Document:

EXHIBIT 10.18

 

EXECUTION COPY

 

ASSIGNMENT OF REPRESENTATIONS AND WARRANTIES AGREEMENT

This is an Assignment of Representations and Warranties Agreement (the “Agreement”) made as of the 27th day of September, 2011, among Redwood Residential Acquisition Corporation, a Delaware corporation (“Assignor”), Sequoia Residential Funding, Inc., a Delaware corporation (“Depositor”), U.S. Bank National Association, a national banking association, not in its individual capacity but solely as trustee (in such capacity, the “Trustee” or the “Assignee”) under a Pooling and Servicing Agreement dated as of September 1, 2011 (the “Pooling and Servicing Agreement”), and Sterling Savings Bank, a Washington corporation (“Sterling”).

In consideration of the mutual promises contained herein, the parties hereto agree that the mortgage loans (the “Mortgage Loans”) listed on Attachment 1 annexed hereto (the “Mortgage Loan Schedule”) are subject to the terms of the Flow Mortgage Loan Purchase and Sale Agreement dated as of March 1, 2011, between Assignor and Sterling (the “Purchase Agreement”) as modified or supplemented by this Agreement.  Unless otherwise specified herein, capitalized terms used herein but not defined shall have the meanings ascribed to them in the Purchase Agreement.  Assignor will sell the Mortgage Loans to Depositor pursuant to a Mortgage Loan Purchase and Sale Agreement dated the date hereof, and Depositor will sell the Mortgage Loans to Assignee pursuant to the Pooling and Servicing Agreement.

Assignment

1.           Assignor hereby grants, transfers and assigns to Depositor all of its right, title and interest in, to and under the representations and warranties made by Sterling pursuant to the Purchase Agreement to the extent relating to the Mortgage Loans, and Depositor hereby accepts such assignment from Assignor.

2.           Depositor hereby grants, transfers and assigns to Assignee all of its right, title and interest in, to and under the representations and warranties made by Sterling pursuant to the Purchase Agreement to the extent relating to the Mortgage Loans, and Assignee hereby accepts such assignment from Depositor.

3.           Sterling hereby acknowledges the foregoing assignments.

Representations and Warranties

4.            Assignor warrants and represents to, and covenants with, Depositor, Assignee and Sterling as of the date hereof that:

(a)            Attached hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement, which agreement is in full force and effect as of the date hereof and the provisions of which have not been waived, amended or modified in any respect, nor has any notice of termination been given thereunder;

 

  

  

  

 

(b)            Assignor is the lawful owner of its interests and rights under the Purchase Agreement to the extent of the Mortgage Loans, free and clear from any and all claims and encumbrances whatsoever, and upon the transfer of such interests and rights to Assignee as contemplated herein, Assignee shall have good title to all of Assignee's interests and rights under the Purchase Agreement to the extent of the Mortgage Loans, free and clear of all liens, claims and encumbrances;

(c)            There are no offsets, counterclaims or other defenses available to Sterling with respect to the Purchase Agreement;

(d)            Assignor is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, and has all requisite power and authority to enter into and perform its obligations under the Purchase Agreement;

(e)            Assignor has full corporate power and authority to execute, deliver and perform its obligations under this Agreement, and to consummate the transactions set forth herein.  The consummation of the transactions contemplated by this Agreement is in the ordinary course of Assignor’s business and will not conflict with, or result in a breach of, any of the terms, conditions or provisions of Assignor’s charter or by-laws or any legal restriction, or any material agreement or instrument to which Assignor is now a party or by which it is bound, or result in the violation of any law, rule, regulation, order, judgment or decree to which Assignor or its property is subject.  The execution, delivery and performance by Assignor of this Agreement and the consummation by it of the transactions contemplated hereby, have been duly authorized by all necessary corporate action on the part of Assignor.  This Agreement has been duly executed and delivered by Assignor and, upon the due authorization, execution and delivery by Assignee, will constitute the valid and legally binding obligation of Assignor enforceable against Assignor in accordance with its terms except as enforceability may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally, and by general principles of equity regardless of whether enforceability is considered in a proceeding in equity or at law; and

(f)            No consent, approval, order or authorization of, or declaration, filing or registration with, any governmental entity is required to be obtained or made by Assignor in connection with the execution, delivery or performance by Assignor of this Agreement, or the consummation by it of the transactions contemplated hereby.

5.           Depositor warrants and represents to, and covenants with, Assignor, Assignee and Sterling that as of the date hereof:

(a)            Depositor is a Delaware corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation;

(b)            Depositor has full corporate power and authority to execute, deliver and perform its obligations under this Agreement, and to consummate the transactions set forth herein.  The consummation of the transactions contemplated by this Agreement is in the ordinary course of Depositor’s business and will not conflict with, or result in a breach of, any of the terms, conditions or provisions of Depositor’s charter or by-laws or any legal restriction, or any material agreement or instrument to which Depositor is now a party or by which it is bound, or result in the violation of any law, rule, regulation, order, judgment or decree to which Depositor or its property is subject.  The execution, delivery and performance by Depositor of this Agreement and the consummation by it of the transactions contemplated hereby, have been duly authorized by all necessary corporate action on part of Depositor. This Agreement has been duly executed and delivered by Depositor and, upon the due authorization, execution and delivery by the other parties hereto, will constitute the valid and legally binding obligation of Depositor enforceable against Depositor in accordance with its terms except as enforceability may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally, and by general principles of equity regardless of whether enforceability is considered in a proceeding in equity or at law; and

 

  

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(c)            No consent, approval, order or authorization of, or declaration, filing or registration with, any governmental entity is required to be obtained or made by Depositor in connection with the execution, delivery or performance by Depositor of this Agreement, or the consummation by it of the transactions contemplated hereby other than any that have been obtained or made.

6.           Assignee warrants and represents to, and covenants with, Assignor, Depositor and Sterling that as of the date hereof:

(a)            Assignee is a national banking association duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization; and

(b)            Assignee has been directed to enter into this Agreement pursuant to the provisions of the Pooling and Servicing Agreement.  The execution, delivery and performance by Assignee of this Agreement and the consummation by it of the transactions contemplated hereby, have been duly authorized by all necessary action on part of Assignee. This Agreement has been duly executed and delivered by Assignee and, upon the due authorization, execution and delivery by the other parties hereto, will constitute the valid and legally binding obligation of Assignee enforceable against Assignee in accordance with its terms except as enforceability may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally, and by general principles of equity regardless of whether enforceability is considered in a proceeding in equity or at law.

7.            Sterling warrants and represents to, and covenants with, Assignor, Depositor and Assignee as of the date hereof that:

 

  

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(a)            Attached hereto as Attachment 2 is a true and accurate copy of the Purchase Agreement, which agreement is in full force and effect as of the date hereof and the provisions of which have not been waived, amended or modified in any respect, nor has any notice of termination been given thereunder;

(b)            Sterling is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, and has all requisite power and authority to perform its obligations under the Purchase Agreement;

(c)            Sterling has full corporate power and authority to execute, deliver and perform its obligations under this Agreement, and to consummate the transactions set forth herein.  The consummation of the transactions contemplated by this Agreement is in the ordinary course of Sterling’s business and will not conflict with, or result in a breach of, any of the terms, conditions or provisions of Sterling’s charter or by-laws or any legal restriction, or any material agreement or instrument to which Sterling is now a party or by which it is bound, or result in the violation of any law, rule, regulation, order, judgment or decree to which Sterling or its property is subject.  The execution, delivery and performance by Sterling of this Agreement and the consummation by it of the transactions contemplated hereby, have been duly authorized by all necessary corporate action on part of Sterling.  This Agreement has been duly executed and delivered by Sterling and, upon the due authorization, execution and delivery by Assignor, Assignee and the Depositor, will constitute the valid and legally binding obligation of Sterling enforceable against Sterling in accordance with its terms except as enforceability may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally, and by general principles of equity regardless of whether enforceability is considered in a proceeding in equity or at law; and

(d)            No consent, approval, order or authorization of, or declaration, filing or registration with, any governmental entity is required to be obtained or made by Sterling in connection with the execution, delivery or performance by Sterling of this Agreement, or the consummation by it of the transactions contemplated hereby.

