Document:

EX-10.1

July 20, 2005

Encore Credit Corp., Bravo Credit Corporation and ECC Capital Corporation

1833 Alton Parkway

Irvine, CA 92606

Attn: William Moffatt

Re: Commitment Letter for Revolving Credit and Security Agreement

Ladies and Gentlemen:

This Commitment Letter is made and entered into, as of the date set forth above, by and between
Countrywide Warehouse Lending, a California corporation (“Lender”) Encore Credit Corp., Bravo
Credit Corporation and ECC Capital Corporation (collectively “Borrower”). This Commitment Letter
supplements the Revolving Credit and Security Agreement (the “Agreement”) by and between Lender and
Borrower. In the event there exists any inconsistency between the Agreement and this Commitment
Letter, the latter shall be controlling notwithstanding anything contained in the Agreement to the
contrary. All capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Agreement. This Commitment Letter supercedes and replaces
any other Commitment Letter or amendments as of the Effective Date.

Effective Date:

July 20 2005

Term:

One (1) year, maturing on July 19, 2006

Aggregate Credit Limit:

Five Hundred Million Dollars ($500,000,000), $1,000,000 of the Aggregate Credit Limit shall be for
the exclusive use

of Bravo Credit Corporation $1,000,000 of the Aggregate Credit Limit shall be for the exclusive use
of ECC Capital Corporation, but will remain the obligations of Encore Credit Corp., Bravo Credit
Corporation and ECC Capital Corporation. Borrower shall be obligated to verify that the exclusive
limit for ECC Capital Corporation is adhered to prior to requesting an advance

Credit-Off Feature:

Additional $250,000,000 uncommitted. In order to qualify for Credit Off, a loan must:

	 	1.	 	Be in Tranche A, A-1 or B of Schedule 1;

	 	2.	 	Advance Rate shall be the lower of 100.50%; or 97.50% of mark-to-market; or 97.50% of
commitment price;

	 	3.	 	Have collateral delivered and accepted by Lender or an approved custodian;

	 	4.	 	Be allocated to a security(ies) to be underwritten by Countrywide Securities Corporation
(”CSC”) or a whole loan trade sold to CSC;

	 	5.	 	Borrower has provided Lender with a current whole loan market price from CSC;

	 	6.	 	Borrower has provided Lender with evidence of a hedge instrument on the financed loans, in a
form acceptable to Lender;

	 	7.	 	Any related due diligence by CSC has been completed;

	 	8.	 	Have other documents delivered to Lender or its designee as may be required by Lender;

	 	9.	 	In addition, interest and all other fees will continue to accrue until the final purchase
price is paid. Margin over 30 day LIBOR shall be .75%. Noncompliant and default loans are not
eligible for the Credit Off Feature.

Financial Covenants:

The ongoing availability of the Agreement is subject to the maintenance of the following financial
covenants:

	 	(a)	 	Minimum Tangible Net Worth of ECC Capital Corporation: $300,000,000 plus 80% of any new
equity.

	 	(b)	 	Minimum Liquidity: Borrower to maintain cash or cash equivalents, meeting the investment
quality requirements as defined in the Agreement, in a minimum amount equal to Thirty Million
($30,000,000), inclusive of the Over/Under Account Balance.

	 	(c)	 	Maximum ratio of Total Liabilities and Warehouse Debt (Warehouse Debt is inclusive of
outstandings on warehouse lines, repurchase facilities or other off balance sheet financing to
Tangible Net Worth) (excluding the related liability, asset and equity in CMO investments):
20:1 (excluding Credit Off and Countrywide’s Early Purchase Program).

	 	(d)	 	Net Income: Borrower shall show positive pre-tax net income when combining any two (2)
calendar quarters.

Other Covenants:

The ongoing availability of credit under the Agreement is subject to Borrower’s compliance with all
other covenants

in the Agreement, including, without limitation;

	 	(i)	 	Not making any material changes to its secondary marketing, underwriting, third party
origination and interest rate risk management practices without the prior consent of Lender.

