Document:

Exhibit 10.1

 

MASTER SPREAD ACQUISITION AND MSR
SERVICING AGREEMENT

 

This Master Spread
Acquisition Agreement (the “Agreement”) is entered into as of January 22, 2016 by and between PennyMac Corp.,
a Delaware corporation (the “Seller”) and PennyMac Holdings, LLC, a Delaware limited liability company (the
“Purchaser”).

 

RECITALS

 

WHEREAS, the Purchaser
may from time to time desire to acquire the right to excess servicing spread arising from mortgage servicing rights owned by Seller;
and

 

WHEREAS, the Seller
and the Purchaser desire that the Seller service or cause to be subserviced the mortgage loans to which such servicing rights relate
and provide additional administrative services;

 

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

 

ARTICLE
1

DEFINITIONS

 

Section 1.01       
Definitions. For purposes of this Agreement (which, for the avoidance of doubt, shall include the Preamble and Recitals
hereto), the following capitalized terms, unless the context otherwise requires, shall have the respective meanings set forth below:

 

“Accepted
Servicing Practices” means, with respect to each Mortgage Loan (including all real estate acquired in respect of such
Mortgage upon a foreclosure or acceptance of a deed in lieu of foreclosure), each of those mortgage servicing practices (including
collection procedures) 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, which servicing practices (i) are in compliance with
all federal, state and local laws and regulations, (ii) shall be in accordance with the Seller’s policies and procedures
as amended from time to time for mortgage loans of the same type, (iii) are in accordance with the terms of the related mortgage,
deed of trust or similar security instrument and the related promissory note and (iv) are at a minimum based on the requirements
set forth from time to time by Fannie Mae.

 

“Assignment”
means an assignment substantially in the form of Exhibit B.

 

“Assignment
Date” means, with respect to any Mortgage Loan Identification Date, the date that is five (5) Business Days following
such Mortgage Loan Identification Date or such other date as may be set forth in the applicable Confirmation.

 

    	 	1	 

     

    

 

“Base Servicing
Fee” means, with respect to each Primary Portfolio and each Collection Period, an amount equal to the product of (A)
the aggregate outstanding principal balance of the Primary Portfolio Mortgage Loans as of the first day of such Collection Period
and (B) one-twelfth of the Transaction Base Servicing Fee Rate; provided, however, that (1) if the initial Collection Period
is less than a full month, such fee for each such Primary Portfolio Mortgage Loan shall be an amount equal to the product of the
fee otherwise described above and a fraction, the numerator of which is the number of days in such initial Collection Period and
the denominator of which is 360; (2) if any Primary Portfolio Mortgage Loan ceases to be part of the Primary Portfolio during such
Collection Period as a result of a termination of the Seller’s duties as servicer or subservicer under the Servicing Agreement
and Fannie Mae Guide, the portion of such amount that is attributable to such Primary Portfolio Mortgage Loan shall be adjusted
to an amount equal to the product of such portion and a fraction, the numerator of which is the number of days in such Collection
Period during which such Primary Portfolio Mortgage Loan was included in the Primary Portfolio, and the denominator of which is
360; and (3) if the Primary Portfolio Collections for such Primary Portfolio and such Collection Period were used to cover prepayment
interest shortfalls on the Primary Portfolio Mortgage Loans, the fee otherwise described above shall be reduced by the amount of
such reduction multiplied by the ratio (expressed as a percentage) equal to the Transaction Base Servicing Fee Rate divided by
the rate per annum at which the Primary Portfolio Collections accrued in the aggregate during such Collection Period.

 

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

 

“Collection
Period” means, with respect to each Transaction Remittance Date, the calendar month preceding the month in which such
Transaction Remittance Date occurs.

 

“Confirmation”
means a letter agreement between the Seller and the Purchaser identified therein and substantially in the form attached hereto
as Exhibit A that includes a mortgage loan schedule and sets forth each of a “transaction settlement date”,
a “transaction base servicing fee rate”, a “transaction asset purchase agreement”, a “transaction
purchase price percentage” and a “transaction excess spread percentage”.

 

“Confirmation
Date” means the date of a Confirmation.

 

“Cut-off
Date” means, with respect to each Primary Portfolio, the date set forth in the related Confirmation.

 

“Eligible
Account” means any of (i) an account maintained with a federal or state chartered depository institution or trust company,
the long-term deposit or long-term unsecured debt obligations of which are rated no less than investment grade by at least two
Rating Agencies, if the deposits are to be held in the account for more than thirty (30) days, or the short-term deposit or short-term
unsecured debt obligations of which are rated investment grade by at least two Rating Agencies, (ii) a segregated trust account
maintained with the trust department of a federal or state chartered depository institution or trust company acting in its fiduciary
capacity, and which, in either case, has a combined capital and surplus of at least $50,000,000 and is subject to supervision or
examination by federal or state authority and to regulations regarding fiduciary funds on deposit similar to Title 12 of the Code
of Federal Regulations Section 9.10(b), or (iii) an account approved by the Seller and the Purchaser.

 

    	 	2	 

     

    

 

“Expense
Amount” has the meaning set forth in Section 7.16.

 

“Expense
Amount Accountant’s Letter” has the meaning set forth in Section 7.16.

 

“Expense
Amount Tax Opinion” has the meaning set forth in Section 7.16.

 

“Expense
Escrow Account” has the meaning set forth in Section 7.16.

 

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

 

“Fannie
Mae Guide” means, collectively, the Fannie Mae Selling Guide and Fannie Mae Servicing Guide, as each such guide may be
amended from time to time hereafter, including the “Purchase Documents” (as such term is defined therein).

 

“Fannie
Mae Mortgage Loan” A Mortgage Loan underwritten in accordance with the guidelines of Fannie Mae described in the Fannie
Mae Guide.

 

“Lien”
means any mortgage, deed of trust, pledge, hypothecation, collateral assignment, charge, deposit, arrangement, encumbrance, lien
(statutory or other), security interest or preference, priority or other security agreement or preferential arrangement of any
kind or nature whatsoever intended to assure payment of any indebtedness or the performance of any other obligation, including
any conditional sale or other title retention agreement.

 

“Mortgage
Loan”“ means a one-to-four family residential loan that is secured by a mortgage, deed of trust or other similar
security instrument. A Mortgage Loan includes the Mortgage Loan Documents, the Mortgage File, the monthly payments, any principal
payments or prepayments, any related escrow accounts, the mortgage servicing rights and all other rights, benefits, proceeds and
obligations arising from or in connection with such Mortgage Loan.

 

“Mortgage
Loan Documents” means the mortgages, notes, assignments and an electronic record or copy of a mortgage loan application.

 

“Mortgage
Loan Identification Date” means, with respect to a calendar month, the 25th day of the immediately succeeding calendar
month.

 

“Mortgaged
Property” means the real property that secures a Mortgage Loan.

 

“Nonqualifying
Income” means any amount that is treated as gross income for purposes of Section 856 of the Code and which is not Qualifying
Income.

 

“Person”
means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision thereof.

 

“Primary
Portfolio” means the residential mortgage loans identified and listed on a schedule to a Confirmation.

 

    	 	3	 

     

    

 

“Primary
Portfolio Collections” means, with respect to each Primary Portfolio, the funds collected on the related Primary Portfolio
Mortgage Loans and allocated as the servicing compensation payable to the Seller as servicer or subservicer of such Primary Portfolio
Mortgage Loans pursuant to the Servicing Agreement and the Fannie Mae Guide, other than Ancillary Income and, for the avoidance
of doubt, other than reimbursements received by the Seller from a loan owner for advances and other out-of-pocket expenditures
pursuant to the Servicing Agreement and the Fannie Mae Guide.

 

“Primary Portfolio
Excess Spread” means, with respect to each Primary Portfolio, the rights of the Seller, severable from any and all other
rights under the Servicing Agreement and the Fannie Mae Guide, to the Transaction Excess Spread Percentage of the Primary Portfolio
Total Spread on such Primary Portfolio. For the avoidance of doubt, the funds represented by this term are derived from the Servicing
Rights, but do not include the right to all or any portion of the Servicing Rights themselves.

 

“Primary
Portfolio Mortgage Loan” means a Mortgage Loan that is included in the Primary Portfolio.

 

“Primary
Portfolio Retained Spread” means, with respect to each Primary Portfolio, the rights of the Seller, severable from any
and all other rights under the Servicing Agreement and the Fannie Mae Guide, to the Transaction Retained Spread Percentage of the
Primary Portfolio Total Spread on such Primary Portfolio.

 

“Primary
Portfolio Termination Payment” means, with respect to each Primary Portfolio, any payment made by a loan owner or master
servicer in connection with an exercise of any right that such Person may have to terminate the Seller as the servicer or subservicer
of any Primary Portfolio Mortgage Loan; provided, however, that, if such a payment is made with respect to a group
of mortgage loans and fewer than all such mortgage loans are Primary Portfolio Mortgage Loans, then the “Primary Portfolio
Termination Payment” shall mean the portion of such termination payment that is reasonably attributable to the Primary Portfolio
Mortgage Loans in such group based upon the methodology set forth in the Servicing Agreement and the Fannie Mae Guide for the calculation
of termination payments thereunder.

 

“Primary
Portfolio Total Spread” means, with respect to each Primary Portfolio, for each Collection Period on or after the related
Transaction Settlement Date, the sum of the following: (a) the Primary Portfolio Collections received during such Collection Period,
net of the Base Servicing Fee; and (b) all other amounts payable by a loan owner or master servicer to the Seller with respect
to the Servicing Rights for the Primary Portfolio Mortgage Loans, including any Primary Portfolio Termination Payments, but for
the avoidance of doubt, excluding all Ancillary Income and reimbursements for advances and other out-of-pocket expenditures received
by the Seller from a loan owner in accordance with the Servicing Agreement and the Fannie Mae Guide.

 

“Protected
REIT” means any entity that (i) has elected to be taxed as a real estate investment trust pursuant to Section 856 et
seq. of the Code, (ii) owns a direct or indirect equity interest in Purchaser, and (iii) is treated for purposes of Section 856
of the Code as owning all or a portion of the assets of the Purchaser or as receiving all or a portion of the Purchaser’s
income.

 

“Qualifying
Income” means gross income that is described in Section 856(c)(2) or 856(c)(3) of the Code.

 

    	 	4	 

     

    

 

“REIT Requirements”
means the requirements imposed on real estate investment trusts pursuant to Sections 856 through and including 860 of the Code.

 

“Servicing
Agreement” means the unitary indivisible master servicing contract described in the Fannie Mae Guide and entered into
by and between Fannie Mae and the Seller.

 

“Servicing
Rights” means, with respect to each Mortgage Loan, the indivisible, conditional, non-delegable contract right and obligation
to do any and all of the following: (a) service and administer such Mortgage Loan; (b) collect any payments or monies payable or
received for servicing such Mortgage Loan; (c) collect any late fees, assumption fees, penalties or similar payments with respect
to such Mortgage Loan; (d) enforce the provisions of all agreements or documents creating, defining or evidencing any such servicing
rights and all rights of the servicer thereunder, including, but not limited to, any clean-up calls and termination options; (e)
collect and apply any escrow payments or other similar payments with respect to such Mortgage Loan; (f) control and maintain all
accounts and other rights to payments related to any of the property described in the other clauses of this definition; (g) possess
and use any and all documents, files, records, servicing files, servicing documents, servicing records, data tapes, computer records,
or other information pertaining to such Mortgage Loan or pertaining to the past, present or prospective servicing of such Mortgage
Loan; and (h) enforce any and all rights, powers and privileges incident to any of the foregoing.

 

“Transaction”
means the collective transactions scheduled to be consummated or that are consummated (as the context may require) with respect
to a Primary Portfolio on a Transaction Settlement Date.

 

“Transaction Asset Purchase Agreement”
means, with respect to each Transaction, the agreement, trade confirmation and/or other documentation or evidence pursuant to which
the Seller acquires the Servicing Rights relating to the Primary Portfolio Mortgage Loans, as in effect from time to time.

 

“Transaction
Base Servicing Fee Rate” means, with respect to each Primary Portfolio, the rate per annum denominated as such and set
forth in the related Confirmation.

 

“Transaction
Excess Spread Percentage” means, with respect to each Primary Portfolio, the percentage denominated as such and set forth
in the related Confirmation.

 

“Transaction
Purchase Price” means, with respect to each Transaction, the product of (i) the aggregate outstanding principal balance
of the Primary Portfolio Mortgage Loans as of the Cut-off Date, (ii) the Transaction Purchase Price Percentage and (iii) the Transaction
Excess Spread Percentage.

 

“Transaction
Purchase Price Percentage” means, with respect to each Primary Portfolio, the percentage denominated as such and set
forth in the related Confirmation.

 

“Transaction
Remittance Date” means with respect to each Primary Portfolio, the date denominated as such and set forth in the Confirmation,
or, if no date is set forth in the Confirmation, the 10th day of each calendar month, or if such day is not a Business Day, the
prior Business Day, beginning in the month following the Transaction Settlement Date, or such other day as may be agreed upon by
the Seller and the Purchaser.

 

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“Transaction
Retained Spread Percentage” means, with respect to each Primary Portfolio, 100% minus the Transaction Excess Spread Percentage.

 

“Transaction
Settlement Date” means, with respect to each Primary Portfolio, the date denominated as such and set forth in the related
Confirmation.

 

Section 1.02       
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 generally accepted accounting
principles;

 

(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; and

 

(f)               
The term “include” or “including” shall mean without limitation by reason of enumeration.

 

ARTICLE
2

REPRESENTATIONS AND WARRANTIES

 

Section 2.01       
Representations, Warranties and Agreements of the Seller. The Seller hereby makes to the Purchaser and the Seller,
as of the date hereof and as of each Transaction Settlement Date and each Assignment Date, the representations and warranties set
forth on Exhibit C.

 

Section 2.02       
Representations, Warranties and Agreements of the Purchaser. The Purchaser hereby makes to the Seller and Seller,
as of the date hereof and as of each Transaction Settlement Date and each Assignment Date, the representations and warranties set
forth on Exhibit D.

 

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ARTICLE
3

PURCHASES

 

Section 3.01       
Purchases.

 

(a)        Transaction Agreement. The execution and delivery of each Confirmation between the Seller and the Purchaser shall
be an agreement between such parties to the effect that, with respect to the Primary Portfolio described therein, and subject to
the terms hereof and thereof, (i) the Seller shall sell, and the Purchaser shall purchase, on the Transaction Settlement Date all
of the Seller’s right, title and interest in and to the Primary Portfolio Excess Spread and all proceeds thereof, all in
exchange for the payment of the Transaction Purchase Price, and (ii) each party shall perform its duties under this Agreement as
supplemented and amended by such Confirmation.

 

(b)        Closing Conditions. The duties of the Seller and the Purchaser to consummate each Transaction shall be subject to
the satisfaction of various conditions as set forth below:

 

(i)        The duty of each party to consummate such Transaction shall be subject to the satisfaction of the following conditions:

 

		(A)	the Seller shall own the Servicing Rights with respect to the related Primary Portfolio;

		(B)	the representations and warranties made by the other party in this Agreement and each other Transaction
document to which such party is a party to be made on or prior to the Transaction Settlement Date shall be true and correct in
all material respects; and

		(C)	the other party shall have performed or caused the performance of each covenant or obligation required
to be performed by such party on or before the Transaction Settlement Date (including the delivery of documents required to be
delivered by such other party under subsection (c));

 

(ii)       The duty of the Seller to consummate such Transaction shall be further subject to the satisfaction of the additional condition
that no change in the Purchaser’s financial condition shall have occurred following the Confirmation Date that would be reasonably
likely to materially and adversely affect the Purchaser’s ability to consummate the Transaction on the Transaction Settlement
Date;

 

(iii)      The duty of the Purchaser to consummate such Transaction shall be further subject to the satisfaction of the following additional
conditions:

 

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		(A)	no change in the Seller’s financial or operating condition, the Seller’s good standing
with and authority from Fannie Mae, the Servicing Rights, the Primary Portfolio Mortgage Loans or the escrow accounts related to
the Primary Portfolio Mortgage Loans shall have occurred following the Confirmation Date that, individually or in the aggregate,
would be reasonably likely to materially and adversely one or more of (x) the Seller’s ability to consummate such Transaction
on the Transaction Settlement Date, (y) the performance of the Primary Portfolio Excess Spread, or (z) the practical or other ability
of an owner of the Servicing Rights to realize the benefits thereof;

		(B)	the Seller shall have obtained or caused to have been obtained all consents, approvals or other
requirements of third parties required for the consummation of the transactions contemplated by this Agreement, including all requisite
Fannie Mae approvals;

		(D)	the Seller shall have been appointed as the servicer or subservicer for the Primary Portfolio Mortgage
Loans; and

		(E)	the information set forth in the data tape delivered to Purchaser on the Transaction Settlement
Date shall be true and correct in all material respects as of the date specified.

 

(c)        Closing Documents. The closing documents for each Transaction shall consist of the documents set forth below, which
the Seller shall deliver or cause to be delivered to Purchaser on or before the Transaction Settlement Date:

 

(i)        an Assignment executed by the Seller in which the Seller assigns to the Purchaser all of the Seller’s right, title
and interest in, to and under the Primary Portfolio Excess Spread;

 

(ii)       a copy of the Transaction Asset Purchase Agreement;

 

(iii)      all consents, approvals or other requirements of third parties required for the consummation of the transactions contemplated
by this Agreement, including all requisite Fannie Mae approvals; and

 

(iv)      such officers’ certificates, opinions of counsel, instruments and documents as the Purchaser may reasonably request.

 

(d)        Closing. On the Transaction Settlement Date for each Primary Portfolio, the Purchaser shall pay the Transaction Purchase
Price to the Seller, the Seller shall convey the Primary Portfolio Excess Spread to the Purchaser and the Seller shall commence
servicing or subservicing the Primary Portfolio Mortgage Loans in accordance with the Servicing Agreement and the Fannie Mae Guide
if such servicing or subservicing has not already commenced. The Transaction Purchase Price shall be paid by wire transfer of immediately
available funds.

 

    	 	8	 

     

    

 

(e)        Additional Representations and Warranties. Upon the consummation of the transactions scheduled to occur on the Transaction
Settlement Date for each Primary Portfolio:

 

(i)        the Seller shall be deemed to have represented and warranted to the Purchaser (and such representations and warranties shall
survive the Transaction Settlement Date) that:

 

		(A)	with respect to each Primary Portfolio Mortgage Loan, the Seller has been duly and validly appointed
as the servicer or subservicer thereof under the Servicing Agreement and the Fannie Mae Guide and, for the purposes of such capacity,
such Servicing Agreement is in full force and effect;

		(B)	the Seller is not in breach of or in default of its duties under the Servicing Agreement or the
Fannie Mae Guide to the extent that such breach would adversely affect the interests of the Purchaser with respect to one or more
Primary Portfolio Mortgage Loans;

		(C)	no event has occurred that, with or without notice or the passage of time, would entitle any Person
to terminate the Seller as servicer or subservicer of any Primary Portfolio Mortgage Loan under the Servicing Agreement or the
Fannie Mae Guide, and the Seller has no notice or knowledge of the intention of any Person to terminate or cause the termination
of the Seller’s rights and duties as servicer or subservicer under the Servicing Agreement or the Fannie Mae Guide;

		(D)	the information set forth in the data tape delivered to Purchaser on the Transaction Settlement
Date is true and correct in all material respects as of the date specified; and

		(E)	the Seller is the sole owner of the Servicing Rights related to each Mortgage Loan in such Primary
Portfolio (subject to the terms of the Servicing Agreement and the Fannie Mae Guide and the rights of Fannie Mae in such Servicing
Rights as described therein), free and clear of any Lien, claim, encumbrance or ownership interest in favor or any Person other
than the interests of the Purchaser contemplated hereby;

 

(ii)       the Purchaser shall be deemed to have represented and warranted to the Seller (and such representations and warranties shall
survive the Transaction Settlement Date) that the Purchaser is a sophisticated investor and its decision to enter into such Transaction
is based upon the Purchaser’s independent experience, knowledge and due diligence and evaluation of such Transaction without
reliance on any oral or written information provided by Seller other than the representations and warranties made by Seller pursuant
to the terms hereof; and

 

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(iii)      the Purchaser further agrees and acknowledges as follows:

 

(A)            
the Seller is entitled to the Base Servicing Fee and the Seller and the Purchaser, as applicable, are entitled to the Primary
Portfolio Excess Spread only so long as the Seller maintains its status as an approved Fannie Mae seller/servicer;

 

(B)             
upon the transfer or termination of the Servicing Rights or the Seller’s loss of its status as an approved Fannie
Mae seller/servicer, the Purchaser’s rights to any Primary Portfolio Excess Spread (excluding any applicable Primary Portfolio
Termination Payments) shall terminate and be extinguished; and

 

(C)             
the Purchaser’s interests in the Primary Portfolio Excess Spread do not include or convey (u) any right to
all or any portion of the Servicing Rights, (v) the right to service the Mortgage Loans under the Servicing Agreement or the Fannie
Mae Guide, (w) the right to terminate the Seller as an approved Fannie Mae seller/servicer, (x) the right to terminate, in whole
or in part, the Servicing Agreement, (y) the right to transfer any of the Servicing Rights, or (z) the right to further transfer
the Primary Portfolio Excess Spread or the security interest therein without Fannie Mae’s prior written consent.

 

Section 3.02       
Intent of Parties.

 

The Seller and the
Purchaser intend that each Transaction constitute a valid sale of the Primary Portfolio Excess Spread for the related Primary Portfolio
by the Seller to the Purchaser, free and clear of any Lien. If the conveyance of the Primary Portfolio Excess Spread is characterized
by a court or governmental authority as security for a loan rather than an absolute transfer or sale, the Seller will be deemed
to have granted to Purchaser, and Seller hereby grants to Purchaser, a security interest in all of its right, title and interest
in, to and under the Primary Portfolio Excess Spread and all proceeds thereof as security for a loan in an amount equal to the
Transaction Purchase Price.

 

In connection with
each Transaction, the Seller hereby authorizes the filing of any financing statements or continuation statements, and amendments
to financing statements, in any jurisdictions and with any filing offices as the Purchaser may determine, in its sole discretion,
are necessary or advisable to perfect the sale of the assets conveyed and security interests granted to Purchaser and agrees to
execute financing statements in form reasonably acceptable to the Purchaser and the Seller at the request of the Purchaser in order
to reflect the Purchaser’s interests in the assets conveyed to or subjected to a security interest in favor of the Purchaser
pursuant to such Transaction.

 

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ARTICLE
4

 

DEPOSITS AND PAYMENTS

 

Section 4.01       
Deposits. With respect to each Primary Portfolio, the Seller shall deposit into an Eligible Account identified by
Purchaser any and all Primary Portfolio Collections attributable to Primary Portfolio Excess Spread, in each case as soon as practicable
but no later than the Transaction Remittance Date.

 

Section 4.02       
Payments. All payments to the Purchaser shall be made by wire or ACH transfer of immediately available funds to the
Eligible Account designated by the Purchaser.

 

ARTICLE
5

SERVICING AND OTHER MATTERS

 

Section 5.01       
Seller’s Duties With Respect to Servicing.

 

(a)        Effective on the Transaction Settlement Date for each Primary Portfolio, the Seller agrees for the benefit of the Purchaser
to service or cause to be subserviced the related Primary Portfolio Mortgage Loans at all times substantially in accordance with
the Servicing Agreement and the Fannie Mae Guide. In connection with the Primary Portfolio Mortgage Loans related to each Transaction,
the Seller shall not, without the express written consent of Purchaser (which consent may be withheld in its absolute discretion),
(a) terminate or amend any Servicing Rights, or (b) enter into any termination, modification, waiver or amendment of the Servicing
Agreement or the Fannie Mae Guide insofar such termination, modification, waiver or amendment would be reasonably likely to adversely
affect the interests of the Purchaser.

 

(b)        Under no circumstances shall the Purchaser be responsible for the servicing acts and omissions of the Seller or any other
servicer or any originator of the Mortgage Loans, or for any servicing related obligations or liabilities of any servicer under
the Servicing Agreement or the Fannie Mae Guide or any Person under the Mortgage Loan Documents, or for any other obligations or
liabilities of the Seller.

 

(c)        Upon the termination of the Seller as servicer or subservicer under the Servicing Agreement or the Fannie Mae Guide, the
Seller shall remain liable to the Purchaser and the applicable loan owner or master servicer for all liabilities and obligations
incurred by the Seller while the Seller was acting as the servicer or subservicer thereunder.

 

Section 5.02       
Base Servicing Fees. The Seller agrees that, notwithstanding the provisions of the Servicing Agreement and the Fannie
Mae Guide, as between the parties hereto, the Seller shall be entitled to servicing fees on the Primary Portfolio only to the extent
of the applicable Base Servicing Fee. Under no circumstances shall the Purchaser be liable to the Seller for the payment of any
Base Servicing Fee. If for any reason a sub-servicer or sub-sub-servicer is appointed with respect to any Primary Portfolio Mortgage
Loan, the servicing fees and expenses of such sub-servicer or sub-sub-servicer shall be paid by the Seller from its own funds without
right of reimbursement therefor, whether from Primary Portfolio Collections, Primary Portfolio Termination Payments, the Purchaser
or otherwise.

 

    	 	11	 

     

    

 

Section 5.03       
Reporting. In connection with each Transaction, the Seller shall deliver to the Purchaser monthly reports, and afford
the Purchaser access to information, at such times and in such form and substance as are set forth in the related Confirmation
or as may reasonably be agreed between the Seller and the Purchaser.

 

Section 5.04       
Certain Awards. If an award of damages is received by the Seller or the Purchaser as a result of a judgment, settlement
or arbitration (including payment pursuant to a guaranty of an obligor) pursuant to a breach by the seller under the Transaction
Asset Purchase Agreement for any Transaction, then (i) if such breach had an adverse effect on the value of the Total Servicing
Spread, then the Transaction Excess Spread Percentage of such award shall be distributed to the Purchaser or its designee promptly
and the remainder of such award shall be retained by the Seller and (ii) if such breach did not have an adverse effect on the value
of the Total Servicing Spread, the Seller shall be entitled to the entirety of such award.

 

ARTICLE
6

LIABILITIES OF THE SELLER

Section 6.01       
Liability of the Seller. The Seller shall be liable in accordance herewith only to the extent of the obligations
specifically and respectively imposed upon and undertaken by the Seller herein.

