Common use of Application and Approval Clause in Contracts

Application and Approval. ‌ In order to participate in the MPF Program, a Member must apply and be approved as a PFI. Non-Members may apply to the MPF Provider to be approved as a Servicer. The MPF Bank determines an applicant’s qualifications by reviewing its financial condition, organization, staffing, servicing experience, and other relevant factors. The MPF Provider will review similar criteria in reviewing the application of a non- Member to be a Servicer. MPF Program Eligibility (3/28/17)18‌ Approval of a Member’s application to participate in the MPF Program is at the MPF Bank’s sole discretion and is based on the MPF Bank’s business judgment with respect to the entirety of the applicant’s circumstances. Likewise, approval of a non-Member as a Servicer is at the MPF Provider’s sole discretion based on the MPF Provider’s business judgment of the applicant’s qualifications. At minimum, to be considered for approval as a PFI or a Servicer, an applicant must meet the following requirements: • Have as its principal business purpose, the origination, purchasing, selling, and/or servicing of residential mortgages of the type the PFI or Servicer intends to sell into and/or service for the MPF Program; • Have demonstrated the ability to originate, purchase, sell, and/or service the types of mortgages for which approval is being requested; • Have adequate facilities and staff experienced in originating, selling, and/or servicing the types of mortgages for which approval is being requested; • Be duly organized, validly existing, in possession of all proper licenses, registrations, permits, approvals, and qualifications, be in good standing, or otherwise be authorized to conduct business in each of the jurisdictions in which it originates, sells, and services residential mortgages; • Have internal audit and management control systems to evaluate and monitor the overall quality of its loan production and servicing; 18 MPF Announcement 2017-13 (3/28/17) • Have written procedures for the approval and management of vendors and other third-party service providers; • Have a fidelity bond and an errors and omissions policy in effect and agree to modify them as necessary to meet the MPF Program requirements; • Satisfy any additional eligibility criteria the MPF Bank or MPF Provider requires; • If a member of an MPF Bank, be a member in good standing of the MPF Bank; and • Meet the eligibility requirements of the Applicable Agreement and the Guides. An MPF eligibility requirement will be considered complied with, if an appropriate waiver of such eligibility requirement has been granted in writing by the MPF Bank or MPF Provider, as applicable, and the terms of that waiver are being met by the PFI or Servicer. Government Agency Eligibility‌ In order to be eligible to originate and sell Government Loans to, and service them for, the MPF Bank, in addition to the above requirements, the Originator, PFI, or Servicer must also be authorized to originate, sell, or service mortgage loans by the applicable Government Agency. Termination of the PFI or Servicer’s approved status by any applicable Government Agency shall be grounds for termination of the related Applicable Agreements.