Representations and Warranties Regarding Loans. After a diligent investigation and inquiry, Seller further represents and warrants to Arc that as of the Purchase Date: A. Each Loan has been originated by Seller and Seller has complied with all of its obligations under this Agreement. Seller warrants that all loans under the terms of this agreement will be originated by the Seller; B. Seller has the authority to sell, transfer, and assign such Loan on the terms herein set forth; there has been no assignment, sale or pledge thereof by Seller, (except any pledge required pursuant to a line of credit agreement between Seller and its warehouse lender previously disclosed to Arc); and as of the Purchase Date, the Loan will be free and clear of liens, claims, security interests, or encumbrances of any type (including, but not limited to any pledge in favor of any warehouse lender); C. All Loans purchased by Arc comply with all of the FHA, VA, GNMA, FNMA, FHLMC, FHLB, USDA, Arc and applicable private investor regulations, requirements, guidelines and standards, and all representations and warranties required to be made by sellers therein are hereby made by Seller to Arc except to the extent Arc has agreed to provide non-delegated underwriting services to Seller with respect to the applicable Loans, in which case, the foregoing representation and warranty shall be not apply to such underwriting services rendered by Arc; D. All FHA Loans are fully insurable by FHA and a mortgage insurance certificate will be issued by FHA. All VA Loans are eligible for guaranty by VA and a loan guaranty certificate will be issued by VA. All Conventional Loans are insurable by private mortgage guaranty insurers, when required, and an appropriate certificate or other evidence of such insurance will be issued by the insurer. All USDA Loans are eligible for a USDA guaranty. There are no defenses, counter claims or rights of set-off affecting the validity or enforceability of any private mortgage insurance, USDA guaranty, FHA insurance or VA guaranty with respect to the Loan or eligibility of such Loan for insurance or guaranty. Where applicable, the representations and warranties in Section 4.2(d) shall be limited to the extent non-delegated underwriting services rendered by Seller relate to the insurability or eligibility for guaranty of any such applicable Loan; E. All FHA, USDA and VA Loans are eligible for inclusion in pools of mortgages for GNMA, FNMA or FHLMC mortgage-backed securities; F. With respect to the Mortgagor, the Property, or the Loan, there are no facts or circumstances that exist which could be reasonably expected to cause private institutional investors to regard the Loan as an unacceptable investment, cause the Loan to become delinquent, or adversely affect the value or marketability of the Property or the Loan; G. Seller has complied with all applicable federal, state, and local laws, rules ordinances, and regulations, including, but not limited to: (i) the Truth In Lending Act of 1969,as amended, and the Real Estate Settlement Procedures Act, including all required integrated disclosure rules; (ii) Federal Reserve Regulation X and Z; (iii) the Equal Credit Opportunity Act ('ECOA') and Federal Reserve Regulation B thereunder; (iv) the Fair Credit Reporting Act; (v) the Flood Disaster Protection Act of 1973 (as if it were a covered entity and regardless of whether Seller is specifically subject to such statute and/or regulations);
Appears in 2 contracts
Samples: Loan Purchase and Sale Agreement, Correspondent Seller Loan Purchase and Sale Agreement
Representations and Warranties Regarding Loans. After a diligent investigation and inquiry, Seller Xxxxxx further represents and warrants to Arc that as of the Purchase Date:
A. (A) Each Loan has been originated by Seller and Seller has complied with all of its obligations under this Agreement. Seller warrants that all loans under the terms of this agreement will be originated by the Seller;.
B. (B) Seller has the authority to sell, transfer, and assign such Loan on the terms herein set forth; there has been no assignment, sale or pledge thereof by Seller, (except any pledge required pursuant to a line of credit agreement between Seller and its warehouse lender previously disclosed to Arc); and as of the Purchase Date, the Loan will be free and clear of liens, claims, security interests, or encumbrances of any type (including, but not limited to any pledge in favor of any warehouse lender);. The Seller shall have transferred and sold all of its right, title and interest in and to each Mortgage Loan and the Purchaser will hold good, marketable and indefeasible title to, and be the owner of, each Mortgage Loan subject to no Lien.
C. (C) All Loans purchased by Arc comply with all of the FHA, VA, GNMA, FNMA, FHLMC, FHLB, USDA, Arc and applicable private investor regulations, requirements, guidelines and standards, and all representations and warranties required to be made by sellers therein are hereby made by Seller to Arc except to the extent Arc has agreed to provide non-delegated underwriting services to Seller with respect to the applicable Loans, in which case, the foregoing representation and warranty shall be not apply to such underwriting services rendered by Arc;.