Restated Sterling Representations and Warranties

8.           Pursuant to Section 32(d) of the Purchase Agreement, Sterling hereby restates to Depositor and Assignee (a) the representations and warranties set forth in Subsection 7.01 of the Purchase Agreement as of the related Closing Date and (b) the representations and warranties set forth in Subsection 7.02 of the Purchase Agreement as of the date hereof, as if such representations and warranties were set forth herein in full.

In the event of a breach of any representations and warranties referred to in clauses (a) or (b) above as of the related Closing Date or the date hereof, as the case may be, Assignee shall be entitled to all the remedies under the Purchase Agreement, including, without limitation, the right to compel Sterling to repurchase Mortgage Loans pursuant to Section 7.03 of the Purchase Agreement, subject to the provisions of Section 10.

 

  

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Recognition of Assignee

9.           From and after the date hereof, subject to Section 10 below, Sterling shall recognize Assignee as owner of the Mortgage Loans and will perform its obligations hereunder for the benefit of the Assignee in accordance with the Purchase Agreement, as modified hereby or as may be amended from time to time in a writing signed by Sterling, as if Assignee and Sterling had entered into a separate purchase agreement for the purchase of the Mortgage Loans in the form of the Purchase Agreement, the terms of which are incorporated herein by reference, as amended by this Agreement.

Enforcement of Rights

10.           (a)            Controlling Holder Rights.  Sterling agrees and acknowledges that Sequoia Mortgage Funding Corporation, an Affiliate of the Depositor, in its capacity as the initial Controlling Holder pursuant to the Pooling and Servicing Agreement, and for so long as it is the Controlling Holder, will exercise all of Assignee's rights as Purchaser under each of the following sections of the Purchase Agreement:

 

	
Purchase Agreement:

	 
	 	 
	
Section or Subsection

	
Matter

	  	  
	
6.03

	
Delivery of Mortgage Loan Documents

	 	 
	
7.03, other than 7.03(c)

	
Repurchase and Substitution

(b)            If any Affiliate of the Depositor is no longer the Controlling Holder under the Pooling and Servicing Agreement, then all rights that are to be exercised by the Controlling Holder pursuant to Section 10(a) shall be exercised by Assignee.

Amendments to Purchase Agreement

11.           The parties agree that the Purchase Agreement shall be amended, solely with respect to the Mortgage Loans, as follows:

(a)            Definitions.

(i)           The definitions of “Arbitration,” “Business Day” and “Repurchase Price” set forth in Section 1 of the Purchase Agreement shall be deleted and replaced in their entirety as follows:

 

  

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Arbitration:  Arbitration in accordance with the then governing Commercial Arbitration Rules of the American Arbitration Association and administered by the American Arbitration Association, which shall be conducted in New York, New York or other place mutually acceptable to the parties to the arbitration.

Business Day:  Any day other than (i) a Saturday or a Sunday, (ii) a legal holiday in the states of California, Maryland, Minnesota, Missouri, New York or Washington,  (iii) a day on which banks in the states of California, Maryland, Minnesota, Missouri, New York or Washington, are authorized or obligated by law or executive order to be closed or (iv) a day on which the New York Stock Exchange or the Federal Reserve Bank of New York is closed.

Repurchase Price:   With respect to any Mortgage Loan, a price equal to (i) the unpaid principal balance of the Mortgage Loan, plus (ii) interest on such unpaid principal balance at the related Mortgage Interest Rate from the last date through which interest was last paid by or on behalf of the Mortgagor to the last day of the month in which such repurchase occurs, plus (iii) reasonable and customary third party expenses incurred in connection with the transfer of the Mortgage Loan being repurchased, minus (iv) any amounts received in respect of such repurchased Mortgage Loan and being held for future distribution in connection with such Mortgage Loan.

(b)            The rights under the Purchase Agreement assigned to the Depositor and the Assignee pursuant to this Agreement shall be under the Purchase Agreement as amended by this Agreement.

Miscellaneous

12.           All demands, notices and communications related to the Mortgage Loans, the Purchase Agreement and this Agreement shall be in writing and shall be deemed to have been duly given if personally delivered at or mailed by registered mail, postage prepaid, as follows:

(a)           In the case of Sterling,

Sterling Savings Bank Home Loan Division

6505 218th St SW, Suite 9

Mountlake Terrace, WA, 98043

Attention:  Kathrine Shairrick, Loan Servicing

Phone: (425) 712-4280

Facsimile: (425) 673-4829

 

  

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with a copy to

General Counsel at the same address

(b)           In the case of Assignee,

U.S. Bank National Association

60 Livingston Avenue

EP-MN-WS3D

St. Paul, Minnesota, 55107

Attention: Structured Finance – Sequoia Mortgage Loan Trust 2011-2

 (c)           In the case of Depositor,

Sequoia Residential Funding, Inc.

One Belvedere Place, Suite 360

Mill Valley, California 94941

Attention: William Moliski

with a copy to

General Counsel at the same address

(d)           In the case of Assignor,

Redwood Residential Acquisition Corporation

One Belvedere Place, Suite 360

Mill Valley, California 94941

Attention: William Moliski

with a copy to

General Counsel at the same address

(e)           In the case of Master Servicer,

Wells Fargo Bank, N.A.

9062 Old Annapolis Road

Columbia, Maryland 21045)

Telephone number:  (410) 884-2000

Facsimile number: (410) 715-2380

Electronic mail address:  g=cts-spg-team-a-5@wellsfargo.com

Attention:  Client Manager -- Sequoia Mortgage Trust 2011-2

(f)           In the case of the Controlling Holder,

 

  

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Sequoia Mortgage Funding Corporation

One Belvedere Place, Suite 360

Mill Valley, California 94941

Attention: William Moliski

with a copy to

General Counsel at the same address

13.           This Agreement shall be construed in accordance with the laws of the State of New York, except to the extent preempted by Federal law, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws, without regard to the conflicts of laws provisions of the State of New York or any other jurisdiction.

14.           No term or provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the party against whom such waiver or modification is sought to be enforced.

15.           This Agreement shall inure to the benefit of the successors and assigns of the parties hereto.  Any entity into which Assignor, Depositor, Assignee or Sterling may be merged or consolidated shall, without the requirement for any further writing, be deemed Assignor, Depositor, Assignee or Sterling, respectively, hereunder.

16.           This Agreement shall survive the conveyance of the Mortgage Loans, the assignment of the representations and warranties made by Sterling pursuant to the Purchase Agreement to the extent of the Mortgage Loans by Assignor to Depositor and by Depositor to Assignee, and the termination of the Purchase Agreement.

17.           This Agreement may be executed simultaneously in any number of counterparts.  Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument.

18.           The Controlling Holder under the Pooling and Servicing Agreement is an express third party beneficiary of this Agreement, and shall have the same power and ability to exercise and enforce the rights stated to be provided to it hereunder as if it were a signatory hereto.  Sterling hereby consents to such exercise and enforcement. 

19.           It is expressly understood and agreed by the parties hereto that insofar as this Agreement is executed by the Trustee (i) this Agreement is executed and delivered by U.S. Bank National Association (“U.S. Bank”) not in its individual capacity but solely as Trustee on behalf of the trust created by the Pooling and Servicing Agreement referred to herein (the “Trust”) in the exercise of the powers and authority conferred upon and vested in it, and as directed in the Pooling and Servicing Agreement, (ii) each of the undertakings and agreements herein made on behalf of the Trust is made and intended not as a personal undertaking or agreement of or by U.S. Bank but is made and intended for purposes of binding only the Trust, (iii) nothing herein contained shall be construed as creating any liability on the part of U.S. Bank, individually or personally, to perform any covenant either express or implied in this Agreement, all such liability, if any, being expressly waived by the parties hereto and by any person claiming by, through or under the parties hereto, and (iv) under no circumstances shall U.S. Bank in its individual capacity or in its capacity as Trustee be personally liable for the payment of any indebtedness, amounts or expenses owed by the Assignor under the Purchase Agreement, as modified or supplemented by this Agreement (such indebtedness, expenses and other amounts being payable solely from and to the extent of funds of the Trust) or be personally liable for the breach or failure of any obligation, representation, warranty or covenant made under this Agreement or any other related documents.

