Common use of Servicing Arrangements Clause in Contracts

Servicing Arrangements. (a) On or prior to the date hereof, the Master Servicer has entered into a Servicing Agreement with respect to all of the Home Loans, in substantially the form of the Form of the Servicing Agreement attached hereto as Exhibit E with Mego, as Servicer. Upon the termination of the Servicing Agreement, the Master Servicer may only appoint or consent to the appointment or succession of a successor Servicer under the Servicing Agreement and may only enter into a substitute servicing agreement which is in form and substance as the Servicing Agreement attached hereto as Exhibit E and with a Person acceptable to the Indenture Trustee. The Master Servicer shall not consent to any material amendment, modification or waiver of the provisions of a Servicing Agreement without the consent of the Indenture Trustee. (b) No provision of this Agreement or the Servicing Agreement shall be deemed to relieve the Master Servicer of any of its duties and obligations to the Indenture Trustee on behalf of Securityholders with respect to the servicing and administration of the Home Loans as provided hereunder; it being understood that the Master Servicer shall be obligated with respect thereto to the same extent and under the same terms and conditions as if it alone were performing all duties and obligations set forth in this Agreement in connection with the collection, servicing and administration of such Home Loans. (c) Without limitation of the provisions of Section 4.02(b), the Master Servicer shall (i) review the servicing reports prepared by the Servicer in order to ensure the accuracy thereof, (ii) otherwise monitor the performance by the Servicer under the Servicing Agreement and notify the Indenture Trustee of any Servicer Termination Event, and (iii) be obligated to ensure that the Servicer deposits Payments into the Collection Account. In the event the Servicer fails to make such deposit, the Master Servicer will deposit such amounts as set forth in Section 5.01(a)(1). (d) The Master Servicer agrees that it shall at all times be prepared to perform the obligations of the Servicer if the Servicer fails to perform its duties and obligations under the Servicing Agreement. (e) The Servicing Agreement may provide that the Servicer may retain, as additional compensation, prepayment penalties, assumption and processing fees paid by any Obligor and all similar fees customarily associated with the servicing of the Home Loans, including, but not limited to late charges, paid by any Obligor. (f) Mego, as Servicer, shall provide information to the Master Servicer monthly in a mutually agreeable format in order to enable the Master Servicer to independently reconfirm the loan-by-loan reconciliation of the outstanding Principal Balance of each Home Loan included in such information. The Master Servicer shall prepare exception reports, if necessary, showing all Principal Balance differences between the information provided by the Servicer and the confirmations prepared by the Master Servicer and shall furnish such reports to the Indenture Trustee.

Servicing Arrangements. (a) On or prior to the date hereof, the Master Servicer has entered into a Servicing Agreement with respect to all of the Home Loans, in substantially the form of the Form of the Servicing Agreement attached hereto as Exhibit E with Mego, as Servicer. Upon So long as no Securities Insurer Default shall have occurred and be continuing, upon the termination of the Servicing Agreement, the Master Servicer may only appoint or consent to the appointment or succession of a successor Servicer under the Servicing Agreement and may only enter into a substitute servicing agreement which is in form and substance as the Servicing Agreement attached hereto as Exhibit E (which, with the consent of the Securities Insurer, may differ in material respects from the Form of Servicing Agreement attached hereto as Exhibit E) and with a Person acceptable to the Securities Insurer and the Indenture Trustee. The So long as no Securities Insurer Default exists, the Master Servicer shall not consent to any material amendment, modification or waiver of the provisions of a Servicing Agreement without the consent of the Securities Insurer and the Indenture Trustee. (b) No provision of this Agreement or the Servicing Agreement shall be deemed to relieve the Master Servicer of any of its duties and obligations to the Indenture Trustee on behalf of Securityholders and the Securities Insurer with respect to the servicing and administration of the Home Loans as provided hereunder; it being understood that the Master Servicer shall be obligated with respect thereto to the same extent and under the same terms and conditions as if it alone were performing all duties and obligations set forth in this 57 62 Agreement in connection with the collection, servicing and administration of such Home Loans. (c) Without limitation of the provisions of Section 4.02(b), the Master Servicer shall (i) review the servicing reports prepared by the Servicer in order to ensure the accuracy thereof, (ii) review the reports submitted by the Servicer to confirm that the Servicer is collecting and appropriately accounting for Obligor payments of premium on FHA Insurance on Invoiced Loans, (iii) otherwise monitor the performance by the Servicer under the Servicing Agreement and notify the Indenture Trustee and the Securities Insurer of any Servicer Termination Event, and (iiiiv) be obligated to ensure that the Servicer deposits Payments into the Collection Account. In the event the Servicer fails to make such deposit, the Master Servicer will deposit such amounts as set forth in Section 5.01(a)(1). (d) The Master Servicer agrees that it shall at all times be prepared (and shall take all steps reasonably required