D. (D) All FHA Loans are fully insurable by FHA and a mortgage insurance certificate will be issued by FHA. All VA Loans are eligible for guaranty by VA and a loan guaranty certificate will be issued by VA. All Conventional Loans are insurable by private mortgage guaranty insurers, when required, and an appropriate certificate or other evidence of such insurance will be issued by the insurer. All USDA Loans are eligible for a USDA guaranty. There are no defenses, including the defense of usury, counter claims or rights of set-off affecting the validity or enforceability of any private mortgage insurance, USDA guaranty, FHA insurance or VA guaranty with respect to the Loan or eligibility of such Loan for insurance or guaranty. Where applicable, the representations and warranties in Section 4.2(d) shall be limited to the extent non-non- delegated underwriting services rendered by Seller relate to the insurability or eligibility for guaranty of any such applicable Loan;.
E. (E) All FHA, USDA and VA Loans are eligible for inclusion in pools of mortgages for GNMA, FNMA or FHLMC mortgage-backed securities;.
F. (F) With respect to the Mortgagor, the Property, or the Loan, there are no facts or circumstances that exist which could be reasonably expected to cause private institutional investors to regard the Loan as an unacceptable investment, cause the Loan to become delinquent, or adversely affect the value or marketability of the Property or the Loan;.
G. (G) Seller has complied with all applicable federal, state, and local laws, rules ordinances, and regulations, including, but not limited to: (i) the Truth In Lending Act of 1969,as amended, and the Real Estate Settlement Procedures Act, including all required integrated disclosure rules; (ii) Federal Reserve Regulation P, X and Z; (iii) the Equal Credit Opportunity Act ('ECOA') and Federal Reserve Regulation B thereunder; (iv) the Fair Credit Reporting Act; (v) the Flood Disaster Protection Act of 1973 (as if it were a covered entity and regardless of whether Seller is specifically subject to such statute and/or regulations); (vi) the Fair Housing Act; (vii) the Home Mortgage Disclosure Act; (viii) the Financial Institutions Reform Recovery and Enforcement Act of 1989, all as amended, including all regulations issued pursuant thereto; (ix) the Housing and Economic Recovery Act ("HERA") of 2008; (x) the Xxxx- Xxxxx Xxxx Street Reform and Consumer Protection Act and any and all regulations issued in accordance therewith;
Appears in 2 contracts
Samples: Correspondent Seller Loan Purchase and Sale Agreement, Correspondent Seller Loan Purchase and Sale Agreement
Representations and Warranties Regarding Loans. After a diligent investigation and inquiry, Seller further represents and warrants to Arc that as of the Purchase Date:
A. Each Loan has been originated by Seller and Seller has complied with all of its obligations under this Agreement. Seller warrants that all loans under the terms of this agreement will be originated by the Seller;
B. Seller has the authority to sell, transfer, and assign such Loan on the terms herein set forth; there has been no assignment, sale or pledge thereof by Seller, (except any pledge required pursuant to a line of credit agreement between Seller and its warehouse lender previously disclosed to Arc); and as of the Purchase Date, the Loan will be free and clear of liens, claims, security interests, or encumbrances of any type (including, but not limited to any pledge in favor of any warehouse lender);
C. All Loans purchased by Arc comply with all of the FHA, VA, GNMA, FNMA, FHLMC, FHLB, USDA, Arc and applicable private investor regulations, requirements, guidelines and standards, and all representations and warranties required to be made by sellers therein are hereby made by Seller to Arc except to the extent Arc has agreed to provide non-delegated underwriting services to Seller with respect to the applicable Loans, in which case, the foregoing representation and warranty shall be not apply to such underwriting services rendered by Arc;
D. All FHA Loans are fully insurable by FHA and a mortgage insurance certificate will be issued by FHA. All VA Loans are eligible for guaranty by VA and a loan guaranty certificate will be issued by VA. All Conventional Loans are insurable by private mortgage guaranty insurers, when required, and an appropriate certificate or other evidence of such insurance will be issued by the insurer. All USDA Loans are eligible for a USDA guaranty. There are no defenses, counter claims or rights of set-off affecting the validity or enforceability of any private mortgage insurance, USDA guaranty, FHA insurance or VA guaranty with respect to the Loan or eligibility of such Loan for insurance or guaranty. Where applicable, the representations and warranties in Section 4.2(d) shall be limited to the extent non-delegated underwriting services rendered by Seller relate to the insurability or eligibility for guaranty of any such applicable Loan;
