Document:

EX-10.17

 EXHIBIT 10.17 

 
  

 
 MORTGAGE LOAN PARTICIPATION
PURCHASE AND SALE AGREEMENT 
 between 
 STONEGATE MORTGAGE CORPORATION, 
 Seller 

and 
 BANK OF
AMERICA, N.A., 
 Purchaser 
 Dated as of June 24, 2013 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	Section 1.	 	 Definitions
	  	 	1	  
			
	Section 2.	 	 Procedures for Purchases of Participation Certificates
	  	 	12	  
			
	Section 3.	 	 Takeout Commitments
	  	 	14	  
			
	Section 4.	 	 Holdback Amount
	  	 	14	  
			
	Section 5.	 	 Issuance of Securities
	  	 	14	  
			
	Section 6.	 	 Servicing of the Mortgage Loans; Events of Default
	  	 	16	  
			
	Section 7.	 	 Transfers of Participation Certificates and Securities by Purchaser
	  	 	19	  
			
	Section 8.	 	 Record Title to Mortgage Loans; Intent of Parties; Security Interest
	  	 	20	  
			
	Section 9.	 	 Representations and Warranties
	  	 	21	  
			
	Section 10.	 	 Covenants of Seller
	  	 	24	  
			
	Section 11.	 	 Over/Under Account
	  	 	29	  
			
	Section 12.	 	 Term
	  	 	30	  
			
	Section 13.	 	 Set-Off
	  	 	30	  
			
	Section 14.	 	 Indemnification
	  	 	31	  
			
	Section 15.	 	 Exclusive Benefit of Parties; Assignment
	  	 	31	  
			
	Section 16.	 	 Amendments; Waivers; Cumulative Rights
	  	 	32	  
			
	Section 17.	 	 Execution in Counterparts
	  	 	32	  
			
	Section 18.	 	 Effect of Invalidity of Provisions
	  	 	32	  
			
	Section 19.	 	 Governing Law
	  	 	32	  
			
	Section 20.	 	 Notices
	  	 	33	  
			
	Section 21.	 	 Entire Agreement
	  	 	34	  
			
	Section 22.	 	 Costs of Enforcement
	  	 	34	  
			
	Section 23.	 	 Intent
	  	 	34	  
			
	Section 24.	 	 Full Recourse
	  	 	35	  
			
	Section 25.	 	 Examination and Oversight by Regulators
	  	 	35	  

  

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	Section 26.	 	 Consent to Service
	  	 	35	  
			
	Section 27.	 	 Construction
	  	 	35	  
			
	Section 28.	 	 Further Assurances
	  	 	35	  
			
	EXHIBITS	 		  			
			
	Exhibit A	 	 Participation Certificate
	  			
			
	Exhibit B	 	 Trade Assignment
	  			
			
	Exhibit C	 	 Document List
	  			
			
	Exhibit D	 	 Reserved
	  			
			
	Exhibit E	 	 Assignment
	  			
			
	Exhibit F	 	 Form of Confirmation
	  			
			
	Exhibit G	 	 Seller’s Officer’s Certificate (Initial Purchase Date)
	  			
			
	Exhibit H	 	 Seller’s Officer’s Certificate (Each Purchase Date)
	  			
			
	Exhibit I	 	 Seller’s Officer’s Certificate (Monthly Compliance)
	  			
			
	Exhibit J	 	 Form of Request for Temporary Increase
	  			
			
	Annex A	 	 Purchaser and Seller Notices
	  			

  

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 MORTGAGE LOAN PARTICIPATION PURCHASE AND SALE AGREEMENT 

This is a MORTGAGE LOAN PARTICIPATION PURCHASE AND SALE AGREEMENT (this “Agreement”), dated as of June 24, 2013,
between Bank of America, N.A. (“Purchaser”) and Stonegate Mortgage Corporation (“Seller”). 

PRELIMINARY STATEMENT 
 Seller desires to sell to Purchaser from time to time all of Seller’s beneficial right, title and interest in and to designated pools of fully amortizing first lien residential Mortgage Loans
eligible in the aggregate to back Securities, and the servicing rights relating thereto, with the terms described in related Takeout Commitments, each in the form of a 100% undivided beneficial ownership interest evidenced by a Participation
Certificate. 
 Purchaser desires and may, in its sole discretion, purchase such Participation Certificates from Seller in
accordance with the terms and conditions set forth in this Agreement. Seller, subject to the terms hereof, will cause (a) the Related Mortgage Loans to back a GNMA Security issued by Seller and guaranteed by GNMA, a FNMA Security issued and
guaranteed by FNMA, or a FHLMC Security issued and guaranteed by FHLMC and (b) Delivery of such GNMA Security, FNMA Security, or FHLMC Security by GNMA, FNMA, or FHLMC, respectively, to Purchaser or its designee in exchange for the Related
Participation Certificate, which GNMA Security, FNMA Security or FHLMC Security, as applicable, will be purchased by the Takeout Investor. 
 Purchaser’s willingness to purchase any Participation Certificate evidencing a beneficial interest in the Related Mortgage Loans and the servicing rights related thereto is at the sole discretion of
Purchaser and based on Purchaser’s expectation, in reliance upon Seller’s representations and warranties herein, that (a) such Mortgage Loans in the aggregate, constitute a pool or pools of mortgage loans that are eligible to back a
Security, (b) such Mortgage Loans are sufficient for Seller to issue and GNMA to guarantee the GNMA Security, FNMA to issue and guarantee a FNMA Security, or FHLMC to issue and guarantee a FHLMC Security, as applicable, (c) such Security
will be issued in the amount and with the terms described in the related Takeout Commitment, and (d) Purchaser will receive Delivery of such Security on the specified Anticipated Delivery Date. 

The amount of the Purchase Price to be paid by Purchaser to Seller with respect to each Participation Certificate will be calculated on
the expectation of Purchaser, based upon the representations and warranties of Seller herein, that Purchaser will receive Delivery of the Security to be backed by the Related Mortgage Loans on the specified Anticipated Delivery Date, and that
failure to receive such Delivery will result in a material decrease in the market value of the Participation Certificate and the Related Mortgage Loans considered as a whole. During the period from the purchase of a Participation Certificate to
Delivery of the related Security, Purchaser expects to rely entirely upon Seller to subservice the Related Mortgage Loans for the benefit of Purchaser, it being acknowledged that the continued effectiveness of Seller’s Approvals during such
period constitutes an essential factor in the calculation by Purchaser of the Purchase Price paid to Seller for the Related Participation Certificate and that loss of such Approvals by Seller would result in a material decrease in the market value
of the Participation Certificate and the Related Mortgage Loans considered as a whole. 
 In consideration of the mutual
promises and agreements herein contained the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 Section 1. Definitions. 
 Capitalized terms used but not defined
herein shall have the meanings set forth in the Custodial Agreement. As used in this Agreement, the following terms shall have the following meanings: 

  

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 “Accepted Servicing Practices”: With respect to any Related Mortgage Loan,
those accepted and prudent mortgage servicing practices and procedures (including collection procedures) of prudent mortgage lending institutions which service mortgage loans of the same type as the Mortgage Loans in the jurisdiction where the
related Mortgaged Property is located, and which are in accordance with the requirements of each Agency Program, applicable law, FHA regulations and VA regulations and the requirements of any private mortgage insurer so that the FHA insurance, VA
guarantee or any other applicable insurance or guarantee in respect of any Mortgage Loan is not voided or reduced. 

“Accrued Interest”: With respect to each Security related to a Participation Certificate, an amount equal to the product
obtained by multiplying (a) the number of days in the period beginning on the related Issuance Date to but not including the Anticipated Delivery Date for the related Security, (b) the rate of interest to be borne by the related Security,
and (c) the aggregate principal amount of the Related Mortgage Loans, and dividing such number by three hundred and sixty (360). 
 “Act of Insolvency”: With respect to Seller or any Affiliate of Seller: (i) becoming insolvent or admitting in writing its inability to pay its debts as they come due, or the
commencement of a voluntary case under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy, insolvency or similar law, or the consent to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official or of any substantial part of its property or the making of an assignment for the benefit of creditors or the failure generally to pay debts as such debts
become due or the taking of action in furtherance of any of the foregoing; (ii) a petition or a proceeding shall have been filed or commenced against the Seller or such Affiliate seeking (a) a decree or order for relief in an involuntary
case under the federal bankruptcy laws, as now or hereafter in effect, or any other present or future federal or state bankruptcy laws or similar law, as now or hereafter in effect, (b) the appointment of a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Seller or such Affiliate or of any substantial part of its property, or (c) the winding up or liquidation of the affairs of the Seller or such Affiliate and such petition or
proceeding shall not have been dismissed for a period of thirty (30) consecutive days, or an order or decree for relief against the Seller or such Affiliate shall be entered in any such proceeding; (iii) the making or offering by Seller or
such Affiliate of a concession with its creditors or a general assignment for the benefit of creditors; (iv) the Seller or such Affiliate shall (a) either fail or admit in writing its inability to pay or discharge its debts or obligations
generally as they become due or mature, (b) admit in writing its inability to, or intention not to, perform any of its material obligations, or (c) voluntarily suspend payment of any of its debts or obligations as they become due or
mature; (v) any Governmental Authority or agency or any person, agency or entity acting or purporting to act under governmental authority shall have taken any action to condemn, seize or appropriate, or to assume custody or control of, all or
any substantial part of the property of Seller or of any of its Affiliates, or shall have taken any action to displace the management of Seller or of any of its Affiliates or to curtail its authority in the conduct of the business of Seller or of
any of its Affiliates; or (vi) the audited annual financial statements of the Seller or such Affiliate or the notes thereto or other opinions or conclusions stated therein shall be qualified or limited by reference to the status of the Seller
as a “going concern” or a reference of similar import or shall indicate that the Seller has a negative Net Worth or is insolvent. 
 “Affiliate”: With respect to any specified Person, any other Person controlling or controlled by or under common control with such specified Person. For the purposes of this definition,
“control” means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting equity, by contract or otherwise. 

  

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 “Agency Guide”: The FHLMC Guide, the FNMA Guide, or the GNMA Guide, as
applicable. 
 “Agency Program”: The FHLMC Program, the FNMA Program, or the GNMA Program, as applicable.

 “Aggregate Purchase Price”: As of any date of determination, an amount equal to the aggregate outstanding
Purchase Price for all Participation Certificates then owned by Purchaser and subject to the terms of this Agreement. 

“Aggregate Rate Lock”: The sum of forward interest rate locks the Seller has in place at any point in time. 

“Aggregate Transaction Limit”: The meaning set forth in the Pricing Letter. 

“Anticipated Delivery Date”: With respect to a Security, the date specified in the related Form HUD 11705 (Schedule of
Subscribers), Fannie Mae Form 2014 (Delivery Schedule) or FHLMC Form 939 (Settlement and Information Multiple Registration Form), as applicable, on which it is anticipated that Delivery of the Security by the Applicable Agency will be made.

 “Applicable Agency”: GNMA, FNMA, or FHLMC, as applicable. 

“Applicable Percentage”: The meaning set forth in the Pricing Letter. 

“Approvals”: With respect to Seller, the approvals obtained by the Applicable Agency, or HUD in designation of Seller as
a GNMA-approved issuer, a GNMA-approved servicer, a FHA-approved mortgagee, a VA-approved lender, a FNMA-approved lender or a FHLMC-approved Seller/Servicer, as applicable, in good standing. 

“Approved Investor”: Any of Fannie Mae, Freddie Mac, Ginnie Mae or a member of MBS Clearing Corporation that is either
an approved counterparty of Purchaser or its Affiliates or otherwise acceptable to Purchaser in its sole discretion, who will purchase Securities pursuant to a Takeout Commitment. 

“Assignee”: As defined in Section 7. 

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

“Bankruptcy Code”: Title 11 United States Code, Section 101 et seq., as amended from time to time.

 “Business Day”: Any day, excluding Saturday, Sunday and any day that is a legal holiday under the laws of
the State of New York and the State of California or as may otherwise be published on Purchaser’s website(s). 

“Cash Equivalents”: Any (a) securities with maturities of ninety (90) days or less from the date of
acquisition issued or fully guaranteed or insured by the United States Government or any agency thereof, (b) certificates of deposit and Eurodollar time deposits with maturities of ninety (90) days

  

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or less from the date of acquisition and overnight bank deposits of any commercial bank having capital, surplus and retained earnings in excess of $70,000,000, (c) repurchase obligations of
any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than seven days with respect to securities issued or fully guaranteed or insured by the United States Government, (d) commercial
paper of a domestic issuer rated at least A-1 or the equivalent thereof by S&P or p-1 or the equivalent thereof by Moody’s and in either case maturing within ninety (90) days after the day of acquisition, (e) securities with
maturities of ninety (90) days or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or
territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least A by S&P or A by Moody’s,
(f) securities with maturities of ninety (90) days or less from the date of acquisition backed by standby letters of credit issued by any commercial bank satisfying the requirements of clause (b) of this definition, or (g) shares
of money market, mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition. 
 “Collateral”: As defined in Section 8(c). 

“Compare Ratio”: The meaning set forth in the Compare Report. 

“Compare Report”: The DE Compare Report or the Institution Compare Report, as applicable. 

“Confirmation”: A written confirmation of Purchaser’s intent to purchase a Participation Certificate, which written
confirmation shall be substantially in the form attached hereto as Exhibit F. 
 “Contingent
Obligations”: Any obligation of a Person arising from an existing condition or situation that involves uncertainty as to outcome and that will be resolved by the occurrence or nonoccurrence of some future event, including, without
limitation, any obligation guaranteeing or intended to guarantee any Debt, leases, dividends or other obligations of any other Person in any manner, whether directly or indirectly; provided, however, that endorsements of instruments for deposit or
collection in the ordinary course of business shall not be included. With respect to guarantees, the amount of the Contingent Obligation shall be equal to the stated or determinable amount of the primary obligation in respect of the guarantee or, if
not stated or determinable, the maximum reasonably anticipated liability in respect thereof, as determined by Purchaser. 

“Custodial Account”: As defined in Section 6(c). 

“Custodial Agreement”: The Custodial and Disbursement Agreement, dated as of February 28, 2013, among Seller,
Purchaser, Custodian and Disbursement Agent as amended, supplemented or otherwise modified from time to time. 

“Custodian”: U.S. Bank National Association (which, under the appropriate circumstances, may include FHLMC as Custodian)
and its permitted successors under the Custodial Agreement. 
 “Daily Holdback Reduction Amount”: The meaning
set forth in the Pricing Letter. 
 “DE Compare Report”: With respect to the Seller, the top of the three rows
of the report entitled “Neighborhood Watch Early Warning System – Single Lender – Originator by Institution” and found at https://entp.hud.gov/sfnw/public/. Such report shall be generated using the following criteria:
Mortgagee Selections: “Direct Endorsement Lender;” Delinquent Choices: “Seriously Delinquent;” and 2 Year Performance Period: “Data as of [END OF MOST RECENT PRIOR QUARTER].” 

  

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 “Debt”: For any Person, without duplication: (a) indebtedness for
borrowed money, including principal, interest, fees and other charges; (b) obligations evidenced by bonds, debentures, notes or other similar instruments; (c) obligations to pay the deferred purchase price of property or services;
(d) obligations as lessee under leases that shall have been or should be in accordance with GAAP, recorded as capital leases; (e) obligations secured by any lien upon property or assets owned by such Person, even though such Person has not
assumed or become liable for payment of such obligations; (f) obligations in connection with any letter of credit issued for the account of such Person; (g) obligations under direct or indirect guarantees in respect of and obligations,
contingent or otherwise, to purchase or otherwise acquire, or otherwise assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to above; and (h) all Contingent Obligations. 

“Default Rate”: As of any date of determination, the Default Rate specified in the Master Repurchase Agreement; provided
that if the Master Repurchase Agreement is no longer in effect as of such date, the lesser of (i) the Discount Rate plus five percent (5.00%), or (ii) the maximum nonusurious interest rate, if any, that at any time, or from time to time,
may be contracted for, taken, reserved, charged or received under the laws of the United States and the State of New York, per annum. 
 “Defective Mortgage Loan”: With respect to a Participation Certificate, a Related Mortgage Loan that is not in Strict Compliance with the GNMA Program, FNMA Program, or FHLMC Program, as
applicable. 
 “Delivery”: The later to occur of (a) the issuance of the related Security and (b) the
transfer of all of the right, title and ownership interest in that Security to Purchaser or its designee. 

“Disbursement Agent”: U.S. Bank National Association and its permitted successors under the Custodial Agreement.

 “Discount Rate”: With respect to each Participation Certificate, a discount rate determined as of the
related Purchase Date equal to (i) LIBOR, plus (ii) the Applicable Percentage. 
 “Effective Date”:
June 24, 2013. 
 “Electronic Agent”: As defined in Section 2 of the Electronic Tracking
Agreement. 
 “Electronic Tracking Agreement”: The Electronic Tracking Agreement, dated as of February 28,
2013, among the Purchaser, the Seller, the Electronic Agent and MERS, as the same shall be amended, supplemented or otherwise modified from time to time. 
 “Events of Default”: As defined in Section 6(e). 

“Expiration Date”: The earlier of (i) February 27, 2014, (ii) at Purchaser’s option, upon the
occurrence of an Event of Default, and (iii) the date on which this Agreement shall terminate in accordance with the provisions hereof or by operation of law. 
 “FDIA: Title 12 United States Code, Section 1811 et seq., as amended from time to time. 
 “FDIC”: The Federal Deposit Insurance Corporation or any successor thereto. 

  

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 “FHA”: The Federal Housing Administration or any successor thereto.

 “FHLMC” or “Freddie Mac”: Freddie Mac or any successor thereto. 

“FHLMC as Custodian”: With respect to FHLMC Participation Certificates, the circumstances in which Seller elects to
appoint FHLMC (as opposed to some other third party as permitted by the FHLMC Guide) as Custodian for the FHLMC Mortgage Loans subject to the FHLMC Participation Certificates to be purchased by Purchaser hereunder. 

“FHLMC Guide”: The Freddie Mac Sellers’ and Servicers’ Guide, as such Guide may hereafter from time to time be
amended. 
 “FHLMC Mortgage Loan”: With respect to any FHLMC Participation Certificate or any FHLMC Security, a
mortgage loan that is in Strict Compliance with the eligibility requirements specified for the applicable FHLMC Program described in the FHLMC Guide. 
 “FHLMC Participation Certificate”: With respect to the FHLMC Program, a certificate, in the form of Exhibit A, issued by Seller and authenticated by Custodian, evidencing the 100%
undivided beneficial ownership interest in the Mortgage Loans that are either (a) set forth on a copy of the FHLMC Form 1034 (Fixed-Rate Custodial Certification Schedule) attached to such Participation Certificate or (b) identified on a
computer tape compatible with Selling System as belonging to the mortgage loan pool described in such Participation Certificate. 
 “FHLMC Program”: The FHLMC Home Mortgage Guarantor Program or the FHLMC FHA/VA Home Mortgage Guarantor Program, as described in the FHLMC Guide. 

“FHLMC Security”: A modified pass-through mortgage-backed participation certificate, evidenced by a book-entry account
in a depository institution having book-entry accounts at the Federal Reserve Bank of New York, issued and guaranteed, with respect to timely payment of interest and ultimate payment of principal, by FHLMC and backed by a pool of FHLMC Mortgage
Loans, in substantially the principal amount and with substantially the other terms as specified with respect to such FHLMC Security in the related Takeout Commitment, if any. 
 “FNMA” or “Fannie Mae”: Fannie Mae or any successor thereto. 
 “FNMA Guide”: The Fannie Mae MBS Selling and Servicing Guide, as such Guide may hereafter from time to time be amended. 

“FNMA Mortgage Loan”: With respect to any FNMA Participation Certificate or any FNMA Security, a mortgage loan that is
in Strict Compliance with the eligibility requirements specified for the applicable FNMA Program described in the FNMA Guide. 

“FNMA Participation Certificate”: With respect to the FNMA Program, a certificate, in the form of Exhibit A,
issued by Seller and authenticated by Custodian, evidencing the 100% undivided beneficial ownership interest in the Mortgage Loans set forth on Fannie Mae Form 2005 (Schedule of Mortgages). 

“FNMA Program”: The FNMA Guaranteed Mortgage-Backed Securities Programs, as described in the FNMA Guide. 

  

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 “FNMA Security”: An ownership interest in a pool of FNMA Mortgage Loans,
evidenced by a book-entry account in a depository institution having book-entry accounts at the Federal Reserve Bank of New York, in substantially the principal amount and with substantially the other terms as specified with respect to such FNMA
Security in the related Takeout Commitment, if any. 
 “GAAP”: Generally accepted accounting principles as in
effect from time to time in the United States of America. 
 “GNMA”: Government National Mortgage Association
or any successor thereto. 
 “GNMA Guide”: The GNMA Mortgage-Backed Securities Guide I or II, as such Guide may
hereafter from time to time be amended. 
 “GNMA Mortgage Loan”: With respect to any GNMA Participation
Certificate or any GNMA Security, a mortgage loan that is in Strict Compliance with the eligibility requirements specified for the applicable GNMA Program in the applicable GNMA Guide. 

“GNMA Participation Certificate”: With respect to the GNMA Program, a certificate, in the form of Exhibit A,
issued by Seller and authenticated by Custodian, evidencing the 100% undivided beneficial ownership interest in the Mortgage Loans set forth on the Form HUD 11706 (Schedule of Pooled Mortgages). 

“GNMA Program”: The GNMA Mortgage-Backed Securities Programs, as described in a GNMA Guide. 

“GNMA Security”: A fully-modified pass-through mortgage-backed certificate guaranteed by GNMA, evidenced by a book-entry
account in a depository institution having book-entry accounts at the Federal Reserve Bank of New York and backed by a pool of Mortgage Loans, in substantially the principal amount and with substantially the other terms as specified with respect to
such Security in the related Takeout Commitment. 
 “Governmental Authority”: With respect to any Person, any
nation or government, any state or other political subdivision, agency or instrumentality thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any court or
arbitrator having jurisdiction over such Person, any of its Subsidiaries or any of its properties. 
 “Holdback
Amount”: The meaning set forth in the Pricing Letter. 
 “HUD”: United States Department of Housing
and Urban Development or any successor thereto. 
 “Institution Compare Report”: With respect to the Seller,
the report entitled “Neighborhood Watch Early Warning System – Single Lender – Originator by Institution” and found at https://entp.hud.gov/sfnw/public/. Such report shall be generated using the following criteria:
Mortgagee Selections: “Originator by Institution;” Delinquent Choices: “Seriously Delinquent;” and 2 Year Performance Period: “Data as of [END OF MOST RECENT PRIOR QUARTER].” 

“Issuance Date”: With respect to a Security, the first day of the month in which the Security is issued. 

