Document:

pfsi_EX_10_25

		
			EXHIBIT 10.25
		

		
			 
		

		
			AMENDMENT NO. 6
		

		
			 
		

		
			TO SECOND AMENDED AND RESTATED
		

		
			FLOW SERVICING AGREEMENT
		

		
			 
		

		
			Amendment No. 6 to Second Amended and Restated Flow Servicing Agreement, dated as of June 1, 2016 (the "Amendment"), by and between PennyMac Loan Services, LLC, a Delaware limited liability company (the "Servicer"), and PennyMac Operating Partnership, L.P., Delaware limited partnership (the "Owner").
		

		
			 
		

		
			RECITALS
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			SECTION 1. Exhibits.  
		

		
			 
		

		
			1.1Exhibit 9 of the Existing Servicing Agreement is hereby amended by deleting it in its entirety and replacing it with the form attached hereto as Exhibit A.
		

		
			 
		

		
			2.1Exhibit 11 is hereby added to the Existing Servicing Agreement in the form attached hereto as Exhibit B.
		

		
			 
		

		
			SECTION 2.Conditions Precedent. This Amendment shall become effective as of the date first set forth above (the "Amendment Effective Date"), subject to the satisfaction of the following conditions precedent:
		

		
			 
		

		
			2.1Delivered Documents. On or prior to the Amendment Effective Date,
		

		
			each party shall have received the following documents, each of which shall be satisfactory to such party in form and substance:
		

		
			 
		

			
	
			
				 a)
			

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

		
			 
		

			
	
			
				 b)
			

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

		
			 
		

		
			2.2Representations and Warranties. On or prior to the Amendment Effective
		

		
			

		 

 

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

		
			 
		

		
			SECTION 3.Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Servicing Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms.
		

		
			 
		

		
			SECTION 4. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
		

		
			 
		

		
			SECTION 5.Counterparts. This Amendment may be executed in one or more counterparts and by different parties hereto on separate counterparts, each of which, when so executed, shall constitute one and the same agreement.
		

		
			 
		

		
			SECTION 6.Conflicts. The parties hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of the Existing Servicing Agreement, the provisions of this Amendment shall control.
		

		
			 
		

		
			[SIGNATURE PAGE FOLLOWS]
		

		
			 
		

		
			
		

		
			

		 

 

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

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						The Servicer:

					
					
						 

					
					
						PENNYMAC LOAN SERVICES, LLC

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						 /s/ Anne D. McCallion

				
	
					
						 

					
					
						 

					
					
						Name: 

					
					
						Anne D. McCallion 

				
	
					
						 

					
					
						 

					
					
						Title: 

					
					
						Senior Managing Director and 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						The Owner:

					
					
						 

					
					
						PENNYMAC OPERATING PARTNERSHIP, L.P.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By: PennyMac GP OP, Inc., 

				
	
					
						 

					
					
						 

					
					
						its General Partner

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						 /s/ Andrew S. Chang

				
	
					
						 

					
					
						 

					
					
						Name: 

					
					
						Andrew S. Chang

				
	
					
						 

					
					
						 

					
					
						Title: 

					
					
						Senior Managing Director and 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Chief Business Development Officer

				

		
			 
		

		
			
		

		
			

		 

 

 
		

		
			Exhibit A
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

 

EXHIBIT 9
		

		
			 
		

		
			TERM SHEET
		

		
			 
		

		
			 
		

		
			THIRD PARTY LOANS
		

		
			 
		

		
			BASE SERVICING FEES 
		

		
			(per loan)
		

		
			 
		

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

		
			 
		

			
	
			
				 (i.)
			

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

		
			 
		

			
	
			
				 (ii.)
			