	 	(ii)	 	in the event any loan allocated to a security(ies) underwritten and priced by CSC is removed
from such allocation for adverse investment quality for the related security, Borrower shall
be required to payoff such loan from Lender’s line of credit. If Borrower fails to comply
with such obligations, Lender shall not be required or deemed to have released its security
interest in such loan(s) and Lender shall have the right to direct CSC to offset from the
purchase proceeds from such security(ies) any amounts required to be paid by Borrower under
this section.

Advance Request Deadline (upon receipt by Lender of all requirements):

1:00 p.m. (Pacific time). Lender will use best efforts on wire requests received through 2:00 p.m.
(Pacific Time),

Advance requests received after 2:00 PM Pacific time shall be subject to a additional fee of $25.00
per Advance.

Deadline for daily receipt of funds and Purchase Advices by Lender:

1:00 p.m. (Pacific time).

Commitment Fee:

Due annually, 12.5 basis points, payable in quarterly installments, with the first installment due
prior to the Effective Date. The entire commitment fee is due even in the event of termination by
Borrower. The fee is payable based on Aggregate Credit Limit only and will be prorated in event of
increases

Unused Facility Fees:

Waived

Minimum Over/Under Account Balance:

$2,500,000 plus 0.50% of the outstanding Advances under Credit-Off Feature. (Borrower to be
entitled to interest thereon at LIBOR plus 0.75%. on the Minimum Over/Under Account Balance);

Eligible Loan:

Prior to each Advance and for so long as a mortgage loan is pledged to Lender, each such mortgage
loan will satisfy Lender’s eligibility criteria, including, but not limited to:

	 	(a)	 	Each mortgage loan will be in compliance with all representations and warranties contained in
the Agreement;

	 	(b)	 	No mortgage loan will be more than 30 days past its original funding date and no loan will be
contractually delinquent 30 days or more;

	 	(c)	 	No mortgage loan will be subject to either HOEPA requirements or any similar state or local
“high cost” law or regulation;

	 	(d)	 	Eligible property types are Single Family Residence, Condominium, Townhouse, Planned Urban
Development (PUD) and multiple unit properties of 2-4 units; ineligible property types
include co-op, mobile home, land, commercial and multi units of 5+units, or otherwise not
eligible per agency guidelines.

	 	(e)	 	Each mortgage loan will conform in all material respects to Borrower’s underwriting
guidelines, which shall be provided to, and approved by, Lender;

	 	(f)	 	No more than 5% of the aggregate outstanding balance will consist of mortgage loans with a
manufactured dwelling property type and no such mortgage loan will have an LTV in excess of
85%;

	 	(g)	 	No more than 5% of the aggregate outstanding balance will consist of mortgage loans having
credit grades of C- or D;

	 	(h)	 	No loan shall have a FICO score, on the primary borrower, of less than 500, other than as
indicated in Tranche A-1;

	 	(i)	 	No mortgage loan shall have an LTV or CLTV in excess of 100%;

	 	(j)	 	No more than 3% of the aggregate outstanding balance will consist of mortgage loans that are
stated income investment property;

	 	(k)	 	No loan shall have an overall debt-to-income ratio in excess of 55.0%;

	 	(l)	 	No mortgage loan will have an original principal balance in excess of $1,000,000, subject to
the restrictions of Tranche B in Schedule 1;

There will be no adverse selection with respect to mortgage loans delivered hereunder and that the
characteristics with respect to, but not limited to, note rate distribution, LTV, loan grade,
credit score and geographic distribution shall be consistent with the characteristics of Borrower’s
overall loan production.

Reporting requirements:

Financial Reports: Borrower to provide Lender with Interim financials together with all other
financial information requested by Lender no more than forty five (45) days following the last day
of the previous quarter end. Borrower to provide Lender with audited financials together with all
other financial information requested by Lender no more than ninety (90) days following the last
day of the fiscal year.

Borrower will provide Lender (a) an electronic data format as required but not more than weekly of
mortgage loans financed with Lender (data elements to be agreed upon). And (b) trade confirmations
and settlement schedules relating to Borrowers whole loan sale and securitization transactions
which include mortgage loans financed with Lender.

Reimbursement of Expenses:

Borrower shall reimburse Lender for certain out-of-pocket expenses under the following
circumstances:

	 	(a)	 	Due Diligence Fee: Borrower to reimburse Lender on a quarterly basis for all direct expenses
incurred in connection with any ongoing due diligence or monitoring under the facility
including, without limitation contract underwriting services, which shall not exceed $25,000
per quarter.

