RSU that is subject to vesting based on the satisfaction of performance components, one fully paid and nonassessable share of Stock if the Variance to Target is [                                   ], all as set forth on Exhibit A attached hereto, or such greater number (up to a maximum of [        ] shares of Stock) or lesser number as is obtained by applying the sliding scale percentage factors that are to be applied to the various performance components as set forth on such Exhibit A. 
		

		
			2.Vesting and Settlement.    
		

		
			2.1The RSUs shall vest in accordance with the schedule set forth below.  
		

		
			(a)    Vesting Based on Continued Service.  One-third (1/3) of the RSUs subject to vesting based on continued service shall vest in a lump sum on each of the first, second, and third anniversaries of the Vesting Commencement Date specified above, subject to 

		 

		

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the Recipient’s continued service through each such anniversary, with any fractions rounded down except on the final installment.    The shares of Stock earned as such RSUs vest will be transferred or issued to the Recipient (or his or her estate, in the event of his or her death) promptly after the date they vest, but in any event not later than the 15th day of the third month following the end of the calendar year in which such RSUs become vested.  
		

		
			(b)    Vesting Based on Performance Components.  The RSUs subject to vesting based on satisfaction of performance components are subject to cumulative achievement of goals based on the following performance components:  [(1) the Company’s Earnings Per Share, (2) the Company’s Total Shareholder Return, (3) the Company’s Return on Equity,  and (4) the Recipient’s Individual Effectiveness], in the amounts and each as further described in Exhibit A attached hereto.  The RSUs subject to vesting based on satisfaction of performance components shall vest in a lump sum on the date the Committee determines that the goals based on the performance components have been satisfied,  subject to the Recipient’s continued service through such date.  The Recipient’s satisfaction of goals based on performance components shall be determined by the Committee in its sole discretion.  The shares of Stock earned as such RSUs vest will be transferred or issued to the Recipient (or his or her estate, in the event of his or her death) promptly after they vest, but in any event not later than the 15th day of the third month following the end of the calendar year in which such RSUs become vested.  Notwithstanding anything to the contrary in this Agreement, if any settlement of RSUs would otherwise result in the issuance of a fractional share to the Recipient after aggregating all shares and fractional shares to be issued to the Recipient in connection with such settlement, then any such final fractional share shall be eliminated and the Company shall pay to the Recipient, in lieu thereof, cash in an amount equal to (i) the average closing price of a share of Stock during the 10 most recent trading days prior to the date of issuance of the other shares issued in settlement of such RSU, multiplied by (ii) such fractional amount.
		

		
			2.2Until the RSUs vest and are issued pursuant to the terms of this Award Agreement, the Recipient shall have no rights as a stockholder, such as the right to vote or to receive dividends in respect of the Stock covered by this Award.  
		

		
			2.3The Recipient’s name shall be entered as the stockholder of record on the books and records of the transfer agent for the Company with respect to the Stock issuable pursuant to Section 2.1 only upon compliance to the satisfaction of the Committee with all requirements under applicable laws or regulations in connection with such issuance and with the requirements of this Agreement and of the Plan.  The determination of the Committee as to such compliance shall be final and binding on the Recipient.  Notwithstanding anything to the contrary in this Agreement, no Stock shall be issued in settlement of vested RSUs if the issuance of such shares would constitute a violation of any applicable federal or state securities law or other law or regulation.  As a condition to the issuance of Stock to the Recipient pursuant to Section 2.1, the Company may require the Recipient to make any representation or warranty to the Company at the time vested Stock becomes issuable to the Recipient as in the opinion of legal counsel for the Company may be required by any applicable law or regulation, including the execution and delivery of an appropriate representation statement.  Accordingly, the stock 

		 

		

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certificates for the Stock issued pursuant to this Award may bear appropriate legends restricting the transfer of the Stock.
		