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

		

		
			ADDITIONAL SERVICING FEES
		

		
			(per loan)
		

		
			 
		

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

		
			 
		

			
	
			
				 (i)
			

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

		
			 
		

			
	
			
				 (ii)
			

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

		
			 
		

			
	
			
				 (iii)
			

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

		
			 
		

			
	
			
				 (iv)
			

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

		
			 
		

			
	
			
				 (v)
			

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

		
			 
		

			
	
			
				 (vi)
			

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

		
			 
		

			
	
			
				 (vii)
			

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

		

		
			 
		

		
			
		

		
			

		 

 

DISTRESSED WHOLE LOANS
		

		
			 
		

		
			BASE SERVICING FEES
		

		
			(per loan)
		

		
			 
		

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

		
			 
		

			
	
			
				 (i)
			

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

		
			 
		

			
	
			
				 (ii)
			

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

		
			 
		

			
	
			
				 (iii)
			

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

		
			 
		

			
	
			
				 (iv)
			

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

		
			 
		

			
	
			
				 (v)
			

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

		
			 
		

			
	
			
				 (vi)
			

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

		
			 
		

			
	
			
				 (vii)
			

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

		

		
			SUPPLEMENTAL SERVICING FEES
		

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

		
			 
		

		

		
			
		

		
			

		 

 

THIRD PARTY LOANS AND DISTRESSED WHOLE LOANS
		

		
			 
		

		
			OTHER KEY PARAMETERS
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Remittance Types

					
					
						Actual/Actual Basis during Interim Servicing Period

				
	
					
						 

					
					
						 

				
	
					
						Remittance Date

					
					
						See definition of Remittance Date

				
	
					
						 

					
					
						 

				
	
					
						Servicing Advances

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

				
	
					
						 

					
					
						 

				
	
					
						Cost of Funds on Servicing Advances

					
					
						Refer to Section 5.04

				
	
					
						 

					
					
						 

				
	
					
						Prepayment Penalties

					
					
						Owner will retain 100% of the prepayment penalties.

				
	
					
						 

					
					
						 

				
	
					
						Late Charges Collected

					
					
						Servicer will retain 75% of late charges collected by Servicer

				
	
					
						 

					
					
						 

				
	
					
						Ancillary Income

					
					
						Servicer will retain 100% of all Ancillary Income

				
	
					
						 

					
					
						 

				
	
					
						Delegated Authority

					
					
						Refer to Exhibit 10 

				
	
					
						 

					
					
						 

				
	
					
						Contract Term

					
					
						Refer to Section 8.01 

				
	
					
						 

					
					
						 

				
	
					
						Eligible Mortgage Loan

					
					
						See definition of Eligible Mortgage Loan

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		
			ANCILLARY INCOME AND OTHER FEES
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		 

 

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			REO Property Lease Renewal Fee: $100 per lease renewed.
		

		
			 
		

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

		
			 
		

		
			REO Property Management Fee: Servicer's cost if property management services and/or any related software costs are outsourced to a third party property management firm or 9% of gross rental income if Servicer provides directly those property management services identified on Schedule [x] to the Agreement.
		

		
			    
		

		
			REO Property Tenant Paid Fees: Servicer may retain any tenant paid application fee or late rent fee.
		

		
			 
		

		
			REO Property Third-Party Vendor Fees: In the event Servicer provides property management services directly, Servicer may charge Owner the Servicer's cost for support services provided by any third-party vendor that arise out of Servicer’s property management services.  Such fees may include, but are not limited to, related software, real estate broker marketing, eviction and inspection services, as well as leasing fees to the real estate broker.
		

		
			 
		

		
			Tax Service Contract: $75.00 per Mortgage Loan. 
		

		
			 
		

		
			Flood Zone Service Contract: Servicer's cost. 
		

		
			 
		

		
			MERS Fee: Servicer's cost.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			

		 

 

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

		
			 
		

		
			In the event the Servicer effects a refinancing of a Distressed Whole Loan on behalf of the Owner and not through a third party lender and the resulting Mortgage Loan is readily saleable, or the Servicer originates a Mortgage Loan to facilitate the disposition of REO Property, the Servicer shall be entitled to fees and other compensation in connection with such originations based on market-based pricing and terms that are consistent with the pricing and terms offered by the Servicer to unaffiliated third parties on a retail basis. The amount of the compensation and the pricing and terms offered by the Servicer shall be subject to review by the Owner and the Servicer from time to time to reflect market rates. The Owner shall reimburse the Servicer for any out of pocket expenses that the Servicer incurs in connection with any such origination, including title fees, legal fees and closing costs.
		