  

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 “LIBOR”: The per annum rate (adjusted for statutory reserve requirements
for eurocurrency liabilities) for eurodollar deposits for a period equal to one month appearing on Reuters Screen LIBOR01 Page or if such rate ceases to appear on Reuters Screen LIBOR01 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 Purchaser. 
 “Liquidity”: With respect to any Person, as of any date of determination, the sum of (a) Seller’s unrestricted and unencumbered cash and Cash Equivalents and (b) the
balance in the Over/Under Account. By way of example but not limitation, cash in escrow and/or impound accounts shall not be included in this calculation. 
 “Losses”: Any and all losses, claims, judgments, damages, liabilities, costs or expenses (including lost interest and reasonable attorney’s fees) imposed on, incurred by or asserted
against any Person specified. 
 “Master Repurchase Agreement”: That certain master repurchase agreement dated
as of February 28, 2013 between Seller and Purchaser, together with all amendments, modifications, supplements, restatements and replacements thereof. 
 “Material Adverse Effect”: Any of the following: (i) a material adverse change in, or a material adverse effect upon, the operations, business, properties, condition (financial or
otherwise) or prospects of Seller or any Affiliate that is a party to any Program Document taken as a whole, (ii) a material impairment of the ability of Seller or any Affiliate that is a party to any Program Document to perform under any
Program Documents and to avoid any Event of Default, (iii) a material adverse effect upon the legality, validity, binding effect or enforceability of any Program Documents against Seller or any Affiliate that is a party to any Program Document,
(iv) a material adverse effect on the rights and remedies of Purchaser under any of the Program Documents, (v) a material adverse effect on the marketability, collectability, value or enforceability of a material portion of the Related
Mortgage Loans or Securities purchased by Purchaser hereunder or (vi) a material adverse effect on the Approvals of Seller, in each case as determined by Purchaser in its sole good faith discretion. 

“MERS”: Mortgage Electronic Registration Systems, Inc., a Delaware corporation, or any successor in interest thereto.

 “MERS Mortgage Loan”: Any Mortgage Loan as to which the related Mortgage or Assignment of Mortgage, has been
recorded in the name of MERS, as agent for the holder from time to time of the Mortgage Note and which is identified as a MERS Mortgage Loan on the related schedule attached to the Related Participation Certificate. 

“MIN”: The mortgage identification number of Mortgage Loans registered with MERS on the MERS System. 

“Minimum Over/Under Account Balance”: As of any date of determination, the balance required to be maintained by Seller
in the Over/Under Account under the Master Repurchase Agreement; provided that if the Master Repurchase Agreement is no longer in effect as of such date, the Minimum Over/Under Account Balance shall be zero or as otherwise agreed among the parties.

 “Moody’s”: Moody’s Investors Service, Inc., and any successor thereto. 

“More Favorable Agreement”: As defined in Section 10(k). 

  

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 “Mortgage”: A mortgage, deed of trust or other security instrument,
securing a Mortgage Note. 
 “Mortgage Loan”: A GNMA Mortgage Loan, a FNMA Mortgage Loan or a FHLMC Mortgage
Loan. 
 “Mortgage Note”: A promissory note or other evidence of indebtedness of the obligor thereunder,
evidencing a Mortgage Loan, and secured by the related Mortgage. 
 “Mortgaged Property”: The real property (or
leasehold estate, if applicable) securing repayment of the debt evidenced by a Mortgage Note. 
 “Net Income”:
For any period, the net income of any Person for such period as determined in accordance with GAAP. 
 “Net
Worth”: With respect to any Person, the excess of total assets of such Person, over total liabilities of such Person, determined in accordance with GAAP. 
 “OCC”: Office of the Comptroller of the Currency or any successor thereto. 
 “Over/Under Account”: That account maintained by Purchaser, as described in Section 11 and in the Master Repurchase Agreement, if any. 

“Parent Company”: A corporation or other entity owning at least 50% of the outstanding equity interests of Seller.

 “Participation Certificate”: A GNMA Participation Certificate, a FNMA Participation Certificate or a FHLMC
Participation Certificate, as applicable. 
 “Person”: Any individual, corporation, company, voluntary
association, partnership, joint venture, limited liability company, trust, unincorporated association or government (or any agency, instrumentality or political subdivision thereof). 

“Potential Default”: The occurrence of any event or existence of any condition that, but for the giving of notice, the
lapse of time, or both, would constitute an Event of Default. 
 “Present Value Adjustment Amount”: With
respect to each Participation Certificate, an amount equal to the product of (a) the number of days in the period beginning on the related Purchase Date to but not including the Anticipated Delivery Date for the related Security, and
(b) the daily application of the applicable Discount Rate, determined as of the related Purchase Date, to the result of (i) the related Trade Principal, less (ii) the Holdback Amount, and dividing such number by 360. 

“Pricing Letter”: The Pricing Side Letter, dated as of the date hereof between Purchaser and Seller as amended,
supplemented or otherwise modified from time to time. 
 “Program Documents”: This Agreement, the Pricing
Letter, the Custodial Agreement, the Electronic Tracking Agreement, the Participation Certificates and all other agreements, documents and instruments entered into by Seller and Purchaser, in connection herewith or therewith with respect to the
transactions contemplated hereunder. 

  

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 “Purchase Date”: With respect to a Participation Certificate, the date on
which Purchaser elects to purchase such Participation Certificate. 
 “Purchase Price”: With respect to each
Participation Certificate, a price determined as of the related Purchase Date equal to the sum of (i) the related Trade Principal, plus (ii) the related Accrued Interest, minus (iii) the related Present Value Adjustment Amount, minus
(iv) related hedging costs, if any, which are mutually agreed-upon by the Purchaser and Seller. 
 “Purchase Price
Adjustment Amount”: With respect to each Participation Certificate, an amount equal to the product of (a) the number of days in the period beginning on the related Purchase Date to but not including the Settlement Date for the related
Security, and (b) the average daily Discount Rate for such period, multiplied by the difference between (i) the related Trade Principal less (ii) the Holdback Amount, and dividing such number by 360. 

“Purchaser”: Bank of America, N.A. and its successors in interest, including, but not limited to, any lender, designee
or assignee to whom a Participation Certificate or a Security shall be pledged or assigned. 
 “Recourse Debt”:
Debt for which the Seller is liable. 
 “Related Credit Enhancement”: As defined in Section 8(c).

 “Related Mortgage Loan”: A Mortgage Loan in which a Participation Certificate evidences the 100% undivided
beneficial ownership interest. 
 “Related Participation Certificate”: The Participation Certificate relating
to a pool of Mortgage Loans. 
 “Request for Temporary Increase”: As defined in Section 2(f).

 “S&P”: Standard and Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any
successor thereto. 
 “SEC”: The Securities Exchange Commission or any successor thereto. 

“Security”: A GNMA Security, a FNMA Security or a FHLMC Security, as applicable. 

“Security Issuance Failure”: Failure of the Security to be issued for any reason including but not limited to
Seller’s failure to perform any of its obligations under this Agreement or any other Program Document or failure to perform in Strict Compliance with the related Agency Program. 

“Seller”: The meaning set forth in the preamble, and shall refer to Seller in its capacity as seller of Participation
Certificates and Seller in its capacity as subservicer hereunder, as the context shall require. 
 “Selling
System”: The FHLMC automated system by which sellers and servicers of mortgage loans to FHLMC transfer mortgage summary and record data or mortgage accounting and servicing information from their computer system or service bureau to FHLMC,
as more fully described in the FHLMC Guide. 

  

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 “Servicing Records”: With respect to a Related Mortgage Loan, the related
servicing records, including but not limited to any and all servicing agreements, files, documents, records, data bases, computer tapes, copies of computer tapes, proof of insurance coverage, insurance policies, appraisals, other closing
documentation, payment history records, and any other records relating to or evidencing the servicing of such Related Mortgage Loan. 
 “Settlement Date”: The date specified in a Takeout Commitment upon which the related Security is scheduled to be delivered, against payment, to the specified Takeout Investor, which date
shall be no later than forty-five (45) days following the Purchase Date in respect of the underlying Participation Certificate. 
 “Stockholder’s Equity”: The difference between Seller’s total assets minus Seller’s total liabilities as determined in accordance with GAAP. 

“Strict Compliance”: Compliance of Seller and the Related Mortgage Loans with the requirements of the GNMA Guide, FNMA
Guide, or FHLMC Guide, as applicable and as amended by any agreements between Seller and the Applicable Agency, sufficient to enable Seller to issue and GNMA to guarantee or FNMA or FHLMC to issue and guarantee a Security; provided,
that until copies of any such agreements between Seller and GNMA have been provided to Purchaser by Seller and agreed to by Purchaser, such agreements shall be deemed, as between Seller and Purchaser, not to amend the requirements of the GNMA
Guide, FNMA Guide, or FHLMC Guide, as applicable. 
 “Subsidiary”: With respect to any Person, any corporation,
partnership or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of
such corporation, partnership or other entity (irrespective of whether or not at the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity shall have or might have voting power by
reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person. 

“Successor Servicer”: An entity with the necessary Approvals, as the circumstances may require, and designated by
Purchaser, in conformity with Section 6(f), to replace Seller as issuer and subservicer, mortgagee or seller/servicer of the Related Mortgage Loans or the Securities related thereto. 

“Takeout Commitment”: A fully executed trade confirmation from the Takeout Investor to Seller confirming the details of
a forward trade between the Takeout Investor and Seller with respect to one or more Securities relating to a Participation Certificate, which trade confirmation shall be enforceable and in full force and effect, and shall be validly and effectively
assigned to Purchaser pursuant to a Trade Assignment, and relate to pools of Related Mortgage Loans that satisfy the “good delivery standards” of the Securities Industry and Financial Markets Association as set forth in the Securities
Industry and Financial Markets Association Uniform Practices Manual. 
 “Takeout Investor”: Either
(i) Merrill Lynch, Pierce, Fenner & Smith Incorporated or (ii) any other Approved Investor with which there is a duly executed and enforceable Trade Assignment in favor of Purchaser. 

“Tangible Net Worth”: With respect to any Person, as of any date of determination, (i) the Net Worth of Seller and
its consolidated Subsidiaries, on a combined basis, determined in accordance with GAAP, minus (ii) all intangibles determined in accordance with GAAP (including, without limitation, goodwill, capitalized financing costs and capitalized
administration costs but excluding 

  

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originated and purchased mortgage servicing rights) and any and all advances to, investments in and receivables held from Affiliates, and minus (iii) loans held for investment and real
estate owned net of acceptable financing (financing must be deemed acceptable by Purchaser in its sole discretion). 

“Temporary Increase”: As defined in Section 2(f). 

“Total Liabilities”: With respect to any Person, as of any date of determination, the sum of (i) the total
liabilities of Seller on any given date of determination, to be determined in accordance with GAAP consistent with those applied in the preparation of Seller’s financial statements, plus (ii) to the extent not already included under GAAP,
the total aggregate outstanding amount owed by Seller under any purchase, repurchase, refinance or other similar credit arrangements, plus (iii) to the extent not already included under GAAP, any “off balance sheet” purchase,
repurchase, refinance or other similar credit arrangements, minus (iv) non-recourse debt. 
 “Trade
Assignment”: A letter substantially in the form of Exhibit B. 
 “Trade Price”: The price
(expressed as a percentage of the initial principal amount of the Security, as specified in the related Takeout Commitment) equal to 100% of the Applicable Agency TBA trade price. 

“Trade Principal”: An amount equal to the product of (a) the Trade Price and (b) the initial principal amount
of the related Security, as specified in the related Takeout Commitment. 
 “VA”: United States Department of
Veterans Affairs or any successor thereto. 
 “Warehouse Lender”: Any lender providing financing to Seller for
the purpose of originating or aggregating Mortgage Loans, which prior to the Purchase Date has a security interest in such Mortgage Loans as collateral for the obligations of Seller to such lender. 

“Warehouse Lender’s Release”: A warehouse lender’s release in substantially the form set forth in the
Custodial Agreement. 
 “Wire Instructions”: The wire instructions set forth opposite the name of the Warehouse
Lender in a letter, in the form of Exhibit 17 to the Custodial Agreement, executed by Seller and Custodian, receipt of which has been acknowledged by Purchaser. 
 Section 2. Procedures for Purchases of Participation Certificates. 

(a) Purchaser may, in its sole discretion from time to time until the Expiration Date, but shall have no obligation to, purchase one or
more Participation Certificates from Seller; provided, that the conditions set forth in Sections 10(a)(viii) and (ix) shall have been satisfied and the Aggregate Purchase Price of such Participation Certificates
owned by Purchaser at any given time shall not exceed the Aggregate Transaction Limit; provided further, that no Potential Default or Event of Default exists. In connection with Purchaser’s purchase of any such Participation
Certificate, Seller, on behalf of Purchaser, shall arrange for the Delivery to Purchaser of a Security backed by the Related Mortgage Loans, which Security shall be subject to a Takeout Commitment. The purchase of any Participation Certificate shall
be subject to (i) the receipt by Purchaser of the documents listed in Exhibit C from Seller, in form and substance satisfactory to Purchaser, together with such other information as Purchaser may reasonably request, (ii) the
execution of the Custodial Agreement relating to the Participation Certificate by Seller and Custodian and the Electronic Tracking Agreement relating to the Related Mortgage Loans by Seller, MERS and Electronic Agent, and delivery thereof to
Purchaser and (iii) Purchaser’s determination that it 

  

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has satisfactorily completed its due diligence review of Seller’s operations, business, financial condition and underwriting and origination of the Related Mortgage Loans, which review may
be conducted by Purchaser from time to time. In accordance with the provisions of the Electronic Tracking Agreement, the Seller shall, at its sole cost and expense, (1) cause each Related Mortgage Loan with respect to which a Participation
Certificate is to be sold to the Purchaser on a Purchase Date, the Mortgage for which is recorded in the name of MERS, to be designated a MERS Mortgage Loan and (2) cause the Purchaser to be designated an Associated Member (as defined in the
MERS Procedure Manual attached as Exhibit B to the Electronic Tracking Agreement) with respect to each such MERS Mortgage Loan. Notwithstanding the satisfaction of the conditions specified in this Section 2(a) or anything else herein or
in any other Program Document to the contrary, Purchaser is not obligated to purchase any Participation Certificate offered to it hereunder. 
 (b) If Purchaser elects to purchase any Participation Certificate, Purchaser shall pay (i) to Seller, or (ii) upon the receipt of a Warehouse Lender’s Release, to the applicable Warehouse
Lender, on the Purchase Date, the amount of the Purchase Price (less the Holdback Amount) for such Participation Certificate upon receipt of a duly executed and properly completed original Participation Certificate; provided that, if the Purchase
Price (less the Holdback Amount) is insufficient to pay the release amount due to the Warehouse Lender, Seller shall remit to Purchaser the difference between the Purchase Price (less the Holdback Amount) and such release amount and Purchaser shall
remit the full release amount to the Warehouse Lender. Effective upon execution and delivery of such Participation Certificate to Purchaser, Seller hereby assigns to Purchaser all of Seller’s right, title and interest in and to such
Participation Certificate and a 100% undivided beneficial interest in the Related Mortgage Loans. In the event that Purchaser does not transmit such payment, (i) any Participation Certificate delivered by Custodian to Purchaser in anticipation
of such purchase shall automatically be null and void, and (ii) Purchaser will not consummate the transactions contemplated in the applicable Trade Assignment. 
 (c) The terms and conditions of the purchase of each Participation Certificate shall be as set forth in this Agreement. Each Participation Certificate shall be deemed to incorporate, and Seller shall be
deemed to make as of the applicable dates specified in Section 9, for the benefit of Purchaser and each Assignee of such Participation Certificate, the representations and warranties set forth in Section 9. 

(d) Purchaser shall provide a Confirmation to Seller on or before the Purchase Date or as soon as practicable after the Purchase Date. In
the event of any conflict between the terms of a Confirmation and this Agreement, the Confirmation shall prevail. 
 (e) For the
avoidance of any doubt, it is hereby understood and agreed that Purchaser’s purchase of the beneficial ownership interest in and to Related Mortgage Loans, as evidenced by a Participation Certificate, shall include a 100% undivided beneficial
interest in all of the servicing rights relating to such Mortgage Loans. 
 (f) Seller may request a temporary increase of the
Aggregate Transaction Limit (a “Temporary Increase”) by submitting to Purchaser an executed request for Temporary Increase in the form of Exhibit J hereto (a “Request for Temporary Increase”), setting forth
the requested increased Aggregate Transaction Limit, the effective date and time of such Temporary Increase and the date and time on which such Temporary Increase shall terminate. Purchaser may from time to time, in its sole and absolute
discretion, consent to such Temporary Increase, which consent shall be in writing as evidenced by Purchaser’s delivery to Seller of a countersigned Request for Temporary Increase. At any time that a Temporary Increase is in effect (and
only for such time as such Temporary Increase is in effect), the Aggregate Transaction Limit and, if applicable, the Minimum Over/Under Account Balance, shall be increased by the amount of the Temporary Increase for all purposes of this Agreement
and all calculations and provisions relating to the Aggregate Transaction Limit, and, if applicable, the Minimum Over/Under Account Balance, shall refer to such increased amount. 

  

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 Section 3. Takeout Commitments. 

Seller hereby assigns to Purchaser, free of any security interest, lien, claim or encumbrance of any kind, Seller’s rights under
each Takeout Commitment to deliver the Security specified therein to the related Takeout Investor and to receive the purchase price therefor from such Takeout Investor. Subject to Purchaser’s rights hereunder, Purchaser agrees that it will
satisfy the obligation under the Takeout Commitment to deliver the Security to the Takeout Investor on the Settlement Date specified therein. Seller understands that, as a result of this Section 3 and each Trade Assignment, Purchaser
will succeed to the rights and obligations of Seller with respect to each Takeout Commitment subject to a Trade Assignment, and that in satisfying each such Takeout Commitment, Purchaser, will stand in the shoes of Seller and, consequently, will be
acting as a non-dealer in exercising its rights and fulfilling its obligations assigned pursuant to this Section 3 and each Trade Assignment. Each Trade Assignment delivered by Seller to Purchaser shall be delivered by Seller in a timely
manner sufficient to enable Purchaser to facilitate the settlement of the related trade on the trade date in accordance with Chapter 8 of the Securities Industry and Financial Markets Association’s Uniform Practices for the Clearance and
Settlement of Mortgage Backed Securities and other Related Securities, as amended from time to time. 
 Section 4.
Holdback Amount. 
 (a) Subject to the terms of this Agreement, Purchaser shall pay to Seller the Holdback Amount for
each Participation Certificate that Purchaser elects to purchase hereunder. The Holdback Amount with respect to a Participation Certificate shall be paid by Purchaser to Seller as provided in Section 4(b) below. 

(b) Subject to Section 5(b) and the Purchaser’s right of set-off set forth in Section 13, the Holdback
Amount relating to each Participation Certificate shall be paid by Purchaser to Seller not later than the Settlement Date of the related Security; provided, that on the date of any such payment to the Seller, the Holdback Amount shall
be (i) reduced by the positive difference (if any) between the Purchase Price Adjustment Amount and the Present Value Adjustment Amount with respect to such Participation Certificate or (ii) increased by the positive difference (if any)
between the Present Value Adjustment Amount and the Purchase Price Adjustment Amount with respect to such Participation Certificate. Notwithstanding any provision hereof to the contrary, no Holdback Amount shall be owed by Purchaser to Seller upon
issuance of any Security in the circumstances contemplated in Section 6(f) or if the related Security shall not be issued as a result of a Security Issuance Failure. No exercise by Purchaser of its rights under this
Section 4(b) shall relieve Seller of responsibility or liability for any breach of this Agreement. 
 (c) Upon
exercise by Purchaser of its remedies under Section 6(f), Purchaser’s obligation to pay and Seller’s right to receive any portion of the Holdback Amount relating to such Mortgage Loans shall automatically be canceled and become
null and void; provided, that such cancellation shall in no way relieve Seller or otherwise affect the obligation of Seller to indemnify and hold Purchaser harmless as specified in Section 14. At no time shall Seller have
any beneficial interest in the servicing rights with respect to Related Mortgage Loans while the related Participation Certificate is outstanding. 
 Section 5. Issuance of Securities. 

  

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 (a)    (i) In connection with the purchase of a Participation
Certificate, Seller shall instruct (and, if Seller fails to instruct, then Purchaser may instruct) Custodian to deliver to the Applicable Agency, the documents listed in Exhibit 16-A, 16-B or 16-C of the Custodial
Agreement, as applicable, in respect of the Related Mortgage Loans, in the manner and at the time set forth in the Custodial Agreement. Seller shall thereafter promptly deliver to the Applicable Agency any and all additional documents requested by
the Applicable Agency to enable the Applicable Agency to make Delivery to Purchaser of a Security backed by such Mortgage Loans on the related Anticipated Delivery Date. Seller shall not revoke such instructions to Custodian and shall not revoke its
instructions to the Applicable Agency to make Delivery to Purchaser or its designee of a Security backed by such Mortgage Loans. 
 (ii) Seller shall notify Purchaser, not later than 12:00 noon, Eastern Time, on the second (2nd) Business Day prior to the applicable Settlement Date (a) of the amount of any change in the principal
amount of the Mortgage Loans backing each such Security related to such Settlement Date and (b) with respect to FHLMC Securities, the FHLMC mortgage loan pool number applicable to each Security to which such Settlement Date relates. Upon
Delivery of such Security to Purchaser or its designee, Purchaser shall cease to have any interest under such Participation Certificate and in exchange shall have a 100% ownership interest in the related Security. It is understood and agreed that
for so long as Seller is subservicing Related Mortgage Loans, Seller shall retain only bare legal title (and not an equitable interest) in all such Mortgage Loans (other than MERS Mortgage Loans) for the sole purpose of subservicing such Mortgage
Loans on a servicing-released basis. 
 (b) If Delivery of a Security backed by the Mortgage Loans evidenced by a Participation
Certificate purchased hereunder has not occurred by 12:00 noon (Eastern Time), on the related Settlement Date as a result of a Security Issuance Failure, then subject to the exercise by Purchaser of its rights set forth in Section 4(c),
the Holdback Amount relating to such Participation Certificate shall be reduced on each day during the period from the Settlement Date to (but not including) the earlier of (x) the date of Delivery of such Security, and (y) the date of
satisfaction of the obligations of Seller pursuant to the exercise by Purchaser of any remedial election authorized by this Section 5, by an amount equal to the Daily Holdback Reduction Amount. The Holdback Amount (as reduced by the
applicable Daily Holdback Reduction Amounts) relating to such Participation Certificate, if any, shall not be payable until the end of the period specified in the preceding sentence. 

