Common use of Servicing Standard Clause in Contracts

Servicing Standard. (a) The Master Servicer is hereby authorized to act as agent for the Trust and in such capacity shall manage, service, administer and make collections on the Home Loans, and perform the other actions required by the Master Servicer under this Agreement. In performing its obligations hereunder the Master Servicer shall at all times act in good faith in a commercially reasonable manner in accordance with all requirements of the FHA applicable to the servicing of the FHA Loans and otherwise in accordance with applicable law and the Debt Instruments and Mortgages. The Master Servicer shall at all times service and administer the FHA Loans in accordance with Title I, and shall have full power and authority, acting alone and/or through the Servicer as provided in Section 4.02, subject only to this Agreement, the respective Home Loans, and, in the case of the FHA Loans, the specific requirements and prohibitions of Title I, to do any and all things in connection with such servicing and administration which are consistent with the manner in which prudent servicers service FHA Title I home improvement loans and which are consistent with the ordinary practices of prudent mortgage lending institutions, but without regard to: (i) any relationship that the Master Servicer, the Servicer or any affiliate of the Master Servicer or any Servicer may have with the related Obligor: (ii) Mego's obligations to repurchase or substitute for a Defective Home Loan pursuant to Section 3.05(b) or any FHA Loans pursuant to Section 4.12(b); (iii) the ownership of any Securities by the Master Servicer or any affiliate of the Master Servicer; (iv) the Master Servicer's obligation to make Interest Advances pursuant to Section 4.08(a), to make Foreclosure Advances pursuant to Section 4.08(b), or repurchase any FHA Loans pursuant to Section 4.12; or (v) the Master Servicer's right to receive compensation for its services as provided in Section 5.01(c)(i)(b). The Master Servicer may take any action hereunder, including exercising any remedy under any Home Loan, retaining counsel in connection with the performance of any of its obligations hereunder and instigating litigation to enforce any obligation of any Obligor, without the consent or approval of the Indenture Trustee or the Securities Insurer, unless any such consent or approval is expressly required hereunder or under applicable law.

Servicing Standard. (a) The Master Servicer is hereby authorized to act as agent for the Trust and in such capacity shall manage, service, administer and make collections on the Home Loans, and perform the other actions required by the Master Servicer under this Agreement. In performing its obligations hereunder the Master Servicer shall at all times act in good faith in a commercially reasonable manner in accordance with all requirements of the FHA applicable to the servicing of the FHA Loans and otherwise in accordance with applicable law and the Debt Instruments Notes and Mortgages. The Master Servicer shall at all times service and administer the FHA Loans in accordance with Title I, and shall have full power and authority, acting alone and/or through the Servicer as provided in Section 4.023.02, subject only to this Agreement, the respective Home Loans, and, in the case of the FHA Loans, the specific requirements and prohibitions of Title I, to do any and all things in connection with such servicing and administration which are consistent with the manner in which prudent servicers service FHA Title I home improvement loans and which are consistent with the ordinary practices of prudent mortgage lending institutions, but without regard to: (i) any relationship that the Master Servicer, the Servicer or any affiliate of the Master Servicer or any Servicer may have with the related Obligor: (ii) Mego's obligations to repurchase or substitute for a Defective Home Loan pursuant to Section 3.05(b2.04(c) or any FHA Loans pursuant to Section 4.12(b3.12(b); (iii) the ownership of any Securities Certificate by the Master Servicer or any affiliate of the Master Servicer; (iv) the Master Servicer's obligation to make Interest Advances pursuant to Section 4.08(a3.08(a), to make Foreclosure Advances pursuant to Section 4.08(b3.08(b), or repurchase any FHA Loans pursuant to Section 4.123.12; or (v) the Master Servicer's right to receive compensation for its services as provided in hereunder pursuant to Section 5.01(c)(i)(b)4.05. The Master Servicer may take any action hereunder, including exercising any remedy under any Home Loan, retaining counsel in connection with the performance of any of its obligations hereunder and instigating litigation to enforce any obligation of any Obligor, without the consent or approval of the Indenture Trustee or the Securities Certificate Insurer, unless any such consent or approval is expressly required hereunder or under applicable law. (b) The Trustee shall execute and return to the Master Servicer or the Servicer designated in a written instruction from the Master Servicer to the Trustee, within 5 days of the Trustee's receipt any and all documents or instruments necessary to maintain the lien created by any Mortgage on the related Property or any portion thereof, and, within 51 57 5 days of request by the Master Servicer or the Servicer therefor a power of attorney in favor of the Servicer with respect to any modification, waiver, or amendment to any document contained in any File and any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable instruments, with respect to the Loans and with respect to the related Properties prepared and delivered to the Trustee by the Master Servicer or any Servicer, all in accordance with the terms of this Agreement. (c) The Trustee shall furnish the Master Servicer within 5 days of request of a Master Servicing Officer therefor any powers of attorney and other documents necessary and appropriate to carry out its servicing and administrative duties hereunder, including any documents or powers of attorney necessary to foreclose any Loan. The forms of any such powers or documents shall be appended to such requests. (d) Nothing in this Agreement shall preclude the Master Servicer, in its individual capacity, from entering into other mortgage loans or other financial transactions with any Obligor or from refinancing any Loan. (e) The Servicer hereby incorporates by reference the representations, warranties and covenants made by it in Section 2.02 of the Servicing Agreement.