by the Securities Insurer to ensure such preparation), to perform the obligations of the Servicer if the Servicer fails to perform its duties and obligations under the Servicing Agreement. (e) The Servicing Agreement may provide that the Servicer may retain, as additional compensation, prepayment penalties, assumption and processing fees paid by any Obligor and all similar fees customarily associated with the servicing of the Home Loans, including, but not limited to late charges, paid by any Obligor. (f) At the direction of the Securities Insurer, so long as no Securities Insurer Default exists, the Master Servicer shall terminate the Servicer upon the occurrence and continuance of Servicer Termination Event pursuant to the terms of the Servicing Agreement. (g) Mego, as Servicer, shall provide information to the Master Servicer monthly in a mutually agreeable format in order to enable the Master Servicer to independently reconfirm the loan-by-loan reconciliation of the outstanding Principal Balance of each Home Loan included in such information. The Master Servicer shall prepare exception reports, if necessary, showing all Principal Balance differences between the information provided by the Servicer and the confirmations prepared by the Master Servicer and shall furnish such reports to the Indenture TrusteeTrustee for distribution to the Securities Insurer. If requested by the Securities Insurer, the Servicer shall provide to the Securities Insurer all information provided to the Master Servicer pursuant to this Section 4.02(g).

Servicing Arrangements. (a) On or prior to the date hereof, the Master Servicer has entered into a Servicing Agreement with respect to all of the Home Loans, in substantially the form of the Form of the Servicing Agreement attached hereto as Exhibit E A with Mego, as Servicer. Upon So long as no Certificate Insurer Default shall have occurred and be continuing, upon the termination of the Servicing Agreement, the Master Servicer may only appoint or consent to the appointment or succession of a successor Servicer under the Servicing Agreement and may only enter into a substitute servicing agreement which is in form and substance as the Servicing Agreement attached hereto as Exhibit E A (which, with the consent of the Certificate Insurer, may differ in material respects from the Form of Servicing Agreement attached hereto as Exhibit A) and with a Person acceptable to the Indenture TrusteeCertificate Insurer. The So long as no Certificate Insurer Default exists, the Master Servicer shall not consent to any material amendment, modification or waiver of the provisions of a Servicing Agreement without the consent of the Indenture TrusteeCertificate Insurer. (b) No provision of this Agreement or the Servicing Agreement shall be deemed to relieve the Master Servicer of any of its duties and obligations to the Indenture Trustee on behalf of Securityholders Certificateholders and the Certificate Insurer with respect to the servicing and administration of the Home Loans as provided hereunder; it being understood that the Master Servicer shall be obligated with respect thereto to the same extent and under the same terms and conditions as if it alone were performing all duties and obligations set forth in this Agreement in connection with the collection, servicing and administration of such Home Loans. (c) Without limitation of the provisions of Section 4.02(b3.02(b), the Master Servicer shall (i) review the servicing reports prepared by the Servicer in order to ensure the accuracy thereof, (ii) review the reports submitted by the Servicer to confirm that the Servicer is collecting and appropriately accounting for Obligor payments of premium on FHA Insurance 52 58 on Invoiced Loans, (iii) otherwise monitor the performance by the Servicer under the Servicing Agreement and notify the Indenture Trustee and the Certificate Insurer of any Servicer Termination Event, and (iiiiv) be obligated to ensure that the Servicer deposits Payments into the related Collection Account. In the event the Servicer fails to make such deposit, the Master Servicer will deposit such amounts as set forth in Section 5.01(a)(14.03(a). (d) The Master Servicer agrees that it shall at all times be prepared (and shall take all steps reasonably required by the Certificate Insurer to ensure such preparation), to perform the obligations of the Servicer if the Servicer fails to perform its duties and obligations under the Servicing Agreement. (e) The Servicing Agreement may provide that the Servicer may retain, as additional compensation, prepayment penalties, assumption and processing fees paid by any Obligor and all similar fees customarily associated with the servicing of the Home Loans, including, but not limited to late charges, paid by any Obligor. (f) At the direction of the Certificate Insurer, so long as no Certificate Insurer Default exists, the Master Servicer shall terminate the Servicer upon the occurrence and continuance of a Servicer Termination Event pursuant to the terms of the Servicing Agreement. (g) Mego, as Servicer, shall provide information to the Master Servicer monthly in a mutually agreeable format in order to enable the Master Servicer to independently reconfirm the loan-by-loan reconciliation of the outstanding Principal Balance of each Home Loan included in such information. The Master Servicer shall prepare exception reports, if necessary, showing all Principal Balance differences between the information provided by the Servicer and the confirmations prepared by the Master Servicer and shall furnish such reports to the Indenture TrusteeTrustee for distribution to the Certificate Insurer. If requested by the Certificate Insurer, the Servicer shall provide to the Certificate Insurer all information provided to the Master Servicer pursuant to this Section 3.02(g).

