Representations and Warranties of the Seller with Respect to the Mortgage Loans. (a) The Seller makes the following representations and warranties as to the Mortgage Loans on which the Note Insurer relies in issuing the Note Insurance Policy. Such representations and warranties speak as of the Closing Date but shall survive the sale, transfer, and assignment of the related Mortgage Loans to the Issuer: (i) The information with respect to each Mortgage Loan set forth in the Schedule of Mortgage Loans is true and correct as of the Cut-Off Date; the Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $_____________. (ii) All of the original or certified documentation set forth in Section 2.5 (including all material documents related thereto) with respect to each Mortgage Loan has been or will be delivered to the Indenture Trustee on the Closing Date or as otherwise provided in Section 2.5; (iii) Each Mortgage Loan is being serviced by the Servicer or a Servicer Affiliate; (iv) The Mortgage Note related to each Mortgage Loan bears a [current] Coupon Rate of at least ______% per annum; (v) No more than ____% of the Mortgage Loans were 30 or more days Delinquent; (vi) As of the Cut-Off Date, no more than ____% of the Original Aggregate Loan Balance of the Mortgage Loans is secured by Properties located within any single zip code area; (vii) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform, in all material respects, to the description thereof set forth in the Registration Statement; (viii) As of the Cut-Off Date, no more than ____% of the Original Aggregate Loan Balance is secured by condominiums, townhouses, or planned unit developments; (ix) As of the Cut-Off Date, no more than ____% Original Aggregate Loan Balance is secured by investor-owned Properties; (x) The credit underwriting guidelines applicable to each Mortgage Loan conform in all material respects to the description thereof set forth in the Prospectus; (xi) No funds provided to borrower from a Second Mortgage Loan originated by the Seller were concurrently used as a down payment for a First Mortgage Loan originated by the Seller; (xii) All of the Mortgage Notes are actuarial loans; (xiii) No more than ____% of the Original Aggregate Loan Balance, is secured by Second Mortgage Loans; (xiv) As of the Cut-Off Date, ____% of the Mortgage Loans had interest rates which were not fully indexed;] (xv) The gross margin range for Six Month LIBOR Loans is _____% to _____% and, the gross margin for all Six Month LIBOR Loans when added to the current index, creates the fully-indexed range;] (xvi) No Mortgage Loan has a remaining term in excess of 360 months; (xvii) With respect to each Mortgage Loan, each Mortgagor's debt-to-income ratio will qualify for the related Originator's underwriting guidelines for a similar credit grade borrower when the related Mortgage Loan is at a rate equal to the applicable initial Coupon Rate plus 2%;] (xviii) There is no proceeding pending or to the best of the Seller's knowledge threatened for the total or partial condemnation of any Property. No Property is damaged by waste, fire, earthquake or earth movement, windstorm, flood, other types of water damage, tornado, or other casualty so as to affect adversely the value of such Property as security for the Mortgage Loans or the use for which the premises were intended and each Property is in good repair; (xix) Each Mortgage Loan complies in all material respects with all applicable federal and state laws including without limitation the Truth-in-Lending Act, as amended; (xx) Each Mortgage Loan is secured by a Property having an appraised value of less than $__________; (xxi) The first Due Date of each Mortgage Loan is no later than _________ _, 199_; and (xxii) On the Closing Date with respect to each Mortgage Loan, the Issuer will have good title to each Mortgage Loan transferred on such date. (b) Upon the discovery by the Issuer, the Seller, the Servicer, the Note Insurer, the Owner Trustee or the Indenture Trustee of a breach of any of the representations and warranties made herein in respect of any Mortgage Loan, without regard to any limitation set forth in such representation or warranty concerning the knowledge of the Seller or any related Originator as to the facts stated therein, which materially and adversely affects the interests of the Owners or of the Note Insurer in such Mortgage Loan the party discovering such breach shall give prompt written notice to the other parties hereto and the Note Insurer, as their interests may appear. The Servicer shall promptly notify the related Originator of such breach and request that such Originator cure such breach or take the actions described in Section 2.4(b) hereof within the time periods required thereby, and if such Originator does not cure such breach in all material respects, the Seller shall cure such breach or take such actions. Except as set forth in Section 2.4, the obligations of the Seller or Servicer, as the case may be, shall be limited to the remedies for cure set forth in Section 2.4 with respect to any Mortgage Loan as to which such a breach has occurred and is continuing; the remedies set forth in Section 2.4 shall constitute the sole remedy with respect to such breach available to the Owners, the Indenture Trustee and the Note Insurer. The Seller acknowledges that a breach of any representation or warranty (x) relating to marketability of title sufficient to transfer unencumbered title to a Mortgage Loan and (y) relating to enforceability of the Mortgage Loan against the related Mortgagor or Property is a priori the breach of a representation or warranty which "materially and adversely affects the interests of the Owners or of the Note Insurer" in such Mortgage Loan.
Appears in 1 contract
Samples: Sale and Servicing Agreement (First Alliance Mortgage Co /De/)
Representations and Warranties of the Seller with Respect to the Mortgage Loans. (a) The Seller makes the following representations and warranties as to the Mortgage Loans on which the Note Insurer relies in issuing the Note Insurance PolicyPolicies. Such representations and warranties speak as of the Closing Date (with respect to the Initial Mortgage Loans) and as of the respective Subsequent Cut-Off Date (with respect to the Subsequent Mortgage Loans) but shall survive the sale, transfer, and assignment of the related Mortgage Loans to the Issuer:
(i) The information with respect to each Initial Mortgage Loan and Subsequent Mortgage Loan set forth in the related Schedule of Mortgage Loans is true and correct as of the CutOff Date (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Cut-Off Date); the Original Aggregate Loan Balance in the Trust Estate as of the Cut-Off Date is $_____________82,620,976.00 (the "Original Aggregate Adjustable Rate Loan Balance as of the Cut-Off Date is $26,582,365.10 and the Original Aggregate Fixed Rate Loan Balance as of the Cut-Off Date is $56,038,610.90).
