Document:

Master Agreement

  EXHIBIT 10.11 
 CONFIDENTIAL

 MASTER AGREEMENT MC03861.1 
 This Master Agreement between Fannie Mae and
Crescent Mortgage Services (“Lender”) governs the sale by Lender, and the purchase by Fannie Mae, of eligible residential mortgage loans (the “Mortgages”). This Master Agreement
includes all of the terms and conditions described in all of the exhibits, attachments, conversions, commitments and MBS Pool Purchase Contracts (“MBS Contracts”) attached or entered into as a part of this Master Agreement. Additionally,
the “Master Agreement Terms and Conditions” section of Fannie Mae’s Selling Guide (the “Selling Guide”), which is incorporated into this Agreement by this reference, outlines in more detail the general terms and conditions
of the Master Agreement and MBS Contracts and contains a complete description of the terms “Master Conversions” and “MBS Pricing Confirmations,” as well as other related terms and instructions. The execution of this Master
Agreement requires compliance with all provisions and sections of this Master Agreement, including all Master Conversions, MBS Contracts, cash commitments, exhibits and attachments to this Master Agreement. 
 To sell Mortgages under this Master Agreement, Lender and Fannie Mae must also enter into one or more Master Conversions. In addition, depending on whether Lender will be delivering Mortgages under one of Fannie
Mae’s cash purchase programs (Negotiated or Standard) or under Fannie Mae’s MBS program, Lender and Fannie Mae will also need to enter into the appropriate cash commitments or MBS Pricing Confirmations for MBS Contracts. 
 Lender and Fannie Mae acknowledge that the Estimated Dollar Amount (as set forth on Exhibit 1) is an estimate by the parties, as of the date of execution hereof, of anticipated Mortgage
deliveries and such amount may change over the term of this Master Agreement. Notwithstanding the fact that a Maximum Amount of Pool Purchase Transactions for Delivery is set forth in each MBS Contract, the total amount to be sold shall be governed
by the applicable Master Conversions. The sum of the actual Mandatory Delivery Amounts (whether one or more), as reflected in the Master Conversions, will reflect the actual volume of Mortgage deliveries agreed to by the parties and will supersede
any Estimated Dollar Amount set forth in Exhibit 1. 
 For this Master Agreement to become effective, Lender must execute and return to Fannie Mae a duplicate original within ten
business days of Lender’s receipt of this Master Agreement. Otherwise, Fannie Mae may, at its option, declare this Master Agreement null and void.            
 Lender hereby confirms, by checking the appropriate section below, that: 
          It is not a federally-insured institution or an affiliate or subsidiary of a
federally-insured institution. 

		x	It is a federally-insured institution or an affiliate or subsidiary of a federally-insured institution. If Lender has checked this section, then Lender agrees to the representations and warranties described in the
“Master Agreement Terms and Conditions” section of the Selling Guide. 

 
  

  Sincerely, 
  

	 FANNIE MAE
 	  
 
	 
 By:
 	  /S/  DAVID A. BOWLES
 
	  
 	 
 
	  
 	 David A. Bowles 
 Customer Account Manager
 
	  
 	  
 
	 Agreed, acknowledged, and accepted.
 
	  
 	  
 
	 CRESCENT MORTGAGE SERVICES
 
	  
 	  
 
	 By:
 	   /S/  ROBERT C KENKNIGHT
 
	  
 	 
 
	  
 	  
 
	 Name:
 	  Robert C. KenKnight 
 
	  
 	 
 
	  
 	  
 
	 Title:
 	 President
 
	  
 	 
 
	  
 	  
 
	 Date:
 	  8/4/03
 
	  
 	 
 
			

  
 

  EXHIBIT 1
 TO MASTER AGREEMENT
MC03861.1
  

	 Lender Name
 	  
 	 Crescent Mortgage Services
 	  
 
	  
 	  
 	  
 	  
 
	 Lender Number
 	  
 	 24837-000-9
 	  
 
	  
 	  
 	  
 	  
 
	 Delivery Term:
 	  
 	 First
 	  
 
	  
 	  
 	  
 	  
 
	 Effective Date of Delivery Term:
 	  
 	 August 1, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 Expiration Date of Delivery Term:
 	  
 	 July 31, 2004
 	  
 
	  
 	  
 	  
 	  
 
	 Estimated Dollar Volume for Delivery Term:
 	  
 	 $500,000,000.00
 (eligible for delivery only upon incremental conversions to Mandatory Delivery Amounts under one or more Master Conversions)

	  
 

 
 

  MASTER AGREEMENT
 Master Conversion for
Crescent Mortgage Services
MC03861.1-01
 Upon entering into this Master Conversion, Lender is obligated to sell to Fannie Mae, and Fannie Mae is
obligated to buy from Lender, Mortgages in the aggregate unpaid principal amount of the Mandatory Delivery Amount stated below under any of the following programs: Fannie Mae’s MBS program, Negotiated Cash Transactions or Standard Cash
Transactions. Mortgages must be sold during the period commencing with the Effective Date set forth below and ending with the Expiration Date set forth below (the “Conversion Period”) and must meet all requirements set forth in the Master
Agreement, as well as those set forth in the applicable MBS Contracts (as described below). There must be a valid MBS Pricing Confirmation for each MBS Contract below prior to Lender’s sale of any Mortgages under such MBS Contract.

Lender shall be deemed to have accepted the terms of this Master Conversion and all applicable MBS Pricing Confirmations either (i) upon execution of the Master Agreement or Master
Agreement amendment to which this Master Conversion is attached, or (ii) if this Master Conversion is not attached to a Master Agreement amendment, then upon delivery of any Mortgages under the MBS Contracts during the current Conversion
Period.
  

	 Master Agreement:
 	  
 	 MC03861.1
 	  
 
	  
 	  
 	  
 	  
 
	 Mandatory Delivery Amount:
 	  
 	 $150,000,000.00, plus or minus 5%
 	  
 
	  
 	  
 	  
 	  
 
	 Effective Date:
 	  
 	 August 1, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 Expiration Date:
 	  
 	 October 31, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 MBS Contracts:
 	  
 	 C06584, C06585, C06586, C06587, C06588, C06589, C06590
 	  
 
	  
 	  
 	  
 	  
 
	 Back-end Buyout Fee:
 	  
 	 The greater of $1,000.00 or 12.5 basis points multiplied by the undelivered portion of the Mandatory Delivery Amount.
 	  
 

 
 

  VARIANCES
 This Variances Attachment is attached to and made a part of the
Master Agreement. Under this Master Agreement, Lender may sell Mortgages originated in accordance with the following variances. Unless otherwise specified, the following variances apply only to conventional, first lien Mortgages.

		1.	With respect to any Variances in this “Variances” section that incorporate a table to describe eligibility of Mortgages delivered under that Variance, the following definitions and restrictions apply to all
such Variances.

		•	Mortgage products listed under “Eligible Products/Programs” are the only eligible mortgage products and/or programs. A reference to “All Standard per Selling Guide” means only standard mortgage
products (e.g., FRM, ARM, 7-year balloon), and does not include any specially negotiated products, community or affordable lending products, or products requiring special lender approval.

		•	The loan purpose(s) listed under “Loan Purpose” (Purchase Money Mortgage, Cashout Refinance, Limited Cashout Refinance) is/are the only eligible loan purpose for Mortgages delivered under the
Variance.

		•	The property type(s) and number of units listed under “Dwelling Type” (e.g. Detached, Condo, PUD) and “Units” (e.g. 1, 2, 3, 4) is/are the only eligible property types and number of units for
Mortgages delivered under the Variance.

		•	The occupancy status listed under “Occupancy Status” (e.g. Owner, 2nd Home, or Investor) is/are the only eligible occupancy status for Mortgages delivered under the Variance. “Owner” means
owner-occupied primary residence, “2nd Home” means second home, and “Investor” means an investment property.

		•	The LTV or CLTV listed in the “LTV” or “CLTV” column represent the maximum possible LTV or CLTV for the Mortgages delivered under the Variance. A lower maximum LTV or CLTV may apply depending on the
loan products (e.g. ARM or balloon), if “All Standard per Selling Guide” has been selected under “Eligible Products/Programs.”

		2.	In the event that a Variance table references “Coop” as an eligible “Dwelling Type,” Lender must be approved for delivery of cooperative share loans to Fannie Mae, per the Selling
Guide.

		3.	Any special feature code designated for the Variance is in addition to any other special feature codes that may be required.

		4.	If any column in the Variance table is blank, Lender must refer (a) first to the terms and conditions of that Variance, and (b) then to the Selling Guide or the Guide to Underwriting with Desktop Underwriter®, as
applicable, both as amended from time to time.

 

  VARIANCES
TABLE OF CONTENTS
  

	 VAR 1
 	  
 	 Desktop Underwriter ‘Expanded Approval with Timely Payment RewardsTM’ Initiative
 
	 VAR 2
 	  
 	 Relocation Mortgage Guidelines/Trailing Secondary Wage Earner Income
 

 

	 VAR 1
 	  
 	 Desktop Underwriter ‘Expanded Approval with Timely Payment RewardsTM’
 Initiative                                       
                                        
        May 2003
 

  
 The following terms and conditions apply only to Mortgages originated and delivered to Fannie Mae pursuant to the Desktop Underwriter® “Expanded Approval with Timely Payment RewardsTM” Initiative (hereinafter referred
to as “the Initiative”). Mortgages originated under the Initiative must have been submitted to the Expanded Approval version of Desktop Underwriter for analysis.
 Lender may deliver Mortgages originated under the Initiative in accordance with the following:

		1.	Eligibility.

		(a)	General.

 Each Mortgage must comply with the requirements of the “Expanded Approval
with Timely Payment Rewards Lender Guide” (the “EA Lender Guide”), as may be amended from time to time, as supplemented by the following specific provisions below. A breach of any of such eligibility criteria shall be deemed to be a
breach of warranty by Lender, as provided in the Selling Guide. The EA Lender Guide may be accessed through eFannieMae.com, under “Mortgage Product Information.”

		(b)	Recommendation Levels.

		(i)	Mortgages receiving an “EA-I/Eligible,” “EA-II/Eligible,” or “EA-III/Eligible” recommendation in the Desktop Underwriter Underwriting Findings Report are eligible for delivery in accordance
with the terms hereof.

		(ii)	Any Mortgage receiving a recommendation of  “Refer W Caution/IV” is ineligible for delivery to Fannie Mae.

		(iii)	Generally, Mortgages that receive an “EA/Ineligible” recommendation are not deliverable to Fannie Mae. If any such Mortgage meets the requirements of an applicable Product Variance or a Community Lending
Product Variance as described in Paragraph 4(b) below, or a negotiated underwriting variance in the Master Agreement (“Underwriting Variance”) providing for specific eligibility requirements, as described in Paragraph 4(a) below, then such
Mortgages are only deliverable in accordance with the provisions of Paragraph 4 below.

		(c)	Product Eligibility.

 See the EA Lender Guide for all product eligibility
information.

		(d)	Definitions.

 As used herein, these terms have the following meanings:

		(i)	“EA-I Mortgages” means Mortgages receiving a recommendation of  “EA-I/Eligible” or “EA-I/Ineligible,” only if an Underwriting Variance per Paragraph 4(a) is
applicable.

 

		(ii)	“EA-II Mortgages” means Mortgages receiving a recommendation of  “EA-II/Eligible” or “EA-II/Ineligible,” only if an Underwriting Variance per Paragraph 4(a) is
applicable.

		(iii)	“EA-III Mortgages” means Mortgages receiving a recommendation of  “EA-III/Eligible” or “EA-III/Ineligible,” only if an Underwriting Variance per Paragraph 4(a) is
applicable.

		(e)	ARM Margins.

 Notwithstanding the provisions of the Selling Guide, eligible ARMs may have
mortgage margins in excess of 300 basis points, up to the following maximum amounts;

		(i)	325 basis point for EA-I Mortgages;

		(ii)	350 basis points for EA-II Mortgages; and

		(iii)	387.50 basis points EA-III Mortgages.

		2.	Limited Waiver of Warranties.

 Mortgages receiving the “EA-I/Eligible,” “EA-II/Eligible,”
and “EA-III/Eligible” recommendation in the Desktop Underwriter Underwriting Findings Report are eligible for the “Limited Waiver of Representations and Warranties,” as set forth in the Selling Guide, Part I, Chapter 2, Section
202.02, provided that each such Mortgage:

		(a)	is subject to all applicable requirements, restrictions, stipulations, and limitations specified in this Master Agreement, the applicable Pool Purchase Contract and the Guide to Underwriting with Desktop Underwriter, as
amended from time to time (the “Desktop Underwriter Guide”), as modified by this Agreement, which may include the purchase price or guaranty fee, any price adjustment, or similar charge and the aggregate outstanding principal amount;
and

		(b)	meets all applicable product eligibility requirements.

		3.	Timely Payment Rewards Feature.

 Only fixed rate, fully amortizing, level payment EA-II Mortgages and EA-III
Mortgages may be originated with the Timely Payment Rewards feature, which includes an interest rate reduction provision, subject to the following:

		(a)	Such Mortgages must be delivered to Fannie Mae for cash.

		(b)	The Mortgage must meet all applicable product eligibility requirements.

		(c)	The Mortgage must be originated with the Timely Payment Rewards Addendum to the Note (Fannie Mae Form 1410) (the “Addendum”) and the Timely
Payment Rewards Rider to the Security Instrument (Fannie Mae Form 1412) (the “Rider”).

 

		(d)	The mortgagor must meet the eligibility criteria set forth in the Addendum and the Rider. The Mortgage servicer will be responsible for complying with the provisions of the EA Lender Guide relating to interest rate
reduction, including evaluating the mortgagor’s payment history on the second, third and/or fourth anniversary date of the scheduled due date of the first full installment payment due under the Note (“Anniversary Date”) to determine
if the mortgagor has met the eligibility criteria for the interest rate reduction.

 4.        Mortgages with Product Variances or Underwriting Variances.

		(a)	Mortgages that receive an “EA/Ineligible” recommendation that were originated with Underwriting Variances are only deliverable to Fannie Mae with Fannie Mae’s prior approval. Fannie Mae must approve
combining the Underwriting Variance with the Initiative, even if the Underwriting Variance has been approved under this Master Agreement for non-Initiative mortgages. The specific reason(s) for ineligibility must be permitted under the terms of the
Underwriting Variance. With Fannie Mae’s prior approval, Lender may deliver such Mortgages, provided that such Mortgages:

		(i)	are not eligible for the Limited Waiver of Warranties;

		(ii)	must meet all of the terms of the Initiative specified herein and the terms applicable to the Underwriting Variance;

		(iii)	must be identified with the applicable special feature code for the Initiative in addition to any special feature codes that may be applicable under the terms of the
Underwriting Variance; and

		(iv)	are subject to the applicable loan level price adjustments for the Initiative, in addition to any loan level price adjustments that may be applicable under the terms of the
Underwriting Variance.

		(b)	Certain Mortgages receiving any of the three levels of “EA/Eligible” recommendations or an “EA/Ineligible” recommendation in Desktop Underwriter may also meet the requirements of a product,
initiative or pilot that is available to Lender under the terms of this Master Agreement (a “Product Variance”). If the Product Variance is a Community Lending or affordable housing initiative or pilot (a “Community Lending Product
Variance”), then Lender may disregard the “EA” recommendation and underwrite such Mortgage outside of Desktop Underwriter in accordance with the provisions of the Community Lending Product Variance, provided that such
Mortgages:

		(i)	are not eligible for the Limited Waiver of Warranties;

		(ii)	must meet all of the terms of the Community Lending Product Variance;

		(iii)	must be identified only with the special feature codes applicable to the Community Lending Product Variance (the special feature codes applicable to the Initiative shall not apply to such Mortgages); and

		(iv)	are subject to the pricing and any loan level price adjustments applicable to the Community Lending Product Variance (the loan level price adjustments applicable to the Initiative shall not apply to such Mortgages).

