Exhibit 99.8
EXECUTION VERSION
RECONSTITUTED SERVICING AGREEMENT
Luminent Mortgage Trust 2007-2
This Reconstituted Servicing Agreement, dated as of May 1, 2007 (this
"Agreement"), is by and among WASHINGTON MUTUAL BANK ("Washington Mutual" or the
"Servicer"), XXXXX ASSET SECURITIZATION, INC. ("Xxxxx" or the "Depositor"), MAIA
MORTGAGE FINANCE STATUTORY TRUST ("Maia" or the "Seller") and XXXXX FARGO BANK,
N.A., as master servicer (in such capacity, the "Master Servicer") and
securities administrator (in such capacity, the "Securities Administrator"), and
is acknowledged by HSBC BANK USA, NATIONAL ASSOCIATION, as trustee (the
"Trustee").
RECITALS
WHEREAS, the Seller has conveyed the mortgage loans listed on Exhibit Two
hereto (the "Serviced Loans") to the Depositor, and the Depositor in turn has
conveyed the Serviced Loans to the Trustee, all pursuant to a pooling agreement,
dated as of April 1, 2007 (the "Pooling Agreement"), among the Seller, the
Depositor, the Master Servicer, the Securities Administrator and the Trustee;
WHEREAS, the Serviced Loans are currently being serviced by the Servicer
for the Seller pursuant to a Servicing Agreement, dated as of November 1, 2006
(the "Servicing Agreement"), among Washington Mutual, as servicer, and Luminent
Mortgage Capital, Inc., the Seller and Mercury Mortgage Finance Statutory Trust,
as Owner, a copy of which is annexed hereto as Exhibit Three and a Special
Foreclosure Rights Provisions letter agreement among, Luminent Mortgage Capital,
Inc., the Seller and Mercury Mortgage Finance Statutory Trust and agreed to by
the Servicer, dated of November 30, 2006, a copy of which is attached hereto as
Exhibit Six;
WHEREAS, the Seller desires that the Servicer continue to service the
Serviced Loans and the Servicer has agreed to do so, subject to the rights of
the Master Servicer to terminate the rights and obligations of the Servicer
hereunder as set forth herein and to the other conditions set forth herein;
WHEREAS, Section 5.6 of the Servicing Agreement ("Transfer of Mortgage
Loans") provides that, subject to certain conditions set forth therein, the
Owner may assign the Servicing Agreement with respect to some or all of the
Mortgage Loans, and without limiting the foregoing, the Servicer has agreed in
Article 8 of the Servicing Agreement ("Reconstitutions; Regulation AB
Compliance") to execute such Reconstitution Agreements as may be reasonably
necessary in connection with any Permitted Reconstitution pursuant to the
Servicing Agreement;
WHEREAS, the Seller and Servicer agree that (a) the transfer of the
Serviced Loans from the Seller to the Depositor and from the Depositor to the
Trustee pursuant to the Pooling Agreement constitutes a Permitted Reconstitution
and (b) this Agreement shall constitute a Reconstitution Agreement (each as
defined in the Servicing Agreement) in connection with such Permitted
Reconstitution that shall govern the Serviced Loans for so long as such Serviced
Loans remain subject to the provisions of the Pooling Agreement;
WHEREAS, the Master Servicer and any successor master servicer shall be
obligated, among other things, to supervise the servicing of the Serviced Loans
on behalf of the Trustee and the Trust Fund, and shall have the right to
terminate the rights and obligations of the Servicer upon the occurrence and
continuance of an Event of Default under the Servicing Agreement with respect to
the Serviced Loans;
NOW, THEREFORE, in consideration of the mutual promises contained herein,
the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
Capitalized terms used and not defined in this Agreement (including Exhibit
One hereto) shall have the meanings ascribed to them in the Servicing Agreement.
ARTICLE II
SERVICING
The Servicer agrees, with respect to the servicing of the Serviced Loans,
to perform and observe the duties, responsibilities and obligations that are to
be performed and observed by the Servicer under the provisions of the Servicing
Agreement, except as otherwise provided herein, and that the provisions of the
Servicing Agreement (including any provisions therein modified by this
Agreement), are and shall be a part of this Agreement to the same extent as if
set forth herein in full.
ARTICLE III
TRUST CUT-OFF DATE
The parties hereto acknowledge that by operation of Section 3.1 to the
Servicing Agreement ("Distributions"), the remittance on May 18, 2007 to be made
to the Luminent Mortgage Trust 2007-2 Trust (the "Trust Fund") is to include all
principal and interest collections due after April 1, 2007 (the "Trust Cut-off
Date"), and for the Due Period immediately preceding May 18, 2007, but exclusive
of any portion thereof allocable to a period prior to the Trust Cut-off Date
with respect to the Serviced Loans, and taking into account the adjustments
specified in the first paragraph of Section 3.1 to the Servicing Agreement (as
modified by this Agreement).
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ARTICLE IV
SERVICING FEE
The Servicing Fee Rate for the Serviced Loans is as set forth on the
related Mortgage Loan Schedule (the "Servicing Fee Rate"). The Servicing Fee
shall be payable monthly from the interest portion of the related Monthly
Payment collected by the Servicer or as otherwise provided in the Servicing
Agreement.
