Document:

pmt-ex103_75.htm

Exhibit 10.3

AMENDMENT NO. 2

TO THIRD AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

Amendment No. 2 to Third Amended and Restated Master Repurchase Agreement, dated as of April 24, 2020 (this “Amendment”), among Credit Suisse First Boston Mortgage Capital LLC (the “Administrative Agent”), Credit Suisse AG, a company incorporated in Switzerland, acting through its Cayman Islands Branch (a “Committed Buyer” and a “Buyer”), Alpine Securitization LTD (a “Buyer”), PennyMac Holdings, LLC (“PennyMac Holdings”), PennyMac Corp. (“PMC”), PennyMac Operating Partnership, L.P., together in their capacity as sellers (“POP”, and together with PennyMac Holdings and PMC, each, a “Seller”, and collectively, the “Sellers”), PMC REO Financing Trust, as an asset subsidiary (the “Existing REO Subsidiary”), PMC REO Trust 2015-1, as an asset subsidiary (the “Joining REO Subsidiary”, together with the Existing REO Subsidiary, individually and collectively, the “REO Subsidiary”, and together with the Sellers, the “Seller Parties”), and PennyMac Mortgage Investment Trust (“PMIT”) and POP, in their capacity as guarantors (each, a “Guarantor”, and collectively, the “Guarantors”).

RECITALS

The Administrative Agent, the Buyers, the Seller Parties and the Guarantors are parties to that certain Third Amended and Restated Master Repurchase Agreement, dated as of March 14, 2019 (as amended by Amendment No. 1, dated as of April 26, 2019, the “Existing Repurchase Agreement”; and as further amended by this Amendment, the “Repurchase Agreement”).  The Guarantors are parties to that certain Third Amended and Restated Guaranty, dated as of March 14, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty”), by the Guarantors in favor of Administrative Agent.  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Repurchase Agreement or the Guaranty, as applicable.

The Administrative Agent, the Buyers, the Seller Parties and the Guarantors 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.  As a condition precedent to amending the Existing Repurchase Agreement, the Administrative Agent has required the Guarantors to ratify and affirm the Guaranty on the date hereof.

Accordingly, the Administrative Agent, the Buyers, the Seller Parties and the Guarantors hereby agree, in consideration of the mutual promises 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:

1.1deleting the definition of “Termination Date” in its entirety and replacing it with the following: 

“Termination Date” means the earlier of (a) April 23, 2021, and (b) the date of the occurrence of an Event of Default.

-1-

 

1.2adding the following definitions in their proper alphabetical order:

“E-Sign” means the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq.

“UETA” means the Official Text of the Uniform Electronic Transactions Act as approved by the National Conference of Commissioners on Uniform State Laws at its Annual Conference on July 29, 1999.

1.3deleting the definitions of “CUSIP Facility Documents” and “CUSIP Repurchase Agreement” and any and all references thereto in their entirety. 

SECTION 2.Conditions Precedent.  Section 10(b) of the Existing Repurchase Agreement is hereby amended by deleting clause (5) thereof in its entirety and replacing it with the following:

(5)Requirements of Law.  Neither Administrative Agent nor Buyers shall have determined that the introduction of or a change in any Requirement of Law or in the interpretation or administration of any Requirement of Law applicable to Administrative Agent or any Buyer has made it unlawful, and no Governmental Authority shall have asserted that it is unlawful, for Administrative Agent or any Buyer to enter into Transactions or remit Purchase Price Increases with a Pricing Rate based on the Reference Rate.

SECTION 3.Non-assignability.  Section 22(b) of the Existing Repurchase Agreement is hereby amended by deleting the reference to Section 7 therein and replacing it with a reference to Section 11.

SECTION 4.Counterparts.  Section 31 of the Existing Repurchase Agreement is hereby amended by deleting such section in its entirety and replacing it with the following:

31.Counterparts.

This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all such counterparts shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Agreement in a Portable Document Format (PDF) or by facsimile shall be effective as delivery of a manually executed original counterpart of this Agreement.  The parties agree that this Agreement, any addendum or amendment hereto or any other document necessary for the consummation of the transactions contemplated by this Agreement may be accepted, executed or agreed to through the use of an electronic signature in accordance with the E-Sign, UETA and any applicable state law.  Any document accepted, executed or agreed to in conformity with such laws will be binding on all parties hereto to the same extent as if it were physically executed and each party hereby consents to the use of any secure third party electronic signature capture service providers with appropriate document access tracking, electronic signature tracking and document retention as may be approved by the Administrative Agent in its sole discretion. 