(ii) All of the original or certified documentation set forth in Section 2.5 (including all material documents related thereto) with respect to each Initial Mortgage Loan has been or will be delivered to the Indenture Trustee on the Closing Date (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Transfer Date) or as otherwise provided in Section 2.5;
(iii) Each Mortgage Loan is being serviced by the Servicer or a Servicer Affiliate;
(iv) The Mortgage Note related to each Initial Mortgage Loan in the Adjustable Rate Pool bears a [current] current Coupon Rate of at least ______6.490% per annum and the Mortgage Note relating to each Mortgage Loan in the Fixed Rate Pool bears a current Coupon Rate of at least 7.250% per annum;
(v) No more than ____4.23% of the Initial Mortgage Loans in the Adjustable Rate Pool were 30 30-59 days Delinquent; and, of the Initial Mortgage Loans in the Fixed Rate Pool, no more than 4.10% were 30-59 days Delinquent, 0.19% were 60-89 days Delinquent, and 0.24% were 90 or more days Delinquent;
(vi) As of the Cut-Off Date, no more than ____1.57% of the Original Aggregate Adjustable Rate Loan Balance is secured by Properties located within any single zip code area, and no more than 0.80% of the Mortgage Loans Original Aggregate Fixed Rate Loan Balance is secured by Properties located within any single zip code area;
(vii) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform, in all material respects, to the description thereof set forth in the Registration Statement;
(viii) As of the Cut-Off Date, no more than ____17.09% and 10.12% of the Original Aggregate Adjustable Rate Loan Balance and the Original Aggregate Fixed Rate Loan Balance, respectively, is secured by condominiums, townhouses, or planned unit developments;
(ix) As of the Cut-Off Date, no more than ____5.80% and 4.57% of the Original Aggregate Loan Balance and the Original Aggregate Fixed Rate Loan Balance, respectively, is secured by investor-owned Properties;
(x) The credit underwriting guidelines applicable to each Mortgage Loan conform in all material respects to the description thereof set forth in the Prospectus;
(xi) No funds provided to borrower from a Second All of the Mortgage Loan originated by the Seller were concurrently used as a down payment for a First Mortgage Loan originated by the SellerLoans are actuarial loans;
(xii) All of the Adjustable Rate Mortgage Notes Loans are actuarial loans;First Mortgage Loans, and 99.84% of the Fixed Rate Mortgage Loans are First Mortgage Loans subject only to the exceptions to title set forth in the title insurance policy, with respect to the related Mortgage Loan, which exceptions are generally acceptable to mortgage lending companies, as applicable, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely affect the benefits of the security intended to be provided by such Mortgage.
(xiii) No more than ____% of the Original Aggregate Loan Balance, is secured by Second Mortgage Loans;
(xiv) As of the Cut-Off Date, ____% substantially all of the Adjustable Rate Mortgage Loans had interest rates which were not fully indexed;]
(xvxiv) The gross margin range for Six Month LIBOR Loans is _____3.990% to _____8.990% and, the gross margin for all Six Month LIBOR Loans when added to the current index, creates the fully-fully- indexed range;]
(xvixv) No Mortgage Loan has a remaining term in excess of 360 months;
(xviixvi) With respect to each Mortgage LoanLoan in the Adjustable Rate Pool, each Mortgagor's debt-to-income ratio will qualify for the related Originator's underwriting guidelines for a similar credit grade borrower when the related Mortgage Loan is at a rate equal to the applicable initial Coupon Rate plus 2%;]
(xviiixvii) There is no proceeding pending or to the best of the Seller's knowledge threatened for the total or partial condemnation of any Property. No Property is damaged by waste, fire, earthquake or earth movement, windstorm, flood, other types of water damage, tornado, or other casualty so as to affect adversely the value of such Property as security for the Mortgage Loans or the use for which the premises were intended and each Property is free of material damage and is in good repair;
(xixxviii) Each Mortgage Loan complies complies, and at all times has complied in all material respects with all applicable federal and state laws and regulations including without limitation the Truth-in-Lending Act, as amended;
(xxxix) Each Mortgage Loan is secured by a Property having an appraised value of less than $__________417,440.00;
(xxixx) The first Due Date of each Mortgage Loan is no later than _________ _July 1, 199_1998; and
(xxiixxi) On the Closing Date with respect to each Initial Mortgage Loan and on each Subsequent Transfer Date with respect to each Subsequent Mortgage Loan, the Issuer will have good title to each Mortgage Loan transferred on such datedate free and clear of all liens, encumbrances, mortgages or rights of others.
(bxxii) Upon The Seller and any Originator complied with all applicable federal and state laws and regulations in connection with the discovery by origination of the IssuerMortgage Loan;
(xxiii) No more than 41% and 31% of the Initial Mortgage Loans in the Adjustable Rate Pool and the Fixed Rate Pool, respectively, were originated on an "alternative documentation" basis;
(xxiv) No fraud, error, omission, misrepresentation or negligence with respect to the origination of a Mortgage Loan has taken place on the part of any person, including, without limitation, the Mortgagor, the Originator, the Seller, any appraiser or any other party involved in the Servicer, origination of the Note Insurer, the Owner Trustee or the Indenture Trustee Mortgage Loan;
(xxv) Each Property consists of a breach single parcel of residential real property that is separately assessed for tax purposes and that is owned by the related Mortgagor in fee simple absolute, and each Property is improved by a one- to four-family residential dwelling, which does not include cooperatives or mobile homes and does not constitute other than real property under state law. No Property is a manufactured housing unit.
(xxvi) Each Mortgage Note will provide for a schedule of substantially equal Monthly Payments which are, if timely paid, sufficient to fully amortize the principal balance of such Mortgage Note on or before its maturity date (except that 0.87% of the Mortgage Loans in the Fixed Rate Pool contain "balloon" payment provisions);
(xxvii) The Mortgage Loan is not subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, nor will the operation of any of the representations and warranties made herein in respect of any Mortgage Loan, without regard to any limitation set forth in such representation or warranty concerning the knowledge of the Seller or any related Originator as to the facts stated therein, which materially and adversely affects the interests of the Owners or of the Note Insurer in such Mortgage Loan the party discovering such breach shall give prompt written notice to the other parties hereto and the Note Insurer, as their interests may appear. The Servicer shall promptly notify the related Originator of such breach and request that such Originator cure such breach or take the actions described in Section 2.4(b) hereof within the time periods required thereby, and if such Originator does not cure such breach in all material respects, the Seller shall cure such breach or take such actions. Except as set forth in Section 2.4, the obligations of the Seller or Servicer, as the case may be, shall be limited to the remedies for cure set forth in Section 2.4 with respect to any Mortgage Loan as to which such a breach has occurred and is continuing; the remedies set forth in Section 2.4 shall constitute the sole remedy with respect to such breach available to the Owners, the Indenture Trustee and the Note Insurer. The Seller acknowledges that a breach of any representation or warranty (x) relating to marketability of title sufficient to transfer unencumbered title to a Mortgage Loan and (y) relating to enforceability terms of the Mortgage Loan against Note or the related Mortgagor Mortgage, or Property is a priori the breach exercise of a representation any right thereunder, render either the Mortgage Note or warranty which "materially the Mortgage unenforceable in whole or in part, or subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, and adversely affects no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto; (xxviii) To the interests best of the Owners Seller's knowledge, there is no mechanics' lien or claim for work, labor or material affecting any Property which is or may be a lien prior to, or equal with, the lien of the Note Insurer" in such Mortgage Loan.except those which are insured against by the title insurance policy referred to in Section 2.3(a)(xxix) below;
Appears in 1 contract
Samples: Sale and Servicing Agreement (First Alliance Mortgage Loan Trust 1998-2)
Representations and Warranties of the Seller with Respect to the Mortgage Loans. (a) The Seller makes the following representations and warranties as to the Mortgage Loans on which the Note Certificate Insurer relies in issuing the Note Certificate Insurance PolicyPolicies. Such representations and warranties speak as of the Closing Startup Day (with respect to the Initial Mortgage Loans) and as of the respective Subsequent Transfer Date (with respect to the Subsequent Mortgage Loans) but shall survive the sale, transfer, and assignment of the related Mortgage Loans to the IssuerTrust:
(i) The information with respect to each Initial Mortgage Loan and Subsequent Mortgage Loan set forth in the related Schedule of Mortgage Loans is true and correct as of the Cut-Off Date (or in the case of the Subsequent Mortgage Loans, on the related Subsequent Transfer Date); the Group I Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $_____________50,144,557.74 and the Group II Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $25,160,592.40.
