Document:

pfsi_EX_10104

		
			FLOW SALE AGREEMENT
		

		
			This Flow Sale Agreement (the “Agreement”) is dated as of June 16,  2015 and entered into by and between PennyMac Corp. (“Transferor”) and PennyMac Loan Services, LLC (“Transferee”).
		

		
			Recitals
		

		
			WHEREAS, Transferor’s parent company, PennyMac Operating Partnership, L.P. (“POP”), and Transferee are parties to that certain Second Amended and Restated Flow Servicing Agreement, dated as of February 1, 2013  (as the same may be amended from time to time, the “Servicing Agreement”), pursuant to which Transferee provides to POP and its wholly-owned subsidiaries, including Transferor,  loan servicing in connection with residential mortgage loans and real estate owned by POP and/or such subsidiaries;
		

		
			WHEREAS, from time to time, certain residential mortgage loans owned by Transferor and underwritten in accordance with the guidelines of Ginnie Mae (“Ginnie Mae Mortgage Loans”),  may be eligible for re-delivery into Ginnie Mae securities as described in the Ginnie Mae Mortgage-Backed Securities Guide, as such Guide may be amended from time to time hereafter;
		

		
			WHEREAS, Transferor is not approved by Ginnie Mae as either an issuer of Ginnie Mae securities or a servicer of Ginnie Mae Mortgage Loans and, as such, must sell or otherwise transfer any Ginnie Mae Mortgage Loans to a third party prior to their re-delivery into Ginnie Mae securities; and
		

		
			WHEREAS, from time to time in connection with Transferor’s liquidation of one or more Ginnie Mae Mortgage Loans as contemplated by the Servicing Agreement, Transferee has agreed to purchase from Transferor such Ginnie Mae Mortgage Loans in order to facilitate their re-delivery to Ginnie Mae on the terms set forth in this Agreement.
		

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

			
	
			
				 1.
			Transfer Dates; Conveyance.  On each transfer date, as reflected in a purchase advice in such form as mutually agreed upon by the parties (each, a “Purchase Advice”),  Transferor hereby conveys to Transferee all right, title and interest, including, without limitation, all collateral and credit files and documents, all accounts and funds, and the related mortgage servicing rights, in and to the Ginnie Mae Mortgage Loan(s) identified in such Purchase Advice.

			
	
			
				 2.
			Purchase Price.  In consideration for each Ginnie Mae Mortgage Loan identified in a Purchase Advice and acquired by Transferee under this Agreement, Transferee shall pay to Transferor an amount equal to the sum of (a) the price of the reference Ginnie Mae “TBA” security into which such Ginnie Mae Mortgage Loan is deliverable, calculated by multiplying the unpaid principal balance of such Ginnie Mae Mortgage Loan by the relevant purchase price percentage of par, (b) accrued and unpaid interest on the Ginnie Mae Mortgage Loan, and (c) the fair market value of the mortgage servicing rights relating to such Ginnie Mae Mortgage Loan, 
		

		 

		

			

		

 

		

			 

		

			as determined by Transferee in good faith consistent with its pricing methodology for the reference Ginnie Mae security, in each case under clauses (a), (b) and (c) above as of the date of transfer (the “Purchase Price”).

			
	
			
				 3.
			Repurchase and Indemnity.  With respect to each Ginnie Mae Mortgage Loan purchased from Transferor by Transferee pursuant to this Agreement, Transferor and Transferee each understand, acknowledge and agree that to the extent any Ginnie Mae Mortgage Loan is not insured or guaranteed, is otherwise ineligible for delivery into any Ginnie Mae security or is at any time required to be repurchased by Transferee for any reason, Transferor shall repurchase such Ginnie Mae Mortgage Loan from the Transferee at the Purchase Price and indemnify and hold harmless the Transferee from any losses it incurs in connection therewith.