E. All FHA, USDA and VA Loans are eligible for inclusion in pools of mortgages for GNMA, FNMA or FHLMC mortgage-backed securities;
F. With respect to the Mortgagor, the Property, or the Loan, there are no facts or circumstances that exist which could be reasonably expected to cause private institutional investors to regard the Loan as an unacceptable investment, cause the Loan to become delinquent, or adversely affect the value or marketability of the Property or the Loan;
G. Seller has complied with all applicable federal, state, and local laws, rules ordinances, and regulations, including, but not limited to: (i) the Truth In Lending Act of 1969,as amended, and the Real Estate Settlement Procedures Act, including all required integrated disclosure rules; (ii) Federal Reserve Regulation P, X and Z; (iii) the Equal Credit Opportunity Act ('ECOA') and Federal Reserve Regulation B thereunder; (iv) the Fair Credit Reporting Act; (v) the Flood Disaster Protection Act of 1973 (as if it were a covered entity and regardless of whether Seller is specifically subject to such statute and/or regulations);
Appears in 1 contract
Samples: Loan Purchase and Sale Agreement
Representations and Warranties Regarding Loans. After a diligent investigation and inquiry, Seller Xxxxxx further represents and warrants to Arc that as of the related Purchase Date:Date(s):
A. (A) Each Loan has been originated by Seller and Seller has complied with all of its obligations under this Agreement. Seller warrants that all loans under the terms of this agreement will be originated by the Seller;.
B. (B) Seller has the authority to sell, transfer, and assign such Loan on the terms herein set forth; there has been no assignment, sale or pledge thereof by Seller, (except any pledge required pursuant to a line of credit agreement between Seller and its warehouse lender previously disclosed to Arc); and as of the Purchase Date, the Loan will be free and clear of liens, claims, security interests, or encumbrances of any type (including, but not limited to any pledge in favor of any warehouse lender);. The Seller shall have transferred and sold all of its right, title and interest in and to each Mortgage Loan and the Purchaser will hold good, marketable and indefeasible title to, and be the owner of, each Mortgage Loan subject to no Lien.
C. (C) All Loans purchased by Arc comply with all of the FHA, VA, GNMA, FNMA, FHLMC, FHLB, USDA, Arc and applicable private investor regulations, requirements, guidelines and standards, and all representations and warranties required to be made by sellers therein are hereby made by Seller to Arc except to the extent Arc has agreed to provide non-delegated underwriting services to Seller with respect to the applicable Loans, in which case, the foregoing representation and warranty shall be not apply to such underwriting services rendered by Arc;.
D. (D) All FHA Loans are fully insurable by FHA and a mortgage insurance certificate will be issued by FHA. All VA Loans are eligible for guaranty by VA and a loan guaranty certificate will be issued by VA. All Conventional Loans are insurable by private mortgage guaranty insurers, when required, and an appropriate certificate or other evidence of such insurance will be issued by the insurer. All USDA Loans are eligible for a USDA guaranty. There are no defenses, including the defense of usury, counter claims or rights of set-off affecting the validity or enforceability of any private mortgage insurance, USDA guaranty, FHA insurance or VA guaranty with respect to the Loan or eligibility of such Loan for insurance or guaranty. Where applicable, the representations and warranties in Section 4.2(d) shall be limited to the extent non-non- delegated underwriting services rendered by Seller relate to the insurability or eligibility for guaranty of any such applicable Loan;.
E. (E) All FHA, USDA and VA Loans are eligible for inclusion in pools of mortgages for GNMA, FNMA or FHLMC mortgage-backed securities;.
F. (F) With respect to the Mortgagor, the Property, or the Loan, to the best of Seller’s knowledge, there are no facts or circumstances that exist which could be reasonably expected to cause private institutional investors to regard the Loan as an unacceptable investment, cause the Loan to become delinquentDelinquent, or adversely affect the value or marketability of the Property or the Loan;.