ARTICLE V
RECOGNITION OF THE MASTER SERVICER AND THE TRUST FUND
(a) From and after the date hereof, the Servicer, and any successor
servicer hereunder, shall be subject to the supervision of the Master Servicer,
which Master Servicer shall be obligated to enforce the Servicer's obligation to
service the Serviced Loans in accordance with the provisions of this Agreement.
The Servicer shall recognize the Trust Fund as the owner of the Serviced Loans,
and the Servicer will service the Serviced Loans for the Trust Fund as if the
Trust Fund and the Servicer had entered into a separate servicing agreement for
the servicing of the Serviced Loans in the form of this Agreement. The Master
Servicer and the Trustee shall have the same rights (but not obligations, except
to the extent expressly set forth in the Pooling Agreement) as the Owner under
the Servicing Agreement to enforce the obligations of the Servicer with respect
to the Serviced Loans, including, without limitation, in the case of the
Trustee, the enforcement of (i) the document delivery requirements set forth in
Section 2.1 ("Identification of Mortgage Loans; Servicer to Act as Servicer")
and Section 4.2 ("Satisfaction of Mortgages and Release of Collateral Files") of
the Servicing Agreement and (ii) remedies with respect to representations and
warranties made by the Servicer in the Servicing Agreement, and, in the case of
the Master Servicer, shall be entitled to enforce all of the obligations of the
Servicer thereunder insofar as they relate to the Serviced Loans. The Servicer
shall look solely to the Trust Fund for performance of any obligations of the
Owner under this Agreement and the Trust Fund hereby assumes such obligations.
All references to the Owner under the Servicing Agreement insofar as they relate
to the Serviced Loans that have not otherwise been modified under this Agreement
shall be deemed to refer to the Trust Fund. No party to the Servicing Agreement
shall amend or agree to amend, modify, waive, or otherwise alter any of the
terms or provisions of the Servicing Agreement, which amendment, modification,
waiver or other alteration would in any way materially affect the Serviced Loans
or the Servicer's performance under the Servicing Agreement with respect to the
Serviced Loans without the prior written consent of the Trustee and the Master
Servicer or which would materially and adversely affect the interests of the
certificateholders in the Serviced Loans.
(b) The Master Servicer shall be entitled to terminate the rights and
obligations of the Servicer under this Agreement as provided in Section 6.1
("Events of Default") of the Servicing Agreement. Notwithstanding anything
herein to the contrary, in no event shall the Master Servicer be required to
assume any of the obligations of the Owner under the Servicing Agreement; and in
entering into this Agreement, in connection with the performance by the Master
Servicer of any duties it may have hereunder, and in the exercise by the Master
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Servicer of its rights, the parties and other signatories hereto agree that the
Master Servicer shall be entitled to all of the rights, protections and
limitations of liability, immunities and indemnities afforded to the Master
Servicer.
(c) A copy of all assessments, attestations, reports and certifications
required to be delivered by the Servicer under this Agreement shall be delivered
to the Master Servicer by the date(s) specified herein or therein, and where
such documents are required to be addressed to any party, such addressees shall
include the Master Servicer and the Master Servicer shall be entitled to rely on
such documents.
(d) Notwithstanding anything in this Agreement to the contrary, it is
understood that the Servicer shall not be obligated to defend, indemnify or hold
harmless the Master Servicer, the Securities Administrator, the Trust Fund, the
Seller, the Trustee or the Depositor against any losses, damages, penalties,
fines, forfeitures, judgments or any related costs including, without
limitation, legal fees and costs that any of them may sustain, arising out of or
resulting from (i) actions or omissions of the Servicer which were taken or
omitted upon the instruction or direction (whether actual or constructive) of
the Master Servicer or another designee of the Trust Fund or (ii) the failure of
any responsible designee of the Trust Fund to perform the obligations of the
"Owner" under the Servicing Agreement, or any indirect, special, or
consequential damages, losses, costs or other expenses incurred by the Master
Servicer, the Trustee or any other designee of the Trust Fund.
ARTICLE VI
WARRANTIES
The Seller and the Servicer mutually warrant and represent that, with
respect to the Serviced Loans, the Servicing Agreement is in full force and
effect as of the date hereof and has not been amended or modified in any way
with respect to the Serviced Loans, except as set forth herein, and no notice of
termination has been given thereunder.
ARTICLE VII
REPRESENTATIONS
(a) The Servicer hereby represents and warrants for the benefit of the
Depositor and the Trustee on behalf of the Trust Fund, that the representations
and warranties set forth in Section 5.7 ("Representations and Warranties of the
Servicer") of the Servicing Agreement are true and correct as of May 1, 2007
(the "Reconstitution Date"), as if such representations and warranties were made
on such date.
(b) The Servicer hereby represents for the benefit of the Depositor and the
Trustee on behalf of the Trust Fund, that each prepayment charge or penalty with
respect to any Mortgage Loan is customary, permissible, enforceable and
collectible under applicable federal, state and local law.
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ARTICLE VIII
ASSIGNMENT
The Servicer hereby acknowledges that the rights of the Seller as Owner
under the Servicing Agreement are hereby assigned to the Depositor, and such
rights are being assigned by the Depositor to the Trustee on behalf of the Trust
Fund as of the Reconstitution Date. In addition, the Trustee has made, or
intends to make, a REMIC election. The Servicer hereby consents to such
assignment and assumption and acknowledges the Trust Fund's REMIC election.