 

Section 6.02       
Merger or Consolidation of the Seller.

 

(a)        The Seller shall keep in full effect its existence, rights and franchises as an entity and maintain its qualification to
service mortgage loans for Fannie Mae and comply with the laws of each State in which any Mortgaged Property is located to the
extent necessary to protect the validity and enforceability of this Agreement, and to perform its duties under this Agreement.
The Seller shall keep in full effect its existence, rights and franchises as an entity.

 

(b)        Any Person into which the Seller may be merged, converted, or consolidated, or any Person resulting from any merger, conversion
or consolidation to which the Seller shall be a party, or any Person succeeding to the business of the Seller, shall be the successor
of the Seller hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding; provided, however, that such successor shall have expressly assumed the duties
of the Seller hereunder.

 

Section 6.03       
Indemnification.

 

The Seller shall
indemnify the Purchaser and its directors, officers, employees and agents and hold them harmless against any and all claims, losses,
damages, penalties, fines, forfeitures, reasonable legal fees and related costs, judgments, and any other costs, fees and expenses
that any of them may sustain by reason of the Seller’s (i) willful misfeasance, bad faith or negligence in the performance
of its duties under this Agreement or the Servicing Agreement or the Fannie Mae Guide, (ii) reckless disregard of its obligations
or duties under this Agreement or the Servicing Agreement or the Fannie Mae Guide, or (iii) breach of its representations, warranties
or covenants under this Agreement or the Servicing Agreement or the Fannie Mae Guide.

 

    	 	12	 

     

    

 

ARTICLE
7

MISCELLANEOUS

 

Section 7.01       
Notices. All notices, requests, demands and other communications which are required or permitted to be given under
this Agreement shall be in writing and shall be deemed to have been duly given upon the delivery or mailing thereof, as the case
may be, sent by registered or certified mail, return receipt requested:

 

(i)          if to the Seller:

 

PennyMac Corp.

Attn: General Counsel

3043 Townsgate Road

Westlake Village, CA 91361

 

(ii)         if to the Purchaser:

 

PennyMac Holdings, LLC

Attn: General Counsel

3043 Townsgate Road

Westlake Village, CA 91361

 

or such other address as may hereafter
be furnished to the other parties by like notice.

 

Section 7.02       
Amendment. Neither this Agreement, nor any terms hereof, may be amended, supplemented or modified except in an instrument
in writing executed by the parties hereto.

 

Section 7.03       
Entire Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect
to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions,
express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof
control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.

 

Section 7.04       
Binding Effect; Beneficiaries. The provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective permitted successors and assigns. No provision of this Agreement is intended or shall be
construed to give to any Person, other than the parties hereto, any legal or equitable right, remedy or claim under or in respect
of this Agreement or any provision contained herein.

 

Section 7.05       
Headings. The section and subsection headings in this Agreement are for convenience of reference only and shall not
be deemed to alter or affect the interpretation of any provisions hereof.

 

Section 7.06       
Further Assurances. The Seller agrees to execute and deliver such instruments and take such further actions as the
Purchaser may, from time to time, reasonably request in order to effectuate the purposes and to carry out the terms of this Agreement.

 

    	 	13	 

     

    

 

Section 7.07       
Governing Law. This Agreement shall be construed in accordance with the substantive laws of the State of New York
applicable to agreements made and to be performed entirely in such State, and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws. The parties hereto intend that the provisions of Section 5-1401 of
the New York General Obligations Law shall apply to this Agreement.

 

Section 7.08       
Relationship of Parties. Nothing herein contained shall be deemed or construed to create a partnership or joint venture
between the parties. Without limiting the generality of the preceding statement, the servicing duties and responsibilities of the
Seller shall be rendered by it as an independent contractor and not as an agent of the Purchaser. The Seller shall have full control
of all of its acts, doings, proceedings, relating to or requisite in connection with the discharge of its duties and responsibilities
under this Agreement.

 

Section 7.09       
Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement
shall be held invalid for any reason whatsoever, then such covenants, agreements, provisions or terms shall be deemed severable
from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability
of the other provisions of this Agreement.

 

Section 7.10       
No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of a party hereto,
any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

 

Section 7.11       
Exhibits. The exhibits to this Agreement are hereby incorporated and made a part hereof and form integral parts of
this Agreement.

 

Section 7.12       
Counterparts. This Agreement may be executed by the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

Section 7.13       
WAIVER OF TRIAL BY JURY.

 

EACH PARTY HERETO
ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

    	 	14	 

     

    

 

Section 7.14       
LIMITATION OF DAMAGES.

 

NOTWITHSTANDING ANYTHING
CONTAINED HEREIN TO THE CONTRARY, THE PARTIES AGREE THAT NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL
OR PUNITIVE DAMAGES WHATSOEVER, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), OR ANY OTHER LEGAL OR EQUITABLE
PRINCIPLE, PROVIDED, HOWEVER, THAT SUCH LIMITATION SHALL NOT BE APPLICABLE WITH RESPECT TO ANY THIRD PARTY CLAIM MADE AGAINST A
PARTY.

 

Section 7.15       
SUBMISSION TO JURISDICTION; WAIVERS.

 

EACH PARTY HERETO
HEREBY IRREVOCABLY (I) SUBMITS, FOR ITSELF IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, OR FOR RECOGNITION AND
ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE JURISDICTION OF ANY NEW YORK STATE AND FEDERAL COURTS SITTING IN THE BOROUGH
OF MANHATTAN IN NEW YORK CITY WITH RESPECT TO MATTERS ARISING OUT OF OR RELATING TO THIS AGREEMENT; (II) AGREES THAT ALL CLAIMS
WITH RESPECT TO ANY ACTION OR PROCEEDING REGARDING SUCH MATTERS MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL COURTS;
(III) WAIVES, TO THE FULLEST POSSIBLE EXTENT, WITH RESPECT TO SUCH COURTS, THE DEFENSE OF AN INCONVENIENT FORUM; AND (IV) AGREES
THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON
THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

 

Section 7.16       
Expense Reserve.

 

Notwithstanding anything
in Section 6.03, in the event that counsel or independent accountants for a Protected REIT determine that there exists a
material risk that any amounts due to the Seller or the Purchaser under Section 6.03 hereof would be treated as Nonqualifying
Income for such Protected REIT upon the payment of such amounts to the Seller or the Purchaser, the amount paid to the Seller or
the Purchaser, as the case may be, pursuant to this Agreement in any tax year shall not exceed the maximum amount that can be paid
to the Seller or the Purchaser in such year without causing such Protected REIT to fail to meet the REIT Requirements for such
year, determined as if the payment of such amount were Nonqualifying Income as determined by such counsel or independent accountants
to such Protected REIT. If the amount payable for any tax year under the preceding sentence is less than the amount which the Person
obligated to make payment under Section 6.03 would otherwise be obligated to pay to the Seller or the Purchaser, as the
case may be, pursuant to such Section 6.03 of this Agreement (the “Expense Amount”), then: (1) such obligated
Person shall place the Expense Amount into an escrow account (the “Expense Escrow Account”) using an escrow
agent and agreement reasonably acceptable to the Seller or the Purchaser, as the case may be, and shall not release any portion
thereof to the Seller or the Purchaser, as the case may be, and the Seller or the Purchaser, as the case may be, shall not be entitled
to any such amount, unless and until the Seller or the Purchaser, as the case may be, delivers to such obligated Person, at the
sole option of such Protected REIT, (i) an opinion (an “Expense Amount Tax Opinion”) of such Protected REIT’s
tax counsel to the effect that such amount, if and to the extent paid, would not constitute Nonqualifying Income, (ii) a letter
(an “Expense Amount Accountant’s Letter”) from such Protected REIT’s independent accountants indicating
the maximum amount that can be paid at that time to the Seller or the Purchaser, as the case may be, without causing such Protected
REIT to fail to meet the REIT Requirements for any relevant taxable year, or (iii) a private letter ruling issued by the IRS to
such Protected REIT indicating that the receipt of any Expense Amount hereunder will not cause such Protected REIT to fail to satisfy
the REIT Requirements (a “REIT Qualification Ruling” and, collectively with an Expense Amount Tax Opinion and
an Expense Amount Accountant’s Letter, a “Release Document”); and (2) pending the delivery of a Release
Document by the Seller or the Purchaser, as the case may be, to such obligated Person, the Seller or the Purchaser, as the case
may be, shall have the right, but not the obligation, to borrow the Expense Amount from the Escrow Account pursuant to a loan agreement
(an “Indemnity Loan Agreement”) reasonably acceptable to the Seller or the Purchaser, as the case may be, that
(i) requires such obligated Person to lend the Seller or the Purchaser, as the case may be, immediately available cash proceeds
in an amount equal to the Expense Amount (an “Indemnity Loan”), and (ii) provides for (A) a commercially reasonable
interest rate and commercially reasonable covenants, taking into account the credit standing and profile of the Seller or the Purchaser,
as the case may be, or any guarantor of the Seller or the Purchaser, as the case may be, including such Protected REIT, at the
time of such Indemnity Loan, and (B) a 15 year maturity with no periodic amortization.

 

    	 	15	 

     

    

 

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

 

PENNYMAC CORP.

(Seller)

By: /s/ Andrew S. Chang

Name: Andrew S. Chang

Title: Chief Business Development Officer

PennyMac Holdings, llc

(Purchaser)

By: /s/ Anne D. McCallion

Name: Anne D. McCallion

Title: Chief Financial Officer

 

    	 	16	 

     

    

EXHIBIT A

 

(Form of Confirmation)

 

 

CONFIRMATION

 

OF SPREAD ACQUISITION TRANSACTION
UNDER

MASTER SPREAD ACQUISITION AND MSR SERVICING AGREEMENT

 

	PARTIES:	PennyMac Corp. (Seller)
	 	 
	 	PennyMac Holdings,
LLC (Purchaser)
	 	 
	DATE:	_______________,
___
	 	 
	RE:	Spread
Acquisition – Pool No. [___]
	 	 
	___________________________________
	 	 

 

The purpose of this
letter agreement is to confirm the terms and conditions of the Transaction entered into between PennyMac Corp. and PennyMac Holdings,
LLC on the Transaction Settlement Date specified below. This letter agreement is a “Confirmation” as described in the
Master Spread Acquisition and MSR Servicing Agreement specified in paragraph 1 below.

 

The definitions and
provisions contained in the Master Agreement are incorporated into this Confirmation. In the event of any inconsistency between
the Master Agreement and this Confirmation, this Confirmation will govern. Capitalized terms used herein and not otherwise defined
have the meanings set forth in the Master Agreement.

 

1.              This Confirmation supplements, forms part of and is subject to the Master Spread Acquisition
and MSR Servicing Agreement dated as of [ ], 2015, between PennyMac Corp., as seller, and PennyMac Holdings, LLC, as purchaser,
as amended and supplemented from time to time (the “Master Agreement”). All provisions contained in the Master
Agreement govern this Confirmation except as expressly modified below.

 

    	 	17	 

     

    

 

2.              The terms of the Transaction to which this Confirmation relates are as follows:

 

	Primary Portfolio:	As set forth in Schedule I hereto.
	Transaction Settlement Date:	___________, 20____.
	Transaction Base Servicing Fee Rate:	[____] basis points (per annum)
	Transaction Remittance Date:	[__]th day of each month
	Transaction Purchase Price Percentage:	_______%
	Transaction Excess Spread Percentage:	_______%
	Transaction Asset Purchase Agreement:	 
	 	 
	 	 
	Cut-off Date	___________, 20____.
	Other:	In the event Seller, (i) whether voluntarily or involuntarily, transfers the Servicing Rights related to the Mortgage Loans in any Primary Portfolio and receives any termination fee or other compensation or proceeds in connection with such transfer (the “Transfer Proceeds”), or (ii) recovers under any purchase agreement governing the acquisition of the Servicing Rights any indemnity or reimbursement proceeds or other amounts relating to the purchase price of such Servicing Rights, including, without limitation, any amounts recovered with respect to early payoffs or early payment defaults (the “Recovery Proceeds” and, together with the Transfer Proceeds, the “Servicing Rights Proceeds”), Seller shall remit to Purchaser an amount equal to the product of (a) such Servicing Rights Proceeds, multiplied by (b) a fraction, the numerator of which is the Transaction Purchase Price allocable to the Primary Portfolio Excess Spread relating to such Servicing Rights and the denominator of which is the actual purchase price paid by the Seller for such Servicing Rights.

 

    	 	18	 

     

    

 

Accepted and confirmed
as of the date first written above:

 

	SELLER:	PennyMac Corp.
	 	 

         

         

         

        By:_____________________________
        Name:
        Title:

	 	 

         

         

         

	PURCHASER:	 
	 	
        PENNYMAC HOLDINGS, LLC

         

         

         

         

        By:_____________________________

               Name:

               Title:

 

    	 	19	 

     

    

 

SCHEDULE I

TO CONFIRMATION DATED __________, 20___

UNDER THE MASTER SPREAD ACQUISITION AND

MSR SERVICING AGREEMENT DATED AS OF [ ], 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	20	 

     

    

 

EXHIBIT B

 

(Form of Assignment)

 

PennyMac Corp. (the “Transferor”),
hereby assigns, conveys and otherwise transfers to PennyMac Holdings, LLC (the “Transferee”) all of the Transferor’s
right, title and interest in, to and under the Primary Portfolio Excess Spread for the residential mortgage loans set forth in
Annex A attached hereto. Capitalized terms used and not defined in this instrument have the meanings assigned to them in the Master
Spread Acquisition and MSR Servicing Agreement dated as of [ ], 2015, between PennyMac Corp. and PennyMac Holdings, LLC, as supplemented
and amended by the Confirmation dated _____, between such parties.

 

If the conveyance of such
Primary Portfolio Excess Spread is characterized by a court or governmental authority as security for a loan rather than an absolute
transfer or sale, the Transferor will be deemed to have granted to the Transferee, and the Transferor hereby grants to the Transferee,
a security interest in all of its right, title and interest in, to and under such Primary Portfolio Excess Spread and all proceeds
thereof as security for a loan in an amount equal to the value of such Primary Excess Spread.

 

PENNYMAC CORP.

(Transferor)

By:_____________________________

Name:___________________________

Title:____________________________

 

    	 	21	 

     

    

 

EXHIBIT C

 

(Representations and Warranties of the Seller)

 

(a)          Due Organization and Good Standing. The Seller is duly organized, validly existing and in good standing as a limited
liability company under the laws of the State of Delaware and has the power and authority to own its assets and to transact the
business in which it is currently engaged.

 

(b)          No Violation of Organizational Documents or Agreements. The execution and delivery of this Agreement by the Seller,
and the performance and compliance with the terms of this Agreement by the Seller, will not violate the Seller’s organizational
documents or constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under,
or result in the breach of, any material agreement or other instrument to which the Seller is a party or which is applicable to
it or any of its assets.

 

(c)          Full Power and Authority. The Seller has the full power and authority to enter into and consummate all transactions
contemplated by this Agreement, has duly authorized the execution, delivery and performance of this Agreement, and has duly executed
and delivered this Agreement.

 

(d)          Binding Obligation. This Agreement, assuming due authorization, execution and delivery by the other parties hereto,
constitutes a valid, legal and binding obligation of the Seller, enforceable against the Seller in accordance with the terms hereof,
subject to (A) applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’
rights generally, and (B) general principles of equity, regardless of whether such enforcement is considered in a proceeding in
equity or at law.

 

(e)          No Violation of Law, Regulation or Order. The Seller is not in violation of, and its execution and delivery of this
Agreement and its performance and compliance with the terms of this Agreement will not constitute a violation of, any law, any
order or decree of any court or arbiter, or, to the Seller’s knowledge, any order, regulation or demand of any federal, state
or local governmental or regulatory authority, which violation, in the Seller’s good faith and reasonable judgment, is likely
to affect materially and adversely either the ability of the Seller to perform its obligations under this Agreement or the financial
condition of the Seller.

 

(f)           No Material Litigation. No litigation is pending or, to the best of the Seller’s knowledge, threatened against
the Seller that, if determined adversely to the Seller, would prohibit the Seller from entering into this Agreement or that, in
the Seller’s good faith and reasonable judgment, is likely to materially and adversely affect either the ability of the Seller
to perform its obligations under this Agreement or the financial condition of the Seller.

 

(g)          No Consent Required. Any consent, approval, authorization or order of any court or governmental agency or body required
under federal or state law for the execution, delivery and performance by the Seller of or compliance by the Seller with this Agreement
or the consummation of the transactions contemplated by this Agreement has been obtained and is effective except where the lack
of consent, approval, authorization or order would not have a material adverse effect on the performance by the Seller under this
Agreement.

 

    	 	22	 

     

    

 

EXHIBIT D

 

(Representations and Warranties of the Purchaser)

 

(a)          Due Organization and Good Standing. The Purchaser is duly organized, validly existing and in good standing under
the laws of the state of its organization and has the power and authority to own its assets and to transact the business in which
it is currently engaged.

 

(b)          No Violation of Organizational Documents or Agreements. The execution and delivery of this Agreement by the Purchaser,
and the performance and compliance with the terms of this Agreement by the Purchaser, will not violate the Purchaser’s organizational
documents or constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under,
or result in the breach of, any material agreement or other instrument to which the Purchaser is a party or which is applicable
to it or any of its assets.

 

(c)          Full Power and Authority. The Purchaser has the full power and authority to enter into and consummate all transactions
contemplated by this Agreement, has duly authorized the execution, delivery and performance of this Agreement, and has duly executed
and delivered this Agreement.

 

(d)          Binding Obligation. This Agreement, assuming due authorization, execution and delivery by the other parties hereto,
constitutes a valid, legal and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with the terms
hereof, subject to (A) applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of
creditors’ rights generally, and (B) general principles of equity, regardless of whether such enforcement is considered in
a proceeding in equity or at law.

 

(e)          No Violation of Law, Regulation or Order. The Purchaser is not in violation of, and its execution and delivery of
this Agreement and its performance and compliance with the terms of this Agreement will not constitute a violation of, any law,
any order or decree of any court or arbiter, or, to the Purchaser’s knowledge, any order, regulation or demand of any federal,
state or local governmental or regulatory authority, which violation, in the Purchaser’s good faith and reasonable judgment,
is likely to affect materially and adversely either the ability of the Purchaser to perform its obligations under this Agreement
or the financial condition of the Purchaser.

 

(f)           No Material Litigation. No litigation is pending or, to the best of the Purchaser’s knowledge, threatened against
the Purchaser that, if determined adversely to the Purchaser, would prohibit the Purchaser from entering into this Agreement or
that, in the Purchaser’s good faith and reasonable judgment, is likely to materially and adversely affect either the ability
of the Purchaser to perform its obligations under this Agreement or the financial condition of the Purchaser.

 

(g)          No Consent Required. Any consent, approval, authorization or order of any court or governmental agency or body required
under federal or state law for the execution, delivery and performance by the Purchaser of or compliance by the Purchaser with
this Agreement or the consummation of the transactions contemplated by this Agreement has been obtained and is effective except
where the lack of consent, approval, authorization or order would not have a material adverse effect on the performance by the
Purchaser under this Agreement.

 

    	 	23Exhibit 10.2

 

AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT

dated as of January 22, 2016

 

 

among

 

 

Pennymac
Corp.,

as a Borrower,

 

PENNYMAC HOLDINGS, LLC,

as a Borrower,

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST,

as Guarantor,

 

 

and

 

 

BARCLAYS BANK PLC,

as Lender

 

    	 

     

    

 

Table of Contents

 

Page

 

	ARTICLE I DEFINITIONS AND ACCOUNTING MATTERS	1
	Section 1.01.   Definitions; Construction.	1
	Section 1.02.   Accounting Matters.	2
	ARTICLE II LOANS, BORROWING, PREPAYMENT	2
	Section 2.01.   Loans.	2
	Section 2.02.   Note.	2
	Section 2.03.   Borrower Electronic Files and Funding Requests.	3
	Section 2.04.   Borrowing Base Reports.	3
	Section 2.05.   Interest.	4
	Section 2.06.   Increased Capital Costs.	4
	Section 2.07.   Alternate Rate of Interest.	4
	Section 2.08.   Mandatory Repayment of Loans.	5
	Section 2.09.   Optional Prepayment.	5
	ARTICLE III PAYMENTS; COMPUTATIONS; TAXES; FEES	5
	Section 3.01.   Payments and Computations, Etc.	5
	Section 3.02.   Taxes.	6
	Section 3.03.   Fees and Expenses.	8
	ARTICLE IV SECURITY INTEREST	8
	Section 4.01.   Security Interest.	8
	Section 4.02.   Provisions Regarding Pledge of Fannie Mae Servicing Rights to Be Included In Financing Statements.	8
	Section 4.03.   Authorization of Financing Statements..	9
	Section 4.04.   Lender’s Appointment as Attorney In Fact.	9
	Section 4.05.   Release of Security Interest.	10
	ARTICLE V CONDITIONS PRECEDENT	11
	Section 5.01.   Conditions Precedent.	11
	Section 5.02.   Further Conditions Precedent.	11

 

    	i

     

    

 

	ARTICLE VI REPRESENTATIONS AND WARRANTIES	11
	Section 6.01.   Representations and Warranties of each Borrower.	11
	Section 6.02.   Representations Concerning the Collateral.	15
	ARTICLE VII COVENANTS	17
	Section 7.01.   Affirmative Covenants of each Borrower.	17
	Section 7.02.   Negative Covenants of the Borrowers.	22
	Section 7.03.   Notice of Certain Occurrences.	24
	ARTICLE VIII EVENTS OF DEFAULT	26
	Section 8.01.   Events of Default.	26
	Section 8.02.   Remedies.	29
	Section 8.03.   Collection Account; Application of Proceeds.	30
	ARTICLE IX ASSIGNMENT	31
	Section 9.01.   Restrictions on Assignments.	31
	Section 9.02.   Evidence of Assignment; Endorsement on Note.	31
	Section 9.03.   Rights of Assignee.	31
	Section 9.04.   Permitted Participants; Effect.	31
	Section 9.05.   Voting Rights of Participants.	32
	ARTICLE X INDEMNIFICATION	32
	Section 10.01.   Indemnities by the Borrowers.	32
	Section 10.02.   General Provisions.	33
	ARTICLE XI MISCELLANEOUS	33
	Section 11.01.   Amendments, Etc.	33
	Section 11.02.   Notices, Etc.	33
	Section 11.03.   No Waiver; Remedies.	33
	Section 11.04.   Binding Effect; Assignability.	33
	Section 11.05.   GOVERNING LAW; SUBMISSION TO JURISDICTION.	34
	Section 11.06.   Entire Agreement.	34
	Section 11.07.   Acknowledgement.	34
	Section 11.08.   Captions and Cross References.	35
	Section 11.09.   Execution in Counterparts.	35
	Section 11.10.   Confidentiality.	35
	Section 11.11.   Survival.	35
	Section 11.12.   Set-Off.	35
	Section 11.13.   Guaranty.	36
	Section 11.14.   Amendment and Restatement.	38
	Section 11.15.   Joint and Several Liability of the Borrowers.	38
	Section 11.16.   Acknowledgement and Consent to Bail-In of EEA Financial Institutions.	39

 

    	ii

     

    

 

	Schedules	 
	Schedule I	Definitions
	Schedule 5.01	Conditions Precedent to the Effectiveness of this Agreement
	Schedule 5.02	Conditions Precedent to each Loan
	Schedule 6.01(r) 	Borrower’s Existing Financing Facilities
	Schedule 6.02	Eligibility Criteria with respect to the Mortgage Loans
	Schedule 7.01(s)	Barclays Bank PLC Required Investor Reports
	Schedule 11.02	Notices
	Exhibits	 
	Exhibit 2.02(a)	Form of Note
	Exhibit 2.03	Form of Borrower Funding Request
	Exhibit 2.08(a)	Form of Repayment Notice
	Exhibit 2.08(b)	Form of Prepayment Notice
	Exhibit 7.01	Form of Compliance Certificate

 

    	iii

     

    

 

This AMENDED AND
RESTATED LOAN AND SECURITY AGREEMENT (as amended or supplemented from time to time, this “Agreement”) dated
as of January 22, 2016, is among Pennymac Corp. (“PMC”), PENNYMAC
HOLDINGS, LLC (“Holdings” and, together with PMC, each a “Borrower” and collectively, the
“Borrowers”), PENNYMAC MORTGAGE INVESTMENT TRUST (the “Guarantor”), and BARCLAYS BANK PLC
(the “Lender”).

 

BACKGROUND

 

The Borrowers wish
to obtain financing from time to time to provide funding for the origination or acquisition of certain Eligible Servicing Rights
(as defined herein), which Eligible Servicing Rights shall secure Loans (as defined herein) to be made by the Lender hereunder.

 

The Lender has agreed,
subject to the terms and conditions of this Agreement, to provide such financing to the Borrowers.

 

PMC, the Guarantor
and the Lender previously entered into a Loan and Security Agreement, dated as of September 14, 2015 (the “Existing LSA”).

 

The parties hereto
have requested that the Existing LSA be amended and restated, in its entirety, to add Holdings as a Borrower party, on the terms
and subject to the conditions set forth herein.

 

Accordingly, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

 

ARTICLE
I

DEFINITIONS AND ACCOUNTING MATTERS

 

Section 1.01.     
Definitions; Construction.

 

(a)          Capitalized terms used herein and not otherwise defined herein shall have the meanings specified in Schedule I.

 

(b)          All terms used in Article 9 of the UCC, and not specifically defined herein, are used herein as defined in such Article
9.

 

(c)          Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified
date, the word “from” means “from and including” and the words “to” and “until”
each means “to but excluding”.

 

(d)          The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.

 

(e)          Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.

 

    	 	1	 

     

    

 

(f)           The words “include”, “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as
the word “shall”.

 

(g)          Unless the context requires otherwise (i) any definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented
or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any
reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof, (iv) all references herein to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, and (v) the words
“asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

Section 1.02.     
Accounting Matters. Except as otherwise expressly provided herein, all accounting terms used herein shall be interpreted,
and all financial statements and certificates and reports as to financial matters required to be delivered to the Lender hereunder
shall be prepared in accordance with GAAP.

 

ARTICLE
II

LOANS, BORROWING, PREPAYMENT

 

Section 2.01.     
Loans. On the terms and subject to the conditions set forth in this Agreement, the Lender shall make loans in an
aggregate amount not to exceed the Available Facility Amount (each such loan, a “Loan”) to the Borrowers from
time to time. The Lender shall distribute the proceeds of such Loan to the related Borrower no later than 1:00 p.m. (New York
City time) on the related Funding Date in accordance with Section 2.03.