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SECTION 5.General Interpretive Principles.  Section 41(h) of the Existing Repurchase Agreement is hereby amended by deleting the reference to Section 5-102(7) and replacing it with a reference to Section 1-201(b)(20).

SECTION 6.Authorized Representatives.  Schedule 2 to the Existing Repurchase Agreement is hereby amended by deleting such schedule in its entirety and replacing it with Annex A hereto.

SECTION 7.Conditions Precedent.  This Amendment shall become effective as of the date hereof (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent:

7.1Delivered Documents.  On the Amendment Effective Date, the Administrative Agent on behalf of Buyers shall have received the following documents, each of which shall be satisfactory to the Administrative Agent in form and substance:

(a)this Amendment, executed and delivered by duly authorized officers of the Administrative Agent, the Buyers, the Seller Parties and the Guarantors; 

(b)Amendment No. 2 to Third Amended and Restated Pricing Side Letter, executed and delivered by duly authorized officers of the Administrative Agent, the Buyers, the Seller Parties and the Guarantors; and

(c)such other documents as the Administrative Agent or counsel to the Administrative Agent may reasonably request.

SECTION 8.Representations and Warranties.  Each Seller Party hereby represents and warrants to the Administrative Agent and Buyers that it is 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 confirms and reaffirms the representations and warranties contained in Section 13 of Repurchase Agreement.

SECTION 9.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 10.Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original, and all such counterparts shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment in a Portable Document Format (PDF) or by facsimile shall be effective as delivery of a manually executed original counterpart of this Amendment.  The parties agree that this Amendment, any addendum or amendment hereto or any other document necessary for the consummation of the transactions contemplated by this Amendment may be accepted, executed or agreed to through the use of an electronic signature in accordance with the E-Sign, UETA and any applicable state law.  Any document accepted, executed or agreed to in conformity with such laws will be binding on all parties hereto to the same extent as if it were physically executed and each party hereby consents to the use of any secure third party electronic signature capture service 

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providers with appropriate document access tracking, electronic signature tracking and document retention as may be approved by the Administrative Agent in its sole discretion.

SECTION 11.Severability. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

SECTION 12.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.

SECTION 13.Reaffirmation of Guaranty.  The Guarantors hereby ratify and affirm all of the terms, covenants, conditions and obligations of the Guaranty. Each Guarantor acknowledges and agrees that the term “Obligations” as used in the Guaranty shall apply to all of the Obligations of the Seller Parties to Administrative Agent and Buyers under the Repurchase Agreement and related Program Agreements, as amended hereby.

[Remainder of page intentionally left blank]

 

 

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IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed as of the date first above written.

 

 

	
 
	
 
	
CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC, 

	
 
	
 
	
as Administrative Agent
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Margaret Dellafera

	
 
	
 
	
 
	
Name:  Margaret Dellafera 
	
 

	
 
	
 
	
 
	
Title:  Vice President 
	
 

 

 

	
 
	
 
	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Committed Buyer and as a Buyer

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Margaret Dellafera

	
 
	
 
	
 
	
Name:  Margaret Dellafera
	
 

	
 
	
 
	
 
	
Title:  Vice President
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Ernest Calabrese

	
 
	
 
	
 
	
Name:  Ernest Calabrese
	
 

	
 
	
 
	
 
	
Title:  Authorized Signatory 
	
 

 

 

	
 
	
 
	
ALPINE SECURITIZATION LTD as a Buyer,

by Credit Suisse AG, New York Branch as Attorney-in-Fact

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Jason Ruchelsman

	
 
	
 
	
 
	
Name:  Jason Ruchelsman
	
 

	
 
	
 
	
 
	
Title:  Director
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Kevin Quinn

	
 
	
 
	
 
	
Name:  Kevin Quinn
	
 

	
 
	
 
	
 
	
Title:  Vice President
	
 

 

Signature Page to Amendment No. 2 to Third Amended and Restated Master Repurchase Agreement

 

	
 
	
 
	
PENNYMAC CORP., as a Seller

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Pamela Marsh using an electronic signature

	
 
	
 
	
 
	
Name: Pamela Marsh
	
 

	
 
	
 
	
 
	
Title: Senior Managing Director and
	
 

	
 
	
 
	
 
	
Treasurer

 

 

	
 
	
 