ARTICLE IX
NOTICES AND REMITTANCES
(a) All notices, consents, certificates, reports and certifications
(collectively, "Written Information") required to be delivered to the Owner
under the Servicing Agreement and under this Agreement shall, with respect to
the Serviced Loans, be delivered to the Master Servicer at the following
address:
Xxxxx Fargo Bank, N.A.
X.X. Xxx 00
Xxxxxxxx, Xxxxxxxx 00000
Attention: Client Manager, Luminent 2007-2
(or in the case of overnight deliveries,
0000 Xxx Xxxxxxxxx Xxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention: Client Manager, Luminent 2007-2)
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
(b) All amounts required to be remitted or distributed by the Servicer to
the Owner under the Servicing Agreement and under this Agreement shall, with
respect to the Serviced Loans, be on a scheduled/scheduled basis and shall be
made to the following wire account:
Xxxxx Fargo Bank, N.A.
ABA#: 000-000-000
Account Name: SAS CLEARING
Account Number: 0000000000
For further credit to: Luminent 2007-2, Account #00000000
(c) All Written Information required to be delivered to the Trustee under
the Servicing Agreement and under this Agreement shall be delivered to the
Trustee at the following address:
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HSBC Bank USA, National Association
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: CTLA - Structured Finance / Luminent Mortgage Trust 2007-2
(d) All Written Information required to be delivered to the Depositor under
the Servicing Agreement and under this Agreement shall be delivered to the
Depositor at the following address:
Xxxxx Asset Securitization, Inc.
000 Xxxxxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
Attention: Xxxxxxxxxxx Xxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
(e) All demands, notices and communications required to be delivered to the
Servicer under the Servicing Agreement and this Agreement shall be in writing
and shall be deemed to have been duly given if personally delivered at or mailed
by registered mail, postage prepaid, as follows:
Washington Mutual Bank
0000 Xxxxxx Xxxxxx, XXX 3501
Xxxxxxx, XX 00000
Attention: Xxxxx Xxxxxx
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
ARTICLE X
GOVERNING LAW
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.
ARTICLE XI
AMENDMENT
The parties hereto hereby acknowledge and agree that this Agreement shall
not be amended without the consent of the Servicer and the Seller.
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ARTICLE XII
COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which
when so executed shall be deemed to be an original, but all of which
counterparts shall together constitute but one and the same instrument.
ARTICLE XIII
RECONSTITUTION
The Servicer and the Seller agree that this Agreement is a Reconstitution
Agreement executed in connection with a Securitization Transaction and that May
1, 2007 is the Reconstitution Date.
ARTICLE XIV
LIMITED ROLE OF THE TRUSTEE
The Trustee shall have no obligations or duties under this Agreement except
as expressly set forth herein. No implied duties on the part of the Trustee
shall be read into this Agreement. Nothing herein shall be construed to be an
assumption by the Trustee of any duties or obligations of any party to this
Agreement or the Servicing Agreement, the duties of the Trustee being solely
those set forth in the Pooling Agreement. The Trustee is entering into this
Agreement solely in its capacity as Trustee under the Pooling Agreement and not
individually, and there shall be no recourse against the Trustee in its
individual capacity hereunder or for the payment of any obligations of the Trust
or the Trust Fund.
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IN WITNESS WHEREOF, the Servicer, the Seller, the Depositor, the Master
Servicer, the Securities Administrator and the Trustee have caused their names
to be signed hereto by their respective officers thereunto duly authorized as of
the day and year first above written.
WASHINGTON MUTUAL BANK, as Servicer
By: /s/ Xxxxxx Xxxx
-------------------------
Name: Xxxxxx Xxxx
Title: Vice President
MAIA MORTGAGE FINANCE STATUTORY
TRUST, as Seller
By: /s/ Xxxxxxxxxxx X. Xxxx
--------------------------
Name: Xxxxxxxxxxx X. Xxxx
Title: President & Trustee
XXXXX ASSET SECURITIZATION, INC., as
Depositor
By: /s/ Xxxxxxxxxxx X. Xxxx
----------------------------
Name: Xxxxxxxxxxx X. Xxxx
Title: Chief Financial Officer
XXXXX FARGO BANK, N.A., as Master Servicer
and Securities Administrator
By: /s/ Xxx Xxxxx
---------------------------
Name: Xxx Xxxxx
Title: Vice President
Agreed to and Acknowledged By:
HSBC BANK USA, NATIONAL ASSOCIATION,
not in its individual capacity, but solely as Trustee for
Luminent Mortgage Trust 2007-2 under the Pooling
Agreement
By: /s/ Xxxx Xxxxxx
----------------------------
Name: Xxxx Xxxxxx
Title: Officer
EXHIBIT ONE
Modifications to the Servicing Agreement
----------------------------------------
The Servicer and Seller hereby amend the Servicing Agreement with respect
to the Serviced Loans as follows:
(a) The definition of "Business Day" in Article 1 is hereby deleted in its
entirety and replaced with the following:
Business Day: Any day other than a Saturday or Sunday, or a day
on which banks and savings and loan institutions in the State of
California, the State of Maryland, the State of Minnesota, the State
of New York, the State of Washington or the State of Wisconsin are
authorized or obligated by law or executive order to be closed.