Servicing Standard. (a) The Master Servicer is hereby authorized to act as agent for the Trust and in such capacity shall manage, service, administer and make collections on the Home Loans, and perform the other actions required by the Master Servicer under this Agreement. In performing its obligations hereunder the Master Servicer shall at all times act in good faith in a commercially reasonable manner in accordance with all requirements of the FHA applicable to the servicing of the FHA Loans and otherwise in accordance with applicable law and the Debt Instruments and Mortgages. The Master Servicer shall at all times service and administer the FHA Loans in accordance with Title I, and shall have full power and authority, acting alone and/or through the Servicer as provided in Section 4.02, subject only to this Agreement, Agreement and the respective Home Loans, and, in the case of the FHA Loans, the specific requirements and prohibitions of Title I, to do any and all things in connection with such servicing and administration which are consistent with the manner in which prudent servicers service FHA Title I home improvement loans and which are consistent with the ordinary practices of prudent mortgage lending institutions, but without regard to: (i) any relationship that the Master Servicer, the Servicer or any affiliate of the Master Servicer or any Servicer may have with the related Obligor: (ii) Mego's obligations to repurchase or substitute for a Defective Home Loan pursuant to Section 3.05(b) or any FHA Loans pursuant to Section 4.12(b)3.05; (iii) the ownership of any Securities by the Master Servicer or any affiliate of the Master Servicer; (iv) the Master Servicer's obligation to make Interest Advances pursuant to Section 4.08(a), ) or to make Foreclosure Advances pursuant to Section 4.08(b), or repurchase any FHA Loans pursuant to Section 4.12; or (v) the Master Servicer's right to receive compensation for its services as provided in Section 5.01(c)(i)(b5.01(c)(i)(a). The Master Servicer may take any action hereunder, including exercising any remedy under any Home Loan, retaining counsel in connection with the performance of any of its obligations hereunder and instigating litigation to enforce any obligation of any Obligor, without the consent or approval of the Indenture Trustee or the Securities InsurerTrustee, unless any such consent or approval is expressly required hereunder or under applicable law. (b) The Indenture Trustee shall execute and return to the Master Servicer or the Servicer designated in a written instruction from the Master Servicer to the Indenture Trustee, within 5 days of the Indenture Trustee's receipt any and all documents or instruments necessary to maintain the lien created by any Mortgage on the related Property or any portion thereof, and, within 5 days of request by the Master Servicer or the Servicer therefor a power of attorney in 52 favor of the Master Servicer or Servicer with respect to any modification, waiver, or amendment to any document contained in any Home Loan File and any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable instruments, with respect to the Home Loans and with respect to the related Mortgaged Properties prepared and delivered to the Indenture Trustee by the Master Servicer or any Servicer, all in accordance with the terms of this Agreement. (c) The Indenture Trustee shall furnish the Master Servicer or Servicer within 5 days of request of a Master Servicing Officer therefor any powers of attorney and other documents necessary and appropriate to carry out its servicing and administrative duties hereunder, including any documents or powers of attorney necessary to foreclose any Home Loan. The forms of any such powers or documents shall be appended to such requests.