 

  

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20.           Master Servicer.  Sterling hereby acknowledges that the Assignee has appointed Wells Fargo Bank, N.A. to act as master servicer and securities administrator under the Pooling and Servicing Agreement and hereby agrees to treat all inquiries, demands, instructions, authorizations and other communications from the Master Servicer as if the same had been received from the Assignee.  The Master Servicer, acting on behalf of the Assignee, shall have the rights of the Assignee as the Purchaser under this Agreement, including, without limitation, the right to enforce the obligations of Sterling hereunder and under the Purchase Agreement and the right to exercise the remedies of the Purchaser hereunder and under the Purchase Agreement.

Sterling shall make all remittances due by it to the Purchaser with respect to the Mortgage Loans to the following account by wire transfer of immediately available funds:

Wells Fargo Bank, N.A.

San Francisco, California

ABA# 121-000-248

Account #3970771416

Account Name: SAS Clearing

FFC: Account #83707500, Sequoia Mortgage Trust 2011-2 Certificate Distribution Account

21.           Sterling acknowledges that the custodian will be Wells Fargo Bank, N.A. acting pursuant to the Custodial Agreement.  Notwithstanding Section 10 of the Purchase Agreement, Sterling shall pay shipping expenses for any Mortgage Loan Documents if there has been a breach of any representation or warranty made with respect to the related Mortgage Loan in Subsection 7.01 of the Purchase Agreement.

22.           Rule 17g-5 Compliance.  Sterling hereby agrees that it shall provide information with respect to the Mortgage Loans or the origination thereof to any Rating Agency or nationally recognized statistical rating organization (“NRSRO”) via electronic mail at rmbs17g5informationprovider@wellsfargo.com, with a subject reference of “SEMT 2011-2” and an identification of the type of information being provided in the body of such electronic mail.  The Securities Administrator, as the initial Rule 17g-5 Information Provider (the “Rule 17g-5 Information Provider”) shall notify Sterling in writing of any change in the identity or contact information of the Rule 17g-5 Information Provider.  Sterling shall have no liability for (i) the Rule 17g-5 Information Provider’s failure to post information provided by it in accordance with the terms of this Agreement or (ii) any malfunction or disabling of the website maintained by the Rule 17g-5 Information Provider.  None of the foregoing restrictions in this Section 22 prohibit or restrict oral or written communications, or providing information, between Sterling, on the one hand, and any Rating Agency or NRSRO, on the other hand, with regard to (i) such Rating Agency’s or NRSRO’s review of the ratings it assigns to Sterling or (ii) such Rating Agency’s or NRSRO’s evaluation of Sterling’s operations in general; provided, however, that Sterling shall not provide any information relating to the Mortgage Loans to such Rating Agency or NRSRO in connection with such review and evaluation by such Rating Agency or NRSRO unless: (x) borrower, property or deal specific identifiers are redacted; or (y) such information has already been provided to the Rule 17g-5 Information Provider.

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

 

 

	 	
REDWOOD RESIDENTIAL ACQUISITION CORPORATION

Assignor

By: ______________________

Name: ____________________

Title: _____________________

SEQUOIA RESIDENTIAL FUNDING, INC.

Depositor

By: ______________________

Name: ____________________

Title: _____________________

U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as Trustee,

Assignee

By: ______________________

Name: ____________________

Title: _____________________

STERLING SAVINGS BANK

By: ______________________

Name: ____________________

Title: _____________________

          

 

Accepted and agreed to by:

WELLS FARGO BANK, N.A.

Master Servicer

By: ______________________

Name: ____________________

Title: _____________________

 

  

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ATTACHMENT 1

MORTGAGE LOAN SCHEDULE

 

  

11

  

 

	
Primary Servicer

	  	
Primary Servicer Name

	  	
Servicing Fee %

	  	
Servicing Fee—Flatdollar

	  	
Servicing Advance Methodology

	  	
Originator

	  	
Loan Group

	  	
Loan Number

	  	
sellernumber

	  	
Amortization Type

	  	
Lien Position

	  	
HELOC Indicator

	  	
Loan Purpose

	  	
Cash Out Amount

	  	
Total Origination and Discount Points

	  	
Covered/High Cost Loan Indicator

	  	
Relocation Loan Indicator

	
1000938

	  	
Select Portfolio Servicing

	  	
0.002500

	  	  	  	  	  	
Sterling Savings Bank

	  	  	  	
1000000556

	  	
212432

	  	
1

	  	
1

	  	
0

	  	
9

	  	  	  	  	  	  	  	  
	
1000938

	  	
Select Portfolio Servicing

	  	
0.002500

	  	  	  	  	  	
Sterling Savings Bank

	  	  	  	
1000000853

	  	
212204

	  	
1

	  	
1

	  	
0

	  	
7

	  	  	  	  	  	  	  	  
	
1000938

	  	
Select Portfolio Servicing

	  	
0.002500

	  	  	  	  	  	
Sterling Savings Bank

	  	  	  	
1000000858

	  	
223208

	  	
1

	  	
1

	  	
0

	  	
7

	  	  	  	  	  	  	  	  
	
1000938

	  	
Select Portfolio Servicing

	  	
0.002500

	  	  	  	  	  	
Sterling Savings Bank

	  	  	  	
1000000878

	  	
222836

	  	
1

	  	
1

	  	
0

	  	
7

	  	  	  	  	  	  	  	  
	
1000938

	
  

	
Select Portfolio Servicing

	
  

	
0.002500

	
  

	  	
  

	  	
  

	
Sterling Savings Bank

	
  

	  	
  

	
1000000932

	
  

	
226409

	
  

	
1

	
  

	
1

	
  

	
0

	
  

	
9

	
  

	  	
  

	  	  	  	  	 

	
Primary Servicer

	  	
Broker Indicator

	  	
Channel

	  	
Escrow Indicator

	  	
Senior Loan

Amount(s)

	  	
Loan Type of Most

Senior Lien

	  	
Hybrid Period of

Most Senior Lien (in

months)

	  	
Neg Am Limit of

Most Senior Lien

	  	
Junior Mortgage

Balance

	  	
Origination Date of

Most Senior Lien

	  	
Origination Date

	  	
Original Loan

Amount

	  	
Original Interest

Rate

	  	
Original

Amortization Term

	  	
Original Term to

Maturity

	  	
First Payment Date

of Loan

	  	
Interest Type

Indicator

	
1000938

	  	  	  	
1

	  	
4

	  	
0

	  	  	  	  	  	  	  	
207000.00

	  	  	  	
20110223

	  	
913000.00

	  	
0.052500

	  	
360

	  	
360

	  	
20110401

	  	
1

	
1000938

	  	  	  	
1

	  	
4

	  	
0

	  	  	  	  	  	  	  	
0.00

	  	  	  	
20110517

	  	
650000.00

	  	
0.052500

	  	
360

	  	
360

	  	
20110701

	  	
1

	
1000938

	  	  	  	
1

	  	
4

	  	
0

	  	  	  	  	  	  	  	
0.00

	  	  	  	
20110620

	  	
637500.00

	  	
0.053750

	  	
360

	  	
360

	  	
20110801

	  	
1

	
1000938

	  	  	  	
1

	  	
4

	  	
0

	  	  	  	  	  	  	  	
0.00

	  	  	  	
20110523

	  	
432000.00

	  	
0.052500

	  	
360

	  	
360

	  	
20110701

	  	
1

	
1000938

	
  