		
			3.Effect of Termination.     Unless otherwise expressly provided herein, no RSUs shall vest following the date (the Recipient’s “Termination Date”), reasonably fixed and determined by the Committee, of the voluntary or involuntary termination of the Recipient’s employment or other association with all of the Company and its Affiliates, for any or no reason whatsoever, including death or disability and an entity ceasing to be an Affiliate of the Company; provided, however, that military or sick leave shall not be deemed a termination of employment or other association, if it does not exceed the longer of 90 days or the period during which the Recipient’s reemployment rights, if any, are guaranteed by statute or by contract.  As of the Recipient’s Termination Date, all of the then unvested RSUs shall be forfeited by the Recipient or any transferee.
		

		
			4.Restrictions on Transfer.  The RSUs may not be assigned or transferred (by operation of law or otherwise) except by will or the laws of descent and distribution.
		

		
			5.Miscellaneous.
		

		
			5.1No Special Service Rights.  Nothing contained in this Award Agreement shall confer upon the Recipient any right with respect to the continuation of his or her employment or other association with the Company (or any Affiliate), or interfere in any way with the right of the Company (or any Affiliate), subject to the terms of any separate employment or consulting agreement or provision of law or corporate articles or by-laws to the contrary, at any time to terminate such employment or consulting agreement or to increase or decrease, or otherwise adjust, the other terms and conditions of the Recipient’s employment or other association with the Company and its Affiliates.
		

		
			5.2Entire Agreement; Counterparts.  This Award Agreement, including the Plan, constitute the entire agreement of the parties with respect to the subject matter hereof.  This Award Agreement may be executed in any number of counterparts, each of which shall be an original and all of which, taken together, shall constitute one and the same instrument.  In making proof of this Award Agreement it shall not be necessary to produce or account for more than one such counterpart.
		

		
			5.3Tax Consequences.The Company makes no representation or warranty as to the tax treatment to the Recipient of receipt of these RSUs, and does not warrant to the Recipient that all compensation paid or delivered to him or her for his or her services will be exempt from, or paid in compliance with, Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder.  The Recipient should rely on his or her own tax advisors for all such advice.
		

		
			5.4Community Property.    To the extent the Recipient resides in a jurisdiction in which community property rules apply, without prejudice to the actual rights of the spouses as between each other, for all purposes of this Award Agreement, the Recipient shall be treated as agent and attorney-in-fact for that interest held or claimed by the Recipient’s spouse 

		 

		

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with respect to these RSUs and the parties hereto shall act in all matters as if the Recipient was the sole owner of these RSUs.  This appointment is coupled with an interest and is irrevocable.    
		

		
			6.Receipt of Plan.    The RSUs were awarded under the Plan, to which this Award Agreement is subject in all respects, including without limitation the adjustment and tax withholding provisions therein.  All capitalized terms used in this Award Agreement and not otherwise defined shall have the meanings ascribed thereto in the Plan. The Recipient has reviewed and understands the Plan and this Award Agreement in their entirety, and has had an opportunity to obtain the advice of counsel prior to executing this Award Agreement.  The Recipient hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Award Agreement.
		

		
			IN WITNESS WHEREOF,  the Recipient and the Company have entered into this Award Agreement as of the Grant Date.
		

			
					
						 

					
					
						 

				

		
			PENNYMAC FINANCIAL SERVICES, INC.
		

		
			By:__________________________________________________________
		

		
			Signature of Recipient
		

		
			Title:___________________________
		

		
			
		

		
			

		 

		

			A/75523132.9 

		

 

		

			PennyMac Financial Services, Inc. 2013 EQUITY INCENTIVE PLAN

		

		

			Restricted Stock Unit Award Agreement

		

		

			Exhibit A

		

 
		

			
					
						 

					
						Recipient:____________________________

					
						 

					
						 

					
						Performance Period:____________________________

					
						 

					
					
						RSUs Subject to Performance 

					
						Components (“Grant”):________________________

					
						 