(ii) All of the original or certified documentation set forth in Section 2.5 3.5 (including all material documents related thereto) with respect to each Initial Mortgage Loan has been or will be delivered to the Indenture Trustee on the Closing Date Startup Day (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Transfer Date) or as otherwise provided in Section 2.53.5;
(iii) Each Mortgage Loan is being serviced by the Servicer or a Servicer Affiliate;
(iv) The Note related to each Initial Mortgage Loan in Group I bears a fixed Coupon Rate of at least 7.400% per annum and the Note related to each Mortgage Loan in Group II bears a [current] current Coupon Rate of at least ______6.330% per annum;
(v) No more than ____1.81% of the Initial Mortgage Loans in Group I were 30 or 30-59 days Delinquent and, of the Initial Mortgage Loans in Group II, no more than 2.37% were 30-59 days Delinquent;.
(vi) As of the Cut-Off Date, no more than ____1.14% of the Group I Original Aggregate Loan Balance of the Mortgage Loans is secured by Properties located within any single zip code area;, and no more than 1.59% of the Group II Original Aggregate Loan Balance is secured by Properties located within any single zip code area.
(vii) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform, in all material respects, to the description thereof set forth in the Registration Statement;
(viii) As of the Cut-Off Date, no more than ____2.54% and 2.84% of the Group I Original Aggregate Loan Balance is and the Group II Original Aggregate Loan Balance, respectively, are secured by condominiums, townhouses, or planned unit developments;
(ix) As of the Cut-Off Date, no more than ____4.03% and 1.95% of the Group I Original Aggregate Loan Balance is and the Group II Original Aggregate Loan Balance, respectively, are secured by investor-owned Properties;
(x) The credit underwriting guidelines applicable to each Mortgage Loan conform in all material respects to the description thereof set forth in the Prospectus;
(xi) No funds provided to borrower from a Second Mortgage Loan originated by the Seller were concurrently used as a down payment for a First Mortgage Loan originated by the Seller;
(xii) All of the Mortgage Notes Loans in Group I and Group II are actuarial loans;
(xiii) No more than ____All of the Group II Mortgage Loans are First Mortgage Loans, and 99.46% of the Original Aggregate Loan BalanceGroup I Mortgage Loans are First Mortgage Loans subject only to the exceptions to title set forth in the title insurance policy, is secured with respect to the related Mortgage Loan, which exceptions are generally acceptable to mortgage lending companies, as applicable, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely affect the benefits of the security intended to be provided by Second Mortgage Loanssuch Mortgage;
(xiv) As of the Cut-Off Date, ____% none of the Mortgage Loans in Group II had interest rates which were not fully indexed;]
(xv) The gross margin range for Six Month LIBOR Loans is _____2.990% to _____8.790% and, the gross margin for all Six Month LIBOR Loans when added to the current index, creates the fully-indexed range;]
(xvi) No Mortgage Loan has a remaining term in excess of 360 months;
(xvii) With respect to each Mortgage LoanLoan in Group II, each Mortgagor's debt-to-income ratio will qualify for the related Originator's underwriting guidelines for a similar credit grade borrower when the related Mortgage Loan in Group II is at a rate equal to the applicable initial Coupon Rate plus 2%;]
(xviii) There is no proceeding pending or to the best of the Seller's knowledge threatened for the total or partial condemnation of any Property. No Property is damaged by waste, fire, earthquake or earth movement, windstorm, flood, other types of water damage, tornado, or other casualty so as to affect adversely the value of such Property as security for the Mortgage Loans or the use for which the premises were intended and each Property is free of material damage and in good repair;
(xix) Each Mortgage Loan complies complies, and at all times has complied, in all material respects with all applicable federal and state laws and regulations including without limitation the Truth-in-Lending Act, as amended;
(xx) Each Mortgage Loan is secured by a Property having an appraised value of less than $__________477,000.00;
(xxi) The first Due Date of each Initial Mortgage Loan is no later than _________ _October 1, 199_; and1998;
(xxii) On the Closing Startup Day with respect to each Initial Mortgage Loan and on the related Subsequent Transfer Date with respect to each Subsequent Mortgage Loan, the Issuer Trustee will have good title on behalf of the Trust to each Mortgage Loan transferred on such date.date free and clear of all liens, encumbrances, mortgages or rights of others; and
(b) Upon the discovery by the Issuer, the Seller, the Servicer, the Note Insurer, the Owner Trustee Certificate Insurer or the Indenture Trustee of a breach of any of the representations and warranties made herein in respect of any Mortgage Loan, without regard to any limitation set forth in such representation or warranty concerning the knowledge of the Seller or any related Originator as to the facts stated therein, which materially and adversely affects the interests of the Owners or of the Note Certificate Insurer in such Mortgage Loan the party discovering such breach shall give prompt written notice to the other parties hereto and the Note Certificate Insurer, as their interests may appear. The Servicer shall promptly notify the related Originator of such breach and request that such Originator cure such breach or take the actions described in Section 2.4(b3.4(b) hereof within the time periods required thereby, and if such Originator does not cure such breach in all material respects, the Seller shall cure such breach or take such actions. Except as set forth in Section 2.43.4, the obligations of the Seller or Servicer, as the case may be, shall be limited to the remedies for cure set forth in Section 2.4 3.4 with respect to any Mortgage Loan as to which such a breach has occurred and is continuing; the remedies set forth in Section 2.4 3.4 shall constitute the sole remedy with respect to such breach available to the Owners, the Indenture Trustee and the Note Certificate Insurer. The Seller acknowledges that a breach of any representation or warranty (x) relating to marketability of title sufficient to transfer unencumbered title to a Mortgage Loan and (y) relating to enforceability of the Mortgage Loan against the related Mortgagor or Property is a priori the breach of a representation or warranty which "materially and adversely affects the interests of the Owners or of the Note Certificate Insurer" in such Mortgage Loan.
