Document:

Exhibit 10.11

 

 

AMENDMENT NO. 2 TO

MASTER REPURCHASE AGREEMENT

 

THIS AMENDMENT NO. 2 (the “Amendment”) is made and entered into as of November 1, 2011 by and between Bank of America, N.A. (“Buyer”) and Home Loan Center, Inc. (“Seller”).  This Amendment amends and clarifies that certain Master Repurchase Agreement between Buyer and Seller dated May 1, 2009 (as may be amended from time to time, the “Repurchase Agreement”).  Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Repurchase Agreement.

 

R E C I T A L S

 

Pursuant to the Repurchase Agreement, Buyer and Seller have agreed to engage in Transactions whereby Seller may, from time to time, sell to Buyer certain residential Mortgage Loans (including the servicing rights related thereto) and/or other mortgage related assets and interests, against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to sell to Seller such Purchased Assets at a date certain or on demand, against the transfer of funds by Seller.  Buyer and Seller hereby agree that the Repurchase Agreement shall be amended as provided herein.

 

In consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller hereby agree as follows:

 

1.                                       Section 13.2 - Termination.  Buyer and Seller agree that Section 13.2 shall be deleted in its entirety and replaced with the following:

 

“13.2                     Termination.

 

(a)                                  Buyer may, with or without cause, terminate this Agreement at any time by providing notice to Seller.  Seller acknowledges and understands that Buyer is under no obligation whatsoever to continue the term of this Agreement for any period of time and may terminate this Agreement at any time for any reason.  By way of example but not limitation, Buyer may immediately terminate this Agreement by providing notice to Seller if (i) this Agreement or any Transaction is deemed by a court or by statute to not constitute a “repurchase agreement,” a “securities contract,” or a “master netting agreement,” as each such term is defined in the Bankruptcy Code, (ii) payments or security offered hereunder are deemed by a court or by statute not to constitute “settlement payments” or “margin payments” as each such term is defined in the Bankruptcy Code, (iii) this Agreement or any Transaction is deemed by a court or by statute not to constitute an agreement to provide financial accommodations as described in Bankruptcy Code Section 365(c)(1) or (iv) Buyer determines that there has been fraud, misrepresentation or any similar intentional conduct on behalf of Seller, its officers, directors, employees, agents and/or its representatives with respect to any of Seller’s obligations, responsibilities or actions undertaken in connection with this Agreement.

 

 

(b)                                 Upon termination of this Agreement for any reason, all outstanding amounts due to Buyer under the Principal Agreements shall be immediately due and payable without notice to Seller and without presentment, demand, protest, notice of protest or dishonor, or other notice of default, and without formally placing Seller in default, all of which are hereby expressly waived by Seller.  Further, any termination of this Agreement shall not affect the outstanding obligations of Seller under this Agreement and all such outstanding obligations and the rights and remedies afforded Buyer in connection therewith, including, without limitation, those rights and remedies afforded Buyer under this Agreement, shall survive any termination of this Agreement.  Buyer shall not be liable to Seller for any costs, loss or damages arising from or relating to a termination by Buyer in accordance with any subsection of this Section 13.2.”

 

2.                                       No Other Amendments.  Other than as expressly clarified, modified and amended herein, the Repurchase Agreement shall remain in full force and effect and nothing herein shall affect the rights, remedies and obligations of the parties as provided under the Repurchase Agreement.

 

3.                                       Capitalized Terms.  Any capitalized term used herein and not otherwise defined herein shall have the meaning ascribed to such term in the Agreement.

 

4.                                       Facsimiles.  Facsimile signatures shall be deemed valid and binding to the same extent as the original.

 

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

 

	
BANK   OF AMERICA, N.A.
    	
HOME   LOAN CENTER, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
Title:Exhibit 10.12

 

 

AMENDMENT NO. 4 TO

TRANSACTIONS TERMS LETTER

 

This AMENDMENT NO. 4 TO TRANSACTIONS TERMS LETTER (the “Amendment”) is made and entered into as of November 1, 2011 by and between Bank of America, N.A. (“Buyer”) and Home Loan Center, Inc. (“Seller”). This Amendment amends that certain Transactions Terms Letter by and between Buyer and Seller dated as of June 30, 2010 (the “Transactions Terms Letter”), which supplements that certain Master Repurchase Agreement by and between Buyer and Seller dated as of May 1, 2009 (as may be amended from time to time, the “Agreement”).

 

R E C I T A L S

 

Buyer and Seller have previously entered into the Transactions Terms Letter and Agreement pursuant to which Buyer may, from time to time, purchase certain mortgage loans from Seller and Seller agrees to sell certain mortgage loans to Buyer under a master repurchase facility.  Buyer and Seller hereby agree that the Transactions Terms Letter shall be amended as provided herein.