	 	(b)	 	Amendment Fee: A fee of $2,500 will be charged for any future amendments to the Credit
Agreement, Commitment Letter, personal guarantee or other required legal documents.

Guarantors:

None

1

Please acknowledge your agreement to the terms and conditions of this Commitment Letter by signing
in the appropriate space below and returning a copy of the same to the undersigned. Facsimile
signatures shall be deemed valid and binding to the same extent as the original.

Sincerely,

Countrywide Warehouse Lending

By: Riju Walia

Name            Riju Walia

Title: 1st VP Credit & Compliance

Date:

Agreed to and Accepted by:

Encore Credit Corp.

By: W. E. Moffatt

Name            William E. Moffatt

Title: Treasurer

Date: July 22, 2005

Bravo Credit Corporation

By: W. E. Moffatt

Name            William E. Moffatt

Title: Treasurer

Date: July 22, 2005

ECC Capital Corporation

By: W. E. Moffatt

Name            William E. Moffatt

Title: Treasurer

Date: July 22, 2005

2EX-10.2

AMENDMENT NO. 1

TO MASTER REPURCHASE AGREEMENT

Amendment No. 1, dated as of July 21, 2005 (this “Amendment”), by and between CREDIT
SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Buyer”), ENCORE CREDIT CORP., (“ECC”
and a “Seller”), ECC CAPITAL CORPORATION (“ECC Capital” and a “Seller”) and
BRAVO CREDIT CORPORATION (“Bravo” and a “Seller”).

RECITALS

The Buyer and the Sellers are parties to that certain Master Repurchase Agreement, dated as of
February 18, 2005 (the “Existing Repurchase Agreement”; as amended by this Amendment, the
“Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have
the meanings given to them in the Existing Repurchase Agreement.

The Buyer and the Sellers have agreed, subject to the terms and conditions of this Amendment,
that the Existing Repurchase Agreement be amended to reflect certain agreed upon revisions to the
terms of the Existing Repurchase Agreement.

Accordingly, the Buyer and the Sellers hereby agree, in consideration of the mutual premises
and mutual obligations set forth herein, that the Existing Repurchase Agreement is hereby amended
as follows:

Section 1. Definitions. Section 2 of the Existing Repurchase Agreement is
hereby amended by:

(a) deleting the definitions of “Market Value”, “Maximum Aggregate Purchase Price” and
“Pricing Rate” and replacing them with the following language:

““Market Value” means, with respect to any Purchased Mortgage Loan as of any date of
determination, the whole-loan servicing released fair market value of such Purchased Mortgage Loan
on such date as determined by Buyer (or an Affiliate thereof) in its good faith discretion.
Without limiting the generality of the foregoing, each Seller acknowledges that (a) in the event
that a Purchased Mortgage Loan is not subject to a Take-out Commitment, Buyer may deem the Market
Value for such Mortgage Loan to be no greater than par and (b) the Market Value of a Purchased
Mortgage Loan may be reduced (including to zero) by Buyer if:

(i) a breach of a representation, warranty or covenant made by a Seller in this
Agreement with respect to such Purchased Mortgage Loan has occurred and is
continuing and such breach would be reasonably likely to adversely affect the value
of such Purchased Mortgage Loan;

(ii) such Purchased Mortgage Loan (other than a Repurchased Mortgage Loan) is a
Non-Performing Mortgage Loan;

(iii) such Purchased Mortgage Loan has been released from the possession of the
Custodian under the Custodial Agreement (other than to a Take-out Investor pursuant
to a Bailee Letter) for a period in excess of ten (10) calendar days;

(iv) such Purchased Mortgage Loan has been released from the possession of the
Custodian under the Custodial Agreement to a Take-out Investor pursuant to a Bailee
Letter for a period in excess of forty-five (45) calendar days;

(v) such Purchased Mortgage Loan has been subject to a Transaction hereunder
for a period of greater than (a) 120 days for all Mortgage Loans other than Aged
Loans or Repurchased Mortgage Loans and (b) 180 days with respect to each Aged Loan
or Repurchased Mortgage Loan;