(c) If a breach by Seller of this Agreement results in any Related Mortgage Loan being a Defective Mortgage Loan on the Purchase Date of
the related Participation Certificate to Purchaser, Purchaser in its sole discretion may require Seller to, upon receipt of notice from Purchaser of its exercise of such right, either (x) immediately repurchase Purchaser’s beneficial
ownership interest in such Defective Mortgage Loan by remitting to Purchaser the allocable amount paid by Purchaser for such beneficial interest plus accrued interest at the rate specified in the related Mortgage Note on the principal amount thereof
from the date of Purchaser’s purchase of such Participation Certificate to the date of such repurchase together with any Losses suffered by Purchaser relating to such repurchase (including, without limitation, any Losses incurred by Purchaser
resulting from adjustments to the trade required by the Takeout Investor), or (y) deliver to Custodian a Mortgage Loan eligible to back such Security in exchange for such Defective Mortgage Loan, which newly delivered Mortgage Loan shall be in
all respects acceptable to Purchaser in Purchaser’s sole discretion, and such newly delivered Mortgage Loan will thereupon become one of the Related Mortgage Loans relating to the Participation Certificate. If the aggregate principal balance of
any Mortgage Loans that are accepted by Purchaser pursuant to clause (y) of the immediately preceding sentence is less than the aggregate principal balance of any Defective Mortgage Loan that is being replaced by such Mortgage Loan, Seller
shall remit with such Mortgage Loan to Purchaser an amount equal to the difference between the aggregate principal balance of the new Mortgage Loan accepted by Purchaser and the aggregate principal balance of the Defective Mortgage

  

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Loan being replaced thereby plus accrued interest on such Defective Mortgage Loan at the rate specified in the related Mortgage Note on the principal amount thereof from the Purchase Date of
Purchaser’s purchase of such Participation Certificate to the date of substitution. If any Related Mortgage Loan becomes thirty (30) or more days past due with respect to the first scheduled monthly payment due Purchaser after the date on
which such Related Mortgage Loan was originated and prior to the Anticipated Delivery Date, Seller shall repurchase the beneficial interest in such Related Mortgage Loan as if it were a Defective Mortgage Loan upon direction by Purchaser given no
later than one hundred twenty (120) days after the Purchase Date. 
 (d) No exercise by Purchaser of its rights under this
Section 5 shall relieve Seller of responsibility or liability for any breach of this Agreement. 
 Section 6.
Servicing of the Mortgage Loans; Events of Default. 
 (a) Upon payment of the Purchase Price (subject to
Section 4), Purchaser shall own a 100% undivided beneficial interest in the servicing rights related to the Related Mortgage Loans and all source files, documents, agreements and papers related to servicing the Related Mortgage Loans and
shall own all derivative information created by Seller or other third party used or useful in servicing such Mortgage Loans. Seller and Purchaser each agrees and acknowledges that a 100% undivided beneficial interest in Related Mortgage Loans shall
be sold to Purchaser on a servicing released basis, subject to the termination rights provided in this Agreement, including, without limitation, Section 6(f) of this Agreement, and that Purchaser is engaging, and Purchaser does hereby
engage, Seller to provide subservicing of each Related Mortgage Loan for the benefit of Purchaser (and any other registered holder of the related Participation Certificate) on the Purchase Date for each transaction. Seller shall have no further
servicing obligations or duties to Purchaser under the terms of this Agreement with respect to the Related Mortgage Loans upon issuance of the Security. 
 For so long as a Participation Certificate is outstanding, Seller shall neither assign, encumber or pledge its obligation to subservice the Related Mortgage Loans in whole or in part, nor delegate its
rights or duties under this Agreement without the prior written consent of Purchaser, the granting of which consent shall be in the sole discretion of Purchaser. Seller hereby acknowledges and agrees that (i) Purchaser is entering into this
Agreement in reliance upon Seller’s representations as to the adequacy of its financial standing, servicing facilities, personnel, records, procedures, reputation and integrity, and the continuance thereof; and (ii) Seller’s
engagement hereunder to provide mortgage servicing for the benefit of Purchaser (and any other registered holder of the Participation Certificate) is intended by the parties to be a “personal service contract” and Seller is hereunder
intended by the parties to be an “independent contractor”. 
 (b) Seller shall subservice and administer the Related
Mortgage Loans relating to a Participation Certificate on behalf of Purchaser in accordance with Accepted Servicing Practices. Seller shall have no right to modify or alter the terms of any Related Mortgage Loan or consent to the modification or
alteration of the terms of any Related Mortgage Loan except in Strict Compliance with the related Agency Program. Seller shall at all times maintain accurate and complete records of its servicing of the Related Mortgage Loans, and Purchaser may, at
any time during Seller’s business hours on reasonable notice, examine and make copies of such Servicing Records. Seller agrees that Purchaser is the 100% beneficial owner of all Servicing Records relating to the Related Mortgage Loans. Seller
covenants to hold such Servicing Records for the benefit of Purchaser and to safeguard such Servicing Records and to deliver them promptly to Purchaser or its designee (including the Custodian) at Purchaser’s request or otherwise as required by
operation of this Section 6. In addition, if Delivery of a Security is not made to Purchaser on or before the Anticipated Delivery Date, Seller shall deliver to Purchaser monthly reports regarding the status of those Related Mortgage
Loans for which a Security has 

  

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not yet been issued, which reports shall include, but shall not be limited to, a description of those Related Mortgage Loans in default for more than thirty (30) days, and such other
circumstances with respect to any Related Mortgage Loans (whether or not such Related Mortgage Loans are included in the foregoing list) that could materially adversely affect any of such Related Mortgage Loans, Purchaser’s beneficial interest
in such Related Mortgage Loans or the collateral securing any of such Related Mortgage Loans. Seller shall deliver such a report to Purchaser every thirty (30) days until (i) Delivery of the related Security to Purchaser or (ii) the
exercise by Purchaser of any remedial election pursuant to Section 5. In no event shall Seller delegate any of its subservicing duties hereunder to any other Person without first obtaining the prior written consent of Purchaser.

 (c) Seller, as servicer, shall establish and maintain with Purchaser a separate custodial account (the “Custodial
Account”) entitled “Stonegate Mortgage Corporation Custodial Account, for the benefit of Bank of America, N.A. and its assignees under the Mortgage Loan Participation Purchase and Sale Agreement dated as of June 24, 2013” and
shall promptly deposit into such account in the form received, with any necessary endorsements, all collections received in respect of the Related Mortgage Loans relating to Participation Certificates purchased by Purchaser hereunder. 

(d) Amounts deposited in the Custodial Account with respect to any Related Mortgage Loan relating to Participation Certificates purchased
by Purchaser hereunder shall be held for the benefit of Purchaser and shall be released only as follows: 
 (i)
Except as otherwise provided in Section 6(d)(ii), upon either (x) the Settlement Date (unless there is a Security Issuance Failure) or (y) if earlier, on the date required by the Applicable Agency Guide, amounts deposited in
the Custodial Account shall be released to Seller. Notwithstanding the foregoing, all amounts relating to Participation Certificates purchased by Purchaser hereunder and deposited in the Custodial Account shall be released to Seller upon the
Settlement Date of the related Security (unless there is a Security Issuance Failure) only if, and to the extent that, the amounts due and payable to Purchaser hereunder have been set-off against the Purchase Price for the Related Participation
Certificate or the Holdback Amount. The amounts paid to Seller (if any) pursuant to this Section 6(d)(i) shall constitute Seller’s sole compensation for subservicing the Related Mortgage Loans as provided in this
Section 6. 
 (ii) If Successor Servicer takes delivery of such Mortgage Loans either under the
circumstances set forth in Section 6(f) or otherwise, all amounts deposited in the Custodial Account shall be paid to Purchaser promptly upon such delivery. 

(iii) If a Security is not issued solely as a result of a Security Issuance Failure during the month in which the related
Settlement Date occurs, in any period thereafter during which Seller remains as subservicer, all amounts deposited in the Custodial Account shall be released only in accordance with Purchaser’s written instructions. 

(e) Purchaser (or any other registered holder of the Related Participation Certificate) shall be entitled to (i) retain all Holdback
Amounts in accordance with Section 4, and all amounts on deposit in the Over/Under Account in accordance with Section 11, (ii) declare all amounts payable by Seller to Purchaser hereunder to be immediately due and
payable, (iii) effect termination of Seller’s subservicing rights and obligations respecting the affected Related Mortgage Loans as provided in Section 6(f), (iv) take possession of the Related Mortgage Loans, including
any records that pertain thereto, (v) proceed against Seller for any deficiencies, and (vi) pursue any other rights and/or remedies available at law or in equity against Seller, upon the occurrence of any of the following circumstances or
events (“Events of Default”): 

  

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 (i) any failure by Seller to remit to Purchaser (or other registered holder
of the Participation Certificate) when due any payment required to be made under the terms of this Agreement or such Participation Certificate; or 
 (ii) failure by Seller duly to observe or perform in any material respect (a) Seller’s covenants in Section 10(j), or (b) any of Seller’s other covenants or agreements set
forth in this Agreement or in any other Program Document which, in the case of this clause (b), continues unremedied for a period of three (3) Business Days (or such longer period provided in the relevant notice to Seller) after the date on
which written notice of such failure, requiring the same to be remedied, shall have been given to Seller by Purchaser; or 
 (iii) any representation, warranty or certification made or deemed made herein or in any other Program Document by Seller or any certificate furnished to Purchaser pursuant to the provisions thereof,
shall prove to have been false or misleading in any material respect as of the time made or furnished; or 

(iv) an Act of Insolvency with respect to Seller, any of its Affiliates or any Parent Company; or 

(v) Seller ceases to meet the qualifications for maintaining all Approvals, such Approvals are revoked or such Approvals
are materially modified; or 
 (vi) Seller attempts to assign its right to servicing compensation hereunder or
to resell an ownership interest in a Related Mortgage Loan in a manner inconsistent with the terms hereof, or Seller attempts without the consent of Purchaser to sell or otherwise dispose of all or substantially all of its property or assets or to
assign this Agreement or the servicing responsibilities hereunder or to delegate its duties hereunder or any portion thereof (to other than a subservicer); or 
 (vii) a Material Adverse Effect shall have occurred with respect to Seller or any of its Affiliates; or 
 (viii) Seller’s membership in MERS is terminated for any reason or Seller shall fail to enter into the Electronic Tracking Agreement with the Purchaser; or 

(ix) Seller shall default under, or fail to perform as requested under, or shall otherwise materially breach the terms of
any Program Document and such default, failure or breach continues beyond the expiration of any applicable grace period; or Seller shall otherwise purport to disavow its obligations under any Program Document or shall contest the validity or
enforceability of any Program Document or Purchaser’s interests in any Related Mortgage Loan or Security purchased hereunder; 
 (x) Seller or any of its Affiliates shall default under, or fail to perform as required under, or shall otherwise breach the terms of any instrument, agreement or contract between Seller or such other
entity, on the one hand, and Purchaser or any of Purchaser’s Affiliates on the other; or Seller or any Affiliate of Seller shall default under, or fail to perform as requested under, the terms of any repurchase agreement, loan and security
agreement or similar credit facility or agreement for borrowed funds entered into by Seller or such other entity and any third party, which default or failure entitles any party to require acceleration or prepayment of any indebtedness thereunder;

  

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 (xi) failure by the Seller to be in compliance with the “doing
business” or licensing laws of any jurisdiction where a Mortgaged Property is located; or 
 (xii) in the
event of a Security Issuance Failure. 
 (f) Purchaser, in its sole discretion, may terminate Seller’s rights and
obligations as subservicer of the affected Related Mortgage Loans and require Seller to deliver the related Servicing Records to Purchaser or its designee upon the occurrence of (i) an Event of Default, (ii) Seller’s failure to comply
with any of its obligations set forth in Section 5(c), or (iii) Seller’s breach of Sections 9(a)(viii) or 9(b)(ix), by delivering written notice to Seller requiring such termination. Such termination shall be
effective upon Seller’s receipt of such written notice; provided, that Seller’s subservicing rights shall be terminated immediately upon the occurrence of any event described in Section 6(e)(iv), regardless of
whether notice of such event shall have been given to or by Purchaser or Seller. Upon any such termination, all authority and power of Seller respecting its rights to subservice and duties under this Agreement relating thereto, shall pass to and be
vested in the Successor Servicer appointed by Purchaser and Purchaser is hereby authorized and empowered to transfer such rights to subservice the Related Mortgage Loans for such price and on such terms and conditions as Purchaser shall reasonably
determine; provided, that to the extent the Applicable Agency proceeds to issue a Security with respect to the Related Mortgage Loans, Purchaser shall convey the servicing rights and the rights to subservice such Mortgage Loans in
accordance with such Applicable Agency’s instructions. Seller shall promptly take such actions and furnish to Purchaser such documents that Purchaser deems necessary or appropriate to enable Purchaser to obtain a Security backed by such
Mortgage Loans or to enforce such Mortgage Loans, as appropriate, and shall perform all acts and take all actions so that the Related Mortgage Loans and all files and documents relating to such Mortgage Loans held by Seller, together with all escrow
amounts relating to such Mortgage Loans, are delivered to Successor Servicer, including but not limited to preparing, executing and delivering to the Successor Servicer any and all documents and other instruments, placing in the Successor
Servicer’s possession all Servicing Records pertaining to such Mortgage Loans and doing or causing to be done, all at Seller’s sole expense. To the extent that the approval of the Applicable Agency is required for any such sale or
transfer, Seller shall fully cooperate with Purchaser to obtain such approval. All amounts paid by any purchaser of such rights to service or subservice the Related Mortgage Loans shall be the property of Purchaser. The subservicing rights required
to be delivered to Successor Servicer in accordance with this Section 6(f) shall be delivered free of any servicing rights in favor of Seller or any third party (other than Purchaser) and free of any title, interest, lien, encumbrance or
claim of any kind of Seller other than bare legal title to the Mortgage Loans. No exercise by Purchaser of its rights under this Section 6(f) shall relieve Seller of responsibility or liability for any breach of this Agreement.

 Section 7. Transfers of Participation Certificates and Securities by Purchaser. Purchaser may, in its sole
discretion and without the consent of Seller, assign all of its right, title and interest or grant a security interest in any Participation Certificate and the related servicing rights, each Security in respect thereof of which Delivery is made to
Purchaser and all rights of Purchaser under this Agreement (including, but not limited to, the Custodial Account) in respect of such Participation Certificate and such Security, to any person (an “Assignee”), subject only to an
obligation on the part of the Assignee to deliver each such Security to the Takeout Investor or to Purchaser to permit Purchaser or its designee to make delivery thereof to the Takeout Investor. Assignment by Purchaser of a Participation Certificate
and the related servicing rights as provided in this Section 7 will not release Purchaser from its obligations otherwise under this Agreement. 
 Without limitation of the foregoing, an assignment of a Participation Certificate and the related servicing rights to an Assignee, as described in this Section 7, shall be effective upon
delivery of the Participation Certificate to the Assignee or its designee, together with a duly executed Assignment substantially in the form of Exhibit E (with a copy to Seller). 

  

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 Section 8. Record Title to Mortgage Loans; Intent of Parties; Security Interest.

 (a) From and after the issuance and delivery of the Related Participation Certificate, and subject to the remedies of
Purchaser in Section 5, Seller as subservicer shall remain the last named payee or endorsee of each Mortgage Note and the mortgagee or assignee of record of each Mortgage (except with respect to any MERS Mortgage Loan) and shall retain
only bare legal title (and not an equitable interest) in the Related Mortgage Loan, all for the benefit of Purchaser for the sole purpose of facilitating the subservicing of such Mortgage Loan and the issuance of a Security backed by such Mortgage
Loan. Where Seller has appointed FHLMC as Custodian, the parties hereto acknowledge that the Mortgage Notes acquired hereunder have been deposited with FHLMC to facilitate the issuance of FHLMC Securities with respect thereto and that prior to such
issuance FHLMC is holding such Mortgage Notes as Custodian for Purchaser. 
 (b) Seller shall maintain a complete set of books
and records for each Related Mortgage Loan which shall be clearly marked to reflect the beneficial ownership interest in each Related Mortgage Loan of the holder of the Related Participation Certificate. Seller shall notify MERS of the beneficial
ownership interest of Purchaser in each MERS Mortgage Loan through the MORNET system or any other comparable system acceptable to MERS. 
 (c) Purchaser and Seller confirm that the transactions contemplated herein are intended to be sales of the Participation Certificates by Seller to Purchaser rather than borrowings secured by the
Participation Certificates. In the event, for any reason, any transaction is construed by any court or regulatory authority as a borrowing rather than as a sale, Seller and Purchaser intend that Purchaser or its Assignee, as the case may be, shall
have a perfected first priority security interest in Seller’s interest in the Participation Certificates, all of the servicing rights with respect to the Related Mortgage Loans, the Custodial Account and all amounts on deposit therein, the
Related Mortgage Loans subject to each Participation Certificate, all documents, records (including Servicing Records), instruments and data evidencing the Related Mortgage Loans and the servicing thereof, the Securities to be issued as contemplated
hereunder and all proceeds thereof, the Takeout Commitments, any funds of the Seller at any time deposited or held in the Over/Under Account and the proceeds of any and all of the foregoing (collectively, the “Collateral”), free and
clear of adverse claims. In any case, Seller hereby grants to Purchaser or its Assignee, as the case may be, a first priority security interest in and lien upon the Collateral, free and clear of adverse claims. This Agreement shall constitute a
security agreement, the Custodian shall be deemed to be an independent custodian for purposes of perfection of the security interest herein granted to Purchaser, and Purchaser or each such Assignee shall have all of the rights of a secured party
under applicable law. Without limiting the generality of the foregoing and for the avoidance of doubt, if any determination is made that the servicing rights with respect to the Related Mortgage Loans were not sold by Seller to Purchaser or that
that such servicing rights are not an interest in the Related Mortgage Loans and are severable from the Related Mortgage Loans despite Purchaser’s and Seller’s express intent herein to treat them as included in the purchase and sale
transaction, Seller hereby expressly pledges, assigns and grants to Purchaser a continuing first priority security interest in and lien upon the servicing rights and all documentation and rights to receive documentation related to such servicing
rights and the servicing of each of the Related Mortgage Loans (the “Related Credit Enhancement”). The Collateral and Related Credit Enhancement is hereby pledged as further security for Seller’s obligations to Purchaser
hereunder. 
 (d) Upon request of Purchaser, Seller shall prepare and deliver to MERS an Assignment of Mortgage from MERS to
Purchaser or its designee. Upon due execution by MERS, Seller shall cause such Assignment of Mortgage to be recorded in the public land records upon request of Purchaser. 

  

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 Section 9. Representations and Warranties. 

(a) Seller hereby represents and warrants to Purchaser as of the date hereof and with the respect to the Related Mortgage Loans as of the
date of each issuance and delivery of a Participation Certificate that: 
 (i) The consideration received by
Seller upon the sale of each Participation Certificate will constitute reasonably equivalent value and fair consideration for the beneficial ownership interest in the Mortgage Loans evidenced by that Participation Certificate; 

(ii) Seller is duly organized and validly existing under the laws of the jurisdiction of its organization, has the full
legal power and authority and has all governmental licenses, authorizations, consents and approvals, necessary to own its property and to carry on its business (including servicing) as currently conducted, and is duly qualified to do business and is
in good standing in each jurisdiction in which the transaction of its business (including servicing) makes such qualification necessary. Seller has the authority under its certificate of incorporation, bylaws and applicable law to enter into this
Agreement and each of the other Program Documents and to perform all acts contemplated hereby and thereby or in connection herewith and therewith. This Agreement and each other Program Document and the transactions contemplated hereby and thereby
have been approved by the Board of Directors of Seller. Seller has taken all action necessary to make this Agreement and each other Program Document its valid and binding obligation enforceable in accordance with the terms hereof; 

(iii) The execution, delivery and performance by Seller of this Agreement, each other Program Document, and the
transactions contemplated hereby and thereby, are within Seller’s corporate powers, have been duly authorized by all necessary corporate action and will not result in the breach of any provision of the charter or by-laws of Seller 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 Seller, the Related Mortgage Loans
or any of Seller’s property is subject, or result in the violation of any law, rule, regulation, order, judgment or decree to which Seller, the Related Mortgage Loans or Seller’s property is subject. Without limiting the generality of the
foregoing, the consummation of the transactions contemplated herein or therein will not violate any policy, regulation or guideline of the FHA or VA or result in the voiding or reduction of the FHA insurance, VA guarantee or any other insurance or
guarantee in respect of any Related Mortgage Loan, or otherwise render such Mortgage Loans, individually or in the aggregate, ineligible (pursuant to the applicable Agency Guide or otherwise) for inclusion in a pool of mortgages supporting a
Security, and such FHA insurance or VA guarantee is in full force and effect or shall be in full force and effect as required by the applicable Agency Guide; 
 (iv) This Agreement, each other Program Document and every document to be executed by Seller pursuant to this Agreement is and will be valid, binding and subsisting obligations of Seller, enforceable in
accordance with their respective terms, except that the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally. No consents or approvals are
required to be obtained by Seller or its Parent Company, if any, for the execution, delivery and performance of this Agreement or the Custodial Agreement by Seller; 

  

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 (v) Seller has not sold, assigned, transferred, pledged or hypothecated any
interest in any Participation Certificate or Related Mortgage Loan (except to any Warehouse Lender which provides a Warehouse Lender’s Release) to any person other than Purchaser, and upon delivery of a Participation Certificate to Purchaser,
Purchaser will be the sole owner thereof, free and clear of any lien, claim or encumbrance; 
 (vi) Neither this
Agreement nor any representations and warranties or information relating to Seller that Seller has delivered or caused to be delivered to Purchaser, including, but not limited to, all documents related to this Agreement, each other Program Document
or Seller’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; 
 (vii) 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 Seller’s knowledge, threatened against or affecting Seller (or, to Seller’s knowledge, any basis therefor) wherein an unfavorable decision, ruling or finding would adversely affect the
validity or enforceability of this Agreement, each other Program Document or any agreement or instrument to which Seller 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 Seller in connection herewith or would or could materially and adversely affect Seller’s ability to carry out its obligations hereunder; 

(viii) To the extent Seller has previously received the applicable Approval, Seller has all requisite Approvals. Seller
has not received from any Applicable Agency, HUD, FHA or VA a notice of extinguishment or a notice indicating material breach, material default or material non-compliance which Purchaser could reasonably determine is reasonably likely to entitle
such Applicable Agency or HUD, FHA or VA to terminate or suspend Seller or to have a Material Adverse Effect, or a notice from any Applicable Agency, HUD, FHA or VA indicating any adverse fact or circumstance in respect of Seller which Purchaser
could reasonably determine is reasonably likely to entitle such Applicable Agency or HUD, FHA or VA, as the case may be, to revoke any Approval or otherwise terminate, suspend Seller as an approved issuer, seller or servicer, as applicable, or with
respect to which such adverse fact or circumstance has caused any Applicable Agency, HUD, FHA or VA to terminate Seller. Seller has not received from any Applicable Agency, HUD, FHA or VA a notice of a sanction or a levy of penalties against
the Seller which Purchaser could reasonably determine is reasonably likely to have a Material Adverse Effect; 

(ix) The Custodian is not an Affiliate of Seller; and 

(x) The Agreement, each other Program Document, any other document contemplated hereby or thereby and each transaction
have not been entered into fraudulently by Seller hereunder or the Custodian, or with the intent to hinder, delay or defraud any creditor or Purchaser. 
 (b) Seller hereby represents and warrants to Purchaser with respect to each Related Mortgage Loan as of the date of the Purchase Date in respect of the Related Participation Certificate that: 

  

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 (i) Such Mortgage Loan was, immediately prior to the sale to Purchaser of
the Related Participation Certificate, owned solely by Seller, is not subject to any lien, claim or encumbrance (other than the lien of a Warehouse Lender), including, without limitation, any such interest pursuant to a loan or credit agreement for
warehousing mortgage loans, and was originated and serviced in accordance with all applicable law and regulations, including without limitation the Federal Truth-in-Lending Act, the Real Estate Settlement Procedures Act, regulations issued pursuant
to any of the aforesaid, and any and all rules, requirements, guidelines and announcements of the Applicable Agency, and, as applicable, the FHA and VA, as the same may be amended from time to time; 