	  	
  

	
1

	
  

	
4

	
  

	
0

	
  

	  	
  

	  	
  

	  	
  

	
0.00

	
  

	  	
  

	
20110722

	
  

	
805000.00

	
  

	
0.052500

	
  

	
360

	
  

	
360

	
  

	
20110901

	
  

	
1

	
Primary Servicer

	  	
Original Interest

Only Term

	  	
Buy Down Period

	  	
HELOC Draw Period

	  	
Current Loan

Amount

	  	
Current Interest

Rate

	  	
Current Payment

Amount Due

	  	
Interest Paid

Through Date

	  	
Current Payment

Status

	  	
Index Type

	  	
ARM Look-back

Days

	  	
Gross Margin

	  	
ARM Round Flag

	  	
ARM Round Factor

	  	
Initial Fixed Rate

Period

	  	
Initial Interest Rate

Cap (Change Up)

	  	
Initial Interest Rate

Cap (Change Down)

	
1000938

	  	
0

	  	
0

	  	  	  	
906647.41

	  	
0.052500

	  	
5041.62

	  	
20110901

	  	
0

	  	
0

	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	  	
0

	  	
0

	  	  	  	
647753.49

	  	
0.052500

	  	
3589.32

	  	
20110901

	  	
0

	  	
0

	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	  	
0

	  	
0

	  	  	  	
636068.10

	  	
0.053750

	  	
3569.82

	  	
20110901

	  	
0

	  	
0

	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	  	
0

	  	
0

	  	  	  	
430506.91

	  	
0.052500

	  	
2385.52

	  	
20110901

	  	
0

	  	
0

	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	
  

	
0

	
  

	
0

	
  

	  	
  

	
804076.64

	
  

	
0.052500

	
  

	
4445.24

	
  

	
20110901

	
  

	
0

	
  

	
0

	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	 

	
Primary Servicer

	  	
Subsequent Interest

Rate Reset Period

	  	
Subsequent Interest

Rate Cap (Change Down)

	  	
Subsequent Interest

Rate Cap (Change

Up)

	  	
Lifetime Maximum

Rate (Ceiling)

	  	
Lifetime Minimum

Rate (Floor)

	  	
Negative

Amortization Limit

	  	
Initial Negative

Amortization Recast

Period

	  	
Subsequent

Negative

Amortization Recast

Period

	  	
Initial Fixed

Payment Period

	  	
Subsequent

Payment Reset

Period

	  	
Initial Periodic

Payment Cap

	  	
Subsequent

Periodic Payment

Cap

	  	
Initial Minimum

Payment Reset

Period

	  	
Subsequent

Minimum Payment

Reset Period

	  	
Option ARM

Indicator

	  	
Options at Recast

	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
0

	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
0

	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
0

	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
0

	  	  
	
1000938

	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	
0

	
  

	 

	
Primary Servicer

	  	
Initial Minimum

Payment

	  	
Current Minimum

Payment

	  	
Prepayment Penalty

Calculation

	  	
Prepayment Penalty

Type

	  	
Prepayment Penalty

Total Term

	  	
Prepayment Penalty

Hard Term

	  	
Primary Borrower ID

	  	
Number of

Mortgaged

Properties

	  	
Total Number of

Borrowers

	  	
Self-employment

Flag

	  	
Current ‘Other’

Monthly Payment

	  	
Length of

Employment:

Borrower

	  	
Length of

Employment: Co-

Borrower

	  	
Years in Home

	  	
FICO Model Used

	  	
Most Recent FICO

Date

	
1000938

	  	  	  	  	  	  	  	  	  	
0

	  	  	  	
281

	  	
1

	  	
2

	  	
0

	  	  	  	
7.00

	  	
12.60

	  	
3.70

	  	
1

	  	
20110825

	
1000938

	  	  	  	  	  	  	  	  	  	
0

	  	  	  	
214

	  	
1

	  	
2

	  	
1

	  	  	  	
9.50

	  	
6.00

	  	
0.00

	  	
1

	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	
0

	  	  	  	
415

	  	
3

	  	
1

	  	
1

	  	  	  	
3.00

	  	  	  	
0.00

	  	
1

	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	
0

	  	  	  	
290

	  	
1

	  	
2

	  	
0

	  	  	  	
10.90

	  	  	  	
0.00

	  	
1

	  	  
	
1000938

	
  

	  	
  

	  	
  

	  	
  

	  	
  

	
0

	
  

	  	
  

	
456

	
  

	
1

	
  

	
2

	
  

	
1

	
  

	  	
  

	
2.60

	
  

	  	
  

	
8.10

	
  

	
1

	
  

	 

	
Primary Servicer

	  	
Primary Wage

Earner Original

FICO: Equifax

	  	
Primary Wage

Earner Original

FICO: Experian

	  	
Primary Wage

Earner Original

FICO: TransUnion

	  	
Secondary Wage

Earner Original

FICO: Equifax

	  	
Secondary Wage

Earner Original

FICO: Experian

	  	
Secondary Wage

Earner Original

FICO: TransUnion

	  	
Original

Primary Borrower

FICO

	  	
Most Recent

Primary Borrower

FICO

	  	
Most Recent Co-

Borrower FICO

	  	
Most Recent FICO

Method

	  	
VantageScore:

Primary Borrower

	  	
VantageScore: Co-

Borrower

	  	
Most Recent

VantageScore

Method

	  	
VantageScore Date

	  	
Credit Report:

Longest Trade Line

	  	
Credit Report:

Maximum Trade

Line

	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	
718

	  	
727

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	
775

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	
732

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	
737

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	
773

	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	 

	
Primary Servicer

	  	
Credit Report:

Number of Trade

Lines

	  	
Credit Line Usage

Ratio

	  	
Most Recent 12-

month Pay History

	  	
Months Bankruptcy

	  	
Months Foreclosure

	  	
Primary Borrower

Wage Income

	  	
Co-Borrower Wage

Income

	  	
Primary Borrower

Other Income

	  	
Co-Borrower Other

Income

	  	
All Borrower Wage

Income

	  	
All Borrower Total

Income

	  	
4506-T Indicator

	  	
Borrower Income

Verification Level

	  	
Co-Borrower

Income Verification

	  	
Borrower

Employment

Verification

	  	
Co-Borrower

Employment

Verification

	
1000938

	  	  	  	  	  	
000000000000

	  	  	  	  	  	
10911.00

	  	
10433.00

	  	
0.00

	  	
15840.00

	  	
21344.00

	  	
37184.00

	  	
Y

	  	
5

	  	  	  	
3

	  	  
	
1000938

	  	  	  	  	  	
000000000000

	  	  	  	  	  	
20000.00

	  	
7466.55

	  	
0.00

	  	
0.00

	  	
27466.55

	  	
27466.55

	  	
Y

	  	
5

	  	  	  	
3

	  	  
	
1000938

	  	  	  	  	  	
000000000000

	  	  	  	  	  	
0.00

	  	  	  	
35615.00

	  	  	  	
0.00

	  	
35615.00

	  	
Y

	  	
5

	  	  	  	
3

	  	  
	
1000938

	  	  	  	  	  	
000000000000

	  	  	  	  	  	
9903.90

	  	  	  	
0.00

	  	  	  	
9903.90

	  	
9903.90

	  	
Y

	  	
5

	  	  	  	
3

	  	  
	
1000938

	
  

	  	
  

	  	
  

	
000000000000

	
  

	  	
  

	  	
  

	
19792.00

	
  

	  	
  

	
-742.00

	
  

	  	
  

	
19792.00

	
  

	
19050.00

	
  

	
Y

	
  

	
4

	
  

	  	
  

	
3

	
  

	 