 

Section 2.02.     
Note.

 

(a)          The Loans made by the Lender shall be evidenced by a single promissory note of the Borrowers substantially in the form of
Exhibit 2.02(a) hereto (the “Note”), dated the date hereof, payable to the Lender in a principal amount not
to exceed an amount equal to the Available Facility Amount as originally in effect and otherwise duly completed.

 

(b)          The date, amount, and interest rate of each Loan made by the Lender to the Borrowers, and each payment made on account of
the principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of the Note, noted by the Lender
on the grid attached to the Note or any continuation thereof, provided, that failure of the Lender to make any such recordation
or notation shall not affect the obligations of the Borrowers to make payments when due of any amount hereunder or under the Note
in respect of the Loans.

 

    	 	2	 

     

    

 

(c)          Notwithstanding the pledge of Collateral, the Borrowers hereby acknowledge, admit and agree that the Borrowers’ Obligations
under the Note are joint and several recourse obligations of the Borrowers.

 

Section 2.03.     
Borrower Electronic Files and Funding Requests.

 

(a)          On any Funding Notice Date prior to the Wind Down Date, the Borrowers may request the Lender to make a Loan on the Funding
Date specified in the related Borrower Funding Request by delivering to the Lender an irrevocable Borrower Funding Request no later
than 3:00 p.m. (New York City time) on such Funding Notice Date. The amount of any Loan requested pursuant to a Borrower Funding
Request shall be not greater than the related Available Loan Amount and, with respect to the Initial Borrower Funding request,
shall not be less than $10 million. The Borrowers may request a Funding Date on any Business Day; provided, however, a Funding
Date that involves the addition of new Collateral may not fall on any of the five (5) last Business Days in any calendar month
unless otherwise agreed by Lender. Any Borrower Funding Request that relates to the addition of new Collateral shall include an
Electronic File describing all Eligible Servicing Rights that constitute the Collateral hereunder.

 

(b)          Regardless whether the Borrowers intend to deliver a Borrower Funding Request during any calendar month, the Borrowers shall
deliver to the Lender on the fifteenth (15th) calendar day of each month (or, if such day is not a Business Day, the
following Business Day) (any such day, a “Collateral Reporting Date”), an Electronic File with respect to all
Eligible Servicing Rights that constitute the Collateral hereunder, which shall include all updates to the Collateral since the
date of the preceding Electronic File.

 

(c)          In Lender’s determination of Collateral Value for any of the Servicing Rights hereunder, it shall apply the MSR Value
of the Servicing Rights in a related Borrowing Base Report. Any excess of the amount funded on such Loan over the Collateral Value
shall result in a Borrowing Base Deficiency as set forth in Section 2.08(b). Notwithstanding anything to the contrary
contained in this Section 2.03, the Lender shall have the right to determine MSR Value at any time in its sole good
faith discretion.

 

(d)          By delivering a Borrower Funding Request, the Borrowers represent and warrant to the Lender that, after taking into account
the amount of the requested Loan, all conditions precedent to such Loan specified in Section 5.02 have been satisfied.

 

Section 2.04.     
Borrowing Base Reports. With respect to each Funding Date, the Lender shall determine the MSR Value of the Eligible
Servicing Rights to be pledged as security for a Loan on such Funding Date and shall communicate such determination by providing
the Borrowers with a Borrowing Base Report prior to such Funding Date. For purposes of preparing each Borrowing Base Report, the
Lender shall calculate the Collateral Value of the Eligible Servicing Rights described in the Relevant Electronic File.

 

    	 	3	 

     

    

 

Section 2.05.     
Interest. Interest shall accrue on each Loan for each day during a related Interest Period at a per annum rate equal
to the product of (x) the outstanding principal balance of such Loan on such day, multiplied by (y) the sum of (i) the
applicable LIBOR Rate for such day and (ii) the Applicable Margin. Interest shall be payable on each Monthly Settlement Date
in arrears with respect to each Loan through the final day of each Interest Period (regardless whether such day is a Business Day),
such amount to be payable on each Monthly Settlement Date. The Lender shall determine the LIBOR Rate for each Loan, which may be
reset on a daily basis, as set forth in the definition of “LIBOR Rate” and provide notice of such determination to
the Borrowers. The Lender shall also calculate the amount of interest or other amounts due to be paid by the Borrowers from time
to time hereunder (including in connection with any prepayment or repayment of Loans permitted hereunder) and shall provide a written
statement thereof to the Borrowers at least two Business Days prior to the due date of such payments (or the relevant repayment
or prepayment after having received a notice thereof); provided, that failure to provide such statements on a timely basis
shall not relieve the Borrowers of the obligation to pay any interest and principal due on the applicable payment date (based upon
its good faith calculation of the amount due, such amount to be promptly reconciled after receipt of a subsequent statement from
the Lender) and other such amounts hereunder promptly upon receipt of such statement.

 

Section 2.06.     
Increased Capital Costs. If Lender determines in its sole discretion that any Change in Law or any change in accounting
rules regarding capital requirements has the effect of reducing the rate of return on Lender’s capital under this Agreement
as a consequence of such Change in Law or change in accounting rules, then from time to time Borrowers will compensate Lender for
such reduced rate of return suffered as a consequence of such Change in Law or change in accounting rules on terms similar to those
imposed by Lender. Further, if due to the introduction of, any change in, or the compliance by Lender 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 Lender as a consequence
of the Loans or other advances of funds made by Lender pursuant to this Agreement or any of the Facility Documents relating to
fundings or commitments under this Agreement, then Borrowers shall, from time to time and upon demand by Lender, compensate Lender
for such increased costs, and such amounts shall be deemed a part of the Obligations hereunder. Lender shall provide Borrowers
with notice as to any such Change in Law, change in accounting rules or change in compliance promptly following Lender’s
receipt of actual knowledge thereof.

 

Section 2.07.     
Alternate Rate of Interest. If on any Business Day, the Lender determines (which determination shall be conclusive
absent manifest error) (a) that adequate and reasonable means do not exist for ascertaining the LIBOR Rate; or (b) that
the LIBOR Rate will not adequately and fairly reflect the cost to the Lender of making or maintaining its Loan; or (c) that
it has become unlawful for it to honor its obligation to make or maintain Loans hereunder using the LIBOR Rate, or maintaining
its Loans (or its Loan) included in any advance, then the Lender shall give notice thereof to the Borrowers by telephone, facsimile,
or other electronic means as promptly as practicable thereafter and, until the Lender notifies the Borrowers that the circumstances
giving rise to such notice no longer exist, any Borrower Funding Request that requests that Lender
make a new Loan, subject to the timely approval of the Borrowers after receipt of notice of such revised rate, at a rate
per annum that the Lender determines in its reasonable discretion adequately reflects the cost to the Lender of making or maintaining
the Loan.

 

    	 	4	 

     

    

 

Section 2.08.     
Mandatory Repayment of Loans.

 

(a)          On each Loan Repayment Date (or, if such day is not a Business Day, the following Business Day) from and after the Wind
Down Date, and continuing until the Outstanding Aggregate Loan Amount shall be reduced to zero, the Borrowers shall repay an amount
equal to at least one-twelfth (1/12) of the Outstanding Aggregate Loan Amount as of the Wind Down Date with respect to all Loans
and all other amounts due under this Agreement. Loans may be prepaid in accordance with the terms of Section 2.09 hereof
and, to the extent prepaid, provided the Wind Down Date shall not have occurred, may be re-borrowed hereunder in accordance with
the terms hereof (including satisfaction of all conditions precedent contained in Section 5.02). Notwithstanding the
foregoing, all amounts owing under the Facility shall be immediately due and payable on the Termination Date.

 

(b)          If, on any Business Day (a “Borrowing Base Shortfall Day”), the Lender provides written notice to the
Borrowers that the Lender has determined in its sole reasonable discretion based on the Borrowing Base Report most recently delivered
by the Lender pursuant to Section 2.04 that the Outstanding Aggregate Loan Amount on such day exceeds the lesser of
(i) the Borrowing Base and (ii) the Available Facility Amount on such day (such circumstance, a “Borrowing Base
Deficiency”), the Borrowers (i) on the same day if the Lender notifies Borrowers by 11:00 a.m. (New York time)
of such Borrowing Base Deficiency, or (ii) if the notice is received later than 11:00 a.m. (New York time), then within
one (1) Business Day after the Borrowing Base Shortfall Day, shall repay outstanding Loans (including accrued Interest thereon),
in an amount equal to the amount of the Borrowing Base Deficiency specified in the notice provided to the Borrowers by the Lender
(such requirement a “Margin Call”).

 

Section 2.09.     
Optional Prepayment. The Borrowers may, at their option, prepay any Loan advanced hereunder in full or in part on
any date, but not more than once per month; provided, however, that the Borrowers shall be permitted at any time, without limitation,
to prepay any Loan in connection with a Margin Call (any such date, an “Optional Prepayment Date”). Any such
prepayment received by the Lender by 3:00 p.m. (New York City time) on such Optional Prepayment Date shall be applied by the
Lender on such Business Day. Any such prepayment received by the Lender after 3:00 p.m. (New York City time) on such Optional
Prepayment Date shall be applied by the Lender on the following Business Day. For the avoidance of doubt, any optional prepayment
in full shall not result in the termination of this Agreement unless such termination is declared in writing by the Borrowers,
acting in their discretion.

 

ARTICLE
III

PAYMENTS; COMPUTATIONS; TAXES; FEES

 

Section 3.01.     
Payments and Computations, Etc.

 

(a)          Unless otherwise expressly stated herein, all amounts to be paid or deposited hereunder shall be paid or deposited in accordance
with the terms hereof no later than 4:00 p.m. (New York City time) on the day when due in lawful money of the United States
of America in same day funds.

 

    	 	5	 

     

    

 

(b)          The Borrowers shall, to the extent permitted by law, pay interest on all amounts (including principal, interest and fees)
due but not paid on the date such payment is due hereunder as provided herein, for the period from, and including, such due date
until, but excluding, the date paid, at the applicable Default Rate, payable on demand; provided, however that such
interest rate shall not at any time exceed the maximum rate permitted by applicable law.

 

(c)          All computations of interest and fees hereunder shall be made on the basis of a year of 360 days for the actual number of
days elapsed (including the first day but excluding the last day) occurring in the period for which payable.

 

(d)          The Borrowers agree that the principal of and interest on the Loans shall be recourse obligations of the Borrowers.

 

(e)          All payments made by the Borrowers under this Agreement shall be made without set-off or counterclaim.

 

Section 3.02.     
Taxes.

 

(a)          All payments made by Borrowers under this Agreement shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities (including
penalties, interest and additions to tax) with respect thereto imposed by any Governmental Authority therewith or thereon, excluding
income taxes, branch profits taxes, franchise taxes or any other tax imposed on net income by the United States, a state or a foreign
jurisdiction under the laws of which the Lender is organized or of its applicable lending office, or a state or foreign jurisdiction
with respect to which Lender has a present or former connection (other than any connection arising from executing, delivering,
being party to, engaging in any transaction pursuant to, performing its obligations under or enforcing any Facility Document),
or any political subdivision thereof (collectively, such non-excluded taxes are hereinafter called “Taxes”),
all of which shall be paid by Borrowers for their own account not later than the date when due. If a Borrower is required by law
or regulation to deduct or withhold any Taxes from or in respect of any amount payable hereunder, it shall: (a) make such
deduction or withholding, (b) pay the amount so deducted or withheld to the appropriate Governmental Authority not later than
the date when due, (c) deliver to the Lender, promptly, original tax receipts and other evidence satisfactory to Lender of
the payment when due of the full amount of such Taxes; and (d) except as otherwise expressly provided in Section 3(d)
below, pay to the Lender such additional amounts (including all taxes imposed by any Governmental Authority on such additional
amounts) as may be necessary so that the Lender receives, free and clear of all Taxes, a net amount equal to the amount it would
have received under this Agreement, as if no such deduction or withholding had been made.

 

(b)          In addition, each Borrower agrees to pay to the relevant Governmental Authority in accordance with applicable law any current
or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies (including, without limitation,
mortgage recording taxes, transfer taxes and similar fees) imposed by any taxing authority that arise from any payment made hereunder
or from the execution, delivery or registration of, or otherwise with respect to, this Agreement (“Other Taxes”).

 

    	 	6	 

     

    

 

(c)          Each Borrower agrees to indemnify Lender for the full amount of Taxes (including additional amounts with respect thereto)
and Other Taxes, and the full amount of taxes of any kind imposed by any jurisdiction on amounts payable under this Section 3,
and any liability (including penalties, interest and expenses arising thereon or with respect thereto) arising therefrom or with
respect thereto, provided that Lender shall have provided Borrowers with evidence, reasonably satisfactory to Borrower, of payment
of Taxes or Other Taxes, as the case may be.

 

(d)          Any Lender that either (i) is not incorporated under the laws of the United States, any State thereof, or the District
of Columbia or (ii) whose name does not include “Incorporated,” “inc.,” “Corporation,”
“Corp.,” “P.C.,” “insurance company,” or “assurance company” (a “Foreign
Purchaser”) shall provide Borrowers with original properly completed and duly executed United States Internal Revenue
Service (“IRS”) Forms W-8BEN or W-8ECI or any successor form prescribed by the IRS, certifying that such Person
is either (1) entitled to benefits under an income tax treaty to which the United States is a party which eliminates or (2) otherwise
fully exempt from (2) United States withholding tax under Sections 1441 through 1442 of the Code on payments to it or certifying
that the income receivable pursuant to this Agreement is effectively connected with the conduct of a trade or business in the United
States in either case, on or prior to the date upon which each such Foreign Lender becomes a Lender. Each Foreign Lender will resubmit
the appropriate form eliminating withholding tax on payments to it on the earliest of (A) the third anniversary of the prior
submission, or (B) on or before the expiration of thirty (30) days after there is a “change in circumstances”
with respect to such Person as defined in Treas. Reg. Section 1.1441-1(e)(4)(ii)(D). For any period with respect to which
the Foreign Lender has failed to provide Borrowers with the appropriate form or other relevant document (x) as expressly required
under this Section 3(d) (unless such failure is due to a change in treaty, law, or regulation occurring subsequent to the
date on which a form originally was required to be provided under the first sentence of this Section 3(d)) or (y) otherwise
as required to establish exemption from United States withholding under Sections 1471 through 1474 of the Code, such Person shall
not be entitled to “gross-up” of Taxes under Section 3(d) or indemnification under Section 3(c) with respect
to Taxes imposed by the United States which are imposed because of such failure; provided, however that should a Foreign Lender,
which is otherwise exempt from a withholding tax, become subject to Taxes because of its failure to deliver a form required hereunder,
Borrowers shall take such steps as such Foreign Lender shall reasonably request to assist such Foreign Lender to recover such Taxes.

 

(e)          Without prejudice to the survival or any other agreement of Borrowers hereunder, the agreements and obligations of Borrowers
contained in this Section 3 shall survive the termination of this Agreement. Nothing contained in this Section 3
shall require Lender to make available any of their tax returns or other information that it deems to be confidential or proprietary.

 

(f)           The Lender shall (A) promptly notify the Borrowers of any change in circumstances which would modify or render invalid
any claimed exemption or reduction, and (B) cooperate, in its reasonable discretion and at Borrowers’ expense, with
Borrowers to mitigate any requirement of Applicable Law of any jurisdiction in which the Borrowers may be required to withhold
or deduct any taxes from amounts payable to Lender hereunder.

 

    	 	7	 

     

    

 

Section 3.03.     
Fees and Expenses. The Borrowers agree to pay to the Lender all reasonable and documented out-of-pocket costs and
expenses (including reasonable and documented fees and expenses of Lender’s counsel not to exceed $25,000.00) incurred in
connection with the execution of this Agreement and the Facility Documents; provided that such limitation on fees and expenses
of Lender’s counsel shall not apply to (i) any amendment or renewal of, or waiver of any provision of, this Agreement or
any other Facility Document or (ii) any document executed after the Closing Date in connection with the transactions contemplated
by this Agreement.

 

ARTICLE
IV

SECURITY INTEREST

 

Section 4.01.     
Security Interest. As security for the prompt payment and performance of all of its Obligations, each Borrower hereby
assigns and pledges to the Lender, and grants a security interest, subject to the interests of the Agencies as set forth in Section 4.02
and in the related Acknowledgement Agreement, to the Lender, all of such Borrower’s right, title and interest, in, to, and
under, whether now owned or hereafter acquired, in all of the following, whether now or hereafter existing and wherever located:
(i) the Pledged Servicing Rights whether or not yet accrued, earned due or payable as well as all other present and future
rights and interests of such Borrower in such Pledged Servicing Rights, (ii) the Servicing Contracts and all rights and claims
thereunder, (iii) the Collection Account, (iv) each Acknowledgement Agreement and all rights and claims thereunder, (v) all
books and records, including computer disks and other records or physical or virtual data or information, related to the foregoing
(but excluding computer programs) and (vi) all monies due or to become due with respect to the foregoing and all proceeds
of the foregoing, but with respect to items (i) - (vi) above specifically excluding the Excluded Collateral (collectively,
the “Collateral”); provided that Borrowers do not assign or pledge to the Lender, or grant a security interest
in any of Borrowers’ right, title and interest, in, to or under Borrowers’ rights to reimbursement for any Advances
related to mortgage servicing rights subject to any Servicing Contract.

 

Section 4.02.     
Provisions Regarding Pledge of Fannie Mae Servicing Rights to Be Included In Financing Statements. Notwithstanding
anything to the contrary in the Agreement or any of the other Facility Documents, the security interest of the Lender created hereby
with respect to the Fannie Mae Servicing Rights is subject to the following provisions to be included in each financing statement
filed in respect hereof (or any variation required by Fannie Mae):

 

“The security
interests described in this financing statement are subject and subordinate to all rights, powers, and prerogatives of Fannie Mae
under and in connection with (i) the terms and conditions of that certain Amended and Restated Acknowledgment Agreement dated as
of __________, 2016 (the “Acknowledgment Agreement”), with respect to the Security Interest and the Sold Amounts Security
Interest, by and among Fannie Mae, PennyMac Corp., PennyMac Holdings, LLC and Barclays Bank PLC, and (ii) the Mortgage Selling
and Servicing Contract, the Fannie Mae Selling Guide, the Fannie Mae Servicing Guide and any supplemental servicing instructions
or directives provided by Fannie Mae, all applicable master agreements (including applicable MBS pool purchase contracts and variances),
recourse agreements, repurchase agreements, indemnification agreements, loss-sharing agreements, and any other agreements between
Fannie Mae and the Debtor, and all as amended, modified, restated or supplemented heretofore and hereafter, from time to time (collectively,
the “Fannie Mae Lender Contract”), which rights, powers, and prerogatives include, without limitation, the right of
Fannie Mae to terminate the Fannie Mae Lender Contract with or without cause and the right to sell, or have transferred, the Servicing
Rights as therein provided.”

 

    	 	8	 

     

    

 

Section 4.03.     
Authorization of Financing Statements. The Borrowers hereby authorize the Lender to file any financing or continuation
statements required to perfect, protect, or more fully evidence the Lender’s security interest in the Collateral granted
hereunder. The Lender will notify the Borrowers of any such filing (but the failure to deliver such notice shall not prejudice
any rights of the Lender under this Section 4.03).

 

Section 4.04.     
Lender’s Appointment as Attorney In Fact.

 

(a)          Each Borrower hereby irrevocably constitutes and appoints the Lender and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such
Borrower and in the name of such Borrower or in its own name, from time to time in the Lender’s discretion, if an Event of
Default shall have occurred and be continuing, for the limited purpose of carrying out the terms of this Agreement (or any Servicing
Contracts), to take any action on behalf of such Borrower pursuant to the Acknowledgement Agreements 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 the purposes of this
Agreement (or any Servicing Contracts) to the extent such actions are permitted to be taken by the Lender under the Acknowledgement
Agreements, and, without limiting the generality of the foregoing, each Borrower hereby gives the Lender the power and right, on
behalf of such Borrower, without assent by, but with notice to, the Borrowers, if an Event of Default shall have occurred and be
continuing, to do the following (subject to limitations contained in each Acknowledgement Agreement):

 

(i)         in the name of a Borrower or 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 under any mortgage insurance or with respect to any other
Collateral 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 the Lender for the purpose of collecting any and all such moneys due under any such mortgage insurance or with respect to any
other Collateral whenever payable;

 

(ii)        (A) to direct any party liable for any payment under any Collateral to make payment of any and all moneys due or to become
due thereunder directly to the Lender or as the Lender shall direct; (B) to ask or demand for, collect, receive payment of
and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of
any Collateral; (C) to sign and endorse any invoices, assignments, verifications, notices and other documents in connection
with any of the Collateral; (D) to commence and prosecute any suits, actions or proceedings at law or in equity in any court
of competent jurisdiction to collect the Collateral or any part thereof and to enforce any other right in respect of any Collateral;
(E) in connection with the above, to give such discharges or releases as the Lender may deem appropriate; and (F) generally,
to sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely
as though the Lender were the absolute owner thereof for all purposes, and to do, at the Lender’s option and the Borrowers’
expense, at any time, or from time to time, all acts and things which the Lender deems necessary to protect, preserve or realize
upon the Collateral and the Lender’s Liens thereon and to effect the intent of this Agreement, all as fully and effectively
as the Borrowers might do;

 

    	 	9	 

     

    

 

(iii)       perform or cause to be performed, the Borrowers’ obligations under any Servicing Contract to the extent permitted
by the related Acknowledgement Agreement.

 

Each Borrower hereby ratifies all that
said attorneys shall lawfully do or cause to be done by virtue hereof. The power of attorney is a power coupled with an interest
and shall be irrevocable but shall terminate upon release of the Lender’s security interest as provided in Section 4.05.

 

(b)          Each Borrower also authorizes the Lender, at any time and from time to time, to execute, in connection with the sale provided
for in Section 8.02(c) hereof, any endorsements, assignments or other instruments of conveyance or transfer with respect
to the Collateral; provided that the exercise of such powers are in accordance with the Acknowledgement Agreements.

 

(c)          The powers conferred on the Lender are solely to protect the Lender’s interest in the Collateral and shall not impose
any duty upon the Lender to exercise any such powers. The Lender shall be accountable only for amounts that it actually receives
as a result of the exercise of such powers, and neither the Lender nor any of its officers, directors, or employees shall be responsible
to a Borrower for any act or failure to act hereunder, except for its own gross negligence or willful misconduct; provided
that the Lender shall exercise such powers only in accordance with the Acknowledgement Agreements.

 

Section 4.05.     
Release of Security Interest. Upon termination of this Agreement and repayment to the Lender of all Obligations and
the performance of all obligations under the Facility Documents, the Lender shall release its security interest in any remaining
Collateral; provided that if any payment, or any part thereof, of any of the Obligations is rescinded or must otherwise
be restored or returned by the Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of a Borrower,
or upon or as a result of the appointment of a receiver, intervener or conservator of, or a trustee or similar officer for a Borrower
or any substantial part of its Property, or otherwise, this Agreement, all rights hereunder and the Liens created hereby shall
continue to be effective, or be reinstated, until such payments have been made.

 

    	 	10	 

     

    

 

ARTICLE
V

CONDITIONS PRECEDENT

 

Section 5.01.     
Conditions Precedent. The effectiveness of this Agreement is subject to the condition precedent that the Lender shall
have received each of the items set forth in Schedule 5.01 (unless otherwise indicated) dated such date, and in such form
and substance, as is satisfactory to the Lender.

 

Section 5.02.     
Further Conditions Precedent. The funding of each Loan hereunder, shall in all events be subject to satisfaction
of the further conditions precedent set forth in Schedule 5.02 as of the making of such Loan.

 

ARTICLE
VI

REPRESENTATIONS AND WARRANTIES

 

Section 6.01.     
Representations and Warranties of each Borrower. Each Borrower represents and warrants to the Lender that throughout
the term of this Agreement (except to the extent any such representation or warranty is stated to relate solely to an earlier date,
in which case, such representation or warranty shall have been true or correct as of such date):

 

(a)          Due Organization, Qualification, Power, Authority and Due Authorization.
PMC is a corporation, Holdings is a limited liability company and the Guarantor is a real estate investment trust. Each Borrower
Party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation and it has qualified
to do business in each jurisdiction in which it is legally required to do so. Each Borrower Party has the power and authority under
its certificate of incorporation, certificate of formation or declaration of trust, bylaws and applicable law to enter into this
Agreement and the Facility Documents and to perform all acts contemplated hereby and thereby or in connection herewith and therewith;
this Agreement and the Facility Documents and the transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate or limited liability company action and do not require any additional approvals or consents or other action
by, or any notice to or filing with, any Person other than any that have heretofore been obtained, given or made.

 

(b)          Valid and Binding Obligations. This Agreement, the Facility
Documents and every other document to be executed by a Borrower Party in connection with this Agreement is and will be legal, valid,
binding and subsisting obligations of such Borrower Party, enforceable in accordance with their respective terms, except that (A) the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’
rights generally and (B) the remedy of specific performance and injunctive and other forms of equitable relief may be subject
to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

 

    	 	11	 

     

    

 

(c)          Noncontravention. The consummation of the transactions contemplated
by this Agreement and Facility Documents are in the ordinary course of business of each Borrower Party and will not conflict with,
result in the breach of or violate any provision of the charter or by-laws (or equivalent documents) of the related Borrower Party
or result in the breach of any provision of, or conflict with or constitute a default under or result in the acceleration of any
obligation under, any agreement, indenture, loan or credit agreement or other instrument to which a Borrower Party, the Collateral
or any of a Borrower Party’s Property is or may be subject to, or result in the violation of any law, rule, regulation, order,
judgment or decree to which a Borrower Party, the Collateral or a Borrower Party’s Property is subject.

 

(d)          Legal Proceeding. There is no action, suit, proceeding,
inquiry or investigation, at law or in equity, or before or by any court, public board or body pending or, to a Borrower Party’s
knowledge, threatened against or affecting any Borrower Party (or, to a Borrower’s knowledge, any basis therefor) wherein
an unfavorable decision, ruling or finding would adversely affect the validity of the Collateral or the validity or enforceability
of this Agreement, the Facility Documents or any agreement or instrument
to which a Borrower Party is a party and which is used or contemplated for use in the consummation of the transactions contemplated
hereby, would adversely affect the proceedings of a Borrower Party in connection herewith, or would or could materially and adversely
affect any Borrower Party’s ability to carry out its obligations hereunder. 