	
PENNYMAC HOLDINGS, LLC, as a Seller

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Pamela Marsh using an electronic signature

	
 
	
 
	
 
	
Name: Pamela Marsh
	
 

	
 
	
 
	
 
	
Title: Senior Managing Director and
	
 

	
 
	
 
	
 
	
Treasurer

 

 

	
 
	
 
	
PMC REO FINANCING TRUST, as REO

   Subsidiary

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
   By: PennyMac Corp., as Administrator

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Pamela Marsh using an electronic signature

	
 
	
 
	
 
	
Name: Pamela Marsh
	
 

	
 
	
 
	
 
	
Title: Senior Managing Director and 
	
 

	
 
	
 
	
 
	
Treasurer

 

 

	
 
	
 
	
PMC REO TRUST 2015-1,

	
 
	
 
	
 
	
as REO Subsidiary
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By: PennyMac Corp., as Administrator
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Pamela Marsh using an electronic signature

	
 
	
 
	
 
	
Name: Pamela Marsh
	
 

	
 
	
 
	
 
	
Title: Senior Managing Director and
	
 

	
 
	
 
	
 
	
Treasurer

 

 

Signature Page to Amendment No. 2 to Third Amended and Restated Master Repurchase Agreement

 

	
 
	
 
	
PENNYMAC MORTGAGE INVESTMENT TRUST, as a Guarantor 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Pamela Marsh using an electronic signature

	
 
	
 
	
 
	
Name: Pamela Marsh
	
 

	
 
	
 
	
 
	
Title: Senior Managing Director and
	
 

	
 
	
 
	
 
	
Treasurer

 

 

	
 
	
 
	
PENNYMAC OPERATING PARTNERSHIP,

	
 
	
 
	
 
	
L.P., as a Seller and as a Guarantor 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:  PennyMac GP OP, Inc., its General Partner

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Pamela Marsh using an electronic signature

	
 
	
 
	
 
	
Name: Pamela Marsh
	
 

	
 
	
 
	
 
	
Title: Senior Managing Director and
	
 

	
 
	
 
	
 
	
Treasurer

 

 

 

Signature Page to Amendment No. 2 to Third Amended and Restated Master Repurchase Agreement

 

Annex A
to the Amendment

ADMINISTRATIVE AGENT AND BUYER AUTHORIZATIONS

Any of the persons whose signatures and titles appear below, including any other authorized officers, are authorized, acting singly, to act for Administrative Agent and/or Buyers under this Agreement:

 

	
Name
	
Title
	
Signature

	
Margaret Dellafera
	
Vice President
	
 

	
Elie Chau
	
Vice President
	
 

	
Robert Durden
	
Vice President
	
 

	
Ron Tarantino
	
Vice President
	
 

	
Pete Sack
	
Vice President
	
 

	
Kwaw De Graft-Johnson
	
Vice President
	
 

	
Dominic Obaditch
	
Vice President
	
 

	
Sean Walker
	
Vice President
	
 

	
Ernest Calabrese
	
Vice President
	
 

	
Jonathan Braus
	
Vice President
	
 

	
Charles Trombley
	
Vice President
	
 

 

 

Annex Apmt-ex104_74.htm

Exhibit 10.4

 

[Information indicated with brackets has been excluded from this exhibit because it is not material and would be competitively harmful if publicly disclosed]

 

JOINT AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT (FREDDIE MAC MSRS) AND AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT PRICING SIDE LETTER

This Joint Amendment No. 2 to Loan and Security Agreement  and Amendment No. 1 to Pricing Side Letter is made as of this 24th day of April, 2020 (this “Amendment”), by and among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC (the “Administrative Agent”), CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH (the “Lender”), PENNYMAC MORTGAGE INVESTMENT TRUST (the “Guarantor”) and PENNYMAC CORP. (“PMC Borrower”) and PENNYMAC HOLDINGS, LLC ( “PMH Borrower” and together with PMC Borrower, the “Borrowers”) amends that certain Loan and Security Agreement, dated as of February 1, 2018 (as amended by Amendment No. 1, dated as of January 29, 2020, and as may be further amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), by and among the Lender, the Guarantor and the Borrowers, and the related Loan and Security Agreement Pricing Side Letter, dated February 1, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Pricing Side Letter” and Pricing Side Letter, together with the Loan Agreement, the “Agreements”), by and among the Borrowers, the Guarantor and the Lender.

WHEREAS, the Administrative Agent, the Lender, the Guarantor and the Borrowers have agreed to amend the Loan Agreement and the Pricing Side Letter as more particularly set forth herein.