Servicing Arrangements. (a) On or prior to the date hereof, the Master Servicer has entered into a Servicing Agreement with respect to all of the Home Loans, in substantially the form of the Form of the Servicing Agreement attached hereto as Exhibit E with Mego, as Servicer. Upon So long as no Securities Insurer Default shall have occurred and be continuing, upon the termination of the Servicing Agreement, the Master Servicer may only appoint or consent to the appointment or succession of a successor Servicer under the Servicing Agreement and may only enter into a substitute servicing agreement which is in form and substance as the Servicing Agreement attached hereto as Exhibit E (which, with the consent of the Securities Insurer, may differ in material respects from the Form of Servicing Agreement attached hereto as Exhibit E) and with a Person acceptable to the Securities Insurer and the Indenture Trustee. The So long as no Securities Insurer Default exists, the Master Servicer shall not consent to any material amendment, modification or waiver of the provisions of a Servicing Agreement without the consent of the Securities Insurer and the Indenture Trustee. (b) No provision of this Agreement or the Servicing Agreement shall be deemed to relieve the Master Servicer of any of its duties and obligations to the Indenture Trustee on behalf of Securityholders and the Securities Insurer with respect to the servicing and administration of the Home Loans as provided hereunder; it being understood that the Master Servicer shall be obligated with respect thereto to the same extent and under the same terms and conditions as if it alone were performing all duties and obligations set forth in this Agreement in connection with the collection, servicing and administration of such Home Loans. . 55 60 (c) Without limitation of the provisions of Section 4.02(b), the Master Servicer shall (i) review the servicing reports prepared by the Servicer in order to ensure the accuracy thereof, (ii) review the reports submitted by the Servicer to confirm that the Servicer is collecting and appropriately accounting for Obligor payments of premium on FHA Insurance on Invoiced Loans, (iii) otherwise monitor the performance by the Servicer under the Servicing Agreement and notify the Indenture Trustee and the Securities Insurer of any Servicer Termination Event, and (iiiiv) be obligated to ensure that the Servicer deposits Payments into the Collection Account. In the event the Servicer fails to make such deposit, the Master Servicer will deposit such amounts as set forth in Section 5.01(a)(1). (d) The Master Servicer agrees that it shall at all times be prepared to perform the obligations of the Servicer if the Servicer fails to perform its duties and obligations under the Servicing Agreement. (e) The Servicing Agreement may provide that the Servicer may retain, as additional compensation, prepayment penalties, assumption and processing fees paid by any Obligor and all similar fees customarily associated with the servicing of the Home Loans, including, but not limited to late charges, paid by any Obligor. (f) Mego, as Servicer, shall provide information to the Master Servicer monthly in a mutually agreeable format in order to enable the Master Servicer to independently reconfirm the loan-by-loan reconciliation of the outstanding Principal Balance of each Home Loan included in such information. The Master Servicer shall prepare exception reports, if necessary, showing all Principal Balance differences between the information provided by the Servicer and the confirmations prepared by the Master Servicer and shall furnish such reports to the Indenture Trustee.