		
			
		

		
			

		 

 

Exhibit B
		

		
			 
		

		
			PROPERTY MANAGEMENT SERVICES
		

		
			 
		

		
			For purposes of this Servicing Agreement, REO Property Management Services may include:
		

			
	
			
				 1.
			

			
	
			
			LEASING SERVICES.  

		
			
		

			
	
			
				 a.
			

			
	
			
			Market Rental Property;  

		
			 
		

			
	
			
				 b.
			

			
	
			
			Show Rental Property;  

		
			 
		

			
	
			
				 c.
			

			
	
			
			Qualify Tenant; 

		
			 
		

			
	
			
				 d.
			

			
	
			
			Lease Property; 

		
			 
		

			
	
			
				 e.
			

			
	
			
			Coordinate Move-In;  

		
			 
		

			
	
			
				 f.
			

			
	
			
			Manage Security Deposit; and

		
			 
		

			
	
			
				 g.
			

			
	
			
			Perform Move-Out Inspection.  

		
			 
		

			
	
			
				 2.
			

			
	
			
			PROPERTY MANAGEMENT SERVICES.

		
			 
		

			
	
			
				 a.
			

			
	
			
			Collect Rent;  

		
			 
		

			
	
			
				 b.
			

			
	
			
			Manage Evictions;  

		
			 
		

			
	
			
				 c.
			

			
	
			
			Respond to Tenant Inquiries;  

		
			 
		

			
	
			
				 d.
			

			
	
			
			Maintain Property;  

		
			 
		

			
	
			
				 e.
			

			
	
			
			Perform Routine Maintenance; and

		
			 
		

			
	
			
				 f.
			

			
	
			
			Manage Unit Turnover.  

		
			 
		

			
	
			
				 3.
			

			
	
			
			ASSET MANAGEMENT SERVICES

		
			 
		

			
	
			
				 a.
			

			
	
			
			Initial and On-Going Property Preservation Services; 

		
			 
		

			
	
			
				 b.
			

			
	
			
			Remediation Services;

		
			 
		

			
	
			
				 c.
			

			
	
			
			Utilities and Home Owner Association Management; 

		
			 
		

			
	
			
				 d.
			

			
	
			
			Code Violations Management and Mitigation; 

		
			 
		

			
	
			
				 e.
			

			
	
			
			Property Tax Management Services; 

		
			 
		

			
	
			
				 f.
			

			
	
			
			Legal Eviction Program Management;

		
			 
		

			
	
			
				 g.
			

			
	
			
			Provision of Cash-For-Relocation Program Management; 

		
			 
		

			
	
			
				 h.
			

			
	
			
			Valuation Services; 

		
			 
		

			
	
			
				 i.
			

			
	
			
			Authorization of Repairs and Improvements; and

		
			 
		

			
	
			
				 j.
			

			
	
			
			Property and Casualty Insurance Services.

		
			
		

		
			

		 

 

 
		

			
	
			
				 4.
			

			
	
			
			RENOVATION SERVICES

		
			 
		

			
	
			
				 a.
			

			
	
			
			Provision of Renovation Services;

		
			 
		

			
	
			
				 b.
			

			
	
			
			Initial Property Screening Assessment;

		
			 
		

			
	
			
				 c.
			

			
	
			
			Renovation Estimate Assessment;

		
			 
		

			
	
			
				 d.
			

			
	
			
			Property Onboarding Assessment;

		
			 
		

			
	
			
				 e.
			

			
	
			
			 Scope of Work;

		
			 
		

			
	
			
				 f.
			

			
	
			
			 Final Scope of Work;

		
			 
		

			
	
			
				 g.
			