 

(e)          Government and Agency Approvals. No authorization, consent, approval, or other action by, and no notice to or filing
with, any court, governmental authority or regulatory body or other Person domestic or foreign, including Fannie Mae or HUD, is
required for any Borrower Party’s due execution, delivery or performance of any Facility Document to which it is a party
except for (i) consents that have been obtained in connection with transactions contemplated by the Facility Documents, (ii) filings
to perfect the security interest created by this Agreement, and (iii) authorizations, consents, approvals, filings, notices,
or other actions the failure to make could not reasonably be expected, individually or in the aggregate, to have a Material Adverse
Effect.

 

(f)           Solvency. Each Borrower Party is solvent and will not be
rendered insolvent by any Loan hereunder and, after giving effect
to each such Loan, each Borrower Party will not be left with an unreasonably small amount of capital with which to engage in its
business. Each Borrower Party does not intend to incur, nor believes that it has incurred, debts beyond its ability to pay such
debts as they mature. No Borrower Party is 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 any Borrower Property
or any of its assets.

 

(g)          Fraudulent Conveyance. The amount of consideration being received by the Borrowers after giving effect to each Loan
by the Lender constitutes reasonably equivalent value and fair consideration for such Loan. No Borrower is pledging any Collateral
with any intent to hinder, delay or defraud any of its creditors. The Agreement and the Facility Documents, any other document
contemplated hereby or thereby and each transaction have not been entered into fraudulently by any Borrower Party hereunder, or
with the intent to hinder, delay or defraud any creditor or Lender.

 

(h)          Margin Regulations. The use of funds acquired by Borrowers under this Agreement
will not conflict with or contravene, to the extent applicable, Regulations T, U or X promulgated by the Board, as the same may
from time to time be amended, supplemented or otherwise modified.

 

    	 	12	 

     

    

 

(i)           Accuracy of Information. Neither this Agreement nor any representations and warranties or information relating to
any Borrower Party that any Borrower Party has delivered or caused to be delivered to Lender, including, but not limited to, all
documents related to this Agreement, the Facility Documents or each Borrower Party’s financial statements, contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements made therein or herein in light
of the circumstances under which they were made, not misleading. Since the furnishing of such documents or information, there has
been no change, nor any development or event involving a prospective change that would render any of such documents or information
untrue or misleading in any material respect.

 

(j)           Investment Company Act. Neither Borrowers, the Guarantor nor any of its Subsidiaries is required to be registered
as an “investment company” as defined under the Investment Company Act or is an entity “controlled by”
an entity required to be registered as an “investment company” as defined under the Investment Company Act.

 

(k)          Taxes. Each Borrower Party has timely filed all federal and state tax returns that are required to be filed by it
and has paid all taxes, including any assessments received by it, to the extent that such taxes have become due (other than for
taxes that are being contested in good faith and for which it has established adequate reserves).

 

(l)           No Adverse Actions. No Borrower Party has received a notice from any Agency indicating any adverse fact or circumstance
in respect of a Borrower which adverse fact or circumstance may reasonably be expected to entitle such Agency, as the case may
be, to terminate such Borrower with cause or with respect to which such adverse fact or circumstance has caused such Agency to
threaten to terminate, or consider the termination of, such Borrower in such notice.

 

(m)         Financial Statements. The financial statements of each Borrower Party, copies of which have been furnished to Lender,
(i) are, as of the dates and for the periods referred to therein, complete and correct in all material respects, (ii) present
fairly the financial condition and results of operations of the related Borrower Party as of the dates and for the periods indicated
and (iii) have been prepared in accordance with GAAP consistently applied, except as noted therein (subject as to interim
statements to normal year-end adjustments). Since the date of the most recent financial statements, there has been no Material
Adverse Change with respect to any Borrower Party. Except as disclosed in such financial statements or pursuant to Section 7.01
hereof, no Borrower Party is subject to any contingent liabilities or commitments that, individually or in the aggregate, have
a material possibility of causing a Material Adverse Change with respect to any Borrower Party.

 

(n)          Agency Set Off Rights. No Borrower Party has actual notice, including any notice received from any Agency, or any
reason to believe, that, other than in the normal course of any Borrower Party’s business, any circumstances exist that would
result in any Borrower Party’s being liable to any Agency for any amount due by reason of: (i) any breach of servicing
or subservicing obligations or breach of mortgage selling warranties to the Agency under the related Servicing Contract or any
other similar contracts relating to a Borrower’s entire Agency servicing or subservicing portfolio (including without limitation
any unmet mortgage repurchase obligation), (ii) any unperformed obligation with respect to mortgages in an MBS pool that such
Borrower is servicing for any Agency pursuant to a recourse agreement, (iii) any loss or damage to any Agency by reason of
any inability to transfer to a purchaser of the Servicing Rights such Borrower’s selling and servicing representations, warranties
and obligations, as well as any existing MBS recourse obligations, or other recourse obligations, and (iv) any other unmet
obligations to any Agency under the related Servicing Contract or any other similar contracts relating to the Borrower’s
entire Agency servicing portfolio.

 

    	 	13	 

     

    

 

(o)          Use of Subservicers. Borrowers shall not use a subservicer, other than the Subservicer, with respect to any Mortgage
Loan without Lender's prior written consent, which consent shall not be unreasonably withheld.

 

(p)          Leverage Ratio; Liquidity; Tangible Net Worth; Profitability. Each of PMC and the Guarantor are in compliance with
each of the financial covenants set forth in the Repo Agreement. Holdings shall comply with the following financial covenants:

 

		(i)	Holdings shall maintain an Adjusted Tangible Net Worth (as defined in the Repo Agreement) of not
less than $250,000,000 as of the last day of each calendar month;

		(ii)	As of each month-end, Holdings shall have maintained unrestricted cash and Cash Equivalents (as
defined in the Repo Agreement) in an amount of not less than $10,000,000;

		(iii)	As of the last day of each calendar month, the ratio of Indebtedness to Adjusted Tangible Net Worth
(as defined in the Repo Agreement), in the case of Holdings, does not exceed 10:1; and

		(iv)	In addition, in the event Holdings is subject to financial covenants under any other agreement
for Indebtedness that are more restrictive of Holdings or otherwise more favorable to the lender thereunder than the financial
covenants set forth hereinabove, such financial covenants shall be automatically incorporated into this Agreement, for as long
as such provision(s) remain in full force and effect under such other agreement(s) for Indebtedness, as if fully set forth herein
without the need of any further action on the part of Holdings shall comply with such financial covenants.

(q)          Fannie Mae/Freddie Mac/Ginnie Mae/HUD. Subservicer is a seller/servicer approved by Fannie Mae and Freddie Mac, an
issuer approved by Ginnie Mae and a lender approved by HUD. Subservicer is in good standing to service mortgages for Fannie Mae,
Ginnie Mae, HUD and Freddie Mac, as applicable. Subservicer has not been suspended as a seller/servicer by Fannie Mae, Freddie
Mac, Ginnie Mae or HUD on and after the date on which Borrower first obtained such approval from Fannie Mae, Ginnie Mae, HUD or
Freddie Mac, as applicable. No Borrower Party is, and/or Subservicer is not, under review or investigation outside of due course
and does not have knowledge of imminent or future investigation outside of due course, by Fannie Mae, Ginnie Mae, HUD or Freddie
Mac on and after the date on which such Borrower Party or Subservicer, as applicable, became a Fannie Mae, Ginnie Mae, HUD or Freddie
Mac approved seller/servicer or lender, as the context may require.

 

    	 	14	 

     

    

 

(r)           Borrowers’ Existing Financing Facilities. As of the date hereof, each Borrower’s financing facilities
currently in place for the financing of any mortgage servicing rights or servicing advances owned by such Borrower is listed in
detail in Schedule 6.01(r) attached hereto. Each Borrower shall provide any updates to Schedule 6.01(r) to the Lender
at the time it delivers each monthly Compliance Certificate hereunder.

 

(s)          Subservicer Power and Authority. The Subservicer (a) is a limited liability company, duly organized, validly existing
and in good standing under the laws of the jurisdiction in which it was formed, (b) has all necessary power and authority and legal
right to service the Mortgage Loans subject to this Agreement, and (c) is qualified to do business and is in good standing in all
other jurisdictions in which the nature of the business conducted by it makes such qualification necessary.

 

(t)           Chief Executive Office. Each Borrower’s chief executive office and chief operating office on the date hereof
is located at 6101 Condor Drive, Moorpark, California 93021; provided that, effective as of March 14, 2016, such offices shall
change to 3043 Townsgate Road, Westlake Village, CA 91361.

 

Section 6.02.     
Representations Concerning the Collateral. Each Borrower represents and warrants to the Lender that as of each day
that a Loan is outstanding pursuant to this Agreement:

 

(a)          Such Borrower has not assigned, pledged, conveyed, or encumbered any Collateral to any other Person or any right to any
Collateral to any Person (including without limitation any right to control or transfer or otherwise effectuate any remedy relating
to any Collateral), and immediately prior to the pledge of any such Collateral, such Borrower was the sole owner of such Collateral
and had good and marketable title thereto (subject to the rights of Fannie Mae with respect to the related Servicing Rights), free
and clear of all Liens, and no Person, other than the Lender has any Lien on any Collateral. No Eligible Servicing Rights are related
to Mortgage Loans owned or financed by a third-party (including without limitation any Affiliate of such Borrower) other than Fannie
Mae pursuant to a Fannie Mae Acknowledgment Agreement, and no Person has any interest in any Eligible Servicing Rights or any related
Mortgage Loans, other than Lender, such Borrower (or both Borrowers in the case where any Excess Servicing Fees have been sold
by PMC to Holdings pursuant to the terms of the Master Spread Acquisition and MSR Servicing Agreement), or Fannie Mae pursuant
to the applicable Fannie Mae Acknowledgment Agreement (including without limitation any right to control or transfer or otherwise
effectuate any remedy relating to any Eligible Servicing Rights).

 

(b)          The provisions of this Agreement are effective to create in favor of the Lender a valid security interest in all right,
title, and interest of the Borrowers in, to and under the Collateral, subject only to the interests of the related Agency.

 

    	 	15	 

     

    

 

(c)          All Recourse Servicing Obligations as of the applicable date of the most recent Electronic File have been identified as
such in a monthly summary report delivered to the Lender. All information concerning all Servicing Rights set forth on the Electronic
File pursuant to which such Servicing Rights were, are or will be (as applicable) pledged to the Lender will not contain any material
misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein, in light
of the circumstances under which they were made, not misleading as of the date of such Electronic File.

 

(d)          Upon the filing of financing statements on Form UCC-1 naming the Lender as “Secured Party” and each Borrower
as a “Debtor”, and describing the Collateral, in the appropriate jurisdictions, the Lender has a duly perfected first
priority security interest under the UCC in all right, title, and interest of each Borrower in, to and under, subject to the interests
of any applicable Agency, the Servicing Rights.

 

(e)          All filings and other actions (including the execution of an account control agreement) necessary to perfect the security
interest in the Collection Account created under this Agreement have been duly made or taken and are in full force and effect,
and the Facility Documents create in favor of the Lender a valid and, together with such filings and other actions, perfected first
priority security interest in the Collateral, securing the payment of the Obligations, and all filings and other actions necessary
to perfect such security interest have been duly taken. Subject to the rights of the related Agency as set forth in Section 4.02
and in the related Acknowledgement Agreement, the Borrowers are the legal and beneficial owners of the Collateral free and clear
of any Lien, except for the Liens created or permitted under the Facility Documents.

 

(f)           Subject only to the terms of the related Acknowledgement Agreement, each Borrower has and will continue to have the full
right, power and authority, to pledge the Servicing Rights, and the pledge of such Servicing Rights may be further assigned without
any requirement, except as may be specified in the related Agency Guides.

 

(g)          In connection with any repurchase agreement, loan and security agreement or similar credit facility or agreement for borrowed
funds entered into by a Borrower or any of its Affiliates on the one hand and any third party (including an Affiliate of a Borrower
or any of its Affiliates but excluding the Lender or any Affiliate of Lender) on the other, including without limitation, any other
facility for the funding of Advances, no such third party has the right pursuant to the terms of such repurchase agreement, loan
and security agreement or similar credit facility or agreement, to cause such Borrower to terminate, rescind, cancel, pledge, hypothecate,
liquidate or transfer any of the Collateral.

 

    	 	16	 

     

    

 

ARTICLE
VII

COVENANTS

 

Section 7.01.     
Affirmative Covenants of each Borrower. Each Borrower covenants and agrees with the Lender that, so long as any Loan
is outstanding and until all Obligations have been paid in full:

 

(a)          Compliance with Laws, Existence, Etc. Each Borrower Party will:

 

(i)          comply with all applicable Requirements of Law if the failure to comply with such Requirements of Law could reasonably be
expected to have a Material Adverse Effect;

 

(ii)         (A) preserve and maintain its legal existence and all of its material rights, privileges, franchises; (B) maintain all licenses,
permits or other approvals necessary to conduct its business and to perform its obligations under the Facility Documents; (C) except
as would not be reasonably likely to have a Material Adverse Effect or would have a material adverse effect on the Collateral or
Lender’s interest therein, remain in good standing under the laws of each state in which it conducts business or the related
Mortgaged Property of any Mortgage Loan is located; and (D) not change its tax identification number or fiscal year without prior
written notice to the Lender;

 

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

 

(iv)         not move its chief executive office or chief operating office from the addresses referred to in Section 6.01(r) unless
it shall have provided Lender thirty (30) days prior written notice of such change; provided, however, that no additional notice
is required that such addresses shall change on March 14, 2016 to 3043 Townsgate Road, Westlake Village, California 91361;

 

(v)         pay and discharge or cause to be paid and discharged promptly when due all Taxes, assessments and governmental charges or
levies imposed on it or on its income or profits or on any of its Property which, if unpaid, might become a Lien, unless and to
the extent the same are being contested in good faith and by proper proceedings and against which adequate reserves shall, to the
extent required by GAAP, have been set aside; and

 

(vi)        not directly or indirectly enter into any agreement that would be violated or breached by any Loan or the performance by
such Borrower Party of any Facility Document.

 

    	 	17	 

     

    

 

(b)          Performance and Compliance with Servicing Contracts. Each Borrower Party will comply with all terms, provisions,
covenants and other promises required to be observed by it under each of the Facility Documents to which it is a party, maintain
the Facility Documents to which it is a party in full force and effect in all material respects and enforce the Servicing Contracts
in all material respects in accordance with the terms thereof. No Borrower shall amend or permit the amendment of any sections
of the Subservicing Agreement which would materially affect the Servicing Contracts referenced herein or Subservicer's servicing
of the Mortgage Loans subject to this Agreement, without Lender's prior written consent. Each Borrower shall diligently enforce
its rights under the Subservicing Agreement, including all rights to terminate and replace or cause the termination and replacement
of Subservicer upon the occurrence of a Subservicer Termination Event. No Borrower shall waive any material default or other material
failure to perform under or breach of the Servicing Contracts or Subservicing Agreement without Lender's prior written consent.
For the avoidance of doubt, any default, failure or breach by the Subservicer that would permit the termination and replacement
of the Subservicer under the Subservicing Agreement shall be deemed "material" and shall not be waived by any Borrower
or their respective Affiliates without Lender’s prior written consent.

 

(c)          Reserved.

 

(d)          Due Diligence. The Borrowers will permit Lender and its respective agents or designees, upon reasonable notice during
normal business hours, to perform reasonable continuing due diligence reviews with respect to the Servicing Rights and the Subservicer,
any Borrower Party and the other Collateral, for purposes of verifying compliance with the representations, warranties, and specifications
made hereunder and under the other Facility Documents, or otherwise. Borrowers shall cooperate in all respects with such diligence
and, upon reasonable notice during normal business hours, shall provide Lender and its respective agents or designees all documents,
records, agreements, instruments or information relating to the Collateral in the possession of the Borrowers or Subservicer; provided,
however, the foregoing shall not apply with respect to any information that the Borrowers or Subservicer are required by an Agency
to keep confidential. Notwithstanding anything to the contrary herein, the Borrowers shall reimburse the Lender for any and all
reasonable and documented costs and expenses incurred by the Lender’s third party diligence firm in connection with any ongoing
due diligence or auditing activities, subject to an annual cap of $37,500; provided, however, that such annual cap shall not apply
if a Default has occurred.

 

(e)          Changes in Servicing Contracts. The Borrowers shall provide written notice to the Lender of any changes in any Servicing
Contracts that may materially affect the Servicing Rights within three (3) Business Days after a Borrower receives notice thereof.

 

(f)           Quarterly Third Party Valuation Reports. As soon as possible and in any event no later than forty-five (45) days
after the last Business Day of each fiscal quarter of a Borrower, such Borrower shall provide to Lender a report provided by a
third party valuation agent acceptable to the Lender setting forth such agent’s determination of the value of all of such
Borrower’s servicing rights (including servicing rights not subject to this Agreement) and cash flows, along with the appropriate
certificate required under Section 7.01(h)(3).

 

(g)          Publicly Traded Company. Guarantor shall at all times maintain its status as a publicly traded company.

 

    	 	18	 

     

    

 

(h)          Financial Statements. Each Borrower shall deliver to the Lender, in each case, to the extent not publicly filed:

 

(1)          Within forty-five (45) days after the end of each month, consolidated unaudited balance sheets and consolidated statements
of income and changes in equity and unaudited statement of cash flows, all to be in a form acceptable to Lender, showing the financial
condition and results of operations of such Borrower and its consolidated Subsidiaries on a consolidated basis as of the end of
each such month and for the then elapsed portion of the fiscal year, setting forth, certified by a financial officer of such Borrower
(acceptable to Lender) as presenting fairly the financial position and results of operations of such Borrower and its consolidated
Subsidiaries and as having been prepared in accordance with GAAP consistently applied, in each case, subject to normal year-end
audit adjustments;

 

(2)          Within ninety (90) days after the end of each fiscal year of each Borrower, the consolidated audited balance sheets of such
Borrower and its consolidated Subsidiaries, which will be in conformity with GAAP, and the related consolidated audited statements
of income and changes in equity showing the financial condition of such Borrower and its consolidated Subsidiaries as of the close
of such fiscal year and the results of operations during such year, and consolidated audited statements of cash flows, as of the
close of such fiscal year, setting forth, in each case, in comparative form the corresponding figures for the preceding year. The
foregoing consolidated financial statements are to be reported on by, and to carry the unqualified report (acceptable in form and
content to Lender) of, an independent public accountant of national standing acceptable to Lender and are to be accompanied by
a letter of management in form and substance acceptable to Lender; and

 

(3)          Together with each set of the financial statements delivered pursuant to clause (1) above, a certificate of a Responsible
Officer of such Borrower in the form of Exhibit 7.01 attached hereto.

 

(i)          Agency Approval. Each Borrower Party and Subservicer shall at all times maintain copies of relevant portions of all
final written Fannie Mae, Freddie Mac, HUD and Ginnie Mae audits, examinations, evaluations, monitoring reviews and reports of
its origination and servicing and subservicing operations (including those prepared on a contract basis for any such agency) in
which there are material adverse findings, 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, and all necessary approvals from each of Fannie Mae, Freddie Mac, HUD and Ginnie Mae. No Borrower shall, and no
Borrower shall permit Subservicer to, take any action or fail to take any action that would permit Fannie Mae, Freddie Mac, HUD
or Ginnie Mae to terminate or threaten to terminate its right to service loans for Fannie Mae, Freddie Mac, HUD or Ginnie Mae with
cause.

 

    	 	19	 

     

    

 

(j)          Financial Covenants. Each Borrower Party at all times shall satisfy its respective requirements with respect to the
financial covenants set forth in the Repo Agreement.

 

(k)         Quality Control. Each Borrower shall and shall cause Subservicer to conduct quality control reviews of such Borrower’s
and Subservicer’s servicing operations in accordance with industry standards and Agency requirements. Each Borrower shall
report to Lender material quality control findings in a monthly summary report included with the certificate required under Section
7.01(h)(3).

 

(l)          Special Affirmative Covenants Concerning Servicing Rights.

 

(i)          Each Borrower warrants and shall defend the right, title and interest of the Lender in and to the Servicing Rights pledged
to the Lender against the claims and demands of all Persons whomsoever, subject to the restrictions imposed by the Acknowledgement
Agreements to the extent that such restrictions are valid and enforceable under the applicable UCC and other Requirements of Law.

 

(ii)         Each Borrower shall preserve the security interests granted hereunder and, upon request by the Lender, undertake all actions
which are necessary or appropriate, in the reasonable judgment of the Lender, to (x) maintain the Lender’s security
interest (including the priority thereof) in the Collateral in full force and effect at all times prior to the satisfaction of
all obligations under this Agreement and the release of the Lender’s lien in accordance with the terms and provisions of
this Agreement, and (y) preserve and protect the Collateral and protect and enforce the rights of the Lender to the Collateral,
including the making or delivery of all filings and recordings (of financing or continuation statements), or amendments thereto
or assignments thereof, and such other instruments or notices, as may be necessary or appropriate, cause to be marked conspicuously
its master data processing records with a legend, acceptable to the Lender, evidencing that such security interest has been granted
in accordance with this Agreement.

 

(iii)        Each Borrower Party and the Subservicer shall diligently fulfill its duties and obligations under the Servicing Contracts
and the Subservicing Agreement in all material respects and shall not default in any material respect under any of the Servicing
Contracts, Subservicing Agreement or the Acknowledgement Agreements; provided that it shall not be a breach of this covenant if:
(a) an Agency shall terminate a Borrower’s rights under any Servicing Contract and such Borrower shall repay (without
duplication of payment) to the Lender an amount equal to the excess of the sum of the Loans then outstanding over the sum of the
Borrowing Base of all the Servicing Rights then pledged to the Lender within the time periods set forth in Section 2.08(b)
or (b) any such Servicing Contract expires in accordance with its terms and without renewal or (c) a default declared
by an Agency in respect of a Servicing Contract arose from a failure of the portfolio of serviced Mortgage Loans to perform as
required by the related Servicing Contract and such Agency has elected in writing to continue to use such Borrower as servicer
of both that portfolio and other pools of Mortgage Loans and individual Mortgage Loans and such Agency has not rescinded or revoked
such election.

 

    	 	20	 

     

    

 

(m)          Maintenance of Property; Insurance. The Borrowers shall, and shall cause Guarantor and Subservicer to keep all property
useful and necessary in its business in good working order and condition. The Borrowers shall and shall cause Subservicer to maintain
a fidelity bond and be covered by insurance (including, without limitation, errors and omissions insurance) of the kinds and in
the amounts customarily maintained by such similarly situated entities in the same jurisdiction and industry as the Borrowers,
in amounts acceptable to the Agencies, and no Borrower or Subservicer shall reduce such coverage without the written consent of
Lender, and shall also maintain such other insurance with financially sound and reputable insurance companies, and with respect
to property and risks of a character usually maintained by entities engaged in the same or similar business similarly situated,
against loss, damage and liability of the kinds and in the amounts customarily maintained by such entities.

 

(n)           Use of Proceeds. No Borrower shall use the proceeds of the Loans in contravention of the requirements, if any, of
the Agencies.

 

(o)           Reserved.

 

(p)           Reserved.

 

(q)           Notice of Disposal of Servicing Rights. In the event that a Borrower sells or otherwise disposes of any of the Pledged
Servicing Rights, it shall give the Lender ten (10) Business Days’ prior written notice of such sale or disposition (together
with a list of the affected loans and other information helpful to the Lender in assessing the related Collateral Value), during
which time the Lender shall recalculate the Collateral Value for the Collateral remaining after such sale or disposition.

 

(r)            Requests for Information. The Borrowers shall furnish to the Lender within five (5) Business Days after the Lender’s
request, any information, documents, records or reports with respect to the servicing or subservicing of the Collateral, any Borrower
Party’s or Subservicer’s business or its relationship with any Agency, as the Lender may from time to time reasonably
request.

 

(s)           Monthly Reports. No later than the time set forth in Section 7.01(h)(1), Borrowers shall provide to Lender (i) reports
of information related to (x) any claims or compensatory fees actually paid by a Borrower or Guarantor to each Agency related to
enforcement by such Agency of its rights under the related Agency Guide (or to trusts under non-agency securitizations) that are
not reimbursed from a predecessor originator/servicer, (y) a summary report of claims for repurchases or indemnity made by Agencies,
insurers or trusts in non-agency securitizations, including the current status or resolution of such repurchase and indemnification
demands; (z) the MSR Collateral as detailed in Schedule 7.01(s); (ii) a report provided by Borrowers setting forth Borrowers’
determination of the value of all of Borrowers’ servicing rights (including servicing rights not subject to this Agreement)
and cash flows, along with the appropriate certificate required under Section 7.01(h)(3); and (iii) copies of all notices
it receives from any Agency that materially affect the Eligible Servicing Rights, including any notice received with respect to
the events set forth in Section 6.01(n)(i) through (iv).

 

(t)            REIT Status. Guarantor shall maintain its REIT status at all times.

 

    	 	21	 

     

    

 

(u)           Agency Collateral Account. To the extent applicable, within five (5) Business Days after the end of each month (beginning
January 2016), each Borrower shall deliver a notice to the Lender setting forth the amount on deposit in each Agency Collateral
Account, provided that if any such date is not a Business Day, such notice shall be delivered to the Lender on the next succeeding
Business Day. To the extent not prohibited by an Agency, each Borrower shall promptly (and in any event within five (5) Business
Days thereof) notify the Lender (and provide a copy of any written request) of any request it receives from such Agency indicating
either (i) that such Borrower must deposit additional amounts in the Agency Collateral Account or (ii) that such Borrower
is entitled to withdraw amounts from the Agency Collateral Account and such notice shall include the amount required to be deposited
or entitled to be withdrawn, as applicable.