 

  Mortgages receiving any of the three levels of “EA/Eligible” recommendations or an “EA/Ineligible” recommendation in
Desktop Underwriter that meet the requirements of a Product Variance that is available to Lender under the terms of this Master Agreement, but that is not a Community Lending Product Variance, may be
delivered to Fannie Mae only with Fannie Mae’s prior approval.

		(c)	Any variance for the waiver of any of Fannie Mae’s standard loan level price adjustments shall not apply to Mortgages originated under the
Initiative.

 5.        Delivery and Pricing.

		(a)	Loan Level Price Adjustments for MBS Delivery.

		(i)	Each EA-I Mortgage, EA-II Mortgage and EA-III Mortgage delivered for MBS is subject to payment of the applicable base guaranty fee, as set forth in the applicable MBS pool purchase contract, in addition to payment of
the applicable Initiative loan level price adjustment as shown below, plus all other loan level price adjustments that may be applicable to such Mortgage. Additionally, Lender shall identify all EA-I Mortgages, EA-II Mortgages and EA-III Mortgages
at delivery with the applicable Special Feature Code as shown below.

   

	 Risk Level
 	  
 	 Initiative Loan Level Price
 Adjustment
 	  
 	 Special Feature
 Code
 	  
 
	 
 	  
 	 
 	  
 	 
 	  
 
	 EA-I Mortgages
 	  
 	 1.50% (for all Mortgages)
 	  
 	 340
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 EA-II Mortgages (without Timely Payment Rewards only)
 	  
 	 2.75% (for all Mortgages)
 	  
 	 341
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 EA-III Mortgages (without Timely Payment Rewards only)
 	  
 	 4.00% (for all Mortgages)
 	  
 	 342
 	  
 

 

		(ii)	Lender must set up a bank account from which Fannie Mae can draft loan level price adjustments in accordance with the requirements of the Selling Guide, as amended from time to time.

		(iii)	Delivery of Mortgages under the Initiative shall be subject to all applicable loan level price adjustments as required by the Selling Guide and the Expanded Approval Eligibility Matrix, in the Desktop Underwriter Guide,
both as amended from time to time. In addition, Mortgages under the Initiative are subject to the payment of the general Desktop Underwriter usage fees outlined in the Desktop Underwriter Seller/Servicer Software License and Subscription Agreement
between Lender and Fannie Mae.

		(iv)	Please note that any loan level price adjustment associated with the delivery and profile of Mortgages underwritten through Desktop Underwriter are subject to change at any time during the term of this Master Agreement.
These changes will be reflected in the Desktop Underwriter Guide or other written notice from Fannie Mae.

 

		(v)	Mortgages described in Paragraph 5(b)(ii) below are not eligible for delivery for MBS.

		(b)	Cash Execution.

		(i)	All EA-I Mortgages, EA-II Mortgages and EA-III Mortgages are eligible for delivery for cash.

		(ii)	All EA-II Mortgages and EA-III Mortgages that include the Timely Payment Rewards feature are eligible for delivery only for cash.

		(iii)	In addition to the cash pricing described in subparagraph (iv) below, each Mortgage is subject to the payment of all other loan level price adjustments that may be applicable to such Mortgage. Lender shall identify all
Mortgages at delivery with the applicable Special Feature Code as shown below.

   

	 Risk Level
 	  
 	 Special Feature Code
 (for all Mortgages,
 regardless of LTV)
 	  
 
	 
 	  
 	 
 	  
 
	 EA-I Mortgages
 	  
 	 340
 	  
 
	  
 	  
 	  
 	  
 
	 EA-II Mortgages without Timely Payment Rewards
 	  
 	 341
 	  
 
	  
 	  
 	  
 	  
 
	 EA-II Mortgages with Timely Payment Rewards
 	  
 	 459
 	  
 
	  
 	  
 	  
 	  
 
	 EA-III Mortgages without Timely Payment Rewards
 	  
 	 342
 	  
 
	  
 	  
 	  
 	  
 
	 EA-III Mortgages with Timely Payment Rewards
 	  
 	 376
 	  
 

 

		(iv)	To obtain Fannie Mae cash pricing, Lender may go to eFanniemae.com and select “eCommitting” under the Lending and Servicing menu or call the Cash Commitment Window for separate commitments at 1-800-752-1080
and select Option 5. At delivery Lender must advise the Cash Commitment Window:

		(A)	that the subject commitment is for the Initiative, and

		(B)	that the subject risk level is either I, II or III (indicate which one), and

		(C)	if applicable, that the Mortgage includes the Timely Payment Rewards rate reduction feature, and

		(D)	of the applicable Special Feature Code(s) and all applicable loan level price adjustments as required by the Selling Guide and the Expanded Approval Eligibility Matrix, in the Desktop Underwriter Guide, both as amended
from time to time ; and

		(E)	the applicable mortgage insurance level; and

		(F)	of the mortgage term (10-year, 15-year, 20-year, or 30-year), and

 

		(G)	of the mortgage product (fixed-rate mortgage or the applicable ARM plan), and

		(H)	of the LTV of the Mortgage.

		(v)	Delivery of Mortgages under the Initiative shall be subject to all applicable loan level price adjustments as required by the Selling Guide and the Expanded Approval Eligibility Matrix, in the Desktop Underwriter Guide,
both as amended from time to time. In addition, Mortgages under the Initiative are subject to the payment of the general Desktop Underwriter usage fees outlined in the Desktop Underwriter Seller/Servicer Software License and Subscription Agreement
between Lender and Fannie Mae.

		(vi)	Please note that the cash price and/or any other loan level price adjustment associated with the delivery and profile of Mortgages underwritten through Desktop Underwriter are subject to change at any time during the
term of this Master Agreement. These changes will be reflected in the Desktop Underwriter Guide or other written notice from Fannie Mae.

 6.        General.

		(a)	Mortgage Insurance.

		(i)	The terms and conditions on which Fannie Mae has agreed to acquire the Mortgages originated pursuant to the Initiative assume that additional mortgage insurance is obtainable for the Mortgages after delivery of the
Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages have been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is dishonest, criminal, or knowingly wrongful, that would (A)
cause a mortgage insurer to decline to insure a Mortgage, or (B) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest, criminal, or
knowingly wrongful acts in origination or servicing.

		(ii)	A minimum of 35% mortgage insurance coverage is required for (A) all Mortgages with LTVs greater than 95%, and (B) all Mortgages with LTVs of 90.01-95% originated using flexible sources of funds for the
downpayment.

		(iii)	Mortgages originated with mortgage insurance under the “Reduced MI” Coverage Option or the “Lower-Cost MI” Coverage Option (all as described in the Selling Guide) are not eligible for delivery under
the Initiative.

		(b)	Subordinate Financing.

 Mortgages may be subject to subordinate financing in accordance with
the EA Lender Guide. Mortgages subject to subordinate financing are subject to any applicable loan level price adjustments, in addition to any other loan level price adjustments that may apply.
 

		(c)	Loan Level Price Adjustments.

 All loan level price adjustments referenced herein will be
equal to the percentage amount specified multiplied by the issue date principal balance of the Mortgage, in the case of Mortgages delivered for MBS and the delivery date principal balance, for mortgages delivered for cash.

		(d)	Refinances.

 Mortgages delivered to Fannie Mae under the Initiative are not eligible for
subsequent refinancing using any Fannie Mae Enhanced Streamlined Refinance process. In order for such mortgages to be eligible for delivery to Fannie Mae, these cases must be submitted to Desktop Underwriter for credit risk analysis.

		(e)	Servicing.

 Lender acknowledges that Lender is not approved to service Mortgages originated
pursuant to the Initiative and agrees to assign the servicing to an authorized servicer of Expanded Approval with Timely Payment Rewards Mortgages at the time of delivery to Fannie Mae in accordance with the provisions of the “EA Lender
Guide,” as amended from time to time.

		(f)	EA-III Mortgages for MBS Delivery.

 Effective with EA-III Mortgages delivered on or after
May 1, 2003, EA-III Mortgages are eligible for delivery under Fannie Mae’s MBS program. EA-III Mortgages delivered prior to May 1, 2003, are not eligible for MBS delivery (even in pools with May
2003 issue dates).
 

  VAR 2    Relocation Mortgage Guidelines/Trailing Secondary Wage Earner
Income
  

	 Eligible Products /
 Programs
 	  
 	 Loan Purpose
 	  
 	 Dwelling
 Type
 	  
 	 Units
 	  
 	 Occupancy
 Status
 	  
 	 LTV
 	  
 	 CLTV
 	  
 
	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 	  
 
	 FRM:10 yr 
 	  
 	 Purchase Money
 	  
 	 Detached
 	  
 	 1
 	  
 	 Owner
 	  
 	 90
 	  
 	 90
 	  
 
	 FRM:15 yr
 	  
 	 Mortgage
 	  
 	 Condo
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 FRM:20 yr
 	  
 	  
 	  
 	 PUD
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 FRM:30 yr
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 

 
  

	 Parameters
 	  
 	 Options / Limitations
 	  
 
	 
 	  
 	 
 	  
 
	 Minimum Credit Score
 	  
 	 Standard per the Selling Guide and DU Guide to Underwriting
 	  
 
	 Loan Level Price Adjustment
 	  
 	 N/A
 	  
 
	 Foreclosure Loss Risk
 	  
 	 Fannie Mae
 	  
 
	 MI Requirement
 	  
 	 Standard per the Selling Guide and DU Guide to Underwriting
 	  
 
	 Documentation
 	  
 	 Mortgages must be originated using either full documentation for all information related to the borrowers’ employment, income, and source of funds or Fannie Mae’s TimeSaver
alternative documentation program.
 	  
 
	 TPO / Retail Eligible
 	  
 	 Retail & Wholesale Eligible
 	  
 
	 Delivery Limitations
 	  
 	 50 %
 	  
 
	 Interest Rate Buydowns 
 	  
 	 Mortgages subject to temporary buydowns are not permitted.
 	  
 
	 Geographic Limitations
 	  
 	 N/A
 	  
 

 
 Additional Terms
 Under the following conditions, a percentage of the average income for the previous two years of a “trailing secondary wage earner” of a relocated employee (“borrower”) can be used for qualification purposes (the
“borrower” and “trailing secondary wage earner” may collectively be referred to as the “borrowers”.) A “trailing secondary wage earner” is defined as a relative or domestic partner of the primary wage earner.
A “relative” is defined as the primary wage earner’s spouse, child, other dependent, or any other individual who is related by blood, marriage, adoption, or legal guardianship. “Domestic partners” are defined as persons who
share a committed relationship showing financial interdependence and joint responsibility for each other’s common welfare, are not related by blood, reside in the same household, and intend to reside together indefinitely.
  

	 Percent of Income
 	  
 	 Maximum LTV
 	  
 
	 
 	  
 	 
 	  
 
	 75%
 	  
 	 80%
 	  
 
	 50%
 	  
 	 90%
 	  
 

 
 Conditions

		(i)	Maximum allowable underwriting ratios are 28%/36%.

		(ii)	The borrower must be relocating with the same employer or as a new hire with a company that provides relocation benefits, and must be eligible to receive such benefits. (The Lender must retain (a) literature produced by
the employer describing the employer’s relocation program in detail and (b) evidence of the borrower’s eligibility under the program in the individual Mortgage file.)

 

		(iii)	The “trailing secondary wage earner” must have been a salaried or commissioned employee who had been employed in the same occupation for the two years immediately preceding the transfer, and must provide a
written statement that he or she intends to obtain employment in the new location. Income from a “trailing secondary wage earner” who was self-employed may not be considered for qualifying purpose.)

		(iv)	The borrowers must have cash reserves (after the purchase of the new home) equal to at least six months of payments for all housing costs and other obligations (including installment and revolving debt). In determining
these reserves, housing costs include not only the cost of housing in the new area, but also any payments that are being made on any unsold previous residence or investment properties (in instances where such payments are not being paid by the
employer of the borrower).

		(v)	Lender must determine that the new location provides on-going opportunities for the “trailing secondary wage earner” to obtain employment in his or her current occupation and must document the individual
Mortgage file accordingly.

 

  SPECIAL REQUIREMENTS
 This Special Requirements Attachment is attached to and
made a part of the Master Agreement. Under this Master Agreement, Lender may sell Mortgages originated in accordance with the following special requirements. Unless otherwise specified, the following special requirements apply only to conventional,
first lien Mortgages.
 TABLE OF CONTENTS
  

	 Part A.
 	  
 	 Radian Secondary Market Coverage Policy
 	  
 
	 Part B.
 	  
 	 GEMICO Supplemental Primary Secondary Market Policy
 	  
 

 
 

  Part A.           Radian Secondary Market Coverage
Policy
 Lender may deliver conventional Mortgages to Fannie Mae that are covered by a Radian Guaranty Insurance Corporation (“Radian”) Secondary Market Coverage
Policy (“Secondary Market Policy”). Mortgages delivered for coverage under this Policy are referred to as Secondary Market Coverage Mortgages (“SMC Mortgages”) and may be delivered in accordance with the following:

		1.	Eligible Products: Eligible SMC Mortgages must be originated pursuant to standard Fannie Mae guidelines, as may be amended by this Master Agreement, and are described as
follows:

		(a)	Eligible SMC Mortgages are limited to the following:

		(i)	fixed-rate, level-payment, fully amortizing mortgages;

		(ii)	all adjustable rate mortgages originated under Fannie Mae’s standard ARM plans;

		(iii)	7- year balloon mortgages;

		(iv)	Mortgages with LTVs of 95.01-100% that are Fannie Mae products that Lender is approved to deliver under this Master Agreement and are approved for SMC;

		(v)	Flexible Mortgages that receive an “Eligible” recommendation in Desktop Underwriter and are otherwise eligible for SMC; and

		(vi)	Relocation mortgages, credit union mortgages and such other mortgage products that may be specifically approved in writing by Radian and are eligible pursuant to standard Fannie Mae guidelines, as may be amended by this
Master Agreement.

		(b)	The following Mortgages are ineligible for SMC:

		(i)	Mortgages originated under Fannie Mae’s Desktop Underwriter “Expanded Approval with Timely Payment Rewards” Initiative.

		(ii)	Any mortgage that receives an “A Minus” mortgage insurance premium rate from the mortgage insurer.

		2.	Eligible LTV and Primary Mortgage Insurance Coverages: All SMC Mortgages must have obtained a mortgage insurance premium rate from the mortgage insurer’s traditional (“A” paper)
rate card, and meet the following requirements:

		(a)	SMC Mortgages must have mortgage insurance coverage based on the loan-to-value ratio (“LTV”) of such Mortgage equal to the greater of:

		(i)	the minimum level applicable to the Mortgage as required by Fannie Mae, taking into account any higher the mortgage insurance requirements applicable to any specific mortgage products (e.g., Flexible Mortgages, etc.),
which may be higher than for standard mortgage products, or 

 

		(ii)	the minimum applicable SMC eligibility level set forth in Paragraph 2(b) below.

		(b)	Notwithstanding any Fannie Mae minimum mortgage insurance requirements to the contrary, Mortgages must have the following minimum mortgage insurance coverage in order to be
eligible for SMC:

		(i)	12% for 80.01-85% LTVs; 

		(ii)	17% for 85.01-90% LTVs; 

		(iii)	25% for 90.01-95% LTVs; and

		(iv)	30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a) above — refer to the specific product guidelines or terms and conditions for higher required MI coverage that may be
applicable.)

		(v)	Note: Any Mortgage originated with mortgage insurance coverage lower than the minimum coverage listed above in accordance with a Desktop Underwriter recommendation, either with or without a loan level price adjustment,
is ineligible for SMC.

