Loss Mitigation Alternatives; Non-Performing Loans Sample Clauses

Loss Mitigation Alternatives; Non-Performing Loans. The Master Servicer (or to the extent provided in the Servicing Contract, the Primary Servicer) may agree to a Loss Mitigation Alternative as provided in clause (iv) of paragraph (a) of this Subsection 5.3(3) only if
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Loss Mitigation Alternatives; Non-Performing Loans. The Master Servicer (or to the extent provided in the Servicing Contract, the Primary Servicer) may agree to a Loss Mitigation Alternative as provided in clause (iv) of paragraph (a) of this Subsection 5.3(3) only if (x) a payment default on that Mortgage Loan has occurred and is continuing or (y) the Master Servicer (or to the extent provided in the Servicing Contract, the Primary Servicer) determines that a payment default is reasonably foreseeable, and in either case a concession to the Borrower in the payment terms is advisable under Accepted Servicing Practices to increase the probability of recovery for the related Trust. In determining whether a payment default is reasonably foreseeable (except in the case of clause (ix) below), a Primary Servicer or the Master Servicer will be required to evaluate the Borrower’s financial condition as well as the condition of, and circumstances affecting, the related Mortgaged Property. In making that evaluation, a Primary Servicer or the Master Servicer may consider factors including: (i) the credit scores of the Borrower(s); (ii) the payment history of the Borrower(s) (as reported by a credit bureau) on other indebtedness; (iii) the loan-to-value ratio of the Mortgage Loan at the time the loan was originated; (iv) the current loan-to-value ratio, determined by using the outstanding principal balance of the Mortgage Loan and an estimated value of the Mortgaged Property; (v) whether the scheduled payments on the Mortgage Loan have recently changed or will soon change;
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Loss Mitigation Alternatives; Non-Performing Loans. The Master Servicer (or to the extent provided in the Servicing Contract, the Primary Servicer) may agree to a Loss Mitigation Alternative as provided in clause (iv) of paragraph (a) of this Subsection 5.3(3) only if (x) a payment default on that Mortgage Loan has occurred and is continuing or (y) the Master Servicer (or to the extent provided in the Servicing Contract, the Primary Servicer) determines that a payment default is Reasonably Foreseeable, and in either case a concession to the Borrower in the payment terms is advisable under Accepted Servicing Practices to increase the probability of recovery for the related Trust. The Primary Servicer or the Master Servicer will also maintain a record of each Mortgage Loan in the Trust that has been modified through implementation of a Loss Mitigation Alternative. In making an evaluation that a payment default on a Mortgage Loan is Reasonably Foreseeable, a Primary Servicer or the Master Servicer may consider the following factors to the extent they are not inconsistent with the Code or applicable Treasury Regulations: (i) the credit scores of the Borrower(s); (ii) the payment history of the Borrower(s) (as reported by a credit bureau) on other indebtedness; (iii) the loan-to-value ratio of the Mortgage Loan at the time the loan was originated; (iv) the current loan-to-value ratio, determined by using the outstanding principal balance of the Mortgage Loan and an estimated value of the Mortgaged Property; (v) whether the scheduled payments on the Mortgage Loan have recently changed or will soon change; (vi) information received from the Borrower(s) (including change of employment, change in income or change in family medical status); (vii) whether operating statements (including pro formas) or leasing records for the related Mortgaged Property reflect insufficient funds to continue to cover debt service and operating expenses; (viii) whether any material decline in the liquidity and net worth of the Borrower, any Key Principal or any owner of the Borrower or Key Principal has occurred and whether any payment defaults on other mortgage loans have occurred with respect to which the Borrower, any Key Principal of the Borrower or any entity owned by any owner of the Borrower or Key Principal is an obligor; and (ix) the occurrence of a disaster (including a tornado, hurricane or flood), terrorist attack or other catastrophe caused by either nature or a Person other than the Borrower or a Key Principal that the Mast...
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Related to Loss Mitigation Alternatives; Non-Performing Loans

  • Loss Mitigation and Consideration of Alternatives (i) For each Single Family Shared-Loss Loan in default or for which a default is reasonably foreseeable, the Assuming Institution shall undertake reasonable and customary loss mitigation efforts, in accordance with any of the following programs selected by Assuming Institution in its sole discretion, Exhibit 5 (FDIC Mortgage Loan Modification Program), the United States Treasury's Home Affordable Modification Program Guidelines or any other modification program approved by the United States Treasury Department, the Corporation, the Board of Governors of the Federal Reserve System or any other governmental agency (it being understood that the Assuming Institution can select different programs for the various Single Family Shared-Loss Loans) (such program chosen, the “Modification Guidelines”). After selecting the applicable Modification Guideline for each such Single Family Shared-Loss Loan, the Assuming Institution shall document its consideration of foreclosure, loan restructuring under the applicable Modification Guideline chosen, and short-sale (if short-sale is a viable option) alternatives and shall select the alternative the Assuming Institution believes, based on its estimated calculations, will result in the least Loss. If unemployment or underemployment is the primary cause for default or for which a default is reasonably foreseeable, the Assuming Institution may consider the borrower for a temporary forbearance plan which reduces the loan payment to an affordable level for at least six (6) months. (ii) Losses on Home Equity Loans shall be shared under the charge-off policies of the Assuming Institution’s Examination Criteria as if they were Single Family Shared-Loss Loans. (iii) Losses on Investor-Owned Residential Loans shall be treated as Restructured Loans, and with the consent of the Receiver can be restructured under terms separate from the Exhibit 5 standards. Please refer to Exhibits 2(a)(1)-(2) for guidance in Calculation of Loss for Restructured Loans. Losses on Investor-Owned Residential Loans will be treated as if they were Single Family Shared-Loss Loans. (iv) The Assuming Institution shall retain its loss calculations for the Shared Loss Loans and such calculations shall be provided to the Receiver upon request. For the avoidance of doubt and notwithstanding anything herein to the contrary, (x) the Assuming Institution is not required to modify or restructure any Shared-Loss Loan on more than one occasion and (y) the Assuming Institution is not required to consider any alternatives with respect to any Shared-Loss Loan in the process of foreclosure as of the Bank Closing if the Assuming Institution can document that a loan modification is not cost effective and shall be entitled to continue such foreclosure measures and recover the Foreclosure Loss as provided herein, and (z) the Assuming Institution shall have a transition period of up to 90 days after Bank Closing to implement the Modification Guidelines, during which time, the Assuming Institution may submit claims under such guidelines as may be in place at the Failed Bank.

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