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.Amendments to the Loan Agreement. Effective as of the date hereof:

(a)Section 1.1 of Schedule I of the Loan Agreement is hereby amended by deleting the defined terms “Maturity Date,” “MLRA Pricing Side Letter,” “Default Rate” and “Obligations” in their entirety and replacing such terms with the following:

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

“Maturity Date” means October 21, 2020.

“MLRA Pricing Side Letter” means that certain Third Amended and Restated Pricing Side Letter, dated as of March 14, 2019, by and among CSFB, CSCIB, Alpine Securitization Ltd., PMC, Holdings, PMC REO Financing Trust, PMC REO Trust 2015-1, Guarantor and POP with respect to the Roll-Up Agreement and the External Rewarehouse Agreement.

“Obligations” means the Outstanding Aggregate Loan Amount, all accrued and unpaid interest thereon and all other amounts payable by a Borrower to the Lender pursuant to this Agreement, the Note or any other Facility Document or any amounts payable by a Borrower pursuant to Section 11.12 hereof.

 

 

(b)Section 1.1 of Schedule I of the Loan Agreement is hereby amended by adding the defined terms “Base Rate,” “Exposure Margin Deficit,” “Financing Documents” and “Other Financing Agreements” in proper alphabetical order:

“Base Rate” has the meaning assigned to the term in the Pricing Side Letter.

“Exposure Margin Deficit” has the meaning assigned to the term in the Pricing Side Letter.

“Financing Documents” means any or all of the “Program Agreements,” “Facility Documents” or any similar term as defined in each Other Financing Agreement.

“Other Financing Agreements” means each of the agreements listed on Schedule II hereto, which may be updated from time to time in a written confirmation signed by the parties to this Agreement.

(c)Section 2.05 of the Loan Agreement is hereby amended by replacing only the first occurrence of the word “LIBOR Rate” therein with “Base Rate.”

(d)Section 2.08(b) of the Loan Agreement is hereby amended by deleting in its entirety and replacing it with the following: 

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

(e)The Loan Agreement is hereby amended by adding the following section in proper numerical order:

Section 4.06Other Financing Agreements. Borrower hereby delivers an irrevocable instruction to the buyer or lender under any Financing Document that upon receipt of notice of an Event of Default under this Agreement, the buyer or lender thereunder is authorized and instructed to (i) remit to Lender hereunder directly any amounts otherwise payable to Borrower and (ii) deliver to Lender all collateral otherwise deliverable to Borrower, to the extent all obligations then due and owing under such Other Financing Agreement have been paid in full.  In furtherance of the foregoing, upon repayment of the outstanding repurchase price or loan amount under any Other Financing Agreement and termination of all obligations of the Borrower thereunder or other termination of the related Financing Documents following repayment of all obligations thereunder, the related buyer or lender under any Financing Document is hereby instructed to deliver to Lender hereunder any collateral (as such term may be defined under the related Financing Documents) then in its possession or control. 

2

 

(f)Section 7.01 of the Loan Agreement is hereby amended by deleting subclause (w)(iii) in its entirety and replacing it with the following: 

(iii)Reserved.

(g)Section 7.01 of the Loan Agreement is hereby amended by adding the following subclause (cc)(ii): 

	
 
	
(ii)
	
On the last Business Day of the month, Borrower shall report to Lender whether, as of the last Business Day of the month, the Exposure Margin Deficit exceeds zero. 

(h)Section 8.03 of the Loan Agreement is hereby amended by deleting “and” at the end of subclause (d)(ii), adding the following subclause (d)(iii) and renumbering subclause (d)(iii) in proper numerical order:

(iii) to the Lender or any Affiliate any amount then due to such Persons pursuant to Section 11.12 that have not been paid by the Borrowers; and

(i)Section 11.12 of the Loan Agreement is hereby amended by adding the language “or any Termination Fee” immediately after “Surplus Proceeds.”

(j)Section 11.15(e) of the Loan Agreement is hereby amended by adding the language “or any Termination Fee” immediately after “Surplus Proceeds.”

(k)Schedule 5.02 of the Loan Agreement is hereby amended by adding the following new subclause (vi) to clause (e) thereto, in proper numerical order: 

(vi)Guarantor has maintained profitability of at least $1.00 in Net Income for at least one of the two prior Test Periods.

(l)The Loan Agreement is hereby amended by adding Schedule II in proper order attached hereto as Exhibit A.