 

In consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller hereby agree as follows:

 

1.                                       Expiration Date.  Buyer and Seller agree that the Expiration Date set forth within the Transactions Terms Letter shall be deleted in its entirety and replaced with the following:

 

	
“Expiration   Date:
    	
 
    	
The   earlier of (i) the Closing Date, as defined in Section 4.1 of that   certain Asset Purchase Agreement by and among Tree.com, Inc, Home Loan   Center, Inc., LendingTree, LLC and HLC Escrow, Inc. and Discover   Bank, dated May 12, 2011, or (ii) January 30, 2012 (the “Extension”), at which time the   Agreement will expire. Notwithstanding anything to the contrary in the   Agreement, following the expiration date of such Extension, all indebtedness   due Buyer under the Principal Agreements shall be immediately due and payable   without notice to Seller and without presentment, demand, protest, notice of   protest or dishonor, all of which are hereby expressly waived by Seller.”
    

 

2.                                       Minimum Over/Under Account Balance.  Buyer and Seller agree that the Minimum Over/Under Account Balance set forth within the Transactions Terms Letter shall be deleted in its entirety and replaced with the following:

 

	
“Minimum   Over/Under
    	
 
    	
 
    
	
Account   Balance:
    	
 
    	
$2,250,000.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Seller to be entitled to interest on a monthly   basis thereon at an annual rate of LIBOR plus the Type A Margin over 30 day   LIBOR spread on the positive monthly average Over/Under Balance for the   portion that is equal to or less than 20% of the average monthly outstanding   Transactions for such month and; Seller to be entitled to interest on a   monthly basis at an annual rate of LIBOR minus twenty-five (25) basis points   (0.25%) on the remaining portion of the positive monthly average Over/Under   Balance that is greater than 20% but less than or equal to 75% of the average   monthly outstanding Transactions for such month.  For the purpose of   this calculation, average outstanding
    

 

 

	
 
    	
 
    	
Transactions shall include EPP Loans under   Seller’s EPP Addendum with Buyer.  “LIBOR” shall mean the greater of (i) the   daily rate per annum for one-month U.S. dollar denominated deposits as   offered to prime banks in the London interbank market or (ii) 2%, as   applicable.”
    

 

3.                                       Financial Covenants.  Buyer and Seller agree that the Financial Covenants set forth within the Transactions Terms Letter shall be deleted in its entirety and replaced with the following:

 

“Financial Covenants:

 

	
 
    	
 
    	
(a)                                  Minimum Tangible Net Worth   (calculated per HUD guidelines): $25,000,000.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b)                                 Minimum Liquidity: Seller   to maintain unrestricted cash or unrestricted Cash Equivalents in a minimum   amount equal to 40% of Seller’s Tangible Net Worth, inclusive of the   Over/Under Account Balance and Available Warehouse Capacity. By way of   example but not limitation, cash in escrow and/or impound accounts shall not   be included in this calculation. “Available Warehouse Capacity” shall   mean, the sum of (i) unused capacity under existing warehouse   and repurchase facilities between Seller and Buyer or any of its Affiliates   and (ii) unused capacity under existing committed warehouse and repurchase   facilities between Seller and any Person (other than Buyer or any of its   Affiliates), where Seller has, in each case, unencumbered collateral that can   be pledged in transactions thereunder.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(c)                                  Seller to maintain a   minimum of $10,000,000 in unrestricted cash at all times, inclusive of the   Over/Under Account Balance.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(d)                                 Maximum ratio of Total   Liabilities and Warehouse Credit (Warehouse Credit is inclusive of   outstandings on warehouse lines, repurchase facilities or other off balance   sheet financing) to Tangible Net Worth: 8:1. (excluding the Early Purchase   Program with Buyer)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(e)                                  Net Income:  Seller shall show positive pre-tax net   income, on a quarterly basis.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(f)                                    Seller shall not add   additional mortgage financing facilities (including warehouse, repurchase,   purchase or off-balance sheet facilities) without prior written notification   to Buyer.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(g)                                 Payment of Dividends:   Seller may not, without the prior written consent of Buyer, (a) declare   or pay dividends upon its shares of stock now or hereafter outstanding,   including dividends payable in the capital stock of Seller, or make any   distribution of assets to its shareholders, whether in cash, property or   securities, or (b) acquire, purchase, redeem or retire shares of its capital   stock now or hereafter outstanding for value.
    