	
Primary Servicer

	  	
Borrower Asset

Verification

	  	
Co-Borrower Asset

Verification

	  	
Liquid / Cash

Reserves

	  	
Monthly Debt All

Borrowers

	  	
Originator DTI

	  	
Fully Indexed Rate

	  	
Qualification

Method

	  	
Percentage of Down

Payment from

Borrower Own

Funds

	  	
City

	  	
State

	  	
Postal Code

	  	
Property Type

	  	
Occupancy

	  	
Sales Price

	  	
Original Appraised

Property Value

	  	
Original Property

Valuation Type

	
1000938

	  	
4

	  	  	  	
521169.52

	  	
8771.85

	  	
0.235904

	  	  	  	
1

	  	
0.000000

	  	
Mercer Island

	  	
WA

	  	
98040

	  	
7

	  	
1

	  	  	  	
1400000.00

	  	
3

	
1000938

	  	
4

	  	  	  	
192716.32

	  	
8214.08

	  	
0.299058

	  	  	  	
1

	  	
100.000000

	  	
Bainbridge Island

	  	
WA

	  	
98110

	  	
7

	  	
1

	  	
812500.00

	  	
900000.00

	  	
3

	
1000938

	  	
4

	  	  	  	
73702.67

	  	
9324.26

	  	
0.261807

	  	  	  	
1

	  	
100.000000

	  	
Spokane

	  	
WA

	  	
99206

	  	
1

	  	
1

	  	
850000.00

	  	
900000.00

	  	
3

	
1000938

	  	
4

	  	  	  	
69045.40

	  	
3916.82

	  	
0.395483

	  	  	  	
1

	  	
100.000000

	  	
Portland

	  	
OR

	  	
97229

	  	
1

	  	
1

	  	
540000.00

	  	
545000.00

	  	
3

	
1000938

	
  

	
4

	
  

	  	
  

	
58366.48

	
  

	
7217.50

	
  

	
0.378871

	
  

	  	
  

	
1

	
  

	
0.000000

	
  

	
Missoula

	
  

	
MT

	
  

	
59804

	
  

	
1

	
  

	
1

	
  

	  	
  

	
1015000.00

	
  

	
3

	
Primary Servicer

	  	
Original Property

Valuation Date

	  	
Original Automated

Valuation Model

(AVM) Model Name

	  	
Original AVM

Confidence Score

	  	
Most Recent

Property Value2

	  	
Most Recent

Property Valuation

Type

	  	
Most Recent

Property Valuation

Date

	  	
Most Recent AVM

Model Name

	  	
Most Recent AVM

Confidence Score

	  	
Original CLTV

	  	
Original LTV

	  	
Original Pledged

Assets

	  	
Mortgage Insurance

Company Name

	  	
Mortgage Insurance

Percent

	  	
MI: Lender or

Borrower Paid?

	  	
Pool Insurance Co.

Name

	  	
Pool Insurance Stop

Loss %

	
1000938

	  	
20101229

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
0.800000

	  	
0.652143

	  	
0

	  	  	  	
0

	  	  	  	  	  	  
	
1000938

	  	
20110511

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
0.800000

	  	
0.800000

	  	
0

	  	  	  	
0

	  	  	  	  	  	  
	
1000938

	  	
20110517

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
0.750000

	  	
0.750000

	  	
0

	  	  	  	
0

	  	  	  	  	  	  
	
1000938

	  	
20110513

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
0.800000

	  	
0.800000

	  	
0

	  	  	  	
0

	  	  	  	  	  	  
	
1000938

	
  

	
20110620

	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	
0.793103

	
  

	
0.793103

	
  

	
0

	
  

	  	
  

	
0

	
  

	  	
  

	  	
  

	 

	
Primary Servicer

	  	
MI Certificate

Number

	  	
Updated DTI

(Front-end)

	  	
Updated DTI

(Back-end)

	  	
Modification

Effective Payment

Date

	  	
Total Capitalized

Amount

	  	
Total Deferred

Amount

	  	
Pre-Modification

Interest (Note) Rate

	  	
Pre-Modification P&I

Payment

	  	
Pre-Modification

Initial Interest Rate

Change Downward

Cap

	  	
Pre-Modification

Subsequent Interest

Rate Cap

	  	
Pre-Modification

Next Interest Rate

Change Date

	  	
Pre-Modification I/O

Term

	  	
Forgiven Principal

Amount

	  	
Forgiven Interest

Amount

	  	
Number of

Modifications

	  	
Cash To/From Brrw at Closing

	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
1000938

	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	 

	
Primary Servicer

	  	
Brrw - Yrs at in Industry

	  	
CoBrrw - Yrs at in Industry

	  	
Junior Mortgage Drawn Amount

	  	
Maturity Date

	  	
Primary Borrower Wage Income (Salary)

	  	
Primary Borrower Wage Income (Bonus)

	  	
Primary Borrower Wage Income (Commission)

	  	
Co-Borrower Wage Income (Salary)

	  	
Co-Borrower Wage Income (Bonus)

	  	
Co-Borrower Wage Income (Commission)

	  	
Originator Doc Code

	  	
RWT Income Verification

	  	
RWT Asset Verification

	
1000938

	  	
8

	  	
23

	  	
207000.00

	  	
3/1/2041

	  	
10911.00

	  	  	  	  	  	
10433.00

	  	  	  	
15840.00

	  	
Full

	  	
2 years

	  	
2 Months

	
1000938

	  	
9.5

	  	
6

	  	
0.00

	  	
6/1/2041

	  	
20000.00

	  	  	  	  	  	
7466.55

	  	  	  	  	  	
Full

	  	
2 years

	  	
2 Months

	
1000938

	  	
3

	  	  	  	
0.00

	  	
7/1/2041

	  	  	  	  	  	  	  	  	  	  	  	  	  	
Full

	  	
2 years

	  	
2 Months

	
1000938

	  	
10.9

	  	  	  	
0.00

	  	
6/1/2041

	  	
9903.90

	  	  	  	  	  	  	  	  	  	  	  	
Full

	  	
2 years

	  	
2 Months

	
1000938

	
  

	
20

	
  

	  	
  

	
0.00

	
  

	
8/1/2041

	
  

	
19792.00

	
  

	  	
  

	  	
  

	  	
  

	  	
  

	  	
  

	
Full

	
  

	
2 years

	
  

	
2 Months

 

12

 

 

ATTACHMENT 2

PURCHASE AGREEMENT

 

(Please refer to Exhibit 10.17)EXHIBIT 10.19

 

EXECUTION VERSION

SEQUOIA MORTGAGE TRUST 2011-2

MORTGAGE PASS-THROUGH CERTIFICATES

MORTGAGE LOAN PURCHASE AND SALE AGREEMENT

 

Between

 

REDWOOD RESIDENTIAL ACQUISITION CORPORATION,

 

and

 

SEQUOIA RESIDENTIAL FUNDING, INC.

 

dated as of September 27, 2011

  

  

  

TABLE OF CONTENTS

 PAGE

	  	  	  
	
Section 1.

	
Representations and Warranties of RRAC and Sequoia

	
1

	
Section 2.

	
Additional Representations, Warranties and Agreements of RRAC

	
1

	
Section 3.

	
Arbitration and Representations and Warranties of RRAC With Respect to the Period of Time that RRAC Owned Mortgage Loans

	
5

	
Section 4.

	
Conveyance of Mortgage Loans

	
7

	
Section 5

	
Intention of Parties

	
8

	
Section 6.

	
Termination

	
9

	
Section 7.

	
Miscellaneous

	
9

	
Schedule A.

	
Mortgage Loan Schedule

	  

 

 

  

  

  

MORTGAGE LOAN PURCHASE AND SALE AGREEMENT

 

This Mortgage Loan Purchase and Sale Agreement (the “Agreement”) is made as of September 27, 2011, by and between Redwood Residential Acquisition Corporation, a Delaware corporation (“RRAC”), and Sequoia Residential Funding, Inc., a Delaware corporation (“Sequoia”).

WHEREAS, the parties hereto desire to provide for the purchase and sale of the Mortgage Loans on the date hereof (the “Closing Date”) in accordance with the terms and conditions set forth in this Agreement.