					
						Total Potential Shares if  Maximum 

					
						Potential Components Satisfied:________________________

				
	
					
						 

					
					
						 

				

			
					
						PFSI Equity Incentive Plan Performance Objectives 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Award Components

					
					
						Component

					
					
						Comments

					
					
						Target

					
					
						% of Total

				
	
					
						 1.   Earnings Per Share

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 2.  Total Shareholder Return (TSR)

					
					
						 

					
					
						 

					
					
						 

				
	
					
						3. Return on Equity (ROE)

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 4.  Individual Effectiveness

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		

		 

		

			A/75523132.9 

		

 

		

			PennyMac Financial Services, Inc. 2013 EQUITY INCENTIVE PLAN

		

		

			Restricted Stock Unit Award Agreement

		

		

			Exhibit A

		

	
					
						Pay-Out Scale for Component 1

					
					
						Variance to Target

					
					
						Factor

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Pay-Out Scale for Component 2

					
					
						Variance to Target

					
					
						Factor

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Pay-Out Scale for Component 3

					
					
						Variance to Target

					
					
						Factor

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Multiplier Scale for Component 4

					
					
						Rating

					
					
						Description

					
					
						Factor

				
	
					
						5

					
					
						Outstanding

					
					
						 

				
	
					
						4

					
					
						Exceeds Expectations

					
					
						 

				
	
					
						3

					
					
						Meets Expectations

					
					
						 

				
	
					
						2

					
					
						Needs Improvement

					
					
						 

				
	
					
						1

					
					
						Unsatisfactory

					
					
						 

				

		
			 
		

		 

		

			A/75523132.9pfsi_EX_1023

		
			AMENDMENT NO. 5
		

		
			 
TO SECOND AMENDED AND RESTATED
		

		
			FLOW SERVICING AGREEMENT
		

		
			 
		

		
			Amendment No. 5 to Second Amended and Restated Flow Servicing Agreement, dated as of September 1, 2015 (the “Amendment”), by and between PennyMac Loan Services, LLC, a Delaware limited liability company (the “Servicer”), and PennyMac Operating Partnership, L.P.,  Delaware limited partnership (the “Owner”).
		

		
			 
		

		
			RECITALS
		

		
			WHEREAS, the Servicer and the Owner are parties to that certain Second Amended and Restated Flow Servicing Agreement, dated as of March 1, 2013 (the “Existing Servicing Agreement” and, as amended by this Amendment, the “Servicing Agreement”).  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Servicing Agreement.
		

		
			WHEREAS, the Servicer and the Owner  have agreed, subject to the terms and conditions of this Amendment, that the Existing Servicing Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Servicing Agreement.
		

		
			NOW, THEREFORE, in consideration of the mutual premises and mutual obligations set forth herein, the Servicer and the Owner hereby agree that the Existing Servicing Agreement is hereby amended as follows:
		

			
	
			
				 SECTION 1.
			Definitions. Section 1.01 of the Existing Servicing Agreement is hereby amended by deleting the definitions of  “Ancillary Income”,  “Servicing Fee”  and “Supplemental Servicing Fee”  and replacing each in its entirety as follows:

		
			Ancillary Income:  All income derived from the Mortgage Loans (other than payments or other collections in respect of principal, interest, Escrow Payments and Prepayment Penalties attributable to the Mortgage Loans) including, but not limited to, assumption fees, reconveyance fees, subordination fees, speedpay fees, mortgage pay on the web fees, automatic clearing house fees, demand statement fees, modification fees, if any, fees received with respect to checks on bank drafts returned by the related bank for insufficient funds,  the Servicer’s share of all late charges, and other similar types of fees arising from or in connection with any Mortgage Loan to the extent not otherwise payable to the Mortgagor under applicable law or pursuant to the terms of the related Mortgage Note.  In no event shall the Servicer be entitled to any Prepayment Penalties.
		

