Document:

EXHIBIT
10.44

 

AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT (the “Agreement”) dated as of February 6, 2009 between HANOVER
CAPITAL MORTGAGE HOLDINGS, INC. (the “Borrower”) and JWH HOLDING
COMPANY, LLC (the “Lender”).

 

WHEREAS, the
Borrower and the Lender entered into that certain Loan and Security Agreement,
dated as of September 26, 2008 (the “Original Loan Agreement”); and

 

WHEREAS, the
parties wish to amend and restate the Original Loan Agreement to, among other
things, provide for additional loans to be made by the Lender to the Borrower;

 

NOW, THEREFORE,
the parties hereto agree as follows:

 

ARTICLE I

 

Definitions 

 

As used in this Agreement, the following
terms have the meanings specified below:

 

“Bankruptcy
Event”:  the occurrence of either of
the following: (a) an involuntary proceeding shall be commenced or an
involuntary petition shall be filed seeking (i) liquidation,
reorganization or other relief in respect of the Borrower or its debts, or of a
substantial part of its assets, under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Borrower or for a substantial part of its assets, and,
in any such case, such proceeding or petition shall continue undismissed for 60
days or an order or decree approving or ordering any of the foregoing shall be
entered; or (b) the Borrower shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other
relief under any Federal, state or foreign bankruptcy, insolvency, receivership
or similar law now or hereafter in effect, (ii) consent to the institution
of, or fail to contest in a timely and appropriate manner, any proceeding or
petition described in clause (a) of this definition, (iii) apply for
or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Borrower or for a substantial part of
its assets, (iv) file an answer admitting the material allegations of a
petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors or (vi) take any action for the
purpose of effecting any of the foregoing.

 

 “Business Day”:  a day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by
law to close.

 

“Collateral”:  the Collateral Account, all security
entitlements (as such term is defined in Section 8-102(a)(17) of the New York
UCC) with respect to the Securities and any other financial assets held
therein, and all products and Proceeds of the above.

 

“Collateral
Account”:  Account number 1045005132,
maintained by the Securities Intermediary, which is subject to the Control
Agreement.

 

 

“Control
Agreement”:  the Securities Account
Control Agreement, dated as of September 25, 2008, among the Borrower, the
Lender and the Securities Intermediary, with respect to the Collateral Account,
as it may be amended from time to time.

 

“dollars”
or “$”:  lawful money of the
United States of America.

 

“Effective
Date”:  the date on which the
conditions specified in Section 4.01 are satisfied.

 

“Exchange
Agreements”:  collectively, the
Exchange Agreement, dated as of September 29, 2008, as amended, among the
Borrower, Amster Trading Company and Ramat Securities, Ltd, and the Exchange
Agreement, dated as of September 29, 2008, as amended, between the
Borrower and Taberna Preferred Funding I, Ltd.

 

“Exchange
Loan Maximum Amount”:  the difference
between (i) $2,750,000 less (ii) the sum of (A) $600,000 plus
(B) the amount of cash otherwise available to the Borrower (as determined in
good faith by the Lender after consultation with the Borrower) on the Final
Exchange Date in order to pay amounts due under the Exchange Agreements.

 

 “Exchange Loans”:  collectively, the First Exchange Loan and the
Final Exchange Loan.

 

“Exchange
Obligations”:  the collective
reference to the unpaid principal of and interest on the Exchange Loans
(including, without limitation, interest accruing at the then applicable rate
provided in this Agreement after the filing of any petition in bankruptcy, or
the commencement of any insolvency, reorganization or like proceeding, relating
to the Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding).

 

“Final
Exchange Date”:  the date on which
the conditions specified in Section 4.03 are satisfied.

 

“Final
Exchange Loan”:  the loan made by the
Lender to the Borrower pursuant to Section 2.03(b) of this Agreement.

 

 “First Exchange Date”:  the date on which the conditions specified in
Section 4.02 are satisfied.

 

“First
Exchange Loan”:  the loan made by the
Lender to the Borrower pursuant to Section 2.03(a) of this Agreement,
in the principal amount of $600,000.

 

“General
Loans”:  the loans made by the Lender
to the Borrower pursuant to Section 2.05 of this Agreement.

 

“General
Obligations”:  the collective
reference to the unpaid principal of and interest on the General Loans
(including, without limitation, interest accruing at the then applicable rate
provided in this Agreement after the filing of any petition in bankruptcy,

 

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or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding).

 

 “GSE”: 
any of the following government-sponsored entities: the Federal National
Mortgage Association, the Government National Mortgage Association, and the
Federal Home Loan Mortgage Corporation.

 

“Hedging
Agreements”:  (a) a rate swap
transaction, swap option, basis swap, forward rate transaction, interest rate
option, cap transaction, floor transaction, collar transaction, credit
protection transaction, credit swap, credit default swap, credit default
option, total return swap, credit spread transaction or other financial
instrument or interest (including any option with respect to any of these
transactions) or (b) a type of transaction that is similar to any
transaction referred to in clause (a) above that is currently, or in the
future becomes, recurrently entered into in the financial markets (including
terms and conditions incorporated by reference in such agreement) and which is
a forward, swap, future, option or other derivative on one or more rates, debt
securities or other debt instruments, economic indices or measures of economic
risk or value, or other benchmarks against which payments or deliveries are to
be made.

 

“LIBOR”:
for any Loan, the rate per annum equal to 3 Month LIBOR as published in the
Wall Street Journal for the Business Day previous to the date the request for
such Loan is made.

 

“Loans”:  the loans made by the Lender to the Borrower
pursuant to this Agreement.

 

“Maturity
Date”:  The earlier of (i) June 26,
2009, (ii) the date on which the Lender demands repayment of the Loans or (iii) the
occurrence of a Bankruptcy Event.

 

“Mortgage
Backed Securities”:  Asset-backed
securities whose cash flows are backed by the principal and interest payments
of a set of mortgage loans.

 

“New York
UCC”:  the Uniform Commercial Code as
from time to time in effect in the State of New York.

 

“Person”:  any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership,
governmental authority or other entity.

 

“Proceeds”:  all “proceeds” as such term is defined in Section 9-102(a)(64)
of the New York UCC.