		(c)	Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00% that are originated with mortgage insurance coverages, per the Selling Guide, that are lower than the required coverage levels described in
Paragraphs 2(a) and (b) above are ineligible for delivery as SMC Mortgages.

		3.	Loan Level Price Adjustments: For all SMC Mortgages, Lender must remit any appropriate loan-level price adjustments or, if applicable, under an alternative all-in yield option
(product-specific guaranty fee). Under the all-in yield option, the SMC execution improvement will be deducted from the product-specific guaranty fee.

		4.	Seasoning Requirements: No SMC Mortgage may have been originated more than 12 months prior to delivery to Fannie Mae.

		5.	Additional Requirements:

		(a)	All SMC Mortgages delivered to Fannie Mae must be covered by standard Radian primary mortgage insurance, which premiums must be paid in installments by the borrower (i.e. it may not be a single premium payment or
lender-paid).

		(b)	If Fannie Mae is unable to obtain coverage under a satisfactory Radian Secondary Market Policy, then Fannie Mae may discontinue purchasing SMC Mortgages under this Master Agreement ten days after giving Lender
notice.

		(c)	Lender represents and warrants that no SMC Mortgage it delivers pursuant to this Master Agreement at the time of acquisition by Fannie Mae is: (i) insured at rates other than standard borrower-paid rates; (ii) included
in a captive reinsurance arrangement with Radian, or covered by a GSE pool insurance policy issued by Radian or some other Radian risk-sharing plan; (iii) insured under a Radian “Life of Loan” policy; (iv) insured

  under any “A Minus” premium rate plan, or (v) a UCC financed (i.e., non-real-property) Manufactured Housing Loan.

		(d)	Each SMC Mortgage delivered to Fannie Mae under this Master Agreement must be originated using the applicable Fannie Mae/Freddie Mac Uniform Security Instrument (with effective date on or after 01/01).

		(e)	Lender will be permitted to deliver SMC Mortgages to Fannie Mae under this Master Agreement that are eligible for coverage under the Radian Secondary Market Policy for the period commencing with Lender’s first
delivery of SMC Mortgages and ending on the expiration date of the Master Agreement. Notwithstanding the foregoing, Fannie Mae may cease purchasing such SMC Mortgages under this Master Agreement 60 days after giving Lender written notice of
cessation.

		(f)	Lender represents and warrants that: (i) it has a currently existing standard primary mortgage insurance master policy with Radian and that it shall maintain such policy with Radian as long as it continues to sell or
service SMC Mortgages covered by the Radian Secondary Market Policy, or (ii) concurrent with the sale of SMC Mortgages to Fannie Mae, it will transfer servicing to a servicer that has a standard primary mortgage insurance master policy with Radian
and that has agreed with Fannie Mae to maintain such policy with Radian as long as it services SMC Mortgages covered by the Radian Secondary Market Policy.

		(g)	With respect to each SMC Mortgage, Lender must maintain in effect (subject to Fannie Mae’s policies) the original certificate or electronic record evidencing coverage under its Radian standard primary mortgage
insurance master policy. Lender represents and warrants that any transfers of servicing of SMC Mortgages covered by this provision shall only be to a servicer that has an existing standard primary mortgage insurance master policy with Radian and
Lender shall notify the transferee that transferee will be obligated to Fannie Mae to maintain the original certificate number. Furthermore, Lender must comply with all of the remittance and claim filing requirements related to the Radian standard
primary mortgage insurance master policy.

		6.	Cash Delivery Procedures: SMC Mortgages eligible for coverage under the Radian Secondary Market Policy must be delivered under branch number 24837-002-5 which will identify the Mortgages as
SMC Mortgages. The SMC Mortgages are being delivered to Fannie Mae on a negotiated basis and therefore should not be committed through Desktop Trader®.
Lender should use eCommitting to commit SMC Mortgages for cash delivery, if available. If not, then Lender must call the Cash Commitment Window at 1-800-752-1080 to deliver such SMC Mortgages and press selection #5,
Negotiated Pricing. Please notify the Commitment Analyst that Lender is delivering SMC Mortgages covered by the Radian Secondary Market Coverage Policy.

		7.	SMC Mortgages described in this Part of the Special Requirements section that are delivered for MBS must be delivered under Pool Purchase Contract No(s). C06584, C06586, C06588, C06589, C06590.

		8.	Mortgages Ineligible for Secondary Market Policy Coverage: In the event a mortgage delivered as an SMC Mortgage is determined by Radian to be ineligible for Radian Secondary Market Policy
coverage, then Fannie Mae may require either that Lender immediately (i) repurchase such mortgage, or (ii) remit to Fannie Mae an amount equal to the present value of the difference between the base guaranty fee under the applicable Pool Purchase
Contract referenced above and the base guaranty fee which would have been applicable to the mortgage if delivered without coverage under the Radian Secondary Market Policy, multiplied by the issue date principal balance of the
mortgage.

 

  Part B.            GEMICO Supplemental Primary
Secondary Market Policy.
 Lender may deliver conventional Mortgages to Fannie Mae that are covered by a GE Mortgage Insurance Corporation (“GEMICO”) Supplemental
Primary Secondary Market Policy (“Secondary Market Policy”). Mortgages delivered for coverage under this Policy are referred to as Secondary Market Coverage Mortgages (“SMC Mortgages”) and may be delivered in accordance with the
following:

		1.	Eligible Products: Eligible SMC Mortgages must be originated pursuant to standard Fannie Mae guidelines, as may be amended by this Master Agreement, and are described as
follows:

		(a)	Eligible SMC Mortgages are limited to the following: 

		(i)	fixed-rate level-payment, fully amortizing Mortgages; 

		(ii)	7-year balloon Mortgages;

		(iii)	5/1 ARMs, 7/1 ARMs, and 10/1 ARMs
(Fannie Mae’s standard ARM plans); or

		(iv)	Mortgages with LTVs of 95.01-100% that are Fannie Mae products that Lender is approved to deliver under this Master Agreement and are approved for SMC;

		(v)	Flexible Mortgages that receive an “Eligible” recommendation in Desktop Underwriter and are otherwise eligible for SMC; and

		(vi)	such other mortgage products that may be specifically approved in writing by GEMICO and are eligible pursuant to standard Fannie Mae guidelines, as may be amended by this Master Agreement.

		(b)	The following Mortgages are ineligible for SMC:

		(i)	Mortgages originated under Fannie Mae’s Desktop Underwriter “Expanded Approval with Timely Payment Rewards” Initiative. 

		(ii)	Any mortgage that receives an “A Minus” mortgage insurance premium rate from the mortgage insurer.

		2.	Eligible LTV and Primary Mortgage Insurance Coverages: All SMC Mortgages must have obtained a mortgage insurance premium rate from the mortgage insurer’s traditional (“A” paper)
rate card, and meet the following requirements:

		(a)	SMC Mortgages must have mortgage insurance coverage based on the loan-to-value ratio (“LTV”) of such Mortgage equal to the greater of:

		(i)	the minimum level applicable to the Mortgage as required by Fannie Mae, taking into account any higher mortgage insurance requirements applicable to any specific mortgage products (e.g., Flexible Mortgages, etc.), which
may be higher than for standard mortgage products; or

		(ii)	the minimum applicable SMC eligibility level set forth in Paragraph 2(b) below.

 

		(b)	Notwithstanding any Fannie Mae minimum mortgage insurance requirements to the contrary, Mortgages must have the following minimum mortgage insurance coverage in order to be
eligible for SMC:

		(i)	12% or 80.01-85% LTVs;

		(ii)	17% or 85.01-90% LTVs;

		(iii)	25% for 90.01-95% LTVs; and

		(iv)	30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a) above — refer to the specific product guidelines or terms and conditions for any higher required MI coverage that may be
applicable.)

		(v)	Note: Any Mortgage originated with mortgage insurance coverage lower than the minimum coverage listed above in accordance with a Desktop Underwriter recommendation, either with or without a loan level price adjustment,
is ineligible for SMC.

		(c)	Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00% that are originated with mortgage insurance coverages, per the Selling Guide, that are lower than the required coverage levels described in
Paragraphs 2(a) and (b) above are ineligible for delivery as SMC Mortgages.

		3.	Loan Level Price Adjustments: For all SMC Mortgages, Lender must remit any appropriate loan-level price adjustments or, if applicable, under an alternative all-in yield option
(product-specific guaranty fee). Under the all-in yield option, the SMC execution improvement will be deducted from the product-specific guaranty fee.

		4.	Seasoning Requirements: No SMC Mortgage may have been originated more than 12 months prior to delivery to Fannie Mae nor have been originated prior to September 1,
2001.

		5.	Additional Requirements:

		(a)	All SMC Mortgages delivered to Fannie Mae must be covered by standard GEMICO primary mortgage insurance, which premiums must be paid in installments by the borrower under a single-premium, annual premium, monthly
premium or “zero monthly” payment plan. Premiums may not be lender-paid.

		(b)	If Fannie Mae is unable to obtain coverage under a satisfactory GEMICO Secondary Market Policy, then Fannie Mae may discontinue purchasing SMC Mortgages under this Master Agreement ten days after giving Lender
notice.

		(c)	Lender represents and warrants that no SMC Mortgage it delivers pursuant to this Master Agreement at the time of acquisition by Fannie Mae is: (i) included in a captive reinsurance arrangement between Lender and GEMICO,
or covered by a GSE pool insurance policy issued by GEMICO or some other GEMICO risk-sharing or profit sharing arrangement; (iii) insured under any GEMICO “A Minus” or “Alt A” premium rate plan, (iv) insured under any GEMICO
policy with primary mortgage insurance

 

  premiums pursuant to affinity rates, credit union rates or relocation rates, or (v) insured with GEMICO discounted mortgage insurance
rates.

		(d)	Each SMC Mortgage delivered to Fannie Mae under this Master Agreement must be originated using the applicable Fannie Mae/Freddie Mac Uniform Security Instrument (with effective date on or after 01/01).

		(e)	Lender will be permitted to deliver SMC Mortgages to Fannie Mae under this Master Agreement that are eligible for coverage under the GEMICO Secondary Market Policy for the period commencing with Lender’s first
delivery of SMC Mortgages and ending on the expiration date of the Master Agreement. Notwithstanding the foregoing, Fannie Mae may cease purchasing such SMC Mortgages under this Master Agreement 60 days
after giving Lender written notice of cessation.

		(f)	Lender represents and warrants that: (i) it has a currently existing standard primary mortgage insurance master policy with GEMICO and that it shall maintain such policy with GEMICO as long as it continues to sell or
service SMC Mortgages covered by the GEMICO Secondary Market Policy, or (ii) concurrent with the sale of SMC Mortgages to Fannie Mae, it will transfer servicing to a servicer that has a standard primary mortgage insurance master policy with GEMICO
and that has agreed with Fannie Mae to maintain such policy with GEMICO as long as it services SMC Mortgages covered by the GEMICO Secondary Market Policy.

		(g)	With respect to each SMC Mortgage, Lender must maintain in effect (subject to Fannie Mae’s policies) the original certificate or electronic record evidencing coverage under its GEMICO standard primary mortgage
insurance master policy. Lender represents and warrants that any transfers of servicing of SMC Mortgages covered by this provision shall only be to a servicer that has an existing standard primary mortgage insurance master policy with GEMICO and
Lender shall notify the transferee that transferee will be obligated to Fannie Mae to maintain the original certificate number. Furthermore, Lender must comply with all of the remittance and claim filing requirements related to the GEMICO standard
primary mortgage insurance master policy.

		6.	Cash Delivery Procedures: SMC Mortgages eligible for coverage under the GEMICO Secondary Market Policy must be delivered under branch number 24837-002-5 which will identify the Mortgages as
SMC Mortgages. The SMC Mortgages are being delivered to Fannie Mae on a negotiated basis and therefore should not be committed through Desktop Trader®. Lender should use eCommitting to commit SMC Mortgages for cash delivery, if available. If not, then Lender must call the Cash Commitment Window at 1-800-752-1080 to deliver such SMC Mortgages and press selection #5, Negotiated Pricing. Please
notify the Commitment Analyst that Lender is delivering SMC Mortgages covered by the GEMICO Choice Coverage Secondary Market Policy.

		7.	SMC Mortgages described in this Part of the Special Requirements section that are delivered for MBS must be delivered under Pool Purchase Contract No(s). C06584, C06586, C06588.

 

		8.	Mortgages Ineligible for Secondary Market Policy Coverage: In the event a mortgage delivered as an SMC Mortgage is determined by GEMICO to be ineligible for GEMICO Secondary Market Policy
coverage, then Fannie Mae may require either that Lender immediately (i) repurchase such mortgage, or (ii) remit to Fannie Mae an amount equal to the present value of the difference between the base guaranty fee under the applicable Pool Purchase
Contract referenced above and the base guaranty fee which would have been applicable to the mortgage if delivered without coverage under the GEMICO Secondary Market Policy, multiplied by the issue date principal balance of the
mortgage.

 

  FIXED-RATE PRODUCT ATTACHMENT
 This Fixed-Rate Product Attachment for FHA/VA or
conventional fixed-rate, level-payment residential mortgage loans (“Fixed-Rate Mortgages”) is attached to and made a part of the Master Agreement.
 Variances, Special
Products, and Special Requirements Applicable to Fixed-Rate Mortgages
 Please refer to the attachments under the “Variances” tab, the “Special
Requirements” tab, the “Housing and Community Development” tab, and the “HomeStyle” tab, as applicable, for eligibility for variances, special products, and special requirements.
 MBS Guaranty Fee and Buyup/Buydown Information
 The guaranty fee due to Fannie Mae for any Mortgage sold under any MBS Contract shall be at
the annual rate specified in the applicable MBS Contract, payable monthly, after giving effect to any reduction of the guaranty fee through use of the MBS Express remittance cycle, if applicable. In addition, the guaranty fee will be set before
giving effect to (i) any reduction of the guaranty fee through use of the rapid payment method of remittances, if applicable, and (ii) any increases or decreases of the guaranty fee relating to any buyups or buydowns of such fee, if
applicable.
 Lender must choose the applicable Buyup/Buydown Grid posting, “Early” or “Late,” by contacting its customer account team in its lead regional
office, prior to the “Early” grid posting. If Lender fails to notify its lead regional office of its grid selection before the “Early” grid is posted, Fannie Mae will assume that Lender has selected the “Early” posting
grid. Lender’s grid selection will apply to all MBS pools that it sells under the same MBS Contract. Ratios for products or note rates that are not included in the regular posting may be negotiated through Lender’s lead regional
office.
 

  Contract No. C06584.1
 FIXED-RATE
MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
 MASTER AGREEMENT MC03861.1
  

	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	  
 
	 Lender: Crescent Mortgage Services
 	  
 	 Lender Number: 24837-000-9
 	  
 
	 
 	 
 	 
 	  
 
	  
 	  
 	  
 	  
 
	 Eligible Products:
 	  
 	 20-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	 $2,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 August 1, 2003 - October 1, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 Servicing Option:
 	  
 	 Special
 	  
 
	  
 	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	 Conventional
 	  
 
	  
 	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	 Standard
 	  
 
	  
 	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	 Current
 	  
 
	  
 	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	 Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 	  
 

 
 Additional Terms:
 See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
20 yr Fixed-Rate Mortgages >80% LTV with Radian and GEMICO Secondary Market
Coverage
 

  Contract No. C06584.1
 MBS Pricing
Confirmation for Crescent Mortgage Services 
MC03861.1
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing
specified below, there must be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1
of this MBS Contract or below.
  

	 Eligible Products:
 	  
 	 20-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 N/A *
 	  
 
	  
 	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	 14.00 Basis Points
 	  
 
	  
 	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	 Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 	  
 

 
 *  If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the
current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a
revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty
Fee will again be subject to change upon agreement of the parties.
 