		
			
 Servicing Fee:  With respect to each Mortgage Loan, the monthly sum of (a) the applicable Base Servicing Fee, (b) if such Mortgage Loan is a Third Party Loan, the applicable Additional Servicing Fee, and (c) if such Mortgage Loan is a Distressed Whole Loan, the applicable Supplemental Servicing Fee. With respect to each newly boarded Mortgage Loan, boarded on or before the 15th day of the 

		 

 

		

			 

		

month, the Servicer shall be entitled to receive the full monthly Servicing Fee for each newly boarded Mortgage Loan. With respect to each newly boarded Mortgage Loan boarded after the 15th day of the month, the Servicer shall be entitled to one-half of the monthly Servicing Fee for each newly boarded Mortgage Loan. With respect to each Mortgage Loan released from servicing, Servicer shall be entitled to receive the full monthly Servicing Fee irrespective of the applicable release date.
		

		
			Supplemental Servicing Fee:  With respect to each Distressed Whole Loan, the Supplemental Servicing Fee set forth in or established pursuant to Exhibit 9 hereto.
		

		
			Third Party Loan: A Mortgage Loan (including any Correspondent Loan) owned by a third party investor and with respect to which Owner owns or has otherwise acquired the Servicing Rights relating thereto, and any Correspondent Loan held by Owner as a whole loan.
		

			
	
			
				 SECTION 2.
			Servicing of Agency Mortgage Loans.  Article III of the Existing Servicing Agreement is hereby amended by deleting Section 3.01 in its entirety and replacing it as follows:

		
			Section 3.01Servicer to Act as Servicer of Agency Mortgage Loans.
		

		
			The Servicer shall service and administer each Agency Mortgage Loan in accordance and shall otherwise comply in all respects with the related Guide, including the requirements of such Guide relating to the maintenance of custodial and escrow accounts, it being understood that any interest paid by the depository institution on funds deposited in any related custodial account or escrow account shall accrue to the benefit of the Owner. To the extent required by law, the Owner shall be responsible for interest on escrowed funds to the Mortgagor notwithstanding that such escrow account may be non interest bearing or that interest paid thereon is insufficient for such purposes.
		

			
	
			
				 SECTION 3.
			Servicing of Non-Agency Mortgage Loans.  Article IV of the Existing Servicing Agreement is hereby amended as follows:

			
	
			
				 (a)
			by deleting the last sentence of Section 4.04 in its entirety and replacing it as follows:

		
			Any interest paid by the depository institution on funds deposited in the Custodial Account and relating to any Distressed Whole Loan shall accrue to the benefit of the Servicer and the Servicer may retain any such interest.
		

			
	
			
				 (b)
			by deleting Section 4.05(vi) in its entirety and replacing it as follows:

		
			(vi) to pay to itself any interest earned on funds deposited in the Custodial Account and relating to any Distressed Whole 

		 

		

			2

		

		

			 

		

 

		

			 

		

Loan (all such interest to be withdrawn monthly not later than each Remittance Date); and
		

			
	
			
				 (c)
			by deleting the last two sentences of Section 4.06 in their entirety and replacing them as follows:

		
			Any interest paid on funds deposited in the Escrow Account by the depository institution and relating to any Distressed Whole Loan shall accrue to the benefit of the Servicer.  To the extent required by law, the Servicer shall be responsible to pay from its own funds interest on escrowed funds to the Mortgagor notwithstanding that the Escrow Account may be non interest bearing or that interest paid thereon is insufficient for such purposes.
		

			
	
			
				 (d)
			by deleting Section 4.07(vi) in its entirety and replacing it as follows:

		
			(vi) to pay the Servicer, or any Mortgagors to the extent required by law, any interest due on the funds deposited in the Escrow Account and relating to any Distressed Whole Loan or to pay the Owner, or any Mortgagors to the extent required by law, any interest paid on the funds deposited in the Escrow Account and relating to any Mortgage Loan other than a Distressed Whole Loan;
		

			
	
			
				 SECTION 4.
			Exhibits. Exhibit 9 of the Existing Servicing Agreement is hereby amended by deleting it in its entirety and replacing it with the form attached hereto as Exhibit A.