 

“Ramius
Facility”:  the Master Repurchase
Agreement, dated as of August 10, 2007 between the Borrower and RCG PB,
Ltd., as it has been amended, supplemented, restated or otherwise modified
through the date hereof.

 

“REIT Loans”:  the loans made by the Lender to the Borrower
pursuant to Section 2.01 of this Agreement.

 

3

 

“REIT
Obligations”:  the collective
reference to the unpaid principal of and interest on the REIT Loans and all
other obligations and liabilities of the Borrower (including, without
limitation, interest accruing at the then applicable rate provided in this
Agreement after the filing of any petition in bankruptcy, or the commencement
of any insolvency, reorganization or like proceeding, relating to the Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) to the Lender (other than the Exchange Obligations and the
General Obligations), whether direct or indirect, absolute or contingent, due
or to become due, or now existing or hereafter incurred, which may arise under,
out of, or in connection with, this Agreement or any other document made,
delivered or given in connection herewith, in each case whether on account of
principal, interest or otherwise.

 

 “Securities”: (i) Mortgage Backed
Securities with prime loan collateral rated AAA guaranteed by a GSE and (ii) any
security issued or guaranteed as to principal or interest by the United States,
or by a Person controlled or supervised by and acting as an instrumentality of
the Government of the United States pursuant to authority granted by the
Congress of the United States, in each case owned by the Borrower, which are
held in the Collateral Account.

 

“Securities
Intermediary”:  Regions Bank, in the
capacity as “securities intermediary” (as such term is defined in Section 8-102(a)(14)
of the New York UCC) with respect to the Collateral Account.

 

ARTICLE II

 

The Loans

 

Section 2.01.          REIT Loans.  Subject to the terms and conditions set forth
herein, beginning on the Effective Date and until the Maturity Date the Lender
agrees to make at the request of the Borrower REIT Loans to the Borrower in an
aggregate amount not to exceed $4,000,000.00 outstanding at any one time.  Subject to compliance with Section 4.01
hereof, the Lender shall make any such requested REIT Loan available to the
Borrower by 12:00 noon on the second Business Day after receiving such request
from the Borrower; provided, however, the initial REIT Loan under the Original
Loan Agreement, in the amount of $1,100,000, was made on September 26,
2008, and an additional REIT Loan under the Original Loan Agreement, in the
amount of $1,200,000, was made on October 30, 2008.  Each such REIT Loan shall be in a minimum
amount of $1,000,000, and shall be in increments of $100,000.  The Borrower shall use the proceeds of any
REIT Loan to purchase Securities, which Securities shall be deposited into the
Collateral Account.

 

Section 2.02.          Interest and
Principal Payments on REIT Loans. 
Each REIT Loan shall bear interest at a rate per annum equal to LIBOR
plus 0.5%. Interest shall be computed on the basis of a year of 360 days, and
in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

 

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(a)           The Borrower hereby
unconditionally promises to pay to the Lender the then unpaid principal amount
of the REIT Loans, together with accrued unpaid interest thereon, on the
Maturity Date.

 

(b)           The Borrower shall have
the right at any time and from time to time to prepay the REIT Loans in whole
or in part, together with accrued unpaid interest on the amount of the REIT
Loans so prepaid; provided, however, that the Borrower may make only one such
prepayment during any calendar month. 
Any principal amounts so prepaid may be reborrowed, pursuant to the
provisions of this Agreement.

 

(c)           The Lender shall, on
behalf of the Borrower, maintain at its address referred to in Section 5.01
a register for the recordation of the principal and interest in respect of the
REIT Loans owing from time to time.  The
entries in such register shall be conclusive, in the absence of manifest error.

 

(d)           The Borrower shall make
each payment of the REIT Loans required to be made by it hereunder prior to
12:00 noon, New York City time, on the date when due, in immediately available
funds, without set-off or counterclaim. 
If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business Day,
and, in the case of any payment accruing interest, interest thereon shall be
payable for the period of such extension.

 

Section 2.03.          Exchange Loans.  (a) Subject to the terms and conditions
set forth herein, on the First Exchange Date the Lender agrees to make the
First Exchange Loan to the Borrower. 
Subject to compliance with Section 4.02 hereof, the Lender shall
make such requested First Exchange Loan available to the Borrower by 12:00 noon
on the First Exchange Date.  The Borrower
shall use the proceeds of the First Exchange Loan to make the payments due on
the First Exchange Date under the Exchange Agreements.

 

(b)           Subject
to the terms and conditions set forth herein, beginning on the Final Exchange
Date and until the Maturity Date the Lender agrees to make at the request of
the Borrower a single Final Exchange Loan to the Borrower in an amount not to
exceed the Exchange Loan Maximum Amount. 
Subject to compliance with Section 4.03 hereof, the Lender shall
make such requested Final Exchange Loan available to the Borrower by 12:00 noon
on the Business Day after receiving such request from the Borrower.  The Borrower shall use the proceeds of the
Final Exchange Loan to make the payments due under the Exchange Agreements.

 

Section 2.04.          Interest and Principal
Payments.  The Exchange Loans shall
bear interest at a rate per annum equal to LIBOR plus 0.5%. Interest shall be
computed on the basis of a year of 360 days, and in each case shall be payable
for the actual number of days elapsed (including the first day but excluding
the last day).

 

(a)           The Borrower hereby
unconditionally promises to pay to the Lender the then unpaid principal amount
of the Exchange Loans, together with accrued unpaid interest thereon, on the
Maturity Date.

 

5

 

(b)           The Borrower shall have
the right at any time and from time to time to prepay the Exchange Loans in
whole or in part, together with accrued unpaid interest on the amount of the
Exchange Loans so prepaid; provided, however, that the Borrower may make only
one such prepayment during any calendar month. 
Any principal amounts so prepaid may not be reborrowed.

 

(c)           The Lender shall, on
behalf of the Borrower, maintain at its address referred to in Section 5.01
a register for the recordation of the principal and interest in respect of the
Exchange Loans owing from time to time. 
The entries in such register shall be conclusive, in the absence of
manifest error.

 

(d)           The Borrower shall make
each payment of the Exchange Loans required to be made by it hereunder prior to
12:00 noon, New York City time, on the date when due, in immediately available
funds, without set-off or counterclaim. 
If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business
Day, and, in the case of any payment accruing interest, interest thereon shall
be payable for the period of such extension.