Appears in 1 contract
Samples: Pooling and Servicing Agreement (First Alliance Mortgage Loan Trust 1998-3)
Representations and Warranties of the Seller with Respect to the Mortgage Loans. (a) The Seller makes the following representations and warranties as to the Mortgage Loans on which the Note Certificate Insurer relies in issuing the Note Certificate Insurance PolicyPolicies. Such representations and warranties speak as of the Closing Cut-Off Date (with respect to the Initial Mortgage Loans) and as of the respective Subsequent Cut-Off Date (with respect to the Subsequent Mortgage Loans) but shall survive the sale, transfer, and assignment of the related Mortgage Loans to the IssuerTrust:
(i) The information with respect to each Initial Mortgage Loan and Subsequent Mortgage Loan set forth in the related Schedule of Mortgage Loans is true and correct as of the Cut-Off Date (or in the case of the Subsequent Mortgage Loans, on the related Subsequent Transfer Date); the Group I Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $_____________42,461,485.13 and the Group II Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $27,286,863.23.
(ii) All of the original or certified documentation set forth in Section 2.5 3.5 (including all material documents related thereto) with respect to each Initial Mortgage Loan has been or will be delivered to the Indenture Trustee on the Closing Date Startup Day (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Transfer Date) or as otherwise provided in Section 2.53.5;
(iii) Each Mortgage Loan is being serviced by the Servicer or a Servicer Affiliate;
(iv) The Note related to each Initial Mortgage Loan in Group I bears a fixed Coupon Rate of at least 7.99% per annum and the Note related to each Mortgage Loan in Group II bears a [current] current Coupon Rate of at least ______6.34% per annum;
(v) No None of the Initial Mortgage Loans in either Group I or Group II were more than ____% of the Mortgage Loans were 30 or more days Delinquent;.
(vi) As of the Cut-Off Date, no more than ____1.41% of the Group I Original Aggregate Loan Balance of the Mortgage Loans is secured by Properties located within any single zip code area;, and no more than 1.91% of the Group II Original Aggregate Loan Balance is secured by Properties located within any single zip code area.
(vii) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform, in all material respects, to the description thereof set forth in the Registration Statement, the Prospectus and the Prospectus Supplement;
(viii) As of the Cut-Off Date, no more than ____1.56% and 3.75% of the Group I Original Aggregate Loan Balance is and the Group II Original Aggregate Loan Balance, respectively, are secured by condominiums, townhouses, or planned unit developments;
(ix) As of the Cut-Off Date, no more than ____2.65% and 4.28% of the Group I Original Aggregate Loan Balance is and the Group II Original Aggregate Loan Balance, respectively, are secured by investor-owned Properties;
(x) The credit underwriting guidelines applicable to each Mortgage Loan conform in all material respects to the description thereof set forth in the ProspectusProspectus and the Prospectus Supplement;
(xi) No funds provided to borrower from a Second Mortgage Loan originated by the Seller were concurrently used as a down payment for a First Mortgage Loan originated by the Seller;
(xii) All of the Mortgage Notes Loans in Group I and Group II are actuarial loans;
(xiii) No more than ____All of the Group II Mortgage Loans are First Mortgage Loans, and 99.41% of the Original Aggregate Loan Balance, is secured by Second Group I Mortgage Loans are First Mortgage Loans. The liens on the related First Mortgage Loans are subject only to any exceptions to title set forth in the title insurance policy, which exceptions are generally acceptable to mortgage lending companies, as applicable, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely affect the benefits of the security intended to be provided by such Mortgage. The lien on each junior Mortgage Loan is subject to any related Senior Liens, and to the exceptions to title described above;
(xiv) As of the Cut-Off Date, ____% all of the Mortgage Loans in Group II were Six Month LIBOR Loans or 2/28 Loans and had interest rates which were not fully indexed;]
(xv) The gross margin range for the Six Month LIBOR Loans is _____3.95% to _____8.40% and, and the gross margin for all Six Month LIBOR Loans when added to the current index, creates the fully-indexed rangerange for the Six Month LIBOR Loans;]
(xvi) The gross margin range for the 2/28 Loans is 4.75% to 6.75%, and the gross margin for all 2/28 Loans when added to the current index, creates the fully-indexed range for the 2/28 Loans.
(xvii) No Mortgage Loan has a remaining term in excess of 360 months;
(xviixviii) With respect to each Mortgage LoanLoan in Group II, each Mortgagor's debt-to-income ratio will qualify for the related Originator's underwriting guidelines for a similar credit grade borrower when the related Mortgage Loan in Group II is at a rate equal to (i) the applicable initial Coupon Rate in the case of 2/28 Loans and (ii) the applicable initial Coupon Rate plus 22.0%, in the case of Six Month LIBOR Loans;]
(xviiixix) There is no proceeding pending or to the best of the Seller's knowledge threatened for the total or partial condemnation of any Property. No Property is damaged by waste, fire, earthquake or earth movement, windstorm, flood, other types of water damage, tornado, or other casualty so as to affect adversely the value of such Property as security for the Mortgage Loans or the use for which the premises were intended and each Property is free of material damage and in good repair;
(xixxx) Each The origination and servicing of each Mortgage Loan complies complies, and at all times has complied, in all material respects with all applicable federal and state laws and regulations including without limitation the Truth-in-Lending Act, as amended;
(xxxxi) Each Mortgage Loan is secured by a Property having an appraised value Appraised Value of less than $__________1,200,000 or less;
(xxixxii) The first Due Date of each Initial Mortgage Loan is no later than _________ _September 1, 199_; and1999;
(xxiixxiii) On the Closing Startup Day with respect to each Initial Mortgage Loan and on the related Subsequent Transfer Date with respect to each Subsequent Mortgage Loan, the Issuer Trustee will have good title on behalf of the Trust to each Mortgage Loan transferred on such datedate free and clear of all liens, encumbrances, mortgages or rights of others; and
(xxiv) Each Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A) of the Code and Treasury Regulations
Section 1. 860G- 2(a)(1).
(bxxv) Upon The Seller and any Originator complied with all applicable federal and state laws and regulations in connection with the discovery by origination of the IssuerMortgage Loan;
(xxvi) No more than 9.32% and 11.99% of the Initial Mortgage Loans in Group I and Group II, respectively, were originated on an "alternative documentation" basis;
(xxvii) No more than 15.46% and 28.69% of the Initial Mortgage Loans in Group I and Group II, respectively, were originated on a "non-conforming documentation" basis;
(xxviii) No fraud, error, omission, misrepresentation or negligence with respect to the origination of a Mortgage Loan has taken place on the part of any person, including, without limitation, the Mortgagor, the Originator, the Seller, the Servicer, the Note Insurer, the Owner Trustee or the Indenture Trustee of a breach of any of the representations and warranties made herein in respect of any Mortgage Loan, without regard to any limitation set forth in such representation or warranty concerning the knowledge of the Seller appraiser or any related Originator as to other party involved in the facts stated therein, which materially and adversely affects the interests of the Owners or of the Note Insurer in such Mortgage Loan the party discovering such breach shall give prompt written notice to the other parties hereto and the Note Insurer, as their interests may appear. The Servicer shall promptly notify the related Originator of such breach and request that such Originator cure such breach or take the actions described in Section 2.4(b) hereof within the time periods required thereby, and if such Originator does not cure such breach in all material respects, the Seller shall cure such breach or take such actions. Except as set forth in Section 2.4, the obligations of the Seller or Servicer, as the case may be, shall be limited to the remedies for cure set forth in Section 2.4 with respect to any Mortgage Loan as to which such a breach has occurred and is continuing; the remedies set forth in Section 2.4 shall constitute the sole remedy with respect to such breach available to the Owners, the Indenture Trustee and the Note Insurer. The Seller acknowledges that a breach of any representation or warranty (x) relating to marketability of title sufficient to transfer unencumbered title to a Mortgage Loan and (y) relating to enforceability origination of the Mortgage Loan against Loan;
(xxix) Each Property consists of a single parcel of residential real property that is separately assessed for tax purposes and that is owned by the related Mortgagor in fee simple absolute, and each Property is improved by a one- to four-family residential dwelling, which does not include cooperatives or mobile homes and does not constitute other than real property under state law. No Property is a priori the breach of a representation or warranty which "materially and adversely affects the interests of the Owners or of the Note Insurer" in such Mortgage Loanmanufactured housing unit.