			
	
			
				 SECTION 5.
			Conditions Precedent.  This Amendment shall become effective as of the date first set forth above (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent:

			
	
			
				 5.1
			Delivered Documents.  On or prior to the Amendment Effective Date, each party shall have received the following documents, each of which shall be satisfactory to such party in form and substance:

			
	
			
				 (a)
			this Amendment, executed and delivered by duly authorized officers of the Servicer and the Owner; and

			
	
			
				 (b)
			such other documents as such party or counsel to such party may reasonably request.

			
	
			
				 5.2
			Representations and Warranties.  On or prior to the Amendment Effective Date, each party shall be in compliance in all material respects with all the terms and provisions set forth in the Existing Servicing Agreement on its part to be observed or performed.

		 

		

			3

		

		

			 

		

 

		

			 

		

			
	
			
				 SECTION 6.
			Limited Effect.  Except as expressly amended and modified by this Amendment, the Existing Servicing Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms. 

			
	
			
				 SECTION 7.
			GOVERNING LAW.    THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

			
	
			
				 SECTION 8.
			Counterparts.  This Amendment may be executed in one or more counterparts and by different parties hereto on separate counterparts, each of which, when so executed, shall constitute one and the same agreement.

			
	
			
				 SECTION 9.
			Conflicts.  The parties hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of the Existing Servicing Agreement, the provisions of this Amendment shall control.

		
			[SIGNATURE PAGE FOLLOWS]
		

		
			 
		

		
			

		 

		

			4

		

		

			 

		

 

		

			 

		

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

		
			 
		

		
			The Servicer:PENNYMAC LOAN SERVICES, LLC
		

		
			 
		

		
			
		

		
			By:  _/s/ Anne D. McCallion________________
 Name:  Anne D. McCallion
 Title:    Chief Financial Officer
		

		
			 
		

		
			The Owner:PENNYMAC OPERATING PARTNERSHIP, L.P.
		

		
			By:  PennyMac GP OP, Inc.,
		

		
			_________________    its General Partner
		

		
			By: _/s/ Andrew S. Chang_________________
 Name:    Andrew S. Chang
 Title:   Chief Business Development Officer
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

Exhibit A
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			 

		

EXHIBIT 9
		

		
			 
		

		
			TERM SHEET
		

		
			 
		

		
			THIRD PARTY LOANS
		

		
			BASE SERVICING FEES
(per loan)
		

		
			With respect to each Mortgage Loan that is a Third Party Loan and not a Distressed Whole Loan, the Base Servicing Fee shall be:
		

		
			(i)if such Mortgage Loan is a Fixed-Rate Mortgage Loan, $7.50; or 
		

		
			(ii)if such Mortgage Loan is an Adjustable-Rate Mortgage Loan, $8.50.
		

		
			 
		

		
			ADDITIONAL SERVICING FEES
		

		
			(per loan)
		

		
			With respect to each Mortgage Loan that is a Third Party Loan, the Additional Servicing Fee shall be one of the following: 
		

		
			(i)if, as of the first day of the relevant month, such Mortgage Loan is not delinquent, or is delinquent by less than 30 days, and no bankruptcy proceeding is pending by or against the Mortgagor, 0; 
		

		
			(ii)if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 30 days or more and less than 60 days, and no bankruptcy proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $10.00;
		

		
			(iii)if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 60 days or more and less than 90 days, and no bankruptcy proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $20.00;
		

		
			(iv)if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 90 days or more, and no bankruptcy proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $50.00;
		

		
			(v)if, as of the first day of the relevant month, a bankruptcy proceeding is pending by or against the Mortgagor, $45.00; 
		

		
			

		 

		

			Exh. 9-1

		

		

			 

		

 

		

			 

		

(vi)if, as of the first day of the relevant month, foreclosure proceedings have been commenced and the Mortgaged Property has not become an REO Property, $55.00; or 
		

		
			(vii)if, as of the first day of the relevant month, the Mortgaged Property has become an REO Property, $75.00.    
		