Servicing Standard. (a) The Master Servicer is hereby authorized to act as agent for the Trust and in such capacity shall manage, service, administer and make collections on the Home Loans, and perform the other actions required by the Master Servicer under this Agreement. In performing its obligations hereunder the Master Servicer shall at all times act in good faith in a commercially reasonable manner in accordance with all requirements of the FHA applicable to the servicing of the FHA Loans and otherwise in accordance with applicable law and the Debt Instruments and Mortgages. The Master Servicer shall at all times service and administer the FHA Loans in accordance with Title I, and shall have full power and authority, acting alone and/or through the Servicer as provided in Section 4.02, subject only to this Agreement, the respective Home Loans, and, in the case of the FHA Loans, the specific requirements and prohibitions of Title I, to do any and all things in connection with such servicing and administration which are consistent with the manner in which prudent servicers service FHA Title I home improvement loans and which are consistent with the ordinary practices of prudent mortgage lending institutionsinstitutions and, in the case of the FHA Loans, prudent FHA Title I home improvement loan servicers, but without regard to: (i) any relationship that the Master Servicer, the Servicer or any affiliate of the Master Servicer or any Servicer may have with the related Obligor: (ii) Mego's obligations to repurchase or substitute for a Defective Home Loan pursuant to Section 3.05(b) or any FHA Loans pursuant to Section 4.12(b); (iii) the ownership of any Securities by the Master Servicer or any affiliate of the Master Servicer; (iv) the Master Servicer's obligation to make Interest Advances pursuant to Section 4.08(a), to make Foreclosure Advances pursuant to Section 4.08(b), or repurchase any FHA Loans pursuant to Section 4.12; or (v) the Master Servicer's right to receive compensation for its services as provided in Section 5.01(c)(i)(b). The Master Servicer may take any action hereunder, including exercising any remedy under any Home Loan, retaining counsel in connection with the performance of any of its obligations hereunder and instigating litigation to enforce any obligation of any Obligor, without the consent or approval of the Indenture Trustee or the Securities Insurer, unless any such consent or approval is expressly required hereunder or under applicable law. (b) The Indenture Trustee shall cause the Custodian to execute and return to the Master Servicer or the Servicer designated in a written instruction from the Master Servicer to the Indenture Trustee, within 5 days of the Indenture Trustee's receipt any and all documents or instruments necessary to maintain the lien created by any Mortgage on the related Property or any portion thereof, and, within 5 days of request by the Master Servicer or the Servicer therefor a power of attorney in favor of the Servicer with respect to any modification, waiver, or amendment to any document contained in any Home Loan File and any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable instruments, with respect to the Home Loans and with respect to the related Mortgaged Properties prepared and delivered to the Indenture Trustee by the Master Servicer or any Servicer, all in accordance with the terms of this Agreement. (c) The Indenture Trustee shall cause the Custodian to furnish the Master Servicer or Servicer within 5 days of request of a Master Servicing Officer therefor any powers of attorney and other documents necessary and appropriate to carry out its servicing and administrative duties hereunder, including any documents or powers of attorney necessary to foreclose any Home Loan. The forms of any such powers or documents shall be appended to such requests. (d) The Servicer hereby incorporates by reference the representations, warranties and covenants made by it in Section 2.02 of the Servicing Agreement.

Servicing Standard. (a) The Master Servicer is hereby authorized to act as agent for For and on behalf of the Trust Trustee and in such capacity shall managethe Certificateholders, service, administer and make collections on the Home Loans, and perform the other actions required by the Master Servicer under shall service and administer the Mortgage Loans in accordance with prudent mortgage loan servicing standards and procedures generally accepted in the mortgage banking industry and generally in a manner consistent with Fannie Mae guidelines except as otherwxxx xxpxxxsly provided in this Agreement. In performing its obligations hereunder connection with such servicing and administration, the Master Servicer shall at all times act in good faith in a commercially reasonable manner in accordance with all requirements of the FHA applicable to the servicing of the FHA Loans and otherwise in accordance with applicable law and the Debt Instruments and Mortgages. The Master Servicer shall at all times service and administer the FHA Loans in accordance with Title I, and shall have full power and authority, acting alone and/or through the any Sub-Servicer as provided in Section 4.02, subject only to this Agreement, the respective Home Loans, and, in the case of the FHA Loans, the specific requirements and prohibitions of Title I3.02 hereof, to do or cause to be done any and all things that it may deem necessary or desirable in connection with such servicing and administration which