(ii) The improvements on the land securing such Mortgage Loan are and will be kept insured at all times by responsible
insurance companies reasonably acceptable to Purchaser against fire and extended coverage hazards under policies, binders or certificates of insurance with a standard mortgagee clause in favor of Seller and its assigns, providing that such policy
may not be canceled without prior notice to Seller. Any proceeds of such insurance shall be held in trust for the benefit of Purchaser. The scope and amount of such insurance shall satisfy the rules, requirements, guidelines and announcements of the
Applicable Agency, and shall in all cases be at least equal to the lesser of (A) the principal amount of such Mortgage Loan or (B) the maximum amount permitted by applicable law, and shall not be subject to reduction below such amount
through the operation of a coinsurance, reduced rate contribution or similar clause; 
 (iii) Each Mortgage is a
valid first Mortgage lien on the Mortgaged Property and is covered by an attorney’s opinion of title acceptable to the Applicable Agency or by a policy of title insurance on a standard ALTA or similar lender’s form in favor of Seller and
its assigns, subject only to exceptions permitted by the applicable Agency Program. Seller shall hold for the benefit of Purchaser such policy of title insurance, and, upon request of Purchaser, shall immediately deliver such policy to Purchaser or
to the Custodian on behalf of Purchaser; 
 (iv) To the extent applicable, such Mortgage Loan is either insured
by the FHA under the National Housing Act, guaranteed by the VA under the Servicemen’s Readjustment Act of 1944 or is otherwise insured or guaranteed in accordance with the requirements of the applicable Agency Program and is not subject to any
defect that would prevent recovery in full or in part against the FHA, VA or other insurer or guarantor, as the case may be; 
 (v) Such Mortgage Loan is in Strict Compliance with the requirements and specifications (including, without limitation, all representations and warranties required in respect thereof) set forth in the
applicable Agency Guide; 
 (vi) Such Mortgage Loan conforms in all respects with all requirements of the
Takeout Commitment applicable to the Security to be backed by such Mortgage Loan. Each Takeout Commitment is valid and enforceable and Seller has no knowledge that Takeout Investor will not be able to perform under the terms of such Takeout
Commitment; 
 (vii) With respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such MIN is
accurately provided on the schedule of Mortgage Loans attached to the Related Participation Certificate; 

(viii) With respect to each MERS Mortgage Loan, Seller has not received any notice of liens or legal actions with respect
to such Mortgage Loan and no such notices have been electronically posted by MERS; 

  

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 (ix) To the extent applicable, each Mortgage Loan is being serviced by a
mortgage sub-servicer having all Approvals necessary to make such Mortgage Loan eligible to back a GNMA Security, FNMA Security, or FHLMC Security, as applicable; 

(x) Each Mortgage Loan is eligible for sale to the Applicable Agency, and fully complies with all of the terms and
conditions, including any covenants, representations and warranties, in the applicable Agency Guide; 
 (xi) No
servicing agreement has been entered into with respect to the Mortgage Loan, or any such servicing agreement has been terminated and there are no restrictions, contractual or governmental, which would impair the ability of Purchaser or
Purchaser’s designees from servicing the Mortgage Loans; and 
 (xii) The Purchase Price of the
Participation Certificate to which such Mortgage Loan relates, when added to the Aggregate Purchase Price, does not exceed, the Aggregate Transaction Limit. 
 The representations and warranties of Seller in this Section 9 are unaffected by and supersede any provision in any endorsement of any Related Mortgage Loan or in any assignment with respect
to such Mortgage Loan to the effect that such endorsement or assignment is without recourse or without representation or warranty. 
 Section 10. Covenants of Seller. Seller hereby covenants and agrees with Purchaser for so long as any Participation Certificate remains outstanding as follows: 

(a) Seller shall deliver to Purchaser: 
 (i) Within ninety (90) days after the end of each fiscal year of Seller, the consolidated balance sheets of Seller and its consolidated Subsidiaries, which will be in conformity with GAAP, and the
related consolidated statements of income showing the financial condition of Seller and its consolidated Subsidiaries as of the close of such fiscal year and the results of operations during such year, and a consolidated statement 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 report (acceptable in
form and content to Purchaser) of, an independent public accountant of national standing acceptable to Purchaser and are to be accompanied by a letter of management in form and substance acceptable to Purchaser; 

(ii) Within forty-five (45) days after the end of each calendar month, unaudited consolidated balance sheets and
consolidated statements of income, all to be in a form acceptable to Purchaser, showing the financial condition and results of operations of Seller 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, in each case, in comparative form the corresponding figures for the corresponding periods of the preceding fiscal year, certified by a financial officer of Seller (acceptable to Purchaser)
as presenting fairly the financial position and results of operations of Seller 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;

  

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 (iii) Promptly upon receipt thereof, a copy of each other report submitted
to Seller by its independent public accountants in connection with any annual, interim or special audit of Seller; 
 (iv) Promptly upon becoming aware thereof (but in no event later than three (3) Business Days after becoming aware), written notice, in reasonable detail of: 

 

	 	(1)	any action, suit or proceeding instituted by or against Seller in any federal or state court or before any commission or other regulatory body (federal, state or local,
foreign or domestic), or any such action, suit or proceeding threatened against Seller, in any case, if such action, suit or proceeding, or any such action, suit or proceeding threatened against Seller, (i) involves a potential liability, on an
individual or aggregate basis, equal to or greater than ten percent (10%) of Seller’s Tangible Net Worth, (ii) is reasonably likely to result in a Material Adverse Effect if determined adversely, or (iii) questions or challenges
the validity or enforceability of any of the Program Documents; 

  

	 	(2)	the filing, recording or assessment of any material federal, state or local tax lien against it, or any of its assets; 

 

	 	(3)	the occurrence of any Potential Default or any Event of Default; 

  

	 	(4)	the actual or threatened suspension, revocation or termination of any of Seller’s Approvals or upon Seller becoming aware of any penalties, sanctions or charges
levied, or threatened to be levied, against Seller or any change or threatened change in Approval status, or the commencement of any investigation, or the institution of any adverse action or the written threat of institution of any adverse action
against Seller by any Applicable Agency, HUD, FHA or VA or any other agency, or any supervisory or regulatory governmental entity supervising or regulating the origination or servicing of mortgage loans by, or the issuer or seller status of, Seller;

  

	 	(5)	the suspension, revocation or termination of any existing credit or investor relationship to facilitate the sale and/or origination of residential mortgage loans, where
the amount or amounts of credit or investment involved exceed(s) $1,000,000; 

  

	 	(6)	the filing of any registration statements or other “corporate finance” SEC filing (other than 8-Ks, 10-Ks, 10-Qs and proxy statements) by the Parent Company
or any of its Affiliates along with a copy of such filing; 

  

	 	(7)	any Related Mortgage Loan is or becomes a Defective Mortgage Loan; 

  

	 	(8)	any Takeout Investor threatens to set-off any amounts owed by Seller to such Takeout Investor exceeding $250,000 in the aggregate against the purchase proceeds owed by
the Takeout Investor to Purchaser; 

  

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	 	(9)	any other action, event or condition of any nature that could reasonably be expected to result in a Material Adverse Effect with respect to Seller or that, with notice
or lapse of time or both, would constitute a default under any material agreement, instrument or indenture to which Seller is a party or to which Seller, its properties or assets may be subject; 

 

	 	(10)	any (i) change to the location of its chief executive office/chief place of business from that which exists on the date of this Agreement, (ii) change in the
name, identity or existence as a corporation or change in the location where Seller maintains its records with respect to the Related Mortgage Loans, or (iii) reincorporation or reorganization of Seller under the laws of another jurisdiction;

  

	 	(11)	upon Seller becoming aware of any termination or threatened termination by any Applicable Agency of the Custodian as an eligible custodian; 

 

	 	(12)	any change to the date on which Seller’s fiscal year begins from Seller’s current fiscal year beginning date; and 

 

	 	(13)	any material change in respect of any secondary marketing, underwriting, third party origination and interest rate risk management practices of Seller. By way of
example but not limitation, any change to Seller’s hedging strategy, any change to add a new line of mortgage loan products or any change to add third party origination shall be considered material change. 

(v) Promptly upon becoming available, copies of all financial statements, reports, notices and proxy statements sent by
its Parent Company, Seller or any of Seller’s consolidated Subsidiaries in a general mailing to their respective stockholders and of all reports and other material (including copies of all registration statements under the Securities Act of
1933, as amended) filed by any of them with any securities exchange or with the SEC or any Governmental Authority succeeding to any or all of the functions of the SEC; 

(vi) Promptly upon becoming available, copies of any press releases issued by its Parent Company or Seller and copies of
any annual and quarterly financial reports and any reports on Form H-(b)12 which its Parent Company or Seller may be required to file with the SEC, the FDIC or the OCC or comparable reports which a Parent Company or Seller may be required to file
with the SEC, the FDIC or the OCC or any other federal banking agency containing such financial statements and other information concerning such Parent Company’s or Seller’s business and affairs as is required to be included in such
reports in accordance with the rules and regulations of the SEC, the OCC, the FDIC or such other banking agency, as may be promulgated from time to time; 
 (vii) Such supplements to the aforementioned documents and such other information regarding the operations, business, affairs and financial condition of its Parent Company, Seller or any of Seller’s
consolidated Subsidiaries as Purchaser may request; 
 (viii) Prior to the first Purchase Date hereunder and at
the request of Purchaser at any time thereafter: 

  

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	 	(1)	A copy of an Officer’s Certificate in the form attached hereto as Exhibit G together with (1) the articles of incorporation of Seller and any
amendments thereto, certified by the Secretary of State of Seller’s state of incorporation, (2) a copy of Seller’s by-laws, together with any amendments thereto, and (3) a copy of the resolutions adopted by Seller’s Board of
Directors authorizing Seller to enter into this Agreement and the Custodial Agreement and authorizing one or more of Seller’s officers to execute the documents related to this Agreement and the Custodial Agreement. 

 

	 	(2)	An opinion of Seller’s counsel as to such matters as Purchaser may reasonably request (including, without limitation, with respect to Purchaser’s first
priority lien on and perfected security interest in the Related Mortgage Loans, a no material litigation, non-contravention, enforceability and corporate opinion with respect to Seller, an opinion with respect to the inapplicability of the
Investment Company Act to Seller, an opinion that this Agreement constitutes a “securities contract” within the meaning of the Bankruptcy Code and an opinion that no transaction constitutes an avoidable transfer under Section 546(e)
of the Bankruptcy Code), in form and substance acceptable to Purchaser and from nationally recognized counsel acceptable to Purchaser. 

  

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

(ix) On each Purchase Date hereunder, Seller shall provide to Purchaser an Officer’s Certificate in the form
attached hereto as Exhibit H. 
 (x) Together with the financial statements required to be delivered
pursuant to Section 10(a)(i) and Section 10(a)(ii) Seller shall deliver to Purchaser an Officer’s Certificate in the form attached hereto as Exhibit I. 

(b) Neither Seller nor any affiliate thereof will acquire at any time any Participation Certificate or any other economic interest in or
obligation with respect to any Related Mortgage Loan except for the subservicing rights relating thereto and bare legal title to the Related Mortgage Loans. 
 (c) Seller shall provide Purchaser with written notice prior to entering into any mortgage financing facilities (including warehouse, repurchase, purchase, off-balance sheet or other similar credit
facilities) with any Person (other than Purchaser). 
 (d) Seller will be solvent at all relevant times prior to, and will not
be rendered insolvent by, any sale of a Participation Certificate to Purchaser. 
 (e) Seller will not sell any Participation
Certificate to Purchaser with any intent to hinder, delay or defraud any of Seller’s creditors. 

  

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 (f) Seller shall take all necessary actions to maintain its Approvals at all times during
the term of this Agreement. If, for any reason, Seller ceases to maintain such Approvals, Seller shall so notify Purchaser immediately. 
 (g) Seller will comply in all material respects with all laws, rules and regulations to which it is or may become subject. 
 (h) Seller shall, upon request of Purchaser, promptly execute and deliver to Purchaser all such other and further documents and instruments of transfer, conveyance and assignment, and shall take such
other action as Purchaser may require more effectively to transfer, convey, assign to and vest in Purchaser and to put Purchaser in possession of the property to be transferred, conveyed, assigned and delivered hereunder and otherwise to carry out
more effectively the intent of the provisions under this Agreement. 
 (i) The Seller is a member of MERS in good standing and
current in the payment of all fees and assessments imposed by MERS, and has complied with all rules and procedures of MERS. In connection with the assignment of any Related Mortgage Loan registered on the MERS System, the Seller agrees that at the
request of the Purchaser it will, at the Seller’s own cost and expense, cause the MERS System to indicate that a beneficial interest in such Mortgage Loan has been transferred to the Purchaser in accordance with the terms of this Agreement by
including in MERS’ computer files (a) the code in the field which identifies the specific owner of the Related Mortgage Loans and (b) the code in the field “Pool Field” which identifies the series in which such Mortgage
Loans were sold. The Seller further agrees that it will not alter codes referenced in this paragraph with respect to any Related Mortgage Loan at any time that such Mortgage Loan is subject to this Agreement, and the Seller shall retain its
membership in MERS at all times during the term of this Agreement. 
 (j) Seller shall comply with the following financial
covenants: 
 (i) Seller shall maintain a Tangible Net Worth of not less than the greater of
(x) $35,000,000 plus 50% of all positive Net Income, (y) 2.50% of the Aggregate Rate Locks and (z) 5.00% of Seller’s outstanding Recourse Debt; 

(ii) Seller’s Stockholder’s Equity shall not decline by more than (a) 10% in any fiscal quarter, or
(b) 15% in any fiscal year; 
 (iii) Seller shall at all times maintain Liquidity in an amount not less
than the greater of (x) $10,000,000, (y) 0.75% of the Aggregate Rate Locks and (z) 1.50% of Seller’s outstanding Recourse Debt; 
 (iv) the maximum ratio of Seller’s Total Liabilities to Tangible Net Worth shall not at any time be greater than 15:1; 

(v) Seller shall show positive pre-tax Net Income, on a quarterly basis, as determined in accordance with GAAP; and

 (vi) at no time shall Seller’s Compare Ratio with respect to its DE Compare Report and Institution
Compare Report exceed 175%, which will cause Seller to be on HUD’s watch list for approved lenders. 
 (k) Seller and
Purchaser each agree that should Seller or any Affiliate thereof enter into a repurchase agreement, warehouse facility, guaranty or similar credit facility with any Person 

  

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(including, without limitation, Purchaser or any of its Affiliates) which by its terms provides more favorable terms with respect to any financial covenants or margin maintenance requirements to
the lender thereunder than the financial covenants set forth herein above (each, a “More Favorable Agreement”), then the terms of this Agreement shall be deemed automatically amended to include such more favorable terms contained in such
More Favorable Agreement, such that such terms operate in favor of Purchaser or an Affiliate of Purchaser; provided, that in the event that such More Favorable Agreement is terminated, upon notice by Seller to Purchaser of such termination, the
original terms of this Agreement shall be deemed to be automatically reinstated. Seller and Purchaser further agree to execute and deliver any new guaranties, agreements or amendments to this Agreement evidencing such provisions; provided, that the
execution of such guaranties, agreements or amendments shall not be a precondition to the effectiveness of such guaranties, agreements or amendments, but shall merely be for the convenience of the parties hereto. Further, at the request of
Purchaser, Seller shall promptly provide Purchaser with its financial covenants and any other covenants that Purchaser deems material under any such current, future or modified third party agreement and/or copies of any personal and/or corporate
guaranties required in connection with such third party agreement; provided, that Seller shall be required to document the forgoing disclosures to Purchaser only to the extent permitted under the confidentiality terms of any such third party
agreement. 
 (l) Seller may, without the prior written consent of Purchaser, declare and pay dividends to its shareholders,
members, partners or owners provided that a Potential Default or an Event of Default is not existing and will not occur as a result. 
 (m) With respect to Seller’s risk strategy, Seller shall retain the services of a nationally recognized risk management firm acceptable to Purchaser to manage such risk analytics. Any material
changes to Seller’s secondary marketing risk management process or to risk management firms shall be subject to Purchaser’s prior written approval. 
 Section 11. Over/Under Account. 
 (a) Seller shall at all times
maintain a balance in the Over/Under Account of not less than the Minimum Over/Under Account Balance. The Over/Under Account shall be used to assist in settling Seller’s payment obligations to Purchaser under this Agreement. Purchaser shall not
be required to segregate and hold funds deposited by or on behalf of Seller in the Over/Under Account separate and apart from Purchaser’s own funds or funds deposited by or held for others. Upon the occurrence of a Potential Default or an Event
of Default, Purchaser shall have the right to increase the Minimum Over/Under Account Balance Seller is required to maintain in the Over/Under Account by giving notice to Seller thereof. If Seller fails to deposit funds in the Over/Under Account to
comply with any such required increase within the time frame required by Purchaser, Purchaser shall have the right to retain in the Over/Under Account any amounts received by Purchaser on behalf of Seller or otherwise credited to the Over/Under
Account to comply with any such required increase, including, without limitation, any purchase proceeds received by Purchaser from any Takeout Investor pursuant to Section 3. Purchaser shall not be liable to Seller for any costs, losses
or damages arising from or relating to the increase of the Minimum Over/Under Account Balance that Seller is required to maintain in the Over/Under Account or retention of excess funds by Purchaser to comply with any such increase. For the sake of
clarity, only one Over/Under Account shall be maintained by Purchaser for Seller in connection with this Agreement and the Master Repurchase Agreement, if any, and such Over/Under Account shall be subject to the terms of this Agreement as well as
the Master Repurchase Agreement, if any. 
 (b) Within one (1) Business Day of Purchaser’s receipt of a payment from
Seller or a Takeout Investor, Purchaser shall credit to the Over/Under Account all amounts received by it that exceed those amounts then due to Purchaser in accordance with this Agreement. Purchaser shall make available

  

- 29 - 

 
to Seller by posting on its warehouse lending website within one (1) Business Day following any such credit to the Over/Under Account, or as soon thereafter as is reasonably possible, a
statement that details the amounts so credited by Purchaser to the Over/Under Account. 
 (c) If any amount credited to the
Over/Under Account creates a balance in excess of the Minimum Over/Under Account Balance required pursuant to Section 11(a) above, provided that no Potential Default or Event of Default has occurred and is continuing, Seller may submit a
written request to Purchaser for return or payment of such excess funds. If any such request is received by Purchaser prior to 1:00 p.m. (New York City time) on a Business Day, Purchaser shall use commercially reasonable efforts to wire such
requested excess funds to Seller by the end of such Business Day and in no event no later than two (2) Business Days after Purchaser’s receipt of such request. Notwithstanding anything contained in this Section 11(c) to the
contrary, Purchaser reserves the right to reject any request for excess funds from the Over/Under Account if Purchaser determines that such excess funds shall be used to satisfy Seller’s outstanding obligations under this Agreement or are
subject to other rights as provided in this Agreement. 
 (d) Purchaser may, from time to time and without separate
authorization by Seller or notice to Seller, withdraw funds from the Over/Under Account to settle amounts owed in accordance with the terms of this Agreement or to otherwise satisfy Seller’s obligations under this Agreement, including, without
limitation (i) to reimburse itself for any reasonable costs and expenses incurred by Purchaser in connection with this Agreement, as permitted herein, and (ii) in the exercise of Purchaser’s or its Affiliates’ rights under
Section 13. 
 (e) If, at any time, Seller fails to maintain in the Over/Under Account the Minimum Over/Under
Account Balance as required hereunder, in addition to any other rights and remedies that Purchaser may have against Seller, Purchaser shall have the right to immediately stop purchasing Participation Certificates from Seller and/or to charge Seller
accrued interest on that portion of the Minimum Over/Under Account Balance that Seller has failed to maintain, at the Default Rate, from the time that such balance failed to be maintained until the time that funds are deposited into or held in the
Over/Under Account to comply with such Minimum Over/Under Account Balance requirements hereunder. Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Seller
will continue to owe Purchaser accrued interest as provided herein. 
 (f) Any funds of Seller at any time deposited or held in
the Over/Under Account, whether such funds are required to be deposited and held in the Over/Under Account pursuant to this Section 11 or otherwise, are hereby pledged by Seller as security for its obligations under this Agreement, and
Seller hereby grants a security interest in such funds to Purchaser, and such pledge and security interest shall be considered “a security agreement or other arrangement or other credit enhancement” that is “related to” the
Agreement and transactions hereunder within the meaning of Bankruptcy Code Sections 101(38A)(A) and 741(7)(A)(xi). 

Section 12. Term. This Agreement shall continue in effect until terminated as to future transactions by written instruction
signed by either Seller or Purchaser and delivered to the other; provided, that no termination will affect the obligations hereunder as to any of the Participation Certificates then outstanding hereunder or any Security not yet
delivered to the related Takeout Investor. 
 Section 13. Set-Off. In addition to any rights and remedies of
Purchaser provided by this Agreement and by law, Purchaser shall have the right, without prior notice to Seller, any such notice being expressly waived by Seller to the extent permitted by applicable law, upon any amount becoming due and payable by
Seller hereunder, to set-off and appropriate and apply against such amount any and all 

  

- 30 - 

 
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 Purchaser or any Affiliate thereof to or for the credit or the account of Seller (including, without limitation, the amount of any accrued and unpaid Holdback
Amounts), irrespective of whether or not Purchaser shall have made any demand hereunder and whether or not said obligations and liabilities shall have become due. Without limiting the generality of the foregoing, Purchaser may also set-off cash and
all other sums or obligations owed by Purchaser or its Affiliates to Seller (whether under this Agreement or under any other agreement between the parties or between Seller and any Affiliate of Purchaser) against all of Seller’s obligations to
Purchaser or its Affiliates (whether under this Agreement or under any other agreement between the parties or between Seller and any Affiliate of Purchaser), whether or not such obligations are then due. The exercise of any such right of set-off
shall be without prejudice to Purchaser’s or its Affiliate’s right to recover any deficiency. 
 Purchaser and its
Affiliates (collectively, “Bank of America Related Entities”), shall also have the right to set-off and to appropriate or apply any and all deposits of money or property or any other indebtedness at any time held or
owing by the Bank of America Related Entity to or for the credit of the account of Seller and its Affiliates against and on account of the obligations of Seller under any agreement(s) between Seller and/or its Affiliates, on the one hand, and the
Bank of America Related Entity, on the other hand, irrespective of whether or not the Bank of America Related Entity shall have made any demand hereunder and whether or not said obligations shall have matured. In exercising the foregoing right to
set-off, any Bank of America Related Entity shall be entitled to withdraw funds in the Over/Under Account which are being held for or owing to Seller to set-off against any amounts due and owing by Seller to the Bank of America Related Entity. If a
Bank of America Related Entity other than Purchaser intends to exercise its right to set-off in this paragraph, such Bank of America Related Entity shall provide Seller prior notice thereof, and upon Seller’s receipt of such notice, if the
basis for such right to set-off is Seller’s breach or default of its obligations to the Bank of America Related Entity, Seller shall have three (3) Business Days to cure any such breach or default in order to avoid such set-off.