 

Section 2.05.          General Loans.  Subject to the terms and conditions set forth
herein, beginning on the Effective Date and until the Maturity Date the Lender
agrees to make at the request of the Borrower General Loans to the Borrower in
an aggregate amount not to exceed $1,000,000 outstanding at any one time.  Subject to compliance with Section 4.01
hereof, the Lender shall make any such requested General Loan available to the
Borrower by 12:00 noon on the second Business Day after receiving such request
from the Borrower.  Each such General
Loan shall be in a minimum amount of $100,000, and shall be in increments of
$100,000.  The Borrower shall use the
proceeds of any General Loan in order to secure and maintain directors and
officers liability insurance coverage for the period up to and including the Maturity
Date.

 

Section 2.06.          Interest and
Principal Payments on General Loans. 
Each General Loan shall bear interest at a rate per annum equal to LIBOR
plus 0.5%. Interest shall be computed on the basis of a year of 360 days, and
in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).

 

(a)           The Borrower hereby
unconditionally promises to pay to the Lender the then unpaid principal amount
of the General Loans, together with accrued unpaid interest thereon, on the
Maturity Date.

 

(b)           The Borrower shall have
the right at any time and from time to time to prepay the General Loans in
whole or in part, together with accrued unpaid interest on the amount of the
General Loans so prepaid; provided, however, that the Borrower may make only one
such prepayment during any calendar month. 
Any principal amounts so prepaid may be reborrowed, pursuant to the
provisions of this Agreement.

 

(c)           The Lender shall, on
behalf of the Borrower, maintain at its address referred to in Section 5.01
a register for the recordation of the principal and interest in respect of the
General Loans owing from time to time. 
The entries in such register shall be conclusive, in the absence of
manifest error.

 

6

 

(d)           The Borrower shall make
each payment of the General Loans required to be made by it hereunder prior to
12:00 noon, New York City time, on the date when due, in immediately available
funds, without set-off or counterclaim. 
If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business
Day, and, in the case of any payment accruing interest, interest thereon shall
be payable for the period of such extension.

 

ARTICLE III

 

Collateral

 

Section 3.01.          Security Interest.  The Borrower hereby assigns and transfers to
the Lender, and hereby grants to the Lender a security interest in, the
Collateral, as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the REIT Obligations.

 

Section 3.02.          Maintenance of
Perfected Security Interest; Further Documentation.  The Borrower shall maintain the security
interest created by this Agreement as a first priority perfected security
interest and shall defend such security interest against the claims and demands
of all Persons whomsoever.

 

(a)           At any time and from
time to time, upon the written request of the Lender, the Borrower will
promptly and duly execute and deliver, and have recorded, such instruments and
documents and take such actions as the Lender may reasonably request for the
purpose of obtaining or preserving the full benefits of this Article III
and of the rights and powers herein granted, including, without limitation, (i) filing
any financing or continuation statements under the Uniform Commercial Code (or
other similar laws) in effect in any jurisdiction with respect to the security
interests created hereby and (ii) taking any actions necessary to enable
the Lender to obtain “control” (within the meaning of the applicable Uniform
Commercial Code) with respect to any of the Collateral.

 

Section 3.03.          Remedial Provisions.  (a) If the Borrower does not pay all
amounts due and owing with respect to the REIT Obligations on the Maturity
Date, (i) the Lender shall have the right to receive any and all
distributions, payments or other Proceeds paid in respect of the Collateral and
make application thereof to the REIT Obligations and (ii) any or all of
the Collateral relating to the REIT Loans shall be registered in the name of
the Lender or its nominee, and the Lender or its nominee may thereafter
exercise all rights pertaining to such Collateral as if it were the absolute
owner thereof, all without liability except to account for property actually
received by it, but the Lender shall have no duty to the Borrower to exercise
any such right, privilege or option and shall not be responsible for any
failure to do so or delay in so doing.

 

(b)           If the Borrower does not
pay all amounts due and owing with respect to the REIT Obligations on the
Maturity Date, the Lender, may exercise, in addition to all other rights and
remedies granted to it in this Agreement and in any other instrument or
agreement

 

7

 

securing, evidencing or relating to the REIT
Obligations, all rights and remedies of a secured party under the New York UCC
or any other applicable law with respect to the Collateral.

 

ARTICLE IV

 

Conditions

 

Section 4.01.          Effective Date. 
The obligations of the Lender to make any REIT Loan or General Loan
hereunder shall not become effective until the date on which each of the
following conditions is satisfied:

 

(a)           The Lender shall have
received from the Borrower a counterpart of this Agreement signed on behalf of
the Borrower;

 

(b)           The Lender shall have
received the Control Agreement executed by the Borrower and the Securities
Intermediary, which Lender acknowledges it has received;

 

(c)           The Lender shall have
received from the Borrower information in a form acceptable to the Lender
indicating, as of September 30, 2008, pro forma for the termination of the
Ramius Facility, the Borrower’s most current compliance ratios with respect to
its status as a REIT and its exemption under Section 3(c)(5)(C) of
the Investment Company Act of 1940, which Lender acknowledges it has received;

 

(d)           If a REIT Loan has been
requested, the Borrower shall have deposited into the Collateral Account
Securities with a fair market value equal the principal amount of the REIT Loan
requested; and

 

(e)           The Maturity Date shall
not have occurred.

 

Section 4.02.          First Exchange Date. 
The obligations of the Lender to make the First Exchange Loan hereunder
shall not become effective until the date on which each of the following
conditions is satisfied:

 

(a)           The Lender shall have
received from the Borrower a counterpart of this Agreement signed on behalf of
the Borrower;

 

(b)           Amendment No. 1 to
the Exchange Agreement, dated as of September 29, 2008, between the
Borrower and Taberna Preferred Funding I, Ltd., shall have become effective and
the Lender shall have received from the Borrower a fully executed copy thereof;
and

 

(c)           The Maturity Date shall
not have occurred.