 

”

 

 

4.                                       Schedule 1.  Buyer and Seller agree that SCHEDULE 1 of the Transactions Terms Letter shall be deleted in its entirety and replaced with the following:

 

“

 

	
 
    	
 
    	
Type
   Sublimit
    	
 
    	
Margin over 30
   day LIBOR (B)
    	
 
    	
Type Purchase Price
   Percentage (A)
    	
 
    	
Maximum
   Dwell Time
    	
 
    	
Transaction
   Requirements
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Type   A: 

Conventional   Conforming Mortgage Loans (Agency eligible 1st mortgages with Full/Alt doc types only)
    	
 
    	
100%
    	
 
    	
2.25
    	
 
    	
96.00
    	
 
    	
30 days
    	
 
    	
None
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Type   B: 

Government   Mortgage Loans (1st mortgages only)
    	
 
    	
100%
    	
 
    	
2.25
    	
 
    	
96.00
    	
 
    	
30 days
    	
 
    	
None
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Type   B-1: 

Bond   Loans (1st mortgages only)
    	
 
    	
20%
    	
 
    	
2.25
    	
 
    	
96.00
    	
 
    	
45 days
    	
 
    	
None
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Type   C: 

Jumbo   Mortgage Loans (1st mortgages only, maximum loan amounts to   $1,000,000)
    	
 
    	
10%
    	
 
    	
2.25
    	
 
    	
95.00
    	
 
    	
30 days
    	
 
    	
Rate Lock and CLUES or Prior Approval
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Noncompliant   Mortgage Loans
    	
 
    	
7%
    	
 
    	
2.00 over the initial margin
    	
 
    	
See schedule 2
    	
 
    	
Additional 45 days
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Wet   Mortgage Loans
    	
 
    	
40%, increasing to 60% for the first and last five (5) business days   of each month
    	
 
    	
Noncompliant or default spreads, if applicable, over the initial Type   Margin over 30 day LIBOR
    	
 
    	
The initial Type Purchase Price Percentage. If Transaction exceeds   the Wet Mortgage Loans Maximum Dwell Time, see Schedule 3
    	
 
    	
5 business days
    	
 
    	
 
    

 

	
(A)
    	
The   Purchase Price shall be calculated and equal to multiplying the unpaid   principal balance times the lesser of (i) the Type Purchase Price   Percentage times the lesser of par, takeout price or current market price or;   (ii) 98% of the takeout price or current market price or fair market   value. Seller will have the ability to reduce the Type Purchase Price   Percentage to no less than 10% once per month, not to be applied   retroactively
    
	
(B)
    	
For   the purpose of calculating the Margin over 30 day LIBOR, “LIBOR” shall mean   the greater of (i) the daily rate per annum for one-month U.S. dollar   denominated deposits as offered to prime banks in the London interbank market   or (ii) 2%, as applicable.
    

 

·                 All Transactions are to the closing table.

 

·                 Delegated underwriting status does not satisfy the Transaction Requirements contained herein.

 

·                 Transaction Requirement Definitions and Doc Type Definitions are set forth on Buyer’s website.

 

·                 All loan amounts, FICO scores, LTV/CLTV, and document types shall meet Correspondent Lending guidelines.

 

Loan amounts greater than One Million Dollars ($1,000,000):

Loans with unpaid principal balances greater than One Million Dollars ($1,000,000) may be eligible subject to Buyer’s review and approval in its sole discretion.

·                 The following items must be received at least two (2) business days prior to the Transaction request date.

(a)          copy of the 1003

(b)         copy of the 1008

(c)          copies of all appraisals

(d)         investor prior approval with all prior to close conditions cleared

(e)          copy of takeout commitment

(f)            copy of the borrower’s credit report(s)

 

”

 

 

5.                                       No Other Amendments; Conflicts with Previous Amendments.  Other than as expressly modified and amended herein, the Transactions Terms Letter shall remain in full force and effect and nothing herein shall affect the rights and remedies of Buyer as provided under the Transactions Terms Letter and Agreement. To the extent any amendments to the Transactions Terms Letter contained herein conflict with any previous amendments to the Transactions Terms Letter, the amendments contained herein shall control.

 

6.                                       Capitalized Terms.  Any capitalized term used herein and not otherwise defined herein shall have the meaning ascribed to such term in the Agreement.

 

7.                                       Facsimiles.  Facsimile signatures shall be deemed valid and binding to the same extent as the original.

 

IN WITNESS WHEREOF, Buyer and Seller have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the date first written above.  Buyer shall have no obligation to honor the terms and conditions of this Amendment if Seller fails to fully execute and return this document to Buyer within thirty (30) days after the date hereof.

 

	
BANK   OF AMERICA, N.A.
    	
HOME   LOAN CENTER, INC.
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
Title:

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