 Section 14. Indemnification. Seller shall indemnify and hold Purchaser harmless against any and all Losses
(including, without limitation, Losses incurred by Purchaser on account of fees paid by Purchaser to the Applicable Agency to cause the Securities to be issued or any Losses in connection with any indemnification by Purchaser of the Applicable
Agency) resulting from, relating to or otherwise arising in connection with the Seller’s negligence, willful misconduct or breach or failure of Seller to perform any representation, warranty, covenant, term or condition made or obligation to be
performed by Seller under this Agreement (including, without limitation, any failure to perform servicing obligations) in strict compliance with the terms of this Agreement. Without prejudice to the survival of any other agreement of Seller
hereunder, the covenants and obligations of Seller contained in this Section 14 shall survive the termination of this Agreement. 
 Section 15. Exclusive Benefit of Parties; Assignment. This Agreement is for the exclusive benefit of the parties hereto and their respective successors and assigns and shall not be deemed to
give any legal or equitable right to any other person, including the Takeout Investor and Custodian. Except as provided in Section 7, no rights or obligations created by this Agreement may be assigned by either party hereto without the
prior written consent of the other party. 
 Any Person into which Seller may be merged or consolidated, or any corporation
resulting from any merger, conversion or consolidation to which Seller shall be a party, or any Person succeeding to the business of Seller, shall be the successor of 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. 

  

- 31 - 

 Section 16. Amendments; Waivers; Cumulative Rights. This Agreement may be
amended from time to time only by written agreement of Seller and Purchaser. Any forbearance, failure or delay by either party in exercising any right, power or remedy hereunder shall not be deemed to be a waiver thereof, and any single or partial
exercise by either party of any right, power or remedy hereunder shall not preclude the further exercise thereof. Every right, power and remedy of either party shall continue in full force and effect until specifically waived by such party in
writing. No right, power or remedy shall be exclusive, and each such right, power or remedy shall be cumulative and in addition to any other right, power or remedy, whether conferred hereby or hereafter available at law or in equity or by statute or
otherwise. 
 Section 17. Execution in Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which shall constitute one and the same instrument. The parties agree that this Agreement, any documents to be delivered pursuant to this Agreement and any notices hereunder may be transmitted
between them by email and/or by facsimile. The parties intend that faxed signatures and electronically imaged signatures such as .pdf files shall constitute original signatures and are binding on all parties. The original documents shall be promptly
delivered, if requested. 
 Section 18. Effect of Invalidity of Provisions. In case any one or more of the
provisions contained in this Agreement should be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein or therein shall in no way be affected, prejudiced or
disturbed thereby. 
 Section 19. Governing Law. THE AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISIONS (EXCEPT FOR SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT PREEMPTED BY FEDERAL LAW. 
 EACH PARTY HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY: 
 (A) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, OR FOR
RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE
COURTS FROM ANY THEREOF; 
 (B) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT
PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE
SAME; 
 (C) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY
REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH ON ANNEX A; AND 

  

- 32 - 

 (D) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION. 
 Section 20. Notices. All
notices, demands, consents, requests and other communications required or permitted to be given or made hereunder in writing shall be mailed (first class, return receipt requested and postage prepaid) or delivered in person or by overnight delivery
service or by facsimile, addressed to the respective parties hereto at their respective addresses set forth below or, as to any such party, at such other address as may designated by it in a notice to the other party pursuant to this Section.
Notices to any Assignee shall be given to such address as the Assignee shall provide to Seller in writing. 
  

	 	If to Seller:	Stonegate Mortgage Corporation 

	 	    	9190 Priority Way West Drive, Suite 300 

	 	    	Indianapolis, IN 46240 

	 	    	Attention: James Cutillo 

	 	    	Telephone (317) 663-5101 

	 	    	Facsimile: (317) 569-0705 

	 	    	E-mail: jcutillo@stonegatemtg.com 

  

	 	If to Purchaser:	Bank of America, N.A. 

	 	    	4500 Park Granada 

	 	    	Mail Code: CA7-910-02-38 

	 	    	Calabasas, California 91302 

	 	    	Attention: Adam Gadsby, Director 

	 	    	Telephone: (818) 225-6541 

	 	    	Facsimile: (213) 457-8707 

	 	    	Email: Adam.Gadsby@baml.com 

  

	 	    	and 

  

	 	    	Bank of America, N.A. 

	 	    	225 West Hillcrest Drive 

	 	    	Mail Code: CA6-918-01-03 

	 	    	Thousand Oaks, California 91360 

	 	    	Attention: Rayanthi De Mel, Assistant Vice President 

	 	    	Telephone: (805) 917-0716 

	 	    	Facsimile: (805) 917-0741 

	 	    	Email: Rayanthi.De.Mel@baml.com 

  

	 	    	With copies to: 

  

	 	    	Bank of America, N.A. 

	 	    	One Bryant Park, 11th Floor 

	 	    	Mail Code: NY1-100-11-01 

	 	    	New York, New York 10036 

	 	    	Attention: Eileen Albus, Vice President, Mortgage Finance 

	 	    	Telephone: (646) 855-0946 

	 	    	Facsimile: (646) 855-5050 

	 	    	Email: Eileen.Albus@baml.com 

  

- 33 - 

	 	    	Bank of America, N.A. 

	 	    	50 Rockefeller Plaza 

	 	    	Mail Code: NY1-050-12-03 

	 	    	New York, New York 10020 

	 	    	Attention: Mr. Michael McGovern Esq. 

	 	    	Telephone: 646-855-0183 

	 	    	Email: Michael.Mcgovern@bankofamerica.com 

 Section 21. Entire Agreement. This Agreement, the Participation Certificates and the Custodial Agreement contain the entire agreement between the parties hereto with respect to the subject
matter hereof, and supersede all prior and contemporaneous agreements between them, oral or written, of any nature whatsoever with respect to the subject matter hereof. 
 Section 22. Costs of Enforcement. 
 (a) In addition to any other
indemnity specified in this Agreement, Seller agrees to pay as and when billed by Purchaser all of the reasonable out-of pocket costs and expenses incurred by Purchaser in connection with (i) the development, preparation, and execution of this
Agreement, any other related document or any other documents prepared in connection herewith or therewith including without limitation, (A) all the reasonable fees, disbursements and expenses of counsel to Purchaser and (B) all the due
diligence, inspection, testing and review costs and expenses incurred by Purchaser in connection herewith or therewith, and (ii) the development, preparation, and execution of any amendment, supplement or modification to, and enforcement of
this Agreement, any other related document or any other documents prepared in connection herewith or therewith, the consummation, monitoring and administration of the transactions contemplated hereby and thereby including, without limitation,
(A) all the reasonable fees, disbursements and expenses of counsel to Purchaser and (B) all the due diligence, inspection, testing and review costs and expenses incurred by Purchaser with respect to the Related Mortgage Loans under this
Agreement. 
 (b) If Seller fails to pay when due any such costs, expenses or other amounts payable by it under this Agreement
(including, without limitation, reasonable fees and expenses of counsel and indemnities), such amount may be paid on behalf of Seller by Purchaser, in its sole discretion and Purchaser shall be entitled to withdraw from the Over/Under Account or
retain from payments made by Seller or a Takeout Investor, or set off against any amounts to be paid to Purchaser. Seller shall remain liable for any such payments made by Purchaser on behalf of Seller and any deficiency remaining after any such
withdrawal, retention or set-off. No such payment by Purchaser shall be deemed a waiver of any of Purchaser’s rights under this Agreement. 
 (c) In addition to any other indemnity specified in this Agreement, in the event of a breach by Seller of this Agreement, the Custodial Agreement, a Participation Certificate or a Takeout Commitment,
Seller agrees to pay the reasonable attorneys’ fees and expenses of Purchaser and/or any Assignee incurred as a consequence of such breach. 
 Section 23. Intent. 
 (a) Seller and Purchaser recognize that each
sale of a Participation Certificate under this Agreement is a “securities contract” and a “master netting agreement” as those terms are defined in Section 741 and Section 101(38A)(A) of the Bankruptcy Code,
respectively, and a “qualified financial contract” as that term is defined in the FDIA, and that the pledge of the Related Credit Enhancement in Section 8(c) hereof constitutes “a security agreement or other arrangement or
other credit enhancement” that is “related to” the Agreement and transactions hereunder within the meaning of Sections 

  

- 34 - 

 
101(38A)(A) and 741(7)(A)(xi) of the Bankruptcy Code. Seller and Purchaser further recognize that the beneficial interest in the Related Mortgage Loans evidenced by a Participation Certificate
shall constitute an “interest in a mortgage loan” as that term is used in Section and 741(7)(A)(i) of Bankruptcy Code. 
 (b) It is understood that the Purchaser shall have the right to liquidate, terminate and accelerate, or exercise any other remedies permitted upon the occurrence of any Event of Default, and that
such liquidation, termination and acceleration rights constitute contractual rights to liquidate, terminate and accelerate the transactions under a “securities contract” and a “master netting agreement” as described in
Section 555 and Section 561 of the Bankruptcy Code, respectively, and a “qualified financial contract” as described Section 1821(e)(8)(A)(i) of the FDIA. 

(c) The parties hereto agree and acknowledge that if a party hereto is an “insured depository institution,” as such term is
defined in the FDIA, then each transaction hereunder is a “qualified financial contract,” as that term is defined in the FDIA and any rules, orders or policy statements thereunder (except insofar as the type of assets subject to such
transaction would render such definition inapplicable). 
 (d) It is understood that this Agreement constitutes a “netting
contract” as defined in and subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment obligation hereunder shall constitute a “covered
contractual payment entitlement” or “covered contractual payment obligation,” respectively, as defined in and subject to FDICIA. 
 Section 24. Full Recourse. The obligations of Seller from time to time to pay all amounts due under this Agreement shall be full recourse obligations of Seller. 

Section 25. Examination and Oversight by Regulators. Seller agrees that the transactions with Purchaser under this Agreement
may be subject to regulatory examination and oversight by one or more Governmental Authorities. Seller shall comply with all regulatory requirements of Purchaser and Seller shall grant any such Governmental Authorities, the right to audit the books
and records of Seller in order to monitor or verify Seller’s performance under and compliance with the terms of this Agreement. 
 Section 26. Consent to Service. Each party irrevocably consents to the service of process by registered or certified mail, postage prepaid, to it at its address provided pursuant to
Section 20. 
 Section 27. Construction. The headings in this Agreement are for convenience only and are
not intended to influence its construction. References to Sections, Exhibits and Annexes in this Agreement are to the Sections of and Exhibits and Annexes to this Agreement. The Exhibits and Annexes are part of this Agreement. In this Agreement, the
singular includes the plural, the plural the singular, and the words “and” and “or” are used in the conjunctive or disjunctive as the sense and circumstances may require. 

Section 28. Further Assurances. Seller and Purchaser each agree to execute and deliver to the other such reasonable and
appropriate additional documents, instruments or agreements as may be necessary or appropriate to effectuate the purposes of this Agreement. 
 [signature page follows] 

  

- 35 - 

 IN WITNESS WHEREOF, Purchaser and Seller have duly executed this Agreement as of the date
and year set forth on the cover page hereof. 
  

			
	BANK OF AMERICA, N.A., Purchaser
		
	By:	 	/s/ Rayanthi De Mel
	Name:	 	Rayanthi De Mel
	Title:	 	Assistant Vice President

  

			
	STONEGATE MORTGAGE CORPORATION, Seller
		
	By:	 	/s/ James Cutillo
	Name:	 	James Cutillo
	Title:	 	Chief Executive Officer

  
 Signature Page
to Mortgage Loan Participation Purchase and Sale Agreement 

 Exhibit A 
 PARTICIPATION CERTIFICATE 
 POOL NO. (or FHLMC CONTRACT NO.): 

This Participation Certificate evidences a one hundred percent (100%) undivided beneficial ownership interest in (including the right
to receive the payments of principal of and interest on) the Mortgage Loans (the “Participation”) identified: 
 (Check Box)

  

	 	 ̈    (a)	Form HUD 11706 (Schedule of Pooled Mortgages); 

  

	 	 ̈    (b)	Fannie Mae Form 2005 (Schedule of Mortgages); or 

  

	 	 ̈    (c)	FHLMC Form 1034 (Fixed-Rate Custodial Certification Schedule) or Selling System computer tape. 

The Participation has been sold to Purchaser pursuant to the terms of that certain Mortgage Loan Participation Purchase and Sale
Agreement, dated as of June 24, 2013 (the “Agreement”) between Stonegate Mortgage Corporation, as Seller, and Bank of America, N.A., as Purchaser. Capitalized terms used but not defined herein shall have the meanings set forth
in the Agreement, the terms of which are hereby incorporated by reference and made a part of this Participation Certificate. 

Upon delivery of the related Security to Purchaser or its Assignee, Purchaser’s beneficial ownership interest in the Mortgage Loans
evidenced in this Participation Certificate shall terminate in exchange for such Security, and this Participation Certificate shall be void and of no further effect. 
 This Participation Certificate may be amended only by a written agreement between Seller and Purchaser. 
  

			
	Stonegate Mortgage Corporation
		
	By:	 	 
	Its:	 	
	Date:	 	

  
 A-1

 AGGREGATE PRINCIPAL BALANCES OF THE MORTGAGE LOANS (GIVING EFFECT TO PAYMENTS MADE AS OF
                        ,         ):
$                                        

  

	
	Hereby authenticated by U.S. Bank National Association pursuant to the Custodial Agreement (May not be
applicable for FHLMC)

  

			
		
	By:	 	 
	Its:	 	
	Date:	 	

  
 A-2

 Exhibit B 
 TRADE ASSIGNMENT 

                         
        (“Takeout Investor”) 
 (Address)  

Attention: 
 Fax No.: 

Dear Sirs: 
 Attached hereto is
a correct and complete copy of your confirmation of commitment (the “Commitment”), trade-dated                     ,
        , to purchase $                 of         %
             year, 
 (Check Box) 

 

	 	 ̈	Government National Mortgage Association; 

  

	 	 ̈	Federal National Mortgage Association; or 

  

	 	 ̈	Federal Home Loan Mortgage Corporation. 

mortgage-backed pass-through securities (“Securities”) at a purchase price of
                             from
                     on (insert Settlement Date). Our intention is to assign
$                 of this Commitment’s full amount, which assignment shall be effective and shall be fully enforceable by the assignee on the Settlement
Date. This is to confirm that (i) the form of this assignment conforms to the SIFMA guidelines, (ii) the Commitment is in full force and effect, (iii) effective as of the Settlement Date, the Commitment is hereby assigned to Merrill
Lynch Pierce Fenner & Smith Incorporated (“MLPF&S”), whose acceptance of such assignment is indicated below, (iv) you will accept delivery of such Securities directly from MLPF&S, (v) you will pay
MLPF&S for such Securities, (vi) effective as of the Settlement Date and provided the Securities have been issued, MLPF&S is obligated to make delivery of such Securities to you in accordance with the attached Commitment and
(vii) effective as of the Settlement Date and provided the Securities have been issued, you have released Seller from its obligation to deliver the Securities to you under the Commitment. Payment will be made “delivery versus payment
(DVP)” to MLPF&S in immediately available funds. 
 If you have any questions, please call
                                 at
(      )       -         immediately or contact him by fax at
(      )       -        . 

 

			
	Very truly yours,
	
	Stonegate Mortgage Corporation
		
	By:	 	 
	Title:	 	
	Date:	 	

  
 B-1

 Agreed to: 
 [                                ]
(Takeout Investor) 

			
		
	By:	 	 
		
	Title:	 	 
		
	Date:	 	 

 Provided the Securities have been issued, notice of delivery and confirmation of receipt will be the obligations of
MLPF&S. Prompt notification of incorrect information or rejection of the trade assignment should be made to [            ]. 

  
 B-2

 Exhibit C 
 DOCUMENT LIST 
 Seller shall deliver or cause to be delivered the following documents to
Purchaser: 
 (i) the fully completed, executed and authenticated Participation Certificate together with the certifications of
the Custodian provided by Section 3(b) of the Custodial Agreement; 
 (ii) a Trade Assignment (unless Purchaser is
the Takeout Investor) together with either (a) a copy of a Takeout Commitment with respect to the Security to be backed by the Mortgage Loans evidenced by such Participation Certificate or (b) a letter from Seller confirming the details of
such Takeout Commitment; 
 (iii) a letter from any warehouse lender having a security interest in the Related Mortgage Loans,
addressed to Purchaser, releasing any and all right, title and interest in such Mortgage Loans; and 
 (iv) a transaction
request, together with a schedule listing the Related Mortgage Loans, which schedule contains such information as Purchaser may reasonably request. 

  
 C-1

 Exhibit D 
 RESERVED 

  
 D-1

 Exhibit E 
 ASSIGNMENT 
 FOR VALUE RECEIVED the undersigned hereby sell(s) and assign(s) and transfer(s) unto

 (Please print or typewrite name and address, including postal zip code of assignee) 
 an undivided Participation Interest Equal to                 % of the beneficial interest in the Mortgage Loans relating to
the within Participation Certificate, Pool No. (FHLMC Contract No.)                 , Pass-Through Rate
                , Discount                  and hereby authorize(s) the transfer of
registration of such interest to assignee. 
  

			
	[Assignor]
		
	By:	 	 
	Name:	 	
	Title:	 	

Dated:                        
         

  
 E-1

 Exhibit F 
 FORM OF CONFIRMATION 
  

	TO:	Stonegate Mortgage Corporation 

	    	9190 Priority Way West Drive, Ste 300 

	    	Indianapolis, IN 46240 

  

	DATE:	

  

	RE:	Confirmation of Purchase of a beneficial interest in  

	    	Mortgage Loans relating to a Participation Certificate 

 Bank of America, N.A. (“Purchaser”) is pleased to confirm its agreement to purchase and your agreement to sell a 100% undivided, beneficial interest in the Mortgage Loans relating to a
Participation Certificate relating to the pool number (or Freddie Mac Contract Number) referred to herein, pursuant to the Mortgage Loan Participation Purchase and Sale Agreement, dated as of June 24, 2013 (the “Agreement”),
between Purchaser and Stonegate Mortgage Corporation (“Seller”), under the following terms and conditions. 
  

	
	
	 Pool No. (or FHLMC Contract No.)

	
	 Applicable Agency

	
	 Purchase Date

	
	 Anticipated Delivery Date

	
	 Settlement Date

	
	 Applicable Agency TBA trade price

	
	 Trade Price

	
	 Purchase Price:

	
	 Holdback Amount

	
	 Face Amount of the Security

  
 F-1

 Capitalized terms used and not otherwise defined herein shall have the meanings ascribed in the Agreement.

  

			
	Very truly yours,
	
	BANK OF AMERICA, N.A.
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 F-2

 Exhibit G 
 SELLER’S OFFICER’S CERTIFICATE 
 I,
                        , hereby certify that I am the duly elected ______________ of Stonegate Mortgage Corporation, an
Ohio corporation (“Seller”), and further certify, on behalf of Seller as follows: 
  

	 	(1)	Attached hereto as Attachment I is a true and correct copy of the articles of incorporation and by-laws of Seller as are in full force and effect on the date hereof.

  

	 	(2)	Attached hereto as Attachment II is a Certificate of Good Standing of Seller, issued by the Secretary of the State of Ohio dated _______, ____. No event has occurred
since _______, ____ which has affected the good standing of Seller under the laws of the State of Ohio. 

  

	 	(3)	Each person who, as an officer or attorney-in-fact of Seller, signed (a) the Mortgage Loan Participation Purchase and Sale Agreement, dated as of June 24,
2013 (as amended, supplemented or otherwise modified from time to time, the “Agreement”), by and between Seller and Bank of America, N.A. (the “Purchaser”); (b) the Custodial Agreement, dated as of
February 28, 2013 (as amended, supplemented or otherwise modified from time to time, the “Custodial Agreement”), by and among Seller, the Purchaser and U.S. Bank National Association; and (c) any other document delivered
prior hereto or on the date hereof in connection with transactions contemplated in the Agreement was, at the respective times of such signing and delivery, and is as of the date hereof, duly elected or appointed, qualified and acting as such officer
or attorney-in-fact, and the signatures of such persons appearing on such documents are their genuine signatures. 

  

	 	(4)	Attached hereto as Attachment III is a true and correct copy of the resolutions duly adopted by the board of directors of Seller on __________, ____ (the
“Resolutions”) with respect to the authorization and approval of the transactions contemplated in the Agreement; said Resolutions have not been amended, modified, annulled or revoked and are in full force and effect on the date
hereof. 

  

	 	(5)	All of the representations and warranties of Seller contained in the Agreement were true and correct in all material respects as of the date of the Agreement and are
true and correct in all material respects as of the date hereof. 

  

	 	(6)	Seller has performed all of its duties and has satisfied all the material conditions on its part to be performed or satisfied pursuant to the Agreement on or prior to
the date hereof. 

  

	 	(7)	There are no actions, suits or proceedings pending or, to my knowledge, threatened, against or affecting Seller which, if adversely determined either individually or in
the aggregate, would adversely affect Seller’s obligations under the Agreement or the Custodial Agreement. 

  
 G-1

	 	(8)	No proceedings that could result in the liquidation or dissolution of Seller are pending or contemplated. 

 

	 	(9)	Incumbency of Officers. The below named persons have been duly elected or appointed, and have been duly qualified as officers of Seller holding the respective
office below set opposite his or her name, and the signature below set opposite his or her name is his or her genuine signature. 

  

					
	 Name
	  	 Office
	  	 Signature

			
		  		  	
			
		  		  	
			
		  		  	

 All capitalized terms used herein and not otherwise defined shall have the meaning assigned to them
in the Agreement. 
 IN WITNESS WHEREOF, I have hereunto signed my name and on behalf of Seller. 

Dated: _________ __, ____ 
  

			
	Stonegate Mortgage Corporation
		
	By:	 	 
	Name:	 	
	Title:	 	

 I, ___________________, _________ of ______________, hereby certify that ________________ is the
duly elected, qualified and acting _______________ of __________ and that the signature appearing above is the genuine signature of such person. 
 IN WITNESS WHEREOF, I have hereunto signed my name. 
 Dated: ____________ __, ____ 

 

			
	Stonegate Mortgage Corporation
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 G-2

 Exhibit H 
 SELLER’S OFFICER’S CERTIFICATE 
 I, ___________, hereby certify that I
am the duly elected ______________ of Stonegate Mortgage Corporation, an Ohio corporation (“Seller”), and further certify, on behalf of Seller as follows: 

 

	 	(1)	There has been no change in the articles of incorporation and by-laws of Seller since the date such documents were provided to the Purchaser and such documents are in
full force and effect on the date hereof. 

  

	 	(2)	No event has occurred since the date of the last good standing certificate of Seller provided to the Purchaser which has affected the good standing of Seller under the
laws of the State of Ohio. 

  

	 	(3)	All of the representations and warranties of Seller contained in Section 9(a) of the Mortgage Loan Participation Purchase and Sale Agreement, dated as of
June 24, 2013 (as amended, supplemented or otherwise modified from time to time, the “Agreement”), by and between Seller and Bank of America, N.A. (“Purchaser”), are true and correct in all material respects as
of the date hereof and all of the representations and warranties of Seller contained in Section 9(b) of the Agreement are true and correct in all material respects as to the Related Mortgage Loans subject to the Participation Certificate
being sold to Purchaser on the date hereof. 

  

	 	(4)	Seller has performed all of its duties and has satisfied all the material conditions on its part to be performed or satisfied pursuant to the Agreement on or prior to
the date hereof. 

  

	 	(5)	There are no actions, suits or proceedings pending or, to my knowledge, threatened, against or affecting Seller which, if adversely determined either individually or in
the aggregate, would adversely affect Seller’s obligations under the Agreement or the Custodial Agreement. 