  Contract No. C06585.1
 FIXED-RATE
MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
 MASTER AGREEMENT MC03861.1
  

	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	  
 
	 Lender: Crescent Mortgage Services
 	  
 	 Lender Number: 24837-000-9
 	  
 
	 
 	 
 	 
 	  
 
	  
 	  
 	  
 	  
 
	 Eligible Products:
 	  
 	 20-, 25- and 30-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	 $80,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 August 1, 2003 - October 1, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 Servicing Option:
 	  
 	 Special
 	  
 
	  
 	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	 Conventional
 	  
 
	  
 	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	 Standard
 	  
 
	  
 	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	 Current
 	  
 
	  
 	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	 Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 	  
 

 
 Additional Terms:
 See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
20-, 25-, and 30-year Fixed Rate Mortgages with LTVs <= 80%
 

  Contract No. C06585.1
 MBS Pricing
Confirmation for Crescent Mortgage Services
MC03861.1
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing
specified below, there must be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1
of this MBS Contract or below.
  

	 Eligible Products:
 	  
 	 20-, 25- and 30-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for 
 Pools formed under this Contract:
 	  
 	 N/A*
 	  
 
	  
 	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	 17.00 Basis Points
 	  
 
	  
 	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	 Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 	  
 

 
  *  If no Earliest and Latest Issue Dates are specified in this MBS
Pricing Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration
of the current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a
revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty
Fee will again be subject to change upon agreement of the parties.
 

  Contract No. C06586.1
 FIXED-RATE
MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
 MASTER AGREEMENT MC03861.1
  

	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	  
 
	 Lender: Crescent Mortgage Services
 	  
 	 Lender Number: 24837-000-9
 	  
 
	 
 	 
 	 
 	  
 
	  
 	  
 	  
 	  
 
	 Eligible Products:
 	  
 	 25- and 30-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	 $15,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 August 1, 2003 - October 1, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 Servicing Option:
 	  
 	 Special
 	  
 
	  
 	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	 Conventional
 	  
 
	  
 	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	 Standard
 	  
 
	  
 	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	 Current
 	  
 
	  
 	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	 Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 	  
 

 
 Additional Terms:
 See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
25-, and 30-year Fixed Rate Mortgages with LTVs > 80% with Radian and GEMICO
Secondary
Marketing Coverage
 

  Contract No. C06586.1
 MBS Pricing
Confirmation for Crescent Mortgage Services
MC03861.1
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing
specified below, there must be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1
of this MBS Contract or below.
  

	 Eligible Products:
 	  
 	 25- and 30-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 N/A *
 	  
 
	  
 	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	 12.50 Basis Points
 	  
 
	  
 	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	 Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 	  
 

 
 *  If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation,
the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS
Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again
be subject to change upon agreement of the parties.
 

  Contract No. C06587.1
 FIXED-RATE
MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
 MASTER AGREEMENT MC03861.1
  

	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	 
 
	 Lender:  Crescent Mortgage Services
 	  
 	 Lender Number: 24837-000-9
 	  
 
	 
 	 
 	 
 	 
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 
	 Eligible Products:
 	  
 	 10- and 15-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	 $40,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 August 1, 2003 - October 1, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 Servicing Option:
 	  
 	 Special
 	  
 
	  
 	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	 Conventional
 	  
 
	  
 	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	 Standard
 	  
 
	  
 	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	 Current
 	  
 
	  
 	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	 Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 	  
 

 
 Additional Terms:
 See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
10- and 15-Year Fixed Rate Mortgages with LTVs <= 80%.
 

  Contract No. C06587.1
 MBS Pricing
Confirmation for Crescent Mortgage Services
MC03861.1
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing
specified below, there must be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1
of this MBS Contract or below.
  

	 Eligible Products:
 	  
 	 10- and 15-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 N/A *
 	  
 
	  
 	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	 14.00 Basis Points
 	  
 
	  
 	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	 Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 	  
 

 
 *  If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the
current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a
revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty
Fee will again be subject to change upon agreement of the parties.
 

  Contract No. C06588.1
 FIXED-RATE
MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
 MASTER AGREEMENT MC03861.1
  

	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	 
 
	 Lender:  Crescent Mortgage Services
 	  
 	 Lender Number: 24837-000-9
 	  
 
	 
 	 
 	 
 	 
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 
	 Eligible Products:
 	  
 	 10- and 15-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	 $5,000,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 August 1, 2003 - October 1, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 Servicing Option:
 	  
 	 Special
 	  
 
	  
 	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	 Conventional
 	  
 
	  
 	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	 Standard
 	  
 
	  
 	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	 Current
 	  
 
	  
 	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	 460 - MyCommunityMortgage, 481 - MCM Teacher Suite Product, and Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 	  
 

 
 Additional Terms:
 See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
10- and 15-Year Fixed Rate Mortgages with LTVs > 80% with Radian and GEMICO
Secondary Marketing Coverage
 

  Contract No. C06588.1
 MBS Pricing
Confirmation for Crescent Mortgage Services 
MC03861.1
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing
specified below, there must be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1
of this MBS Contract or below.
  

	 Eligible Products:
 	  
 	 10- and 15-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 N/A *
 	  
 
	  
 	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	 13.00 Basis Points
 	  
 
	  
 	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	 Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 	  
 

 *  If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the
above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current Conversion
Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS Pricing
Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again be
subject to change upon agreement of the parties.
 

  Contract No. C06589.1
 FIXED-RATE
MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
 MASTER AGREEMENT MC03861.1
  

	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	  
 
	 Lender:  Crescent Mortgage Services
 	  
 	 Lender Number: 24837-000-9
 	  
 
	 
 	 
 	 
 	  
 
	  
 	  
 	  
 	  
 
	 Eligible Products:
 	  
 	 15- and 30-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	 $2,500,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 August 1, 2003 - October 1, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 Servicing Option:
 	  
 	 Special
 	  
 
	  
 	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	 Conventional
 	  
 
	  
 	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	 Standard
 	  
 
	  
 	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	 Current
 	  
 
	  
 	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	 Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 	  
 

 
 Additional Terms:
 See
MBS Pricing Confirmation(s) attached hereto and incorporated herein. 
Pool contract price adjustment is waived.
 MyCommunityMortgage: Community 97 with
Radian Secondary Market Coverage
 

  Contract No. C06589.1
 MBS Pricing
Confirmation for Crescent Mortgage Services
MC03861.1
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing
specified below, there must be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1
of this MBS Contract or below.
  

	 Eligible Products:
 	  
 	 15- and 30-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 N/A *
 	  
 
	  
 	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	 20.00 Basis Points
 	  
 
	  
 	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	 Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 	  
 

 
 *  If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation,
the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a revised MBS
Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty Fee will again
be subject to change upon agreement of the parties.
 

  Contract No. C06590.1
 FIXED-RATE
MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
 MASTER AGREEMENT MC03861.1
  

	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	  
 
	 Lender:  Crescent Mortgage Services
 	  
 	 Lender Number: 24837-000-9
 	  
 
	 
 	 
 	 
 	  
 
	  
 	  
 	  
 	  
 
	 Eligible Products:
 	  
 	 15- and 30-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Maximum Amount of Pool Purchase Transactions for Delivery during First Delivery Term:
 	  
 	 $2,500,000.00 (See current Master Conversion for actual volume eligible for delivery during the current Conversion Period.)
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed under this Contract:
 	  
 	 August 1, 2003 - October 1, 2003
 	  
 
	  
 	  
 	  
 	  
 
	 Servicing Option:
 	  
 	 Special
 	  
 
	  
 	  
 	  
 	  
 
	 Mortgage Type:
 	  
 	 Conventional
 	  
 
	  
 	  
 	  
 	  
 
	 Remittance Cycle:
 	  
 	 Standard
 	  
 
	  
 	  
 	  
 	  
 
	 Seasoning Requirements:
 	  
 	 Current
 	  
 
	  
 	  
 	  
 	  
 
	 Special Feature Codes:
 	  
 	 Per Selling Guide, Guide to Underwriting with Desktop Underwriter and applicable attachments.
 	  
 

 
 Additional Terms:
 See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
30 yr Fixed-Rate Mortgages for MyCommunityMortgage: Community 100 Plus and
Community Solutions 100 with Radian Secondary Market Coverage
 

  Contract No. C06590.1 
 MBS Pricing
Confirmation for Crescent Mortgage Services
MC03861.1 
 As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing
specified below, there must be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1
of this MBS Contract or below. 
  

	 Eligible Products:
 	  
 	 15- and 30-year fixed-rate level-payment mortgages
 	  
 
	  
 	  
 	  
 	  
 
	 Earliest and Latest Issue Dates for Pools formed
 under this Contract:
 	  
 	 N/A * 
 	  
 
	  
 	  
 	  
 	  
 
	 Guaranty Fee:
 	  
 	 25.00 Basis Points
 	  
 
	  
 	  
 	  
 	  
 
	 Buyup/Buydown Grid:
 	  
 	 Early (See additional terms in the MBS Guaranty Fee and Buyup/Buydown Information in the Preamble section.)
 	  
 

 
 *  If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject to change either after the Latest Issue Date, if one is specified above, or on the expiration of the
current Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next Conversion Period, a
revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the next Conversion Period, when the Guaranty
Fee will again be subject to change upon agreement of the parties.
 

  March 2003
 Housing and Community
Development
Index
 These Housing and Community Development Terms and Conditions(s) are attached to and made a part of the Master Agreement (the
“Agreement”). The Lender and Fannie Mae agree that, except as provided below, all other requirements of the Fannie Mae Selling and Servicing Guides shall be followed. Any provision specified
below may be amended by Fannie Mae’s issuance to Lender of an “Announcement of Approval.” Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement.
 The appropriate Special Feature Code (“SFC”) as indicated below must be entered on the Schedule of Mortgages (Form 2005) or Loan
Schedule (Form 1068), as applicable.
 Under this Master Agreement, Lender may deliver the following:
 Special Initiatives
 Notwithstanding anything herein to the contrary, the aggregate UPB of all Mortgages originated under these Special
Initiatives and which are delivered to Fannie Mae under this Master Agreement shall not exceed $5,000,000.00.
 MyCommunityMortgageTM; Community 97TM Mortgages (SFC
“460”) as described in the attached terms and conditions.
 MyCommunityMortgageTM; Community 100 PlusTM Mortgages (SFC “480”) as described in the
attached terms and conditions.
 MyCommunityMortgageTM; Community SolutionsTM 100 Mortgages (SFC “481”) as described in the attached terms and
conditions.
 
 

  
March 2003
 Fannie Mae

MyCommunityMortgage; Community Solutions 100TM
 Terms and
Conditions
 The following terms and conditions apply to certain Mortgages (described below), which are eligible for purchase for cash or MBS under Fannie Mae’s
MyCommunityMortgageTM pilot (“MyCommunityMortgage”) for the Community SolutionsTM 100 product. The term “Lender” refers to the Fannie Mae seller/servicer to which these terms and conditions are being issued. Except as
provided herein, all other requirements of the Selling Guide (as updated) must be followed.

		1.	Borrower Eligibility

 Community Solutions 100 offers “Teacher A+,” “Safety 1st” and
“HealthCare Worker+” borrower options, as described below. In the case of co-borrowers, Community Solutions is available if at least one of the co-borrowers qualifies under one of the Teacher A+, Safety 1st or HealthCare Worker+ borrower
options described below.
 To be eligible for Teacher A+, the borrower must be: 

		a)	a full time employee at the elementary or secondary education level in a public or private school (in any capacity, including but not limited to teacher, administrator, librarian, counselor, administrative support and
custodial staff) who is either (i) state certified, (ii) in the process of becoming state certified, or (iii) employed by a school that is recognized by a state or accredited by a state or regional accrediting association; or

		b)	a full time teacher or administrator at the elementary or secondary education levels working at a federal, state, county, or municipal education agency and who is either state certified or in the process of becoming
state certified.

 To be eligible for Safety 1st, the borrower must be: 

		a)	a full-time sworn employee of a police department, sheriff’s office, corrections department, or other law enforcement agency which is a part of or administered by the federal government, a state, a county, a city,
or other political subdivision of a state, a commission created by an interstate compact, a university, a hospital, a utility or an airport or port authority who is responsible for the prevention and detection of crime, the enforcement of the penal,
traffic or highway laws or the incarceration or detention of offenders; or 

		b)	a full-time sworn member of a local, state, or federal fire department or agency and be responsible for at least one of the following: fire suppression, emergency medical response and patient care, fire and injury
prevention, arson investigation, hazardous materials incident response and management, and/or response to acts of terrorism.

		c)	a full-time sworn member of a federal fire department or agency and be responsible for at least one of the following: fire suppression, emergency medical response and patient care, fire and injury prevention, arson
investigation, hazardous materials incident response and management, and/or response to acts of terrorism.

 

  To be eligible for HealthCare Worker+, the borrower must:

		(a)	be a full-time employee of an employer that offers its employees an employer-assisted housing benefit (“EAH”—an employee benefit designed to assist in the employee’s housing needs, and may involve a
grant, a loan, shared appreciation, monthly payment assistance, counseling or otherwise); provided, however, the borrower need not be a participant in the employer’s EAH, and

		(b)	be employed by that employer in one of the following positions: 

		1.	medical resident or fellow; or

		2.	registered nurse (RN), licensed practical nurse (LPN) or licensed vocational nurse (LVN); or 

		3.	nursing assistant who is (i) certified , licensed or accredited by the applicable state agency or has successfully completed training mandated by the applicable state agency, and (ii) designated as a certified nursing
assistant (CNA), advanced unlicensed assistant (AUA) or unlicensed assistive personnel (UAP); or

		4.	physician’s assistant or medical technician, technologist or therapist who is certified, licensed or accredited by the applicable state agency or has successfully completed training mandated by the applicable state
agency; or 

		5.	licensed pharmacist or pharmacy technician who is certified, licensed or accredited by the applicable state agency.

 (For purposes of Community Solutions 100, “state” includes any state of the United States, the District of Columbia, or the Commonwealth of Puerto Rico.)

		2.	Loan-to-Value Ratio

 The maximum loan-to-value ratio (“LTV”) is 100%, which percentage is calculated
from the lower of the sales price or the appraised value of the property. In the case of SMC Eligible Mortgages (as such term is defined in the section below entitled “Mortgage Insurance”), the minimum LTV must exceed 90%.

		3.	Eligible Properties

 Eligible properties are owner-occupied, principal residences that consist of one unit,
including manufactured housing and units in condominiums and planned unit developments (“PUDs”) that conform with any related Fannie Mae requirements. Both existing structures and new construction are eligible, but cooperatives are
ineligible.

		4.	Borrower Income

 The borrower’s income may not exceed 100% of the median income that HUD publishes for the
property’s location, except for (i) higher income limits allowed for certain high-cost areas as specified in the Selling Guide, and (ii) an income limit of 115% of the HUD-published median in nonmetropolitan counties and (iii) borrower incomes
imposed by other organizations (such as when a housing finance agency or an employer provides down payment or closing cost assistance), as specified in the Selling Guide.
 Borrower income limitations are not applicable, however, in neighborhoods that qualify as FannieNeighbors® locations; FannieNeighbors locations are specified in the Selling Guide. (A geocoding service is currently
available on Fannie Mae’s web site, www.efanniemae.com, to assist lenders in determining whether a particular property is in an eligible FannieNeighbors area.)
 

		5.	Eligible Mortgages

 The Mortgage must be a conventional fixed-rate, fully amortizing mortgage with a term of 30
years or less or 7/1 or 10/1 adjustable-rate mortgage (Fannie Mae Plans 750, 751, 1423 or 1437) -”Eligible
ARMs”.