 

Section 4.03.          Final Exchange Date. 
The obligations of the Lender to make the Final Exchange Loan hereunder
shall not become effective until the date on which each of the following
conditions is satisfied:

 

8

 

(a)           The Lender shall have
received from the Borrower a counterpart of this Agreement signed on behalf of
the Borrower;

 

(b)           All conditions to
closing contained in Article VI of each of the Exchange Agreements shall
have been satisfied or waived (provided that any such waiver by the Borrower
shall have been previously consented to in writing by the Lender); and

 

(c)           The Maturity Date shall
not have occurred.

 

ARTICLE V

 

Miscellaneous

 

Section 5.01.          Notices. 
Except in the case of notices and other communications expressly
permitted to be given by telephone, all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
telecopy, as follows:

 

(a)           if to the Borrower, to
it at:

 

Hanover Capital Mortgage Holdings, Inc.

200 Metroplex Drive, Suite 100

Edison, New Jersey  08817

Attention:  General Counsel

Facsimile:  (732) 548-0286

 

(b)           if to the Lender, to
it at:

 

JWH Holding Company, LLC

4211 W. Boy Scout Boulevard, 10th Floor

Tampa, Florida 33607-5724

Attention:  General Counsel

Facsimile:  (813) 871-4430

 

Any party hereto may change its
address or telecopy number for notices and other communications hereunder by
notice to the other parties hereto.  All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt.

 

Section 5.02.          Waivers; Amendments. 
(a) No failure or delay by the Lender in exercising any right or
power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Lender
hereunder are cumulative and are not exclusive of any rights or remedies that
they would otherwise have.  No waiver of
any provision of this Agreement or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then 

 

9

 

such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given.

 

(b)           Neither
this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by the
Borrower and the Lender.

 

Section 5.03.          Hedging Obligations. 
At the request of the Lender, the Borrower shall enter into, and
thereafter maintain, Hedging Agreements to the extent required by the Lender,
which Hedging Agreements shall have terms and conditions reasonably
satisfactory to the Lender.

 

Section 5.04.          Successors and Assigns.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that the Borrower
may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of the Lender (and any attempted assignment
or transfer by the Borrower without such consent shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby) any legal or
equitable right, remedy or claim under or by reason of this Agreement.  The Borrower hereby consents to the assignment
by the Lender of all its rights and obligations under this Agreement to Walter
Investment Management LLC, and agrees to execute an amendment to the Control
Agreement to reflect such assignment.

 

Section 5.05.          Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall
constitute a single contract.

 

Section 5.06.          Severability. 
Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

 

Section 5.07.          Governing Law. 
This Agreement shall be governed by, and construed and interpreted in
accordance with, the law of the State of New York.

 

Section 5.08.          Headings.  Article and
Section headings used herein are for convenience of reference only, are
not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.

 

Section 5.09.          Expenses.  Any costs or expenses (including reasonable
attorneys’ fees and expenses) incurred in connection with the preparation,
execution and delivery of this Agreement and any other documents required by Article III,
shall be for the account of the Lender. 
Any costs or expenses (including reasonable attorneys’ fees and
expenses) incurred in connection with the enforcement of any rights in
connection with this Agreement, including any actions taken following the occurrence
of the Maturity Date or in connection with Section 3.03 

 

10

 

hereof, shall be for the account of the Borrower, and
shall be payable by the Borrower to the Lender upon demand.

 

11

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amended and Restated Loan and Security Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

	
   

  	
  HANOVER CAPITAL MORTGAGE HOLDINGS,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John A. Burchett

  
	
   

  	
   

  	
  Name: John A. Burchett

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JWH HOLDING COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark J. O’Brien

  
	
   

  	
   

  	
  Name: Mark J. O’Brien

  
	
   

  	
   

  	
  Title: President and CEOQuickLinks
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  Exhibit 10.63    
    

 
  LIMITED LIABILITY COMPANY AGREEMENT
  OF
WALTER INVESTMENT MANAGEMENT LLC    
    

        This LIMITED LIABILITY COMPANY AGREEMENT (this "Agreement") of  Walter Investment
Management LLC (the "Company") is executed as of February 4, 2009, by
Walter Industries, Inc., as the sole member of the Company (the "Initial Member"). 

        The
Initial Member hereby forms a limited liability company pursuant to and in accordance with the Delaware Limited Liability Company Act (6 Del.
C. § 18-101, et seq.), as amended from time to time (the
"Act"), and hereby declares the following to be the Limited Liability Company Agreement of such limited liability company. 

 
 

ARTICLE II    

        2.1    Name.    The name of the limited liability company shall be Walter Investment
Management LLC. 

        2.2    Purpose.    The Company is formed for the object and purpose of, and the nature of the business to be conducted
and promoted by the Company is, engaging in any lawful act or activity for which limited liability companies may be formed under the Act and engaging in any and all activities necessary or incidental
to the foregoing. 

        2.3    Designated Agent for Service of Process.    The Company shall maintain a registered office and a designated and
duly qualified agent for the service of process on the Company in the State of Delaware. 

        2.4    Perpetual Existence.    The Company shall have perpetual existence. 

 
 

ARTICLE III
  
    Capitalization    
    

        3.1    Identification of Initial Member; Capital Contributions.    Simultaneously with the execution hereof, the
Initial Member is hereby admitted as the sole member of the Company, owning all of the limited liability company interests in, and all rights with respect to, the Company. The Initial Member shall not
be required to make any initial capital contribution to the Company. However, the Initial Member may, but shall not be required to, make capital contributions to the Company at any time solely upon
the written consent of the Initial Member. A member of the Company, other than the Initial Member, may, but shall not be required to, make capital contributions to the Company solely upon the written
consent of such member and the Board of Managers. For purposes of clarification, the Company, and any Manager or Officer of the Company on behalf of the Company, may execute, deliver and perform any
contribution or similar agreement with any member of the Company, including, without limitation, the Initial Member, in connection with the making by such member of any capital contribution to the
Company pursuant to and in accordance with this Section 3.1, notwithstanding any other provision of this Agreement or the Act. 