Appears in 1 contract
Samples: Pooling and Servicing Agreement (First Alliance Mortgage Loan Trust 1999-2)
Representations and Warranties of the Seller with Respect to the Mortgage Loans. (a) The Seller makes the following representations and warranties as to the Mortgage Loans on which the Note Insurer relies in issuing the Note Insurance Policy. Such representations and warranties speak as of the Closing Date (with respect to the Initial Mortgage Loans) and as of the respective Subsequent Cut-Off Date (with respect to the Subsequent Mortgage Loans) but shall survive the sale, transfer, and assignment of the related Mortgage Loans to the Issuer:
(i) The information with respect to each Initial Mortgage Loan and Subsequent Mortgage Loan set forth in the related Schedule of Mortgage Loans is true and correct as of the Cut-Off Date (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Cut-Off Date); the Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $_____________42,490,099.85.
(ii) All of the original or certified documentation set forth in Section 2.5 (including all material documents related thereto) with respect to each Initial Mortgage Loan has been or will be delivered to the Indenture Trustee on the Closing Date (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Transfer Date) or as otherwise provided in Section 2.5;
(iii) Each Mortgage Loan is being serviced by the Servicer or a Servicer Affiliate;
(iv) The Mortgage Note related to each Initial Mortgage Loan bears a [current] current Coupon Rate of at least ______7.990% per annum;
(v) No more than ____2.70% of the Initial Mortgage Loans were 30 or more days Delinquent;
(vi) As of the Cut-Off Date, no more than ____1.25% of the Original Aggregate Loan Balance of the Mortgage Loans is secured by Properties located within any single zip code area;
(vii) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform, in all material respects, to the description thereof set forth in the Registration Statement;
(viii) As of the Cut-Off Date, no more than ____2.00% of the Original Aggregate Loan Balance is secured by condominiums, townhouses, condominiums or planned unit developments;
(ix) As of the Cut-Off Date, no more than ____2.22% Original Aggregate Loan Balance is secured by investor-owned Properties;
(x) The credit underwriting guidelines applicable to each Mortgage Loan conform in all material respects to the description thereof set forth in the Prospectus;
(xi) No funds provided to any borrower from a Second Mortgage Loan originated by the Seller were concurrently used as a down payment for a First Mortgage Loan originated by the Seller;
(xii) All of the Mortgage Notes Loans are actuarial loans;
(xiii) No more than ____1.59% of the Original Aggregate Loan Balance, Balance is secured by Second Mortgage Loans;
(xiv) As of the Cut-Off Date, ____% of the Mortgage Loans had interest rates which were not fully indexed;]
(xv) The gross margin range for Six Month LIBOR Loans is _____% to _____% and, the gross margin for all Six Month LIBOR Loans when added to the current index, creates the fully-indexed range;]
(xvi) No Mortgage Loan has a remaining term in excess of 360 months;
(xviixv) With respect to each Mortgage Loan, each Mortgagor's debt-to-income ratio will qualify for the related Originator's underwriting guidelines for a similar credit grade borrower when the related Mortgage Loan is at a rate equal to the applicable initial Coupon Rate plus 2%;]
(xviiixvi) There is no proceeding pending or to the best of the Seller's knowledge threatened for the total or partial condemnation of any Property. No Property is damaged by waste, fire, earthquake or earth movement, windstorm, flood, other types of water damage, tornado, or other casualty so as to affect adversely the value of such Property as security for the Mortgage Loans or the use for which the premises were intended and each Property is in good repair;
(xixxvii) Each Mortgage Loan complies in all material respects with all applicable federal and state laws including without limitation the Truth-in-Lending Act, as amended;
(xxxviii) Each Mortgage Loan is secured by a Property having an appraised value of less than $__________600,000;
(xxixix) Each Mortgage Note with respect to the Mortgage Loans will provide for a schedule of substantially level and equal monthly payments which are sufficient to amortize fully the principal balance of such Mortgage Note on or before its maturity date, except for 36 Mortgage Loans in the amount of $2,101,894.70 representing 4.95% of the aggregate Loan Balance of the Mortgage Loans as of the Cut-Off Date, which may provide for a"balloon" payment due at the end of the 15th year;
(xx) The first Due Date of each Mortgage Loan is no later than _________ _July 1, 199_1998; and
(xxiixxi) On the Closing Date with respect to each Initial Mortgage Loan and on each Subsequent Transfer Date with respect to each Subsequent Mortgage Loan, the Issuer will have good title to each Mortgage Loan transferred on such date.
(b) Upon the discovery by the Issuer, the Seller, the Servicer, the Custodian, the Note Insurer, the Owner Trustee or the Indenture Trustee of a breach of any of the representations and warranties made herein in respect of any Mortgage Loan, without regard to any limitation set forth in such representation or warranty concerning the knowledge of the Seller or any related Originator as to the facts stated therein, which materially and adversely affects the interests of the Owners or of the Note Insurer in such Mortgage Loan the party discovering such breach shall give prompt written notice to the other parties hereto and the Note Insurer, as their interests may appear. The Servicer shall promptly notify the related Originator of such breach and request that such Originator cure such breach or take the actions described in Section 2.4(b) hereof within the time periods required thereby, and if such Originator does not cure such breach in all material respects, the Seller shall cure such breach or take such actions. Except as set forth in Section 2.4, the obligations of the Seller or Servicer, as the case may be, shall be limited to the remedies for cure set forth in Section 2.4 with respect to any Mortgage Loan as to which such a breach has occurred and is continuing; the remedies set forth in Section 2.4 shall constitute the sole remedy with respect to such breach available to the Owners, the Indenture Trustee and the Note Insurer. The Seller acknowledges that a breach of any representation or warranty (x) relating to marketability of title sufficient to transfer unencumbered title to a Mortgage Loan and (y) relating to enforceability of the Mortgage Loan against the related Mortgagor or Property is a priori the breach of a representation or warranty which "materially which"materially and adversely affects the interests of the Owners or of the Note Insurer" in such Mortgage Loan.