		6.	Underwriting

 Lender may underwrite the Mortgage through Desktop Underwriter (“DU”) using the
Community Lending product screens, by entering the Mortgage as a Fannie 97 mortgage. If the DU finding is “Approve/Eligible,” the waiver of representations and warranties as granted under DU is applicable for the Mortgage, except that the
requirement for individual-loan mortgage insurance as provided herein below is not modified irrespective of any DU message. If the DU finding is “Approve/Ineligible,” the waiver of representations and warranties as granted under DU is
applicable, except that Lender is responsible for determining that the Mortgage meets all the eligibility criteria for Community Solutions 100 as specified in the eligibility matrix in Attachment A hereto. If the DU finding is other than
“Approve/Eligible” or “Approve/Ineligible,” or if there is an “Expanded Approval” finding of any kind, manual (non-DU) underwriting is required. Furthermore, nontraditional credit histories will also require manual
underwriting. There will be no DU fee charged if the original DU submission of the Mortgage is made through the Community Lending product screens.
 For non-DU
manual underwriting or manual underwriting that results from a DU finding other than “Approve/Eligible” or “Approve/Ineligible,” in addition to the limitations or flexibilities specified herein, MyCommunityMortgage allows the
underwriting flexibilities of Fannie Mae’s community lending guidelines, including Fannie Mae’s Community Home Buyer’s ProgramSM model, except that the maximum underwriting ratio shall be 45 percent for the total-expenses-to-income
ratio (“single qualifying” ratio, rather than separate housing-expense-to-income and total-expenses-to-income ratios), except where there is a temporary interest rate buydown (the temporary interest rate buydown must comply with the
guidelines contained in the section below entitled “Buydowns”), and in that situation, the maximum single qualifying ratio shall be 43 percent.

		7.	Part-Time and Overtime Income

 Overtime and part-time income can be used to qualify the borrower if the employer
verifies that the borrower has received such income for the last 12 months and indicates that the overtime and/or part-time income will in all probability continue. Lender must develop an average of overtime and/or part-time income over the last 12
months to determine the amount of income that can be considered in evaluating the borrower’s qualifications.

		8.	Minimum Borrower Contribution from the Borrower’s Own Funds

 The minimum required contribution by the
borrower to the transaction, the source of which must be from the borrower’s own funds and which is calculated as a percentage of the sales price of the property, shall be the lesser of 1.00% or $500.00. These funds may be used for closing
costs, prepaid items, and/or down payment, if desired.

		9.	Sources for Closing Costs/Prepaids

 Funding in addition to the minimum borrower contribution may be obtained
from the “sources of borrower’s funds” as permitted under the Selling Guide, as well as any combination of the following sources:
 

		a)	Gift from a relative (for purposes of these terms and conditions, a relative is defined as the borrower’s spouse, child, dependent, domestic partner, fiancé, fiancée, or any other individual related to
the borrower by blood, marriage, adoption or legal guardianship).

		b)	Unsecured loan or grant from a governmental entity, the borrower’s employer or a nonprofit organization (including churches, but a credit union is not considered to be a nonprofit organization for the purpose of
this paragraph).

		c)	Secured loan that complies with the terms for Community Seconds mortgages. 

		d)	The following sources may only be used for closing costs and/or prepaid items and may not be used as funds for the borrower’s down payment:

		•	Unsecured loan from Lender in accordance with the requirements below:

		•	Lender may finance closing costs with personal (unsecured) loans, provided that the applicable Fannie Mae regional office reviews and approves Lender’s unsecured loan program in the context of Lender’s
Community Reinvestment Act (“CRA”) and Home Mortgage Disclosure Act (“HMDA”) efforts. 

		•	The interest rate to the borrower must not be greater than the note rate of the first Mortgage, but the regional office may approve rates of up to two percentage points above the first Mortgage rate. In all instances,
credit card financing and loans from overdraft protection on checking accounts are not permissible. In addition, Lender may not charge a borrower in this scenario any origination fees, discount points, interest rate, or other fees greater than those
charged to other high loan-to-value ratio customers. 

		•	Monthly payments for the personal loan must be taken into account in both the total obligations-to-income ratio and the housing expense-to-income ratio. The unsecured loan must be a fully amortizing term loan, with a
fixed-rate and fixed-payments. (No variable-rate, variable-payment, or balloon loans are permitted.) 

		•	Lender’s participation under this section must be specifically approved in advance by the applicable regional office. 

		•	A copy of the unsecured loan documents must be placed in the loan file.

		•	“Interested party” contribution, as permitted in accordance with the Selling Guide; provided, however, such interested party contribution may not in any event exceed 3.00% of the lesser of the sales price or
appraised value of the property. If an interested party contribution in any amount is provided, the Mortgage is ineligible for delivery to Fannie Mae for MBS where the LTV is 100%; in such cases, Mortgages would only be eligible for cash delivery.
Where the LTV is 100%, Lender represents and warrants that no Mortgage will be delivered for MBS to Fannie Mae if there is any interested party contribution. If the LTV is less than 100%, and an interested party contribution is utilized, Lender
shall add the LTV to the interested party contribution, as a percentage, to determine MBS delivery eligibility. For example: 

		•	An LTV of 98% plus an interested party contribution of 3% would equal 101%, making the loan ineligible for MBS delivery. 

		•	An LTV of 98% plus an interested party contribution of 2% would equal 100%, making the loan eligible for MBS delivery.

 

		•	“Premium pricing” in accordance with the requirements below:

		•	Lender may use the proceeds (referred to herein as the “Premium Pricing Proceeds”) that result from the sale of the Mortgage at a premium, with an interest rate that is in excess of the then-current market
interest rate for like product. 

		•	The limitations contained in the Selling Guide relating to contributions by interested parties shall not apply to the Premium Pricing Proceeds.

		10.	Reserves

 Where the Mortgage is underwritten through DU, and the DU finding is either
“Approve/Eligible” or “Approve/Ineligible,” Lender must verify the availability of liquid assets as directed by DU. For non-DU manual underwriting or manual underwriting that results from a DU finding other than
“Approve/Eligible” or “Approve/Ineligible,” Lender must verify that the borrower has sufficient liquid assets in reserve at closing equal to at least one mortgage payment, and such reserve may include funds received by the
borrower as a gift (gifts for purposes of such reserve include funds received from a relative or from a church, municipality, employer, or nonprofit organization).

		11.	Buydowns

 A temporary interest rate buydown not to exceed one-half of one percent for the first three years of
the Mortgage is permitted. Borrower will be underwritten at the bought-down interest rate. The buydown must otherwise meet the requirements of the Guides, including the allowance for buydown funds to come from any source or combination of sources
(including Lender, foundations, places of worship, labor unions, employers or their designees, public agencies and nonprofits).

		12.	Eligible Loan Purpose

 All Mortgages must be originated simultaneously under (i) a purchase money transaction or
(ii) a “no cash-out” refinance transaction where the refinance mortgage is equal to the outstanding principal balance of the existing first mortgage (except that the amount may be rounded up to the next $100 increment).

		13.	Subordinate Financing

 Subordinate financing must comply with the terms for Community Seconds mortgages, except
that the requirement contained therein for a down payment from the borrower’s own funds shall be governed by Section 8 above (entitled “Minimum Borrower Contribution”) for the particular option.

		14.	Credit History

 If the Mortgage is underwritten through DU, and the DU finding is either
“Approve/Eligible” or “Approve/Ineligible,” Lender does not need to evaluate the borrower’s credit history as set forth below.
 For non-DU manual underwriting, or manual underwriting that results from a DU finding of other than “Approve/Eligible” or “Approve/Ineligible,” Lender must evaluate the
borrower’s credit history using any one of the four options set forth below:

		(a)	Lender supplements its manual underwriting by obtaining a “representative” credit score on the borrower that is not less than 620.

 

		(b)	Lender does not request a “representative” credit score on the borrower, but instead underwrites the Mortgage using the underwriting guidelines set forth in the
Selling Guide for Community Lending mortgages coupled with the development of:

		(1)	an acceptable traditional credit profile (under Part X, Section 304.01 of the Selling Guide), or 

		(2)	when the borrower does not have the type of credit that is traditionally reported to a credit repository, an acceptable nontraditional credit profile (under Part X,
Section 304.02 of the Selling Guide), or

		(3)	when the borrower has not yet established a credit history or does not have sufficient credit documentation to meet the requirements for nontraditional credit, an acceptable “enhanced credit evaluation” for a
nontraditional limited credit profile (“enhanced credit evaluation” for nontraditional limited credit requires both of the following: (i) 12 months rental history with no delinquencies,
and (ii) no delinquencies in the past 12 months for other trade lines, if any).

 Provided, however, in all of these cases, a borrower who has a prior
bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.

		(c)	Where Lender requests a “representative” credit score on the borrower, but the borrower has no score due to no credit record with the repository, Lender
underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of:

		(1)	an acceptable nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide), or

		(2)	when the borrower has not yet established a credit history or does not have sufficient credit documentation to meet the requirements for nontraditional credit, an acceptable “enhanced credit evaluation” for a
nontraditional limited credit profile (“enhanced credit evaluation” for nontraditional limited credit requires both of the following: (i) 12 months rental history with no delinquencies,
and (ii) no delinquencies in the past 12 months for other trade lines, if any).

 Provided, however, in both of these cases, a borrower who has a
prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.

		(d)	Where Lender obtains a “representative” credit score on the borrower, but the score is less than 620, Lender underwrites the Mortgage using any one of the three options set forth below; provided, however, the borrower will not be eligible where eligibility could only be achieved by combining the following options (for example, “extenuating
circumstances” may not be used to compensate for deficiencies upon application of the criteria for nontraditional credit history):

		(1)	The borrower has an insufficient traditional credit history (as documented by reason codes showing lack of credit accounts, accounts not opened long enough, or lack of usage as the reasons for the low
“representative” credit score), and Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of

		(aa)	an acceptable nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide), or 

		(bb)	when the borrower has not yet established a credit history or does not have sufficient credit documentation to meet the requirements for nontraditional credit, an acceptable “enhanced credit evaluation” for a
nontraditional limited credit profile (“enhanced credit evaluation” for

 

  nontraditional limited credit requires both of the following: (i) 12 months rental history with no delinquencies, and (ii) no delinquencies
in the past 12 months for other trade lines, if any). Provided, however, in both of these cases, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the requirements of Part
X, Section 803.02 of the Selling Guide.

		(2)	Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable traditional credit profile (under Part X, Section 304.01 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must
have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.

		(3)	The borrower’s credit history was heavily influenced by credit deficiencies that were the result of a documented “extenuating circumstance,” and the
borrower’s credit history has been reestablished and meets the conditions specified in the Selling Guide for the reestablishment of an acceptable credit history following an “extenuating
circumstance” (under Part X, Section 803.02 of the Selling Guide).

 In no circumstance may a nontraditional credit evaluation be used to offset
derogatory credit.
 15.       Mortgage Insurance
 Mortgage insurance requirements for SMC Eligible Mortgages:
 MyCommunityMortgage Mortgages delivered hereunder for
which Fannie Mae will obtain “secondary market coverage” (“SMC”) must have an LTV in excess of 90% and must also comply with the “secondary market policy” terms of
the “Special Requirements” section of this Master Agreement (“SMC Eligible Mortgages”); mortgage insurance must be provided by Radian. Lender must comply with the eligibility requirements as determined by the applicable mortgage
insurer, and if a loan does not comply with such eligibility requirements, it may not be delivered as an SMC Eligible Mortgage (such ineligible mortgages are referred to herein as “SMC Ineligible Mortgages”). In addition, SMC Eligible
Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no. C06590, and (ii) if delivered under Cash Delivery, must be delivered under seller/servicer branch no. 23227-003-9 and 24837-002-5. For SMC Eligible
Mortgages, individual loan mortgage insurance providing 35% coverage is required. SMC Eligible MyCommunityMortgage Mortgages may be covered under “A Paper” or “A-Minus” mortgage insurance premium rates as determined by the
eligibility requirements of the applicable mortgage insurer.
 Mortgage insurance requirements for (i) SMC Ineligible Mortgages and (ii) MyCommunityMortgage
Mortgages delivered hereunder for which Fannie Mae will otherwise NOT obtain SMC (collectively, “Non-SMC Mortgages”):
 Individual loan mortgage insurance coverage is required as follows; coverage may be provided by any eligible mortgage insurer (i.e., the mortgage insurer for Non-SMC Mortgages is not limited to the insurer(s) specified
above for SMC Eligible Mortgages):

		•	LTV is 90.01% - 100.00%:       35%

		•	LTV is 85.01% - 90.00%:         30%

		•	LTV is 80.01% - 85.00%:         25%

 

  Non-SMC Mortgages, if delivered under Cash Delivery, must be delivered under seller/servicer no. 24837-000-9.
 Note: SMC Eligible Mortgages and Non-SMC Mortgages may NOT be delivered under the same Pool Purchase Contract (if delivered under MBS Delivery), or under the same seller/servicer
branch no. (if delivered under Cash Delivery).
 The Lender is responsible for determining applicable state requirements relating to mortgage insurance availability
for Mortgages having LTVs over 97%. If the specified mortgage insurance coverage is not available with respect to any mortgage, then such mortgage is ineligible for delivery to Fannie Mae.
 16.       Homebuyer Education
 All
first-time borrowers must complete homebuyer education according to the provisions of the Selling Guide for prepurchase homebuyer education.
 17.       Delinquency Counseling
 For all borrowers, Lender must follow the requirements of the
Selling Guide and the Servicing Guide for postpurchase early delinquency counseling.
 18.       Allocation
 These terms and conditions do not contain a specific limitation on the aggregate principal amount of Mortgages that Lender may deliver or a
date (other than the applicable Expiration Date) by which Lender must deliver the Mortgages. However, in order to be able to efficiently allocate the resources that Fannie Mae has made available for this pilot, Fannie Mae may from time to time and
at any time set a limit on the aggregate principal amount of Mortgages that Lender may deliver or terminate Lender’s ability to deliver Mortgages under this pilot. If, after giving consideration to the aggregate principal amount of Mortgages
that Lender has delivered and to the aggregate principal amount of commitments for such Mortgages that Lender has made, Fannie Mae elects to set a limit or terminate Lender’s participation, Fannie Mae will give Lender at least 90 days prior
written notice of its intent to do so.
 19.       Pricing for Cash Deliveries

Cash pricing is available through the MORNET Bulletin section of MORNET Manager. The MORNET Bulletin for Cash Pricing is contained in the Secondary Marketing section (Fannie
Mae Pricing; Cash Pricing) of MORNET Manager. The selection is “MyCommunityMortgage Products.” The option for pricing using “Secondary Market Coverage” must be selected. Cash Pricing screens are available for 30-year fixed-rate
mortgages and for Eligible ARMs. For fixed-rate mortgages with terms of less than 30 years, Lender must contact Fannie Mae’s Cash Commitment window at 1-800-752-1080, option #5 Negotiated Pricing, and obtain a negotiated Cash Delivery
commitment.
 20.       Special Feature Code
 For all Mortgages originated under these terms and conditions, Lender is required to enter Special Feature Code “481” on the Loan Schedule (Form 1068) or Schedule of Mortgages (Form 2005). For Cash deliveries, the Loan Schedule must be transmitted electronically through the MORNET Cash Delivery System”. For MBS deliveries, the Schedule of Mortgages must be submitted through the MORNET MBS Pool Submission System®.
 

