Document:

pfsi_Ex10_4

		
			EXHIBIT 10.4
		

		
			FIRST AMENDMENT
		

		
			TO
		

		
			EXCHANGE AGREEMENT
		

		
			This FIRST AMENDMENT TO EXCHANGE AGREEMENT (the  “Amendment”), dated as of November 16, 2017, is entered into by and among PennyMac Financial Services, Inc. (the “Corporation”),  Private National Mortgage Acceptance Company, LLC (the “Company”), BlackRock Mortgage Ventures, LLC (“BlackRock”), HC Partners LLC (“HC Partners”), Kurland Family Investments, LLC (“KFI”) and Stanford L. Kurland.
		

		
			RECITALS
		

		
			WHEREAS, the Corporation, the Company and the Company Unitholders are parties to that certain Exchange Agreement, dated as of May 8, 2013 (the “Existing Exchange Agreement” and, as amended by the Amendment, the “Exchange Agreement”).  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Exchange Agreement.
		

		
			WHEREAS, the Corporation and the Company desire to amend the terms of Section 2.1 of the Existing Exchange Agreement.
		

		
			WHEREAS, Section 4.13 of the Existing Exchange Agreement requires the written consent of the Corporation, the Company and Company Unitholders holding at least 75% of the then outstanding Company Units (excluding Company Units held by the Corporation) to amend the terms of Section 2.1 of the Existing Exchange Agreement.
		

		
			WHEREAS, BlackRock, HC Partners, KFI and Mr. Kurland currently hold in excess of 75% of the outstanding Company Units (excluding Company Units held by the Corporation).
		

		
			WHEREAS, the Corporation, the Company, BlackRock, HC Partners, KFI and Mr. Kurland (collectively, the “Required Parties”) have agreed, subject to the terms and conditions of this Amendment, that Section 2.1 of the Existing Exchange Agreement be amended to reflect certain agreed upon revisions thereto.
		

		
			NOW, THEREFORE, in consideration of the mutual premises and mutual obligations set forth herein, the Required Parties hereby agree that the Existing Exchange Agreement is amended as follows:
		

		
			SECTION 1.     Amendment.  Section 2.1(b)(i)  is hereby amended by deleting it in its entirety and replacing it with the following:
		

		
			(i)     The Corporation shall have the right to require each Company Unitholder to Exchange all of such Company Unitholder’s Company Units and shares of Class B Common Stock in consideration for the issuance by the Corporation to such Company Unitholder of a number of shares of Class A
		

		
			
		

		
			

		 

		

			-1-

		

 

		

		
			Common Stock that is equal to the product of the number of Company Units surrendered multiplied by the Exchange Rate (or, at the election of the Corporation pursuant to clause (II) of Section 2.1(b)(ii) below, a rate equal to 110% of the Exchange Rate) under any of the following circumstances: (A) in connection with a Change of Control, and (B) from or after the time when no Member (other than the Corporation) holds a number of outstanding Class A Units greater than three percent (3%) of the number of Class A Units outstanding immediately following the closing of the IPO (as defined in the LLC Agreement) and related purchase of Class A Units by the Corporation with the proceeds therefrom.
		

		
			SECTION 2.     Conditions Precedent.  This Amendment shall become effective as of the date first set forth above (the “Amendment Effective Date”) subject to the satisfaction of the following conditions precedent:
		

		
			2.1     Delivered Documents.  On the Amendment Effective Date, each party shall have received the following documents, each of which shall be satisfactory to such party in form and substance:
		

		
			(a)     this Amendment, executed and delivered by duly authorized officers of each of the Required Parties; and
		

		
			(b)     such other documents as such party or counsel to such party may reasonably request.
		

		
			SECTION 3.     Representations and Warranties.  Each party represents that it is in compliance in all material respects with all the terms and provisions set forth in the Existing Exchange Agreement on its part to be observed or performed.
		

		
			SECTION 4.     Limited Effect.  Except as expressly amended and modified by this Amendment, the Existing Exchange Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms.
		

		
			SECTION 5.     GOVERNING LAW.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
		

		
			SECTION 6.     Counterparts.  This Amendment may be executed in one or more counterparts and by different parties hereto on separate counterparts, each of which, when so executed, shall constitute one and the same agreement.
		

		
			SECTION 7.     Conflicts.  The parties hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of the Existing Exchange Agreement, the provisions of this Amendment shall control.
		