SECTION 2.Amendments to the Pricing Side Letter. Effective as of the date hereof:

(a)Section 1 of the Pricing Side Letter is hereby amended by deleting the defined terms “Applicable Margin” and “Available Facility Amount” in their entirety and replacing such terms with the following:

 “Applicable Margin” means [*****]. 

“Available Facility Amount” means: (i) an amount agreed to by the Lender that, when added to the aggregate outstanding repurchase price under the Roll-Up Agreement and CSCIB’s pro rata portion of the FMSR VF1 Repo, would not exceed the Maximum Combined Purchase Price; or (ii) the lesser of: (A) the Borrowing Base or (B) the amount that, when added to the aggregate outstanding repurchase price under the Roll-Up Agreement and CSCIB’s pro rata portion of the FMSR VF1 Repo, would not exceed the Maximum Combined Committed Purchase Price; provided, however, that the Available Facility Amount shall not exceed the positive difference between $375,000,000, minus the Lender’s pro rata share of the aggregate outstanding purchase price under the FMSR VF1 Repo; in each case, as may be modified from time to time in a written confirmation signed by the parties hereto.

3

 

For purposes of this definition, the terms “Maximum Combined Purchase Price,” “Maximum Combined Committed Purchase Price” and “Roll-Up Agreement” shall have the meaning assigned to such terms in the MLRA Pricing Side Letter. 

(b)Section 1 of the Pricing Side Letter is hereby amended by adding the following defined terms “Actual Seller Equity,” “Base Rate,” “Exposure Margin Deficit” and “Required Seller Equity,” in proper alphabetical order:

“Actual Seller Equity” means the amount, measured on the last Business Day of each month, equal to the product of (x) the aggregate outstanding purchase price under the Roll-Up Agreement on such day, and (y) [**].

“Base Rate” means the greater of (a) the LIBOR Rate or (b) [*****].

“Exposure Margin Deficit” means, the excess, if any, measured on the last Business Day of each month, of (x) the Required Seller Equity, over (y) the Actual Seller Equity.

“Required Seller Equity” means the amount, measured on the last Business Day of each month, equal to the product of (A) [*****] (B) the sum of (x) CSCIB’s pro rata portion of the aggregate outstanding repurchase price under the FMSR VF1 Repo on such day and (y) the Outstanding Aggregate Loan Amount under the Agreement on such day, and (C) [**].

SECTION 3.Fees and Expenses. For purposes of this Amendment, the following terms shall have the following meanings:

“Structuring Fee” means an amount equal to the product of (i) [*****] and $375,000,000.

“Up-front Fee” means an amount equal to the product of (i) [*****] and $375,000,000.

The Borrowers agree to pay to the Lender all fees and out of pocket expenses incurred by the Lender in connection with this Amendment, including all reasonable fees and out of pocket costs and expenses of the legal counsel to the Lender incurred in connection with this Amendment, in accordance with Section 3.03 of the Loan Agreement.  On the date hereof, the Borrowers shall pay to the Lender the Up-front Fee and the Structuring Fee. The Up-front Fee and the Structuring Fee shall be fully earned on the date hereof and nonrefundable when paid. 

SECTION 4.Defined Terms. Any terms capitalized but not otherwise defined herein shall have the respective meanings set forth in the Loan Agreement or the Pricing Side Letter, as applicable.

SECTION 5.Limited Effect. Except as amended hereby, each Agreement shall continue in full force and effect in accordance with its terms. Reference to this Amendment need not be made in the Agreements 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 Agreements, any reference in any of such items to the Agreements being sufficient to refer to the Agreements as amended hereby.

SECTION 6.Representations. In order to induce the Lender and the Administrative Agent to execute and deliver this Amendment, each of PMC Borrower, PMH Borrower and the Guarantor hereby represents to the Administrative Agent and the Lender that as of the date hereof, (i) each of PMC Borrower, PMH Borrower and the Guarantor is in full compliance with all of the terms and conditions of the Facility Documents and remains bound by the terms thereof, and (ii) no default or event of default has occurred and is continuing under the Facility Documents.

4

 

SECTION 7.Governing Law. This Amendment and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the laws of the State of New York, without regard to principles of conflicts of laws (other than Sections 5‐1401 and 5‐1402 of the New York General Obligations Law which shall be applicable).

SECTION 8.Counterparts. For the purpose of facilitating the execution of this Amendment, and for other purposes, this Amendment may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. 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 9.Miscellaneous.