  Attachment A
 MyCommunityMortgage Pilot Community Solutions
97, Community Solutions 100, and Community Solutions 2-Family Products Eligibility Matrix
  

	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 
	 Product
 Option
 	  
 	 Loan Type
 	  
 	 Purpose
 	  
 	 Occupancy
 	  
 	 Other Property
 Owned
 	  
 	 Non-Occupant Co-
 borrower
 	  
 	 Units
 	  
 	 Maximum LTV
 	  
 	 Maximum
 CLTV
 	  
 	 Borrower Income
 	  
 	 Subordinate
 Financing
 	  
 
	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 
	 Community
 Solutions 97
 	  
 	 Fixed-Rate
 Mortgage, 7/1 or
 10/1 ARMS
 	  
 	 PMM or No Cash-Out
 Refinance (Existing
 UPB of first mortgage
 rounded to the nearest
 $100)
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 One Unit
 	  
 	 97% (90% for
 cooperatives)
 	  
 	  
 	  
 	 If borrower income exceeds area
 median income limitations, verify
 property is in a FannieNeighbors
 location
through Fannie Mae’s
 geocoding service through
 efanniemae.com
 	  
 	 Must meet
 Community
 Seconds
 guidelines
 	  
 
	 
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 	  
 	  
 	  
 	  
 
	 Community
 Solutions 100
 	  
 	  
 	  
 	 Owner-Occupied
 	  
 	 None
 	  
 	 Not Allowed
 	  
 	  
 	 100%
 	  
 	 105%
 	  
 	  
 	  
 
	 
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 	 
 	  
 	  
 	  
 	  
 	  
 
	 Community
 Solutions
 2-Family
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 2 Units
 	  
 	 95%
 	  
 	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 

 
 

  March 2003
 Fannie Mae
 MyCommunityMortgageTM; Community 100 Plus
 Terms and
Conditions
 The following terms and conditions apply to certain Mortgages (described below), which are eligible for purchase for cash or MBS under Fannie Mae’s
MyCommunityMortgageTM pilot (“MyCommunityMortgage”) for the Community 100 PlusTM option. The term “Lender” refers to the Fannie Mae seller/servicer to which these terms and conditions are being issued. Except as provided
herein, all other requirements of the Selling Guide (as updated) must be followed.

		1.	Loan-to-Value Ratio

 The maximum loan-to-value ratio (“LTV”) is 100%, which percentage is calculated
from the lower of the sales price or the appraised value of the property. In the case of SMC Eligible Mortgages (as such term is defined in the section below entitled “Mortgage Insurance”), the minimum LTV must exceed 90%.

		2.	Eligible Properties

 Eligible properties are owner-occupied, principal residences that consist of one unit,
including manufactured housing and units in condominiums and planned unit developments (“PUDs”) that conform with any related Fannie Mae requirements. Both existing structures and new construction are eligible, but coops are
ineligible.

		3.	Borrower Income

 The borrower’s income may not exceed 100% of the median income that HUD publishes for the
property’s location, except for (i) higher income limits allowed for certain high-cost areas as specified in the Selling Guide, and (ii) an income limit of 115% of the HUD-published median in nonmetropolitan counties and (iii) borrower incomes
imposed by other organizations (such as when a housing finance agency or an employer provides down payment or closing cost assistance), as specified in the Selling Guide.
 Borrower income limitations are not applicable, however, in neighborhoods that qualify as FannieNeighbors” locations; FannieNeighbors locations are specified in the Selling Guide. (A geocoding service is currently
available on Fannie Mae’s web site, www.efanniemae.com, to assist lenders in determining whether a particular property is in an eligible FannieNeighbors area.)

		4.	Eligible Mortgages

 The Mortgage must be a conventional fixed-rate, fully amortizing mortgage with a term of 30
years or less, or a 7/1 adjustable-rate mortgage (Fannie Mae Plans 750 or 751). In addition, 10/1 adjustable-rate mortgages
(Fannie Mae Plans 1423 and 1437) are permitted, but usage is subject to the limitation noted in the Section below entitled, “Pricing for Cash Deliveries.”

		5.	Underwriting

 Lender may underwrite the Mortgage through Desktop Underwriter (“DU”) using the
Community Lending product screens, by entering the Mortgage as a Fannie 97 mortgage. If the DU finding is “Approve/Eligible,” the waiver of representations and warranties as granted under DU is
 

  applicable for the Mortgage, except that the requirement for mortgage insurance in Section 12 (“Mortgage Insurance”) below is not
modified irrespective of any DU message. If the DU finding is “Approve/Ineligible,” the waiver of representations and warranties as granted under DU is applicable, except that Lender is responsible for determining that the Mortgage meets
all the eligibility criteria for Community 100 Plus as specified in the eligibility matrix in Attachment A attached hereto. If the DU finding is other than “Approve/Eligible” or
“Approve/Ineligible,” or if there is an “Expanded Approval” finding of any kind, manual (non-DU) underwriting is required. Furthermore, nontraditional credit histories will also require manual underwriting. There will be no DU
fee charged if the original DU submission of the Mortgage is made through the Community Lending product screens.
 For non-DU manual underwriting or manual
underwriting that results from a DU finding other than “Approve/Eligible” or “Approve/Ineligible,” in addition to the limitations or flexibilities specified herein, MyCommunityMortgage allows the underwriting flexibilities of
Fannie Mae’s community lending guidelines, including Fannie Mae’s Community Home Buyer’s ProgramSM model, except that the maximum underwriting ratio shall be 41 percent for the total-expenses-to-income ratio (“single
qualifying” ratio, rather than separate housing-expense-to-income and total-expenses-to-income ratios).

		6.	Minimum Borrower Contribution

 The minimum required contribution by the borrower to the transaction, the source
of which must be from the borrower’s own funds and which is calculated as a percentage of the sales price of the property, shall be the lesser of 1.00% or $500.00. These funds may be used for closing costs, prepaid items, and/or down payment,
if desired.

		7.	Sources for Closing Costs/Prepaids

 Funding in addition to the minimum borrower contribution may be obtained
from the “sources of borrower’s funds” as permitted under the Selling Guide, as well as any combination of the following sources:

		1.	Gift from a relative (for purposes of MyCommunityMortgage, a relative is defined as the borrower’s spouse, child, dependent, domestic partner, fiance, fiancee, or any other individual related to the borrower by
blood, marriage, adoption or legal guardianship).

		2.	Unsecured loan or grant from a governmental entity, the borrower’s employer or a nonprofit organization (including churches, but a credit union is not considered to be a nonprofit organization for the purpose of
this paragraph).

		3.	Secured loan that complies with the terms for Community Seconds mortgages.

		4.	The following sources may only be used for closing costs and/or prepaid items and may not be used as funds for the borrower’s down payment:

		•	Unsecured loan from Lender in accordance with the requirements below: 

		•	Lender may finance closing costs with personal (unsecured) loans, provided that the applicable Fannie Mae regional office reviews and approves Lender’s unsecured loan program in the context of Lender’s
Community Reinvestment Act (“CRA”) and Home Mortgage Disclosure Act (“HMDA”) efforts.

		•	The interest rate to the borrower must not be greater than the note rate of the first Mortgage, but the regional office may approve rates of up to two percentage points above the first Mortgage rate. In all instances,
credit card financing and loans from overdraft protection on checking accounts are not permissible. In addition, Lender may not charge a borrower in this scenario any origination fees, discount points, interest rate, or
other

 

  fees greater than those charged to other high loan-to-value ratio customers.

		•	Monthly payments for the personal loan must be taken into account in both the total obligations-to-income ratio and the housing expense-to-income ratio. The unsecured loan must be a fully amortizing term loan, with a
fixed-rate and fixed-payments. (No variable-rate, variable-payment, or balloon loans are permitted.)

		•	Lender’s participation under this section must be specifically approved in advance by the applicable regional office.

		•	A copy of the unsecured loan documents must be placed in the loan file.

		•	“Interested party” contribution, as permitted in accordance with the Selling Guide; provided, however, such interested party contribution may not in any event exceed 3.00% of the lesser of the sales price or
appraised value of the property. If an interested party contribution in any amount is provided, the Mortgage is ineligible for delivery to Fannie Mae for MBS where the LTV is 100%; in such cases, Mortgages would only be eligible for cash delivery.
Where the LTV is 100%, Lender represents and warrants that no Mortgage will be delivered for MBS to Fannie Mae if there is any interested party contribution. If the LTV is less than 100%, and an interested party contribution is utilized, Lender
shall add the LTV to the interested party contribution, as a percentage, to determine MBS delivery eligibility. For example: 

		•	An LTV of 98% plus an interested party contribution of 3% would equal 101%, making the loan ineligible for MBS delivery.

		•	An LTV of 98% plus an interested party contribution of 2% would equal 100%, making the loan eligible for MBS delivery.

		•	“Premium pricing” in accordance with the requirements below:

		•	Lender may use the proceeds (referred to herein as the “Premium Pricing Proceeds”) that result from the sale of the Mortgage at a premium, with an interest rate that is in excess of the then-current market
interest rate for like product.

		•	The limitations contained in the Selling Guide relating to contributions by interested parties shall not apply to the Premium Pricing Proceeds.

		8.	Reserves

 Where the Mortgage is underwritten through DU, and the DU finding is either
“Approve/Eligible” or “Approve/Ineligible,” Lender must verify the availability of liquid assets as directed by DU. For non-DU manual underwriting or manual underwriting that results from a DU finding other than
“Approve/Eligible” or “Approve/Ineligible,” Lender need not verify that the borrower has any minimum level of liquid assets in reserve at closing.

		9.	Eligible Loan Purpose

 All Mortgages must be originated simultaneously under (i) a purchase money transaction or
(ii) a “no cash-out” refinance transaction where the refinance mortgage is equal to the outstanding principal balance of the existing first mortgage (except that the amount may be rounded up to the next $100 increment).
 

		10.	Subordinate Financing

 Subordinate financing must comply with the terms for Community Seconds® mortgages,
except that the requirement contained therein for a down payment from the borrower’s own funds shall be governed by Section 6 above (entitled “Minimum Borrower Contribution”) for the particular option.

		11.	Credit History

 If the Mortgage is underwritten through DU, and the DU finding is either
“Approve/Eligible” or “Approve/Ineligible,” Lender does not need to evaluate the borrower’s credit history as set forth below.
 620: For non-DU manual underwriting, or manual underwriting that results from a DU finding of other than “Approve/Eligible” or
“Approve/Ineligible,” Lender must evaluate the borrower’s credit history using any one of the four options set forth below:

		(a)	Lender supplements its manual underwriting by obtaining a “representative” credit score (per the Selling Guide) on the borrower that is not less than 620.

		(b)	Lender does not request a “representative” credit score on the borrower, but instead underwrites the Mortgage using the underwriting guidelines set forth in the
Selling Guide for Community Lending mortgages coupled with the development of an acceptable traditional credit profile (under Part X, Section 304.01 of the Selling
Guide), or if applicable, an acceptable nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure
in his or her credit history must have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling Guide. 

		(c)	Where Lender requests a “representative” credit score on the borrower, but the borrower has no score due to no credit record with the repository, Lender
underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable nontraditional credit
profile (under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the requirements of Part X, Section
803.02 of the Selling Guide. 

		(d)	Where Lender obtains a “representative” credit score on the borrower, but the score is less than 620, Lender underwrites the Mortgage using any one of the three options set forth below; provided, however, the borrower will not be eligible where eligibility could only be achieved by combining the following options (for example, “extenuating
circumstances” may not be used to compensate for deficiencies upon application of the criteria for nontraditional credit history):

		(1)	The borrower has an insufficient traditional credit history (as documented by reason codes showing lack of credit accounts, accounts not opened long enough, or lack of usage as the reasons for the low
“representative” credit score), and Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit
that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.

 

		(2)	Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable traditional
credit profile (under Part X, Section 304.01 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the
requirements of Part X, Section 803.02 of the Selling Guide. 

		(3)	The borrower’s credit history was heavily influenced by credit deficiencies that were the result of a documented “extenuating circumstance,” and the
borrower’s credit history has been reestablished and meets the conditions specified in the Selling Guide for the reestablishment of an acceptable credit history following an “extenuating
circumstance” (under Part X, Section 803.02 of the Selling Guide). 

 In no circumstance may a nontraditional credit evaluation be used to offset
derogatory credit. 

		12.	Mortgage Insurance

 Mortgage insurance requirements for SMC Eligible Mortgages:
 MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will obtain “secondary market coverage” (“SMC”) must have an LTV in
excess of 90% and must also comply with the “secondary market policy” terms of the “Special Requirements” section of this Master Agreement (“SMC Eligible
Mortgages”); mortgage insurance must be provided by Radian. Lender must comply with the eligibility requirements as determined by the applicable mortgage insurer, and if a loan does not comply with such eligibility requirements, it may not be
delivered as an SMC Eligible Mortgage (such ineligible mortgages are referred to herein as “SMC Ineligible Mortgages”). In addition, SMC Eligible Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase
Contract no. C06589, and (ii) if delivered under Cash Delivery, must be delivered under seller/servicer branch no. 23227-003-9 and 24837-002-5. For SMC Eligible Mortgages, individual loan mortgage insurance providing 35% coverage is required. SMC
Eligible MyCommunityMortgage Mortgages may be covered under “A Paper” or “A-Minus” mortgage insurance premium rates as determined by the eligibility requirements of the applicable mortgage insurer.
 Mortgage insurance requirements for (i) SMC Ineligible Mortgages and (ii) MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will otherwise NOT obtain SMC (collectively, “Non-SMC Mortgages”):
 Individual loan mortgage insurance coverage is required as follows;
coverage may be provided by any eligible mortgage insurer (i.e., the mortgage insurer for Non-SMC Mortgages is not limited to the insurer(s) specified above for SMC Eligible Mortgages):

		•	LTV is 90.01% - 100.00%:     35%

		•	LTV is 85.01% - 90.00%:       30%

		•	LTV is 80.01% - 85.00%:       25%

 Non-SMC Mortgages, if delivered under Cash
Delivery, must be delivered under seller/servicer no. 24837-000-9.
 Note: SMC Eligible Mortgages and Non-SMC Mortgages may NOT be delivered under the same Pool
Purchase Contract (if delivered under MBS Delivery), or under the same seller/servicer branch no. (if delivered under Cash Delivery).
 

  The Lender is responsible for determining applicable state requirements relating to mortgage insurance availability for Mortgages having LTVs
over 97%. If the specified mortgage insurance coverage is not available with respect to any mortgage, then such mortgage is ineligible for delivery to Fannie Mae.

		13.	Homebuyer Education 

 All first-time borrowers must complete homebuyer education according to the provisions of
the Selling Guide for prepurchase homebuyer education. 

		14.	Delinquency Counseling 

 For all borrowers, Lender must follow the requirements of the Selling Guide and the
Servicing Guide for postpurchase early delinquency counseling. 

		15.	Allocation 

 These terms and conditions do not contain a specific limitation on the aggregate principal amount
of Mortgages that Lender may deliver or a date (other than the applicable Expiration Date) by which Lender must deliver the Mortgages. However, in order to be able to efficiently allocate the resources that Fannie Mae has made available for this
pilot, Fannie Mae may from time to time and at any time set a limit on the aggregate principal amount of Mortgages that Lender may deliver or terminate Lender’s ability to deliver Mortgages under this pilot. If, after giving consideration to
the aggregate principal amount of Mortgages that Lender has delivered and to the aggregate principal amount of commitments for such Mortgages that Lender has made, Fannie Mae elects to set a limit or terminate Lender’s participation, Fannie Mae
will give Lender at least 90 days prior written notice of its intent to do so. 

		16.	Pricing for Cash Deliveries 

 Cash pricing is available through the MORNET Bulletin section of MORNET Manager.
The MORNET Bulletin for Cash Pricing is contained in the Secondary Marketing section (Fannie Mae Pricing; Cash Pricing) of MORNET Manager. The selection is “MyCommunityMortgage Products.” The option for pricing using “Secondary Market
Coverage” must be selected. Cash Pricing screens are available for 30-year fixed-rate mortgages and for 7/1 ARMs (Fannie Mae Plans 750 and 751). For fixed-rate mortgages with terms of
less than 30 years, Lender must contact Fannie Mae’s Cash Commitment window at 1-800-752-1080, option #5 Negotiated Pricing, and obtain a negotiated Cash Delivery commitment. For 10/1
ARMs (Fannie Mae Plans 1423 and 1437), screens are not available, and Lender must contact Fannie Mae’s Cash Commitment window to obtain a negotiated commitment.] 