(vi) such Purchased Mortgage Loan is a Wet-Ink Mortgage Loan for which the
Mortgage File has not been delivered to the Custodian on or prior to the eighth
Business Day after the related Purchase Date;

(vii) such Purchased Mortgage Loan is no longer acceptable for purchase by
Buyer (or an Affiliate thereof) under any of the flow purchase or conduit programs
for which a Seller then has been approved due to a Requirement of Law relating to
consumer credit laws or otherwise;

(viii) when the Purchase Price for such Purchased Mortgage Loan is added to
other Purchased Mortgage Loans, the aggregate Purchase Price of all Repurchased
Mortgage Loans that are Purchased Mortgage Loans exceeds $3 million;

(ix) when the Purchase Price for such Purchased Mortgage Loan is added to other
Purchased Mortgage Loans, the aggregate Purchase Price of all Aged Loans (other than
Repurchased Mortgage Loans) that are Purchased Mortgage Loans exceeds $20 million;

(x) when the Purchase Price for such Purchased Mortgage Loan is added to other
Purchased Mortgage Loans, the aggregate Purchase Price of all Second Lien Mortgage
Loans (including HELOCs) that are Purchased Mortgage Loans exceeds $50 million;

(xi) when the Purchase Price for such Purchased Mortgage Loan is added to other
Purchased Mortgage Loans, the aggregate Purchase Price of all HELOCs that are
Purchased Mortgage Loans exceeds $30 million;

(xii) when the Purchase Price for such Purchased Mortgage Loan is added to
other Purchased Mortgage Loans, the aggregate Purchase Price of all Purchased
Mortgage Loans for which the credit quality is below that of a B Credit Mortgage
Loan exceeds 5% of the Maximum Aggregate Purchase Price;

(xiii) when the Purchase Price for such Purchased Mortgage Loan is added to
other Purchased Mortgage Loans, the aggregate Purchase Price of all Purchased
Mortgage Loans for which the origination date with respect to such Mortgage Loan is
greater than thirty (30) days prior to the related Purchase Date but not greater
than sixty (60) days prior to the related Purchase Date exceeds $50,000,000;

(xiv) during the first five (5) Business Days and the last five (5) Business
Days of each calendar month, when the Purchase Price for such Purchased Mortgage
Loan is added to other Purchased Mortgage Loans, the aggregate Purchase Price of all
Wet-Ink Mortgage Loans that are Purchased Mortgage Loans exceeds 40% of the Maximum
Aggregate Purchase Price;

(xv) other than during the first five (5) Business Days and the last five (5)
Business Days of each calendar month, when the Purchase Price for such Purchased
Mortgage Loan is added to other Purchased Mortgage Loans, the aggregate Purchase
Price of all Wet-Ink Mortgage Loans that are Purchased Mortgage Loans exceeds 30% of
the Maximum Aggregate Purchase Price.

(xvi) such Purchased Mortgage Loan is a Repurchased Mortgage Loan for which the
Mortgaged Property has been foreclosed upon or has been converted to REO Property.”

““Maximum Aggregate Purchase Price” means FIVE HUNDRED MILLION DOLLARS
($500,000,000).”

““Pricing Rate” means LIBOR plus:

(a) initially and until the ATNW $400m Step-Up Date:

(i) 1.125% with respect to Transactions the subject of which are
Sub-Prime Mortgage Loans, Second Lien Mortgage Loans, HELOCs or Wet-Ink
Mortgage Loans or (other than, in all cases, Aged Loans or Repurchased
Mortgage Loans);

(ii) 1.25% with respect to Transactions the subject of which are Aged
Loans (other than, in all cases, Repurchased Mortgage Loans

(iii) 2.00% with respect to Transactions the subject of which are
Repurchased Mortgage Loans;

(iv) the rate determined in the sole discretion of Buyer with respect
to Transactions the subject of which are Exception Mortgage Loans and any
other Transactions so identified by the Buyer in agreeing to enter into a
Transaction with respect to such Exception Mortgage Loan.