are consistent with administration, including but not limited to, the manner in which prudent servicers service FHA Title I home improvement loans power and which are consistent with authority, subject to the ordinary practices of prudent mortgage lending institutions, but without regard to: terms hereof (i) to execute and deliver, on behalf of the Certificateholders and the Trustee, customary consents or waivers and other instruments and documents (including, without limitation, estoppel certificates), (ii) to consent to transfers of any relationship Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages (but only in the manner provided in this Agreement), (iii) to collect any Insurance Proceeds and Liquidation Proceeds, (iv) to consent to any subordinate financings to be secured by any Mortgaged Property to the extent that such consent is required pursuant to the terms of the related Mortgage, (v) to consent to the application of any proceeds of insurance policies or condemnation awards to the restoration of the applicable Mortgaged Property or otherwise, and (vi) subject to the provisions of Section 3.07 and 3.13, to effectuate foreclosure or other conversion of the ownership of the Mortgage Property securing any Mortgage Loan; provided, however, that the Master Servicer shall take no action that is materially inconsistent with or materially prejudices the interest of the Trustee or the Certificateholders in any Mortgage Loan or the rights and interest of the Seller, the Trustee and the Certificateholders under the terms of this Agreement unless such action is specifically called for by the terms hereof. (b) Without limiting the generality of the foregoing, but subject to the terms hereof, the Master Servicer, in its own name or in the Servicer or any affiliate name of the Trustee, is hereby authorized and empowered by the Seller and the Trustee, when the Master Servicer believes it appropriate in its best judgment, to execute and deliver, on behalf of the Trustee, the Certificateholders or any of them, any and all instruments of modification, satisfaction, cancellation or assignment, or of partial or full release or discharge and all other comparable instruments, with respect to the Mortgage Loans, and with respect to the Mortgaged Properties held for the benefit of the Certificateholders. The Master Servicer may have with shall promptly notify the related Obligor: (ii) Mego's obligations to repurchase or substitute for a Defective Home Loan pursuant to Section 3.05(b) or any FHA Loans pursuant to Section 4.12(b); (iii) the ownership Trustee of any Securities by such execution and delivery. The Trustee for the benefit of the Certificateholders shall execute any powers of attorney and other documents necessary or appropriate to enable the Master Servicer to service and administer the Mortgage Loans. (c) Notwithstanding anything in this Agreement to the contrary, the Master Servicer shall not (unless the Mortgagor is in default with respect to the Mortgage Loan or any affiliate such default is, in the judgment of the Master Servicer;, imminent) permit any modification with respect to any Mortgage Loan (i) that would change the Net Mortgage Rate or, reduce or increase the principal balance (except for increases resulting from the addition of Deferred Interest and reductions resulting from actual payments of principal) or (ii) that would both constitute a sale or exchange of such Mortgage Loan within the meaning of Section 1001 of the Code (including any proposed, temporary or final regulations promulgated thereunder) (other than in connection with a proposed conveyance or assumption of such Mortgage Loan that is a Principal Prepayment made (or treated as made) by the Mortgagor of the entire principal balance of a Mortgage Loan) and cause the Trust Fund to fail to qualify as a REMIC under the Code. (ivd) If an Index of Eleventh District COFI is not available with respect to any Mortgage Loan, the Master Servicer's obligation Servicer will choose an Index of One-Year MTA for that Mortgage Loan. If neither an Index of Eleventh District COFI nor One-Year MTA is available with respect to make Interest Advances pursuant to Section 4.08(aany Mortgage Loan, the Master Servicer will select an alternative Index which is based on comparable information. In such event, the Master Servicer will also determine a new Gross Margin. The new Gross Margin will be the difference between the average of the last available Index for the most recent three-year period which ends on the last date the last available Index was available plus the Gross Margin on the last date the last available Index was available and the average of the new Index for the most recent three year period which ends on that date (or, if not available for such three-year period, for such time as it is available), to make Foreclosure Advances pursuant to Section 4.08(b), or repurchase any FHA Loans pursuant to Section 4.12; or (v) the Master Servicer's right to receive compensation for its services rounded as provided in Section 5.01(c)(i)(b). The Master Servicer may take any action hereunder, including exercising any remedy under any Home Loan, retaining counsel in connection with the performance of any of its obligations hereunder and instigating litigation to enforce any obligation of any Obligor, without the consent or approval of the Indenture Trustee or the Securities Insurer, unless any such consent or approval is expressly required hereunder or under applicable lawMortgage Note.