        3.2    Limited Liability Company Interests as Units; Unit Certificates.    

        (a)   Each
limited liability company interest in the Company shall be represented by units ("Units") in such number as, from
time to time, authorized and determined by the Board of Managers (and, for purposes of clarification, the Company may issue an unlimited number of Units as authorized and determined by the Board of
Managers). The Board of Managers hereby authorizes and the Company hereby issues one (1) Unit to the Initial Member, representing 100% of the limited liability company interests in the Company,
and such Unit is hereby deemed duly authorized and issued to the Initial 

1

 

Member,
and the Initial Member is hereby admitted as a member of the Company in respect of such Unit. At any time and from time to time the Board of Managers may authorize and cause the Company to
issue additional Units representing additional limited liability company interests in the Company to the Initial Member or to any other person or entity. 

        (b)   Units
may be, but shall not be required to be, represented by one or more certificates ("Unit Certificates") issued by
the Company, at such times and in such form as determined by the Board of Managers. For purposes of clarification, no member of the Company shall at any time have any right to demand or receive any
Unit Certificates, the determination of whether any such Units Certificates shall be issued being hereby vested entirely in the Board of Managers. Unless and until the Board of Managers shall cause
the Company to issue any Unit Certificates, all Units shall be and remain uncertificated. 

        3.3    Admission of Additional and Substitute Members; Transfers of Units.    

        (a)   Notwithstanding
any other provision of this Agreement or the Act to the contrary, any person or entity that acquires any Units, whether by or pursuant to any transfer,
assignment, contribution, dividend, distribution or issuance of Units pursuant hereto or otherwise (but subject to Section 3.3(c) hereof), shall automatically, and without any further act,
vote, consent or approval of the Board of Managers, any member of the Company or any other person or entity, be admitted as a member of the Company in respect of such Units acquired by such person or
entity, and shall be deemed bound by the terms and provisions of this Agreement, at the time that such person so acquires such Units. In the case of any transfer or assignment of Units (including,
without limitation, by contribution, dividend or distribution) by any person or entity pursuant hereto and in accordance herewith such person shall cease to be a member of the Company in respect of
such Units at the time of such transfer or assignment. 

        (b)   The
Initial Member may at any time in its sole discretion, and without any further act, vote, consent or approval of the Board of Managers, any other member of the
Company or any other person or entity, transfer or assign (including, without limitation, by contribution, dividend or distribution to one or more person or entities) all or any portion of its Units. 

        (c)   Other
than the Initial Member pursuant to Section 3.3(b) above, no member of the Company may transfer or assign all or any portion of its Units without the prior
consent of the Board of Managers. To the fullest extent permitted by law, any transfer of Units in violation of this Section 3.3(c) shall be null and void and of no force or effect whatsoever
and such Units shall not be deemed to have been transferred or assigned for any purposes of this Agreement. 

 
 

ARTICLE IV
  
    Tax/Allocation of Profits and Losses/Distributions    
    

        The
Initial Member intends to elect that the Company be treated as an association taxable as a corporation for United States federal income tax purposes. Subject to the Act, the Company
may make distributions to the members of the Company, pro rata in accordance with their respective Units, from time to time, at such times, in such form and in such amounts as the Board of Managers
may determine to be appropriate in its sole discretion. 

 
 

ARTICLE V
  
    Management    
    

        5.1    General Powers.    The business and affairs of the Company shall be managed by the Board of Managers (the
"Board of Managers"). The Board of Managers shall have the power to do any and all acts necessary or convenient to or for the furtherance of the
purposes described herein, including all 

2

 

powers,
statutory or otherwise, possessed by managers or members under the laws of the State of Delaware. 

        5.2    Management.    The Board of Managers shall have the power and authority to act for and bind the Company. The
Board of Managers shall have the right to manage the business and affairs of the Company and may delegate such management rights, powers, duties and responsibilities to one or more person or persons
designated by it as it may determine. 

        5.3    Authorized Person.    
[                                    ]
was designated as an "authorized person" within the meaning of the Act and was authorized and directed to execute, deliver and file the initial Certificate of Formation of the Company with the
Secretary of State of the State of Delaware. Upon the filing of the initial Certificate of Formation of the Company with the Secretary of State of the State of Delaware, his powers as an "authorized
person" ceased. 

        5.4    Individual Manager Authority.    The members of the Board of Managers (each a
"Manager") shall constitute the Company's managers for all purposes under the Act and other applicable law. Notwithstanding the foregoing, no Manager,
acting in his or her capacity as Manager, shall be entitled to sign for or take any action individually on behalf of the Company without being authorized by the Board of Managers as provided in this
ARTICLE V. 

        5.5    Number and Qualification.    The number of Managers constituting the Board of Managers shall be not less than
one nor more than sixteen, as may be fixed from time to time exclusively pursuant to a resolution adopted by the Board of Managers, and the Board of Managers on the date hereof shall consist of three
Managers. The members of the Company may from time to time change the maximum or minimum number of Managers. 

        5.6    Designation and Term of Managers.    The Managers on the date hereof are Mark J. O'Brien, Victor P. Patrick and
Miles C. Dearden, III. Each Manager shall serve until such Manager's death, incapacity, resignation, removal, or until the appointment of a successor. 

        5.7    Removal of Managers.    Any Manager may be removed at any time with or without cause by the members of the
Company. 

        5.8    Vacancies.    The members of the Company may fill any vacancy occurring in the Board of Managers by designating
a Manager to fill such vacancy. 

        5.9    Chairman of the Board of Managers.    There shall be a Chairman of the Board of Managers (the
"Chairman") elected by the Managers from their number at any meeting of the Board of Managers. The Chairman shall preside at all meetings of the Board
of Managers and perform such other duties as may be directed by the Board of Managers, and shall serve as Chairman at the pleasure of the Board of Managers. Unless otherwise determined by the Board of
Managers, the Chief Executive Officer of the Company shall be the Chairman. 

        5.10    Compensation.    The Board of Managers may provide for the compensation of Managers for their services as such
and for the payment or reimbursement of any or all expenses incurred by them in connection with such services. 