			
	
			
				 4.
			Further Assurances.  Transferor and Transferee each agrees to execute and deliver such documents and instruments and take such reasonable actions as the other party may, from time to time, reasonably request to effectuate the purpose and carry out the terms of this Agreement.

			
	
			
				 5.
			Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

			
	
			
				 6.
			Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

		
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		IN WITNESS WHEREOF, Transferor and Transferee have executed this Flow Sale Agreement as of the date first set forth above.
		

		
			 
		

		
			TRANSFEROR:PENNYMAC CORP.
		

		
			 
		

		
			By:  /s/ Anne McCallion
		

		
			 
		

		
			Name:Anne McCallion
		

		
			Title:Chief Financial Officer
		

		
			 
		

		
			 
		

		
			 
		

		
			TRANSFEREE:PENNYMAC LOAN SERVICES, LLC
		

		
			 
		

		
			
		

		
			By:  /s/ Andrew Chang
		

		
			 
		

		
			Name:Andrew Chang
		

		
			Title:Chief Business Development Officerpfsi_EX_1041

		
			AMENDMENT NO. 1 TO THE 
		

		
			AMENDED AND RESTATED FLOW 
		

		
			SERVICING AGREEMENT
		

		
			 
		

		
			This Amendment Number 1 to the Amended and Restated Flow Servicing Agreement, dated as of December 4, 2014 (the “Amendment No. 1”), by and among PennyMac Loan Services, LLC (the “Servicer”) and PNMAC Mortgage Co., LLC (the “Owner”).
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			The Servicer and the Owner are parties to that certain the Amended and Restated Flow Servicing Agreement, dated as of August 1, 2010 (the “Existing Amended and Restated Flow Servicing Agreement”; as amended by this Amendment No. 1, the “Amended and Restated Flow Servicing Agreement”).  
		

		
			 
		

		
			The Servicer and the Owner have agreed, subject to the terms and conditions of this Amendment No. 1, that the Existing Amended and Restated Flow Servicing Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Amended and Restated Flow Servicing Agreement.  
		

		
			 
		

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

		
			 
		

		
			SECTION 1.  Article I – DEFINITIONS
		

		
			 
		

		
			The following definitions shall be added to Section 1.01 of the Existing Amended and Restated Flow Servicing Agreement:
		

		
			 
		

		
			Regulation AB:  Subpart 22.1100-Asset Backed Securities (Regulation AB), 17 C.F.R. §§ 229.1100-22.1123, as amended, and subject to such clarification and interpretation as have been provided by the Commission in the adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,631 (Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time as of an applicable date of determination.
		

		
			 
		

		
			Servicing Criteria – The “servicing criteria” set forth in Item 1122(d) of Regulation AB, as set forth on Exhibit 18 hereto.
		

		
			 
		

		
			SECTION 2.Article IV – GENERAL SERVICING PROCEDURES
		

		
			 
		

		
			Section 4.05 of the Existing Amended and Restated Flow Servicing Agreement shall be deleted in its entirety and replaced with the following:
		

		
			 
		

		
			 
		

		

		

		 

 

		Section 4.05Annual Independent Public Accountants’ Servicing Report or Attestation Report.
		

		
			So long as any Mortgage Loans are being serviced hereunder, or were serviced hereunder during the prior calendar year, the Servicer shall, at its own expense, deliver to the Owner, on or before March 28th of each year beginning March 28, 2015 (but in no event later than the next to the last Business Day of such month), either (A) provide a report of registered public accounting firm stating that (i) such firm has examined certain matters from the management of the Servicer which includes an assertion that the Servicer has complied with certain minimum residential mortgage loan servicing standards, identified in the Uniform Single Attestation Program for Mortgage Bankers established by the Mortgage Bankers Association of America, with respect to the servicing of residential mortgage loans during the most recently completed fiscal year and (ii) on the basis of an examination conducted by such firm in accordance with the standard established by the American Institute of Certified Public Accountants, such assertion is fairly stated in all material respects, subject to any exceptions and qualifications as applicable, or (B)  provide to the Owner (i) an assessment of compliance by the Servicer with the applicable Servicing Criteria during the immediately preceding calendar year (in lieu of the Annual Statement of Compliance in Section 4.04 which shall not be required if Servicer provides the assessment of compliance as set forth in this Section 4.05(B), and (ii) a report by a registered public accounting firm that attests to and reports on the assessment of compliance provided in the clause (b)(i) above, which attestation shall be in accordance with Rule 1-02(a)(3) and Rule 2-02(g) of Regulation S-X under the Securities Act and the Securities Exchange Act.
		