(a)This Amendment shall be binding upon the parties hereto and their respective successors and assigns.

(b)The various headings and sub-headings of this Amendment are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment or the Agreements or any provision hereof or thereof.

 

 

[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

 

5

 

IN WITNESS WHEREOF, the Lender, the Administrative Agent, the Guarantor and the Borrowers have each caused their names to be duly signed to this Amendment by their respective officers thereunto duly authorized, all as of the date first above written.

 

	
 
	
 
	
CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL LLC,

	
 
	
 
	
as Administrative Agent

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Dominic Obaditch

	
 
	
 
	
 
	
Name: 
	
Dominic Obaditch

	
 
	
 
	
 
	
Title:
	
Vice President

 

	
 
	
 
	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

	
 
	
 
	
As Lender

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Dominic Obaditch

	
 
	
 
	
 
	
Name: 
	
Dominic Obaditch

	
 
	
 
	
 
	
Title:
	
Authorized Signatory

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Margaret Dellafera

	
 
	
 
	
 
	
Name:
	
Margaret Dellafera

	
 
	
 
	
 
	
Title:
	
Authorized Signatory

 

[Joint Amendment No. 2 to Loan and Security Agreement and 

Amendment No. 1 to Pricing Side Letter (CS-PMC-PMH)]

 

 

	
 
	
 
	
PENNYMAC CORP.,

	
 
	
 
	
as a Borrower

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Pamela Marsh using an electronic signature

	
 
	
 
	
 
	
Name: 
	
Pamela Marsh

	
 
	
 
	
 
	
Title:
	
Senior Managing Director and Treasurer

 

	
 
	
 
	
PENNYMAC HOLDINGS, LLC,

	
 
	
 
	
as a Borrower

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Pamela Marsh using an electronic signature

	
 
	
 
	
 
	
Name: 
	
Pamela Marsh

	
 
	
 
	
 
	
Title:
	
Senior Managing Director and Treasurer

 

[Joint Amendment No. 2 to Loan and Security Agreement and 

Amendment No. 1 to Pricing Side Letter (CS-PMC-PMH)]

 

 

	
 
	
 
	
PENNYMAC MORTGAGE INVESTMENT TRUST,

	
 
	
 
	
as a Guarantor

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Pamela Marsh using an electronic signature

	
 
	
 
	
 
	
Name: 
	
Pamela Marsh

	
 
	
 
	
 
	
Title:
	
Senior Managing Director and Treasurer

 

 

 

[Joint Amendment No. 2 to Loan and Security Agreement and 

Amendment No. 1 to Pricing Side Letter (CS-PMC-PMH)]

 

EXHIBIT A

 

SCHEDULE II

 

OTHER FINANCING AGREEMENTS

 

Third Amended and Restated Master Repurchase Agreement, dated as of March 14, 2019 (as may be further amended, restated, supplemented or otherwise modified from time to time, the “Roll-Up Agreement”), by and among Credit Suisse First Boston Mortgage Capital LLC, as administrative agent, Credit Suisse AG, Cayman Islands Branch, as committed buyer and a buyer, Alpine Securitization Ltd., as a buyer, PennyMac Corp, as a seller, PennyMac Holdings, LLC, as a seller, PennyMac Operating Partnership, L.P., as a seller, PMC REO Financing Trust, as an asset subsidiary, PMC REO Trust 2015-1, as an asset subsidiary, PennyMac Mortgage Investment Trust, as a guarantor, and PennyMac Operating Partnership, L.P., as a seller and as a guarantor.

Second Amended and Restated Master Repurchase Agreement, dated as of April 28, 2017 (as nay be further amended, restated, supplemented or otherwise modified from time to time, the “External Rewarehouse Agreement”), by and among Credit Suisse First Boston Mortgage Capital LLC, as administrative agent, Credit Suisse AG, Cayman Islands Branch, as committed buyer and a buyer, Alpine Securitization Ltd., as a buyer, PennyMac Operating Partnership, L.P., as a seller, and, PennyMac Mortgage Investment Trust, as a guarantor.

Master Repurchase Agreement, dated as of December 20, 2017 (as may be further amended, restated, supplemented or otherwise modified from time to time, the “FMSR VF1 Repo”), by and among Credit Suisse First Boston Mortgage Capital LLC, as administrative agent, Credit Suisse AG, Cayman Islands Branch, as repo buyer, and PennyMac Corp, as repo seller. 

EXHIBIT A

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