Appears in 1 contract
Samples: Sale and Servicing Agreement (First Alliance Mortgage Loan Trust 1998-1f)
Representations and Warranties of the Seller with Respect to the Mortgage Loans. (a) The Seller makes the following representations and warranties as to the Mortgage Loans on which the Note Certificate Insurer relies in issuing the Note Certificate Insurance PolicyPolicies. Such representations and warranties speak as of the Closing Startup Day (with respect to the Initial Mortgage Loans) and as of the respective Subsequent Transfer Date (with respect to the Subsequent Mortgage Loans) but shall survive the sale, transfer, and assignment of the related Mortgage Loans to the IssuerTrust:
(i) The information with respect to each Initial Mortgage Loan and Subsequent Mortgage Loan set forth in the related Schedule of Mortgage Loans is true and correct as of the Cut-Off Date (or in the case of the Subsequent Mortgage Loans, on the related Subsequent Transfer Date); the Group I Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $_____________74,677,660.67 and the Group II Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $20,466,013.71.
(ii) All of the original or certified documentation set forth in Section 2.5 3.5 (including all material documents related thereto) with respect to each Initial Mortgage Loan has been or will be delivered to the Indenture Trustee on the Closing Date Startup Day (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Transfer Date) or as otherwise provided in Section 2.53.5;
(iii) Each Mortgage Loan is being serviced by the Servicer or a Servicer Affiliate;
(iv) The Note related to each Initial Mortgage Loan in Group I bears a fixed Coupon Rate of at least 6.49% per annum and the Note related to each Mortgage Loan in Group II bears a [current] current Coupon Rate of at least ______5.89% per annum;
(v) No more than ____1.36% of the Initial Mortgage Loans in Group I were 30 or more 30-59 days Delinquent and, none of the Initial Mortgage Loans in Group II were 30- 59 days Delinquent;.
(vi) As of the Cut-Off Date, no more than ____0.82% of the Group I Original Aggregate Loan Balance of the Mortgage Loans is secured by Properties located within any single zip code area;, and no more than 2.41% of the Group II Original Aggregate Loan Balance is secured by Properties located within any single zip code area.
(vii) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform, in all material respects, to the description thereof set forth in the Registration StatementStatement and Prospectus Supplement;
(viii) As of the Cut-Off Date, no more than ____1.65% and 3.72% of the Group I Original Aggregate Loan Balance is and the Group II Original Aggregate Loan Balance, respectively, are secured by condominiums, townhouses, or planned unit developments;
(ix) As of the Cut-Off Date, no more than ____4.00% and 1.86% of the Group I Original Aggregate Loan Balance is and the Group II Original Aggregate Loan Balance, respectively, are secured by investor-owned Properties;
(x) The credit underwriting guidelines applicable to each Mortgage Loan conform in all material respects to the description thereof set forth in the Prospectus;
(xi) No funds provided to borrower from a Second Mortgage Loan originated by the Seller were concurrently used as a down payment for a First Mortgage Loan originated by the Seller;
(xii) All of the Mortgage Notes Loans in Group I and Group II are actuarial loans;
(xiii) No more than ____All of the Group II Mortgage Loans are First Mortgage Loans, and 98.62% of the Original Aggregate Loan BalanceGroup I Mortgage Loans are First Mortgage Loans subject only to the exceptions to title set forth in the title insurance policy, is secured with respect to the related Mortgage Loan, which exceptions are generally acceptable to mortgage lending companies, as applicable, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely affect the benefits of the security intended to be provided by Second Mortgage Loanssuch Mortgage;
(xiv) As of the Cut-Off Date, ____% all of the Mortgage Loans in Group II had interest rates which were not fully indexed;]
(xv) The gross margin range for Six Month LIBOR Loans is _____3.990% to _____9.012% and, the gross margin for all Six Month LIBOR Loans when added to the current index, creates the fully-indexed range;]
(xvi) No Mortgage Loan has a remaining term in excess of 360 months;
(xvii) With respect to each Mortgage LoanLoan in Group II, each Mortgagor's debt-to-income ratio will qualify for the related Originator's underwriting guidelines for a similar credit grade borrower when the related Mortgage Loan in Group II is at a rate equal to the applicable initial Coupon Rate plus 2%;]
(xviii) There is no proceeding pending or to the best of the Seller's knowledge threatened for the total or partial condemnation of any Property. No Property is damaged by waste, fire, earthquake or earth movement, windstorm, flood, other types of water damage, tornado, or other casualty so as to affect adversely the value of such Property as security for the Mortgage Loans or the use for which the premises were intended and each Property is free of material damage and in good repair;
(xix) Each Mortgage Loan complies complies, and at all times has complied, in all material respects with all applicable federal and state laws and regulations including without limitation the Truth-in-Lending Act, as amended;
(xx) Each Mortgage Loan is secured by a Property having an appraised value of less than $__________822,000 or less;
(xxi) The first Due Date of each Initial Mortgage Loan is no later than _________ _January 1, 199_; and1999;
(xxii) On the Closing Startup Day with respect to each Initial Mortgage Loan and on the related Subsequent Transfer Date with respect to each Subsequent Mortgage Loan, the Issuer Trustee will have good title on behalf of the Trust to each Mortgage Loan transferred on such datedate free and clear of all liens, encumbrances, mortgages or rights of others; and
(xxiii) Each Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1).
(b) Upon the discovery by the Issuer, the Seller, the Servicer, the Note InsurerMaster Servicer, the Owner Trustee Certificate Insurer or the Indenture Trustee of a breach of any of the representations and warranties made herein in respect of any Mortgage Loan, without regard to any limitation set forth in such representation or warranty concerning the knowledge of the Seller or any related Originator as to the facts stated therein, which materially and adversely affects the interests of the Owners or of the Note Certificate Insurer in such Mortgage Loan the party discovering such breach shall give prompt written notice to the other parties hereto and the Note Certificate Insurer, as their interests may appear. The Servicer shall promptly notify the related Originator of such breach and request that such Originator cure such breach or take the actions described in Section 2.4(b3.4(b) hereof within the time periods required thereby, and if such Originator does not cure such breach in all material respects, the Seller shall cure such breach or take such actions. Except as set forth in Section 2.43.4, the obligations of the Seller or Servicer, as the case may be, shall be limited to the remedies for cure set forth in Section 2.4 3.4 with respect to any Mortgage Loan as to which such a breach has occurred and is continuing; the remedies set forth in Section 2.4 3.4 shall constitute the sole remedy with respect to such breach available to the Owners, the Indenture Trustee and the Note Certificate Insurer. The Seller acknowledges that a breach of any representation or warranty (x) relating to marketability of title sufficient to transfer unencumbered title to a Mortgage Loan and (y) relating to enforceability of the Mortgage Loan against the related Mortgagor or Property is a priori the breach of a representation or warranty which "materially and adversely affects the interests of the Owners or of the Note Insurer" in such Mortgage Loan.