Servicing Standard. (a) The Master Servicer is hereby authorized to act as agent for the Trust and in such capacity shall manage, service, administer and make collections on the Home Loans, and perform the other actions required by the Master Servicer under this Agreement. In performing its obligations hereunder the Master Servicer shall at all times act in good faith in a commercially reasonable manner in accordance with all requirements of the FHA applicable to the servicing of the FHA Loans and otherwise in accordance with applicable law and the Debt Instruments and Mortgages. The Master Servicer shall at all times service and administer the FHA Loans in accordance with Title I, and shall have full power and authority, acting alone and/or through the Servicer as provided in Section 4.02, subject only to this Agreement, Agreement and the respective Home Loans, and, in the case of the FHA Loans, the specific requirements and prohibitions of Title I, to do any and all things in connection with such servicing and administration which are consistent with the manner in which prudent servicers service FHA Title I home improvement loans and which are consistent with the ordinary practices of prudent mortgage lending institutions, but without regard to: (i) any relationship that the Master Servicer, the Servicer or any affiliate of the Master Servicer or any Servicer may have with the related Obligor: (ii) Mego's obligations to repurchase or substitute for a Defective Home Loan pursuant to Section 3.05(b) or any FHA Loans pursuant to Section 4.12(b)3.05; (iii) the ownership of any Securities by the Master Servicer or any affiliate of the Master Servicer; (iv) the Master Servicer's obligation to make Interest Advances pursuant to Section 4.08(a), ) or to make Foreclosure Advances pursuant to Section 4.08(b), or repurchase any FHA Loans pursuant to Section 4.12; or (v) the Master Servicer's right to receive compensation for its services as provided in Section 5.01(c)(i)(b5.01(c)(i)(a). The Master Servicer may take any action hereunder, including exercising any remedy under any Home Loan, retaining counsel in connection with the performance of any of its obligations hereunder and instigating litigation to enforce any obligation of any Obligor, without the consent or approval of the Indenture Trustee or the Securities InsurerTrustee, unless any such consent or approval is expressly required hereunder or under applicable law. (b) The Indenture Trustee shall execute and return to the Master Servicer or the Servicer designated in a written instruction from the Master Servicer to the Indenture Trustee, within 5 days of the Indenture Trustee's receipt any and all documents or instruments necessary to maintain the lien created by any Mortgage on the related Property or any portion thereof, and, within 5 days of request by the Master Servicer or the Servicer therefor a power of attorney in favor of the Master Servicer or Servicer with respect to any modification, waiver, or amendment to any document contained in any Home Loan File and any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable instruments, with respect to the Home Loans and with respect to the related Mortgaged Properties prepared and delivered to the Indenture Trustee by the Master Servicer or any Servicer, all in accordance with the terms of this Agreement. (c) The Indenture Trustee shall furnish the Master Servicer or Servicer within 5 days of request of a Master Servicing Officer therefor any powers of attorney and other documents necessary and appropriate to carry out its servicing and administrative duties hereunder, including any documents or powers of attorney necessary to foreclose any Home Loan. The forms of any such powers or documents shall be appended to such requests.

Servicing Standard. (a) The Master Servicer is hereby authorized to act as agent for For and on behalf of the Trust Trustee and in such capacity shall managethe Certificateholders, service, administer and make collections on the Home Loans, and perform the other actions required by the Master Servicer under shall service and administer the Mortgage Loans in accordance with prudent mortgage loan servicing standards and procedures generally accepted in the mortgage banking industry and generally in a manner consistent with Xxxxxx Xxx guidelines except as otherwise expressly provided in this Agreement. In performing its obligations hereunder connection with such servicing and administration, the Master Servicer, acting alone and/or through any Sub-Servicer as provided in Section 3.02 hereof, shall have the power and authority, subject to the terms hereof (i) to execute and deliver, on behalf of the Certificateholders and the Trustee, customary consents or waivers and other instruments and documents (including, without limitation, estoppel certificates), (ii) to consent to transfers of any Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages (but only in the manner provided in this Agreement), (iii) to collect any Insurance Proceeds and Liquidation Proceeds, (iv) to consent to any subordinate financings to be secured by any Mortgaged Property to the extent that such consent is required pursuant to the terms of the related Mortgage, (v) to consent to the application of any proceeds of insurance policies or condemnation awards to the restoration of the applicable Mortgaged Property or otherwise, and (vi) subject to the provisions of Section 3.07 and 3.13, to effectuate foreclosure or other conversion of the ownership of the Mortgage Property securing any Mortgage Loan; provided, however, that the Master Servicer shall at all times act in good faith in a commercially reasonable manner in accordance take no action that is materially inconsistent