		
			[SIGNATURE PAGES FOLLOWS]
		

		
			 
		

		
			 
		

		
			

		 

		

			-2-

		

 

		

		
			IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PENNYMAC FINANCIAL SERVICES, 
INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ David A. Spector

				
	
					
						 

					
					
						 

					
					
						Name: David A. Spector

				
	
					
						 

					
					
						 

					
					
						Title:   President and Chief Executive

				
	
					
						 

					
					
						 

					
					
						Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						PRIVATE NATIONAL MORTGAGE
ACCEPTANCE COMPANY, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Andrew S. Chang

				
	
					
						 

					
					
						 

					
					
						Name: Andrew S. Chang

				
	
					
						 

					
					
						 

					
					
						Title:   Senior Managing Director and 

				
	
					
						 

					
					
						 

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BLACKROCK MORTGAGE VENTURES, 
LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Daniel Waltcher

				
	
					
						 

					
					
						 

					
					
						Name: Daniel Waltcher

				
	
					
						 

					
					
						 

					
					
						Title:   Managing Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						HC PARTNERS LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jennifer Stier

				
	
					
						 

					
					
						 

					
					
						Name: Jennifer Stier

				
	
					
						 

					
					
						 

					
					
						Title:   Manager

				

		
			 
		

		
			
		

		

		 

		

			Signature Page to First Amendment to

		

		

			Exchange Agreement

		

 

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						KURLAND FAMILY INVESTMENTS, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stanford L. Kurland

				
	
					
						 

					
					
						 

					
					
						Name: Stanford L. Kurland

				
	
					
						 

					
					
						 

					
					
						Title:   Manager

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						STANFORD L. KURLAND

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stanford L. Kurland

				
	
					
						 

					
					
						 

					
					
						Name: Stanford L. Kurland

				

		
			 
		

		 

		

			Signature Page to First Amendment to

		

		

			Exchange Agreementpfsi_Ex10_59

			
					
						 

					
					
						EXHIBIT 10.59

				
	
					
						 

					
					
						 

				
	
					
						PLS REGULAR FACILITY

					
					
						EXECUTION

				

		
			 
		

		
			AMENDMENT NO. 2  TO
		

		
			THIRD AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT
		

		
			Amendment No. 2 to Third Amended and Restated Master Repurchase Agreement, dated as of December 20, 2017 (this “Amendment”), among Credit Suisse First Boston Mortgage Capital LLC (the “Administrative Agent”), Credit Suisse AG, a company incorporated in Switzerland, acting through its Cayman Islands Branch (a “Committed Buyer” and a “Buyer”), Alpine Securitization LTD (a “Buyer”), PennyMac Loan Services, LLC (the “Seller”) and Private National Mortgage Acceptance Company, LLC  (the  “Guarantor”).
		

		
			RECITALS
		

		
			The Administrative Agent,  the Buyers, the Seller and the Guarantor are parties to that certain Third Amended and Restated Master Repurchase Agreement, dated as of April 28, 2017 (as amended by Amendment No. 1 dated as of June 1, 2017,  the “Existing Repurchase Agreement”, and as amended by this Amendment, the “Repurchase Agreement”) and the related Second Amended and Restated Pricing Side Letter, dated as of April 28, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the “Pricing Side Letter”).  The Guarantor is party to that certain Amended and Restated Guaranty (as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty”), dated as of April 28, 2017,  by the Guarantor in favor of Administrative Agent.  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Repurchase Agreement and Guaranty, as applicable.
		

		
			The Administrative Agent, the Buyers, the Seller and the Guarantor have agreed, subject to the terms and conditions of this Amendment, that the Existing Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Repurchase Agreement.  As a condition precedent to amending the Existing Repurchase Agreement, the Administrative Agent has required the Guarantor to ratify and affirm the Guaranty on the date hereof.
		

		
			Accordingly, the Administrative Agent, the Buyers, the Seller and the Guarantor hereby agree, in consideration of the mutual promises and mutual obligations set forth herein, that the Existing Repurchase Agreement is hereby amended as follows:
		

		
			SECTION 1.    Definitions.  Section 2 of the Existing Repurchase Agreement is hereby amended by:
		

		
			1.1    adding the following definitions of “Aged 360 GNMA EBO”  and “Submitted GNMA EBO” in proper alphabetical order:
		

		
			“Aged 360 GNMA EBO” means a GNMA EBO which has been subject to a Transaction hereunder for a period of greater than 360 days.
		

		
			“Submitted GNMA EBO” means a GNMA EBO which is subject to a Transaction hereunder and for which a claim has been submitted to HUD.
		

		
			
		

		
			

		 

		

			-1-

		

 

		

		
			SECTION 2.    Program; Initial of Transactions. Section 3 of the Existing Repurchase Agreement is hereby amended by deleting subsection (g) thereof in its entirety and replacing it with the following:
		

		
			(g)  Agent shall act as agent solely with respect to performance of the following duties, in each case, on behalf of Buyers to the extent contemplated by Section 14.hh: (i) receiving from HUD and VA all amounts with respect to all Purchased Mortgage Loans, (ii) maintaining the GNMA Account, (iii) taking such actions as Agent deems appropriate to administer the GNMA Account, and (iv) acting as mortgagee of record with respect to each Submitted GNMA EBO and Aged 360 GNMA EBO pursuant to Section 14.hh hereof.  The Agent shall have no duties or responsibilities except those expressly set forth in this Section 3.g.
		