Appears in 1 contract
Samples: Pooling and Servicing Agreement (First Alliance Mortgage Loan Trust 1998-4)
Representations and Warranties of the Seller with Respect to the Mortgage Loans. (a) The Seller makes the following representations and warranties as to the Mortgage Loans on which the Note Insurer relies in issuing the Note Insurance Policy. Such representations and warranties speak as of the Closing Date (with respect to the Initial Mortgage Loans) and as of the respective Subsequent Cut-Off Date (with respect to the Subsequent Mortgage Loans) but shall survive the sale, transfer, and assignment of the related Mortgage Loans to the Issuer:
(i) The information with respect to each Initial Mortgage Loan and Subsequent Mortgage Loan set forth in the related Schedule of Mortgage Loans is true and correct as of the CutOff Date (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Cut-Off Date); the Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $_____________42,199,745.53.
(ii) All of the original or certified documentation set forth in Section 2.5 (including all material documents related thereto) with respect to each Initial Mortgage Loan has been or will be delivered to the Indenture Trustee on the Closing Date (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Transfer Date) or as otherwise provided in Section 2.5;
(iii) Each Mortgage Loan is being serviced by the Servicer or a Servicer Affiliate;
(iv) The Mortgage Note related to each Initial Mortgage Loan bears a [current] current Coupon Rate of at least ______6.990% per annum;
(v) No more than ____1.04% of the Initial Mortgage Loans were 30 or more days Delinquent;
(vi) As of the Cut-Off Date, no more than ____0.844% of the Original Aggregate Loan Balance of the Mortgage Loans is secured by Properties located within any single zip code area;
(vii) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform, in all material respects, to the description thereof set forth in the Registration Statement;
(viii) As of the Cut-Off Date, no more than ____2.26% of the Original Aggregate Loan Balance is secured by condominiums, townhouses, or planned unit developments;
(ix) As of the Cut-Off Date, no more than ____4.78% Original Aggregate Loan Balance is secured by investor-owned Properties;
(x) The credit underwriting guidelines applicable to each Mortgage Loan conform in all material respects to the description thereof set forth in the Prospectus;
(xi) No funds provided to borrower from a Second All of the Mortgage Loan originated by the Seller were concurrently used as a down payment for a First Mortgage Loan originated by the SellerLoans are actuarial loans;
(xii) All of the Mortgage Notes Loans are actuarial loans;First Mortgage Loans.
(xiii) No more than ____% of the Original Aggregate Loan Balance, is secured by Second Mortgage Loans;
(xiv) As of the Cut-Off Date, ____% substantially all of the Mortgage Loans had interest rates which were not fully indexed;]
(xvxiv) The gross margin range for Six Month LIBOR Loans is _____3.650% to _____8.490% and, the gross margin for all Six Month LIBOR Loans when added to the current index, creates the fully-fully- indexed range;]
(xvixv) No Mortgage Loan has a remaining term in excess of 360 months;
(xviixvi) With respect to each Mortgage Loan, each Mortgagor's debt-to-income ratio will qualify for the related Originator's underwriting guidelines for a similar credit grade borrower when the related Mortgage Loan is at a rate equal to the applicable initial Coupon Rate plus 2%;]
(xviiixvii) There is no proceeding pending or to the best of the Seller's knowledge threatened for the total or partial condemnation of any Property. No Property is damaged by waste, fire, earthquake or earth movement, windstorm, flood, other types of water damage, tornado, or other casualty so as to affect adversely the value of such Property as security for the Mortgage Loans or the use for which the premises were intended and each Property is in good repair;
(xixxviii) Each Mortgage Loan complies in all material respects with all applicable federal and state laws including without limitation the Truth-in-Lending Act, as amended;
(xxxix) Each Mortgage Loan is secured by a Property having an appraised value of less than $__________600,000;
(xxixx) The first Due Date of each Mortgage Loan is no later than _________ _July 1, 199_1998; and
(xxiixxi) On the Closing Date with respect to each Initial Mortgage Loan and on each Subsequent Transfer Date with respect to each Subsequent Mortgage Loan, the Issuer will have good title to each Mortgage Loan transferred on such date.
(b) Upon the discovery by the Issuer, the Seller, the Servicer, the Custodian, the Note Insurer, the Owner Trustee or the Indenture Trustee of a breach of any of the representations and warranties made herein in respect of any Mortgage Loan, without regard to any limitation set forth in such representation or warranty concerning the knowledge of the Seller or any related Originator as to the facts stated therein, which materially and adversely affects the interests of the Owners or of the Note Insurer in such Mortgage Loan the party discovering such breach shall give prompt written notice to the other parties hereto and the Note Insurer, as their interests may appear. The Servicer shall promptly notify the related Originator of such breach and request that such Originator cure such breach or take the actions described in Section 2.4(b) hereof within the time periods required thereby, and if such Originator does not cure such breach in all material respects, the Seller shall cure such breach or take such actions. Except as set forth in Section 2.4, the obligations of the Seller or Servicer, as the case may be, shall be limited to the remedies for cure set forth in Section 2.4 with respect to any Mortgage Loan as to which such a breach has occurred and is continuing; the remedies set forth in Section 2.4 shall constitute the sole remedy with respect to such breach available to the Owners, the Indenture Trustee and the Note Insurer. The Seller acknowledges that a breach of any representation or warranty (x) relating to marketability of title sufficient to transfer unencumbered title to a Mortgage Loan and (y) relating to enforceability of the Mortgage Loan against the related Mortgagor or Property is a priori the breach of a representation or warranty which "materially and adversely affects the interests of the Owners or of the Note Insurer" in such Mortgage Loan.
Appears in 1 contract
Samples: Sale and Servicing Agreement (First Alliance Mortgage Loan Trust 1998-1a)
Representations and Warranties of the Seller with Respect to the Mortgage Loans. (a) The Seller makes the following representations and warranties as to the Mortgage Loans on which the Note Certificate Insurer relies in issuing the Note Certificate Insurance PolicyPolicies. Such representations and warranties speak as of the Closing Cut-Off Date (with respect to the Initial Mortgage Loans) and as of the respective Subsequent Cut-Off Date (with respect to the Subsequent Mortgage Loans) but shall survive the sale, transfer, and assignment of the related Mortgage Loans to the IssuerTrust:
(i) The information with respect to each Initial Mortgage Loan and Subsequent Mortgage Loan set forth in the related Schedule of Mortgage Loans is true and correct as of the Cut-Off Date (or in the case of the Subsequent Mortgage Loans, on the related Subsequent Transfer Date); the Group I Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $_____________65,528,894.36 and the Group II Original Aggregate Loan Balance in the Trust as of the Cut-Off Date is $24,505,006.73.