        5.11    Merger of the Company.    Notwithstanding any other provision of this Agreement or the Act to the contrary,
but without limiting the general powers of the Board of Managers as provided herein, the Company may merge with, or consolidate into, another limited liability company or other business entity (as
defined in Section 18-209(a) of the Act), upon the approval solely of the Board of Managers, and without any further act, vote, consent or approval of any member of the Company
(including, without limitation, the Initial Member) or any other person or entity (including, without limitation that certain merger of the Company with and into Hanover Capital Mortgage
Holdings, Inc. (the "Merger")). In connection with any such merger or consolidation of the Company (including, without limitation, the Merger),
the Board of Managers, without any further act, vote, consent or approval of 

3

 

any
member of the Company (including, without limitation, the Initial Member) or any other person or entity, shall approve an agreement of merger or consolidation, containing such terms as the Board
of Managers determines in its sole discretion to be appropriate. In accordance with Section 18-209 of the Act (including Section 18-209(f)), notwithstanding
anything to the contrary contained in this Agreement or the Act, an agreement of merger or consolidation approved by the Board of Managers may (i) effect any amendment to this Agreement, or
(ii) effect the adoption of a new limited liability company agreement for the Company if it is the surviving or resulting limited liability company of the merger or consolidation. Any amendment
to this Agreement or adoption of a new limited liability company agreement made pursuant to the foregoing sentence shall be effective at the effective time or date of the merger or consolidation or as
otherwise set forth therein (whether earlier or later than the effective time or date of the merger or consolidation). For purposes of clarification, and notwithstanding any other provision of this
Agreement or the Act to the contrary, the Board of Managers acting alone may take any action on behalf of the Company and cause to be executed and delivered any document on behalf of the Company
(including, without limitation, an agreement of merger or consolidation) in connection with or to effectuate any merger or consolidation of the Company approved in accordance with this
Section 5.11 or otherwise (including, without limitation, the Merger), without any further act, vote, consent or approval of any member of the Company (including, without limitation, the
Initial Member) or any other person or
entity, and any such action previously taken or document previously executed and delivered is hereby ratified, approved, confirmed and adopted. The provisions of this Section shall not be construed to
limit the accomplishment of a merger or consolidation or of any of the matters referred to herein by any other means otherwise permitted by law. 

 
 

ARTICLE VI
  
    MEETINGS OF THE BOARD OF MANAGERS    
    

        6.1    Meetings of Board of Managers.    The Board of Managers shall hold such meetings as may be called by the
Chairman or requested by any Manager in writing to the Chairman. Such a meeting may be held at a time and a location fixed by the Chairman, but in any event no more than ninety (90) days after
any proper request; provided, however, that such requirement may be waived by the Manager requesting the
meeting. 

        6.2    Notice of Meetings.    The Chairman shall, at least twelve hours before the meeting, give or cause to be given
notice thereof by any usual means of communication. Such notice need not specify the purpose for which the meeting is called. Any duly convened meeting may be adjourned by the Managers to a later time
without further notice. 

        6.3    Waiver of Notice.    Any Manager may waive notice of any meeting before or after the meeting. Except as
provided in the following sentence, the waiver must be in writing, signed by the Manager entitled to the notice and delivered to the Company for inclusion in the minutes or filing with the Company's
records. A Manager's attendance at or participation in a meeting waives any required notice of such meeting unless the Manager at the beginning of the meeting, or promptly upon arrival, objects to the
holding of the meeting or to transacting business at the meeting and does not thereafter vote for or assent to action taken at the meeting. 

        6.4    Quorum.    A majority of the number of Managers fixed by or pursuant to this Agreement shall constitute a
quorum for the transaction of business at any meeting of the Board of Managers, or if no number is so fixed, a majority of Managers in office immediately before the meeting begins shall constitute a
quorum. 

        6.5    Action by the Board of Managers.    The affirmative vote of a majority of the Managers present at a meeting at
which there is a quorum shall be the act of the Board of Managers. As used in this Agreement, the phrase "the approval of the Board of Managers,"
"the consent of the Board of Managers," 

4

 

"as determined by the Board of Managers" and similar phrases means the approval as set forth in the preceding sentence, except as expressly provided
otherwise in this Agreement. 

        6.6    Presumption of Assent.    A Manager who is present at a meeting of the Board of Managers or a committee of the
Board of Managers when board action is taken is deemed to have assented to the action taken unless (i) he objects at the beginning of the meeting, or promptly upon his arrival, to the holding
of the meeting or to transacting business at the meeting, (ii) his dissent or abstention from the action taken is entered in the minutes of the meeting, or (iii) he files written notice
of his dissent or abstention with the presiding chairman of the meeting before its adjournment or with the Company immediately after the adjournment of the meeting. Such right of dissent or abstention
is not available to a Manager who votes in favor of the action taken. 

        6.7    Action Without Meeting.    On any matter that is to be voted on, consented to or approved by the Board of
Managers, the Board of Managers may take such action without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, shall be signed
by the Managers having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all Managers entitled to vote thereon were present and
voted. On any matter that is to be voted on by Managers, the Managers may vote in person or by proxy, and such proxy may be granted in writing, by means of electronic transmission or as otherwise
permitted by applicable law. A consent transmitted by electronic transmission by a Manager or by a person or persons authorized to act for a Manager shall be deemed to be written and signed for
purposes of this Agreement. For purposes of this Agreement, the term "electronic transmission" means any form of communication not directly involving the physical transmission of paper that creates a
record that may be retained, retrieved and reviewed by a recipient thereof and that may be directly reproduced in paper form by such a recipient through an automated process. 

        6.8    Committees of the Board of Managers.    The Board of Managers may create an executive committee, a compensation
committee and other committees of the Board of Managers and appoint Managers to serve on such committees. The creation of a committee of the Board of Managers and the appointment of Managers to it
must be approved by the greater of (i) a majority of the number of Managers in office when the action is taken or (ii) the number of Managers required to take action pursuant to this
Agreement. Each committee of the Board of Managers must have two or more Managers and, to the extent authorized by the Board of Managers, shall have and may exercise all of the authority of the Board
of Managers in the management of the Company. Each committee member shall serve at the pleasure of the Board of Managers. The provisions in this Agreement governing meetings, action without meetings,
notice and waiver of notice, and quorum and voting requirements of the Board of Managers apply to committees of the Board of Managers established under this Section 6.8. 

        6.9    Participation in Meeting by Telephone.    Members of the Board of Managers, or of any committee thereof, may
participate in a meeting of such board or committee by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other,
and such participation shall constitute presence in person at such meeting. 