		
			SECTION 3.    Covenants. Section 14 of the Existing Repurchase Agreement is hereby amended by deleting subsection (hh) thereof in its entirety and replacing it with the following:
		

		
			hh.  GNMA EBO.
		

		
			(a)  With respect to any GNMA EBO that is not (i) an Aged 360 GNMA EBO or (ii) a Submitted GNMA EBO, Seller shall remain, on the FHA Connect system, the mortgagee of record with respect to such GNMA EBO.  With respect to any Purchased Mortgage Loan that is an Aged 360 GNMA EBO and prior to any GNMA EBO becoming a Submitted GNMA EBO, Seller shall transfer the mortgagee of record on the FHA Connect system to Agent; provided, further, following the occurrence of an Event of Default, Seller shall transfer the mortgagee of record on the FHA Connect system to Agent with respect to each Purchased Mortgage Loan that is a GNMA EBO.  Notwithstanding this subsection (a), in the event of receipt of any proceeds from HUD with respect to any Purchased Mortgage Loan that is a GNMA EBO, Seller shall remit such amounts within four (4) Business Days to the GNMA Account pursuant to the definition of “GNMA Account”. To the extent HUD deducts any amounts owing by Seller to HUD, Seller shall deposit, within four (4) Business Days following notice or knowledge of such deduction by HUD, such deducted amounts into the applicable GNMA Account.  On each Price Differential Payment Date, Seller shall instruct Securities Intermediary to remit all amounts on deposit in any GNMA Account to the Securities Account for distribution in accordance with the Securities Account Control Agreement.
		

		
			(b)  With respect to each Aged 360 GNMA EBO and Submitted GNMA EBO, Seller shall cause Agent to be designated as mortgagee of record on the FHA Connect system under mortgagee number 34522, and shall submit all claims to HUD under such applicable number for remittance of amounts to the GNMA Account pursuant to the definition of “GNMA Account”.  On each Price Differential Payment Date, Seller shall instruct Securities Intermediary to remit all amounts on deposit in any GNMA Account to the Securities Account for distribution in accordance with the Securities Account Control Agreement.
		

		
			
		

		
			

		 

		

			-2-

		

 

		

		
			(c)  Seller shall cooperate and do all things deemed necessary or appropriate by Agent to effectuate the steps as contemplated in this Section 14.hh.
		

		
			SECTION 4.    Conditions Precedent.  This Amendment shall become effective as of the date hereof (the “Amendment Effective Date”),  subject to the satisfaction of the following conditions precedent:
		

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

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

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

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

		
			SECTION 5.    Representations and Warranties.  Seller hereby represents and warrants to the Administrative Agent and Buyers that it is in compliance with all the terms and provisions set forth in the Repurchase Agreement on its part to be observed or performed, and that no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 13 of Repurchase Agreement.
		

		
			SECTION 6.    Limited Effect.  Except as expressly amended and modified by this Amendment, the Existing Repurchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms.
		

		
			SECTION 7.    Counterparts.  This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment in Portable Document Format (PDF) or by facsimile shall be effective as delivery of a manually executed original counterpart of this Amendment.
		

		
			SECTION 8.    Severability. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.
		

		
			SECTION 9.   GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.
		

		
			
		

		
			

		 

		

			-3-

		

 

		

		
			SECTION 10.  Reaffirmation of Guaranty.  The Guarantor hereby ratifies and affirms all of the terms, covenants, conditions and obligations of the Guaranty and acknowledges and agrees that the term “Obligations” as used in the Guaranty shall apply to all of the Obligations of the Seller to Administrative Agent and Buyers under the Repurchase Agreement and related Program Agreements, as amended hereby.
		

		
			[Remainder of page intentionally left blank]
		

		
			 
		

		
			 
		

		
			

		 

		

			-4-

		

 

		

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

			
					
						 

					
					
						 

				
	
					
						 

					
					
						CREDIT SUISSE FIRST BOSTON MORTGAGE
CAPITAL LLC, as Administrative Agent

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dominic Obaditch

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Dominic Obaditch

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

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

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Patrick J. Hart

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Patrick J. Hart

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Elie Chau

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Elie Chau

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ALPINE SECURITIZATION LTD, as a Buyer, by
Credit Suisse AG, New York Branch as Attorney-
in-Fact

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Patrick J. Hart

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Patrick J. Hart

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Elie Chau

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Elie Chau

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

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

		

 

	
					
						

					
						 

					
					
						PENNYMAC LOAN SERVICES, LLC, as Seller

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Pamela Marsh

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Pamela Marsh

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Managing Director, Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PRIVATE NATIONAL MORTGAGE
ACCEPTANCE COMPANY, LLC, as
Guarantor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Pamela Marsh

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Pamela Marsh

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Managing Director, Treasurer

				

		
			 
		

		 

		

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

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