with all requirements or materially prejudices the interest of the FHA applicable Trustee or the Certificateholders in any Mortgage Loan or the rights and interest of the Seller, the Trustee and the Certificateholders under the terms of this Agreement unless such action is specifically called for by the terms hereof. (b) Without limiting the generality of the foregoing, but subject to the servicing terms hereof, the Master Servicer, in its own name or in the name of the FHA Loans Trustee, is hereby authorized and otherwise in accordance with applicable law empowered by the Seller and the Debt Instruments Trustee, when a prudent servicer of mortgage loans would so act under similar circumstances, to execute and Mortgagesdeliver, on behalf of the Trustee, the Certificateholders or any of them, any and all instruments of modification, satisfaction, cancellation or assignment, or of partial or full release or discharge and all other comparable instruments, with respect to the Mortgage Loans, and with respect to the Mortgaged Properties held for the benefit of the Certificateholders. The Master Servicer shall at all times promptly notify the Trustee of any such execution and delivery. The Trustee for the benefit of the Certificateholders shall execute any powers of attorney and other documents necessary or appropriate to enable the Master Servicer to service and administer the FHA Loans Mortgage Loans. (c) Notwithstanding anything in accordance with Title I, and shall have full power and authority, acting alone and/or through this Agreement to the Servicer as provided in Section 4.02, subject only to this Agreementcontrary, the respective Home Loans, andMaster Servicer shall not (unless the Mortgagor is in default with respect to the Mortgage Loan or such default is, in the case judgment of the FHA Loans, the specific requirements and prohibitions of Title I, to do any and all things in connection with such servicing and administration which are consistent with the manner in which prudent servicers service FHA Title I home improvement loans and which are consistent with the ordinary practices of prudent mortgage lending institutions, but without regard to: (i) any relationship that the Master Servicer, imminent) permit any modification with respect to any Mortgage Loan (i) that would change the Servicer Net Mortgage Rate or, reduce or increase the principal balance (except for increases resulting from the addition of Deferred Interest and reductions resulting from actual payments of principal) or (ii) that would both constitute a sale or exchange of such Mortgage 44 Loan within the meaning of Section 1001 of the Code (including any affiliate proposed, temporary or final regulations promulgated thereunder) (other than in connection with a proposed conveyance or assumption of such Mortgage Loan that is a Principal Prepayment made (or treated as made) by the Mortgagor of the entire principal balance of a Mortgage Loan) and cause the Trust Fund to fail to qualify as a REMIC under the Code. (d) If an Index of One-Year MTA is not available with respect to any Mortgage Loan, the Master Servicer or any Servicer may have with the related Obligor: (ii) Mego's obligations to repurchase or substitute for a Defective Home Loan pursuant to Section 3.05(b) or any FHA Loans pursuant to Section 4.12(b); (iii) the ownership of any Securities by will select an alternative Index which is based on comparable information. In such event, the Master Servicer or any affiliate will also determine a new Gross Margin. The new Gross Margin will be the difference between the average of the Master Servicer; last available Index for the most recent three-year period which ends on the last date the last available Index was available plus the Gross Margin on the last date the last available Index was available and the average of the new Index for the most recent three year period which ends on that date (iv) the Master Servicer's obligation to make Interest Advances pursuant to Section 4.08(aor, if not available for such three-year period, for such time as it is available), to make Foreclosure Advances pursuant to Section 4.08(b), or repurchase any FHA Loans pursuant to Section 4.12; or (v) the Master Servicer's right to receive compensation for its services rounded as provided in Section 5.01(c)(i)(b). The Master Servicer may take any action hereunder, including exercising any remedy under any Home Loan, retaining counsel in connection with the performance of any of its obligations hereunder and instigating litigation to enforce any obligation of any Obligor, without the consent or approval of the Indenture Trustee or the Securities Insurer, unless any such consent or approval is expressly required hereunder or under applicable lawMortgage Note.

Servicing Standard. (a) The Master Servicer is hereby authorized to act as agent for For and on behalf of the Trust Trustee and in such capacity shall managethe Certificateholders, service, administer and make collections on the Home Loans, and perform the other actions required by the Master Servicer under shall service and administer the Mortgage Loans in accordance with prudent mortgage loan servicing standards and procedures generally accepted in the mortgage banking industry and generally in a manner consistent with Fannie Mae guidelines except as otherwxxx xxpxxxsly provided in this Agreement. In performing its obligations hereunder connection with such servicing and administration, the Master Servicer shall at all times act in good faith in a commercially reasonable manner in accordance with all requirements of the FHA applicable to the servicing of the FHA Loans and otherwise in accordance with applicable law and the Debt Instruments and Mortgages. The