		
			 
		

		
			 
		

		
			

		 

		

			Exh. 9-2

		

		

			 

		

 

		

			 

		

DISTRESSED WHOLE LOANS
		

		
			BASE SERVICING FEES
(per loan)
		

		
			With respect to each Mortgage Loan that is a Distressed Whole Loan, the Base Servicing Fee shall be one of the following: 
		

		
			(i)if, as of the first day of the relevant month, such Mortgage Loan is not delinquent, or is delinquent by less than 30 days, and no bankruptcy proceeding is pending by or against the Mortgagor, $30.00; 
		

		
			(ii)if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 30 days or more and less than 90 days, and no bankruptcy proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $60.00; 
		

		
			(iii)if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 90 days or more, and no bankruptcy proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $90.00; 
		

		
			(iv)if, as of the first day of the relevant month, such Mortgage Loan is not delinquent, or is delinquent by less than 30 days, and a bankruptcy proceeding is pending by or against the Mortgagor, $100.00; 
		

		
			(v)if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 30 days or more, and a bankruptcy proceeding is pending by or against the Mortgagor, $100.00; 
		

		
			(vi)if, as of the first day of the relevant month, foreclosure proceedings have been commenced and the Mortgaged Property has not become an REO Property, $125.00; or 
		

		
			(vii)if, as of the first day of the relevant month, the Mortgaged Property has become an REO Property, $75.00.  
		

		
			 
		

		
			SUPPLEMENTAL SERVICING FEES
		

		
			With respect to each Mortgage Loan that is a Distressed Whole Loan, the Supplemental Servicing Fee shall be $25.00.
		

		
			 
		

		
			
		

		
			

		 

		

			Exh. 9-3

		

		

			 

		

 

		

			 

		

THIRD PARTY LOANS AND DISTRESSED WHOLE LOANS
		

		
			OTHER KEY PARAMETERS
		

			
					
						 

					
					
						 

				
	
					
						Remittance Types

					
					
						Actual/Actual Basis during Interim Servicing Period 

				
	
					
						Remittance Date

					
					
						See definition of Remittance Date

				
	
					
						Servicing Advances

					
					
						Servicer to be reimbursed monthly for all unpaid Servicing Advances incurred by Servicer in the prior month including Cost of Funds.

				
	
					
						Cost of Funds on Servicing Advances

					
					
						Refer to Section 5.04

				
	
					
						Prepayment Penalties

					
					
						Owner will retain 100% of the prepayment penalties.

				
	
					
						Late Charges Collected

					
					
						Servicer will retain 75% of late charges collected by Servicer

				
	
					
						Ancillary Income

					
					
						Servicer will retain 100% of all Ancillary Income

				
	
					
						Delegated Authority

					
					
						Refer to Exhibit 10

				
	
					
						Contract Term

					
					
						Refer to Section 8.01

				
	
					
						Eligible Mortgage Loan

					
					
						See definition of Eligible Mortgage Loan

				

		
			 
		

		
			 
		

		
			ANCILLARY INCOME AND OTHER FEES
		

		
			The Servicer shall be entitled to all Ancillary Income and the following Other Fees in addition to the Servicing Fee:
		

		
			Setup Fee:  With respect to each Mortgage Loan, other than a Distressed Whole Loan, $10.00 if information is provided to Servicer in a format that enables electronic boarding or $25.00 if information is provided to Servicer in format that necessitates manual boarding.  With respect to each Distressed Whole Loan, $15.00 if information is provided to Servicer in format that enables electronic boarding or $25.00 if information is provided to Servicer in format that necessitates manual boarding.  
		