			
	
			
			Management of Change Orders; and 

		
			 
		

			
	
			
				 h.
			

			
	
			
			Inspection for Turnover to Leasing. 

		
			 
		

			
	
			
				 5.
			

			
	
			
			PROPERTY PRESERVATION AND INSPECTION SERVICES

		
			 
		

			
	
			
				 a.
			

			
	
			
			Provision of Property Preservation and Inspection Services; 

		
			 
		

			
	
			
				 b.
			

			
	
			
			Communications to  Owner of Property Conditions, Preservation Activities and Repairs at Properties;

		
			 
		

			
	
			
				 c.
			

			
	
			
			Document Retention;

		
			 
		

			
	
			
				 d.
			

			
	
			
			Property Occupancy Inspection;

		
			 
		

			
	
			
				 e.
			

			
	
			
			Other Inspections As Needed and As Determined By Servicer;

		
			 
		

			
	
			
				 f.
			

			
	
			
			Lawn Maintenance;

		
			 
		

			
	
			
				 g.
			

			
	
			
			Pool Maintenance;

		
			 
		

			
	
			
				 h.
			

			
	
			
			Debris and Hazard Removal;

		
			 
		

			
	
			
				 i.
			

			
	
			
			Discoloration Remediation;

		
			 
		

			
	
			
				 j.
			

			
	
			
			Health and Life Safety Issue Remediation; Miscellaneous Preservation Activities;

		
			 
		

			
	
			
				 k.
			

			
	
			
			Code Violation Management and Mitigation;

		
			 
		

			
	
			
				 l.
			

			
	
			
			Management of Utilities and Home Owner Association;

		
			 
		

			
	
			
				 m.
			

			
	
			
			Marketing Signs.

		
			 
		

			
	
			
				 6.
			

			
	
			
			INSURANCE SERVICES

		
			 
		

			
	
			
				 a.
			

			
	
			
			Standard Property and Casualty Insurance Services; and 

		
			 
		

			
	
			
				 b.
			

			
	
			
			Claims Management and Loss Mitigation Services.pfsi_EX_10.70

		
			Exhibit 10.70
		

		
			 
		

		
			EXECUTION
		

		
			 
		

		
			AMENDMENT NUMBER FOURTEEN
		

		
			to the
		

		
			MASTER REPURCHASE AGREEMENT
		

		
			Dated as of June 26, 2012,
		

		
			by and between
		

		
			PENNYMAC LOAN SERVICES, LLC
		

		
			and
		

		
			CITIBANK, N.A.
		

		
			 
		

		
			This AMENDMENT NUMBER FOURTEEN (this “Amendment Number Fourteen”) is made this 25th day of July, 2016, by and between PENNYMAC LOAN SERVICES, LLC (“Seller”) and CITIBANK, N.A. (“Buyer”), to the Master Repurchase Agreement, dated as of June 26, 2012, by and between Seller and Buyer, as such agreement may be amended from time to time (the “Agreement”).  Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Agreement.
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			WHEREAS, Seller has requested to renew the term of the Agreement and that Buyer agree to amend the Agreement as more specifically set forth herein; and
		

		
			 
		

		
			WHEREAS, as of the date hereof, Seller represents to Buyer that the Seller Parties are in full compliance with all of the terms and conditions of the Agreement and each other Program Document and no Default or Event of Default has occurred and is continuing under the Agreement or any other Program Document.
		

		
			 
		

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

		
			 
		

		
			Section 1.   Amendment. Effective as of July 25, 2016 (the "Amendment Effective Date"):
		

		
			 
		

		
			(a)         Section 2 of the Agreement is hereby amended by adding the definitions of “Par Margin Amount” and "Par Margin Percentage" in the appropriate alphabetical order as follows: 
		

		
			 
		

		
			“Par Margin Amount” means, with respect to any Transaction, as of any date of determination, the amount obtained by application of the Par Margin Percentage to the Repurchase Price for such Transaction as of such date.
		