Master Servicer shall at all times service and administer the FHA Loans in accordance with Title I, and shall have full power and authority, acting alone and/or through the any Sub-Servicer as provided in Section 4.02, subject only to this Agreement, the respective Home Loans, and, in the case of the FHA Loans, the specific requirements and prohibitions of Title I3.02 hereof, to do or cause to be done any and all things that it may deem necessary or desirable in connection with such servicing and administration which are consistent with administration, including but not limited to, the power and authority, subject to the terms hereof (1) to execute and deliver, on behalf of the Certificateholders and the Trustee, customary consents or waivers and other instruments and documents (including, without limitation, estoppel certificates), (ii) to consent to transfers of any Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages (but only in the manner provided in which prudent servicers service FHA Title I home improvement loans this Agreement), (iii) to collect any Insurance Proceeds and which are consistent Liquidation Proceeds, (iv) to consent to any subordinate financings to be secured by any Mortgaged Property to the extent that such consent is required pursuant to the terms of the related Mortgage, (v) to consent to the application of any proceeds of insurance policies or condemnation awards to the restoration of the applicable Mortgaged Property or otherwise, and (vi) subject to the provisions of Section 3.07 and 3.13, to effectuate foreclosure or other conversion of the ownership of the Mortgage Property securing any Mortgage Loan; provided, however, that the Master Servicer shall take no action that is materially inconsistent with or materially prejudices the ordinary practices interest of prudent mortgage lending institutionsthe Trustee or the Certificateholders in any Mortgage Loan or the rights and interest of the Seller, the Trustee and the Certificateholders under the terms of this Agreement unless such action is specifically called for by the terms hereof. (b) Without limiting the generality of the foregoing, but without regard to: (i) any relationship that subject to the terms hereof, the Master Servicer, in its own name or in the Servicer or any affiliate name of the Trustee, is hereby authorized and empowered by the Seller and the Trustee, when the Master Servicer believes it appropriate in its best judgment, to execute and deliver, on behalf of the Trustee, the Certificateholders or any of them, any and all instruments of modification, satisfaction, cancellation or assignment, or of partial or full release or discharge and all other comparable instruments, with respect to the Mortgage Loans, and with respect to the Mortgaged Properties held for the benefit of the Certificateholders. The Master Servicer may have with shall promptly notify the related Obligor: (ii) Mego's obligations to repurchase or substitute for a Defective Home Loan pursuant to Section 3.05(b) or any FHA Loans pursuant to Section 4.12(b); (iii) the ownership Trustee of any Securities by such execution and delivery. The Trustee for the benefit of the Certificateholders shall execute any powers of attorney and other documents necessary or appropriate to enable the Master Servicer to service and administer the Mortgage Loans. (c) Notwithstanding anything in this Agreement to the contrary, the Master Servicer shall not (unless the Mortgagor is in default with respect to the Mortgage Loan or any affiliate such default is, in the judgment of the Master Servicer;, imminent) permit any modification with respect to any Mortgage Loan (i) that would change the Net Mortgage Rate or, reduce or increase the principal balance (except for increases resulting from the addition of Deferred Interest and reductions resulting from actual payments of principal) or (ii) that would both constitute a sale or exchange of such Mortgage Loan within the meaning of Section 1001 of the Code (including any proposed, temporary or final regulations promulgated thereunder) (other than in connection with a proposed conveyance or assumption of such Mortgage Loan that is a Principal Prepayment made (or treated as made) by the Mortgagor of the entire principal balance of a Mortgage Loan) and cause the Trust Fund to fail to qualify as a REMIC under the Code. (ivd) If an Index of One-Year MTA is no longer available, the Master Servicer's obligation to make Interest Advances pursuant to Section 4.08(aServicer will choose a new Index which is based on comparable information. In such event, the Master Servicer will also determine a new Gross Margin. The new Gross Margin will be the difference between the average of One-Year MTA for the most recent three-year period which ends on the last date One-Year MTA was available plus the Gross Margin on the last date One-Year MTA was available and the average of the new index for the most recent three year period which ends on that date (or, if not available for such three-year period, for such time as it is available), to make Foreclosure Advances pursuant to Section 4.08(b), or repurchase any FHA Loans pursuant to Section 4.12; or (v) the Master Servicer's right to receive compensation for its services rounded as provided in Section 5.01(c)(i)(b). The Master Servicer may take any action hereunder, including exercising any remedy under any Home Loan, retaining counsel in connection with the performance of any of its obligations hereunder and instigating litigation to enforce any obligation of any Obligor, without the consent or approval of the Indenture Trustee or the Securities Insurer, unless any such consent or approval is expressly required hereunder or under applicable lawMortgage Note.