 
 

ARTICLE VII
  
    OFFICERS    
    

        7.1    Delegation of Authority.    

        (a)   The
Board of Managers may from time to time appoint and delegate to one or more individuals (each an "Officer") any
portion of its authority granted hereunder and under the Act as the Board of Managers deems appropriate. No such delegation shall relieve any Manager of his duties and 

5

 

obligations,
or limit the power and authority of the Board of Managers, set forth herein and under the Act. 

        (b)   Initially,
the Officers of the Company shall consist of a Chief Executive Officer, a Secretary, a Treasurer and such Vice-Presidents, Assistant Secretaries,
Assistant Treasurers, and other Officers as may from time to time be appointed by or under the authority of the Board of Managers. Any two or more offices may be held by the same individual, but no
Officer may act in more than one capacity where action of two or more Officers is required. The initial Officers of the Company are set forth on Schedule A hereto. 

        7.2    Appointment and Term.    Without limiting the provisions of the last sentence of Section 7.1(b), the
Officers of the Company shall be appointed and removed by the Board of Managers, the Chairman, or by a duly appointed Officer authorized by the Board of Managers to appoint one or more Officers or
assistant Officers. Each Officer shall hold office until such Officer's death, incapacity, resignation, removal, or until the appointment of a successor. 

        7.3    Compensation of Officers.    The compensation of all Officers of the Company shall be fixed by or under the
authority of the Board of Managers, and no Officer shall serve the Company in any other capacity and receive compensation therefor unless such additional compensation shall be duly authorized. The
appointment of an Officer does not itself create contractual rights. 

        7.4    Bonds.    The Board of Managers may require any Officer, agent, or employee of the Company to give bond to the
Company, with sufficient sureties, conditioned on the faithful performance of the duties of his respective office or position, and to comply with such other conditions as may from time to time be
required by the Board of Managers. 

        7.5    Chief Executive Officer.    The Chief Executive Officer shall act in a general executive capacity, shall be
responsible for the general administration and operation of the affairs of the Company and shall perform all duties incidental to such person's office that may be required by law and all such other
duties as are properly required of him by the Board of Managers. He or she shall make reports to the Board of Managers and the members of the Company and shall see that all orders and resolutions of
the Board of Managers and of any committee thereof are carried into effect. 

        7.6    Vice Presidents.    Each Executive Vice President and Senior Vice President and any Vice President shall have
such powers and shall perform such duties as shall be assigned to him by the Board of Managers or the Chairman. 

        7.7    Treasurer.    

        (a)   The
Treasurer shall exercise general supervision over the receipt, custody and disbursement of Company funds. The Treasurer shall cause the funds of the Company to be
deposited in such banks as may be authorized by the Board of Managers, or in such banks as may be designated as depositories in the manner provided by resolutions of the Board of Managers. The
Treasurer shall, in general, perform all duties incident to the office of the Treasurer and shall have such further powers and duties and shall be subject to such directions as may be granted or
imposed from time to time by the Board of Managers or the Chairman. 

        (b)   Assistant
Treasurers shall have such of the authority and perform such of the duties of the Treasurer as may be provided in this Agreement or assigned to them by the
Board of Managers, the Chairman or the Treasurer. Assistant Treasurers shall assist the Treasurer in the performance of the duties assigned to the Treasurer, and in assisting the Treasurer, each
Assistant Treasurer shall for such purpose have the powers of the Treasurer. During the Treasurer's absence or inability, the Treasurer's authority and duties shall be possessed by such Assistant
Treasurer or Assistant Treasurers as the Board of Managers or the Chairman may designate. 

6

 

        7.8    Secretary.    

        (a)   The
Secretary shall keep or cause to be kept, in one or more books provided for that purpose, the minutes of all meetings of the Board of Managers and the committees of
the Board of Managers. The Secretary shall see that all notices are duly given in accordance with the provisions of this Agreement and as required by law; shall be custodian of the records of the
Company; shall see that the books, reports, statements, certificates and other documents and records required by law to be kept and filed are properly kept and filed; and in general, shall perform all
the duties incident to the office of Secretary and such other duties as from time to time may be assigned to the Secretary of the Board of Managers or the Chairman. 

        (b)   Assistant
Secretaries shall have such of the authority and perform such of the duties of the Secretary as may be provided in this Agreement or assigned to them by the
Board of Managers, the Chairman or the Secretary. Assistant Secretaries shall assist the Secretary in the performance of the duties assigned to the Secretary, and in assisting the Secretary, each
Assistant Secretary shall for such purpose have the powers of the Secretary. During the Secretary's absence or inability, the Secretary's authority and duties shall be possessed by such Assistant
Secretary or Assistant Secretaries as the Board of Managers or the Chairman may designate. 

        7.9    Removal.    Any Officer elected, or agent appointed, by the Board of Managers may be removed by the Board of
Managers whenever, in their judgment, the best interests of the Company would be served thereby. Any Officer or agent appointed by the Chairman may be removed by him or her whenever, in the judgment
of the Chairman, the best interests of the Company would be served thereby. No elected Officer shall have any contractual rights against the Company for compensation by virtue of such election beyond
the date of the election of such person's successor, such person's death, such person's resignation or such person's removal, whichever event shall first occur, except as otherwise provided in an
employment contract or under any employee deferred compensation plan. 

        7.10    Authority of Officers to Bind the Company.    Other than the Managers, only the Officers, acting within their
authority as provided herein, shall have the authority to bind the Company. 

 
 

ARTICLE VIII
  
    THE MEMBERS    
    

        8.1    Member Voting, Consent and Approval Rights.    Other than as expressly provided in Section 5.5, 5.7 or
5.8 of this Agreement or, solely with respect to the Initial Member, in Article IV of this Agreement, no member of the Company (including, without limitation, the Initial Member) in its
capacity as such shall have any right hereunder, under the Act or otherwise to vote on, consent to or approve any action or other matter to be taken by, of or otherwise affecting the Company
(including, without limitation, with respect to the issuance, transfer or assignment of any Units, the admission of any person or entity as a member of the Company, the sale, lease, transfer,
assignment or other disposition of all or substantially all of the assets of the Company, the merger, consolidation or conversion of or by the Company or, to the fullest extent permitted by applicable
law, the dissolution, liquidation or termination of the Company) or to otherwise act for or bind the Company, all such actions and other matters to be taken solely by and in the determination of or
pursuant to the express authorization of the Board of Managers, notwithstanding any other provision of this Agreement or the Act to the contrary (including, without limitation, any provision of the
Act that would otherwise vest by default any voting, consent or approval right in any member of the Company). 