NOW, THEREFORE, the parties in consideration of good and valuable and fair consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, hereby agree as follows:

Section 1. Representations and Warranties of RRAC and Sequoia.  RRAC and Sequoia, each as to itself and not the other, hereby represents, warrants and agrees for the benefit of the other party that:

(a)           Authorization.  The execution, delivery and performance of this Agreement by it are within its respective powers and have been duly authorized by all necessary action on its part.

(b)           No Conflict.  The execution, delivery and performance of this Agreement will not violate or conflict with (i) its charter or bylaws, (ii) any resolution or other corporate action by it, or (iii) any decisions, statutes, ordinances, rulings, directions, rules, regulations, orders, writs, decrees, injunctions, permits, certificates or other requirements of any court or other governmental or public authority in any way applicable to or binding upon it, and will not result in or require the creation, except as provided in or contemplated by this Agreement, of any lien, mortgage, pledge, security interest, charge or encumbrance of any kind upon the Mortgage Loans.

(c)           Binding Obligation.  This Agreement has been duly executed by it and is its legally valid and binding obligation, enforceable against it in accordance with this Agreement’s terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally, and by general principles of equity.

Section 2. Additional Representations, Warranties and Agreements of RRAC.

(a)           Title and Mortgage Loan Schedule.  RRAC represents and warrants to, and agrees with, Sequoia that (i) on the Closing Date, RRAC will have good, valid and marketable title to the mortgage loans identified on Schedule A hereto (the “Mortgage Loans”), in each case free and clear of all liens, mortgages, deeds of trust, pledges, security interests, charges, encumbrances or other claims; (ii) upon transfer to Sequoia, Sequoia will receive good, valid and marketable title to all of the Mortgage Loans, in each case free and clear of any liens, mortgages, deeds of trust, pledges, security interests, charges, encumbrances or other claims; and (iii) (1) as to each Mortgage Loan that is not either (A) a Schedule 1B Mortgage Loan (as defined in the PHH AAR) or (B) a Mortgage Loan originated by First Republic Bank and purchased by RRAC from DLJ Mortgage Capital, Inc. (a “FRB DLJ Loan”), as of the date on which RRAC purchased such Mortgage Loan from First Republic Bank, PHH Mortgage Corporation, PrimeLending, a PlainsCapital Company (“PrimeLending”), Sterling Savings Bank (“Sterling”), SunTrust Mortgage, Inc. or Wells Fargo Bank, N.A., as applicable (each, an “Originator”), (2) as to each Schedule 1B Mortgage Loan, as of the date on which DLJ Mortgage Capital, Inc. purchased such Mortgage Loan from PHH Mortgage Corporation, and (3) as to each FRB DLJ Loan, as of the date on which DLJ Mortgage Capital, Inc. purchased such Mortgage Loan from First Republic Bank, the information set forth in the Mortgage Loan Schedule in the fields identified as “Document Type,” “Monthly Income” and “Assets Verified” is complete, true and correct in all material respects.

  

  

  

(b)           Additional Representations.  RRAC represents and warrants to, and agrees with, Sequoia that, as of the Closing Date:

(i)  As to each Mortgage Loan, the lien of the Mortgage is free and clear of all adverse claims, liens and encumbrances having priority over the first lien of the Mortgage subject only to (1) the lien of non-delinquent current real property taxes and assessments not yet due and payable, (2) covenants, conditions and restrictions, rights of way, easements and other matters of the public record as of the date of recording which are acceptable to mortgage lending institutions generally and which do not adversely affect the appraised value of the Mortgaged Property as set forth in such appraisal and (3) other matters to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property.

(ii) As to each Mortgage Loan relating to the PHH AAR or the WF AAR, the related Mortgaged Property is located in the U.S. or a territory of the U.S. and consists of a one- to four-unit residential property, which may include, but is not limited to, a single-family dwelling, townhouse, condominium unit, or unit in a planned unit development or, in the case of a Cooperative Loan (as defined in the PHH AAR), one or more leases or occupancy agreements.

(iii) To the actual knowledge of RRAC, each Mortgage Loan constitutes a “qualified mortgage” under Section 860G(a)(3)(A) of the Code and Treasury Regulation Section 1.860-2(a)(1).

(iv) As of the Closing Date, the most recent FICO score listed on the Mortgage Loan Schedule was no more than four months old.

  

2

  

(v) As to each Mortgage Loan relating to the STM AAR, the Sterling Agreement or the PrimeLending Agreement, no Mortgage Loan is subject to a lost note affidavit.

(vi) As to each Mortgage Loan relating to the PHH AAR, with respect to any hazard or mortgage insurance covering such a Mortgage Loan and the related Mortgaged Property, the Originator has not engaged in, and RRAC has no knowledge of the borrower’s having engaged in any act or omission that would impair the coverage of any such policy, the benefits of the endorsement, or the validity and binding effect of either, including without limitation, no unlawful fee, commission, kickback, or other unlawful compensation or value of any kind as has been or will be received, retained or realized by any attorney, firm or other person or entity, and no such unlawful items have been received, retained or realized by the Originator.

(vii) As to each Mortgage Loan relating to the WF AAR or FRB AAR, no fraud or material error, omission, misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place on the part or the Originator, any correspondent or mortgage broker involved in the origination of such Mortgage Loan, the borrower, or any appraiser or other party involved in the origination of the Mortgage Loan or in the application of any insurance in relation to such Mortgage Loan.

(viii) As to each Mortgage Loan relating to the WF AAR, no fees or expenses are or will become payable by the holder of the Mortgage to the trustee under the deed of trust, except in connection with a trustee’s sale after default by the borrower.

(ix) As to each Mortgage Loan relating to the STM AAR, the related Mortgage has been recorded and delivered to the Custodian with evidence of recording thereon, or if any such Mortgage has not been returned from the applicable recording office or has been lost, or if such public recording office retains the original recorded mortgage, a photocopy of such Mortgage certified by the Originator to be a true and complete copy of the original recorded Mortgage has been delivered to the Custodian.

(x) As to each Mortgage Loan relating to the STM AAR and the WF AAR, the related borrower has not been the subject of a bankruptcy proceeding in the seven years prior to origination of the Mortgage Loan, and no borrower previously owned a Mortgaged Property in the seven years prior to origination that was the subject of a foreclosure during the time the borrower was the owner of record.

(xi) As to each Mortgage Loan relating to the PHH AAR, the FRB AAR, the STM AAR, the Sterling AAR and the PrimeLending Agreement that is secured by a long-term residential lease (a “Lease”):

  

3

  

(A) The terms of the Lease expressly permit the mortgaging of the leasehold estate, the assignment of the Lease without the lessor’s consent (or the lessor’s consent has been obtained and is in the Mortgage File), and the acquisition by the holder of the Mortgage of the rights of the lessee upon foreclosure or assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially similar protection.

(B) The terms of the Lease do not allow the termination thereof upon the lessee’s default without the holder of the Mortgage being entitled to receive written notice, and opportunity to cure, such default or prohibit the holder of the Mortgage from being insured under the hazard insurance policy related to the Mortgaged Property.

(C) The original term of the Lease is not less than 15 years and the Lease does not terminate by its terms prior to at least five years from the maturity date of the Mortgage Loan.

(D) The Mortgaged Property is located in a jurisdiction in which the use of leasehold estates for residential properties is an accepted practice.