G. (G) Seller has complied with all applicable federal, state, and local laws, rules ordinances, and regulations, including, but not limited to: (i) the Truth In Lending Act of 1969,as amended, and the Real Estate Settlement Procedures Act, including all required integrated disclosure rules; (ii) Federal Reserve Regulation P, X and Z; (iii) the Equal Credit Opportunity Act ('ECOA') and Federal Reserve Regulation B thereunder; (iv) the Fair Credit Reporting Act; (v) the Flood Disaster Protection Act of 1973 (as if it were a covered entity and regardless of whether Seller is specifically subject to such statute and/or regulations); (vi) the Fair Housing Act; (vii) the Home Mortgage Disclosure Act; (viii) the Financial Institutions Reform Recovery and Enforcement Act of 1989, all as amended, including all regulations issued pursuant thereto; (ix) the Housing and Economic Recovery Act ("HERA") of 2008; (x) the Xxxx- Xxxxx Xxxx Street Reform and Consumer Protection Act and any and all regulations issued in accordance therewith;
Appears in 1 contract
Samples: Loan Purchase and Sale Agreement
Representations and Warranties Regarding Loans. After a diligent investigation and inquiry, Seller further represents and warrants to Arc ArcHome that as of the Purchase Date:
A. Each Loan has been originated by Seller and Seller has complied with all of its obligations under this Agreement. Seller warrants that all loans under the terms of this agreement will be originated by the Seller;
B. Seller has the authority to sell, transfer, and assign such Loan on the terms herein set forth; there has been no assignment, sale or pledge thereof by Seller, (except any pledge required pursuant to a line of credit agreement between Seller and its warehouse lender previously disclosed to ArcArc Home); and as of the Purchase Date, the Loan will be free and clear of liens, claims, security interests, or encumbrances of any type (including, but not limited to any pledge in favor of any warehouse lender);
C. All Loans purchased by Arc Home comply with all of the FHA, VA, GNMA, FNMA, FHLMC, FHLB, USDA, Arc ArcHome and applicable private investor regulations, requirements, guidelines and standards, and all representations and warranties required to be made by sellers therein are hereby made by Seller to Arc ArcHome except to the extent Arc ArcHome has agreed to provide non-delegated underwriting services to Seller with respect to the applicable LoansSeller, in which case, the foregoing representation and warranty shall be not apply to such underwriting services rendered by ArcArc Home;
D. All FHA Loans are fully insurable by FHA and a mortgage insurance certificate will be issued by FHA. All VA Loans are eligible for guaranty by VA and a loan guaranty certificate will be issued by VA. All Conventional Loans are insurable by private mortgage guaranty insurers, when required, and an appropriate certificate or other evidence of such insurance will be issued by the insurer. All USDA Loans are eligible for a USDA guaranty. There are no defenses, counter claims or rights of set-off affecting the validity or enforceability of any private mortgage insurance, USDA guaranty, FHA insurance or VA guaranty with respect to the Loan or eligibility of such Loan for insurance or guaranty. Where applicable, the representations and warranties in Section 4.2(d) shall be limited to the extent non-delegated underwriting services rendered by Seller relate to the insurability or eligibility for guaranty of any such applicable Loan;
E. All FHA, USDA and VA Loans are eligible for inclusion in pools of mortgages for GNMA, FNMA or FHLMC mortgage-backed securities;
F. With respect to the Mortgagor, the Property, or the Loan, there are no facts or circumstances that exist which could be reasonably expected to cause private institutional investors to regard the Loan as an unacceptable investment, cause the Loan to become delinquent, or adversely affect the value or marketability of the Property or the Loan;
G. Seller has complied with all applicable federal, state, and local laws, rules ordinances, and regulations, including, but not limited to: (i) the Truth In Lending Act of 1969,as amended, and the Real Estate Settlement Procedures Act, including all required integrated disclosure rules; (ii) Federal Reserve Regulation X and Z; (iii) the Equal Credit Opportunity Act ('ECOA') and Federal Reserve Regulation B thereunder; (iv) the Fair Credit Reporting Act; (v) the Flood Disaster Protection Act of 1973 (as if it were a covered entity and regardless of whether Seller is specifically subject to such statute and/or regulations);
Appears in 1 contract
Samples: Correspondent Seller Loan Purchase and Sale Agreement
Representations and Warranties Regarding Loans. After a diligent investigation and inquiry, Seller further represents and warrants to Arc ArcHome that as of the Purchase Date:
A. Each Loan has been originated by Seller and Seller has complied with all of its obligations under this Agreement. Seller warrants that all loans under the terms of this agreement will be originated by the Seller;