(b) On and after the ATNW $400m Step-Up Date:

(i) 0.750% with respect to Transactions the subject of which are
Sub-Prime Mortgage Loans, Second Lien Mortgage Loans, HELOCs or Wet-Ink
Mortgage Loans or (other than, in all cases, Aged Loans or Repurchased
Mortgage Loans);

(ii) 1.00% with respect to Transactions the subject of which are Aged
Loans (other than, in all cases, Repurchased Mortgage Loans

(iii) 1.75% with respect to Transactions the subject of which are
Repurchased Mortgage Loans;

(iv) the rate determined in the sole discretion of Buyer with respect to
Transactions the subject of which are Exception Mortgage Loans and any other
Transactions so identified by the Buyer in agreeing to enter into a Transaction with
respect to such Exception Mortgage Loan.

The Pricing Rate shall change in accordance with LIBOR, as provided in Section 5(a);
provided that, in the event that a Seller shall sell to Buyer or an affiliate of Buyer
pursuant to one of its flow purchase or conduit programs (but not including this Agreement)
Mortgage Loans in an aggregate principal balance of at least the Pricing Rate Reduction Threshold
in any calendar quarter, beginning with the calendar quarter which shall end on March 31, 2005, the
Pricing Rate shall be reduced for such calendar quarter by 0.15% per annum multiplied by the
average aggregate outstanding Purchase Price of all Purchased Mortgage Loans subject to
Transactions for such quarter divided by twelve and multiplied by three, which reduction shall be
applied to the weighted average Pricing Rate and shall be reflected in the Price Differential due
on the next succeeding Price Differential Payment Date.”

(b) adding the following definition in its proper alphabetical order:

““Non-Recourse Indebtedness” means all Indebtedness of any Seller or its Subsidiaries
that is non-recourse to such party, including any term securitization.”

Section 2. Covenants. Section 14 of the Existing Repurchase Agreement is
hereby amended by deleting subsection (b) in its entirety and replacing it with the
following language:

“b. Indebtedness to Adjusted Tangible Net Worth Ratio. Sellers’ ratio of Indebtedness
(excluding in all cases any Non-Recourse Indebtedness) to Adjusted Tangible Net Worth, on a
consolidated basis, shall not exceed (i) on and after the Effective Date until but not including
the REIT Event, 20:1 and (ii) on and after the REIT Event, 16:1.

Section 3. Conditions Precedent. This Amendment shall become effective on July
21, 2005, (the “Amendment Effective Date”), subject to the satisfaction of the following
conditions precedent:

(a) Delivered Documents. On the Amendment Effective Date, the Buyer shall have
received the following documents, each of which shall be satisfactory to the Buyer in form and
substance:

(i) this Amendment, executed and delivered by a duly authorized officer of the Buyer
and Seller;

(ii) such other documents as the Buyer or counsel to the Buyer may reasonably request.

(b) Payment of Attorneys’ Fees. On the Amendment Effective Date, the Seller shall
have paid attorneys’ fees to Buyer or its counsel either by payment or by authorized debit in
connection with this Amendment in an amount equal to $2,000.

Section 4. Representations and Warranties. The Sellers hereby represent and
warrant to the Buyer that they are in compliance with all the terms and provisions set forth
in the Repurchase Agreement on its part to be observed or performed, and that no Event of
Default has occurred or is continuing, and hereby confirm and reaffirm the representations
and warranties contained in Section 13 of the Repurchase Agreement.

Section 5. Limited Effect. Except as expressly amended and modified by this
Amendment, the Existing Repurchase Agreement shall continue to be, and shall remain, in full
force and effect in accordance with its terms.

Section 6. Counterparts. This Amendment may be executed by each of the parties
hereto on any number of separate counterparts, each of which shall be an original and all of
which taken together shall constitute one and the same instrument.

Section 7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW
PROVISIONS THEREOF.

[SIGNATURE PAGE FOLLOWS]

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

Buyer:

CREDIT SUISSE FIRST BOSTON

MORTGAGE CAPITAL LLC,

as Buyer

By: Bruce S. Kaiserman

Name: Bruce S. Kaiserman

Title: Vice President

Sellers:

ENCORE CREDIT CORP.

By: William E. Moffatt

Name: William E. Moffatt

Title: Treasurer

ECC CAPITAL CORPORATION

By: William E. Moffatt

Name: William E. Moffatt

Title: Treasurer

BRAVO CREDIT CORPORATION

By: William E. Moffatt

Name: William E. Moffatt

Title: Treasurer

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