		
			 
		

		
			“Par Margin Percentage” shall have the meaning assigned thereto in the Pricing Side Letter. 
		

		
			 
		

		
			(b)        Section 6(a) of the Agreement is hereby amended by deleting the section in its entirety and replacing it with the following (bold added for emphasis):
		

		
			 
		

		
			If at any time either (i) the aggregate Market Value of all Purchased Loans subject to all Transactions is less than the aggregate MV Margin Amount for all such Transactions, or (ii) the aggregate unpaid principal balance of the Purchased Loans subject to all Transactions is less than the aggregate Par Margin Amount for all such Transactions, (either such event, a “Margin Deficit”), then Buyer may, by notice to Seller, require Seller in such Transactions to transfer to Buyer cash within the time period specified in clause (b) below, so that both (x) the cash and aggregate Market Value of the
		

		
			
		

		
			

		 

 

Purchased Loans will thereupon equal or exceed such aggregate MV Margin Amount and (y) the cash and unpaid principal balance of such Purchased Loans, will thereupon equal or exceed such aggregate Par Margin Amount (either such requirement, a “Margin Call”). Buyer shall deposit such cash into a non-interest bearing account until the next succeeding Repurchase Date.  Notwithstanding the foregoing, Buyer may elect in its sole discretion to permit Seller to transfer to Buyer additional Eligible Loans (“Additional Purchased Loans”) for no additional consideration or a combination of cash and Additional Purchased Loans, to cure a Margin Deficit, in either case within the time period set forth in clause (b) below. 
		

		
			 
		

		
			Section 2.   Fees and Expenses.  Seller agrees to pay to Buyer all reasonable out of pocket costs and expenses incurred by Buyer in connection with this Amendment Number Fourteen (including any Commitment Fee or extension fee due and payable, all reasonable fees and out of pocket costs and expenses of the Buyer’s legal counsel) in accordance with Sections 23 and 25 of the Agreement.
		

		
			 
		

		
			Section 3.   Representations.  Seller hereby represents to Buyer that as of the date hereof, the Seller Parties are in full compliance with all of the terms and conditions of the Agreement and each other Program Document and no Default or Event of Default has occurred and is continuing under the Agreement or any other Program Document.
		

		
			 
		

		
			Section 4.   Binding Effect; Governing Law.  This Amendment Number Fourteen shall be binding and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  THIS AMENDMENT NUMBER FOURTEEN SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT FOR SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW WHICH SHALL GOVERN).
		

		
			 
		

		
			Section 5.   Counterparts.  This Amendment Number Fourteen 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 6.   Limited Effect.  Except as amended hereby, the Agreement shall continue in full force and effect in accordance with its terms.  Reference to this Amendment Number Fourteen need not be made in the Agreement or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, the Agreement, any reference in any of such items to the Agreement being sufficient to refer to the Agreement as amended hereby.
		

		
			 
		

		
			[Signature Page Follows]
		

		
			 
		

		
			 
		

		
			

		 

 

IN WITNESS WHEREOF, Seller and Buyer have caused this Amendment Number Fourteen to be executed and delivered by their duly authorized officers as of the Amendment Effective Date.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PENNYMAC LOAN SERVICES, LLC,

				
	
					
						 

					
					
						(Seller)

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Pamela Marsh

				
	
					
						 

					
					
						Name:

					
					
						Pamela Marsh

				
	
					
						 

					
					
						Title:

					
					
						Managing Director, Treasurer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						CITIBANK, N.A.

				
	
					
						 

					
					
						(Buyer and Agent, as applicable)

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Susan Mills

				
	
					
						 

					
					
						Name:

					
					
						Susan Mills

				
	
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

					
					
						Citibank, N.A.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Acknowledged:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY, LLC 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Pamela Marsh

					
					
						 

				
	
					
						Name:

					
					
						Pamela Marsh

					
					
						 

				
	
					
						Title: 

					
					
						Managing Director, Treasurer

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		 

		

			Amendment Number Fourteen to Master Agreement PLS-Agency

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}]]