(b) A new definition of Adverse REMIC Event is hereby added to Article 1 as
follows:
Adverse REMIC Event: Any action that, under the REMIC Provisions, if taken
or not taken, as the case may be, could (i) endanger the status of any
REMIC as a REMIC or (ii) result in the imposition of a tax upon any REMIC
(including but not limited to the tax on prohibited transactions as defined
in Code Section 860F(a)(2) and the tax on prohibited contributions set
forth on Section 860G(d) of the Code).
(c) A new definition of Custodial Agreement is hereby added to Article 1 as
follows
Custodial Agreement: The Custodial Agreement, dated as of April
1, 2007, by and between the Trustee and the Custodian, as amended or
modified from time to time.
(d) A new definition of Custodian is hereby added to Article 1 as follows:
Custodian: Xxxxx Fargo Bank, N.A., or its successor in interest
or assigns in its capacity as custodian under the Custodial Agreement.
(e) The definition of LPMI is hereby amended as follows:
LPMI or LPMI Policy: A Lender Paid Primary Mortgage Insurance
Policy, the premiums of which are paid by someone other than the
Mortgagor or the Servicer.
(f) A new definition of "Master Servicer" is hereby added to Article 1 as
follows:
Master Servicer: Xxxxx Fargo Bank, N.A. and its successors and
assigns in its capacity as master servicer pursuant to that certain
pooling agreement, dated as of April 1, 2007, among Maia Mortgage
Finance Statutory Trust, as seller, Xxxxx Asset Securitization, Inc.,
as depositor, Xxxxx Fargo Bank, N.A., as master servicer and
securities administrator, and HSBC Bank USA, National Association, as
trustee.
Exhibit One-1
(g) The definition of "Opinion of Counsel" in Article 1 is hereby deleted
in its entirety and replaced with the following:
Opinion of Counsel: A written opinion of counsel, who may be an
employee of the Servicer, that is reasonably acceptable to the Trustee and
the Master Servicer provided that any Opinion of Counsel relating to (a)
qualification of the Serviced Loans in a REMIC or (b) compliance with the
REMIC Provisions, must be an opinion of counsel reasonably acceptable to
the Trustee, the Master Servicer and the Depositor who (i) is in fact
independent of the Servicer, (ii) does not have any material direct or
indirect financial interest in the Servicer or in any affiliate of any such
entity and (iii) is not connected with the Servicer as an officer,
employee, director or person performing similar functions.
(h) The first sentence of Section 2.4 ("Establishment of Account; Deposits
in Account") is hereby amended as follows: by deleting the text following the
word "entitled" in the first sentence of the first paragraph and adding in lieu
thereof "Washington Mutual Bank, in trust for the Trustee of Luminent Mortgage
Trust 2007-2".
(i) The first sentence of Section 2.6 ("Establishment of Escrow Account;
Deposits in Escrow Account; Escrow Analysis") is hereby amended by deleting the
text following the word "entitled" in the first sentence of the first paragraph
and inserting in lieu thereof the text "Washington Mutual Bank, in trust for the
Trustee of Luminent Mortgage Trust 2007-2".
(j) Two new paragraphs are inserted immediately following the second
paragraph of Section 2.8 ("Payment of Taxes, Insurance and Other Charges") as
follows:
Serviced Loans with an LTV =75% and =80% as noted on the schedule
attached as Exhibit Four of the Reconstitution Agreement will be covered by
a Master LPMI Policy issued by Triad Guaranty Insurance Corporation
("Triad"). The Servicer shall not take any action that would result in
non-coverage under such policy which, but for the actions of the Servicer,
would have been covered thereunder. In connection with its activities as
servicer, the Servicer agrees to prepare and present, on behalf of itself
and the Trust Fund, claims to Triad under such policy in a timely fashion
in accordance with the terms of such policy and, in this regard, to take
such action as shall be necessary to permit recovery under such policy
respecting a defaulted serviced loan. Any amounts collected by the Servicer
under such policy shall be deposited in the Custodial Account, subject to
withdrawal pursuant to Section 2.5 (as if such funds related to a Primary
Mortgage Insurance Policy).
(k) Section 2.16(c) is hereby amended by inserting ", as evidenced by an
Officer's Certificate delivered to the Master Servicer by the Servicer"
immediately following "Nonrecoverable Advance".
(l) Article 3 ("Payments to the Owner") is hereby amended by replacing each
reference to "Owner" with "Master Servicer".
(m) The first sentence in Section 3.2(a) is hereby amended by inserting
"calendar" immediately following "10th" and by deleting the text beginning with
"below" and ending with "(xxv) remittance amount." and inserting in lieu thereof
Exhibit One-2
"data as set forth in Exhibit G hereto, or data in such other form mutually
agreed upon by the Master Servicer and the Servicer."
(n) Section 3.3 ("Delinquency and Foreclosure Statements") is hereby
deleted in its entirety.
(o) Each reference to "Owner" in Section 5.1(a)(i) are hereby amended by
inserting "and the Master Servicer" immediately following each such reference.