		17.	Special Feature Code 

 For all Mortgages originated under these terms and conditions, Lender is required to
enter Special Feature Code “480” on the Loan Schedule (Form 1068) or Schedule of Mortgages (Form
2005). 
 

  Attachment A
  

	  
 	  
 
	 
 	 
 
	 MyCommunityMortgage Pilot Eligibility Matrix
 	  
 
	 
 	

	 Product
 Option
 	  
 	 Loan Type
 	  
 	 Purpose
 	  
 	 Occupancy
 	  
 	 Other Property
 Owned
 	  
 	 Non-Occupant
 Co-borrower
 	  
 	 Units/Type
 	  
 	 Maximum 
 LTV **
 	  
 	 Maximum
 CLTV
 	  
 	 Borrower Income
 	  
 	 Subordinate
 Financing
 	  
 	 MI Coverage
 	  
 
	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 
	 Community 97
 	  
 	 Fixed-Rate
 Mortgage, 7/1
 or 10/1 ARMS
 (no ARMS
 where EEM
 guidelines used)
 	  
 	 PMM or No Cash-
 Out Refinance
 (Existing UPB of first
 mortgage rounded
 to the nearest
$100)
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 One Unit*
 	  
 	 97%
 	  
 	  
 	  
 	 If borrower income exceeds
 area median income
 limitations, verify property
 is in a
FannieNeighbors
 location through Fannie Mae’s
 geocoding service through
 efanniemae.com
 	  
 	 Must meet
 Community
 Seconds
 guidelines
 	  
 	 35%
 	  
 
	 
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 	  
 	  
 	  
 	  
 
	 Community 100
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 100%
 	  
 	  
 	  
 	  
 	  
 
	 
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 	  
 	  
 	  
 	  
 	  
 
	 Community 
 100 Plus
 	  
 	  
 	  
 	 Owner-
 Occupied
 	  
 	 None
 	  
 	 Not Allowed
 	  
 	  
 	 95%
 	  
 	 105%
 	  
 	  
 	  
 	  
 
	 
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 	 
 	  
 	  
 	  
 	  
 	  
 	  
 
	 Community 
 2-Family
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 2 Units
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 

 
 *  Includes condos, PUDs, manufactured housing. Provided, however, where EEM guidelines
used, no manufactured housing allowed.
 **  Minimum LTV must exceed 90%.
 

  March 2003 
 Fannie Mae
 MyCommunityMortgageTM; Community 97 
 Terms and
Conditions
 The following terms and conditions apply to certain Mortgages (described below), which are eligible for purchase for cash or MBS under Fannie Mae’s
MyCommunityMortgageTM pilot (“MyCommunityMortgage”) for the Community 97TM option. The term “Lender” refers to the Fannie Mae seller/servicer
to which these terms and conditions are being issued. Except as provided herein, all other requirements of the Selling Guide (as updated) must be followed. 

		1.	Loan-to-Value Ratio 

 The maximum loan-to-value ratio (“LTV”) is 97%, which
percentage is calculated from the lower of the sales price or the appraised value of the property. In the case of SMC Eligible Mortgages (as such term is defined in the section below entitled “Mortgage Insurance”), the minimum LTV must
exceed 90%. 

		2.	Eligible Properties 

 Eligible properties are owner-occupied, principal residences that consist of one unit,
including manufactured housing and units in condominiums and planned unit developments (“PUDs”) that conform with any related Fannie Mae requirements. Both existing structures and new construction are eligible. 

		3.	Borrower Income 

 The borrower’s income may not exceed 100% of the median income that HUD publishes for the
property’s location, except for (i) higher income limits allowed for certain high-cost areas as specified in the Selling Guide, and (ii) an income limit of 115% of the HUD-published median in nonmetropolitan counties and (iii) borrower incomes
imposed by other organizations (such as when a housing finance agency or an employer provides down payment or closing cost assistance), as specified in the Selling Guide. 
 Borrower income limitations are not applicable, however, in neighborhoods that qualify as FannieNeighbors” locations; FannieNeighbors locations are specified in the Selling Guide. (A geocoding service is currently
available on Fannie Mae’s web site, www.efanniemae.com, to assist lenders in determining whether a particular property is in an eligible FannieNeighbors area.) 

		4.	Eligible Mortgages 

 The Mortgage must be a conventional fixed-rate, fully amortizing mortgage with a term of 30
years or less, or a 7/1 adjustable-rate mortgage (Fannie Mae Plans 750 or 751). In addition, 10/1 adjustable-rate mortgages
(Fannie Mae Plans 1423 and 1437) are permitted, but usage is subject to the limitation noted in the Section below entitled,”Pricing for Cash Deliveries.” 

		5.	Underwriting 

 Lender may underwrite the Mortgage through Desktop Underwriter (“DU”) using the
Community Lending product screens, by entering the Mortgage as a Fannie 97 Mortgage. If the DU finding is “ Approve/Eligible,” the waiver of representations and warranties as granted under DU is 
 

  applicable for the Mortgage, except that the requirement for mortgage insurance in Section 12 below (“Mortgage Insurance”) is not
modified irrespective of any DU message. If the DU finding is “Approve/Ineligible,” the waiver of representations and warranties as granted under DU is applicable, except that Lender is responsible for determining that the Mortgage meets
all the eligibility criteria for Community 97 as specified in the eligibility matrix in Attachment A attached hereto. If the DU finding is other than “Approve/Eligible” or
“Approve/Ineligible,” or if there is an “Expanded Approval” finding of any kind, manual (non-DU) underwriting is required. Furthermore, nontraditional credit histories will also require manual underwriting. There will be no DU
fee charged if the original DU submission of the Mortgage is made through the Community Lending product screens. 
 For non-DU manual underwriting or manual
underwriting that results from a DU finding other than “Approve/Eligible” or “Approve/Ineligible,” in addition to the limitations or flexibilities specified herein, MyCommunityMortgage allows the underwriting flexibilities of
Fannie Mae’s community lending guidelines, including Fannie Mae’s Community Home Buyer’s ProgramSM model, except that the maximum underwriting ratio shall be 41 percent for the total-expenses-to-income ratio (“single
qualifying” ratio, rather than separate housing-expense-to-income and total-expenses-to-income ratios). 

		6.	Minimum Down Payment 

 The minimum down payment, the source of which must be from the borrower’s own funds
and which is calculated as a percentage of the sales price of the property, shall be the lesser of 1.00% or $500.00, except for cooperatives for which the minimum down payment is 3.00%. 

		7.	Flexible Sources for Borrower Contribution and/or Closing Costs/Prepaids 

 Funds for the borrower’s down
payment (except for funds required to be made from the borrower’s own funds) and/or funds for closing costs and/or prepaid items may be obtained from the “sources of borrower’s funds” as permitted under the Selling Guide, as well
as any combination of the following sources (and any amount of the borrower’s contribution in excess of the amount needed to pay closing costs and/or prepaid items must be applied towards down payment):

		1.	Gift from a relative (for purposes of MyCommunityMortgage, a relative is defined as the borrower’s spouse, child, dependent, domestic partner, fiance, fiancee, or any other individual related to the borrower by
blood, marriage, adoption or legal guardianship). 

		2.	Unsecured loan or grant from a governmental entity, the borrower’s employer or a nonprofit organization (including churches, but a credit union is not considered to be a nonprofit organization for the purpose of
this paragraph). 

		3.	Secured loan that complies with the terms for Community Seconds mortgages. 

		4.	The following sources may only be used for closing costs and/or prepaid items and may not be used as funds for the borrower’s down payment: 

		•	Unsecured loan from Lender in accordance with the requirements below: 

		•	Lender may finance closing costs with personal (unsecured) loans, provided that the applicable Fannie Mae regional office reviews and approves Lender’s unsecured loan program in the context of Lender’s
Community Reinvestment Act (“CRA”) and Home Mortgage Disclosure Act (“HMDA”) efforts. 

		•	The interest rate to the borrower must not be greater than the note rate of the first Mortgage, but the regional office may approve rates of up to two percentage points above the first Mortgage rate. In all instances,
credit card financing and loans from overdraft protection on checking accounts

 

  are not permissible. In addition, Lender may not charge a borrower in this scenario any origination fees, discount points, interest rate, or
other fees greater than those charged to other high loan-to-value ratio customers.

		•	Monthly payments for the personal loan must be taken into account in both the total obligations-to-income ratio and the housing expense-to-income ratio. The unsecured loan must be a fully amortizing term loan, with a
fixed-rate and fixed-payments. (No variable-rate, variable-payment, or balloon loans are permitted.)

		•	Lender’s participation under this section must be specifically approved in advance by the applicable regional office.

		•	A copy of the unsecured loan documents must be placed in the loan file.

		•	“Interested party” contribution, as permitted in accordance with the Selling Guide; provided, however, such interested party contribution may not in any event exceed 3.00% of the lesser of the sales price or
appraised value of the property.

		•	“Premium pricing” in accordance with the requirements below:

		•	Lender may use the proceeds (referred to herein as the “Premium Pricing Proceeds”) that result from the sale of the Mortgage at a premium, with an interest rate that is in excess of the then-current market
interest rate for like product.

		•	The limitations contained in the Selling Guide relating to contributions by interested parties shall not apply to the Premium Pricing Proceeds. 

		8.	Reserves 

 Where the Mortgage is underwritten through DU, and the DU finding is either
“Approve/Eligible” or “Approve/Ineligible,” Lender must verify the availability of liquid assets only as directed by DU. For non-DU manual underwriting or manual underwriting that results from a DU finding other than
“Approve/Eligible” or “Approve/Ineligible,” Lender need not verify that the borrower has any minimum level of liquid assets in reserve at closing.

		9.	Eligible Loan Purpose

 All Mortgages must be originated simultaneously under (i) a purchase money transaction or
(ii) a “no cash-out” refinance transaction where the refinance mortgage is equal to the outstanding principal balance of the existing first mortgage (except that the amount may be rounded up to the next $100 increment).] 

		10.	Subordinate Financing

 Subordinate financing must comply with the terms for Community Seconds® mortgages,
except that the requirement contained therein for a down payment from the borrower’s own funds shall be governed by Section 6 above (“Minimum Down Payment”) for the particular option. 

		11.	Credit History

 If the Mortgage is underwritten through DU, and the DU finding is either
“Approve/Eligible” or “Approve/Ineligible,” Lender does not need to evaluate the borrower’s credit history as set forth below. 
 600: For non-DU manual underwriting, or manual underwriting that results from a DU finding of other than “Approve/Eligible” or
“Approve/Ineligible,” Lender must evaluate the borrower’s credit history using any one of the four options set forth below:
 

		(a)	Lender supplements its manual underwriting by obtaining a “representative” credit score (per the Selling Guide) on the borrower that is not less than 600.

		(b)	Lender does not request a “representative” credit score on the borrower, but instead underwrites the Mortgage using the underwriting guidelines set forth in the
Selling Guide for Community Lending mortgages coupled with the development of an acceptable traditional credit profile (under Part X, Section 304.01 of the Selling Guide), or if applicable, an
acceptable nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history
must have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling Guide. 

		(c)	Where Lender requests a “representative” credit score on the borrower, but the borrower has no score due to no credit record with the repository, Lender
underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable nontraditional credit
profile (under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the requirements of Part X, Section
803.02 of the Selling Guide.

		(d)	Where Lender obtains a “representative” credit score on the borrower, but the score is less than 600, Lender underwrites the Mortgage using any one of the three options set forth below; provided, however, the borrower will not be eligible where eligibility could only be achieved by combining the following options (for example, “extenuating
circumstances” may not be used to compensate for deficiencies upon application of the criteria for nontraditional credit history): 

		(1)	The borrower has an insufficient traditional credit history (as documented by reason codes showing lack of credit accounts, accounts not opened long enough, or lack of usage as the reasons for the low
“representative” credit score), and Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable nontraditional credit profile (under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit
that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.

		(2)	Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled with the development of an acceptable traditional credit profile (under Part X, Section 304.01 of the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must have reestablished credit
that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.

		(3)	The borrower’s credit history was heavily influenced by credit deficiencies that were the result of a documented “extenuating circumstance,” and the
borrower’s credit history has been reestablished and meets the conditions specified in the Selling Guide for the reestablishment of an acceptable credit history following an “extenuating
circumstance” (under Part X, Section 803.02 of the Selling Guide). 

 In no circumstance may a nontraditional credit evaluation be used to offset derogatory
credit.] 
 

		12.	Mortgage Insurance 

 Mortgage insurance requirements for SMC Eligible Mortgages: 
 MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will obtain “secondary market coverage” (“SMC”) must have an LTV in
excess of 90% and must also comply with the “secondary market policy” terms of the “Special Requirements” section of this Master Agreement (“SMC Eligible Mortgages”); mortgage insurance must
be provided by Radian. Lender must comply with the eligibility requirements as determined by the applicable mortgage insurer, and if a loan does not comply with such eligibility requirements, it may not be delivered as an SMC Eligible Mortgage (such
ineligible mortgages are referred to herein as “SMC Ineligible Mortgages”). In addition, SMC Eligible Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no. C06589, and (ii) if delivered under
Cash Delivery, must be delivered under seller/servicer branch no. 23227-003-9 and 24837-002-5. For SMC Eligible Mortgages, individual loan mortgage insurance providing 35% coverage is required. SMC Eligible MyCommunityMortgage Mortgages may be
covered under “A Paper” or “A-Minus” mortgage insurance premium rates as determined by the eligibility requirements of the applicable mortgage insurer. 
 Mortgage insurance requirements for (i) SMC Ineligible Mortgages and (ii) MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will otherwise NOT obtain
SMC (collectively, “Non-SMC Mortgages”): 
 Individual loan mortgage insurance coverage is required as follows; coverage may be provided by any eligible
mortgage insurer (i.e., the mortgage insurer for Non-SMC Mortgages is not limited to the insurer(s) specified above for SMC Eligible Mortgages): 

		•	LTV is 90.01% - 97.00%:      35% 

		•	LTV is 85.01% - 90.00%:      30% 

		•	LTV is 80.01% - 85.00%:      25% 

 Non-SMC Mortgages, if delivered under Cash Delivery,
must be delivered under seller/servicer no. 24837-000-9. 
 Note: SMC Eligible Mortgages and Non-SMC Mortgages may NOT be delivered under the same Pool Purchase
Contract (if delivered under MBS Delivery), or under the same seller/servicer branch no. (if delivered under Cash Delivery). 

		13.	Homebuyer Education 

 All first-time borrowers must complete homebuyer education according to the provisions of
the Selling Guide for prepurchase homebuyer education. 

		14.	Delinquency Counseling 

 For all borrowers, Lender must follow the requirements of the Selling Guide and the
Servicing Guide for postpurchase early delinquency counseling. 

		15.	Allocation 

 These terms and conditions do not contain a specific limitation on the aggregate principal amount
of Mortgages that Lender may deliver or a date (other than the applicable Expiration Date) by which Lender must deliver the Mortgages. However, in order to be able to efficiently allocate the resources that Fannie Mae has made available for this
pilot, Fannie Mae may from time to time and at any time set a limit on the aggregate principal amount of Mortgages that Lender may 
 

  deliver or terminate Lender’s ability to deliver Mortgages under this pilot. If, after giving consideration to the aggregate principal
amount of Mortgages that Lender has delivered and to the aggregate principal amount of commitments for such Mortgages that Lender has made, Fannie Mae elects to set a limit or terminate Lender’s participation, Fannie Mae will give Lender at
least 90 days prior written notice of its intent to do so. 