  

	 	(6)	No proceedings that could result in the liquidation or dissolution of Seller are pending or contemplated. 

 

	 	(7)	Each Mortgage Loan that is subject to a Participation Certificate to be sold to the Purchaser on the date hereof was originated by Seller or purchased from an approved
originator previously approved by the Purchaser not more than sixty (60) days prior to the date hereof. No Related Mortgage Loan was rejected for purchase or financing by any third party. 

All capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the Agreement. 

IN WITNESS WHEREOF, I have hereunto signed my name and on behalf of Seller. 
 Dated: _________ __, ____ 

  
 H-1

 
			
	Stonegate Mortgage Corporation
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 H-2

 I, ___________________, _________ of ______________, hereby certify that ________________ is
the duly elected, qualified and acting _______________ of __________ and that the signature appearing above is the genuine signature of such person. 
 IN WITNESS WHEREOF, I have hereunto signed my name. 
 Dated: _________ __, ____ 

 

			
	Stonegate Mortgage Corporation
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 H-3

 Exhibit I 
 SELLER’S OFFICER’S CERTIFICATE 
 I,
[                        ], hereby certify that I am the duly elected authorized
[                                ] of Stonegate Mortgage Corporation, an Ohio
corporation (“Seller”). This certificate is delivered to you in connection with Section 10(a)(x) of the Mortgage Loan Participation Purchase and Sale Agreement, dated as of June 24, 2013 (as amended, supplemented or
otherwise modified from time to time, the “Agreement”), by and between Seller and Bank of America, N.A. (“Purchaser”). I hereby certify that, as of the date of the financial statements attached hereto and as of the
date hereof, Seller is and has been in compliance with all the terms of the Agreement and, without limiting the generality of the foregoing, I certify that: 
 Tangible Net Worth. [                    ]. A detailed summary of the calculation of
Seller’s actual Tangible Net Worth is provided in Schedule 1 hereto. 
 Maintenance of Liquidity. Seller has ensured that, at
all times, it had Liquidity in an amount equal to [                        ]. 

Ratio of Total Liabilities to Tangible Net Worth. Seller’s ratio of Total Liabilities to Tangible Net Worth has not exceeded
[    ]:[    ]. 
 Profitability. Seller has shown positive pre-tax Net Income on a
quarterly basis. 
 Financial Statements. The financial statements attached hereto fairly present in all material respects the
consolidated financial condition, results of operations and cash flows of Seller and its consolidated Subsidiaries and the financial condition, results of operations and cash flows of Seller, in accordance with GAAP, consistently applied, as at the
end of, and for, the calendar month ending on [                ] (subject to normal year-end adjustments). 
 Documentation. Seller has performed the documentation procedures required by its operational guidelines with respect to endorsements and assignments, including the recordation of assignments, or
has verified that such documentation procedures have been performed by a prior holder of such Mortgage Loan. 
 Compliance. Seller has
observed or performed in all material respects all of its covenants and other agreements, and satisfied every condition, contained in the Agreement and the other Program Documents to be observed, performed and satisfied by it. 

Regulatory Action. Seller is not currently under investigation or, to the best of Seller’s knowledge, no investigation by and federal, state
or local government agency is threatened. Seller has not been the subject of any government investigation which has resulted in the voluntary or involuntary suspension of a license, a cease and desist order, or such other action as could adversely
impact Seller’s business. 
 No Default. No Potential Default or Event of Default has occurred or is continuing. 

Debt. All Debt (other than the Debt evidenced by the Agreement) of Seller existing on the date hereof is listed on Schedule 2 hereto.

 Originations. Attached hereto as Schedule 3 is a true and correct summary of all Mortgage Loans originated by Seller during the
calendar month ending on [                    ]. 

  
 I-1

 Hedging. Seller’s hedging policy as of the date of this Agreement has remained unchanged, other
than as attached hereto as Schedule 4, which includes a true and correct summary of all Interest Rate Protection Agreements entered into or maintained by Seller during the calendar month ending on
[                ]. 
 Repurchases and Early Payment
Default Requests. Attached hereto as Schedule 5 is a true and correct summary of the portfolio performance including representation breaches, missing document breaches, repurchase due to fraud, early payment default requests, summarized
on the basis of (a) pending repurchase demands (including weighted average duration of outstanding request), (b) satisfied repurchase demands and (c) total repurchase demands. 
 IN WITNESS WHEREOF, I have hereunto signed my name and on behalf of Seller. 
  

			
	Stonegate Mortgage Corporation
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 I-2

 SCHEDULE 1 TO OFFICER’S COMPLIANCE CERTIFICATE 

CALCULATIONS OF FINANCIAL COVENANTS 
 AS OF ___________________ 
  

									
	 Tangible Net Worth
	  				  			
	 Net Worth (book)
	  	$	                	  	  			
	 Plus:
	  				  			
			
	 Subordinated Debt (maturity >Bof A line maturity)
	  				  	 	—  	  
	 Capital Contributions during QTR or previous Qtr (monthly)
	  				  	 	—  	  
		  	  
	  
	 	  	  
	  
	 
	 TOTAL (a)
	  	$	 	  	  			
			
	 Less:
	  				  			
			
	 Goodwill
	  				  	 	—  	  
	 Patents
	  	 	—  	  	  			
	 Trademarks
	  	 	—  	  	  			
	 Capitalized Software costs
	  				  	 	—  	  
	 Trade names
	  	 	—  	  	  			
	 Copyrights
	  	 	—  	  	  			
	 Franchise and Deferred charges
	  	 	—  	  	  			
	 Receivables due from Affiliates
	  	 	—  	  	  			
		  	  
	  
	 	  	  
	  
	 
	 TOTAL (b)
	  	$	 	  	  			
			
	 Actual Tangible Net Worth (a minus b)
	  	$	 	  	  			
			
	 Tangible Net Worth Covenant =
$[            ].
	  				  			
			
	 COMPLIANCE
	  	 	PASS	  	  	 	FAIL	  
			
	 Ratio of Total Liabilities to Tangible Net Worth
	  				  			
			
	 Total Liabilities
	  	$	 	  	  			
	 Tangible Net Worth 
	  	$	 	  	  			
			
	 Ratio of Total Liabilities to Tangible Net Worth = [ ]:[ ]
	  				  			
			
	 COMPLIANCE
	  	 	PASS	  	  	 	FAIL	  
			
	 Maintenance of Liquidity
	  				  			
			
	 Unrestricted Cash
	  	$	 	  	  			
	 Cash Equivalents
	  	$	 	  	  			
		  	  
	  
	 	  	  
	  
	 
	 Liquidity Covenant = $[            ].
	  				  			

  
 I-3

									
			
	 COMPLIANCE
	  	 	PASS	  	  	 	FAIL	  
			
	 Profitability:
[                ]
	  				  			
			
	 Net Income covenant shows positive
	  				  			
			
	 COMPLIANCE
	  	 	PASS	  	  	 	FAIL	  

  
 I-4

 SCHEDULE 2 TO OFFICER’S COMPLIANCE CERTIFICATE 

DEBT AS OF ____________________________ 
  

									
	 LENDER
	 	 TOTAL

FACILITY

SIZE
	 	 $ AMOUNT COMMITTED
	 	 OUTSTANDING DEBT
	 	 EXPIRATION DATE

					
		 		 		 		 	
					
		 		 		 		 	
					
		 		 		 		 	

  
 I-5

 SCHEDULE 3 TO OFFICER’S COMPLIANCE CERTIFICATE 

OVERALL MORTGAGE LOAN ORIGINATIONS 
 FOR THE MONTH ENDED _______________________ 
  

							
	 	 	 MORTGAGE

LOAN TYPE
	 	 TOTAL NUMBER OF

MORTGAGE LOANS
ORIGINATED
	 	 AGGREGATE PRINCIPAL
BALANCE OF

MORTGAGE LOANS
ORIGINATED

	 CONVENTIONAL
 15 YR
FIXED
	 		 		 	
				
	 CONVENTIONAL
 30 YR
FIXED
	 		 		 	
				
	FHA 30 YR FIXED	 		 		 	
				
	 ARM PRODUCT

(describe)
	 		 		 	

  
 I-6

 SCHEDULE 4 TO OFFICER’S COMPLIANCE CERTIFICATE 

INTEREST RATE PROTECTION AGREEMENT 

  
 I-7

 SCHEDULE 5 TO OFFICER’S COMPLIANCE CERTIFICATE 

REPURCHASE AND EARLY PAYMENT DEFAULT REQUESTS 

  
 I-8

 Exhibit J 
 FORM OF REQUEST FOR TEMPORARY INCREASE 
 [Date] 

Bank of America, N.A. 
 One Bryant Park, 11th
floor 
 New York, New York 10036 

NY1-100-11-01 
 Attention: Eileen Albus

  

	 	Re:	The Mortgage Loan Participation Purchase and Sale Agreement, dated as of June 24, 2013 (the “Agreement”), between Bank of America, N.A.
(“Purchaser”) and Stonegate Mortgage Corporation (“Seller”) 

 Ladies and Gentlemen: 

In accordance with Section 2(f) of the Agreement, Purchaser hereby consents to a Temporary Increase of the Aggregate
Transaction Limit as further set forth below: 
 Amount of Temporary
Increase: $            . 
 Effective date and
time: [dd/mm/yyyy at ___:___ _.m.] 
 Termination date and time: [dd/mm/yyyy at ___:___ _.m.] 

On and after the effective date and time indicated above and until the termination date and time indicated above, the Aggregate
Transaction Limit shall be increased by the amount of the Temporary Increase indicated above for all purposes of the Agreement and all calculations and provisions relating to the Aggregate Transaction Limit shall refer to the Aggregate Transaction
Limit as so increased. Unless otherwise terminated pursuant to the Agreement, this Temporary Increase shall terminate on the termination date and time indicated above. Upon the termination of this Temporary Increase, the Aggregate
Transaction Limit shall be reduced by the amount of the Temporary Increase. 
 All terms used herein and not otherwise defined
herein shall have the respective meanings ascribed to such terms in the Agreement. 
 [signature page follows] 

  
 J-1

 
			
	STONEGATE MORTGAGE CORPORATION
		
	By:	 	 
		 	Name:
		 	Title:

 Agreed and Consented by: 
  

			
	BANK OF AMERICA, N.A., Purchaser
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 J-2

 Annex A 
 PURCHASER NOTICES 
  

			
	Name:	  	Bank of America, N.A.
	Address:	  	 One Bryant Park – 11th floor
 NY1-100-11-01
 New York, New York 10036
 Attention: Eileen Albus, Vice President – Mortgage Finance

	Telephone:	  	(646) 651-4512
	Telecopy:	  	(646) 855-5050
	Email:	  	eileen.albus@baml.com

 SELLER NOTICES 
  

			
	Name:	  	Stonegate Mortgage Corporation
	Address:	  	 9190 Priority Way West Drive, Ste 300
 Indianapolis, IN 46240
 Attention: Barb Cutillo, CAO and John Macke, CEO

	Telephone:	  	(317) 663-5102 and (317) 663-5176
	Telecopy:	  	[___________]
	Email:	  	bcutillo@stonegatemtg.com and jmacke@stonegatemtg.com

  
 Annex A-1EX-10.18

 EXHIBIT 10.18 
 MASTER LOAN PARTICIPATION AND SERVICING AGREEMENT 
 between 

STONEGATE MORTGAGE CORPORATION 
 (“Seller”) 
 and 

BANK OF VIRGINIA 
 (“Participant”) 
 November 19, 2012 

 MASTER LOAN PARTICIPATION AND SERVICING AGREEMENT 

THIS MASTER LOAN PARTICIPATION AND SERVICING AGREEMENT (this “Agreement”) is made as of November 19, 2012,
by and between STONEGATE MORTGAGE CORPORATION, an Ohio corporation having its principal place of business at 9190 Priority Way West Drive, Suite 300, Indianapolis, Indiana (“Seller”), and BANK OF VIRGINIA, having its place of
business at 11730 Hull Street Road, Midlothian, Virginia 23112 (“Participant”). 
 WITNESSETH:

 WHEREAS, Seller is in the business of originating qualifying, single-family mortgage loans, including conforming
(i) Federal National Mortgage Association (“FNMA”) loans, (ii) Government National Mortgage Association (“Ginnie Mae”), (iii) Federal Home Loan Mortgage Corporation (“FHLMC”) loans,
and (iv) loans insured by the Federal Housing Administration (“FHA”) or guaranteed by the Veterans Administration (“VA”), United States Department of Agriculture (“USDA”) or Rural Housing
Service, an agency of the USDA (“RHS”) (but specifically excluding any and all construction loans, loans secured by manufactured homes, co-operatives, high-cost or Jumbo loans) (hereinafter referred to individually as a
“Mortgage Loan” and collectively as the “Mortgage Loans”) (FNMA, Ginnie Mae, FHLMC, FHA, VA, USDA and RHS are hereinafter from time to time referred to individually as an “Agency” or collectively as
the “Agencies”); and 
 WHEREAS, Seller wishes from time to time to sell and Participant wishes to from
time to time purchase beneficial ownership interests in the Mortgage Loans as provided for in this Agreement. 
 NOW,
THEREFORE, in consideration of the mutual agreements hereinafter set forth, Seller and Participant agree as follows: 
  

	 	1.	OWNERSHIP INTEREST; PARTICIPATION CERTIFICATES. 

 1.1 Acquisition by Participant; Purchase Price. Subject to the terms and conditions of this Agreement and in reliance on representations, warranties and covenants contained herein, Participant
establishes with Seller the terms on which Seller will offer from time to time to sell, transfer, assign and convey to Participant, without recourse, and Participant may from time to time in its sole discretion (but shall not be required) to
purchase, a one-hundred percent (100%) undivided beneficial ownership interest (the “Ownership Interest”) in one or more Mortgage Loans. The purchase of an Ownership Interest in each Mortgage Loan by Participant pursuant to
this Agreement shall be subject to the following conditions, which must be satisfied to the satisfaction of Participant (unless waived in writing by Participant): (a) if applicable, review and approval by Participant of a commitment to insure
or guarantee the Mortgage Loan from the FHA or another Agency, (b) the review and approval by Participant of the Mortgage Loan Documents and such other documents relating to the Mortgage Loans as Participant deems appropriate, (c) delivery
to Participant of an original Participation Certificate, hereinafter defined, (d) Participant’s satisfaction with Seller’s ability to sell the Mortgage Loan with respect to which a Participation Certificate relates (the
“Underlying Mortgage Loan”) pursuant to a 

  
 1 

 
secondary market purchase commitment (a “Takeout Commitment”) from an Agency or other investor approved in writing by the Participant (the “Investor”),
(e) Participant’s satisfaction with Seller’s creditworthiness, (f) the Mortgaged Property to which such Mortgage Loan relates shall not be subject to any second or other junior priority mortgages unless the combined loan to value
ratio is less than eighty percent (80%) or up to ninety-five percent (95%) if the Participant receives evidence that there is mortgage insurance satisfactory to it covering that portion of the second or other junior loan that results in a
combined loan to value ratio of more than eighty percent, (g) the Mortgage Loan shall meet the additional criteria for such loan set forth on Schedule I attached hereto and made a part hereof, (h) the Mortgage Loans and related
Mortgage Loan Documents meet the eligibility requirements of the proposed Investor, (i) U.S. Bank National Association (together with its successors and assigns, the “Custodian”), as custodian for Participant, and Seller, in
its capacity as Owner’s Agent (the “Owner’s Agent”), shall have entered into a Custody Agreement with Participant, in form and substance satisfactory to Participant (the “Custody Agreement”), and such
Custody Agreement shall be in full force and effect and neither Custodian nor Owner’s Agent shall have breached any of their respective covenants, agreements, duties or obligations thereunder, and (j) any other reasonable conditions
Participant deems necessary. The Participant shall acquire the Ownership Interest in all of Seller’s rights, titles and interests in and to each Mortgage Loan (including, without limitation, all rights, titles and interests in and to all
payments in respect of such Mortgage Loan and all Mortgage Loan Documents relating to such Mortgage Loan) from and after the date of Participant’s acquisition of such Ownership Interest in such Mortgage Loan pursuant to this Agreement. The date
of Participant’s acquisition of an Ownership Interest is referred to as a “Purchase Date”. Participant shall pay for each Ownership Interest purchased hereunder an amount equal to the sum of (a) the lesser of
(i) the unpaid principal balance of the Underlying Mortgage Loan as of the Purchase Date and immediately prior to giving effect to such purchase, or (ii) the amount to be paid by the Investor for the Underlying Mortgage Loan pursuant to
the Takeout Commitment issued by such Investor (such lesser amount, the “Purchase Price”), plus (b) the amount of any unpaid interest accrued on the Mortgage Loan prior to such Purchase Date. At no time shall Participant
acquire any Mortgage Loan if such purchase would result in Participant being the holder of Mortgage Loans with an aggregate unpaid principal balance in excess of Thirty Million Dollars ($30,000,000). 

1.2 Intent of Parties. It is the intention of the parties, and each of the Seller and the Participant hereby confirm, that the
transactions described in this Agreement shall constitute true sales rather than borrowings secured by the Ownership Interests. If for any reason, in contravention of the parties express intention that the transactions hereunder constitute true
sales, any transaction is construed by any court or regulatory authority of competent jurisdiction as a borrowing rather than as a true sale, Seller and Participant intend that Participant shall have a perfected first priority security interest in
the Ownership Interests, the related Mortgage Loans, all related Mortgage Loan Documents, records, instruments and data evidencing the related Mortgage Loans and the servicing thereof, and all proceeds thereof, the rights of Seller under any
secondary market purchase commitment in respect of such Mortgage Loans and the proceeds of any and all of the foregoing (collectively, the “Collateral”), free and clear of adverse claims. In such case, Seller shall be deemed to have
hereby granted to Participant, a first priority backup security interest in and lien upon the Collateral, free and clear of adverse claims and the 

  
 2 

 
Custodian shall be deemed to be acting as an independent custodian (exclusively as agent bailee for perfection on behalf of Participant) for purposes of perfection of the backup security interest
herein granted to Participant, and Participant shall have all of the rights of a secured party under applicable law. The Seller hereby authorizes the Participant to file any Uniform Commercial Code financing statements naming Seller as seller/debtor
and Participant as buyer/secured party covering the Collateral as Participant deems necessary or appropriate to perfect the backup security interest granted hereunder, and to file any amendments thereto and any continuation statements as Participant
deems necessary to continue or maintain the first priority perfection of such backup security interest in the Collateral. 
 1.3
Seller to Assign Mortgage Loan Documents. Subject to compliance with the requirements of the Investor, Seller shall assign all notes, mortgages, deeds of trust, documents, instruments and agreements relating to the Mortgage Loans (the
“Mortgage Loan Documents”) to Participant pursuant to security procedures in accordance with industry standards, originals of all such documents including without limitation, the related Note, Mortgage or Deed of Trust (the
“Mortgage”), other security documents, UCC financing statements, title and hazard insurance policies, together with duly executed instruments of transfer or assignment in blank and such other documentation as Participant may
reasonably request, executed by Seller, for each of such documents. The Seller shall also assign and transfer to the Participant all of its rights under any purchase commitment of any Investor with respect to any Mortgage Loan sold by Seller to
Participant hereunder to the extent necessary to facilitate or accomplish the subsequent sale by the Participant of such Mortgage Loans to such Investor. At the closing of any Mortgage Loan, Seller shall (i) upon the request of the Participant,
cause the title company handling the closing to duly execute a certification in the form attached hereto as Exhibit A (the “Title Company Certification”) and (ii) to deliver to and place for safekeeping with the
Custodian, in accordance with the Custody Agreement, the Mortgage Loan Documents, including, but not limited to, the related Note and Mortgage, and all other security documents, UCC financing statements, title and hazard insurance policies, executed
instruments of transfer or assignments in blank. 
 1.4 Examination of Mortgage File. Prior to the Purchase Date, if
requested to do so by the Participant, the Seller shall deliver to the Participant or its designee, for examination, copies of the Mortgage Loan Documents to be executed by the mortgagor and the Seller pertaining to each Mortgage Loan. The Seller
agrees that the Mortgage Loans shall comply with the representations and warranties set forth herein. 
 1.5 Participation
Certificates. 
 (a) The Ownership Interest for each Mortgage Loan shall be evidenced by one or more certificates
substantially in the form attached hereto as Exhibit B, (each a “Participation Certificate”). 
 (b) The
Participation Certificate shall set forth for the Mortgage Loan (i) the name of the mortgagor; (ii) description and address of mortgaged property and any improvement thereon (“Mortgaged Property”); (iii) the
outstanding principal balance of the related promissory note (“Note”); (iv) the interest rate borne by such Note; (v) the appraised value of the Mortgaged Property, (vi) the mortgagor’s FICO score; and
(vii) such other data as Participant may from time to time request. 

  
 3 

 (c) Seller shall maintain at its office a certificate register (the “Certificate
Register”) showing all pertinent information with respect to each Participation Certificate. 
 (d) Seller shall
provide a copy of the Certificate Register to Participant upon request. 
 (e) Any Participation Certificate may be re-issued in
the event of transfer or, at the option of Participant, exchanged for other Participation Certificates of a like aggregate Ownership Interest. Prior to due presentation of a Participation Certificate for registration of transfer by Participant,
Seller shall treat Participant as the owner of such Participation Certificate and the Ownership Interest relating thereto. 

(f) In the event of any mutilated, lost, destroyed, or stolen Participation Certificate, Seller shall execute and deliver a replacement
Participation Certificate of like tenor and interest, in the absence of notice that such Participation Certificate has been acquired by a bona fide purchaser, upon Participant: (i) either surrendering any mutilated Participation Certificate to
Seller, or (ii) providing evidence to Seller’s satisfaction of the loss, destruction, or theft of any Participation Certificate, as applicable and delivering a representation regarding such loss, destruction or theft, together with such
indemnity as may be required by Seller, Seller shall issue a replacement Participation Certificate. Any replacement Participation Certificate issued as provided herein shall constitute, absent fraud, complete and indisputable evidence of ownership
of the Ownership Interest as if originally issued, whether or not the mutilated, destroyed, lost, or stolen Participation Certificate shall be subsequently found at any time. 
 (g) Seller, at its option, may assess reasonable charge for the re-issuance of a Participation Certificate as provided herein. 

 

	 	2.	REPRESENTATIONS, WARRANTIES AND COVENANTS. 

 2.1 General Representations, Warranties and Covenants of Seller. Seller represents, warrants, and covenants to Participant that: 

(a) Seller is duly organized, and is and shall continue to be existing, under the laws of the jurisdiction of its organization; Seller
is, and to the extent necessary to perform its obligations under this Agreement shall continue to be, duly authorized and qualified to transact business in the jurisdiction where the Mortgaged Property is located or not required to be so authorized;
Seller possesses and shall continue to possess all requisite authority, power, licenses, permits, franchises, and approvals to conduct its business and to execute, deliver, and comply with its obligations under this Agreement. 