(c)            Security Interest Matters.  RRAC hereby represents and warrants for the benefit of Sequoia and the Trustee (as defined in the Pooling and Servicing Agreement, dated as of September 1, 2011 (as in effect on the date of execution hereof, the “Pooling and Servicing Agreement”) among Sequoia, as depositor, Wells Fargo Bank, N.A., as master servicer and securities administrator, and U.S. Bank National Association, as trustee) (as assignee of Sequoia):  (i) this Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Mortgage Loans in favor of Sequoia, which security interest is prior to all other Liens, and is enforceable as such as against creditors of and purchasers from RRAC; (ii) the Mortgage Notes constitute “instruments” within the meaning of the applicable UCC; (iii) RRAC, immediately prior to its transfer of Mortgage Loans under this Agreement, will own and have good, valid and marketable title to the Mortgage Loans free and clear of any Lien, claim or encumbrance of any Person; (iv) RRAC has received all consents and approvals required by the terms of the Mortgage Loans to the sale of the Mortgage Loans hereunder to Sequoia; (v) all original executed copies of each Mortgage Note that constitute or evidence the Mortgage Loans have been delivered to the Custodian (as assignee of Sequoia); (vi) RRAC has received a written acknowledgment from the Custodian that such Custodian is holding the Mortgage Notes that constitute or evidence the Mortgage Loans solely on behalf and for the benefit of Sequoia or its assignee; (vii) other than the security interest granted to Sequoia pursuant to this Agreement and security interests granted to lenders which will be automatically released on the Closing Date, RRAC has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Mortgage Loans; RRAC has not authorized the filing of and is not aware of any financing statements against it that include a description of collateral covering the Mortgage Loans other than any financing statement relating to the security interest granted to Sequoia hereunder or that will be automatically released upon the sale to Sequoia; (viii) RRAC is not aware of any judgment or tax lien filing against itself; and (ix) none of the Mortgage Notes that constitute or evidence the Mortgage Loans have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than Sequoia.

  

4

  

(d)           Cure, Repurchase or Substitution Obligation.  In the event of a breach of any of the representations and warranties of RRAC specified in this Section 2 that materially adversely affects the value of a Mortgage Loan or the interest therein of the Certificateholders (as assignees of Sequoia), RRAC will cure the breach, or repurchase or substitute for such Mortgage Loan pursuant to Section 2.04 of the Pooling and Servicing Agreement and Section 3 below.

In the event of a breach of any of the representations and warranties of PrimeLending under the Flow Mortgage Loan Purchase and Sale Agreement, dated as of January 30, 2011, between RRAC and Primelending, as amended by the Assignment of Representations and Warranties Agreement, dated September 27, 2011, by and among RRAC, Sequoia, the Trustee, and PrimeLending (the “PrimeLending Agreement”) that materially and adversely affects the value of a Mortgage Loan or the interest therein of the Certificateholders (as assignees of Sequoia), if PrimeLending is unable to cure, repurchase or substitute the related Mortgage Loan pursuant to the terms of the PrimeLending Agreement because PrimeLending is the subject of a Bankruptcy or insolvency proceeding or no longer in existence, then RRAC will cure the breach or repurchase or substitute such Mortgage Loan pursuant to Section 2.04 of the Pooling and Servicing Agreement and Section 3 below.

In the event of a breach of any of the representations and warranties of Sterling under the Flow Mortgage Loan Purchase and Sale Agreement, dated as of March 1, 2011, between RRAC and Sterling, as amended by the Assignment of Representations and Warranties Agreement, dated September 27, 2011, by and among RRAC, Sequoia, the Trustee, and Sterling (the “Sterling Agreement”) that materially and adversely affects the value of a Mortgage Loan or the interest therein of the Certificateholders (as assignees of Sequoia), if Sterling is unable to cure, repurchase or substitute the related Mortgage Loan pursuant to the terms of the Sterling Agreement because Sterling is the subject of a Bankruptcy or insolvency proceeding or no longer in existence, then RRAC will cure the breach or repurchase or substitute such Mortgage Loan pursuant to Section 2.04 of the Pooling and Servicing Agreement and Section 3 below.

Section 3. Arbitration and Representations and Warranties of RRAC with respect to the Period of Time that RRAC Owned Mortgage Loans.

(a)           RRAC hereby covenants and agrees that, if a breach of any representation and warranty set forth in Purchase Agreements with respect to the characteristics of a Mortgage Loan exists on the date hereof that materially and adversely affects the value of any Mortgage Loan or the interest Sequoia in any Mortgage Loan and such breach did not exist as of the date that RRAC purchased such Mortgage Loan, RRAC shall have a period of 60 days from the earlier of either discovery or receipt of written notice from Sequoia to RRAC of such breach within which to correct or cure such breach.  RRAC hereby covenants and agrees that if any breach cannot be corrected or cured within such 60 day period, then RRAC shall repurchase the related Mortgage Loan at the Repurchase Price not later than 90 days after its discovery or receipt of notice of such breach by wire transfer of immediately available funds to such account as Sequoia shall specify to RRAC.

  

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(b)           RRAC and Sequoia agree that the resolution of any controversy or claim arising out of or relating to an obligation or alleged obligation of RRAC to repurchase a Mortgage Loan or Mortgage Loans pursuant to Section 3(a) above shall be by Arbitration administered by the American Arbitration Association.  If any such controversy or claim has not been resolved to the satisfaction of both RRAC and Sequoia, either party may commence Arbitration to resolve the dispute; provided that a party may commence Arbitration with respect to one or more unresolved allegations only during the months of January, April, July and October, and all matters with respect to which Arbitration has been commenced in any such month shall be heard in a single Arbitration in the immediately following month or as soon as practicable thereafter; and provided further that if any Arbitration arising out of or relating to an obligation or alleged obligation of an Originator to repurchase a Mortgage Loan relating to the same representation and warranty has commenced and is continuing, then such Arbitration shall be joined with the Arbitration commenced hereunder.

(c)           To commence Arbitration, the moving party shall deliver written notice to the other party that it has elected to pursue Arbitration in accordance with this Section 3, provided that if RRAC has not responded to Sequoia's notification of a breach of a representation and warranty, Sequoia shall not commence Arbitration with respect to that breach before 60 days following such notification in order to provide RRAC with an opportunity to respond to such notification.  Within 10 Business Days after a party has provided notice that it has elected to pursue Arbitration, each party may submit the names of one or more proposed Arbitrators to the other party in writing.  If the parties have not agreed on the selection of an Arbitrator within five Business Days after the first such submission, then the party commencing Arbitration shall, within the next 5 Business Days, notify the American Arbitration Association in New York, New York and request that it appoint a single Arbitrator with experience in arbitrating disputes arising in the financial services industry.

(d)           It is the intention of the parties that Arbitration shall be conducted in as efficient and cost-effective a manner as is reasonably practicable, without the burden of discovery.  Accordingly, the Arbitrator will resolve the dispute on the basis of a review of the written correspondence between the parties (including any supporting materials attached to such correspondence) conveyed by the parties to each other in connection with the dispute prior to the delivery of notice to commence Arbitration; however, upon a showing of good cause, a party may request the Arbitrator to direct the production of such additional information, evidence and/or documentation from the parties that the Arbitrator deems appropriate.  If requested by the Arbitrator or any party, any hearing with respect to an Arbitration shall be conducted by video conference or teleconference except upon the agreement of both parties or the request of the Arbitrator.

  

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(e)           The finding of the Arbitrator shall be final and binding upon the parties. Judgment upon any arbitration award rendered may be entered and enforced in any court of competent jurisdiction. The costs of the Arbitrator shall be shared equally between both parties.   Each party, however, shall bear its own attorneys fees and costs in connection with the Arbitration.

(f)           The following capitalized terms shall have the meaning specified below:

Arbitration: Arbitration in accordance with the then governing Commercial Arbitration Rules of the American Arbitration Association  (“AAA”) and administered by the AAA,  which shall be conducted in New York, New York or other place  mutually acceptable to the parties to the arbitration.

Arbitrator:  A person who is not affiliated with RRAC, Sequoia or any Originator, who is a member of the American Arbitration Association.

Repurchase Price:  With respect to any Mortgage Loan, a price equal to (i) the unpaid principal balance of such Mortgage Loan plus (ii) interest on such unpaid principal balance at the mortgage interest rate from and including the last Due Date through which interest has been paid by or on behalf of the Mortgagor up to the Due Date following the date of repurchase, minus (iii) amounts received in respect of such repurchased Mortgage Loan which are being held in the Collection Account for distribution in connection with such Mortgage Loan.

