Common use of Loan Modifications Clause in Contracts

Loan Modifications. (a) CitiMortgage may agree with any mortgagor to modify or waive any provision of a mortgage loan if the modification or waiver does not · affect the amount or timing of any payment of principal or interest on the mortgage loan, · in CitiMortgage’s judgment, materially impair the security for, or reduce the likelihood of timely payment of amounts due on, the mortgage loan, or · otherwise constitute a “significant modification” within the meaning of Treasury Regulations Section 1.860G-2(b). (b) Notwithstanding the preceding section (a), CitiMortgage may agree with any mortgagor to modify or waive any provision of a mortgage loan if · the mortgage loan is in default or, in CitiMortgage’s judgment, default is reasonably foreseeable, or · CitiMortgage delivers to the Trustee an opinion of counsel to the effect that the modification or waiver will not affect the REMIC status of any REMIC. A loan modification may · extend the maturity of the mortgage loan, but not beyond the last scheduled distribution day for the certificates related to the pool containing the mortgage loan, · postpone any payment of principal or interest, · reduce the outstanding principal balance of the mortgage loan, including forgiving all or part of previously scheduled principal payments not made by the mortgagor, · reduce the interest payable on the mortgage loan, including forgiving all or part of previously scheduled interest payments not made by the mortgagor, or · increase the principal balance of the mortgage loan by part or all of the amount of any unreimbursed servicing advances (such increase being a capitalized reimbursement amount). If a mortgage loan is modified by reduction of the principal balance of the mortgage loan, the amount of the reduction will be a realized loss, allocated between the target rate and PO strips in the same percentage as the loan was allocated immediately prior to the modification; if voluntary advances were made on the mortgage loan to the full amount of scheduled monthly loan payments, the realized loss will be the difference between the principal balance of the modified mortgage loan and the scheduled principal balance of the mortgage loan before modification. (c) CitiMortgage may not agree with a mortgagor to modify or waive a provision of a mortgage loan under the preceding section (b) unless CitiMortgage reasonably determines that the mortgagor can make scheduled monthly loan payments on the modified loan, and the modification · is in the best interests of the certificate holders in the aggregate without regard to the specific impact on any particular class, · is neutral as to the effect on interest or principal distributions for any particular class, taking into account the net present value of payments on the modified mortgage loan and estimated realized losses that might result if the mortgage loan is not modified, and · does not result in taxes on any REMIC, or impair the tax status of any REMIC. (d) CitiMortgage will within 10 business days deposit in the related mortgage file an original signed copy of the agreement providing for the modification or waiver. If applicable law requires a modification or waiver to be recorded, CitiMortgage will (i) deliver a copy of such signed agreement to the Trustee and (ii) deliver to the Trustee such document, with evidence of notification upon receipt thereof from the public recording office. CitiMortgage may condition any modification or waiver on the mortgagor’s payment to CitiMortgage of a reasonable or customary fee for the additional services performed, together with reimbursement for CitiMortgage’s out-of-pocket expenses, in connection with the modification or waiver. CitiMortgage may retain such fees or reimbursements as additional servicing compensation. (e) This section 3.19 may not be amended unless each rating agency confirms in writing to CitiMortgage (with a copy to the Trustee) that the amendment will not adversely affect the rating agency’s then-current rating of any class of certificates.

Loan Modifications. (a) CitiMortgage may agree with any mortgagor to modify or waive any provision of a mortgage loan if the modification or waiver does not · affect the amount or timing of any payment of principal or interest on the mortgage loan, · in CitiMortgage’s judgment, materially impair the security for, or reduce the likelihood of timely payment of amounts due on, the mortgage loan, or · otherwise constitute a “significant modification” within the meaning of Treasury Regulations Section 1.860G-2(b). (b) Notwithstanding the preceding section (a), CitiMortgage may agree with any mortgagor to modify or waive any provision of a mortgage loan if · the mortgage loan is in default or, in CitiMortgage’s judgment, default is reasonably foreseeable, or · CitiMortgage delivers to the Trustee an opinion of counsel to the effect that the modification or waiver will not affect the REMIC status of any REMIC. A loan modification may · extend the maturity of the mortgage loan, but not beyond the last scheduled distribution day for the certificates related to the pool containing the mortgage loan, · postpone any payment of principal or interest, · reduce the outstanding principal balance of the mortgage loan, including forgiving all or part of previously scheduled principal payments not made by the mortgagor, · temporarily or permanently reduce the interest payable rate on the mortgage loan, including forgiving all or part of previously scheduled interest payments not made by the mortgagor, or · increase the principal balance of the mortgage loan by part or all of the amount of any unreimbursed servicing advances or interest advances (such increase being a capitalized reimbursement amount). If a mortgage loan is modified by reduction of the principal balance of the mortgage loan, the amount of the reduction will be a realized loss, allocated between the target rate and PO strips in the same percentage as the loan was allocated immediately prior to the modification; if voluntary advances were made on the mortgage loan to the full amount of scheduled monthly loan payments, the realized loss will be the difference between the principal balance of the modified mortgage loan and the scheduled principal balance of the mortgage loan before modification. (c) CitiMortgage may not agree with a mortgagor to modify or waive a provision of a mortgage loan under the preceding section (b) unless CitiMortgage reasonably determines that the mortgagor can make scheduled monthly loan payments on the modified loan, and the modification · is in the best interests of the certificate holders in the aggregate without regard to the specific impact on any particular class, · is neutral as to the effect on interest or principal distributions for any particular class, taking into account the net present value of payments on the modified mortgage loan and estimated realized losses that might result if the mortgage loan is not modified, and · does not result in taxes on any REMIC, or impair the tax status of any REMIC. (d) CitiMortgage will within 10 business days deposit in the related mortgage file an original signed copy of the agreement providing for the modification or waiver. If applicable law requires a modification or waiver to be recorded, CitiMortgage will (i) deliver a copy of such signed agreement to the Trustee and (ii) deliver to the Trustee such document, with evidence of notification upon receipt thereof from the public recording office. CitiMortgage may condition any modification or waiver on the mortgagor’s payment to CitiMortgage of a reasonable or customary fee for the additional services performed, together with reimbursement for CitiMortgage’s out-of-pocket expenses, in connection with the modification or waiver. CitiMortgage may retain such fees or reimbursements as additional servicing compensation. (e) This section 3.19 may not be amended unless each rating agency confirms in writing to CitiMortgage (with a copy to the Trustee) that the amendment will not adversely affect the rating agency’s then-current rating of any class of certificates.