 

(v)           Agency Information. Each Borrower and the Guarantor shall make available the Chief Executive Officer, the President,
the Chief Financial Officer, and/or any other appropriate officer of such Borrower or Guarantor, as applicable, to participate
in discussions with Lender and provide information with respect to the following: (i) a projection of the obligations of such
Borrower in connection with (A) repurchase obligations to Agencies and (B) amounts that may have been required to be
deposited or entitled to be withdrawn from the Agency Collateral Account (the “Agency Obligations”), (ii) a
projection of the impact the Agency Obligations may have on the operations of such Borrower, including but not limited to, the
net impact on liquidity, statements of income, retained earnings and cash flows, (iii) the projected date of resolution of
the Agency Obligations, and (iv) such other information as may be reasonably requested by the Lender, including information
related to Subservicer’s financial condition, in all cases to the extent such Borrower is not prohibited from disclosing
such information

 

(w)          Corporate Rating. The Guarantor shall have obtained a published corporate rating.

 

(x)           Subservicer Acknowledgement Letter. The Borrowers shall cause the Subservicer to acknowledge the Lender’s rights
hereunder and agree to follow all instructions of Lender upon the occurrence of a default hereunder, which side letter shall be
acceptable to Lender in form and substance (each such side letter, a “Subservicer Acknowledgement Letter”) and
prior to permitting any other subservicer to service any Mortgage Loans related to the Eligible Servicing Rights pledged hereunder,
the Borrowers shall cause such subservicer to become a party to a Subservicer Acknowledgment Letter.

 

Section 7.02.     
Negative Covenants of the Borrowers. Each Borrower covenants and agrees with the Lender that, so long as any Loan
is outstanding and until all Obligations have been paid in full, such Borrower shall not:

 

(a)           other than in accordance with Section 7.02(c), take any action that would directly or indirectly materially
impair or materially adversely affect such Borrower’s title to, or the value of, the Collateral;

 

(b)           create, incur or permit or allow Subservicer to create, incur or permit to exist any Lien in or on the Collateral, or, unless
otherwise permitted by the Lender, in or on any mortgage loans or servicing rights subject to any Fannie Mae Acknowledgment Agreement,
except (x) the security interest granted hereunder in favor of the Lender and (y) the rights of Fannie Mae under the Servicing
Contracts and the applicable Agency Guide, nor assign any right to receive income in respect thereof except as permitted under
Section 7.02(c);

 

    	 	22	 

     

    

 

(c)           sell, lease or otherwise dispose of or allow Subservicer to sell lease, or otherwise dispose of any Collateral (other than
sales or dispositions of Servicing Rights (i) resulting from the payoff of the related Mortgage Loans or the repurchase of
the related Mortgage Loans by such Borrower, (ii) as required by an Agency or (iii) in the ordinary course of the Borrower’s
servicing business) except as expressly permitted by this Agreement;

 

(d)           engage to any substantial extent in any line or lines of business activity other than the businesses related to residential
and commercial mortgage origination, acquisition and servicing carried on by it as of the Closing Date;

 

(e)           (i) cancel or terminate or allow Subservicer to cancel or terminate any Facility Documents to which it is a party or consent
to or accept any cancellation or termination thereof without Lender’s prior consent, (ii) amend, amend and restate,
supplement or otherwise modify any Facility Document without Lender’s prior consent; provided that if an amendment to the
Servicing Contracts or the Subservicing Agreements does not relate to and would not affect Subservicer’s servicing of the
Mortgage Loans subject to this Agreement or the value or marketability of the Collateral, the prior written consent of the Lender
is not required, (iii) consent to or allow Subservicer to consent to any amendment, modification or waiver of any term or
condition of any Facility Document, without the prior written consent of the Lender, which consent shall not be unreasonably withheld,
provided that if the amendment of a Servicing Contract is done unilaterally by an Agency, the prior written consent of the Lender
is not required; provided further, that if an amendment to the Servicing Contracts or the Subservicing Agreements does not relate
to and would not affect Subservicer’s servicing of the Mortgage Loans subject to this Agreement or the value or marketability
of the Collateral, the prior written consent of the Lender is not required, (iv) waive or allow Subservicer to waive any material
default under or breach of any Servicing Contracts, or (v) take any other action or allow Subservicer to take any other action
in connection with any such Facility Documents that would impair in any material respect the value of the interests or rights of
a Borrower thereunder or that would impair in any material respect the interests or rights of the Lender;

 

(f)            change its name or the state of its organization unless such Borrower shall have given the Lender at least thirty (30) days’
prior written notice thereof and unless, prior to any such change, such Borrower shall have filed, or caused to be filed, such
financing statements or amendments as the Lender determines may be reasonably necessary to continue the perfection of the Lender’s
interest in the Collateral;

 

(g)           appoint any subservicers other than the Subservicer with respect to any Servicing Rights pledged to the Lender pursuant
to this Agreement without the consent of the Lender, which consent shall not be unreasonably withheld;

 

(h)           take any action or allow Subservicer to take any action that would directly or indirectly materially impair or materially
adversely affect such Borrower’s title to, or the value, of the Eligible Servicing Rights or materially increase the duties,
responsibilities or obligations of such Borrower;

 

    	 	23	 

     

    

 

(i)            make any Restricted Payments following any Event of Default that has not been waived by the Lender in accordance herewith;

 

(j)            directly or indirectly, sell, lease or otherwise transfer any Property or assets to, or otherwise acquire any Property or
assets from, or otherwise engage in any transactions with, any of its Affiliates (other than any wholly-owned Subsidiary) unless
the terms thereof are no less favorable to Lender, than those that could be obtained at the time of such transaction in an arm’s
length transaction with a Person who is not such an Affiliate;

 

(k)           enter into any other financing facility with a lender other than the Lender to provide for the financing of Fannie Mae Servicing
Rights;

 

(l)            amend, supplement or otherwise modify the Master Spread Acquisition and MSR Servicing Agreement without prior written consent
of the Lender; or

 

(m)          in the case of Holdings, sell one or more participations in the Excess Servicing Fees or enter into any other arrangement
whereby one or more Persons have rights through, or with, Holdings with respect to the Excess Servicing Fees without the prior
written consent of Lender, such consent to be given at the sole discretion of the Lender.

 

Section 7.03.     
Notice of Certain Occurrences. Each Borrower covenants and agrees with the Lender that, so long as any Loan is outstanding
and until all Obligations have been paid in full:

 

(a)           Defaults. Each Borrower shall promptly, and in any event within one (1) Business Day of knowledge thereof by
a Responsible Officer of such Borrower, inform Lender in writing of any Default or Event of Default by such Borrower or any other
Person (other than Lender or Lender’s Affiliates) of any material obligation under any Facility Document, or the occurrence
or existence of any event or circumstance that such Borrower reasonably expects will with the passage of time become a Default
or Event of Default by such Borrower or any other Person.

 

(b)           Litigation. Each Borrower shall promptly inform Lender in writing of the commencement of, or any determination in,
any dispute, litigation, investigation, proceeding, sanctions or suspension between such Borrower, on the one hand, and any Governmental
Authority (or any other Person, on the other, with an amount in controversy equal to or greater than $10,000,000).

 

(c)           Material Adverse Effect on Collateral. As soon as possible, each Borrower shall inform Lender in writing upon such
Borrower becoming aware of any default related to any Collateral which should reasonably be expected to have a Material Adverse
Effect.

 

(d)           Reserved. 

 

(e)           Credit Default. Unless otherwise disclosed by Guarantor on Form 8-K with separate notice by the Borrowers to Lender
of the filing of such Form 8-K, upon, and in any event within five (5) Business Days after, the Borrowers shall furnish the Lender
notice of the involuntary termination, acceleration, maturity of or reduction in the amount available for borrowing under any repurchase
agreement, loan and security agreement or similar credit facility or agreement for borrowed funds entered into by a Borrower Party
and any third party to the extent that such agreement or facility, prior to the effectiveness of such termination, acceleration,
maturity or reduction in the amount available for borrowing, provides for a minimum amount available
for borrowing by such Borrower Party equal to or greater than $10,000,000.

 

    	 	24	 

     

    

 

(f)            Servicing Contract Transfer. As soon as possible, each Borrower shall inform Lender
in writing of the transfer, expiration without renewal, termination or other loss of all or any part of any Servicing Contract
(or the termination or replacement of such Borrower thereunder), the reason for such transfer, loss or replacement, if known to
it and the effects that such transfer, loss or replacement will have (or will likely have) on the prospects for full and timely
collection of all amounts owing to the Borrower under or in respect of the Borrower’s Servicing Contracts.

 

(g)           Agency Notices. Each Borrower shall promptly furnish the Lender copies of all notices
it receives from Fannie Mae, Freddie Mac, HUD or Ginnie Mae indicating any adverse fact or circumstance in respect of the Borrower
with respect to which adverse fact or circumstance Fannie Mae, Freddie Mac, HUD or Ginnie Mae, respectively, announces its intention
to terminate or threatens to terminate such Borrower or the Subservicer with cause or with respect to which Fannie Mae, Freddie
Mac, HUD or Ginnie Mae, announces its intention to conduct any inspection or investigation of such Borrower or Subservicer, or
either of their files or facilities outside of the ordinary course.

 

(h)           Servicing Rights Notices. Each Borrower shall provide copies of (i) all notices it
receives from any Agency that materially affect the Eligible Servicing Rights, including any notice received with respect to the
events set forth in Section 6.01(n)(i) through (iv), and (ii) any demand by an Agency or an insurer for the
repurchase of or indemnification with respect to a mortgage loan and the reason for such repurchase or indemnification within three
(3) Business Days after such Borrower or Subservicer receives notice thereof, if such demand would likely cause a Material Adverse
Effect. 

 

(i)            Subservicer Rating. Each Borrower shall provide written notice to the Lender within
two (2) Business Days of receipt of notice of any decrease in any servicer rating of such Borrower or Subservicer below (i) “SQ3”,
as rated by Moody’s or (ii) “Average”, as rated by S&P.

 

(j)            Other. Each Borrower shall furnish, or cause to be furnished, upon the request of Lender, such other information
or reports as the Lender may from time to time reasonably request.

 

(k)           Agency Requirements. Each Borrower shall provide written notice of any change in any Agency’s requirements
regarding such Borrower’s or Subservicer’s minimum consolidated tangible net
worth or any change in such Agency’s requirements regarding such Borrower’s or Subservicer’s
consolidated liquidity within five (5) Business Days after such Borrower or Subservicer
receives notice thereof.

 

    	 	25	 

     

    

 

(l)            Amendment to any Servicing Contract or the Subservicing Agreement. Each Borrower shall provide written notice to
the Lender within five (5) Business Days after such Borrower or the Subservicer enters into
any amendment to the terms of any Servicing Contract or the Subservicing Agreement; provided, that such Borrower shall not allow
Subservicer to enter into any amendment to the Subservicing Agreement or the Servicing Contracts that would affect Subservicer's
servicing of the Mortgage Loans subject to this Agreement without the prior written consent of Lender.

 

(m)          Subservicer. Each Borrower shall provide written notice to Lender within one (1) Business Day following the occurrence
of a Subservicer Termination Event.

 

ARTICLE
VIII

EVENTS OF DEFAULT

 

Section 8.01.     
Events of Default. The following events shall be “Events of Default”:

 

(a)           A Borrower or Guarantor shall fail to (a) make any payment or deposit to be made by it under Article II, Section 3.01
or Section 8.02(d) when due (whether of principal or interest at stated maturity, upon acceleration, or at mandatory
prepayments due to Borrowing Base Deficiencies or otherwise) or (b) make any other payment or deposit to be made by it hereunder
when due and, solely with respect to this clause (b), such failure (other than with respect to payment of principal) shall continue
unremedied for a period of three (3) Business Days;

 

(b)           A Borrower Party shall fail to comply with the requirements of Sections 7.01(a)(ii)(A), 7.01(a)(iii),
7.02(c), 7.02(l), 7.02(m) or 7.03(f) and such default shall continue unremedied for a period of one
(1) Business Day; or a Borrower Party shall otherwise fail to observe or perform any other agreement contained in this Agreement
or any other Facility Document and such failure to observe or perform shall continue unremedied for a period of five (5) Business
Days following a Borrower Party obtaining knowledge thereof;

 

(c)           Any representation, warranty or certification made or deemed made herein or in any other Facility Document by a Borrower
Party or any certificate furnished to Lender pursuant to the provisions thereof, shall prove to have been false or misleading in
any material respect as of the time made or furnished (other than the representations and warranties set forth in Section 6.02
which shall be considered solely for the purpose of determining the MSR Value of the Eligible Servicing Rights; unless (i) Borrower
Party shall have made any such representations and warranties with knowledge that they were materially false or misleading at the
time made or (ii) any such representations and warranties have been determined by Lender in its reasonable discretion to be
materially false or misleading on a regular basis);

 

    	 	26	 

     

    

 

(d)           (1) The failure of PMC or Subservicer to be an approved servicer under the guidelines of
an Agency with respect to which any Eligible Servicing Rights pledged under this Agreement relate, (2) PMC or Subservicer
fails to service or subservice, as applicable, in accordance with the Agency Guides and the Lender determines in its good faith
discretion that such failure may have a Material Adverse Effect, (3) PMC or Subservicer is terminated as servicer or subservicer,
as applicable, with respect to any Eligible Servicing Rights by an Agency (except if the provisions of Section 7.01(l)(iii)(a)-(c)
are met), (4) PMC or Subservicer shall at any time be terminated, revoked or suspended as servicer or subservicer, as applicable,
with respect to any whole loan servicing or subservicing rights that make up a material portion of PMC’s servicing portfolio
or Subservicer’s subservicing portfolio, (5) PMC or Subservicer shall cease to be approved by or its approval shall
be revoked, suspended, rescinded, halted, eliminated, withdrawn, annulled, repealed, voided or terminated by an Agency as an approved
seller/servicer or lender, (6) all or a portion of a Borrower Party’s or Subservicer’s servicing or subservicing
portfolio consisting of Agency loans is seized, (7) any Agency shall at any time cease to accept delivery of any loan or loans
from PMC under any program or notifies PMC that the Agency shall cease accepting loan deliveries from such Borrower and (8) receipt
by a Borrower Party or Subservicer of a notice from any Agency indicating material breach, default or material non-compliance by
such Borrower Party or Subservicer which the Lender reasonably determines may entitle such Agency to terminate such Borrower Party
or Subservicer, as applicable, which notice has not been rescinded or nullified within three (3) Business Days of its receipt by
such Borrower Party or Subservicer, as applicable, or such lesser time as Lender believes is necessary to protect its interest
and provides the Borrowers with written notice thereof, as the case may be;

 

(e)           Any “event of default” or other material breach or failure to perform by a Borrower or any of its Affiliates
shall have occurred and shall be continuing beyond the expiration of any applicable grace period under the terms of any repurchase
agreement, loan and security agreement or similar credit facility or agreement for borrowed funds entered into by such Borrower
or any of its Affiliates on the one hand and any third party (including an Affiliate of such Borrower but excluding the Lender
or any Affiliate of Lender), which relates to the Indebtedness of such Borrower or any of its Affiliates in an amount individually
or in the aggregate greater than $10,000,000;

 

(f)            The Lender does not, or ceases to, have a first priority perfected security interest in the Collateral or any material part
thereof, subject only to the interests of the Agency with respect to the related Agency Servicing Rights and other Collateral,
other than as a result of a release of such security interest by the Lender and such default continues unremedied for a period
of one (1) Business Day after the earlier of (i) a Responsible Officer of a Borrower or the Guarantor having actual knowledge
thereof and (ii) written notice of such default from the Lender;

 

(g)           A Change of Control of a Borrower or the Guarantor occurs;

 

(h)           (A) PMC or Subservicer ceases to be (1) a HUD approved mortgagee pursuant to
Section 203 of the National Housing Act or (2) a Fannie Mae or Freddie Mac approved servicer or HUD, Fannie Mae or Freddie
Mac, as applicable, suspends, rescinds, halts, eliminates, withdraws, annuls, repeals, voids or terminates the status of PMC as
either (1) a HUD approved mortgagee pursuant to Section 203 of the National Housing Act or (2) a Fannie Mae or Freddie
Mac approved servicer or (B) PMC or Subservicer receives notice that HUD, Fannie Mae
or Freddie Mac may take such action set forth in clause (A);

 

    	 	27	 

     

    

 

(i)            Any “event of default” or other material breach or failure to perform shall have occurred and shall be continuing
beyond the expiration of any applicable grace period under any instrument, agreement or contract between a Borrower or any of its
Affiliates, on the one hand, and the Lender or any of Lender’s Affiliates on the other, including, without limitation, the
Repo Agreement;

 

(j)            Guarantor shall fail at any time to maintain its REIT Status or shall fail to satisfy all of the conditions set forth in
Section 856(c)(2), (3) and (4) of the Internal Revenue Code and any Treasury Regulations promulgated thereunder;

 

(k)           PMC or Guarantor shall fail to comply with the financial covenants set forth in the Repo Agreement;

 

(l)            The failure of PMC or Subservicer to maintain any Agency’s net worth requirements;

 

(m)          Any judgment or order for the payment of money in excess of $5,000,000 shall be rendered against a Borrower or any of its
Affiliates, by a court, administrative tribunal or other body having jurisdiction over them and the same shall not be satisfied
or discharged (or provisions shall not be made for such discharge) or bonded, or a stay of execution thereof shall not be procured,
within sixty (60) days from the date of entry thereof or, if a stay of execution is procured, sixty (60) days from the date such
stay is lifted;

 

(n)           (1) A Borrower or any of its Affiliates files a voluntary petition in bankruptcy, seeks relief under any provision of any
Insolvency Law or consents to the filing of any petition against it under any such law; (2) a proceeding shall have been instituted
by any Affiliate of a Borrower in a court having jurisdiction in the premises seeking a decree or order for relief in respect of
such Borrower or such Affiliate in an involuntary case under any applicable Insolvency Law, or for the appointment of a receiver,
liquidator, assignee, trustee, custodian, sequestrator, conservator or other similar official of such Borrower or such Affiliate,
or for any substantial part of its Property, or for the winding-up or liquidation of its affairs, (3) a proceeding shall have
been instituted by any Person (other than an Affiliate of a Borrower) in a court having jurisdiction in the premises seeking a
decree or order for relief in respect of a Borrower or any of its Affiliates in an involuntary case under any applicable Insolvency
Law, or for the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator, conservator or other similar
official of such Borrower or such Affiliate, or for any substantial part of its Property, or for the winding-up or liquidation
of its affairs and such Borrower or such Affiliate shall have failed to obtain a relief (including, without limitation, a dismissal)
or a stay of such involuntary proceeding within sixty (60) days, (4) the admission in writing by a Borrower or any of its
Affiliates of its inability to pay its debts as they become due, (5) a Borrower or any of its Affiliates consents to the appointment
of or taking possession by a custodian, receiver, conservator, trustee, liquidator, sequestrator or similar official, of all or
any part of its Property or any custodian, receiver, conservator, trustee, liquidator, sequestrator or similar official takes possession
of all or any part of the Property of such Borrower or any of its Affiliates; (6) a Borrower or any of its Affiliates makes
an assignment for the benefit of any of its creditors; or (7) a Borrower or any of its Affiliates generally fails to pay its
debts as they become due;

 

    	 	28	 

     

    

 

(o)           Any Governmental Authority or any Person, agency or entity acting or purporting to act under Governmental Authority (including
any Agency) 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 the Borrower or any of its Affiliates, or shall have taken any action to displace the management of any
of the Borrower or any of its Affiliates or to curtail the Borrower’s, or any of its Affiliates’ authority in the conduct
of its business; or

 

(p)           The Guarantor repudiates, revokes or attempts to revoke in writing the guaranty of the Guarantor set forth in Section 11.13
of this Agreement, in whole or in part.

 

Section 8.02.     
Remedies.

 

(a)           Optional Acceleration. Upon the occurrence of an Event of Default (other than an Event of Default described in Section 8.01(n)),
the Lender may by written notice to the Borrowers, terminate the Facility and declare all Loans and all other Obligations to be
immediately due and payable.

 

(b)           Automatic Acceleration. Upon the occurrence of an Event of Default described in Section 8.01(n), the
Facility shall be automatically terminated and the Loans and all other Obligations shall be immediately due and payable upon the
occurrence of such event, without demand or notice of any kind.

 

(c)           Remedies. Upon any acceleration of the Loans pursuant to this Section 8.02, the Lender, in addition to
all other rights and remedies under this Agreement or otherwise, shall have all other rights and remedies provided under the UCC
of each applicable jurisdiction and other applicable laws, which rights shall be cumulative. The Borrowers agree, upon the occurrence
of an Event of Default and notice from the Lender, to assemble, at their expense, all of the Collateral that is in their possession
(whether by return, repossession, or otherwise) at a place designated by the Lender. All out-of-pocket costs incurred by the Lender
in the collection of all Obligations, and the enforcement of its rights hereunder, including reasonable attorneys’ fees and
legal expenses, shall be paid out of the Collateral. Without limiting the foregoing, upon the occurrence of an Event of Default
and the acceleration of the Loans pursuant to this Section 8.02, the Lender may, to the fullest extent permitted by
applicable law, without notice, advertisement, hearing or process of law of any kind, (i) enter upon any premises where any
of the Collateral which is in the possession of a Borrower (whether by return, repossession, or otherwise) may be located and take
possession of and remove such Collateral, (ii) sell any or all of such Collateral, free of all rights and claims of any Borrower
therein and thereto, at any public or private sale, and (iii) bid for and purchase any or all of such Collateral at any such
sale. Any such sale shall be conducted in a commercially reasonable manner and in accordance with applicable law. Each Borrower
hereby expressly waives, to the fullest extent permitted by applicable law, any and all notices, advertisements, hearings or process
of law in connection with the exercise by the Lender of any of its rights and remedies upon the occurrence of an Event of Default.
Each of the Lender and the Borrowers shall have the right (but not the obligation) to bid for and purchase any or all Collateral
at any public or private sale. Each Borrower hereby agrees that in any sale of any of the Collateral, the Lender is hereby authorized
to comply with any limitation or restriction in connection with such sale as it may be advised by counsel is necessary in order
to avoid any violation of applicable law (including, without limitation, compliance with such procedures as may restrict the number
of prospective bidders and purchasers, require that such prospective bidders and purchasers have certain qualifications, and restrict
such prospective bidders and purchasers to Persons who will represent and agree that they are purchasing for their own account
for investment and not with a view to the distribution or resale of such Collateral), or in order to obtain any required approval
of the sale or of the purchaser by any Governmental Authority, and each Borrower further agrees that such compliance shall not
result in such sale being considered or deemed not to have been made in a commercially reasonable manner. The Lender shall not
be liable for any sale, private or public, conducted in accordance with this Section 8.02(c). If an Event of Default
occurs, and upon acceleration of the Loans hereunder, the Loans and all other Obligations shall be immediately due and payable,
and collections on the Eligible Servicing Rights and proceeds of sales and securitizations of Eligible Servicing Rights, and other
Collateral will be used to pay the Obligations.

 

    	 	29	 

     

    

 

(d)           In the event a Borrower receives a notice from an Agency indicating a material breach, material default or material non-compliance
by such Borrower that the Lender reasonably determines may entitle such Agency to terminate such Borrower, which breach, default
or non-compliance has not been satisfactorily cured or remedied within ten (10) Business Days of the receipt by such Borrower of
such notice, or such lesser time as Lender believes is necessary to protect its interest and provides Borrowers with written notice
thereof, as the case may be, the Lender may by written notice to the Borrowers, terminate the Facility and declare all Loans and
all other Obligations to be immediately due and payable.

 

Section 8.03.     
Collection Account; Application of Proceeds.

 

(a)           Collection Account. Prior to the Closing Date, the Borrowers and the Lender shall have established at Bank, in the
name of the Lender, a non-interest bearing segregated special purpose trust account (such account being herein called the “Collection
Account”). The Lender will maintain the Collection Account only with a bank acceptable to the Lender. Each Borrower shall
or shall cause the Subservicer to deposit all Collections received by it into the Collection
Account within two (2) Business Days of receipt thereof.

 

(b)           Distributions Prior to an Event of Default. So long as no Event of Default has occurred and is continuing hereunder,
each Borrower may withdraw amounts on deposit in the Collection Account at any time.

 

(c)           Distributions After an Event of Default. The Lender may, at any time and without notice to, or consent from, any
Borrower, transfer, or direct the transfer of, funds from the Collection Account to satisfy any Borrower’s obligations under
the Facility Documents if an Event of Default shall have occurred and be continuing.

 

(d)           On each Business Day during which an Event of Default has occurred and is continuing hereunder, the Lender shall apply Collections
in the following order to pay:

 

(i)          to the Lender, any fees due pursuant to the terms hereof;

 

(ii)         to the Lender or any Indemnified Party an amount equal to any other amounts (including the Outstanding Aggregate Loan Amount)
then due to such Persons pursuant to this Agreement that have not been paid by the Borrowers (and to the extent that there are
insufficient funds to pay all of the foregoing amounts, such amount shall be distributed to the foregoing parties, pro rata in
accordance with the amounts due to such parties); and

 

(iii)        any remaining amounts to the Borrowers by transferring such amount to the account specified in writing by the Borrowers.

 

    	 	30	 

     

    

 

ARTICLE
IX

ASSIGNMENT

 

Section 9.01.     
Restrictions on Assignments. No Borrower shall assign its rights hereunder or any interest herein without the prior
written consent of the Lender. The Lender may assign any or all of its rights and, with the Borrowers’ prior written consent
(not to be unreasonably withheld or delayed), its obligations, under this Agreement, under any Loan pursuant to this Agreement
or under the other Facility Documents, to any other entity; provided that notwithstanding anything herein to the contrary,
no Borrower shall be subject to any increased costs or expenses as a result of such assignment made without Borrowers’ consent.

 

Section 9.02.     
Evidence of Assignment; Endorsement on Note. The Lender hereby agrees that it shall endorse the Note to reflect any
assignments made pursuant to this Article IX or otherwise.

 

Section 9.03.     
Rights of Assignee. Upon Lender’s assignment of all of its rights and obligations hereunder, under the Note
and under the other Facility Documents to an assignee in accordance with Section 9.01, such assignee shall have all
such rights and obligations of the Lender as set forth in such assignment or delegation, as applicable, and all references to the
Lender in this Agreement or any Facility Document shall be deemed to apply to such assignee to the extent of such interest. If
any interest in any Facility Document is transferred to any assignee which is organized under the laws of any jurisdiction other
than the United States or any state thereof, the transferor Lender shall cause such assignee, concurrently with the effectiveness
of such transfer, to comply with the provisions of Section 3.02.