Section 4.    Conveyance of Mortgage Loans.

(a)           Mortgage Loans.  In return for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, RRAC, concurrently with the execution and delivery hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to Sequoia, without recourse, all of RRAC’s right, title and interest in and to the Mortgage Loans, including the related Mortgage Documents and all principal and interest received by RRAC on or with respect to the Mortgage Loans after September 1, 2011 (the “Cut-off Date”) (other than Scheduled Payments due on or before such date), and all such payments due after such date but received on or prior to such date and intended by the related Mortgagors to be applied after such date, all insurance policies with respect to the Mortgage Loans, and all proceeds of the foregoing.

Sequoia shall pay the purchase price for the Mortgage Loans by delivering to RRAC on the Closing Date cash in an amount mutually agreed upon by RRAC and Sequoia.

  

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On or prior to the Closing Date, RRAC shall deliver or cause to be delivered to Sequoia or, at Sequoia’s direction, to the Custodian, the Trustee Mortgage File for each Mortgage Loan in the manner set forth in Article 3 of the Custodial Agreement as in effect on the date of execution hereof, by and among Wells Fargo Bank, N.A., as custodian and master servicer, RRAC, as seller, Sequoia, as depositor, and U.S. Bank National Association, as trustee.  

(b)           Limited Remedies.  Sequoia acknowledges and agrees that it shall have no recourse to RRAC with respect to any Defective Mortgage Loan except as provided in Section 2(d) and Section 3 and that Sequoia’s remedies with respect to any other Defective Mortgage Loans shall be exercised with respect to the Originator of such Defective Mortgage Loan as set forth in the (i) Assignment, Assumption and Recognition Agreement, dated as of September 27, 2011 (the “PHH AAR”), among RRAC, Sequoia, the Trustee, and PHH Mortgage Corporation, (ii) either of the Assignment, Assumption and Recognition Agreements, dated as of September 27, 2011, among RRAC, Sequoia, the Trustee, and First Republic Bank (together, the “FRB AAR”), as applicable, (iii) the PrimeLending Agreement, (iv) the Sterling Agreement, (v) the Assignment, Assumption and Recognition Agreement, dated September 27, 2011 (the “STM AAR”), by and among RRAC, Sequoia, the Trustee, and SunTrust Mortgage, Inc. or (v) the Assignment, Assumption and Recognition Agreement, dated September 27, 2011 (the “WF AAR”), by and among RRAC, Sequoia, the Trustee, and WF, as applicable.

Section 5.    Intention of Parties.  The conveyance of the Mortgage Loans and all other property hereunder by RRAC as contemplated hereby is absolute and is intended by the parties to constitute a sale of the Mortgage Loans and such other property by RRAC to Sequoia.  It is, further, not intended that such conveyance be the grant of a security interest to secure a loan or other obligation.  However, in the event that, notwithstanding the intent of the parties, the Mortgage Loans and the other property described in Section 3(a) are held to be the property of RRAC, or if for any other reason this Agreement is held or deemed to create a security interest in the Mortgage Loans and such other property, then this Agreement shall constitute a security agreement, and the conveyance provided for in Section 3(a) shall be deemed to be a grant by RRAC to Sequoia of, and RRAC hereby grants to Sequoia, to secure all of RRAC’s obligations hereunder, a security interest in all of RRAC’s right, title and interest, whether now owned or hereafter acquired, in and to (i) the Mortgage Loans, including the Mortgage Notes, the Mortgages, and the right to all payments of principal and interest received on or with respect to the Mortgage Loans after the Cut-off Date (other than Scheduled Payments due on or before such date), and all such payments due after such date but received on or prior to such date and intended by the related Mortgagors to be applied after such date, (ii) all of RRAC’s right, title and interest, if any, in and to all amounts from time to time credited to and the proceeds of any Custodial Accounts or any Escrow Account established with respect to the Mortgage Loans, (iii) with respect to the Mortgage Loans, to the extent set forth in the FRB AAR, the PHH AAR, the PrimeLending Agreement, the Sterling Agreement, the STM AAR, the WF AAR or the Assignment, Assumption and Recognition Agreement, dated September 27, 2011, by and among RRAC, Sequoia, the Trustee, Select Portfolio Servicing, Inc. and DLJ Mortgage Capital, Inc., RRAC’s rights and obligations under the applicable Servicing Agreement and all of RRAC’s rights under the Mortgage Loan Purchase and Sale Agreement, (iv) all of RRAC’s right, title and interest, if any, in REO Property and the proceeds thereof, (v) all of RRAC’s rights under any Insurance Policies related to the Mortgage Loans, (vi) RRAC’s security interest in any collateral pledged to secure the Mortgage Loans, including the Mortgaged Properties, and (vii) all proceeds of the conversion, voluntary or involuntary, of any of the foregoing into cash or other liquid assets, including, without limitation, all Insurance Proceeds, Liquidation Proceeds and condemnation awards.

  

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RRAC and Sequoia shall, to the extent consistent with this Agreement, take such actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of this Agreement.  RRAC shall arrange for filing any Uniform Commercial Code financing statements and continuation statements in connection with such security interest.

Section 6.    Termination.

Notwithstanding any termination of this Agreement or the completion of all sales contemplated hereby, the representations, warranties and agreements in Sections 1 and 2 hereof shall survive and remain in full force and effect.

Section 7.    Miscellaneous.

(a)           Amendments, Etc.  No rescission, modification, amendment, supplement or change of this Agreement shall be valid or effective unless in writing and signed by all of the parties to this Agreement.  No amendment of this Agreement may modify or waive the representations, warranties and agreements set forth in Sections 1 and 2 hereof.

(b)           Binding Upon Successors, Etc.  This Agreement shall bind and inure to the benefit of and be enforceable by RRAC and Sequoia, and the respective successors and assigns thereof.  The parties hereto acknowledge that Sequoia is acquiring the Mortgage Loans for the purpose of selling, transferring, assigning, setting over and otherwise conveying them to the Trustee, pursuant to the Pooling and Servicing Agreement.  RRAC acknowledges and consents to the assignment to the Trustee by Sequoia of all of Sequoia's rights against RRAC hereunder in respect of the Mortgage Loans sold to Sequoia and that the enforcement or exercise of any right or remedy against RRAC hereunder by the Trustee or to the extent permitted under Section 2.04 of the Pooling and Servicing Agreement shall have the same force and effect as if enforced and exercised by Sequoia directly.

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

  

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(d)           Governing Law.  This Agreement and all questions relating to its validity, interpretation, performance and enforcement shall be governed by and construed, interpreted and enforced in accordance with the laws of the State of New York notwithstanding any law, rule, regulation, or other conflict-of-law provisions to the contrary.

 

 

(e)           Headings.  The headings of the several parts of this Agreement are inserted for convenience of reference and are not intended to be a part of or affect the meaning or interpretation of this Agreement.

(f)           Definitions.  Capitalized terms not otherwise defined herein have the meanings ascribed to such terms in the Pooling and Servicing Agreement as in effect on the date of execution hereof.

(g)           Nonpetition Covenant.  Until one year plus one day shall have elapsed since the termination of the Pooling and Servicing Agreement in accordance with its terms, RRAC shall not petition or otherwise invoke the process of any court or government authority for the purpose of commencing or sustaining a case against Sequoia under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of Sequoia or any substantial part of its property, or ordering the winding up or liquidation of the affairs of Sequoia.

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IN WITNESS WHEREOF, each party has caused this Mortgage Loan Purchase and Sale Agreement to be executed by its duly authorized officer or officers as of the day and year first above written.

 

	  	
REDWOOD RESIDENTIAL ACQUISITION CORPORATION

	  	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	  	  	  
	  	  	  
	  	  	  
	  	
SEQUOIA RESIDENTIAL FUNDING, INC.

	  	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  

  

  

  

SCHEDULE A

MORTGAGE LOAN SCHEDULE

Refer to Schedule A of Exhibit 10.1.

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