B. Seller has the authority to sell, transfer, and assign such Loan on the terms herein set forth; there has been no assignment, sale or pledge thereof by Seller, (except any pledge required pursuant to a line of credit agreement between Seller and its warehouse lender previously disclosed to ArcArcHome); and as of the Purchase Date, the Loan will be free and clear of liens, claims, security interests, or encumbrances of any type (including, but not limited to any pledge in favor of any warehouse lender);
C. All Loans purchased by Arc ArcHome comply with all of the FHA, VA, GNMA, FNMA, FHLMC, FHLB, USDA, Arc ArcHome and applicable private investor regulations, requirements, guidelines and standards, and all representations and warranties required to be made by sellers therein are hereby made by Seller to Arc except to the extent Arc has agreed to provide non-delegated underwriting services to Seller with respect to the applicable Loans, in which case, the foregoing representation and warranty shall be not apply to such underwriting services rendered by ArcArcHome;
D. All FHA Loans are fully insurable by FHA and a mortgage insurance certificate will be issued by FHA. All VA Loans are eligible for guaranty by VA and a loan guaranty certificate will be issued by VA. All Conventional Loans are insurable by private mortgage guaranty insurers, when required, and an appropriate certificate or other evidence of such insurance will be issued by the insurer. All USDA Loans are eligible for a USDA guaranty. There are no defenses, counter claims or rights of set-off affecting the validity or enforceability of any private mortgage insurance, USDA guaranty, FHA insurance or VA guaranty with respect to the Loan or eligibility of such Loan for insurance or guaranty. Where applicable, the representations and warranties in Section 4.2(d) shall be limited to the extent non-delegated underwriting services rendered by Seller relate to the insurability or eligibility for guaranty of any such applicable Loan;
E. All FHA, USDA and VA Loans are eligible for inclusion in pools of mortgages for GNMA, FNMA or FHLMC mortgage-backed securities;
F. With respect to the Mortgagor, the Property, or the Loan, there are no facts or circumstances that exist which could be reasonably expected to cause private institutional investors to regard the Loan as an unacceptable investment, cause the Loan to become delinquent, or adversely affect the value or marketability of the Property or the Loan;
G. Seller has complied with all applicable federal, state, and local laws, rules ordinances, and regulations, including, but not limited to: (i) the Truth In Lending Act of 1969,as amended, and the Real Estate Settlement Procedures Act, including all required integrated disclosure rules; (ii) Federal Reserve Regulation X and Z; (iii) the Equal Credit Opportunity Act ('ECOA') and Federal Reserve Regulation B thereunder; (iv) the Fair Credit Reporting Act; (v) the Flood Disaster Protection Act of 1973 (as if it were a covered entity and regardless of whether Seller is specifically subject to such statute and/or regulations); (vi) the Fair Housing Act; (vii) the Home Mortgage Disclosure Act; (viii) the Financial Institutions Reform Recovery and Enforcement Act of 1989, all as amended, including all regulations issued pursuant thereto; (ix) the Housing and Economic Recovery Act ("HERA") of 2008; (x) the Xxxx- Xxxxx Xxxx Street Reform and Consumer Protection Act and any and all regulations issued in accordance therewith; (xi) any and all federal, state and local licensing requirements for mortgage brokers and/or lenders, including, but not limited to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008; (xii) requirements as applicable to the Loans of FNMA, FHLMC, FHLB, GNMA, FHA, USDA, and VA; and (xii) any and all laws, rules, ordinances, and regulations relating to adjustable rate mortgages, negative amortization, and graduated payment mortgages;
H. The rules, regulations, and all applicable requirements of USDA, FHA, VA, and private mortgage insurance companies, hazard insurance companies or other insurers have been properly satisfied; including, without limitation, the payment by Seller of all mortgage guaranty and insurance premiums and fees as and when due, and the submission by Seller of insurance binders, enforceable as required by ArcHome. Seller shall make ArcHome the loss payee of each mortgage guaranty insurance policy, hazard, and flood insurance policy;
I. The proceeds of the Loan have been fully disbursed; there is no requirement for future advances; the unpaid principal balance is as stated; all costs, fees, taxes and expenses incurred in making and closing the Loan and recording the Mortgage have been paid;
J. The Mortgage Note and the related Mortgage are genuine, and each is a legal, valid and binding obligation of the Mortgagor(s), enforceable in accordance with their terms. All parties to the Mortgage Note and the Mortgage had legal capacity to execute the Mortgage Note and the Mortgage and each Mortgage Note and Mortgage have been duly and properly executed by the Mortgagor(s);