        8.2    Unanimity Requirement; Action With or Without Meeting.    Any actions expressly permitted to be taken by the
members of the Company pursuant to Section 5.5, 5.7 or 5.8 of this Agreement shall require the unanimous vote or written consent of all of the members of the Company. The members of the Company
may take any such actions with or without a meeting. Any such actions of the members of the Company may be taken without a meeting if a written consent, describing the action so taken, 

7

 

shall
be signed by all of the members of the Company and delivered to the Company for inclusion in the minutes or filing with its records. 

        8.3    Relationship between this Agreement and the Act.    Regardless of whether any provision of this Agreement
specifically refers to particular Default Rules, (i) if any provision of this Agreement conflicts with a Default Rule, the provision of this Agreement controls and the Default Rule is modified
or negated accordingly, and (ii) if it is necessary to construe a Default Rule as modified or negated in order to effectuate any provision of this Agreement, the Default Rule is modified or
negated accordingly. For purposes of this Section 8.3, "Default Rule" shall mean a rule stated in the Act that applies except to the extent it is negated or modified through the provisions of a
limited liability company's certificate of formation or limited liability company agreement. 

 
 

ARTICLE IX
  
    Duties; Liability; Indemnification    
    

        9.1    Duties of Managers.    Except as otherwise expressly provided herein, the Managers shall have the same duties
to the Company that they would have under the law of the State of Delaware if the Company were a corporation and the Managers were its directors. 

        9.2    Liability of Members; Indemnification of Initial Member.    No member of the Company shall have any liability
to the Company or any third party for the obligations or liabilities of the Company except to the extent explicitly required by the Act. The Company shall, to the full extent permitted by applicable
law, indemnify and hold harmless the Initial Member against any and all liabilities incurred by it in connection with any action, suit or proceeding to which it may be made a party or otherwise
involved or with which the Initial Member shall be threatened by reason of its being a member of the Company or while acting as a member of the Company on behalf of the Company or in its interest,
including, without limitation, reasonable costs, expenses and attorneys' fees incurred by the Initial Member in connection with the enforcement of the indemnification rights provided herein. 

        9.3    Indemnification.    The Company shall indemnify to the full extent permitted by applicable law any person who
is or was serving as a Manager or Officer, and may, but shall not be required to, indemnify any other person who is or was serving as employee or agent of the Company or who, at the request of the
Company, is or was serving as a director, manager, officer, employee or agent of another limited liability company, corporation, partnership, joint venture, trust or other enterprise or as a trustee
or administrator under an employee benefit plan, against (a) litigation expenses, including costs, expenses and reasonable attorneys' fees incurred by any such person in connection with any
threatened, pending or completed action, suit or proceedings, whether civil, criminal, administrative or investigative, whether formal or informal, and whether or not brought by or on behalf of the
Company, arising out of such person's status as such or such person's activities in any of the foregoing capacities, (b) liability, including payments made by such person in satisfaction of any
judgment, money, decree, fine (including any excise tax assessed with respect to an employee benefit plan), penalty or settlement for which such person may have become liable in any such action, suit
or proceeding, and (c) reasonable costs, expenses and attorneys' fees incurred by such person in connection with the enforcement of the indemnification rights provided herein. 

        Any
such litigation expenses may, and shall be required for the Initial Member, Managers and Officers to be, paid by the Company in advance of the final disposition of any action, suit
or proceeding upon receipt of an unsecured written promise by or on behalf of any such person to repay such amount unless it shall ultimately be determined that such person is entitled to be
indemnified by the Company against such expenses. 

8

 
 
 

ARTICLE X
  
    Miscellaneous    
    

        10.1    Amendments.    This Agreement, and the rights of the members of the Company, the Managers, the Officers and
any other person or entity hereunder, may be modified or amended at any time by the Board of Managers as determined in its sole discretion. For purposes of clarification, the vote, consent or approval
of the members of the Company shall not be required for any modification or amendment to this Agreement; and no member of the Company (including, without limitation, the Initial Member) or other
person or entity (other than the Board of Managers) shall have any right to vote on, consent to or approve any modification or amendment to the Agreement. 

        10.2    Applicable Law.    This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware. 

        10.3    Effectiveness.    Pursuant to Section 18-201(d) of the Act, this Agreement shall be
effective as of the time of the filing of the initial Certificate of Formation of the Company with the Office of the Delaware Secretary of State
on                                    , 2009.
 

[Signature
page follows] 

9

 

        IN
WITNESS WHEREOF, the Initial Member has executed this Limited Liability Company Agreement of Walter Investment Management LLC as
of the day and year first above written. 

							
	 	 	WALTER INDUSTRIES, INC.
	

 	
 	
By:	
 	
/s/ VICTOR PATRICK

 
	 	 	 	 	Name:	 	Victor Patrick
	 	 	 	 	Title:	 	Vice Chairman

[[New Spinco], LLC Limited Liability Company Agreement] 

10

 
 
 

  Schedule A    
    

 
  Officers    

			
	

  
	
 Name	
 	
Title
	

  
	

 	
 	
Chief Executive Officer
	

  
	

 	
 	
Secretary
	

  
	

 	
 	
Treasurer
	

  
	

 	
 	
 
	

  
	

 	
 	
 
	

  

11

QuickLinks

Exhibit 10.63

LIMITED LIABILITY COMPANY AGREEMENT OF WALTER INVESTMENT MANAGEMENT LLC

ARTICLE II

ARTICLE III Capitalization

ARTICLE IV Tax/Allocation of Profits and Losses/Distributions

ARTICLE V Management

ARTICLE VI MEETINGS OF THE BOARD OF MANAGERS

ARTICLE VII OFFICERS

ARTICLE VIII THE MEMBERS

ARTICLE IX Duties; Liability; Indemnification

ARTICLE X Miscellaneous

Schedule A

Officers

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