 

Section 9.04.     
Permitted Participants; Effect. The Lender may, in the ordinary course of its business and in accordance with applicable
law, at any time (and from time to time) sell to one or more banks or other entities (each a “Participant”)
participating interests in any Loan owing to the Lender, any Note held by the Lender, any Available Facility Amount of the Lender,
or any other interest of the Lender under this Agreement or the other Facility Documents. In the event of any such sale by the
Lender of a participating interest to a Participant, (i) the Lender’s obligations hereunder and under the other Facility
Documents shall remain unchanged; (ii) the Lender shall remain solely responsible to the Borrowers for the performance of
such obligations; and (iii) the Lender shall remain the owner of its Loans and the holder of any Note issued to it in evidence
thereof for the purposes under the Loan Documents. All amounts payable by the Borrowers under this Agreement shall be determined
as if the Lender had not sold such participating interests. The Borrowers and the Lender shall continue to deal solely and directly
with each other in connection with the Lender’s rights and obligations under the Facility Documents.

 

    	 	31	 

     

    

 

Section 9.05.     
Voting Rights of Participants. The Lender shall retain the sole right to approve, without the consent of any Participant,
any amendment, modification or waiver of any provision of the Facility Documents other than any amendment, modification, or waiver
with respect to any Loan or Available Facility Amount in which such Participant has an interest which forgives principal, interest,
or fees or reduces the interest rate or fees payable with respect to any such Loan or Available Facility Amount, extends the Wind
Down Date, postpones any date fixed for any regularly scheduled payment of principal of, or interest or fees on, any such Loan
or Available Facility Amount or releases all or substantially all of the Collateral (other than as expressly permitted pursuant
to the Facility Documents).

 

ARTICLE
X

INDEMNIFICATION

 

Section 10.01. 
Indemnities by the Borrowers. Without limiting any other rights which any such Person may have hereunder or under
applicable law, the Borrowers jointly and severally hereby agree to indemnify the Lender, its Affiliates, successors, permitted
transferees and assigns and all officers, directors, shareholders, controlling persons, employees and agents of any of the foregoing
(each an “Indemnified Party”), forthwith on demand, from and against any and all damages, losses, claims, liabilities
and related costs and expenses, including attorneys’ fees and disbursements (all of the foregoing being collectively referred
to as “Indemnified Amounts”) awarded against or incurred by any of them arising out of or as a result of this
Agreement, the other Facility Documents, or any transaction contemplated hereby or thereby excluding, however, (a) Indemnified
Amounts to the extent a court of competent jurisdiction determines that they resulted from gross negligence, bad faith or willful
misconduct on the part of such Indemnified Party, (b) in the event that the Lender has assigned its rights or delegated its
obligations in respect of this Agreement, and the Indemnified Amounts with respect to such assignee exceed the Indemnified Amounts
that would otherwise have been payable by the Borrowers to the Lender, the amount of such excess, (c) taxes expressly excluded
from Taxes in Section 3.02(a) above (other than any such Taxes that are incremental and arise solely by reason of a
breach by a Borrower of its obligations under this Agreement), and (d) any lost profits or indirect, exemplary, punitive or
consequential damages of any Indemnified Party. In any suit, proceeding or action brought by the Lender in connection with any
Collateral for any sum owing thereunder, or to enforce any provisions of any Collateral, the Borrowers, jointly and severally,
will save, indemnify and hold the Lender harmless from and against all expense, loss or damage suffered by reason of any defense,
set-off, counterclaim, recoupment or reduction or liability whatsoever of the account debtor or obligor thereunder, arising out
of a breach by a Borrower of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any
time owing to or in favor of such account debtor or obligor or its successors from such Borrower. The Borrowers also agree to reimburse
the Lender as and when billed by the Lender for all the Lender’s out-of-pocket costs and expenses incurred in connection
with the enforcement or the preservation of the Lender’s rights under this Agreement, the Note, any other Facility Document
or any transaction contemplated hereby or thereby, including without limitation the fees and disbursements of its counsel. The
Borrowers hereby acknowledge that, notwithstanding the fact that the Note is secured by the Collateral, the obligation of each
Borrower under the Note is a recourse obligation of each Borrower. Under no circumstances shall any Indemnified Party be liable
to a Borrower for any lost profits or indirect, exemplary, punitive or consequential damages.

 

    	 	32	 

     

    

 

Section 10.02. 
General Provisions. If for any reason the indemnification provided above in Section 10.01 (and subject
to the limitations on indemnification contained therein) is unavailable to an Indemnified Party or is insufficient to hold an Indemnified
Party harmless on the basis of public policy, then the Borrowers shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative
benefits received by such Indemnified Party on the one hand and the Borrowers on the other hand but also the relative fault of
such Indemnified Party as well as any other relevant equitable considerations.

 

The provisions of
this Article X shall survive the termination of this Agreement and the payment of the Obligations.

 

ARTICLE
XI

MISCELLANEOUS

 

Section 11.01. 
Amendments, Etc. Neither this Agreement nor any provision hereof may be amended, supplemented, or modified except
pursuant to an agreement or agreements in writing entered into by the Borrowers and the Lender.

 

Section 11.02. 
Notices, Etc. Except as provided herein, all notices required or permitted by this Agreement shall be in writing
(including without limitation by Electronic Transmission, email or facsimile) and shall be effective and deemed delivered only
when received by the party to which it is sent; provided that notices of Events of Default and exercise of remedies or under Section 8.02
shall be sent via overnight mail and by electronic transmission. Any such notice shall be sent to a party at the address, electronic
mail or facsimile transmission number set forth on Schedule 11.02 or to such other address, e-mail address or facsimile
number as either party may notify to the others in writing from time to time.

 

Section 11.03. 
No Waiver; Remedies. No failure on the part of the Lender to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

 

Section 11.04. 
Binding Effect; Assignability. This Agreement shall be binding upon and inure to the benefit of the Borrowers and
the Lender, and their respective successors and assigns, provided, however, that nothing in the foregoing shall be
deemed to authorize any assignment not permitted in Section 9.01.

 

    	 	33	 

     

    

 

Section 11.05. 
GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW, WHICH BY ITS TERMS APPLIES TO THIS AGREEMENT). EACH PARTY HERETO HEREBY SUBMITS TO THE NON-EXCLUSIVE GENERAL JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA
FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT
IN SUCH A COURT IN THE BOROUGH OF MANHATTAN AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN
AN INCONVENIENT FORUM. EACH PARTY HERETO HEREBY CONSENTS TO PROCESS BEING SERVED IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT
TO THIS AGREEMENT, OR ANY DOCUMENT DELIVERED PURSUANT HERETO BY THE MAILING OF A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL,
POSTAGE PREPAID, RETURN RECEIPT REQUESTED, TO ITS RESPECTIVE ADDRESS SPECIFIED AT THE TIME FOR NOTICES UNDER THIS AGREEMENT OR
TO ANY OTHER ADDRESS OF WHICH IT SHALL HAVE GIVEN WRITTEN OR ELECTRONIC NOTICE TO THE OTHER PARTIES. THE FOREGOING SHALL NOT LIMIT
THE ABILITY OF ANY PARTY HERETO TO BRING SUIT IN THE COURTS OF ANY OTHER JURISDICTION.

 

EACH OF THE PARTIES
HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT.

 

Section 11.06. 
Entire Agreement. This Agreement and the Facility Documents embodies the entire agreement and understanding of the
parties hereto and supersedes any and all prior agreements, arrangements and understanding relating to the matters provided for
herein.

 

Section 11.07. 
Acknowledgement. Each Borrower hereby acknowledges that:

 

(a)          it has been advised by counsel in the negotiation, execution and delivery of this Agreement, the Note and the other Facility
Documents to which it is a party;

 

(b)          the Lender has no fiduciary relationship to such Borrower, and the relationship between such Borrower and the Lender is
solely that of debtor and creditor; and

 

(c)          no joint venture exists among or between the Lender and (i) such Borrower or (ii) the Borrowers collectively.

 

    	 	34	 

     

    

 

Section 11.08. 
Captions and Cross References. The various captions (including, without limitation, the table of contents) in this
Agreement are included for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement.
References in this Agreement to any underscored Section or Exhibit are to such Section or Exhibit of this Agreement,
as the case may be.

 

Section 11.09. 
Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement.

 

Section 11.10. 
Confidentiality. Each party hereto agrees for the benefit of the other party that it will hold any confidential information
received from the other party pursuant to this Agreement or any other Facility Document in strict confidence, as long as such information
remains confidential except for disclosure to (i) its Affiliates, (ii) its legal counsel, accountants, and other professional
advisors or to a permitted assignee or participant, (iii) regulatory officials, (iv) any Person as requested pursuant
to or as required by law, regulation, legal process, or the rules and regulations of any Governmental Authority or stock exchange,
(v) any Person in connection with any legal proceeding to which it is a party, (vi) rating agencies if requested or required
by such agencies in connection with a rating, and (vii) any Agency. The parties agree that this Agreement is confidential
information of the Lender. The Lender also agrees that it will comply with all applicable securities laws with respect to any non-public
information of the type referenced in the preceding sentence in its possession. This Section 11.10 shall survive termination
of this Agreement.

 

Section 11.11. 
Survival. This Agreement shall remain in effect until the Termination Date; provided, however, that no such termination
shall affect Borrowers’ Obligations to Lender at the time of such termination. The obligations of each Borrower under Sections
3.02, 10.01 and 11.10 hereof shall survive the repayment of the Loans and the termination of this Agreement.
In addition, each representation and warranty made, or deemed to be made by a request for a borrowing, herein or pursuant hereto
shall survive the making of such representation and warranty, and the Lender shall not be deemed to have waived, by reason of making
any Loan, any Default that may arise by reason of such representation or warranty proving to have been false or misleading, notwithstanding
that the Lender may have had notice or knowledge or reason to believe that such representation or warranty was false or misleading
at the time such Loan was made.

 

Section 11.12. 
 Set-Off. In addition to any rights and remedies of the Lender provided by this Agreement and by law, the Lender
shall have the right, without prior notice to any Borrower, any such notice being expressly waived by each Borrower to the extent
permitted by applicable law, upon any amount becoming due and payable by any Borrower hereunder (whether at the stated maturity,
by acceleration or otherwise) to set-off and appropriate and apply against such amount any and all Property and 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 Lender
or any Affiliate thereof to or for the credit or the account of such Borrower. Lender may set-off cash, the proceeds of the liquidation
of any Collateral and all other sums or obligations owed by the Lender or its Affiliates to a Borrower against all of such Borrower’s
or any Repurchase Party's obligations to the Lender or its Affiliates under this Agreement with respect to such Borrower or the
Repo Agreement with respect to such Repurchase Party or under any other agreement between the parties or between any Borrower or
any Repurchase Party and any affiliate of the Lender, or otherwise whether or not such obligations are then due, without prejudice
to the Lender’s or its Affiliate’s right to recover any deficiency. Lender agrees promptly to notify Borrowers and
each Repurchase Party after any such set-off and application made by the Lender; provided that the failure to give such notice
shall not affect the validity of such set-off and application.

 

    	 	35	 

     

    

 

Section 11.13. 
Guaranty.

 

(a)          Subject to Section 11.13(h) below, Guarantor hereby unconditionally and irrevocably guarantees to Lender the prompt payment
of the Guaranteed Obligations in full when due (whether at the stated maturity, by acceleration or otherwise). Any such payment
shall be made at such place and in the same currency as such relevant Guaranteed Obligation is payable. This guaranty is a guaranty
of payment and not solely of collection and is a continuing guaranty and shall apply to all Guaranteed Obligations whenever arising.

 

(b)          The obligations of the Guarantor hereunder are absolute and unconditional, irrespective of the value, genuineness, validity,
regularity or enforceability of this Agreement, or any other agreement or instrument referred to herein, to the fullest extent
permitted by Applicable Law, irrespective of any other circumstance whatsoever which might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor. Guarantor agrees that this guaranty may be enforced by Lender without the necessity
at any time of resorting to or exhausting any security or collateral and without the necessity at any time of having recourse to
this Agreement or any other Facility Document or any collateral, if any, hereafter securing the Guaranteed Obligations or otherwise
and Guarantor hereby waives the right to require Lender to proceed against any other Person or to require the Lender to pursue
any other remedy or enforce any other right. Guarantor further agrees that nothing contained herein shall prevent Lender from suing
in any jurisdiction on this Agreement or any other Facility Document or foreclosing its security interest in or Lien on any collateral,
if any, securing the Guaranteed Obligations or from exercising any other rights available to it under this Agreement or any instrument
of security, if any, and the exercise of any of the aforesaid rights and the completion of any foreclosure proceedings shall not
constitute a discharge of Guarantor’s obligations hereunder; it being the purpose and intent of Guarantor that its obligations
hereunder shall be absolute, independent and unconditional under any and all circumstances. Neither Guarantor’s obligations
under this guaranty nor any remedy for the enforcement thereof shall be impaired, modified, changed or released in any manner whatsoever
by reason of the application of the laws of any foreign jurisdiction. Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Guaranteed Obligations and notice of or proof of reliance of by Lender upon this guaranty or
acceptance of this guaranty. The Guaranteed 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. All dealings between Borrowers and Guarantor,
on the one hand, and Lender, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance
upon this guaranty.

 

(c)          Guarantor agrees that (a) all or any part of the security which hereafter may be held for the Guaranteed Obligations, if
any, may be exchanged, compromised or surrendered from time to time; (b) the Lender shall not have any obligation to protect, perfect,
secure or insure any such security interests or Liens which hereafter may be held, if any, for the Guaranteed Obligations or the
properties subject thereto; (c) the time or place of payment of the Guaranteed Obligations may be changed or extended, in whole
or in part, to a time certain or otherwise, and may be renewed, increased or accelerated, in whole or in part; (d) each Borrower
and any other party liable for payment under this Agreement may be granted indulgences generally; (e) any of the provisions of
this Agreement or any other Facility Document may be modified, amended or waived; and (f) any deposit balance for the credit of
any Borrower or any other party liable for the payment of the Guaranteed Obligations or liable upon any security therefor may be
released, in whole or in part, at, before or after the stated, extended or accelerated maturity of the Guaranteed Obligations,
all without notice to or further assent by Guarantor, which shall remain bound thereon, notwithstanding any such exchange, compromise,
surrender, extension, renewal, acceleration, modification, indulgence or release.

 

    	 	36	 

     

    

 

(d)          Guarantor expressly waives to the fullest extent permitted by Applicable Law: (a) notice of acceptance of this guaranty
by the Lender and of all transfers of funds to any Borrower by Lender; (b) presentment and demand for payment or performance of
any of the Guaranteed Obligations; (c) protest and notice of dishonor or of default (except as specifically required in this Agreement)
with respect to the Guaranteed Obligations or with respect to any security therefor; (d) notice of Lender obtaining, amending,
substituting for, releasing, waiving or modifying any Lien, if any, hereafter securing the Guaranteed Obligations, or Lender’s
subordinating, compromising, discharging or releasing such Liens, if any; (e) all other notices to which any Borrower might otherwise
be entitled in connection with the guaranty evidenced by this Section 11.13; and (f) demand for payment under this guaranty.

 

(e)          The obligations of Guarantor under this Section 11.13 shall be automatically reinstated if and to the extent that for any
reason any payment by or on behalf of any Person in respect of the Guaranteed Obligations is rescinded or must be otherwise restored
by any holder of any of the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise,
and Guarantor agrees that it will indemnify Lender on demand for all reasonable and documented costs and out-of-pocket expenses
(including, without limitation, reasonable and documented fees and expenses of counsel) incurred by Lender in connection with such
rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment
constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

 

(f)           Guarantor agrees that, as between Guarantor, on the one hand, and Lender, on the other hand, the Guaranteed Obligations
may be declared to be forthwith due and payable as provided in Section 8.02 (and shall be deemed to have become automatically due
and payable in the circumstances provided in Section 8.02) notwithstanding any stay, injunction or other prohibition preventing
such declaration (or preventing such Guaranteed Obligations from becoming automatically due and payable) as against any other Person
and that, in the event of such declaration (or such Guaranteed Obligations being deemed to have become automatically due and payable),
such Guaranteed Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by Guarantor.

 

(g)          Guarantor hereby agrees that until the payment and satisfaction in full of all Guaranteed Obligations and the expiration
and termination of the this Agreement it shall not exercise any right or remedy arising by reason of any performance by it of its
guarantee in Section 11.13(a), whether by subrogation or otherwise, against a Borrower or any security for any of the Guaranteed
Obligations.

 

    	 	37	 

     

    

 

(h)          Notwithstanding any provision to the contrary contained herein, to the extent the obligations of Guarantor shall be adjudicated
to be invalid or unenforceable for any reason (including, without limitation, because of any Applicable Law relating to fraudulent
conveyances or transfers) then the obligations of Guarantor hereunder shall be limited to the maximum amount that is permissible
under Applicable Law (as now or hereinafter in effect).

 

Section 11.14. 
Amendment and Restatement. The terms and provisions of the Existing LSA shall be amended and restated in their entirety
by the terms and provisions of this Agreement and shall supersede all provisions of the Existing LSA as of the date hereof. From
and after the date hereof, all references made to the Existing LSA in any Facility Document or in any other instrument or document
shall, without more, be deemed to refer to this Agreement. The execution, delivery and effectiveness of this Agreement shall not
operate as a waiver of any power, remedy or right of the Lender, or constitute a waiver of any provision of, or any past noncompliance
with the Existing LSA, or any other documents, instruments and agreements executed or delivered therewith or future noncompliance
with any of the Facility Documents or any other documents, instruments and agreements executed or delivered therewith, and shall
not operate as a consent to any further or other matter under the Facility Documents. Each party hereto agrees and understands
that by entering into and performing its obligations hereunder, this Agreement, as it amends and restates the Existing LSA shall
not constitute a novation, and shall in no way adversely affect or impair the priority of the Lender’s security interest
and lien on the Collateral. PMC and the Guarantor each acknowledge and agree that all obligations of PMC and the Guarantor (including
representations and warranties made, and covenants to be performed, prior to the Closing Date) under the Existing LSA will remain
outstanding and continue in full force and effect, unpaid, unimpaired and undischarged, and all liens created under the Existing
LSA will continue in full force and effect, unimpaired and undischarged having the same perfection and priority for payment and
performance of the obligations of PMC as were in place under the Existing LSA.

 

Section 11.15. 
Joint and Several Liability of the Borrowers. 

 

(a)          Each of PMC
and Holdings shall be jointly and severally liable for the rights, covenants, obligations and warranties and representations of
PMC and Holdings as contained herein and the actions of any Person or third party shall in no way affect such joint and several
liability.

 

(b)          Notwithstanding
the forgoing, each Borrower acknowledges and agrees that a Default or an Event of Default is hereby considered a Default or an
Event of Default by each Borrower.

 

(c)          Each of PMC
and Holdings acknowledges and agrees that the Lender shall have no obligation to proceed against either PMC or Holdings before
proceeding against the other. Each of PMC and Holdings hereby waives any defense to its obligations under this Agreement or any
other Facility Document based upon or arising out of the disability or other defense or cessation of liability of PMC or Holdings
versus the other. A Borrower’s subrogation claim arising from payments to Lender shall constitute a capital investment in
another Borrower (1) subordinated to any claims of Lender and (2) equal to a ratable share of the equity interests in such Borrower.

 

    	 	38	 

     

    

 

Section 11.16. 
Acknowledgement and Consent to Bail-In of EEA Financial Institutions.

 

Notwithstanding
anything to the contrary in this Agreement, any other Facility Document or in any other agreement, arrangement or understanding
among the parties to the Facility Documents, each of the Borrowers and the Guarantor hereby acknowledges that any liability of
any EEA Financial Institution arising under this Agreement or any other Facility Document, to the extent such liability is unsecured,
may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges
and agrees to be bound by:

 

		(i)	the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such
liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

		(ii)	the effects of any Bail-In Action on any such liability, including, if applicable:

	 	(A)	a reduction in full or in
part or cancellation of any such liability;
	 	 	 
		(B)	a conversion of all, or a portion of, such liability into shares or other instruments of ownership
in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred
on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any
such liability under this Agreement or any other Facility Document; or

		(C)	the variation of the terms of such liability in connection with the exercise of the write-down
and conversion powers of any EEA Resolution Authority.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	39	 

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first
above written.

 

Pennymac
Corp., as a Borrower

 

By: /s/ Pamela Marsh

Name: Pamela Marsh

Title: Executive Vice President,
Treasurer

 

 

Pennymac
HOLDINGS, LLC, as a Borrower

 

By: /s/ Pamela Marsh

Name: Pamela Marsh

Title: Executive Vice President,
Treasurer

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST,
as Guarantor

 

By: /s/ Pamela Marsh

Name: Pamela Marsh

Title: Executive Vice President,
Treasurer

 

 

BARCLAYS BANK PLC, as Lender

 

By: /s/ Ellen Kiernan

Name: Ellen Kiernan

Title: Director

 

    	 	40	 

     

    

 

SCHEDULE I

 

DEFINITIONS

 

1.1          Definitions.
As used in this Agreement the following terms have the meanings as indicated:

 

“Acknowledgement
Agreement” means an Acknowledgement Agreement, by and among an Agency, a Borrower and the Lender as secured party, pursuant
to which the Agency acknowledges the security interest granted pursuant to this Agreement of the Lender in the Servicing Rights
related to pools of mortgage loans securitized with such Agency, together with any amendments and addenda thereto.

 

“Advance”
means any P&I Advance, T&I Advance or Corporate Advance.

 

“Advance
Rate” has the meaning assigned to it in the Pricing Side Letter.

 

“Affiliate”
means, with respect to any Person, any other Person which, directly or indirectly, controls, is controlled by, or is under common
control with, such Person. For purposes of this definition, “control” (together with the correlative meanings of “controlled
by” and “under common control with”) means possession, directly or indirectly, of the power (a) to vote
20% or more of the securities (on a fully diluted basis) having ordinary voting power for the directors or managing general partners
(or their equivalent) of such Person, or (b) to direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by contract, or otherwise; provided, however, that in respect of Subservicer,
the term “Affiliate” shall include only Private National Mortgage Acceptance Company, LLC and its wholly owned subsidiaries,
and in respect of a Borrower or Guarantor, the term “Affiliate” shall include only PennyMac Mortgage Investment Trust
and its wholly owned subsidiaries.

 

“Agreement”
has the meaning set forth in the preamble.

 

“Agency”
means Fannie Mae, Freddie Mac or Ginnie Mae.

 

“Agency
Collateral Account” means the account established by PMC for the benefit of Fannie Mae with a bank specified by Fannie
Mae.

 

“Agency
Guide” with respect to (1) Fannie Mae, the Fannie Mae Selling Guide and the Fannie Mae Servicing Guide, as amended
from time to time, (2) Freddie Mac, the Freddie Mac Seller/Servicer Guide, and (3) with respect to Ginnie Mae, the Ginnie
Mae MBS Guide, and in all cases, any other applicable guides published by such Agency and any related announcements, directives
and correspondence issued by such Agency.

 

“Agency
Servicing Rights” means all Servicing Rights with respect to the Agencies.

 

“Ancillary
Income” means all money which is due and payable in connection with each Mortgage Loan other than the Servicing Fee and
specifically including, without limitation, late charge fees, assignment transfer fees, insufficient funds check charges, amortization
schedule fees, interest from escrow accounts and all other incidental fees and charges and any Float Benefit, in each case, to
the extent such amounts are allocable to a Mortgage Loan, specifically excluding Excluded Collateral.

 

    	 	41	 

     

    

 

“Applicable
Law” means as to any Person, any law, treaty, rule or regulation (including the Investment Company Act of 1940, as amended)
or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is subject.

 

“Applicable
Margin” has the meaning assigned to it in the Pricing Side Letter.

 

“Available
Facility Amount” means $200,000,000; provided however that at no time may the Outstanding Aggregate Loan Amount exceed:

 

(A) the Borrowing
Base; or

 

(B) the amount
that, when added to the aggregate principal amounts outstanding under the Repo Agreement, would equal the Maximum Aggregate Purchase
Price (as such term is defined in the Repo Agreement).

 

“Available
Loan Amount” means, on any Business Day, an amount equal to the lesser of (a) (i) the then current Available
Facility Amount minus (ii) the Outstanding Aggregate Loan Amount, and (b) the Borrowing Base (giving effect to all Collateral
to be pledged hereunder on such Business Day).

 

“Bail-In
Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect
of any liability of an EEA Financial Institution.

 

“Bail-In
Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European
Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is
described in the EU Bail-In Legislation Schedule.

 

“Bank”
means City National Bank.

 

“Board”
means the Board of Governors of the Federal Reserve System of the United States of America.

 

“Borrower”
has the meaning set forth in the preamble.

 

“Borrower
Funding Request” means the request to fund a Loan on any Funding Date, substantially in the form of Exhibit 2.03,
delivered by the Borrowers in accordance with Section 2.03(a).

 

“Borrower
Party” means each of the Borrowers and Guarantor.

 

    	 	42	 

     

    

 

“Borrowing
Base” means, as of any date of determination, an amount equal to the aggregate Collateral Value of all Collateral for
Loans that have been and remain pledged to the Lender hereunder.

 

“Borrowing
Base Deficiency” has the meaning set forth in Section 2.08(b).

 

“Borrowing
Base Report” means the borrowing base report, substantially in a format agreed upon between Borrowers and Lender, delivered
by the Lender in accordance with Section 2.04(b).

 

“Borrowing
Base Shortfall Day” has the meaning set forth in Section 2.08(b).

 

“Business
Day” means any day other than (i) a Saturday or Sunday or (ii) a day upon which the New York Stock Exchange
or the Federal Reserve Bank of New York is closed.

 

“Capital
Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock
of a corporation, any and all equivalent ownership interests, including, without limitation, limited and general partnership interests,
in a person (other than a corporation) and any and all warrants, rights or options to purchase any of the foregoing.

 

“Change
in Law” means a change in any Applicable Law applicable to the Facility Documents that would have an adverse effect,
as determined by Lender in its sole discretion, on Lender’s exercise of remedies following an Event of Default.