K. The Mortgage has not been satisfied, canceled, subordinated or rescinded; no part of the Property has been released from the lien of the Mortgage; the terms of the Loan have in no way been changed, waived, impaired or modified, except for disclosed loan adjustments made in compliance with the Mortgage Note and applicable regulatory requirements; no waiver of any default, breach, violation or event of acceleration has occurred; the Loan is current and no payment required under the Loan has been delinquent at any time since the origination of the Loan, and in the event that the outstanding balance purchased has been credited with payments not yet collected and/or due Seller, Seller will promptly collect said payment when due and notify ArcHome of any payments not made within 30 days of the due date;
L. No representation, warranty or written statement made by Seller in this Agreement, nor any application, documentation, schedule, exhibit, statement, or certificate furnished to ArcHome by Seller contains any untrue statement of material fact or fails to state any material fact which could render such statement misleading. All information contained in the Credit File or Loan File is true, complete and accurate; Seller is not aware of any fact not set forth in the Credit File or Loan File which ArcHome or any purchaser of loans might reasonably consider to be adverse to the approval of the Loan, or would make the Loan ineligible for sale in the secondary market;
M. A title insurance commitment or a title insurance policy including all applicable endorsements has been issued by a title insurer, acceptable to ArcHome, insuring Seller, its successors and assigns, and/or ArcHome as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Note; Seller has not by act or omission, done anything which would impair the title insurance policy coverage;
N. The assignment of the Loan from Seller to ArcHome has been duly authorized and is valid and sufficient, and all consents and approvals to such assignment have been obtained, including in the case of cooperatives, the consent of the cooperative corporation;
O. All documents prepared by Seller are genuine, accurate, and complete and meet the requirements and specifications established by FHA, VA, GNMA, FNMA, FHLMC, FHLB, USDA, the Seller’s Guide and this Agreement, as applicable;
P. There is in force and effect such flood insurance policy as is required under the Flood Disaster Protection Act of 1973, as amended, and its implementing regulations regardless of whether Seller is specifically subject to such statute or regulations;
Q. There is in force and effect for the Loan adequate hazard and casualty insurance coverage with respect to the Property in an amount and pursuant to a policy of insurance satisfactory to ArcHome, insuring against fire or other casualties required by ArcHome and/or the Seller’s Guide, and, if required by federal law, flood insurance. By assignment or endorsement of Seller’s interest, ArcHome, its successors and assigns, is designated as a mortgagee, loss payee and additional named insured with regard to such insurance;
R. No mortgage brokers or other consultants or finders were consulted or contacted in connection with or in bringing about this Loan or this loan sale transaction that would be due a fee from ArcHome;
S. All taxes, governmental assessments, insurance premiums, water, sewer, municipal charges, leasehold payments, ground rents, homeowners ‘association fees, dues, assessments and other charges, have been paid; and all funds paid or due to be paid have been paid and delivered to ArcHome in connection with any escrow accounts created on the Closing Date;
T. There is no proceeding pending for the total or partial condemnation of the Property and the property is undamaged by waste, fire, flood or other casualty;
U. The Mortgage Note and the Mortgage are not subject to any right of rescission, setoff, counterclaim or defense, nor has any such right been asserted with respect thereto;
V. The actual loan-to-value ratio of each Loan at time of lock does not exceed the maximum amount permitted under the ArcHome Seller’s Guide. The appraisal prepared in connection with each Property provides an accurate estimate of the bona fide market value of such Property and was prepared by a licensed Real Estate Appraiser, acceptable to ArcHome, (as set forth in the ArcHome Seller’s Guide), with no direct or indirect interest in the Property;
W. The Mortgage Note contains the lesser of the maximum late charge permitted by the state where the Property is located and the maximum late charges permitted by the applicable agency;
X. Appropriate escrow amount for property taxes and insurance were collected from borrowers in conformity with RESPA and any similar state laws that apply (unless expressly waived by ArcHome). There are no payments which are unpaid including, but not limited to, taxes, ground rents, water charges, sewer rents, assessments, including any assessments payable in future installments, or other outstanding charges affecting the lien of the Mortgage;