(b) The execution, delivery and performance of this Agreement by Seller will not: (i) violate the articles of incorporation or
bylaws of Seller or any resolution or other instrument governing its operations, or any laws which violation could have any material adverse effect upon the validity, performance, and enforceability of any of the terms of this Agreement

  
 4 

 
applicable to Seller, or (ii) constitute a default (or any event which, with notice or lapse of time or both, would constitute a default) under any contract, agreement, or other instrument
to which Seller is a party or which is applicable to any of its assets. 
 (c) This Agreement constitutes a valid, legal, and
binding obligation of Seller, enforceable in accordance with its terms and no consent, approval or authorization of any governmental authority is required for the execution, delivery or performance of, or compliance by Seller with, this Agreement or
the consummation of any other transaction contemplated hereby, except as has been duly obtained. 
 (d) The Seller is approved
and in good standing with each Agency and each other approved Investor with full right to take such actions and discharge such responsibilities as are conferred by such status, and in particular to originate the Mortgage Loans and deliver them to
such Agency or other approved Investor; the Seller shall not do anything or permit any action, directly or indirectly, which may result in a negative designation from any Agency or other approved Investor, including without limitation, anything
which could result in the Seller being debarred or placed on a watch-list. 
 (e) The Seller shall provide Participant a weekly
written analysis of the status of the then existing Mortgage Loans and corresponding Takeout Commitments and a weekly pipeline report. 
 (f) The Seller shall have delivered to Participant on or prior to the date of this Agreement (i) a legal opinion dated as of the date hereof of Seller’s counsel covering valid existence, good
standing, power and authority and enforceability, in case of Seller, of this Agreement, no conflict and such other customary matters as Participant may reasonably request, (ii) a legal opinion dated as of the date hereof of Seller’s
counsel as to the true sale nature of the Mortgage Loan purchases contemplated by this Agreement, and (iii) those documents, instruments, certificates, agreements and other deliverables as identified on that certain Closing Checklist delivered
by Participant’s counsel to Seller’s counsel prior to the effectiveness of this Agreement. 
 2.2 Mortgage Loan
Representations, Warranties and Covenants of Seller. Seller further represents, warrants, and covenants to Participant that with respect to each Mortgage Loan as of each Purchase Date: 

(a) The information pertaining to such Mortgage Loan set forth in the Participation Certificate is true, correct and complete to the best
of Seller’s knowledge. 
 (b) The Seller has not advanced funds, or induced, solicited or knowingly received any advance of
funds from a party other than the owner of the Mortgaged Property, directly or indirectly, for the payment of any amount required by the Mortgage Loan and there has been no delinquency in any payment by the mortgagor thereunder. 

(c) There are no delinquent taxes, ground rents, water charges, sewer rents, assessments or other outstanding charges affecting the
Mortgaged Property. 

  
 5 

 (d) The terms of the Note and the Mortgage have not been impaired, waived, altered or
modified in any respect. No mortgagor has been released, in whole or in part. 
 (e) The Note and the Mortgage are not subject
to any right of rescission, set-off, abatement, diminution, counterclaim or defense, including the defense of usury, nor will the operation of any of the terms of the Note or the Mortgage, or the exercise of any right thereunder, render the Note or
the Mortgage unenforceable, in whole or in part, or subject to any right of rescission, set-off, abatement, diminution, counterclaim or defense, including the defense of usury, and no such right of rescission, set-off, abatement, diminution,
counterclaim or defense has been asserted with respect thereto. 
 (f) All improvements constituting a part of the Mortgaged
Property are insured by an insurer acceptable to the applicable Agency and generally acceptable to prudent mortgage lending institutions against loss by fire and such other risks as may be included in the broad form of extended insurance coverage,
as may be available from time to time, and such other hazards as are customary in the area where the Mortgaged Property is located, in an amount which is at least equal to the maximum insurable value of the improvements constituting a part of the
Mortgaged Property. If the Mortgaged Property is in an area then identified in the Federal Register by the Flood Emergency Management Agency as having special flood hazards (and such flood insurance is then available), there is in effect a flood
insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration with a financially responsible insurance carrier acceptable to the applicable Agency, in an amount representing coverage not less than the
maximum amount of insurance which is available under the Flood Disaster Protection Act of 1973, as amended. All such individual insurance policies (collectively, the “hazard insurance policy”) contain a “standard” or “New
York” mortgagee clause naming the Seller, its successors and assigns as mortgagee, provide for at least thirty (30) days’ prior written notice to the Seller of any cancellation thereof, and all premiums thereon have been paid. The
Mortgage obligates the mortgagor thereunder to maintain the hazard insurance policy at the mortgagor’s cost and expense, and upon the mortgagor’s failure to do so, authorizes the holder of the mortgage to obtain and maintain such insurance
at the mortgagor’s cost and expense and to seek reimbursement therefor from the mortgagor. 
 (g) Any and all requirements
of any federal, state or local law including, without limitation, usury, truth-in-lending, real estate settlement procedures, consumer credit protection, equal credit opportunity or disclosure laws applicable to the Mortgage Loan have been complied
with. 
 (h) The Mortgage has not been satisfied, canceled, subordinated or rescinded, and the Mortgaged Property has not been
released from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would effect any such satisfaction, cancellation, subordination, rescission or release. 

(i) Unless otherwise notified to Participant by the Seller and agreed to by Participant in respect of any Mortgage Loan, the mortgagor
has fee simple estate in and to the Mortgaged Property and the Mortgaged Property consists of a single parcel of real property with a detached single family residence erected thereon, or an individual residential condominium unit, all of which
constitutes real property under the laws of the State in which the Mortgaged Property is located and Seller is qualified to do business. 

  
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 (j) The Mortgage is a valid, subsisting and enforceable first lien on the Mortgaged Property
(including, without limitation, all buildings constituting a part of the Mortgaged Property and all installations and mechanical, electrical, plumbing, heating and air conditioning systems located in or affixed to such buildings, and all additions,
alterations and replacements made at any time with respect to the foregoing). Such lien is subject only to (a) the lien of current real property taxes and assessments not yet due and payable, (b) covenants, conditions and restrictions,
rights of way, easements and other matters of public record as of the date of recording which are (i) acceptable to mortgage lending institutions generally and, in the case of a Mortgage Loan insured by the FHA or guaranteed by the VA, USDA or
RHS, to the FHA, VA, USDA or RHS, (ii) specifically referred to in the Participant’s title insurance policy delivered to Seller and (iii) referred to or otherwise considered in the appraisal made for Seller or which do not adversely
affect the appraised value of the Mortgaged Property as set forth in such appraisal and (c) other matters to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided
by the Mortgage, the use, enjoyment, value or marketability of the related Mortgaged Property or, in the case of a Mortgage Loan insured by the FHA or guaranteed by the VA, USDA or RHS, prevent realization of the benefits provided by any FHA
insurance or VA, USDA or RHS guaranty. Any security agreement, chattel mortgage or equivalent document related to and delivered in connection with the Mortgage Loan establishes and creates a valid, subsisting and enforceable first lien and first
priority security interest on the property described therein. 
 (k) The Note and the Mortgage are genuine, and each is the
legal, valid and binding obligation of the maker thereof, enforceable in accordance with its terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency or other similar laws affecting the enforcement of
creditors’ rights generally. 
 (l) All parties to any agreement affecting the Mortgage Loan, including, but not limited to
the mortgagor, had legal capacity to enter into such agreement and to execute and deliver such agreement and each such agreement has been duly and properly authorized, executed and delivered by such parties. 

(m) The proceeds of the Mortgage Loan have been fully disbursed and there is no obligation or requirement for future advances thereunder
by the holder of the Mortgage Loan, and any and all requirements as to completion of any on-site or off-site improvements and as to disbursements of any escrow funds therefor have been complied with. 

(n) the Note and the Mortgage have not been assigned or pledged by the Seller except to Participant as provided herein. The Seller or its
agent, or the title company handling the closing of the Mortgage Loan, has had continuous sole and complete possession of all the Mortgage Loan Documents prior to the Purchase Date. At the time of the conveyance of the Mortgage Loan to Participant,
the Seller had good and marketable title thereto. 

  
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 (o) In the case of a conventional Mortgage Loan, (a) the Loan-to-Value Ratio either
(i) is not more than 80% or (ii) is not more than 95% and the excess over 80% is and will be insured by a policy of primary mortgage guaranty insurance issued by a mortgage guaranty insurer acceptable to FNMA, Ginnie Mae or FHLMC until the
Loan-to-Value Ratio is reduced below 80% or otherwise meets guidelines for an applicable FNMA, Ginnie Mae or FHLMC product (i.e., DU Refi Plus), (b) the mortgage interest rate for the Mortgage Loan as set forth on the Participation Certificate
is net of any such insurance premium, and (c) all provisions of any primary mortgage guaranty insurance policy have been and are being complied with and such policy is in full force and effect and all premiums due thereunder have been paid. Any
Mortgage Loan subject to any such policy of primary mortgage guaranty insurance obligates the mortgagor thereunder to maintain such insurance and to pay all premiums and charges in connection therewith. 

(p) Each Mortgage Loan is covered by an American Land Title Association form of Participant’s title insurance policy or other
generally acceptable form of title insurance policy acceptable to the applicable Agency (and in the case of a Mortgage Loan insured or guaranteed by any Agency), issued by a title insurer acceptable to the applicable Agency and qualified to do
business in the state of the Mortgaged Property, insuring the Seller, its successors and assigns, as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan. The Seller is the sole insured under such
Participant’s title insurance policy, and such Participant’s title insurance policy is in full force and effect. No claims have been made under such Participant’s title insurance policy and no holder of the Mortgage Loan, including
the Seller, has done or omitted to do anything which would impair the coverage of such Participant’s title insurance policy. 
 (q) If the Mortgage Loan is insured by the FHA or guaranteed by the VA, it shall be either (i) guaranteed by the VA to the maximum extent permitted by law for a veteran who has not used any part of
his entitlement and the uninsured portion thereof upon origination was not more than 75% of the original principal amount of the Mortgage Loan or (ii) fully insured by the FHA and all necessary steps shall be taken to make and keep such
guaranty or insurance valid, binding and enforceable, and such guaranty or insurance is the valid, binding and enforceable obligation of the VA or the FHA, as the case may be, to the full extent thereof, without surcharge, set-off or defense.

 (r) There is no default, breach, violation, or event of acceleration existing under the Note or Mortgage and no event which,
with the passage of time or the giving of notice, or both, would constitute such a default, breach, violation or event of acceleration; and neither the Seller nor any person having or having had an interest therein has waived any such default,
breach, violation or event of acceleration. 
 (s) There are no mechanics’ or similar liens or claims which have been filed
for work, labor or material (and no rights are outstanding that could give rise to any such lien) affecting the related Mortgaged Property which are or may be liens prior to, equal to or subordinate with, the lien of the related Mortgage and the
Mortgage requires the mortgagor promptly to cause any such liens, as well as liens which are junior to the lien of the Mortgage, to be removed. 

  
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 (t) All improvements which were considered in determining the appraised value of the related
Mortgaged Property lie wholly within the boundary and building restriction lines of the Mortgaged Property and no improvements on adjoining properties encroach upon the Mortgaged Property in any respect so as to affect the marketability of the
Mortgaged Property. 
 (u) The Mortgage Loan was originated by the Seller. 

(v) The Note is payable monthly in self-amortizing installments of principal and interest, with interest payable in arrears, providing
for full amortization by maturity or a balloon payment, over an original term in compliance with the requirements of the applicable Agency. The original principal amount of the Note was not more than the amount prescribed by Participant. The
Mortgage contains customary and enforceable provisions for the acceleration of the payment of the unpaid principal balance of the Mortgage Loan in the event the related Mortgaged Property is sold without the prior consent of the mortgagee
thereunder. 
 (w) The Mortgaged Property is free of damage and waste and there is no proceeding pending or, to the best of the
knowledge of the Seller, threatened, for the total or partial condemnation or taking by eminent domain thereof. 
 (x) The
Mortgage contains customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security provided thereby. There is no
homestead or other exemption available to the mortgagor which would interfere with the right to sell the Mortgaged Property at a trustee’s sale or under a power of sale, or the right to foreclose the Mortgage. 

(y) The Mortgage Loan Documents relating to the Mortgage Loan include all of the documents required by, and such documents are in the
form required by all applicable underwriting guidelines. 
 (z) The Mortgage Loan Documents relating to the Mortgage Loan
include all of the documents required by, and a clear to close letter issued by, the Investor that has issued a Takeout Commitment with regard to such loan. 
 (aa) To the best of the Seller’s knowledge, the Mortgaged Property is lawfully occupied under applicable law. 
 (bb) The Note is not, and has not been, secured by any collateral except the lien of the related Mortgage and the security interest of any applicable security agreement or chattel mortgage referred to in
clause (x) above and the mortgage was not given as collateral or security for the performance of obligations of any person other than the mortgagor. 
 (cc) The Mortgage Loan meets the requirements for investment by the Seller and the Investor. 
 (dd) Neither the Seller nor the mortgagor has made any statement or taken any other action that would impair or invalidate the coverage provided by any primary mortgage guaranty insurance, FHA insurance
or VA guaranty or any hazard, title or other insurance policy relating to the Mortgage Loan or the Mortgaged Property. 

  
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 (ee) The Seller has no knowledge of any circumstance or condition with respect to the
Mortgage Loan, the Mortgaged Property, the mortgagor or the mortgagor’s credit standing that can reasonably be expected to cause private institutional investors to regard the Mortgage Loan as an unacceptable investment, cause the Mortgage Loan
to become delinquent or adversely affect the value or marketability of the Mortgage Loan. 
 (ff) All rights and benefits
arising out of the Mortgage Loans, including, but not limited to all funds received on or in connection with any Mortgage Loan shall be held by Seller in trust for the benefit of Participant as the owner of the Ownership Interest with respect to
such Mortgage Loan, and shall promptly upon demand turn over such funds to the Participant. The sale of each Ownership Interest in the Mortgage Loan to Participant hereunder shall be reflected on Seller’s balance sheet and other financial
statements as a true sale of assets by Seller. Seller shall be responsible for maintaining, and shall maintain, a complete set of books and records for each Mortgage Loan which shall be clearly marked to reflect the true sale of each Mortgage Loan
by Seller to Participant in Seller’s computer system. 
 (gg) There is no litigation pending or, to the Seller’s
knowledge, threatened, which, if determined adversely to the Seller, would adversely affect the execution, delivery or enforceability of this Agreement, assignment of Mortgage, the sale of an Ownership Interest in any Mortgage Loan to Participant or
the ability of the Seller to service the Mortgage Loans hereunder in accordance with the terms hereof or which would have a material adverse effect on the financial condition of the Seller. 

(hh) the Seller has obtained a Takeout Commitment from an Investor with respect to each Ownership Interest sold to Participant whereby
such Investor commits to purchase the Underlying Mortgage Loan on a date not later than 45 days after the Purchase Date on which the Participant acquired such Ownership Interest for a price (the “Takeout Purchase Price”) equal to or
greater than the sum of (i) the Purchase Price paid by Participant for such Ownership Interest, plus (ii) the amount of any accrued and unpaid interest on the Underlying Mortgage Loan, calculated from the origination date of
such loan through but not including the date on which such loan is sold to the Investor. Seller shall at all times be approved and in good standing with each Investor that has issued a Takeout Commitment with full right to take such actions and
discharge its responsibilities thereunder, and in particular to originate the Mortgage Loan and deliver it to the Investor on behalf of the Participant, and shall ensure that the Mortgage Loan and all Mortgage Loan Documents comply in all respects
with the requirements of the Investor. 
 (ii) Prior to the expiration of any Takeout Commitment, Seller shall have taken all
actions required to be taken by it under the terms of such Takeout Commitment or under any applicable Agency rule, regulation or guideline necessary for the consummation of the sale of the Underlying Mortgage Loan to the Investor pursuant to such
Takeout Commitment to occur. Further, the Seller shall take all actions necessary or required to ensure that the Takeout Purchase Price for each sale of Mortgage Loans is paid by the Investor directly to an account of the Participant in accordance
with Section 5.2 and not to the Seller or any other person or entity, and 

  
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if at any time the Takeout Purchase Price is paid directly to Seller in contravention of the preceding, Seller agrees to hold such Takeout Purchase Price in trust for the benefit of Participant
and to immediately upon receipt thereof to remit such Takeout Purchase Price to Participant. 
 (jj) All necessary actions have
been taken to qualify the Mortgage Loans for purchase by the Investor. The sale of the Ownership Interest in the Mortgage Loans, as evidenced by the Participation Certificate, shall at all times be permitted under applicable regulations of the
Investor or by a waiver of such regulations. 
 (kk) Unless otherwise agreed to in writing by the Participant with respect to
any Mortgage Loans, prior to the purchase of the Ownership Interest in any Mortgage Loans on any applicable Purchase Date pursuant to this Agreement (i) the Seller shall have delivered the Mortgage Loan Documents relating to such Mortgage Loans
to the Custodian, in accordance with the Custody Agreement, and (ii) the Seller shall have provided the Participant with evidence reasonably satisfactory to Participant that the Mortgage Loans meet the eligibility requirements of the proposed
Investor that will purchase such Mortgage Loans from the Participant. 
 2.3 Participant in Reliance; Survival.
Participant is purchasing the Ownership Interest in reliance upon the representations, covenants and warranties of Seller, and Seller’s full and faithful compliance with all of the terms, covenants and conditions of this Agreement. The
representations, warranties, and covenants of Seller set forth in this Section shall survive termination of this Agreement. 

2.4 Representation of Participant. Participant hereby represents and warrants that Participant understands that the Participation
Certificates will not be registered or qualified under the Securities Act of 1933. 
  

	 	3.	SERVICING. 

 3.1
Servicing Standards. Seller shall take all actions necessary to service the Mortgage Loans in accordance with customary mortgage banking practices of prudent lending institutions and such actions as a reasonably prudent lender would take in
regard to loans held for its own account, all subject to and in accordance with the provisions of this Agreement. Seller may, with prior written approval of Participant, service the Mortgage Loan through a subservicer or retain an independent
contractor to perform certain servicing functions; provided, however, in the event any servicing is performed by such subservicer or any functions performed by such independent contractor, Seller shall remain liable for its servicing duties and
obligations under this Agreement and for the manner in which they are exercised by such subservicer or independent contractor. 

3.2 Collections and Application of Mortgage Payments; Certification. Seller shall: 

(a) Proceed diligently to collect all payments due under the Mortgage Loan Documents as they come due and to assure the performance of
all material terms, covenants and conditions of the Mortgage Loan Documents; 

  
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 (b) Hold and appropriately monitor and disburse all Mortgage Loan escrows; 

(c) Keep a complete and accurate account of all sums collected by Seller from the mortgagor and the application of such sums; 

(d) Accept prepayments on the Note from the mortgagor only to the extent expressly permitted in the Note or Mortgage and then only if
such prepayments include any applicable prepayment penalty or other fee, and accept condemnation and hazard insurance proceeds in accordance with the Mortgage Loan Documents; 
 (e) Segregate all funds received by Seller pursuant to the Mortgage Loan Documents and, subject to the requirements of Section 3.2(f) below, deposit such funds in a trust or custodial account with
Participant or, if approved in writing by Participant, with another institution whose accounts are insured by an agency or instrumentality of the United States government which institution shall satisfy the requirements of the Participant and the
Investor for the deposit of similar funds by approved seller-servicers, which depository requirements may be modified, only by request of the Seller, which requests must be approved by the Participant. Seller shall maintain such records and take all
such actions as may be necessary to secure and obtain the maximum insurance for such account. 
 (f) Seller
shall remit to Participant all regularly scheduled and other prepayments of principal, all prepayment premiums or penalties and all interest on the Note, all hazard insurance proceeds, all condemnation awards and all proceeds from the sale of the
Mortgaged Property (received pursuant to Section 3.9 hereof) that are actually received by the Seller (i) no later than the twenty-fifth (25th) day of each month (or the next business day if the twenty-fifth (25th) day of a month
is not a business day) for all payments received on or prior to the twentieth (20th) day of each month, and (ii) promptly and in any event not later than the twenty-fifth (25th) day of the following month in which such payments are received by the Seller with respect to any payments
received by Seller after the twentieth (20th) day of
any month. 
 (g) Provide Participant, on or before the twenty-fifth (25th) day of each month (or the business day
immediately following the twenty fifth (25th) day, if the twenty fifth (25th) day is not a business day), with a statement setting forth, as of the twentieth (20th) day of such month, the outstanding balance of the Notes after
recordation of the current month’s financial activity, itemization of principal, interest and any other payments collected, any delinquency in payments, any advances made by Seller pursuant to Section 3.7 hereof, and the remittance to
Participant. 
 (h) Promptly provide to Participant such additional information regarding the Mortgage Loans as Participant
shall reasonably request. 
 All funds received by Seller with respect to the Mortgage Loans, other than amounts constituting
servicing compensation, reimbursement for Seller advances, or escrowed funds belonging to the mortgagors, shall be held by Seller in trust for Participant to the extent of Participant’s Ownership Interest as required by this Agreement.

  
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 3.3 Insurance; Condemnation. 

(a) Seller shall assure that the Mortgaged Property is kept insured against loss by fire and such other hazards, casualties, and
contingencies as generally shall be required by reasonably prudent lenders in similar transactions. Such insurance shall be pursuant to a broad form all risk policy and shall name Seller and Participant as additional insureds pursuant to a standard
mortgagee clause. The insurance carrier providing the insurance shall be chosen by the mortgagor subject to Seller’s approval; such carrier shall meet the minimum rating requirements of the Investor for carriers of hazard insurance. 

(b) Seller shall receive the proceeds of all such insurance, or any award for the condemnation of all or any part of
the Mortgaged Property, in trust for the benefit of the Participant, subject to the terms of this Agreement. Seller will not make any agreement with respect to the reconstruction or rehabilitation of the Mortgaged Property without the prior written
consent of Participant; provided, however, such prior written consent shall not be required for any reconstruction or rehabilitation in an amount less than or equal to the greater of (i) One Hundred Thousand and 00/ 100 Dollars ($100,000. 00)
or (ii) two and one-half percent (2
 1/2%) of the outstanding principal balance of the respective Mortgage Loan. To the extent that any such insurance proceeds or condemnation award shall be applied as a prepayment on the Mortgage Loan it shall
be held in trust by Seller for the benefit of Participant and remitted pursuant to Section 3.2(f) hereof. 
 (c) To
the extent any insurance coverages described above are not maintained by the mortgagor, Seller shall advance funds to obtain such coverages and obtain reimbursement. 
 3.4 Material Change to Mortgaged Property. Seller shall, if and as soon as such information comes to its attention, promptly notify Participant of any material change in the condition of the
Mortgaged Property, any sale or transfer by the mortgagor of the legal or equitable title to the Mortgaged Property or any abandonment of the Mortgaged Property, and shall take any action in regard thereto as Participant shall direct, the costs of
which shall be paid by Seller. 
 3.5 Fidelity Bond; Errors and Omissions Insurance. Seller agrees to keep the following
in force at all times, at no cost to Participant, in such amounts as are required by the Investor for approved seller-servicers and reasonably satisfactory to Participant as to form, substance and company: 

(a) A fidelity bond of an incorporated surety company securing full protection and indemnity to Seller against loss of any money or other
property entrusted to Seller or Seller’s officers, employees or agents or coming into their control, caused by any dishonest, fraudulent or criminal act, direct or indirect, of Seller or of its officers, employees or agents. Seller shall
furnish a certificate evidencing such fidelity bond to Participant, upon request, and shall notify Participant if such fidelity bond coverage is decreased or exhausted. 
 (b) A policy of errors and omissions insurance. Upon request by Participant, Seller agrees to use its best efforts to obtain and deliver to Participant a certificate executed by said insurers to the
effect that they will use their best efforts to give Participant at least thirty (30) days’ prior written notification prior to cancellation of coverage under any such policy. 