(p) Section 5.4 ("Servicer Not to Resign") is hereby amended by replacing
the reference to "Owner" with "Master Servicer".
(q) Section 5.5 ("Transfer of Servicing") is hereby amended by replacing
each reference to "Owner" with "Master Servicer".
(r) Section 6.1 ("Events of Default") is hereby amended by:
(i) replacing each reference to the "Owner" with "Master Servicer".
(ii) deleting "three (3)" and replacing such text with "two (2)" in
Section 6.1(i).
(iii) deleting the text "pursuant to Section 7.2,".
(iv) inserting "including but not limited to the transfer and
endorsement or assignment of the Serviced Loans and related documents,"
immediately following "the purposes of such notice of termination,".
(s) Section 6.2 ("Waiver of Defaults") is hereby amended by replacing the
reference to the "Owner" with "Master Servicer".
(t) Article 7 ("Termination") is hereby amended by replacing each reference
to the "Owner" with "Master Servicer".
(u) Section 7.2 ("Termination of the Servicer Upon Unremedied Event of
Default") is hereby deleted in its entirety.
(v) The text of the second paragraph of Section 8.3 ("Intent of the
Parties; Reasonableness") is hereby amended by inserting the text immediately
following "other performance" in the first sentence of the paragraph and
immediately following "comply with requests" in the second sentence of the
paragraph.
(w) Paragraph (b) of Section 8.5 ("Information to Be Provided by the
Servicer") of Exhibit H is hereby deleted in its entirety and replaced with the
following:
For the purpose of satisfying the reporting obligation under the
Exchange Act with respect to any class of asset-backed securities, the
Servicer shall (or shall cause each Subservicer to) (i) provide prompt
Exhibit One-3
notice to the Owner, any Master Servicer and any Depositor in writing of
(A) any material legal proceedings pending against the Servicer or any
Subservicer (or known to be contemplated by governmental authorities
against such parties), (B) any affiliations (of a type described in Item
1119 of Regulation AB) that develop following the closing date of a
Securitization Transaction between the Servicer or any Subservicer and any
of the parties specified in clause (D) of paragraph (a) of this Section
(and any other parties identified in writing by the requesting party) with
respect to such Securitization Transaction, (C) any Event of Default under
the terms of this Agreement or any applicable Reconstitution Agreement, (D)
any merger, consolidation or sale of substantially all of the assets of the
Company, and (E) the Servicer's entry into an agreement with a Subservicer
to perform or assist in the performance of any of the Servicer's
obligations under any applicable Reconstitution Agreement and (ii) provide
to the Owner and any Depositor a description of such proceedings,
affiliations or relationships.
(x) Section 8.5(c) is hereby amended by inserting ", the Master Servicer"
immediately following each reference to the "Owner".
(y) Section 8.5(d) is hereby deleted in its entirety and replaced with the
following:
(d) In addition to such information as the Servicer, as servicer, is
obligated to provide pursuant to other provisions of this Agreement,
not later than ten days prior to the deadline for the filing of any
distribution report on Form 10-D in respect of any Securitization
Transaction that includes any of the Serviced Loans serviced by the
Servicer or any Subservicer, the Servicer or such Subservicer, as
applicable, shall, to the extent the Servicer or such Subservicer has
knowledge, provide to the party responsible for filing such report
(including, if applicable, the Master Servicer) notice of the
occurrence of any of the following events along with all information,
data, and materials related thereto as may be required to be included
in the related distribution report on Form 10-D (as specified in the
provisions of Regulation AB referenced below):
(i) any material modifications, extensions or waivers of pool
asset terms, fees, penalties or payments during the distribution
period or that have cumulatively become material over time (Item
1121(a)(11) of Regulation AB);
(ii) material breaches of pool asset representations or
warranties or transaction covenants (Item 1121(a)(12) of Regulation
AB); and
(iii) information regarding any pool asset changes pursuant to
any repurchases.
(z) Section 8.6 ("Servicer Compliance Statement") is hereby amended by
deleting "addressed to the Owner" and replacing such text with "addressed to the
Owner, the Master Servicer".
Exhibit One-4
(aa) Section 8.7(a)(i) is hereby amended by deleting "satisfactory to the
Owner" and replaced such text with "satisfactory to the Owner, such Master
Servicer".
(bb) Section 8.7(a)(iv) is hereby amended by inserting "the Company or of"
immediately following "the appropriate officer of".
(cc) Section 8.8(a) is hereby amended by deleting "8.5(b) and (d)" and
inserting "8.5(b), (c), and (d)" in lieu thereof.
(dd) Section 8.8(b) is hereby amended by:
(i) deleting "participating Entities" and inserting "a Participating
Entity" in lieu thereof.
(ii) by inserting ", annual servicer compliance statement and Sarbanes
Certification" immediately following "compliance and attestation".
(ee) Section 8.9 ("Indemnification; Remedies") is hereby amended by:
(i) inserting "; and the respective present and former directors,
officers and employees of each of the foregoing and of the Depositor (each,
an "Indemnified Party")," immediately following "(within the meaning of
Section 20 of the Exchange Act)," in Section 8.9(b).