Y. All funds collected from borrowers at closing will be properly segregated and accounted for in accordance with all laws and regulations, and will be used for no other purpose than that for which they have been designated. All funds due USDA, FHA and VA for guarantee and insuring purposes will be promptly submitted in accordance with agency regulations;
Z. No Mortgage Loan is subject to the provisions and requirements set out in Section 226.32 of Regulation Z of the Federal Truth-In-Lending Act covering specific “high cost" mortgages and no Mortgage Loan is a “predatory loan" as defined in any applicable federal, state or local statute or regulation;
AA. The Loan is not a higher priced mortgage loan unless otherwise permitted under an ArcHome product guideline;
BB. No entity or individual has participated in the origination of the Loan if that entity or individual appears on the any of the following: (i) Limited Denial Participation list; (ii) General Services Administration Excluded Party list; (iii) Xxxxxxx Mac Exclusionary list (iv) Xxxxxx Mae 100% Appraiser Quality Monitoring or Ineligible Appraiser lists; (v) Federal Housing Financing Agency Suspended Counterparty list; or
Appears in 1 contract
Samples: Correspondent Seller Loan Purchase and Sale Agreement
Representations and Warranties Regarding Loans. After a diligent investigation and inquiry, Seller further represents and warrants to Arc ArcHome that as of the Purchase Date:
A. Each Loan has been originated by Seller and Seller has complied with all of its obligations under this Agreement. Seller warrants that all loans under the terms of this agreement will be originated by the Seller;
B. Seller has the authority to sell, transfer, and assign such Loan on the terms herein set forth; there has been no assignment, sale or pledge thereof by Seller, (except any pledge required pursuant to a line of credit agreement between Seller and its warehouse lender previously disclosed to ArcArcHome); and as of the Purchase Date, the Loan will be free and clear of liens, claims, security interests, or encumbrances of any type (including, but not limited to any pledge in favor of any warehouse lender);
C. All Loans purchased by Arc ArcHome comply with all of the FHA, VA, GNMA, FNMA, FHLMC, FHLB, USDA, Arc ArcHome and applicable private investor regulations, requirements, guidelines and standards, and all representations and warranties required to be made by sellers therein are hereby made by Seller to Arc ArcHome except to the extent Arc ArcHome has agreed to provide non-delegated underwriting services to Seller with respect to the applicable LoansSeller, in which case, the foregoing representation and warranty shall be not apply to such underwriting services rendered by ArcArcHome;
D. All FHA Loans are fully insurable by FHA and a mortgage insurance certificate will be issued by FHA. All VA Loans are eligible for guaranty by VA and a loan guaranty certificate will be issued by VA. All Conventional Loans are insurable by private mortgage guaranty insurers, when required, and an appropriate certificate or other evidence of such insurance will be issued by the insurer. All USDA Loans are eligible for a USDA guaranty. There are no defenses, counter claims or rights of set-off affecting the validity or enforceability of any private mortgage insurance, USDA guaranty, FHA insurance or VA guaranty with respect to the Loan or eligibility of such Loan for insurance or guaranty. Where applicable, the representations and warranties in Section 4.2(d) shall be limited to the extent non-delegated underwriting services rendered by Seller relate to the insurability or eligibility for guaranty of any such applicable Loan;
E. All FHA, USDA and VA Loans are eligible for inclusion in pools of mortgages for GNMA, FNMA or FHLMC mortgage-backed securities;
F. With respect to the Mortgagor, the Property, or the Loan, there are no facts or circumstances that exist which could be reasonably expected to cause private institutional investors to regard the Loan as an unacceptable investment, cause the Loan to become delinquent, or adversely affect the value or marketability of the Property or the Loan;
G. Seller has complied with all applicable federal, state, and local laws, rules ordinances, and regulations, including, but not limited to: (i) the Truth In Lending Act of 1969,as amended, and the Real Estate Settlement Procedures Act, including all required integrated disclosure rules; (ii) Federal Reserve Regulation X and Z; (iii) the Equal Credit Opportunity Act ('ECOA') and Federal Reserve Regulation B thereunder; (iv) the Fair Credit Reporting Act; (v) the Flood Disaster Protection Act of 1973 (as if it were a covered entity and regardless of whether Seller is specifically subject to such statute and/or regulations);
Appears in 1 contract
Samples: Correspondent Seller Loan Purchase and Sale Agreement
