Direct Servicer Responsibilities Clause Samples
The Direct Servicer Responsibilities clause defines the specific duties and obligations that a servicer must perform under an agreement. This typically includes tasks such as collecting payments, managing accounts, maintaining records, and communicating with borrowers or clients. By clearly outlining these responsibilities, the clause ensures that both parties understand the servicer’s role and helps prevent disputes or misunderstandings regarding the scope of services to be provided.
Direct Servicer Responsibilities. Each Direct Servicer will be responsible, on behalf of and for the benefit of each Trust for which the Direct Servicer services Mortgage Loans, to service the related Mortgage Loans pursuant to Accepted Servicing Practices. Direct servicing will be performed by Direct Servicers engaged by contract with the Master Servicer or by Subservicers engaged by contract between a Subservicer and a Direct Servicer or the Master Servicer. If a Direct Servicer is terminated or resigns before a replacement Direct Servicer can be engaged, the Master Servicer may engage (or act as) an interim servicer to perform such services.
Direct Servicer Responsibilities. Each Direct Servicer will be responsible, on behalf of and for the benefit of each Trust for which the Direct Servicer services Mortgage Loans, to do the following, to the extent permitted or required by the related Servicing Contract:
(a) service and administer the related Mortgage Loans in accordance with the standard of care stated in Subsection 5.1(1);
(b) without limiting the generality of clause (a), service the related Mortgage Loans in accordance with Sections 5.2 through 5.11, including without limitation:
(i) collect payments on the Mortgage Loans as provided in Section 5.3 and deposit payments of principal and interest on those Mortgage Loans as provided in Section 6.1;
(ii) establish and maintain Escrow Accounts and Supplemental Accounts as provided in Subsection 5.3(2), except that, to the extent provided in the related Servicing Contract or Mortgage Documents, collections of payments from Borrowers for deposit to Escrow Accounts or Supplemental Accounts may be waived, delayed or reinstated;
(iii) make any Servicing Advances required by its Servicing Contract;
(iv) waive, forbear and modify provisions of the Mortgage Loans to the extent provided in Subsection 5.3(3), except as limited by Subsections 5.3(4) and 5.3(5);
(v) process releases, satisfactions and reconveyances (or deactivation on the Mortgage Registry System) when Mortgage Loans are repaid in whole or in part, as provided in Subsection 5.4(1);
(vi) deliver documents to the applicable Custodian, hold documents and maintain records regarding the Mortgage Loans as provided in Subsection 5.4(2);
(vii) enforce any requirements for property, hazard or flood insurance and any Mortgage Insurance required under the Mortgage Documents as provided in Sections 5.7 and 5.8, and apply any insurance proceeds and condemnation proceeds as provided in Sections 5.7 and 5.8;
(viii) enforce Due-on-Transfer Provisions as and to the extent provided in Section 5.9, subject to the exceptions in Subsection 5.9(2) and Section 5.10;
(ix) foreclose or otherwise realize upon defaulted Mortgage Loans as provided in Section 5.11; and
(x) process requests for easements, licenses, rights of use, assumptions, partial lien releases and mineral, oil or gas leases, and perform other servicing functions relating to provisions of, and concerns arising under, the Mortgage Documents, as permitted by the related Servicing Contract;
(c) pay all expenses incurred by it in connection with its servicing activities with respect t...