		
			Service Release Fee:  With respect to each Mortgage Loan, other than a Distressed Whole Loan, $25.00 if released on or prior to the first anniversary of boarding, $23.00 if released after the first anniversary of boarding and on or prior to the second anniversary of boarding, and $18.00 if released thereafter. With respect to each Distressed Whole Loan, $500.00 if released within one 

		 

		

			Exh. 9-4

		

		

			 

		

 

		

			 

		

year of boarding, $40.00 if released within two years of boarding and $40.00 if released thereafter.
		

		
			Deed in Lieu Fee:  $500, unless the deed in lieu is completed under the U.S. Treasury’s Home Affordable Foreclosure Alternatives initiative, in which case no Deed in Lieu Fee shall apply. 
		

		
			Liquidation Fee:  150 basis points of the gross proceeds received in connection with either the disposition of a Mortgage Loan (including the sale of the related Mortgage Note) or an REO Property or a full or discounted payoff accepted by the Servicer with respect to a Mortgage Loan, including a full or discounted payoff accepted in connection with the sale of the Mortgaged Property to a third party.
		

		
			REO Property Rental Fee: $30 per month per REO Property.
		

		
			REO Property Management Fee: Servicer’s cost if property management services and/or any related software costs are outsourced to a third party property management firm or 9% of gross rental income if Servicer provides property management services directly.
		

		
			Tax Service Contract:  $75.00 per Mortgage Loan.
		

		
			Flood Zone Service Contract:  Servicer’s cost.
		

		
			MERS Fee:  Servicer’s cost.
		

		
			Reperformance Fee:  150 basis points of the unpaid principal balance of the Mortgage Loan (as then in effect) if the Mortgage Loan is brought current (after having been delinquent for a period of 90 days or more) without any modification and remains current for a consecutive period of 12 months or is sold prior to the expiration of such 12 months.
		

		
			Modification Fee:  150 basis points of the unpaid principal balance of the Mortgage Loan (as in effect immediately after the consummation of the modification) if the modification includes an interest rate reduction or is classified by the Servicer (acting in accordance with Accepted Servicing Practices) as a full modification; or, if the Servicer participates in the U.S. Treasury’s Home Affordable Modification program (or other similar mortgage loan modification programs) and enters into a transaction involving the Mortgage Loan that results in the payment or retention of any incentive payment to the Servicer or Owner and the Servicer is not otherwise entitled to a Modification Fee as set forth above, 150 basis points of the unpaid principal balance of the Mortgage Loan (as in effect immediately after the consummation of the transaction).
		

		
			If the Servicer enters into a transaction involving the Mortgage Loan under the U.S. Treasury Department’s Home Affordable Modification program (or other similar mortgage loan modification programs) that results in any incentive payment to the Servicer or Owner and the Servicer has already collected a Modification Fee, the Servicer shall reimburse the Owner the amount of such incentive payments.
		

		
			In the event the Servicer effects a refinancing of a Distressed Whole Loan on behalf of the Owner and not through a third party lender and the resulting Mortgage Loan is readily saleable, or the Servicer originates a Mortgage Loan to facilitate the disposition of REO 

		 

		

			Exh. 9-5

		

		

			 

		

 

		

			 

		

Property, the Servicer shall be entitled to fees and other compensation in connection with such originations based on market-based pricing and terms that are consistent with the pricing and terms offered by the Servicer to unaffiliated third parties on a retail basis.  The amount of the compensation and the pricing and terms offered by the Servicer shall be subject to review by the Owner and the Servicer from time to time to reflect market rates.  The Owner shall reimburse the Servicer for any out of pocket expenses that the Servicer incurs in connection with any such origination, including title fees, legal fees and closing costs.
		

		
			 
		

		 

		

			Exh. 9-6

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