 

“Change
of Control” (i) for each Borrower (a) any transaction or event as a result of which the Guarantor ceases to own, beneficially
or of record, more than 50% of the stock of PMC or 100% of the certificates representing the beneficial ownership of Holdings,
(b) the sale, transfer, or other disposition of all or substantially all of a Borrower’s assets (excluding any such action
taken in connection with any securitization transaction or routine sales of Mortgage Loans), or (c) the consummation of a merger
or consolidation of a Borrower 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 equity outstanding immediately after such merger, consolidation or such
other reorganization is owned by persons who were not equityholders of such Borrower immediately prior to such merger, consolidation
or other reorganization and (ii) for the Guarantor (a) the sale, transfer, or other disposition of all or substantially all of
Guarantor’s assets (excluding any such action taken in connection with any securitization transaction or routine sales of
Mortgage Loans) or (b) the consummation of a merger or consolidation of 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 equity outstanding
immediately after such merger, consolidation or such other reorganization is owned by persons who were not equityholders of the
Guarantor immediately prior to such merger, consolidation or other reorganization.

 

“Closing
Date” means the date on which all of the conditions set out in Section 5.01 are satisfied.

 

“Collateral”
has the meaning set forth in Section 4.01.

 

    	 	43	 

     

    

 

“Collateral
Reporting Date” has the meaning set forth in Section 2.03(b).

 

“Collateral
Value” means, for purposes of determining the value of the Borrowing Base from time to time, with respect to the Eligible
Servicing Rights, (a) (i) the Advance Rate for Eligible Servicing Rights, multiplied by (ii) the MSR Value of the Eligible
Servicing Rights as determined by the Lender in good faith, minus (b) any outstanding repurchase and indemnity obligations
under the related Servicing Contract that are due and payable by the Borrowers, but have not yet been paid by the Borrowers.

 

“Collection
Account” means the account established by the Borrowers in accordance with Section 8.03(a). 

 

“Collection
Account Control Agreement” means that certain Amended and Restated Collection Account Control Agreement, to be entered
into by and among the Borrowers, the Lender and Bank, with respect to the Collection Account, in form and substance acceptable
to the Lender, as the same may be amended, modified or supplemented from time to time.

 

“Collections”
means any Servicing Fees, any excess servicing or subservicing rights or retained yield, and any Ancillary Income that PMC, as
servicer and Holdings, as an excess spread purchaser, are entitled to receive pursuant to the Servicing Contracts and the Master
Spread Acquisition and MSR Servicing Agreement, as applicable.

 

“Compliance
Certificate” means a certificate substantially in the form of Exhibit 7.01 hereto or other form reasonably acceptable
to the Lender.

 

“Corporate
Advance” means, collectively, (a) any advance (other than those described in clause (b) below) made by a Borrower
as servicer pursuant to the Servicing Contracts to inspect, protect, preserve or repair properties that secure defaulted Mortgage
Loans or that have been acquired through foreclosure or deed in lieu of foreclosure or other similar action pending disposition
thereof, or for similar or related purposes, including, but not limited to, necessary legal fees and costs expended or incurred
by a Borrower as servicer in connection with foreclosure, bankruptcy, eviction or litigation actions with or involving Mortgagors
on defaulted Mortgage Loans, as well as costs to obtain clear title to such a property, to protect the priority of the lien created
by a Mortgage Loan on such a property, and to dispose of properties taken through foreclosure or by deed in lieu thereof or other
similar action, (b) any advance made by a Borrower as servicer pursuant to the Servicing Contracts to foreclose or undertake
similar action with respect to a Mortgage Loan, and (c) any other out of pocket expenses incurred by a Borrower as servicer
pursuant to the Servicing Contracts (including, for example, costs and expenses incurred in loss mitigation efforts and in processing
assumptions of Mortgage Loans), to the extent such advances are reimbursable pursuant to the Servicing Contracts.

 

“Custodial
File” means with respect to any Mortgage Loan, a file pertaining to such Mortgage Loan being held by the Custodian that
contains the mortgage documents pertaining to such Mortgage Loan.

 

“Custodian”
means any financial institution that holds documents for any of the Mortgage Loans on behalf of an Agency.

 

    	 	44	 

     

    

 

“Default”
means an Event of Default or an Unmatured Event of Default.

 

“Default
Rate” means, with respect to any Loan for any Interest Period, and any late payment of fees or other amounts due hereunder,
the LIBOR Rate for the related Interest Period (or for all successive Interest Periods during which such fees or other amounts
were delinquent), plus 5.0% per annum.

 

“Disposition”
means, with respect to any Person, any sale or other whole or partial conveyance of all or any portion of such Person’s Property,
or any direct or indirect interest therein to a third party, including the granting of any purchase options, rights of first refusal,
rights of first offer or similar rights in respect of any portion of such assets or the subjecting of any portion of such assets
to restrictions on transfer.

 

“Dollars”
means dollars in lawful money of the United States of America.

 

“EEA Financial
Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject
to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an
institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which
is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision
with its parent. For the avoidance of doubt, EEA Financial Institution shall include, but shall not be limited to, the Lender.

 

“EEA Member
Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution
Authority” means any public administrative authority or any person entrusted with public administrative authority of
any EEA Member Country (including any delegatee) having responsibility for the resolution of any EEA Financial Institution.

 

“Electronic
File” means any electronic file, in form and substance reasonably acceptable to the Lender and containing the information
agreed to between the Borrowers and the Lender; delivered by a Borrower to the Lender on a Funding Notice Date or Collateral Reporting
Date pursuant to Section 2.03(a) or 2.03(b) and reflecting those Mortgage Loans related to Pledged Servicing
Rights as of the close of business on such Funding Notice Date; provided, however, that with regard to the Electronic
File delivered in connection with a Collateral Reporting Date, such Electronic File shall reflect information as of the close of
business on the last Business Day of the preceding calendar month.

 

“Eligible
Seller” means a Person who sold Mortgage Loans to a Borrower, which Mortgage Loans such Borrower subsequently resold
to another party or securitized, and retained the servicing rights and obligations with respect thereto under the Servicing Contracts.

 

“Eligible
Servicing Rights” means, mortgage servicing rights owned a Borrower that are either (i) appurtenant to mortgage
loans that have been sold to Fannie Mae or otherwise delivered to Fannie Mae for inclusion in a securitization by Fannie Mae, and
are serviced by such Borrower, (ii) appurtenant to mortgage loans (1) which were, but are no longer, pooled in securitizations
by Fannie Mae, (2) which are currently owned by Fannie Mae in portfolio and (3) for which such Borrower is acting as
the servicer, (iii) appurtenant to mortgage loans owned by such Borrower and not subject to any lien or other encumbrance,
which mortgage loans are eligible for pooling with Fannie Mae, or (iv) appurtenant to mortgage loans that are serviced by
such Borrower and are either securitized in a non-agency securitization with respect to which the Lender has approved the related
PSA or held in whole loan format and either owned by such Borrower or servicing pursuant to a servicing agreement approved by the
Lender; provided that all such mortgage loans shall be “qualified mortgages” or otherwise approved by the Lender for
inclusion. In addition, all Eligible Servicing Rights must comply with the eligibility criteria set out in Schedule 6.02.
Eligible Servicing Rights shall include any Excess Servicing Fees sold by PMC to Holdings pursuant to the terms of the Master Spread
Acquisition and MSR Servicing Agreement.

 

    	 	45	 

     

    

 

“EU Bail-In
Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor
person), as in effect from time to time, at http://www.lma.eu.com/.

 

“Event
of Default” has the meaning set forth in Section 8.01.

 

“Excess
Servicing Fees” means the excess servicing fees sold by PMC to Holdings pursuant to the terms of the Master Spread Acquisition
and MSR Servicing Agreement.

 

“Excluded
Collateral” means all right, title and interest of the Borrowers, whether now owned or hereafter acquired, in, to and
under its rights to reimbursement for all Advances made under the Servicing Contracts.

 

“Facility”
means the loan facility provided to the Borrowers by the Lender pursuant to this Agreement.

 

“Facility
Documents” means this Agreement, the Note, the Collection Account Control Agreement, the Pricing Side Letter, the Servicing
Contracts, each Acknowledgement Agreement, the Subservicer Acknowledgment Letter, the Subservicing Agreement, the Master Netting
Agreement and all notices, certificates, financing statements and other documents to be executed and delivered by the Borrower
in connection with the transactions contemplated by this Agreement. For the avoidance of doubt, the Program Documents (as defined
in the Repo Agreement) shall not be deemed Facility Documents.

 

“Fannie
Mae” means The Federal National Mortgage Association, also known as Fannie Mae, or any successor thereto.

 

“Fannie
Mae Acknowledgment Agreement” means any Acknowledgment Agreement in respect of any Fannie Mae Servicing Rights.

 

“Fannie
Mae Servicing Rights” means all Servicing Rights with respect to mortgage loans serviced by a Borrower for Fannie Mae.

 

“Float
Benefit” means the net economic benefit resulting from investments of funds representing escrow and custodial deposits
held for the account of the servicer or subservicer, or the related Agency relating to the Mortgage Loans.

 

    	 	46	 

     

    

 

“Foreign
Lender” means any successor or assignee of Lender that is organized under the laws of a jurisdiction other than that
in which a Borrower is resident for tax purposes. For purposes of this definition, the United States of America, each State and
Commonwealth thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

 

“Freddie
Mac” means The Federal Home Loan Mortgage Corporation, also known as Freddie Mac, or any successor thereto.

 

“Funding
Date” means the date of any Loan advance hereunder as provided in Section 2.03 hereof.

 

“Funding
Notice Date” means the date on which a Borrower shall deliver a Borrower Funding Request, which shall be (i) at
least two (2) Business Days prior to the date which such Borrower has requested as a Funding Date as provided therein, or (ii) if
a Borrower Funding Request relates to new Collateral, at least five (5) Business Days prior to the date which such Borrower
has requested as a Funding Date as provided therein.

 

“GAAP”
means United States Generally Accepted Accounting Principles inclusive of, but not limited to, applicable statements of Financial
Accounting Standards issued by the Financial Accounting Standards Board, its predecessors and successors and SEC Staff Accounting
Guidance as in effect from time to time applied on a consistent basis.

 

“Ginnie
Mae” means The Government National Mortgage Association, also known as Ginnie Mae, or any successor thereto.

 

“Governmental
Action” means all permits, authorizations, registrations, consents, approvals, waivers, exceptions, variances, orders,
decrees, licenses, exemptions, publications, filings, notices to and declarations of or with, or required by, any Governmental
Authority, or required by any Legal Requirement.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof, any municipality and any
entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“Guarantor”
shall mean PennyMac Mortgage Investment Trust, its successors and permitted assigns.

 

“Guaranteed
Obligations” means, without duplication, all of the Obligations of each Borrower to Lender, whenever arising, under this
Agreement or any other Facility Document (including, but not limited to, obligations with respect to principal, interest and fees).

 

“HUD”
means the United States Department of Housing and Urban Development, or any successor thereto.

 

    	 	47	 

     

    

 

“Indebtedness”
means, with respect to any Person as of any date of determination: (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
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
and paid within ninety (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) in respect of letters of credit or similar instruments issued for
account of such Person; (e) capital lease obligations; (f) payment obligations under repurchase agreements, single seller
financing facilities, warehouse facilities and other lines of credit; (g) indebtedness of others guaranteed on a recourse
or partial recourse basis by such Person; (h) all obligations incurred in connection with the acquisition or carrying of fixed
assets; (i) indebtedness of general partnerships of which such Person is a general partner; and (j) any other known or
contingent liabilities of such Person.

 

“Indemnified
Amounts” has the meaning set forth in Section 10.01.

 

“Indemnified
Party” has the meaning set forth in Section 10.01.

 

“Initial
Borrower Funding Request” means the request to fund the Loan on the Initial Funding Date, substantially in the form of
Exhibit 2.03, delivered in accordance with Section 2.03(a), that is current as of the end of the previous calendar
month.

 

“Initial
Borrowing Base Report” means the borrowing base report, substantially in the form agreed to between the Borrowers and
the Lender, delivered by the Lender in accordance with Section 2.04(a) based on the initial Electronic File.

 

“Initial
Funding Date” means the Funding Date on which the first Loan is made pursuant to this Agreement, as specified in the
Initial Borrower Funding Request.

 

“Insolvency
Law” means any bankruptcy, reorganization, moratorium, delinquency, arrangement, insolvency, readjustment of debt, dissolution
or liquidation law of any jurisdiction in effect at any time during the term of this Agreement.”

 

“Interest
Period” means, for any Loan, (i) an initial period beginning on the Funding Date for such Loan and ending on the
last day of the calendar month in which such Funding Date occurs; and (ii) subsequent consecutive periods thereafter, beginning
on the first day of each subsequent calendar month and ending on the earlier of (x) the last day of the same calendar month
in which such Interest Period began and (y) the Wind Down Date; and (iii) subsequent consecutive periods thereafter,
beginning on the first day following, initially, the Wind Down Date, and thereafter, each Loan Repayment Date, and ending on the
earlier of (x) the next following Loan Repayment Date and (y) the date on which the amount of all Obligations have been
reduced to zero.

 

“Interest
Rate” means, with respect to all Loans, the LIBOR Rate plus the Applicable Margin.

 

“Investment
Company Act” means the Investment Company Act of 1940, as amended, together with the rules and regulations promulgated
thereunder.

 

    	 	48	 

     

    

 

“Lender”
means Barclays Bank PLC.

 

“LIBOR
Rate” means for each day, the rate (adjusted for statutory reserve requirements for eurocurrency liabilities) for eurodollar
deposits for a period equal to one month appearing on Bloomberg Screen US 0001M Page or if such rate ceases to appear on Bloomberg
Screen US 0001M Page, or any other service providing comparable rate quotations at approximately 11:00 a.m., London time,
on the applicable date of determination, or such interpolated rate as determined by the Lender.

 

“Lien”
means with respect to any property or asset of any Person (a) any mortgage, lien, pledge, charge or other security interest
or encumbrance of any kind in respect of such property or asset or (b) the interest of a vendor or lessor arising out of the
acquisition of or agreement to acquire such property or asset under any conditional sale agreement, lease purchase agreement or
other title retention agreement, and in each case, other than an Agency’s rights and interests in the related Agency Servicing
Rights.

 

“Loan Repayment
Date” means, (i) initially, the date that is thirty (30) days after the Wind Down Date, and (ii) thereafter,
each date that is thirty (30) days after the immediately preceding Loan Repayment Date.

 

“Loans”
has the meaning set forth in Section 2.01.

 

“Margin
Call” has the meaning set forth in Section 2.08.

 

“Master
Agreements” has the meaning provided in the Fannie Mae Guides.

 

“Master
Netting Agreement” means that certain Master Netting Agreement, dated as of September 14, 2015 by and among the PMC,
the Guarantor, Barclays Capital Inc. and the Lender, as amended.

 

“Master
Spread Acquisition and MSR Servicing Agreement” means that certain Master Spread Acquisition and MSR Servicing Agreement
dated as of January 22, 2016 by and between PMC, as seller and Holdings, as purchaser.

 

“Material
Adverse Effect” means a material adverse effect on (a) the property, business, operations, or financial condition
of Borrower, Subservicer or Guarantor, (b) the ability of Borrower, Subservicer or Guarantor to perform its obligations under
any of the Facility Documents to which it is a party, (c) the validity or enforceability of any of the Facility Documents,
(d) the rights and remedies of Lender under any of the Facility Documents, (e) the Collateral, or (f) the validity,
perfection, priority or enforceability of Lender’s security interest in the Collateral.

 

“Maturity
Date” means September 13, 2016.

 

“MBS”
means mortgage backed securities.

 

“MBS Trust”
means any of the trusts or trust estates in which the Mortgage Loans being serviced by a Borrower pursuant to the Servicing Contracts
are held by the related MBS Trustee.

 

    	 	49	 

     

    

 

“MBS Trustee”
means a trustee or indenture trustee for an MBS Trust.

 

“Monthly
Settlement Date” means, (i) initially, the earliest to occur of (a) the fifth (5th) Business Day
of each calendar month, commencing February 2016, and (b) the Wind Down Date, and (ii) following the occurrence of the
Wind Down Date, each Loan Repayment Date (or, if such day is not a Business Day, the following Business Day).

 

“Moody’s”
means Moody’s Investors Service, Inc. or its successor in interest.

 

“Mortgage”
means a mortgage, mortgage deed, deed of trust, or other instrument creating a first lien on or first priority security interest
in an estate in fee simple in real property securing a Mortgage Note including any riders, assumption agreements or modifications
relating thereto.

 

“Mortgage
File” means, with respect to any Mortgage Loan, a file or files pertaining to such Mortgage Loan that contains the mortgage
documents pertaining to such Mortgage Loan including any mortgage documents pertaining to such Mortgage Loan required by the Agency
Guides.

 

“Mortgage
Loan” means the mortgage loans listed on the Relevant Electronic File (as provided to the Lender pursuant to Section 2.03(a)
or 2.03(b)).

 

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

 

“Mortgage
Selling and Servicing Contract” means that certain Mortgage Selling and Servicing Contract, dated as of September 23,
2010, as amended, supplemented and assigned, by and between PMC and Fannie Mae.

 

“Mortgagor”
means the obligor on a Mortgage Note.

 

“MSR Value”
means, with respect to (i) any Eligible Servicing Right included in the Borrowing Base the fair value ascribed to such asset
by the Lender in its sole good faith discretion, taking into account any outstanding obligations owed by the applicable Borrower
to an Agency, as applicable, as marked to market as often as daily, (ii) a Servicing Right which is not an Eligible Servicing
Right included in the Borrowing Base, zero. The Lender’s good faith determination of MSR Value shall be conclusive upon the
parties, absent manifest error on the part of the Lender. Each Borrower acknowledges that the Lender’s determination of MSR
Value is for the limited purpose of determining Collateral Value for lending purposes hereunder without the ability to perform
customary purchaser’s due diligence and is not necessarily equivalent to a determination of the fair market value of the
Eligible Servicing Rights achieved by obtaining competing bids. For the purpose of determining the related MSR Value, the Lender
shall have the right to use either a Borrower’s valuation of the Eligible Servicing Rights delivered pursuant to Section 2.04
herein or the Lender’s valuation, or both. Subsequently, Lender shall have the right to reasonably request at any time from
Borrowers, an updated valuation for each Eligible Servicing Right, in a form acceptable to Lender in its sole discretion; provided
that the Lender shall not be obligated to rely on either valuation and shall have the right to determine the MSR Value of the Eligible
Servicing Rights at any time in its sole discretion. The MSR Value shall be deemed to be zero with respect to each Loan for which
such valuation is not provided within a reasonable time.

 

    	 	50	 

     

    

 

“Note”
means the promissory note of the Borrowers issued to the Lender, in substantially the form of Exhibit 2.02(a), as amended
from time to time, and any replacement thereof or substitution therefor.

 

“Obligations”
means the Outstanding Aggregate Loan Amount, all accrued and unpaid interest thereon and all other amounts payable by a Borrower
to the Lender pursuant to this Agreement, the Note or any other Facility Document.

 

“Opinion
of Counsel” means a written opinion of counsel, reasonably acceptable to each Person to whom such opinion is addressed.

 

“Other
Taxes” has the meaning set forth in Section 3.02.

 

“Outstanding
Aggregate Loan Amount” means, at any time, the aggregate principal amount of the Loans funded by the Lender, minus the
aggregate amount of payments received by the Lender prior to such time and applied to reduce the principal amount of the Loans.

 

“P&I
Advance” means any advance disbursed by a Borrower as servicer pursuant to any Servicing Contract of delinquent interest
and/or principal on the related Mortgage Loans.

 

“Participant”
has the meaning set forth in Section 9.04.

 

“Person”
means any individual, corporation, estate, partnership, limited liability company, limited liability partnership, joint venture,
association, joint-stock company, business trust, trust, unincorporated organization, government or any agency or political subdivision
thereof, or other entity of a similar nature.

 

“Pledged
Servicing Rights” means any Eligible Servicing Rights a security interest in which has been granted to the Lender pursuant
to this Agreement (it being understood that the Servicing Rights pledged will be identified by pool number in the Electronic Files),
which shall include any Excess Servicing Fees sold by PMC to Holdings pursuant to the terms of the Master Spread Acquisition and
MSR Servicing Agreement.

 

“Pool”
means a group of Mortgage Loans, which are the security for a mortgage-backed security issued or guaranteed by an Agency.

 

“Prepayment
Notice” means a notice substantially in the form of Exhibit 2.08(b).

 

“Pricing
Side Letter” means that certain Amended and Restated Loan and Security Agreement Pricing Side Letter, dated as of the
date hereof, among the Borrowers, the Guarantor and the Lender, entered into in connection with this Agreement, as the same may
be amended, modified or supplemented from time to time.

 

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

 

    	 	51	 

     

    

 

“PSA”
means a pooling and servicing agreement or similar agreement related to a non-agency securitization.

 

“Recourse
Servicing Obligations” means with respect to any mortgage loan, (a) any obligation or liability (actual or contingent)
of the servicer or subservicer in respect of such Mortgage Loan to indemnify the relevant Agency for any losses incurred in respect
of any Mortgage Loan that was determined at the time of sale to have been ineligible for sale to the applicable Agency due to a
breach of one or more representations and warranties but accepted for purchase subject to any waiver and indemnity obligations,
or (b) any other obligations described from time to time as being sold “with recourse” as such term (or terms
of similar meaning) are defined in the relevant Agency Guide, as amended or supplemented from time to time, and any successor publications
thereto having the same general contents and purpose.

 

“Related
Escrow Account Balances” means the balance, on the related Funding Date, of any escrow or impound accounts maintained
by a Borrower which relate to any Mortgage Loan, including, without limitation, items escrowed for mortgage insurance, property
taxes (either real or personal), hazard insurance, flood insurance, ground rents, or any other escrow or impound items required
by any Mortgage Note or Mortgage, reduced by any unpaid real estate taxes or insurance premiums required to be paid by such Borrower,
with respect to which amounts have been escrowed by the related Mortgagor.

 

“Related
Principal and Interest Custodial Accounts” means all principal and interest custodial accounts maintained by PMC that
relate to any Mortgage Loan or Pool.

 

“Relevant
Electronic File” means, on any Business Day, the most recently delivered Electronic File that was delivered in accordance
with Section 2.03(a) or 2.03(b) and relates to Eligible Servicing Rights that constitute Collateral hereunder.

 

“Repayment
Notice” means a notice substantially in the form of Exhibit 2.08(a).

 

“Repo Agreement”
means the Master Repurchase Agreement, among the Subservicer, the Guarantor, PMC and Lender, dated September 14, 2015, as amended.

 

“Repurchase
Party” means any of PMC or the Guarantor.

 

“Requirements
of Law” means, with respect to any Person or any of its property, the certificate of incorporation or articles of association
and by-laws, certificate of limited partnership, limited partnership agreement or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation, or determination of any arbitrator or Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject, whether
Federal, state or local (including, without limitation, usury laws, the Federal Truth in Lending Act and retail installment sales
acts).

 

“Responsible
Officer” means (a) with respect to a Borrower, the chief executive officer, president, chief financial officer,
treasurer, assistant vice president, assistant treasurer, secretary or assistant secretary of such Borrower, or any other officer
having substantially the same authority and responsibility; provided, that with respect specifically to the obligations
of the Borrowers set forth in Section 7.01(h) hereof, only the chief financial officer, treasurer, assistant treasurer,
or comptroller of such Borrower shall be deemed to be a Responsible Officer; and (b) with respect to the Lender, a lending
officer charged with responsibility for the day to day management of the relationship of such institution with the Borrower.

 

    	 	52	 

     

    

 

“Restricted
Payment” means with respect to any Person, collectively, all dividends or other distributions of any nature (cash, securities,
assets or otherwise), and all payments, by virtue of redemption or otherwise, on any class of equity securities (including, warrants,
options or rights therefor) issued by such Person, which may hereafter be authorized or outstanding and any distribution in respect
of any of the foregoing, whether directly or indirectly other than payments made in the ordinary course solely for the purpose
of originating, servicing, subservicing and/or administrating Mortgage Loans.

 

“S&P”
means Standard & Poor’s, a division of The McGraw Hill Companies, Inc.

 

“Schedules
of Mortgages” has the meaning provided in the Agency Guides.

 

“Servicing
Contracts” means the Mortgage Selling and Servicing Contracts between PMC and Fannie Mae, the applicable Master Agreements
between PMC and Fannie Mae, and the applicable Schedules of Mortgages (Form 2005), in each case as such agreements may be amended,
amended and restated, supplemented or otherwise modified from time to time.

 

“Servicing
Fee” means the total amount of the fee payable to the Subservicer as compensation for subservicing and administering
the Mortgage Loans.

 

“Servicing
Rights” means with respect to each Mortgage Loan, all of each Borrower’s right, title and interest in, to and under
the related Servicing Contracts, whether now or hereafter existing, acquired or created, whether or not yet accrued, earned, due
or payable, as well as all other present and future right and interest under such Servicing Contracts, including, without limitation,
the right (i) to receive the Servicing Fee income payable after the related Funding Date (including without limitation, any
Uncollected Fees), (ii) any and all Ancillary Income received after the related Funding Date, (iii) to hold and administer
the Related Escrow Account Balances, (iv) to hold and administer, in accordance with the applicable Agency Guides, the Related
Principal and Interest Custodial Account, the Custodial File, and the Mortgage File arising from or connected to the servicing
or subservicing of such Mortgage Loan under this Agreement and (v) all proceeds, income, profits, rents and products of any
of the foregoing including, without limitation, all of such Borrower’s rights to proceeds of any sale or other disposition
of the Servicing Rights, but with respect to clauses (i) - (iv) above, specifically excluding any Excluded Collateral.
Servicing Rights shall include any Excess Servicing Fees sold by PMC to Holdings pursuant to the terms of the Master Spread Acquisition
and MSR Servicing Agreement.

 

“Subservicer”
means PennyMac Loan Services, LLC, together with its permitted successors and assigns.

 

“Subservicer
Termination Event" means an event that entitles a Borrower or PennyMac Operating Partnership, L.P. to terminate the Subservicer
for cause under the Subservicing Agreement.

 

    	 	53	 

     

    

 

“Subservicing
Agreement” means the Second Amended and Restated Flow Servicing Agreement, dated as of March 1, 2013, between PennyMac
Operating Partnership L.P., as owner and Subservicer as subservicer, as such agreement may be amended from time to time.

 

“Subsidiary”
means a corporation of which a Person and/or its other Subsidiaries own, directly or indirectly, such number of outstanding shares
as have more than 50% of the ordinary voting power for the election of directors.

 

“T&I
Advance” means an advance made by a Borrower as servicer with respect to a Mortgage Loan pursuant to the servicer’s
obligation to do so under any Servicing Contract of real estate taxes and assessments, or of hazard, flood or primary mortgage
insurance premiums, required to be paid by the related Mortgagor under the terms of the related Mortgage Loan.