(ii) All of the original or certified documentation set forth in Section 2.5 3.5 (including all material documents related thereto) with respect to each Initial Mortgage Loan has been or will be delivered to the Indenture Trustee on the Closing Date Startup Day (or in the case of the Subsequent Mortgage Loans, as of the related Subsequent Transfer Date) or as otherwise provided in Section 2.53.5;
(iii) Each Mortgage Loan is being serviced by the Servicer or a Servicer Affiliate;
(iv) The Note related to each Initial Mortgage Loan in Group I bears a fixed Coupon Rate of at least 6.00% per annum and the Note related to each Mortgage Loan in Group II bears a [current] current Coupon Rate of at least ______6.99% per annum;
(v) No more than ____1.46% of the Initial Mortgage Loans in Group I were 30 30-59 days Delinquent and, no more than 0.46% of the Initial Mortgage Loans in Group II were 30-59 days Delinquent. None of the Initial Mortgage Loans in either Group I or Group II were 60 or more days Delinquent;.
(vi) As of the Cut-Off Date, no more than ____0.95% of the Group I Original Aggregate Loan Balance of the Mortgage Loans is secured by Properties located within any single zip code area;, and no more than 1.54% of the Group II Original Aggregate Loan Balance is secured by Properties located within any single zip code area.
(vii) Each Mortgage Loan conforms, and all such Mortgage Loans in the aggregate conform, in all material respects, to the description thereof set forth in the Registration StatementStatement and Prospectus Supplement;
(viii) As of the Cut-Off Date, no more than ____2.51% and 5.19% of the Group I Original Aggregate Loan Balance is and the Group II Original Aggregate Loan Balance, respectively, are secured by condominiums, townhouses, or planned unit developments;
(ix) As of the Cut-Off Date, no more than ____3.04% and 1.73% of the Group I Original Aggregate Loan Balance is and the Group II Original Aggregate Loan Balance, respectively, are secured by investor-owned Properties;
(x) The credit underwriting guidelines applicable to each Mortgage Loan conform in all material respects to the description thereof set forth in the Prospectus;
(xi) No funds provided to borrower from a Second Mortgage Loan or a Third Mortgage Loan originated by the Seller were concurrently used as a down payment for a First Mortgage Loan or a Second Mortgage Loan, as applicable, originated by the Seller;
(xii) All of the Mortgage Notes Loans in Group I and Group II are actuarial loans;
(xiii) No more than ____All of the Group II Mortgage Loans are First Mortgage Loans, and 97.69% of the Original Aggregate Loan Balance, is secured by Second Group I Mortgage Loans are First Mortgage Loans. The liens on the related First Mortgage Loans are subject only to any exceptions to title set forth in the title insurance policy, which exceptions are generally acceptable to mortgage lending companies, as applicable, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely affect the benefits of the security intended to be provided by such Mortgage. The lien on each junior Mortgage Loan is subject to any related Senior Liens, and to the exceptions to title described above;
(xiv) As of the Cut-Off Date, ____% all of the Mortgage Loans in Group II were Six Month LIBOR Loans or 2/28 Loans and had interest rates which were not fully indexed;]
(xv) The gross margin range for the Six Month LIBOR Loans is _____4.49% to _____% and8.79%, and the gross margin for all Six Month LIBOR Loans when added to the current index, creates the fully-indexed rangerange for the Six Month LIBOR Loans;]
(xvi) The gross margin range for the 2/28 Loans is 5.50% to 6.25%, and the gross margin for all 2/28 Loans when added to the current index, creates the fully-indexed range for the 2/28 Loans.
(xvii) No Mortgage Loan has a remaining term in excess of 360 months;
(xviixviii) With respect to each Mortgage LoanLoan in Group II, each Mortgagor's debt-to-income ratio will qualify for the related Originator's underwriting guidelines for a similar credit grade borrower when the related Mortgage Loan in Group II is at a rate equal to the applicable initial Coupon Rate plus 2%;]
(xviiixix) There is no proceeding pending or to the best of the Seller's knowledge threatened for the total or partial condemnation of any Property. No Property is damaged by waste, fire, earthquake or earth movement, windstorm, flood, other types of water damage, tornado, or other casualty so as to affect adversely the value of such Property as security for the Mortgage Loans or the use for which the premises were intended and each Property is free of material damage and in good repair;
(xixxx) Each The origination and servicing of each Mortgage Loan complies complies, and at all times has complied, in all material respects with all applicable federal and state laws and regulations including without limitation the Truth-in-Lending Act, as amended;
(xxxxi) Each Mortgage Loan is secured by a Property having an appraised value of less than $__________604,500 or less;
(xxixxii) The first Due Date of each Initial Mortgage Loan is no later than _________ _June 1, 199_; and1999;
(xxiixxiii) On the Closing Startup Day with respect to each Initial Mortgage Loan and on the related Subsequent Transfer Date with respect to each Subsequent Mortgage Loan, the Issuer Trustee will have good title on behalf of the Trust to each Mortgage Loan transferred on such datedate free and clear of all liens, encumbrances, mortgages or rights of others; and
(xxiv) Each Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G- 2(a)(1).
(b) Upon the discovery by the Issuer, the Seller, the Servicer, the Note InsurerOversight Agent, the Owner Trustee Certificate Insurer or the Indenture Trustee of a breach of any of the representations and warranties made herein in respect of any Mortgage Loan, without regard to any limitation set forth in such representation or warranty concerning the knowledge of the Seller or any related Originator as to the facts stated therein, which materially and adversely affects the interests of the Owners or of the Note Certificate Insurer in such Mortgage Loan the party discovering such breach shall give prompt written notice to the other parties hereto and the Note Certificate Insurer, as their interests may appear. The Servicer shall promptly notify the related Originator of such breach and request that such Originator cure such breach or take the actions described in Section 2.4(b3.4(b) hereof within the time periods required thereby, and if such Originator does not cure such breach in all material respects, the Seller shall cure such breach or take such actionsactions within the time periods specified in Section 3.4. Except as set forth in Section 2.43.4, the obligations of the Seller or Servicer, as the case may be, shall be limited to the remedies for cure set forth in Section 2.4 3.4 with respect to any Mortgage Loan as to which such a breach has occurred and is continuing; the remedies set forth in Section 2.4 3.4 shall constitute the sole remedy with respect to such breach available to the Owners, the Indenture Trustee and the Note Certificate Insurer. The ; provided, however, that the Seller acknowledges that a shall indemnify the Trust for any fines, fees and penalties incurred by the Trust by reason of the Seller's breach of any the representation or warranty (xset forth in Section 3.3(a)(xix) relating to marketability of title sufficient to transfer unencumbered title to a Mortgage Loan and (y) relating to enforceability of the Mortgage Loan against the related Mortgagor or Property is a priori the breach of a representation or warranty which "materially and adversely affects the interests of the Owners or of the Note Insurer" in such Mortgage Loanhereof.
Appears in 1 contract
Samples: Pooling and Servicing Agreement (First Alliance Mortgage Loan Trust 1999-1)