(ii) deleting "any losses" and inserting "any claims, losses," in lieu
thereof in Section 8.9(b).
(iii) inserting a new Section 8.9(b)(iii) immediately preceding the
final paragraph in Section 8.9(b) as follows:
"(iii) any breach by the Servicer of a representation or warranty set
forth in Section 8.4(a) or in a writing furnished pursuant to Section
8.4(b) and made as of a date prior to the closing date of the related
Securitization Transaction, to the extent that such breach is not
cured by such closing date, or any breach by the Servicer of a
representation or warranty in a writing furnished pursuant to Section
8.4(b) to the extent made as of a date subsequent to such closing
date.
If the indemnification provided for herein is unavailable or
insufficient to hold harmless an Indemnified Party, then the Servicer
agrees that it shall contribute to the amount paid or payable by such
Indemnified Party as a result of any claims, losses, damages or
liabilities incurred by such Indemnified Party in such proportion as
is appropriate to reflect the relative fault of such Indemnified Party
on the one hand and the Servicer on the other."
Exhibit One-5
(ff) Section 8.9(c) and Section 8.9(d) are reordered as Section 8.9(d) and
Section 8.9(e), respectively, and a new Section 8.9(c) is hereby added as
follows:
"(c) (i) Any failure by the Servicer, any Subservicer, any
Subcontractor or any Third-Party Originator to deliver any
information, report, certification, accountants' letter or other
material when and as required under this Section 8, or any breach by
the Servicer of a representation or warranty set forth in Section
8.4(a) or in a writing furnished pursuant to Section 8.4 (b) and made
as of a date prior to the closing date of the related Securitization
Transaction, to the extent that such breach is not cured by such
closing date, or any breach by the Servicer of a representation or
warranty in a writing furnished pursuant to Section 8.4 (b) to the
extent made as of a date subsequent to such closing date, shall,
except as provided in clause (ii) of this paragraph, immediately and
automatically, without notice or grace period, constitute an Event of
Default (notwithstanding any other provision of this Agreement or any
Reconstitution Agreement to the contrary) with respect to the Servicer
under this Agreement and any applicable Reconstitution Agreement, and
shall entitle the Purchaser or any Depositor, as applicable, in its
sole discretion to terminate the rights and obligations of the
Servicer as servicer under this Agreement and/or any applicable
Reconstitution Agreement without payment (notwithstanding anything in
this Agreement or any applicable Reconstitution Agreement to the
contrary) of any compensation to the Servicer (and if the Servicer is
servicing any of the Mortgage Loans in a Securitization Transaction,
appoint a successor servicer reasonably acceptable to any Master
Servicer for such Securitization Transaction); provided that to the
extent that any provision of this Agreement and/or any applicable
Reconstitution Agreement expressly provides for the survival of
certain rights or obligations following termination of the Servicer as
servicer, such provision shall be given effect.
(ii) Any failure by the Servicer, any Subservicer or any Subcontractor
to deliver any information, report, certification or accountants'
letter when and as required to be delivered under Section 8.6 or 8.7
(or, if the Depositor (or its agent) has obtained an extension to the
Commission filing deadline for the related 10-K, by the date occurring
ten days prior to the extended filing deadline), including (except as
provided below) any failure by the Servicer to identify pursuant to
Section 8.8(b) any Subcontractor "participating in the servicing
function" within the meaning of Item 1122 of Regulation, shall
constitute an Event of Default with respect to the Servicer under this
Agreement and any applicable Reconstitution Agreement, and shall
entitle the Purchaser, any Master Servicer or any Depositor, as
Exhibit One-6
applicable, in its sole discretion to terminate the rights and
obligations of the Servicer as servicer under this Agreement and/or
any applicable Reconstitution Agreement without payment
(notwithstanding anything in this Agreement to the contrary) of any
compensation to the Servicer; provided that to the extent that any
provision of this Agreement and/or any applicable Reconstitution
Agreement expressly provides for the survival of certain rights or
obligations following termination of the Servicer as servicer, such
provision shall be given effect.
(iii) The Servicer shall promptly reimburse the Purchaser (or any
designee of the Purchaser, such as a master servicer) and any
Depositor, as applicable, for all reasonable expenses incurred by the
Purchaser (or such designee) or such Depositor (which shall include
reasonable transfer costs) as such are incurred, in connection with
the termination of the Servicer as servicer and the transfer of
servicing of the Mortgage Loans to a successor servicer. The
provisions of this paragraph shall not limit whatever rights the
Purchaser or any Depositor may have under other provisions of this
Agreement and/or any applicable Reconstitution Agreement or otherwise,
whether in equity or at law, such as an action for damages, specific
performance or injunctive relief.
(iii) Neither the Owner nor any Depositor shall be entitled to
terminate the rights and obligations of the Servicer pursuant to this
subparagraph (c)(ii) if a failure of the Servicer to identify a
Subcontractor "participating in the servicing function" within the
meaning of Item 1122 of Regulation AB was attributable solely to the
role or functions of such Subcontractor with respect to mortgage loans
other than the Mortgage Loans.