		16. 	Pricing for Cash Deliveries 

 Cash pricing is available through the MORNET Bulletin section
of MORNET Manager. The MORNET Bulletin for Cash Pricing is contained in the Secondary Marketing section (Fannie Mae Pricing; Cash Pricing) of MORNET Manager. The selection is “MyCommunityMortgage Products.” The option for pricing using
“Secondary Market Coverage” must be selected. Cash Pricing screens are available for 30-year fixed-rate mortgages and for 7/1 ARMs (Fannie Mae Plans 750 and 751). For fixed-rate
mortgages with terms of less than 30 years, Lender must contact Fannie Mae’s Cash Commitment window at 1-800-752-1080, option #5 Negotiated Pricing, and obtain a negotiated Cash Delivery commitment. For 10/1 ARMs (Fannie Mae Plans 1423 and 1437), screens are not available, and Lender must contact Fannie Mae’s Cash Commitment window to obtain a negotiated commitment.] 

		18. 	Special Feature Code 

 For all Mortgages originated under these terms and conditions, Lender
is required to enter Special Feature Code “460” on the Loan Schedule (Form 1068) or Schedule of Mortgages (Form 2005).
 

  Attachment A
  

	  
 	  
 
	 
 	 
 
	 MyCommunityMortgage Pilot Eligibility Matrix
 	  
 
	 
 	 
 
	 Product
 Option
 	  
 	 Loan Type
 	  
 	 Purpose
 	  
 	 Occupancy
 	  
 	 Other Property
 Owned
 	  
 	 Non-Occupant
 Co-borrower
 	  
 	 Units/Type
 	  
 	 Maximum 
 LTV **
 	  
 	 Maximum
 CLTV
 	  
 	 Borrower Income
 	  
 	 Subordinate
 Financing
 	  
 	 MI Coverage
 	  
 
	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 
	 Community 97
 	  
 	 Fixed-Rate
 Mortgage, 7/1
 or 10/1 ARMS
 (no ARMS
 where EEM
 guidelines used)
 	  
 	 PMM or No Cash-
 Out Refinance
 (Existing UPB of first
 mortgage rounded
 to the nearest
$100)
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 One Unit*
 	  
 	 97%
 	  
 	  
 	  
 	 If borrower income exceeds
 area median income
 limitations, verify property
 is in a
FannieNeighbors
 location through Fannie Mae’s
 geocoding service through
 efanniemae.com
 	  
 	 Must meet
 Community
 Seconds
 guidelines
 	  
 	 35%
 	  
 
	 
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 	  
 	  
 	  
 	  
 
	 Community 100
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 100%
 	  
 	  
 	  
 	  
 	  
 
	 
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 	  
 	  
 	  
 	  
 	  
 
	 Community 
 100 Plus
 	  
 	  
 	  
 	 Owner-
 Occupied
 	  
 	 None
 	  
 	 Not Allowed
 	  
 	  
 	 95%
 	  
 	 105%
 	  
 	  
 	  
 	  
 
	 
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 
 	  
 	 
 	  
 	  
 	  
 	  
 	  
 	  
 
	 Community 
 2-Family
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	 2 Units
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 	  
 
	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 	 
 

 
 *  Includes condos, PUDs, manufactured housing. Provided, however, where EEM guidelines
used, no manufactured housing allowed.
 **  Minimum LTV must exceed 90%.Restricted Stock Plan for Robert C. KenKnight

  EXHIBIT 10.12
 CRESCENT
BANKING COMPANY
 RESTRICTED STOCK PLAN FOR ROBERT C. KENKNIGHT
 1.          Purpose. The purpose of the Crescent Banking Company Restricted Stock Plan for Robert C. KenKnight (the “Plan”) is to advance
the interests of Crescent Banking Company (the “Company”) by encouraging ownership of the Company’s $1.00 par value common stock (“Common Stock”) by Robert C. KenKnight (“KenKnight”), thereby giving him an
increased incentive to devote his efforts to the success of the Company.
 2.          Administration. Grants of restricted stock under the Plan are automatic. This Plan is intended to be a “formula plan” and
shall be interpreted accordingly. The Board of Directors of the Company shall have the authority to administer and interpret the Plan. Any controversy between KenKnight and the Board of Directors
concerning the interpretation or administration of the Plan shall be settled by arbitration held in Jasper, Georgia before a single arbitrator (who shall be licensed to practice law in Georgia) in accordance with the then prevailing Rules of
Commercial Arbitration of the American Arbitration Association, and judgment upon the award rendered by the arbitrator may be entered in the Superior Court of Pickens County, Georgia..
 3.          Eligibility. Provided that shares of Common Stock remain available for grant hereunder in
accordance with Section 4, awards of Common Stock shall be granted in accordance with Section 5 hereof to KenKnight, subject to the restrictions described in Section 6 hereof.
 4.          Shares Subject to Plan. The shares of Common Stock subject to the Plan shall be authorized
but unissued or reacquired shares of Common Stock. Subject to adjustment in accordance with the provisions of Section 11 of the Plan, the maximum number of shares of Common Stock which may be granted
under the Plan shall be 50,000 and the initial adoption of the Plan by the Board of Directors of the Company shall constitute a reservation of 50,000 authorized but unissued, or reacquired, shares of Common Stock for issuance under the
Plan.
 5.          Annual Grants of Common Stock. Common Stock granted pursuant to the Plan shall be evidenced by Restricted Stock Agreements in such form as shall comply with and be subject to the terms and conditions of the Plan, including without limitation the following:
 (a)        Grant. On the first day of March of each year on which
KenKnight is an employee of the Company, beginning March 1, 1997, KenKnight shall be granted a number of shares of Common Stock determined in accordance with the formula set forth in subsection 5(b) below, subject to adjustment pursuant to Section
11. Each such day that shares of Common Stock are to be granted under the Plan is referred to hereinafter as a “Grant Date.”
 

  If on. any Grant Date, shares of Common Stock are not available under this Plan to grant to KenKnight the full amount of a grant contemplated
by the immediately preceding paragraph, then KenKnight shall receive an award of Common Stock in an amount equal to the remaining number of shares of Common Stock then available under the Plan, plus an amount in cash equal to the Stated Value of the
shares of Common Stock that were not available under the Plan to make the full grant.
 (b)        Calculation of Shares.
 (i)         Definitions. For purposes of the Plan, the following terms have the meanings given below.
 “Bank” means Crescent Bank and Trust Company, a wholly owned subsidiary of the Company.
 “CMD”
means Crescent Mortgage, a division of the Bank.
 “CMS” means Crescent Mortgage Services, Inc., a. wholly owned subsidiary of the Company.
 “Change in Portfolio Value” means the amount of increase or decrease in the Net Appraised Value of the Mortgage Servicing Portfolio from the end of the preceding
year.
 “Contribution of the CMD” means the combined net income (or net loss) of both CMD .and CMS, before provision for federal income tax (or credit),
calculated in accordance with the accounting principles and practices utilized by the Bank in the preparation of its regular financial statements, as supplemented by the understandings set forth in the attached memorandum from Don Boggus, Jr. dated
May 31, 1995 (Exhibit A).
 “Mortgage Servicing Portfolio” means the mortgage servicing rights owned by the Bank, or a subsidiary of the Bank, or CMS or
another subsidiary of the Company.
 “Net Appraised Value” means the independently appraised value of the Mortgage Servicing Portfolio, minus the
capitalized cost of acquisition (or capitalized value under generally accepted accounting principles, whichever is reflected on the Bank’s financial statements) of such Portfolio.
 “Pre-Tax Equivalent Rate” means the rate determined by multiplying (i) 5.3% by (ii) one minus the Bank’s applicable federal income tax rate. For example, the Pre-Tax Equivalent Rate as of the effective
date of the Plan is 3.5% [5.3% x (1-34%)].
 “Stated Value” of a share of Common Stock on any date means one and one-half (1.5) times the book value per
share, as reflected on the most recent prior audited balance sheet of the Company.
 
- 2
-

  “Value Added of the CMD” for each year shall be the sum of (i) the Contribution of the CMD for such year, and (ii) the Change in
Portfolio Value for such year.
 (ii)        Number of Shares to be
Granted. The number of shares of Common Stock to be granted to KenKnight each year pursuant to subsection 5(a) hereof shall be that number of shares of Common Stock having a Stated Value on the Grant Date equal to the Pre-Tax
Equivalent Rate times the Value Added of the CMD for such year. If such calculation results in a! fractional share, the number of shares of Common Stock to be granted on such Grant Date shall be rounded down to the nearest whole share and KenKnight
shall receive a cash payment equal to the Stated Value of the fractional share as of such Grant Date. Set forth below is a hypothetical illustration of the calculation of described in this subsection 5(b).
  

	  
 	 1996
 	  
 	 1997
 	  
 	 1998
 	  
 	 1999
 
	  
 	 
 	  
 	 
 	  
 	 
 	  
 	 
 
	 Contribution of CMD
 	 $
 	 1,100,000
 	  
 	 $
 	 1,210,000
 	  
 	 $
 	 1,331,000
 	  
 	 $
 	 1,464,100
 
	 Change in Portfolio Value
 	  
 	 250,000
 	  
 	  
 	 350,000
 	  
 	  
 	 450,000
 	  
 	  
 	 550,000
 
	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 
	 Value Added of CMD
 	 $
 	 1,350,000
 	  
 	 $
 	 1,560,000
 	  
 	 $
 	 1,781,000
 	  
 	 $
 	 2,014,100
 
	 x Pre-Tax Equivalent Rate
 	  
 	 .035
 	  
 	  
 	 .035
 	  
 	  
 	 .035
 	  
 	  
 	 .035
 
	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 	  
 	 
 	 
 
	 Dollar Amount Earned
 	 $
 	 47,250
 	  
 	 $
 	 54,600
 	  
 	 $
 	 62,335
 	  
 	 $
 	 70,494
 
	 Stated Value per share
 	 $
 	 ÷16.00
 	  
 	 $
 	 ÷16.00
 	  
 	 $
 	 ÷16.00
 	  
 	 $
 	 ÷16.00
 
	 Shares of Restricted Stock
 	  
 	 2,953
 	  
 	  
 	 3,412
 	  
 	  
 	 2,895
 	  
 	  
 	 4,405
 
	 Fractional Share
 	  
 	 .125
 	  
 	  
 	 .5
 	  
 	  
 	 .9375
 	  
 	  
 	 .875
 
	 Cash for Fractional Share
 	 $
 	 2.00
 	  
 	 $
 	 8.00
 	  
 	 $
 	 15.00
 	  
 	 $
 	 14.00
 

 6.          Restrictions. Common Stock granted under the Plan shall be subject to each of the following restrictions. “Restricted Stock”
means those shares of Common Stock granted under the Plan that are subject to the restrictions imposed hereunder which restrictions have not then expired or terminated. Restricted Stock may not be sold, transferred, exchanged, assigned, pledged,
hypothecated or otherwise encumbered. If KenKnight’s employment with the Company or any Subsidiary terminates for any reason other than as set forth in subsections 7(c) or 7(d) below, then KenKnight shall forfeit all of his right, title and
interest in and to any unvested shares of Restricted Stock as of the date of employment termination.
 7.          Termination of Restrictions. The restrictions imposed under Section 6 will expire or terminate on the earliest to occur of the
following:
 
- 3
-

  (a)        As to the shares of Restricted Stock awarded in
any year, on the following respective dates:
  

	      Number of Shares
 	 	  
 	     Date of Termination of Restrictions
 	 	  
 
	  
 	  
 	  
 	  
 
	 [20% of shares granted]
 	  
 	 [1st anniversary of the Grant Date]
 	  
 
	 [20% of shares granted]
 	  
 	 [2nd anniversary of the Grant Date]
 	  
 
	 [20% of shares granted]
 	  
 	 [3rd anniversary of the Grant Date]
 	  
 
	 [20% of shares granted]
 	  
 	 [4th anniversary of the Grant Date]
 	  
 
	 [20% of shares granted]
 	  
 	 [5th anniversary of the Grant Date]; or
 	  
 

 (b)        On KenKnight’s 65th birthday; or
 (c)        On the first day of the
calendar month next following the termination of KenKnight’s employment with the Company or any Subsidiary if such termination is by reason of his death; or
 (d)        On the effective date of the dissolution or liquidation of the Company.
 8.          Enforcement of Restrictions. In order to enforce the restrictions imposed upon the Restricted Stock, KenKnight
will, immediately upon receipt of the certificates representing Restricted Stock, deposit such certificates, together with stock powers or other instruments of transfer appropriately endorsed in blank, with the Company. Further, such certificate or
certificates will bear the following legends:
 “This securities evidenced by this certificate are subject to the terms and conditions (including forfeiture
and restrictions against transfer) contained in the Crescent Banking Company Restricted Stock Plan for Robert C. KenKnight (the “Plan”), and a Restricted Stock Award Agreement between the registered owner of the shares and Crescent Banking
Company. Release from such terms and conditions shall be made only in accordance with the provisions of such Plan and Agreement, copies of which are on file in the office of the Secretary of Crescent Banking Company.
 “The securities evidenced by this certificate have not been registered under the Securities Act of 1933, as amended, and may not be sold, transferred, assigned, or hypothecated
unless (i) there is an effective registration statement under such Act covering such securities, (ii) the transfer is made in compliance with Rule 144 promulgated under such Act, or (iii) the Company receives an opinion of counsel, reasonably
satisfactory to the Company, stating that such sale, transfer, assignment or hypothecation is exempt from the registration requirements of such Act.
 “The
securities have been issued or sold in reliance on paragraph (13) of Code section 10-5-9 of the Georgia Securities Act of 1973, and may not be sold or transferred except
 
- 4
-

  in a transaction which is exempt under such Act or pursuant to an effective registration statement under such Act.”
 After the termination of the restrictions on Restricted Stock, new certificates, without the first legend set forth above but retaining the second and third legends, if
appropriate, for that number of Shares which are no longer subject to such restrictions will be delivered to KenKnight.
 The Company may also endorse any other
legends required by applicable federal or state securities laws. Any legend endorsed on a certificate pursuant to this Section 8 and the stop transfer instructions with respect to the shares of Common Stock shall be removed, as appropriate, and the
Company shall issue a certificate without such legend to the holder thereof if such shares are registered under the Securities Act of 1933, as amended (the “1933 Act”) and a prospectus meeting the requirements of Section 10 of the 1933 Act
is available.
 9.          Payment of Taxes.
KenKnight will, no later than the date as of which any amount related to an award of Restricted Stock first becomes includable in his gross income for federal income tax purposes, pay to the Company, or make other arrangements satisfactory to the
Committee regarding payment of, any federal, state and local taxes of any kind required by law to be withheld with respect to such amount. The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and
the Company, and, where applicable, its Subsidiaries will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to KenKnight.
 10.       Rights as Shareholder. KenKnight, as beneficial owner of the Restricted Stock, shall have full voting and
dividend rights with respect to the Restricted Stock from and after the Grant Date, regardless of whether the applicable restrictions have lapsed.
 11.       Adjustments. If any change is made in the Common Stock (through merger, consolidation, reorganization, recapitalization, stock dividend, dividend in
property other than ‘Cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or otherwise), the Plan and outstanding shares of Restricted Stock will be automatically and appropriately
adjusted, including the maximum number of shares subject to the Plan and the number of shares of outstanding Restricted Stock.
 12.       Effective Date, Termination and Amendment of Plan. The Plan shall become effective on May 1,1996. The Board of Directors may terminate or amend the Plan
at any time; provided that no such termination or amendment shall alter or impair any of the rights or obligations with respect to any outstanding shares of Restricted Stock unless KenKnight shall so consent.
 
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