		
			 
		

		
			SECTION 3.EXHIBITS
		

		
			 
		

		
			Exhibit 18 attached hereto shall be added as Exhibit 18 in the Amended and Restated Flow Servicing Agreement.
		

		
			 
		

		
			SECTION 4.MISCELLANEOUS
		

		
			 
		

			
	
			
				 1.
			Except as specifically amended hereby, the Existing Amended and Restated Flow Servicing Agreement shall continue in full force and effect in accordance with the provisions hereof on the date hereof.

		
			 
		

			
	
			
				 2.
			Terms used but not otherwise defined herein shall bear the meanings ascribed to them in the Existing Amended and Restated Flow Servicing Agreement.

		
			 
		

			
	
			
				 3.
			The Existing Amended and Restated Flow Servicing Agreement, as amended by this Amendment No. 1, constitutes the entire agreement and understanding of the parties with respect to its subject matter hereof, and supersedes all oral communications and prior writings with respect thereto.

		
			 
		

			
	
			
				 4.
			This Amendment No. 1 may be executed and delivered in counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument.

		

		

		 

 

		 
		

			
	
			
				 5.
			This Amendment No. 1 shall be governed by and construed in accordance with the laws of New York.

		
			 
		

		
			IN WITNESS WHEREOF the parties have executed this Amendment No. 1 to the Agreement to be duly executed by one of its officers with effect from the Effective Date.
		

		
			 
		

		
			 
		

		
			PNMAC MORTGAGE CO., LLC, a Delaware limited
		

		
			  liability company
		

		
			 (Owner)
		

		
			 
		

		
			 
		

		
			By:  /s/ Anne D. McCallion
		

		
			Name:  Anne D. McCallion
		

		
			Title:  Chief Financial Officer
		

		
			 
		

		
			 
		

		
			PENNYMAC LOAN SERVICES, LLC, a Delaware limited 
		

		
			  limited liability company
		

		
			  (Servicer)
		

		
			 
		

		
			 
		

		
			By:  /s/ Jeffrey P. Grogin
		

		
			Name:  Jeffrey P. Grogin
		

		
			Title:  Chief Administrative and Legal Officer, and Secretary
		

		
			 
		

		

		

		 

 

		
		

		
			EXHIBIT 18
		

		
			SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
		

		
			The assessment of compliance to be delivered under the Agreement shall address, at a minimum, the criteria identified as below as “Applicable Servicing Criteria,” as identified by a mark in the column titled “Applicable Servicing Criteria.”
		

			
					
						Servicing Criteria

					
					
						Applicable
Servicing Criteria

				
	
					
						Reference

					
					
						Criteria

					
					
						 

				
	
					
						 

					
					
						General Servicing Considerations

					
					
						 

				
	
					
						1122(d)(1)(i)

					
					
						Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.

					
					
						X

				
	
					
						1122(d)(1)(ii)

					
					
						If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.

					
					
						X

				
	
					
						1122(d)(1)(iii)

					
					
						Any requirements in the transaction agreements to maintain a back-up servicer for the mortgage loans are maintained.

					
					
						 

				
	
					
						1122(d)(1)(iv)

					
					
						A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.