(c) Seller may provide such fidelity and errors and omissions coverage by means of a blanket fidelity bond or a blanket errors and
omissions insurance policy. 

  
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 3.6 No Variation of Mortgage Loan Documents. Seller shall not be authorized or
empowered to waive or vary any terms of any Mortgage Loan Document or consent to any postponement, delay or other deviation from strict compliance by a mortgagor with any provision of any Mortgage Loan Document or consent to any secondary financing,
except as specifically authorized in writing by Participant. Seller shall promptly forward to Participant all requests for such waiver, variance or consent, and any related documentation received from a mortgagor. Participant shall use its best
efforts to respond promptly to Seller’s request. 
 3.7 Advances by Seller. On the date of remittance to Participant
under Section 3.2(f) hereof, Seller shall, to the extent such payment has not been made by the mortgagor as of such date, advance from its own funds such payment; provided, however, that Seller shall not be obligated to make more than one such
advance for which it has not been reimbursed. 
 3.8 Mortgage Loan Default. If the mortgagor shall fail to make any
payment due pursuant to the respective Mortgage Loan or shall fail to comply with any other covenant of any Mortgage Loan Document, which failure shall continue unremedied for thirty (30) days and shall give rise to Seller’s right, as
mortgagee, to accelerate the Mortgage Loan, Seller shall, within five (5) days thereafter, so notify Participant in writing. Seller shall consult with Participant as to whether to attempt to enter into a work-out arrangement with the mortgagor
or to proceed with foreclosure or acquisition of a deed in lieu of foreclosure. Seller shall proceed as directed by Participant, and shall be reimbursed by Participant for its reasonable out of pocket expenses in this regard as such expenses are
incurred. 
 3.9 Acquisition of Title to the Mortgaged Property. In the event that title to the Mortgaged Property is to
be acquired, title shall be taken in the name of the Participant or its designee, which may be Seller. Following acquisition of title to the Mortgaged Property, Seller shall, either itself or through an agent of its choosing, manage and operate the
Mortgaged Property for the benefit of Participant. Seller shall maintain the Mortgaged Property pursuant to such practices as are customary in the locality where the Mortgaged Property is located, and in accordance with procedures employed by
prudent property owners acting for their own account. Seller shall collect all rents for the benefit of Participant and remit to Participant on the twenty-fifth (25th) day of each month all Mortgaged Property income after expenses, including
reimbursement of Seller advances and payment of Seller’s management fee described below. Seller shall cooperate with Participant in the sale of the Mortgaged Property. Any such sale shall be pursuant to terms and conditions acceptable to
Participant in its sole discretion. The proceeds of any such sale shall be paid to Seller and remitted to Participant pursuant to Section 3.2(f) of this Agreement. In the event that Participant shall elect to accept a note or other noncash
compensation in the sale of the Mortgaged Property, Participant agrees to pay to Seller upon such sale any amounts then owing to Seller pursuant to this Agreement. 

  
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 3.10 Compliance with Law. Seller shall comply with all applicable federal, state and
local law and regulations. 
 3.11 Servicing Compensation. Seller shall be entitled to a servicing fee, which fee shall
be payable pursuant to that certain side letter agreement dated as of the date hereof by and between Seller and Participant (the “Fee Letter”). 
 3.12 Books and Records. Seller shall keep proper books of account and records reflecting the true sale of the Mortgage Loans to the Participant, which books and records shall be available for
inspection by Participant at all reasonable times during normal business hours. Except as may be specifically noted otherwise, the accounts and records of Seller relating to the Mortgage Loans, the Mortgaged Property, and the servicing relating
thereto shall be maintained in accordance with generally accepted accounting principles. 
 3.13 Provision of
Information. Promptly upon request, and in any event not less than annually within thirty (30) days of each year end, Seller shall provide to Participant such information as Participant shall reasonably request regarding Seller’s
compliance with this Agreement, including, but not limited to the requirements of Sections 3.2, 3.3, 3.4 and 3.5 hereof. 
 3.14
Seller Certification. The Seller shall provide periodic certifications and reports to the Participant as described on Exhibit C attached hereto (“Seller’s Certification”). 

 

	 	4.	TERM; TERMINATION. 

 4.1
Term of Agreement. The term of this Agreement is from the date hereof through November 19, 2013 unless sooner terminated as provided in Section 4.2 of this Agreement. For the avoidance of doubt, the parties hereto acknowledge and
agree that Participant shall be under no obligation to purchase any Ownership Interests at any time prior to such termination, and any such purchase shall be in the sole discretion of Participant as provided in Section 1.1. 

4.2 Termination. This agreement may be terminated (a) immediately by Participant upon the happening of any Seller Default (as
defined in Section 6 hereof), at the option of the Participant, (b) immediately by Participant upon any breach by Custodian or Owner’s Agent of any of their respective obligations, agreements, covenants or duties under the Custody
Agreement, (c) immediately by Participant upon any breach by Seller (or its assignee) of any terms of the Fee Letter, or (d) upon thirty (30) days prior notice by either party, in each case, without the payment of a termination fee or
compensation of any kind to the Seller. Termination of this Agreement shall not terminate any outstanding payment obligations owing by one party to another party hereunder in respect of any transactions occurring prior to the effective date of such
termination. 
 4.3 Continuation of Servicing Obligations. Notwithstanding any termination of this Agreement,
Seller’s obligation to service the Mortgage Loans pursuant to Section 3 hereof shall remain in effect until the earlier of (a) the sale of all Mortgage Loans to one or more Investors and the payment to Participant of all amounts due
under Section 3, or (b) the payment in full of all Mortgage Loans. 

  
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	 	5.	BAILEE LETTER; PAYMENT OF TAKEOUT PURCHASE PRICE TO PARTICIPANT; CERTAIN FEES PAYABLE TO SELLER. 

5.1 Bailee Letter. Seller shall provide instructions to the Custodian for the delivery of the Mortgage Loan Documents to an
Investor in accordance with the form of bailee letter attached to the Custody Agreement (the “Bailee Letter”). 

5.2 Authorization to Sell Unencumbered Mortgage Loans; Payment of Takeout Purchase Price to Participant. The Participant hereby
authorizes Seller to sell, transfer and convey to each Investor pursuant to the terms of the Takeout Commitment issued by such Investor all rights, title and interest in the Mortgage Loan covered thereby, unencumbered by Participant’s Ownership
Interest relating to such Mortgage Loan. The Investor shall be directed by Seller to pay the Takeout Purchase Price for all Mortgage Loans purchased by such Investor by wire transfer directly to the Participant in accordance with the terms of the
Bailee Letter and the Custody Agreement. 
 5.3 Certain Fees Paid to Seller. In consideration of the services provided by
Seller to Participant hereunder, the Participant shall pay to Seller promptly upon its receipt of the Takeout Purchase Price with respect to the sale of any Mortgage Loan, the Servicing/Administrative Fee and, to the extent applicable, any Marketing
Fee, in each case, as specified in the Fee Letter. 
  

	 	6.	SELLER DEFAULT; REMEDIES. 

(a) The occurrence of any of the following shall be a “Seller Default”: 

(i) Seller shall fail to make remittances as provided in Section 3.2(f) hereof, or if the Seller shall fail to take any and all
actions required to be taken by it under the terms of any Takeout Commitment or under any applicable Agency rule, regulation or guideline necessary or required for the consummation of the sale of the Underlying Mortgage Loan to the Investor pursuant
to such Takeout Commitment to occur. For the avoidance of doubt, the term “Seller Default” does not include the breach, through no fault of the Seller, by a Takeout Investor of its obligation to purchase a Mortgage Loan pursuant to a
Takeout Commitment issued by such Investor. 
 (ii) Seller shall assign, hypothecate, pledge or transfer in any manner this
Agreement or any of Seller’s rights hereunder, or suffer the creation of any lien upon, or security interest in, or the transfer of, any of Seller’s rights hereunder, by operation of law or otherwise in favor of an assignee, transferee,
pledgee, or secured party without Participant’s prior written approval; 
 (iii) Seller shall institute proceedings for
voluntary bankruptcy, or shall file a petition seeking reorganization under the Federal Bankruptcy Laws or for relief under any other law for the relief of debtors, or shall consent to the appointment of a conservator or receiver of all or
substantially all of its property, or shall make a general assignment for the benefit of its 

  
 16 

 
creditors, or shall admit in writing its inability to pay its debts as they become due, or shall be adjudged bankrupt or insolvent by a court of competent jurisdiction appointing a receiver,
liquidator or trustee of Seller or of all or substantially all of its property or approving any petition filed against Seller for its reorganization, and such adjudication or order shall remain in force or unstayed for a period of thirty
(30) days, or a final judgment or decree for the payment of money is entered against Seller and such judgment or decree is not discharged or stayed within sixty (60) days from the date of entry thereof; 

(iv) Any creditor of Seller files a petition to reorganize or liquidate Seller and such petition is not discharged or dismissed within
ninety (90) days after the date on which it is filed; or 
 (v) Any representation, warranty or covenant of Seller
contained herein is breached and Seller fails, within ten (10) days after written notice from Participant, to correct or cure such breach. 
 (b) In the event of a Seller Default, Participant shall have all remedies existing at law or equity including but not limited to the following remedies which may be exercised by Participant at its
election in any order (i) upon demand of Participant with regard to a breach relating to a particular Mortgage Loan (including, but not limited to, the failure of such Mortgage Loan to be covered by a Takeout Commitment of an Investor as
required under this Agreement), require Seller to repurchase such Ownership Interest in such Mortgage Loan upon demand of Participant for a price equal to the sum of: (A) the Purchase Price paid by the Participant for such Ownership
Interest, plus (B) accrued and unpaid interest thereon at the rate set forth in the Note for the Underlying Mortgage Loan, plus (C) any costs or expenses incurred by Participant relating to its purchase thereof and any fees
paid to Seller (or any assignee thereof) under this Agreement or the Fee Letter, minus (D) the amount of any collections in respect of principal and interest on such Mortgage Loan previously remitted by Seller to Participant; and
(ii) immediately take over the servicing of any or all of the Mortgage Loans and assume full and complete control of any or all of the Mortgage Loans and any rights in the Mortgage Loans that it does not already possess without any duty to
account to Seller. Without limiting any other remedies of the Participant provided for hereunder or under applicable law, if Seller fails to repurchase such Ownership Interest in such Mortgage immediately following demand in accordance with clause
(i) above of this subsection, Participant may in its sole and absolute discretion sell, transfer or assign, in whole or in part, its interest and rights in any Participation Certificate or Ownership Interest in respect of such Mortgage Loan,
together with all rights of Participant under this Agreement with respect thereto, to any person or entity without notice to or consent of Seller, provided that Seller may continue to recognize Participant as the owner of such Participation
Certificate or Ownership Interest until it receives written notice of such sale, transfer or assignment from Participant of such transferee or assignee. 
 (c) Seller shall be liable to Participant for, and shall promptly pay to Participant, any damages incurred or suffered as a result of a Seller Default or remaining after the exercise of any right or
remedy provided herein and Seller shall indemnify Participant and Participant’s officers, directors, employees and agents (collectively, the “Indemnitees”) and hold the Indemnitees harmless from any claim loss, damage,
liability or expense whatsoever (including without 

  
 17 

 
limitation, attorney’s fees) suffered or incurred by any of them and arising out of or resulting from or attributable to any Seller Default. The indemnification obligation set forth herein
shall survive the termination of this Agreement. All rights and remedies of Participant herein specified are cumulative and are in addition to, not in limitation of, any rights and remedies Participant may have by law or at equity. No waiver of any
default or failure or delay to exercise any right or remedy by Participant shall operate as a waiver of any other default or of the same default in the future or of any right or remedy with respect to the same or any other occurrence. 

 

	 	7.	MISCELLANEOUS 

 7.1
Term of Ownership Interest. The term of each Ownership Interest sold to Participant hereunder shall be coterminous with the term of the Underlying Mortgage Loan to which such Ownership Interest relates, subject to an Investor’s right to
terminate such Ownership Interest through its purchase of the Underlying Mortgage Loan and payment to the Participant of the Takeout Purchase Price as provided herein. 
 7.2 Successors and Assigns; Assignment. This Agreement is binding upon and is for the exclusive benefit of the parties hereto and their respective successors and permitted assigns, and shall not be
deemed to create or confer any legal or equitable right, remedy or claim upon any other person or entity whatsoever. Except as otherwise expressly provided in this Agreement, no party may assign, sell, transfer or subparticipate its rights, duties
or obligations under this Agreement without the writen consent of the other party hereto. Without limiting the foregoing, the parties hereto agree that Seller may assign all or a portion of its servicing duties, rights and obligations under
Section 3 of this Agreement and the Fee Letter to an affiliated entity of Seller, but such assignment shall not be effective except upon prior written notice thereof to the Participant and the execution and delivery by such assignee of a
written agreement in form and substance satisfactory to the Participant, whereby such assignee agrees to undertake in a manner satisfactory to the Participant the servicing duties or obligations of Seller under Section 3 of this Agreement that
are proposed to be so assigned. 
 7.3 Costs and Expenses. Seller and Participant shall be liable for their own costs and
expenses, including legal expenses, relating to the execution and performance of this Agreement. Except as otherwise provided herein, and in accordance with industry standards, Seller shall pay its own non-extraordinary costs and expenses of
servicing the Mortgage Loans. 
 7.4 No Partnership. Neither the execution of this Agreement, nor any sharing in the
benefits and burdens by Seller and Participant in respect of the Mortgage Loans or in the proceeds thereof, is intended nor shall be construed to constitute the formation of a partnership or joint venture between Seller and Participant, nor shall it
be construed to be an extension of credit or a loan by Participant to Seller. 
 7.5 Recordation of Loan Sale Agreement.
Upon the request of Participant, the parties hereto agree that a Memorandum of this Agreement may be prepared in a form acceptable to both parties and recorded in the county where Seller’s principal office is located and in the land records of
the jurisdictions where the Mortgaged Property is located; provided, however, upon transfer of the Participation Certificate by Participant, Participant shall deliver to Seller for recordation a termination or amendment of such recorded document.

  
 18 

 7.6 Amendment. No amendment or modification of this Agreement shall be valid unless
evidenced by an instrument, in writing, signed by Seller and Participant. 
 7.7 Severability. If anyone or more of the
covenants, agreements, provisions, or terms of this Agreement shall be for any reason whatsoever held invalid, 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. 

7.8 Waiver. Any waiver by a party of any obligation or forbearance to exercise any right hereunder shall in no event be deemed to
be binding upon such party in future instances where such right may be available to it. 
 7.9 Notice. Notices hereunder
shall be in writing, and may be delivered by hand, first class, registered or certified mail, express delivery, or telecopy or other telecommunication device capable of confirmation of receipt, addressed to: (a) Seller at the address set forth
in the first paragraph of this Agreement; (b) Participant, at the address set forth in the first paragraph of this Agreement; or at such other address as each party may furnish to the other in writing. 

7.10 Governing Law; Waiver of Jury Trial. 
 THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF INDIANA. 
 EACH PARTY HERETO KNOWINGLY, INTENTIONALLY AND IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF IN ANY WAY RELATED TO THIS AGREEMENT AND THE
TRANSACTIONS CONTEMPLATED HEREBY. 
 7.11 Counterparts. This Agreement may be executed and delivered in two or more
counterparts, each of which when so executed and delivered shall be an original, but all of which together shall constitute one and the same instrument. 
 7.12 Authority. The undersigned person executing this Agreement for and on behalf of Seller represents and certifies that he or she is an authorized representative of Seller and has been fully
empowered, and all necessary action has been taken, to execute and deliver this Agreement. The undersigned person executing this Agreement for and on behalf of Participant represents and certifies that he or she is an authorized representative of
Participant and has been fully empowered, and all necessary action has been taken, to execute and deliver this Agreement. 

[Remainder of page intentionally blank; signatures on following page] 

  
 19 

 IN WITNESS WHEREOF, the parties have duly executed and delivered this Master Loan
Participation and Servicing Agreement as of the date first written above. 
  

			
	SELLER:
	
	STONEGATE MORTGAGE CORPORATION
		
	By:	 	 /s/ Jim Cutillo

	Name:	 	 Jim Cutillo

	Its:	 	 CEO

	
	PARTICIPANT:
	
	BANK OF VIRGINIA
		
	By:	 	 /s/ Richard D. Dickinson

	Name:	 	 Richard D. Dickinson

	Its:	 	 President

  
 20 

 SCHEDULE I 
 Additional Mortgage Loan Criteria 
 [See Attached] 

 EXHIBIT A 
 Title Company Certification 
 CERTIFICATION BY TITLE COMPANY

  

					
	Loan Identification:	  	  
	  	
		  	  
	  	
		  	  
	  	

 The undersigned agrees to hold in trust for BANK OF VIRGINIA (“BOVA”) any funds wired to
it by BOVA, and such funds shall be disbursed only when the undersigned title company (a) has satisfied all closing instructions, (b) has issued a title insurance policy insuring the relevant mortgage as a first mortgage in form and
substance satisfactory to BOVA, and (c) holds the original executed Mortgage Loan Documents, including an endorsement of the Note in blank and an Assignment of the Mortgage in blank in trust for BOVA. 

Within two (2) business days following closing, the original Note, a certified copy of the Mortgage delivered to the applicable
recording office and originals of all of the other Mortgage Loan Documents shall be delivered to U.S. Bank National Association as custodian on behalf of BOVA pursuant to that certain Custody Agreement dated on or about November 19, 2012, by
and among BOVA, Stonegate Mortgage Corporation and U.S. Bank National Association. 
 Dated this      day of
, 20    . 
  

			
	Title Company:
	
	  

		
	By:	 	 ------------------Specimen Only ---------------------

	Name:	 	  

	Its:	 	  

 - End of Exhibit A - 

 EXHIBIT B 
 Form of Participation Certificate 
 PARTICIPATION CERTIFICATE

 evidencing a one-hundred percent (100%) undivided participation in the Mortgage Loans described on Schedule I attached hereto and
made a part hereof. 
 a permanent mortgage loan held in trust and serviced by STONEGATE MORTGAGE CORPORATION [Seller] 

THIS CERTIFIES THAT BANK OF VIRGINIA (“Participant”) is the registered owner of a one-hundred percent
(100%) undivided participation ownership interest in the permanent mortgage loan(s) identified on Schedule I attached hereto and made a part hereof (the “Mortgage Loans”) held by STONEGATE MORTGAGE CORPORATION
(“Seller”) as mortgagee of record and servicer, pursuant to the Master Loan Participation and Servicing Agreement dated as of November 19, 2012 by and among Participant and Seller (as amended, restated or otherwise modified
from time to time, the “Agreement”). This Participation Certificate is issued under and is subject to the terms, provisions and conditions of the Master Loan Participation and Servicing Agreement, which describes the Mortgage Loans,
and cannot be assigned or transferred except in accordance with the Agreement. 
 Seller certifies to Participant that, as of
the date hereof, the information set forth in Schedule I hereto is correct. 
 This Participation Certificate does not represent
an obligation of, or an interest in, Seller and is not insured or guaranteed by any government agency. This Participation Certificate is limited in right of payment to certain collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth in the Agreement. 
 Seller acknowledges that Participant may (and shall have the right, among other
things, to) pledge the Ownership Interests, as evidenced by this Participation Certificate, to the Federal Home Loan Bank of Atlanta (“FHLB”) or to any other financial institution that lends money to Participant (together with the
FHLB referred to as a “Third Party Creditor”), as collateral, and that such pledge shall remain in effect until such time as Participant conveys such Ownership Interests to either (i) an Investor or (ii) to the Seller as
result of the occurrence of a Seller Default pursuant to Section 6(b) of the Agreement. Seller further acknowledges and agrees that during such time as this Participation Certificate is pledged to a Third Party Creditor, (i) Seller will
hold the Mortgage Loan Documents in trust for the benefit of both Participant and the Third Party 

 
Creditor, as their interests may appear, and (ii) the Third Party Creditor shall have the right to take possession and ownership of the Ownership Interest pursuant to the documents governing
the extension of credit by such Third Party Creditor to the Participant or the grant of collateral by Participant in favor of such Third Party Creditor in connection therewith. Seller further agrees to provide the Third Party Creditor with duplicate
copies of all notices or other communications to or form Participant pursuant to the Agreement with respect to the Ownership Interest. Capitalized terms used in this Participation Certificate but not defined herein shall have the meaning ascribed to
them in the Agreement. 
 IN WITNESS WHEREOF, Seller has caused this Participation Certificate to be duly executed under its
official seal. 
  

			
	STONEGATE MORTGAGE CORPORATION
		
	By:	 	 ------------------Specimen Only ---------------------

	Name:	 	  

	Its:	 	  

  

			
	STATE OF                            
             	 	)
		 	) SS:
	COUNTY OF                            
         	 	)

 Before me, a Notary Public in and for said County and State, personally appeared
                                        , the
                     of Stonegate Mortgage Corporation, who, after having been duly sworn, acknowledged the execution of the foregoing instrument for
and on behalf of such corporation. 
 WITNESS, my hand and Notarial Seal this      day of
        , 20    . 
  

	
	  

	(                    ) Notary Public

  

							
	My Commission Expires:	 		  	My County of Residence:	  	
				
	  
	 		  	  
	  	

 SCHEDULE I 

 

	1.	Address of Mortgaged Property: 

  

	2.	Mortgagor: 

  

	3.	Mortgage Loan Amount and Mortgage Loan Number: 

  

	4.	Purchase Price: 

  

	5.	Note Rate: 

  

	6.	Appraised Value: 

  

	7.	Lockout/Prepayment Penalties/Yield Maintenance: 

  

	8.	Loan Term: 

  

	9.	Amortization Term: 

  

	10.	Anticipated Closing Date: 

  

	11.	Investor: 

  

	12.	Interest Calculation Method: 

  

	13.	Mortgagor’s FICO Score: 

  

	14.	Maturity Date: 

 Notes/Miscellaneous:

 - End of Exhibit B - 

 EXHIBIT C 
 Seller’s Certification 
  

	1.	Seller shall provide Participant with a copy of the Seller’s Balance Sheet, as contained in the Seller’s annual audited Financial Statements, certified to be
true and correct by an authorized officer of the Seller, within ninety (90) days after the end of each fiscal year. In addition, Seller shall provide Participant an annual certification, executed by an authorized officer of the Seller,
certifying that “During the preceding twelve (12) months, no financial event has occurred, other than as specified in this Certification, the effect of which has materially, adversely affected the Seller’s ability to perform its
obligations pursuant to the Master Loan Participation and Servicing Agreement, dated as of November 19, 2012, by and between Seller and BANK OF VIRGINIA.” 

 

	2.	Seller shall provide Bank of Virginia (“Participant”) with an annual certification that all insurance coverage required by the Master Loan
Participation and Servicing Agreement is in full force and effect. 

  

	3.	Seller shall provide the Participant with an annual certification that all fidelity bond and errors and omissions insurance required by the Master Loan Participation
and Servicing Agreement is in full force and effect. 

 - End of Exhibit C –

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