(iv) Notwithstanding anything in clauses (c)(i) or (c)(ii) of this
Section 8.9 to the contrary, the initial failure by the Servicer, any
Subservicer or any Subcontractor to deliver any information, report,
certification or accountants' letter when and as required under this
Agreement shall not constitute an Event of Default with respect to the
Servicer under this Agreement and any applicable Reconstitution
Agreement, provided that (A) such failure may not reasonably be
expected to have a material adverse effect on the Purchaser, any
Depositor or the Sponsor) and (B) such failure shall be remedied as
soon as practicable.
(gg) Section 9.1 ("Successor to the Servicer") is hereby amended by
deleting the text "pursuant to Sections 5.4, 6.1, 7.1, or 7.2" and replacing
such text with "pursuant to Sections 5.4, 6.1 or 7.1".
Exhibit One-7
(hh) The text of Section 9.2 ("Amendment") is hereby amended to read as
follows:
This Agreement may be amended only by written agreement signed by the
Servicer, the Depositor, the Master Servicer, Maia Mortgage Finance Statutory
Trust and the Trustee. The party requesting such amendment shall, at its own
expense, provide the Depositor, the Master Servicer and the Trustee with an
Opinion of Counsel that (i) such amendment is permitted under the terms of this
Agreement, (ii) Servicer has complied with all applicable requirements of this
Agreement, and (iii) such Amendment will not materially adversely affect the
interest of the certificateholders in the Serviced Loans.
(ii) Exhibit D is hereby amended by replacing "[the Servicer] [Name of
Subservicer]" in the introductory paragraph with "the Servicer".
(jj) Exhibit Five hereto is hereby added to the Servicing Agreement as a
new Exhibit G.
(kk) Exhibit Six is hereby added to the Servicing Agreement as a new
Exhibit H and is hereby amended as follows:
(i) by inserting ", which it shall provide to the Securityholder,"
immediately preceding "a code" in Paragraph 1.
(ii) by adding the following as the final sentence in Paragraph 9:
"The Master Servicer will have no duty or responsibility to master service
any such Mortgage Loan.
(iii) by deleting Paragraph 11 in its entirety.
Exhibit One-8
EXHIBIT TWO
List of Serviced Loans
----------------------
(To be retained in a separate closing binder entitled "Luminent 2007-2 Mortgage
Loan Schedule" at the Washington DC office of Hunton & Xxxxxxxx LLP)
Exhibit Two-1
EXHIBIT THREE
Servicing Agreement
-------------------
(As retained on file with the Washington DC office of Hunton & Xxxxxxxx LLP)
Exhibit Three-1
EXHIBIT FOUR
Master Lender-Paid Private Mortgage Insurance Policy Mortgage Loans
-------------------------------------------------------------------
Exhibit Four-1
EXHIBIT FIVE
EXHIBIT G
Form of Periodic Reports
------------------------
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Standard Loan Level File Layout - Master Servicing
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Exhibit 1: Layout
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Column Name Description Decimal Format Comment Max
Size
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Each file requires the following fields:
--------------------------------------------------------------------------------------- ------- ----------------------------- ------
SER_INVESTOR_NBR A value assigned by the Servicer to define a group of loans. Text up to 20 digits
20
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
LOAN_NBR A unique identifier assigned to each loan by the investor. Text up to 10 digits
10
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
SERVICER_LOAN_NBR A unique number assigned to a loan by the Servicer. This may Text up to 10 digits
be different than the LOAN_NBR. 10
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
SCHED_PAY_AMT Scheduled monthly principal and scheduled interest payment that 2 No commas(,) or dollar
a borrower is expected to pay, P&I constant. signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
NOTE_INT_RATE The loan interest rate as reported by the Servicer. 4 Max length of 6
6
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
NET_INT_RATE The loan gross interest rate less the service fee rate as 4 Max length of 6
reported by the Servicer. 6
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
SERV_FEE_RATE The servicer's fee rate for a loan as reported by the Servicer. 4 Max length of 6
6
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
SERV_FEE_AMT The servicer's fee amount for a loan as reported by the 2 No commas(,) or dollar
Servicer. signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
NEW_PAY_AMT The new loan payment amount as reported by the Servicer. 2 No commas(,) or dollar
signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
NEW_LOAN_RATE The new loan rate as reported by the Servicer. 4 Max length of 6
6
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
ARM_INDEX_RATE The index the Servicer is using to calculate a forecasted rate. 4 Max length of 6
6
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Exhibit Five-1
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
ACTL_BEG_PRIN_BAL The borrower's actual principal balance at the beginning of the 2 No commas(,) or dollar
processing cycle. signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
ACTL_END_PRIN_BAL The borrower's actual principal balance at the end of the 2 No commas(,) or dollar
processing cycle. signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
BORR_NEXT_PAY_DUE_DATE The date at the end of processing cycle that the borrower's MM/DD/YYYY
next payment is due to the Servicer, as reported by Servicer. 10
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
SERV_CURT_AMT_1 The first curtailment amount to be applied. 2 No commas(,) or dollar
signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
SERV_CURT_DATE_1 The curtailment date associated with the first curtailment MM/DD/YYYY
amount. 10
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
CURT_ADJ_ AMT_1 The curtailment interest on the first curtailment amount, if 2 No commas(,) or dollar
applicable. signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
SERV_CURT_AMT_2 The second curtailment amount to be applied. 2 No commas(,) or dollar
signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
