Common use of Early Payment Default Clause in Contracts

Early Payment Default. On Loans closed in Seller’s name and sold to Arc, an Early Payment Default (EPD) occurs when any of the first four (4) payments due after purchase of the Loan by Arc becomes ninety (90) or more days delinquent and such delinquency is not attributable to an error in servicing or other material error of Arc or its affiliates. Section 5.3 will not apply in those circumstances where Xxx has agreed to provide non-delegated underwriting services to Seller with respect to the applicable Loan. For purposes of this section, a Loan is considered delinquent if the payment has not been received by the end of the day immediately preceding the Loan’s next due date. Receipt of payments originally due prior to the date on which Arc purchases the loan will not satisfy EPD requirements. Cure for an Early Payment Default is repurchase or indemnification, at the sole discretion of Arc. If indemnification is allowed by Arc, Seller will be required to return the greater of the Premium or 1.25% of the loan amount and pay $3,500 for FHA insured and VA and USDA guaranteed Loans and $2,000 for Conventional Loans and establish a reserve deposit in an amount solely determined by Arc to mitigate future losses including without limitation a loss on sale of the Loan. In the event these funds do not cover all losses, Seller will be invoiced for the deficiency and will promptly remit such amount to Arc. Any excess reserve deposits will be returned to the Seller upon the loans final disposition after Xxx is reimbursed for all costs and expenses including without limitation interest.

Early Payment Default. On Loans closed in Seller’s name and sold to Arc, an Early Payment Default (EPD) occurs when any of the first four (4) payments due after purchase of the Loan by Arc becomes ninety (90) or more days delinquent and such delinquency is not attributable to an error in servicing or other material error of Arc or its affiliates. Section 5.3 will not apply in those circumstances where Xxx Arc has agreed to provide non-delegated underwriting services to Seller with respect to the applicable Loan. For purposes of this section, a Loan is considered delinquent if the payment has not been received by the end of the day immediately preceding the Loan’s next due date. Receipt of payments originally due prior to the date on which Arc purchases the loan will not satisfy EPD requirements. Cure for an Early Payment Default is repurchase or indemnification, at the sole discretion of Arc. If indemnification is allowed by Arc, Seller will be required to return the greater of the Premium or 1.25% of the loan amount and pay $3,500 for FHA insured and VA and USDA guaranteed Loans and $2,000 for Conventional Loans and establish a reserve deposit in an amount solely determined by Arc to mitigate future losses including without limitation a loss on sale of the Loan. In the event these funds do not cover all losses, Seller will be invoiced for the deficiency and will promptly remit such amount to Arc. Any excess reserve deposits will be returned to the Seller upon the loans final disposition after Xxx Arc is reimbursed for all costs and expenses including without limitation interest.

Early Payment Default. On Loans closed in Seller’s name and sold to ArcArcHome, an Early Payment Default (EPD) occurs when any of the first four (4) payments due after purchase of the Loan by Arc ArcHome becomes ninety (90) or more days delinquent and such delinquency is not attributable to an error in servicing or other material error of Arc ArcHome or its affiliates. Section 5.3 will not apply in those circumstances where Xxx ArcHome has agreed to provide non-delegated underwriting services to Seller with respect to the applicable LoanSeller. For purposes of this section, a Loan is considered 30 days delinquent if the payment has not been received and applied by the end of the day immediately preceding the Loan’s next due date. Receipt of payments originally due prior to the date on which Arc ArcHome purchases the loan will not satisfy EPD requirements. Cure for an Early Payment Default is repurchase or indemnification, at the sole discretion of ArcArcHome. If indemnification is allowed by ArcArcHome, Seller will be required to return the greater of the Premium or 1.25% of the loan amount and pay $3,500 for FHA insured and VA and USDA guaranteed Loans and $2,000 for Conventional Loans and establish a reserve deposit in an amount solely determined by Arc ArcHome to mitigate future losses including without limitation a loss on sale of the Loan. In the event these funds do not cover all losses, Seller will be invoiced for the deficiency and will promptly remit such amount to ArcArcHome. Any excess reserve deposits will be returned to the Seller upon the loans final disposition after Xxx ArcHome is reimbursed for all costs and expenses including without limitation interest.

Early Payment Default. On Loans closed in Seller’s name and sold to ArcArc Home, an Early Payment Default (EPD) occurs when any of the first four (4) payments due after purchase of the Loan by Arc Home becomes ninety (90) or more days delinquent and such delinquency is not attributable to an error in servicing or other material error of Arc Home or its affiliates. Section 5.3 will not apply in those circumstances where Xxx Arc Home has agreed to provide non-delegated underwriting services to Seller with respect to the applicable LoanSeller. For purposes of this section, a Loan is considered 30 days delinquent if the payment has not been received and applied by the end of the day immediately preceding the Loan’s next due date. Receipt of payments originally due prior to the date on which Arc Home purchases the loan will not satisfy EPD requirements. Cure for an Early Payment Default is repurchase or indemnification, at the sole discretion of ArcArc Home. If indemnification is allowed by ArcArc Home, Seller will be required to return the greater of the Premium or 1.25% of the loan amount and pay $3,500 for FHA insured and VA and USDA guaranteed Loans and $2,000 for Conventional Loans and establish a reserve deposit in an amount solely determined by Arc Home to mitigate future losses including without limitation a loss on sale of the Loan. In the event these funds do not cover all losses, Seller will be invoiced for the deficiency and will promptly remit such amount to ArcArc Home. Any excess reserve deposits will be returned to the Seller upon the loans final disposition after Xxx Arc Home is reimbursed for all costs and expenses including without limitation interest.