Servicing Standard. (a) The Master For and on behalf of the Trustee and the Certificateholders, the Servicer is hereby authorized to act shall service and administer the Mortgage Loans in accordance with Acceptable Servicing Procedures except as agent for the Trust and otherwise expressly provided in such capacity shall manage, service, administer and make collections on the Home Loans, and perform the other actions required by the Master Servicer under this Agreement. In performing its obligations hereunder connection with such servicing and administration, the Master Servicer shall at all times act in good faith in a commercially reasonable manner in accordance with all requirements of the FHA applicable to the servicing of the FHA Loans and otherwise in accordance with applicable law and the Debt Instruments and Mortgages. The Master Servicer shall at all times service and administer the FHA Loans in accordance with Title I, and shall have full power and authority, acting alone and/or through the any Sub-Servicer as provided in Section 4.02, subject only to this Agreement, the respective Home Loans, and, in the case of the FHA Loans, the specific requirements and prohibitions of Title I3.02 hereof, to do or cause to be done any and all things that it may deem necessary or desirable in connection with such servicing and administration which are consistent administration, including but not limited to, the power and authority, subject to the terms hereof (a) to execute and deliver, on behalf of the Certificateholders and the Trustee, customary consents or waivers and other instruments and documents (including, without limitation, estoppel certificates), (b) to consent to transfers of any Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages (but only in the manner provided in this Agreement), (c) to collect any Insurance Proceeds and Liquidation Proceeds, (d) to consent to any subordinate financings to be secured by any Mortgaged Property to the extent that such consent is required pursuant to the terms of the related Mortgage, (e) to consent to the application of any proceeds of insurance policies or condemnation awards to the restoration of the applicable Mortgaged Property or otherwise, and (f) subject to the provisions of Section 3.07 and 3.13, to effectuate foreclosure or other conversion of the ownership of the Mortgaged Property securing any Mortgage Loan; provided, however, that the Servicer shall take no action that is materially inconsistent with or materially prejudices the interest of the Trustee or the Certificateholders in any Mortgage Loan or the rights and interest of the Depositor, the Trustee or the Certificateholders under the terms of this Agreement unless such action is specifically called for by the terms hereof. Without limiting the generality of the foregoing, but subject to the terms hereof, the Servicer, in its own name or in the name of the Depositor and the Trustee, is hereby authorized and empowered by the Depositor and the Trustee, when the Servicer believes it appropriate in its best judgment, to execute and deliver, on behalf of the Trustee, the Depositor, the Certificateholders or any of them, any and all instruments of modification, satisfaction, cancellation or assignment, or of partial or full release or discharge and all other comparable instruments, with respect to the Mortgage Loans, and with respect to the Mortgaged Properties held for the benefit of the Certificateholders. The Servicer shall promptly notify the Trustee of any such execution and delivery. The Depositor and the Trustee for the benefit of the Certificateholders shall furnish the Servicer with any powers of attorney and other documents necessary or appropriate to enable the Servicer to service and administer the Mortgage Loans. In accordance with the manner in which prudent servicers service FHA Title I home improvement loans and which are consistent with standards of the ordinary practices of prudent mortgage lending institutions, but without regard to: (i) any relationship that the Master Servicersecond preceding paragraph, the Servicer shall advance or cause to be advanced funds as necessary for the purpose of effecting the timely payment of taxes and assessments on each Mortgaged Property or any affiliate related unpaid insurance premiums that are not timely paid by the Mortgagors prior to any such time as a Mortgage Loan is in foreclosure; provided, however, that the Servicer shall be required to advance only to the extent that such advances, in the good faith judgment of the Master Servicer, will be recoverable by the Servicer out of Insurance Proceeds, Liquidation Proceeds (net of Liquidation Expenses) or any Servicer may have with otherwise; and provided further, that such payments shall be advanced when the tax, premium or other cost for which such payment is intended is due. Any such advances shall be reimbursable in the first instance from related collections from the related Obligor: (ii) Mego's obligations to repurchase or substitute for a Defective Home Loan Mortgagors pursuant to Section 3.05(b) or any FHA Loans pursuant to Section 4.12(b); (iii) the ownership of any Securities by the Master Servicer or any affiliate of the Master Servicer; (iv) the Master Servicer's obligation to make Interest Advances pursuant to Section 4.08(a)3.07 hereof, to make Foreclosure Advances pursuant to Section 4.08(b), or repurchase any FHA Loans pursuant to Section 4.12; or (v) the Master Servicer's right to receive compensation for its services and further as Liquidation Expenses as provided in Section 5.01(c)(i)(b)3.13 hereof and may be withdrawn from the Custodial Account pursuant to Section 3.09 hereof. The Master All costs incurred by the Servicer may take or by the related Sub-Servicer in effecting the timely payments of taxes and assessments on the Mortgaged Properties and related insurance premiums shall not, for the purpose of calculating monthly distributions to the Certificateholders, be added to the Principal Balance under the related Mortgage Loans, notwithstanding that the terms of such Mortgage Loans so permit. Notwithstanding anything in this Agreement to the contrary, the Servicer shall not (unless the Mortgagor is in default with respect to the Mortgage Loan or such default is, in the judgment of the Servicer, imminent) permit any action hereundermodification with respect to any Mortgage Loan (i) that would change the Net Mortgage Rate or, reduce or increase the principal balance (except for reductions resulting from actual payments of principal) or (ii) that would both constitute a sale or exchange of the Mortgage Loan within the meaning of Section 1001 of the Code (including exercising any remedy under any Home Loanproposed, retaining counsel temporary, or final regulations promulgated thereunder) (other than in connection with the performance of any of its obligations hereunder and instigating litigation to enforce any obligation of any Obligor, without the consent a proposed conveyance or approval assumption of the Indenture Trustee Mortgage Loan that is a Principal Prepayment made (or treated as made) by the Securities Insurer, unless any such consent or approval is expressly required hereunder or Mortgagor of the entire principal balance of a Mortgage Loan) and cause the Trust Fund to fail to qualify as a REMIC under applicable lawthe Code.