Common use of Conventional Mortgages Clause in Contracts

Conventional Mortgages. Realized Loss. This Section 4.3 (a) shall be applicable to all Conventional Mortgages except as may be otherwise specified in the Master Commitment. Upon the Bank’s receipt of notification from the Servicer of the amount of a Realized Loss as provided in Section 4.4 below, such Realized Loss (after application of any applicable governmental or private primary mortgage insurance or guaranties) will be allocated to, and paid or incurred by, the following Persons in the following order of priority: (i) First, by the Bank up to the amount of the First Loss Account except to the extent that all or any part of such Realized Loss is covered under any Supplemental MI Policy; (ii) Second, any Realized Loss that is covered under any Supplemental MI Policy (i.e., a Realized Loss in excess of the deductible for such Supplemental MI Policy), by the issuer of the Supplemental MI Policy as insurance proceeds, until the benefits available under the Supplemental MI Policy have been paid in full; (iii) Third, any Realized Loss, which when aggregated with all prior Realized Loss, is in excess of the First Loss Account and is not covered by any Supplemental MI Policy, up to the amount of the PFI’s Remaining Credit Enhancement for the Master Commitment, by the PFI and remitted as provided in Section 4.5 below; and (iv) Finally, any Realized Loss remaining after the application set forth in clauses (i) through (iii) of this Section 4.3 (a) shall be allocated directly to the Bank. If the First Loss Account for a Master Commitment increases over time, it is possible that such First Loss Account could be fully applied to Realized Loss at a given point in time but that subsequent credits to the First Loss Account would be available to cover future Realized Loss. No subsequent credits to the First Loss Account will be used to reimburse the PFI for Realized Loss previously incurred and paid by the PFI under clause (iii).

Conventional Mortgages. Realized Loss. This Section 4.3 (a) shall be applicable to all Conventional Mortgages except as may be otherwise specified specified in the Master Commitment. Upon the Bank’s receipt of notification notification from the Servicer of the amount of a Realized Loss as provided in Section 4.4 below, such Realized Loss (after application of any applicable governmental or private primary mortgage insurance or guaranties) will be allocated to, and paid or incurred by, the following Persons in the following order of priority: (i) First, by the Bank up to the amount of the First Loss Account except to the extent that all or any part of such Realized Loss is covered under any Supplemental MI Policy; (ii) Second, any Realized Loss that is covered under any Supplemental MI Policy (i.e., a Realized Loss in excess of the deductible for such Supplemental MI Policy), by the issuer of the Supplemental MI Policy as insurance proceeds, until the benefits benefits available under the Supplemental MI Policy have been paid in full; (iii) Third, any Realized Loss, which when aggregated with all prior Realized Loss, is in excess of the First Loss Account and is not covered by any Supplemental MI Policy, up to the amount of the PFI’s Remaining Credit Enhancement for the Master Commitment, by the PFI and remitted as provided in Section 4.5 below; and (iv) Finally, any Realized Loss remaining after the application set forth in clauses (i) through (iii) of this Section 4.3 (a) shall be allocated directly to the Bank. If the First Loss Account for a Master Commitment increases over time, it is possible that such First Loss Account could be fully applied to Realized Loss at a given point in time but that subsequent credits to the First Loss Account would be available to cover future Realized Loss. No subsequent credits to the First Loss Account will be used to reimburse the PFI for Realized Loss previously incurred and paid by the PFI under clause (iii).

Conventional Mortgages. Realized Loss. This Section 4.3 (a) shall be applicable to all Conventional Mortgages except as may be otherwise specified in the Master Commitment. Upon the Bank’s receipt of notification from the Servicer of the amount of a Realized Loss as provided in Section 4.4 below, such Realized Loss (after application of any applicable governmental or private primary mortgage insurance or guaranties) will be allocated to, and paid or incurred by, the following Persons in the following order of priority: (i) First, by the Bank up to the amount of the First Loss Account except to the extent that all or any part of such Realized Loss is covered under any Supplemental MI Policy; (ii) Second, any Realized Loss that is covered under any Supplemental MI Policy (i.e., a Realized Loss in excess of the deductible for such Supplemental MI Policy), by the issuer of the Supplemental MI Policy as insurance proceeds, until the benefits available under the Supplemental MI Policy have been paid in full; (iii) Third, any Realized Loss, which when aggregated with all prior Realized Loss, is in excess of the First Loss Account and is not covered by any Supplemental MI Policy, up to the amount of the PFI’s Remaining Credit Enhancement for the Master Commitment, by the PFI and remitted as provided in Section 4.5 below; and (iv) Finally, any Realized Loss remaining after the application set forth in clauses (i) through (iii) of this Section 4.3 (a) shall be allocated directly to the Bank. If the First Loss Account for a Master Commitment increases over time, it is possible that such First Loss Account could be fully applied to Realized Loss at a given point in time but that subsequent credits to the First Loss Account would be available to cover future Realized Loss. No subsequent credits to the First Loss Account will be used to reimburse the PFI for Realized Loss previously incurred and paid by the PFI under clause (iii).