 

“Taxes”
has the meaning set forth in Section 3.02.

 

“Termination
Date” means the earlier of (i) the day on which the Facility is terminated pursuant to Section 8.02(a)
or Section 8.02(b), (ii) the Loan Repayment Date on which the final amounts owing under the Facility are required
to be paid as provided for in the first sentence of Section 2.08(a) hereof, or (iii) the termination of the Repo Agreement.

 

“UCC”
means the Uniform Commercial Code as in effect on the date hereof in the State of New York; provided that if by reason of mandatory
provisions of law, the perfection or the effect of perfection or non-perfection of the security interest in any Purchased Items
is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “Uniform Commercial Code”
means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such
perfection or effect of perfection or non-perfection.

 

“Uncollected
Fees” means with respect to any Mortgage Loan, any accrued late charges, NSF fees, assumption fees, and other fees charged
to Mortgagors in connection with the servicing or subservicing of such Mortgage Loan which have not been collected by a Borrower
as of the related Funding Date.

 

“Unmatured
Event of Default” means any event that, with the giving of notice or lapse of time, or both, would become an Event of
Default.

 

“Wind Down
Date” means the earliest to occur of (i) the Maturity Date, (ii) the date on which the Repo Agreement terminates, or
if such day is not a Business Day, the immediately preceding Business Day, or (iii) the Business Day specified by the Lender upon
ten (10) Business Days’ prior written notice to the Borrowers.

 

“Write-Down
and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such
EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down
and conversion powers are described in the EU Bail-In Legislation Schedule.

 

    	 	54	 

     

    

 

SCHEDULE 5.01

CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS AGREEMENT

 

(a)          This Agreement duly executed by the parties hereto;

 

(b)          The Note duly executed by the Borrowers;

 

(c)          The Collection Account Control Agreement duly executed by the Borrowers, the Lender and Bank;

 

(d)          The Master Netting Agreement duly executed by the related parties;

 

(e)          All other Facility Documents and all Program Documents (as defined in the Repo Agreement) duly executed by the related parties;

 

(f)           Filed UCC1 financing statements;

 

(g)          A certificate of a secretary or assistant secretary of each Borrower and Guarantor, certifying the names and true signatures
of the persons authorized on the Borrowers’ and Guarantor’s behalf to sign, as applicable, this Agreement, the Note
and the other Facility Documents to be delivered by the Borrower and Guarantor in connection herewith;

 

(h)          A certificate of a Responsible Officer of each Borrower and Guarantor, each certifying as to the accuracy and completeness
of each of the representations and warranties contained in each Facility Document to which such Borrower and the Guarantor is a
party (except for representations and warranties made in respect of specific mortgage loans) and as to the absence of Default under
such Facility Documents to which such Borrower and Guarantor is a party as of the Closing Date;

 

(i)           Completion of all reasonable legal finance, business, accounting and tax due diligence and provision of copies of all servicing
and sub-servicing agreements; financials, MSR valuations and electronic files;

 

(j)           Resolutions, good standing certificate, certificate of incorporation or formation, bylaws and incumbency certificate of
the Borrowers and the Guarantor, all certified by the secretary of the Borrower and the Guarantor;

 

    	 	55	 

     

    

 

(k)          An Opinion of Counsel, delivered by outside counsel acceptable to the Lender in its reasonable discretion, opining as to:
New York enforceability, corporate matters and non-contravention, no material litigation, security interest, and the Investment
Company Act of 1940; provided that opinions as to corporate matters, non-contravention and no material litigation may be given
by the in-house counsel of the Borrowers;

 

(l)           Executed Fannie Mae Acknowledgment Agreements and an opinion of counsel with respect to such Fannie Mae Acknowledgment Agreements;

 

(m)          A separate power of attorney of PMC with respect to the powers described in Section 4.04; and

 

(n)          The Master Spread Acquisition and MSR Servicing Agreement duly executed by the related parties.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	56	 

     

    

 

SCHEDULE 5.02

CONDITIONS PRECEDENT TO EACH LOAN

 

(a)          The Lender shall have received a duly executed copy of a Borrower Funding Request for such Loan in accordance with Section 2.03;

 

(b)          Delivery of all reasonable due diligence (to the extent supplemental due diligence is conducted by Lender with respect to
such Loan);

 

(c)          The making of such Loan, and the application of the proceeds thereof, shall not result in the Outstanding Aggregate Loan
Amount exceeding the Available Facility Amount;

 

(d)          The making of such Loan, and the application of the proceeds thereof, shall not result in a Borrowing Base Deficiency;

 

(e)          On the applicable Funding Date, the following statements shall be true (and each Borrower by delivering such Borrower Funding
Request shall be deemed to have certified that):

 

(i)          the representations and warranties set forth in Article VI are true and correct in all material respects (except
for on the Closing Date, in which case the representations and warranties are true and correct on the Closing Date) on and as
of such day as though made on and as of such day and shall be deemed to have been made on such day (except to the extent any such
representation or warranty is stated to relate solely to an earlier date, in which case, such representation or warranty shall
have been true and correct as of such date);

(ii)         such Borrower is in compliance with all covenants set forth in Article VII;

 

(iii)        all conditions precedent to the making of such Loan have been satisfied;

 

(iv)        no Default or Event of Default has occurred and is continuing, or would result from such Loans;

 

(v)          all of the Servicing Rights included in the most recently delivered Electronic File are Eligible Servicing Rights, except
for any non-qualifying Servicing Rights listed as such therein, and all Recourse Servicing Obligations have been identified as
such in a schedule attached to such Electronic File;

 

(f)           The Lender shall have received (i) with respect to the Initial Borrower Funding Request, the initial Electronic File;
and (ii) with respect to any subsequent Borrower Funding Request, a subsequent Electronic File on or prior to time required
by Section 2.03;

 

    	 	57	 

     

    

 

(g)          With respect to any Borrower Funding Request, an Acknowledgement Agreement from each Agency with respect to which the related
Servicing Rights will be pledged under the Agreement and consents from all third parties, including warehouse lenders, as needed,
except to the extent the foregoing have already been received;

 

(h)          With respect to the Initial Borrower Funding Request, an Opinion of Counsel, delivered by outside counsel acceptable to
the Lender in its reasonable discretion, opining as to: security interest creation, perfection and priority;

 

(i)           All Facility Documents shall continue to be in full force and effect in all material respects; and

 

(j)           The due filing of a UCC financing statement on Form UCC3, in form and substance satisfactory to the Lender, with respect
to the UCC1 initial financing statement file number 20150383629, filed by JPMorgan Chase Bank, N.A. with the Delaware Secretary
of State on January 28, 2015.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	58	 

     

    

 

SCHEDULE 6.01(r)

 

BORROWERS’ EXISTING FINANCING FACILITIES1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

______________________

1
PennyMac please provide for both borrowers

 

    	 	59	 

     

    

 

SCHEDULE 6.02

 

ELIGIBILITY
CRITERIA WITH RESPECT TO THE SERVICING RIGHTS

 

All owned Servicing Rights for Mortgage
Loans serviced by PMC on behalf of Fannie Mae, provided that such Servicing Rights are free and clear of any Liens, subject to
Fannie Mae’s interest in such Servicing Rights pursuant to an Acknowledgment Agreement acceptable in form and substance to
the Lender.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	60	 

     

    

 

SCHEDULE 7.01(s)

Monthly MSR Collateral REPORT

 

Information to be provided.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	61	 

     

    

 

SCHEDULE 11.02

NOTICES

 

If to PMC:

 

PennyMac Corp.

6101 Condor Drive

Moorpark, California
93021

Attention: Pamela
Marsh/Kevin Chamberlain

Telephone: (805) 330-6059/
(818) 746-2877

Facsimile: (818) 936-0145

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

kevin.chamberlain@pnmac.com

 

With copies to:

 

PennyMac Corp.

6101 Condor Drive

Moorpark, California 93021

Attention: Jeff Grogin

Telephone: (818) 224-7050

Facsimile: (818) 936-0231

E-mail: jeff.grogin@pnmac.com

 

If to Holdings:

 

PennyMac Holdings, LLC

6101 Condor Drive

Moorpark, California
93021

Attention: Pamela
Marsh/Kevin Chamberlain

Telephone: (805) 330-6059/
(818) 746-2877

Facsimile: (818) 936-0145

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

kevin.chamberlain@pnmac.com

 

With copies to:

 

PennyMac Corp.

6101 Condor Drive

Moorpark, California 93021

Attention: Jeff Grogin

Telephone: (818) 224-7050

Facsimile: (818) 936-0231

E-mail: jeff.grogin@pnmac.com

 

    	 	62	 

     

    

 

If to the Guarantor:

 

PennyMac Mortgage Investment Trust

6101 Condor Drive

Moorpark, California 93021

Attention: Pamela Marsh/Kevin Chamberlain

Telephone: (805) 330-6059/ (818) 746-2877

Facsimile: (818) 936-0145

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

kevin.chamberlain@pnmac.com

 

With copies to:

 

PennyMac Mortgage Investment Trust

6101 Condor Drive

Moorpark, California 93021

Attention: Jeff Grogin

Telephone: (818) 224-7050

Facsimile: (818) 936-0231

E-mail: jeff.grogin@pnmac.com

 

Effective as of March 14, 2016,
the address information for PMC, Holdings, and Guarantor, including all copied parties, shall be replaced with the following:

3043 Townsgate Road

Westlake Village, CA 91361

 

if to Lender:

Barclays Bank PLC – Mortgage
Finance

745 Seventh Avenue, 4th Floor

New York, NY 10019

Attention: Joseph O’Doherty

Telephone: (212) 412-5517

Facsimile: (212) 412-7333

E-mail: Joseph.o’doherty@barclays.com

With copies to:

Barclays Bank PLC – Legal Department

745 Seventh Avenue, 20th Floor

New York, NY 10019

Telephone: (212) 412-1494

Facsimile: (212) 412-1288

Barclays Capital – Operations

700 Prides Crossing

Newark, Delaware 19713

Attention: Brian Kevil

Telephone: (302) 286-1951

Facsimile: (646) 845-6464

Email: brian.kevil@barclays.com

 

    	 	63	 

     

    

 

EXHIBIT 2.02(a)

 

FORM OF
AMENDED AND RESTATED PROMISSORY NOTE

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES
LAWS. THIS NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED
UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS AND PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

 

[               ], 2016

 

$_____________

 

New York, New York

 

FOR VALUE RECEIVED,
Pennymac Corp., a Delaware corporation (“PMC”) and PENNYMAC HOLDINGS,
LLC (“Holdings” and, together with PMC, the “Borrowers”), each hereby promises to pay to
the order of BARCLAYS BANK PLC (the “Lender”), at the principal office of the Lender at 745 Seventh Avenue, 4th Floor,
New York, New York 10019, in lawful money of the United States, and in immediately available funds, the principal sum of [ ] ($[
]) (or such lesser amount as shall equal the aggregate unpaid principal amount of the Loans made by the Lender to the Borrowers
under the Loan Agreement), on the dates and in the principal amounts provided in the Loan Agreement, and to pay interest on the
unpaid principal amount of each such Loan, at such office, in like money and funds, for the period commencing on the date of such
Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Loan Agreement.

 

The date, amount
and interest rate of each Loan made by the Lender to the Borrowers, and each payment made on account of the principal thereof,
shall be recorded by the Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule attached
hereto or any continuation thereof; provided, that the failure of the Lender to make any such recordation or endorsement shall
not affect the obligations of the Borrowers to make a payment when due of any amount owing under the Loan Agreement or hereunder
in respect of the Loans made by the Lender.

 

This Note is the
Note referred to in the Amended and Restated Loan and Security Agreement dated as of January 22, 2016 (as amended, supplemented
or otherwise modified and in effect from time to time, the “Loan Agreement”) among Borrowers, PennyMac Mortgage Investment
Trust, as guarantor and the Lender, and evidences Loans made by the Lender thereunder. Terms used but not defined in this Note
have the respective meanings assigned to them in the Loan Agreement.

 

    	 	64	 

     

    

 

The Borrowers agree
to pay all the Lender’s reasonable out-of-pocket costs of collection and enforcement (including reasonable attorneys’
fees and disbursements of Lender’s counsel) in respect of this Note when incurred as required by Section 10.01
of the Loan Agreement.

 

Notwithstanding
the pledge of the Collateral, the Borrowers hereby acknowledge, admit and agree that the Borrowers’ obligations under this
Note are joint and several, recourse obligations of the Borrowers to which the Borrowers pledge their full faith and credit.

 

The Borrowers, and
any endorsers or guarantors hereof, (a) severally waive diligence, presentment, protest and demand and also notice of protest,
demand, dishonor and nonpayments of this Note, (b) expressly agree that this Note, or any payment hereunder, may be extended
from time to time, and consent to the acceptance of further Collateral, the release of any Collateral for this Note, the release
of any party primarily or secondarily liable hereon, and (c) expressly agree that it will not be necessary for the Lender,
in order to enforce payment of this Note, to first institute or exhaust the Lender’s remedies against the Borrowers or any
other party liable hereon or against any Collateral for this Note. No extension of time for the payment of this Note, or any installment
hereof, made by agreement by the Lender with any person now or hereafter liable for the payment of this Note, shall affect the
liability under this Note of the Borrowers, even if the Borrowers are is not a party to such agreement; provided, however, that
the Lender and the Borrowers, by written agreement between them, may affect the liability of the Borrowers.

 

Any reference herein
to the Lender shall be deemed to include and apply to every subsequent holder of this Note. Reference is made to the Loan Agreement
for provisions concerning optional and mandatory prepayments, Collateral, acceleration and other material terms affecting this
Note.

 

Any enforcement
action relating to this Note may be brought by motion for summary judgment in lieu of a complaint pursuant to Section 3213
of the New York Civil Practice Law and Rules.

 

THIS NOTE SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
(OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, WHICH BY ITS TERMS APPLIES TO THIS NOTE). THE BORROWERS HEREBY
SUBMIT TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN, THE
FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF FOR
PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY. THE BORROWERS
HERETO IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT IN THE BOROUGH OF MANHATTAN AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. THE BORROWERS HERETO HEREBY CONSENT TO PROCESS BEING SERVED
IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS NOTE, OR ANY DOCUMENT DELIVERED PURSUANT HERETO BY THE MAILING OF A COPY
THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, RETURN RECEIPT REQUESTED, TO THEIR RESPECTIVE ADDRESSES SPECIFIED AT
THE TIME FOR NOTICES UNDER THE LOAN AGREEMENT OR TO ANY OTHER ADDRESS OF WHICH THEY SHALL HAVE GIVEN WRITTEN OR ELECTRONIC NOTICE
TO THE LENDER. THE FOREGOING SHALL NOT LIMIT THE ABILITY OF ANY PARTY HERETO TO BRING SUIT IN THE COURTS OF ANY OTHER JURISDICTION.

 

THE BORROWERS
HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS NOTE.

 

[Signature Page
Follows]

 

    	 	65	 

     

    

 

Pennymac
Corp.

 

By:____________________________

Name:

Title:

 

 

 

 

PENNYMAC HOLDINGS, LLC

 

By:____________________________

Name:

Title:

 

    	 	66	 

     

    

 

SCHEDULE OF
LOANS

 

This Note evidences
Loans made under the within-described Loan Agreement to the Borrowers, on the dates, in the principal amounts and bearing interest
at the rates set forth below, and subject to the payments and prepayments of principal set forth below:

 

	Date Made	
        Principal Amount

        of Loan
	
        Amount Paid

        or Prepaid
	
        Amount of

        Additional Draws
	
        Unpaid Principal

        Amount
	
        Notation

        Made by

	 	 	 	 	 	 
	 	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	67	 

     

    

 

EXHIBIT 2.03

to A&R Loan and Security Agreement

 

FORM OF
BORROWER FUNDING REQUEST

 

[DATE]

 

Barclays Bank PLC

745 Seventh Avenue, 4th Floor

New York, New York 10019

Attention: Joseph O’Doherty

 

 

Attention: [  ]

 

Ladies and Gentlemen:

 

This [Initial] Borrower
Funding Request is delivered to you pursuant to Section 2.03 of the Amended and Restated Loan and Security Agreement,
dated as of January 22, 2016 (as amended, supplemented, restated or otherwise modified from time to time, the “Loan Agreement”),
among PennyMac Corp., PennyMac Holdings, LLC, as borrowers, PennyMac Mortgage Investment Trust, as guarantor and Barclays Bank
PLC, as lender (the “Lender”). Unless otherwise defined herein or as the context otherwise requires, terms used
herein have the meaning assigned thereto under Schedule I of the Loan Agreement.

 

The undersigned
(the “Borrowers”) hereby request that a Loan be made in the aggregate principal amount of $____ on _________,
20__ to be secured by the Servicing Rights.

 

An updated Electronic
File, revised to reflect the acquisition of any additional Servicing Rights purchased by the Borrower since the most recently delivered
Electronic File, has been delivered pursuant to Section 2.03 of the Loan Agreement. Such Electronic File reflects all
Eligible Servicing Rights that constitute Collateral under the terms and conditions of the Agreement and a hyperlink to such Electronic
File is attached hereto as Schedule One.

 

[TO BE USED FOR
ALL FUNDINGS THAT INVOLVE NEW COLLATERAL] [The Borrowers hereby acknowledge and agree that (other than with respect to the Agreement)
(i) the Servicing Rights currently pledged as Collateral under the Agreement and (ii) any of the Servicing Rights identified
on Schedule One attached hereto, are not currently assigned, pledged, conveyed or encumbered under any credit, warehouse
or financing facility. The Borrowers further acknowledge and agree that (other than under the Agreement) it shall not assign, pledge,
convey or encumber such Servicing Rights under any credit, warehouse or financing facility in the future, except with prior notice
to, and consent from, the Lender.]

 

The undersigned
hereby acknowledges that the delivery of this [Initial] Borrower Funding Request and the acceptance by the undersigned of the proceeds
of the Loan requested hereby constitute a representation and warranty by the undersigned that all conditions precedent to such
Loan specified in Article V of the Loan Agreement have been satisfied and will continue to be satisfied after giving effect
to such Loan.

 

    	 	68	 

     

    

 

The undersigned
further represents and warrants that either (a) the Agency Guides and the Servicing Contracts have not been materially modified
since the last date the undersigned delivered a Borrower Funding Request or (b) attached hereto is a true and complete description
of any changes to the applicable Servicing Contracts since the last date the undersigned delivered a Borrower Funding Request.

 

Please wire transfer
the proceeds of the Loan to the following account pursuant to the following instructions:

 

[______________]

 

The undersigned
has caused this [Initial] Borrower Funding Request to be executed and delivered, and the certification and warranties contained
herein to be made, by its duly authorized officer this ____ day of _________, 20__.

 

Pennymac
Corp., as a Borrower

 

By:____________________________

Name:

Title:

 

 

 

 

PENNYMAC
HOLDINGS, LLC, as a Borrower

 

By:____________________________

Name:

Title:

 

 

 

Acknowledged and agreed:

 

BARCLAYS BANK PLC

 

By:____________________________

Name:

Title:

 

    	 	69	 

     

    

 

SCHEDULE
ONE

 

ELECTRONIC
FILE

 

[To be provided by Borrower.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	70	 

     

    

 

EXHIBIT 2.08(a)

 

FORM OF
REPAYMENT NOTICE

 

[ ], 20__

 

TO: The Lender as defined in the
Loan Agreement referred to below

 

Reference is hereby
made to the Amended and Restated Loan and Security Agreement, dated as of January 22, 2016 (as heretofore amended, the “Loan
Agreement”), among PennyMac Corp. (“PMC”), PennyMac Holdings, LLC (“Holdings” and,
together with PMC, collectively the “Borrowers”), PennyMac Mortgage Investment Trust (the “Guarantor”)
and Barclays Bank PLC, as lender (the “Lender”). Capitalized terms not otherwise defined herein are used herein
as defined in the Loan Agreement.

 

The Borrowers hereby
notify you that, pursuant to Section 2.08[(a)/(b)] of the Loan Agreement, they shall make a repayment of the Loans
outstanding under the Loan Agreement to the Lender on [ ], 20__ in the amount of $_____.

 

Also included in
the repayment amount shall be accrued and unpaid interest, in the amount of $__________________.

 

The undersigned
has caused this Repayment Notice to be executed and delivered by its duly authorized officer this_________ day of ____________,
20__.

 

Pennymac
Corp., as a Borrower

 

By:____________________________

      Name:

      Title:

 

Pennymac
HOLDINGS, LLC, as a Borrower

 

By:____________________________

      Name:

      Title:

 

    	 	71	 

     

    

 

EXHIBIT 2.08(b)

 

FORM OF
PREPAYMENT NOTICE

 

[ ], 20__

 

TO: The Lender as defined in the
Loan Agreement referred to below

 

Reference is hereby
made to the Amended and Restated Loan and Security Agreement, dated as of January 22, 2016 (as heretofore amended, the “Loan
Agreement”), among PennyMac Corp. (“PMC”), PennyMac Holdings, LLC (“Holdings” and,
together with PMC, collectively the “Borrowers”), PennyMac Mortgage Investment Trust (the “Guarantor”)
and Barclays Bank PLC, as lender (the “Lender”). Capitalized terms not otherwise defined herein are used herein
as defined in the Loan Agreement.

 

The Borrowers hereby
notify you that, pursuant to and in compliance with Section 2.09 of the Loan Agreement, they shall make a prepayment
of Loans outstanding under the Loan Agreement on [ ], 20__ in the amount of $________.

 

Also included in
the prepayment amount shall be accrued and unpaid interest, in the amount of $____________.

 

The undersigned
has caused this Prepayment Notice to be executed and delivered by its duly authorized officer this_________ day of ___________,
20__.

 

Pennymac
Corp., as a Borrower

 

By:____________________________

      Name:

      Title:

 

 

Pennymac
HOLDINGS, LLC, as a Borrower

 

By:____________________________

      Name:

      Title:

 

    	 	72	 

     

    

 

EXHIBIT 7.01

 

FORM OF
COMPLIANCE CERTIFICATE

 

Barclays Bank PLC

745 Seventh Avenue, 4th Floor

New York, New York 10019

Attention: Joseph O’Doherty

 

Re: Reporting Date

 

Reference is made
to the Amended and Restated Loan and Security Agreement (the “Loan Agreement”) dated as of January 22, 2016,
as amended, and now in effect among PennyMac Corp. (“PMC”), PennyMac Holdings, LLC (“Holdings”
and, together with PMC, collectively the “Borrowers”), PennyMac Mortgage Investment Trust (the “Guarantor”)
and Barclays Bank PLC, as Lender. Terms defined in the Loan Agreement and not otherwise defined herein are used herein as defined
in the Loan Agreement.

 

Pursuant to Section 7.01(h)(4)
of the Loan Agreement, the Borrowers are furnishing to you herewith the Officer’s Certificate regarding outstanding repurchase
and indemnity demands by the Agencies and any MBS Trust.

 

Each of the undersigned
Responsible Officers of each Borrower has caused the provisions of the Loan Agreement to be reviewed and certifies to the Lender
that: (a) the undersigned has no knowledge of any Default or Event of Default, (b) attached hereto as Schedule 1,
Schedule 2, Schedule 3 and Schedule 4 are the representations of the Borrowers and computations necessary
to determine that the Borrowers are in compliance with the provisions of the Loan Agreement as of the Reporting Date referenced
thereon, and (c) to the best of the undersigned’s knowledge no event has occurred since the date of the most recent
financial statements upon which such covenant compliance was calculated that would cause a Borrower to no longer be in compliance
with said provisions.

 

The statements made
herein (and in the Schedules attached hereto) shall be deemed to be representations and warranties made in a document for the purposes
of Section 6.01(i) of the Loan Agreement.

 

    	 	73	 

     

    

 

SCHEDULE 1

To form of Compliance Certificate

 

1.     Financial Covenants:

 

Attached as Schedule
2 to this Compliance Certificate are the calculations demonstrating each Borrower’s and Guarantor’s compliance
with the financial covenants set forth in Section 7.01(j) of the Agreement.

 

2.     Fannie Mae:

 

		(i)	Compliance:

 

(a)     As of
the close of business for the calendar month ended _________, the [Borrowers/Subservicer/Guarantor] was in compliance with the
minimum consolidated tangible net worth requirement of Fannie Mae.

 

(b)     [Borrowers/Subservicer/Guarantor]
has, at all times, complied with the minimum consolidated liquidity requirement of Fannie Mae.

 

		(ii)	The [Borrowers/Subservicer/Guarantor]’s minimum consolidated tangible net worth requirement
of Fannie Mae is as follows: [_______________].

 

		(iii)	The [Borrowers/Subservicer/Guarantor]’s minimum consolidated liquidity requirement of Fannie
Mae is as follows: [_______________].

 

		(iv)	Attached as Schedule 3 to this Compliance Certificate are the calculations demonstrating
the [Borrowers/Subservicer/Guarantor]’s compliance with the Fannie Mae covenants listed in clauses (ii) and (iii) above.

 

3.     Additional
Financing Facilities:

 

[There have been no changes
to any Borrower Party’s existing financing facilities for mortgage servicing rights and servicing advances owned by such
Borrower Party, since the previously delivered list as specified on Schedule 6.01(r) to the Agreement, or as subsequently updated
by the Borrower by providing an updated schedule to the Lender.] [Attached as Schedule 4 to this Compliance Certificate is an updated
schedule of each Borrower Party’s other financing facilities, delivered pursuant to Section 6.01(r) of the Agreement. The
attached schedule hereby updates and replaces the previously delivered schedule of financing facilities.]

 

    	 	74	 

     

    

 

SCHEDULE 2

To form of Compliance Certificate

 

 

 

 

 

 

 

 

 

 

    	 	75	 

     

    

 

SCHEDULE 3

To form of Compliance Certificate

 

		1.	Description of all outstanding repurchase and indemnity claims with respect to the Pledged
Servicing Rights:

 

[________]

 

		2.	Outstanding amounts owed to Agencies but not yet paid pursuant to any outstanding repurchase
and indemnity claims:

 

[________]

 

		3.	Claims or compensatory fees paid by [Borrowers/Subservicer/Guarantor] to Agency that are
not reimbursed from a predecessor originator/servicer:

 

[________]

 

 

 

 

 

 

    	 	76	 

     

    

 

SCHEDULE 4

To form of Compliance Certificate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	77

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}]]