					
					
						X

				
	
					
						 

					
					
						Cash Collection and Administration

					
					
						 

				
	
					
						1122(d)(2)(i)

					
					
						Payments on mortgage loans are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements.

					
					
						X

				
	
					
						1122(d)(2)(ii)

					
					
						Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.

					
					
						X

				
	
					
						1122(d)(2)(iii)

					
					
						Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.

					
					
						X

				
	
					
						1122(d)(2)(iv)

					
					
						The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.

					
					
						X

				
	
					
						1122(d)(2)(v)

					
					
						Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements.  For purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.

					
					
						X

				
	
					
						1122(d)(2)(vi)

					
					
						Unissued checks are safeguarded so as to prevent unauthorized access.

					
					
						X

				
	
					
						1122(d)(2)(vii)

					
					
						 Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts.  These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items.  These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.

					
					
						X

				
	
					
						 

					
					
						Investor Remittances and Reporting

					
					
						 

				
	
					
						1122(d)(3)(i)

					
					
						Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements.  Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of mortgage loans serviced by the Regulation AB Servicer.

					
					
						X

				

		 

 

			
					
						1122(d)(3)(ii)

					
					
						Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.

					
					
						X

				
	
					
						1122(d)(3)(iii)

					
					
						Disbursements made to an investor are posted within two business days to the Regulation AB Servicer’s investor records, or such other number of days specified in the transaction agreements.

					
					
						X

				
	
					
						1122(d)(3)(iv)

					
					
						Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.

					
					
						X

				
	
					
						 

					
					
						Pool Asset Administration

					
					
						 

				
	
					
						1122(d)(4)(i)

					
					
						Collateral or security on mortgage loans is maintained as required by the transaction agreements or related mortgage loan documents.

					
					
						X

				
	
					
						1122(d)(4)(ii)

					
					
						Mortgage loan and related documents are safeguarded as required by the transaction agreements

					
					
						X

				
	
					
						1122(d)(4)(iii)

					
					
						Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.

					
					
						X

				
	
					
						1122(d)(4)(iv)

					
					
						Payments on mortgage loans, including any payoffs, made in accordance with the related mortgage loan documents are posted to the Regulation AB Servicer’s obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related mortgage loan documents.

					
					
						X

				
	
					
						1122(d)(4)(v)

					
					
						The Regulation AB Servicer’s records regarding the mortgage loans agree with the Regulation AB Servicer’s records with respect to an obligor’s unpaid principal balance.

					
					
						X

				
	
					
						1122(d)(4)(vi)

					
					
						Changes with respect to the terms or status of an obligor’s mortgage loans (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements and related pool asset documents.

					
					
						X

				
	
					
						1122(d)(4)(vii)

					
					
						Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the transaction agreements.

					
					
						X

				
	
					
						1122(d)(4)(viii)

					
					
						Records documenting collection efforts are maintained during the period a mortgage loan is delinquent in accordance with the transaction agreements.  Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent mortgage loans including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).

					
					
						X

				
	
					
						1122(d)(4)(ix)

					
					
						Adjustments to interest rates or rates of return for mortgage loans with variable rates are computed based on the related mortgage loan documents.

					
					
						X

				
	
					
						1122(d)(4)(x)

					
					
						Regarding any funds held in trust for an obligor (such as escrow accounts):  (A) such funds are analyzed, in accordance with the obligor’s mortgage loan documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable mortgage loan documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related mortgage loans, or such other number of days specified in the transaction agreements.

					
					
						X

				
	
					
						1122(d)(4)(xi)

					
					
						Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.

					
					
						X

				
	
					
						1122(d)(4)(xii)

					
					
						Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or omission.

					
					
						X

				
	
					
						1122(d)(4)(xiii)

					
					
						Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.

					
					
						X

				
	
					
						1122(d)(4)(xiv)

					
					
						 Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.

					
					
						X

				

		 

 

			
					
						1122(d)(4)(xv)

					
					
						Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.

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