SERV_CURT_DATE_2 The curtailment date associated with the second curtailment MM/DD/YYYY
amount. 10
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
CURT_ADJ_ AMT_2 The curtailment interest on the second curtailment amount, if 2 No commas(,) or dollar
applicable. signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Exhibit Five-2
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
Exhibit 1: Continued Standard Loan Level File Layout
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
Column Name Description Decimal Format Comment
Max
Size
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
SERV_CURT_AMT_3 The third curtailment amount to be applied. 2 No commas(,) or dollar
signs ($) 11
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
SERV_CURT_DATE_3 The curtailment date associated with the third curtailment MM/DD/YYYY 10
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
CURT_ADJ_AMT_3 The curtailment interest on the third curtailment amount, if 2 No commas(,) or dollar
applicable. signs ($) 11
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
PIF_AMT The loan "paid in full" amount as reported by the Servicer. 2 No commas(,) or dollar
signs ($) 11
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
PIF_DATE The paid in full date as reported by the Servicer. MM/DD/YYYY 10
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
Action Code Key:
ACTION_CODE The standard FNMA numeric code used to indicate the 15=Bankruptcy, 2
default/delinquent status of a particular loan. 30=Foreclosure, , 60=PIF,
63=Substitution,
65=Repurchase,70=REO
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
INT_ADJ_AMT The amount of the interest adjustment as reported by the 2 No commas(,) or dollar
Servicer. signs ($) 11
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
SOLDIER_SAILOR_ADJ_AMT The Soldier and Sailor Adjustment amount, if applicable. 2 No commas(,) or dollar
signs ($) 11
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
NON_ADV_LOAN_AMT The Non Recoverable Loan Amount, if applicable. 2 No commas(,) or dollar
signs ($) 11
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
LOAN_LOSS_AMT The amount the Servicer is passing as a loss, if applicable. 2 No commas(,) or dollar
signs ($) 11
--------------------------------------------------------------------------------------- ------- ----------------------------- ------
Plus the following applicable fields:
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
SCHED_BEG_PRIN_BAL The scheduled outstanding principal amount due at 2 No commas(,) or dollar
the beginning of the cycle date to be passed through signs ($) 11
to investors.
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
SCHED_END_PRIN_BAL The scheduled principal balance due to investors at 2 No commas(,) or dollar
the end of a processing cycle. signs ($) 11
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
SCHED_PRIN_AMT The scheduled principal amount as reported by the 2 No commas(,) or dollar
Servicer for the current cycle -- only applicable for signs ($) 11
Scheduled/Scheduled Loans.
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
Exhibit Five-3
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
SCHED_NET_INT The scheduled gross interest amount less the service 2 No commas(,) or dollar
fee amount for the current cycle as reported by the signs ($) 11
Servicer -- only applicable for Scheduled/Scheduled
Loans.
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
ACTL_PRIN_AMT The actual principal amount collected by the Servicer 2 No commas(,) or dollar
for the current reporting cycle -- only applicable for signs ($) 11
Actual/Actual Loans.
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
ACTL_NET_INT The actual gross interest amount less the service fee 2 No commas(,) or dollar
amount for the current reporting cycle as reported by signs ($) 11
the Servicer -- only applicable for Actual/Actual Loans.
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
PREPAY_PENALTY_ AMT The penalty amount received when a borrower 2 No commas(,) or dollar
prepays on his loan as reported by the Servicer. signs ($) 11
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
PREPAY_PENALTY_ WAIVED The prepayment penalty amount for the loan waived 2 No commas(,) or dollar
by the servicer. signs ($) 11
------------------------- ------------------------------------------------------------- ------- ----------------------------- ------
Exhibit Five-4
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Exhibit 1: Continued Standard Loan Level File Layout
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Column Name Description Decimal Format Comment Max
Size
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
MOD_DATE The Effective Payment Date of the Modification for the loan. MM/DD/YYYY
10
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
MOD_TYPE The Modification Type. Varchar - value can be
alpha or numeric 30
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
DELINQ_P&I_ADVANCE_AMT The current outstanding principal and interest advances made by 2 No commas(,) or dollar
Servicer. signs ($) 11
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Flag to indicate if the repurchase of a loan is due to a breach Y=Breach
BREACH_FLAG of Representations and Warranties N=NO Breach 1
Let blank if N/A
----------------------- --------------------------------------------------------------- ------- ----------------------------- ------
Exhibit Five-5
Exhibit 2: Monthly Summary Report by Single Investor
MONTHLY SUMMARY REPORT
For Month Ended: mm/dd/yyyy Servicer Name
----------- -----------------------
Prepared by: Investor Nbr
-------------------------------- ------------------------
--------------------------------------------------------------------------------
Section 1. Remittances and Ending Balances - Required Data
--------------------------------------------------------------------------------
Beginning Ending Total Monthly Total Ending Unpaid Total Monthly
Loan Count Loan Count Remittance Amo Principal Balance Principal Balance
--------------------------------------------------------------------------------
0 0 $0.00 $0.00 $0.00
--------------------------------------------------------------------------------
Principal Calculation
---------------------
1. Monthly Principal Due +$0.00
2. Current Curtailments +$0.00
3. Liquidations +$0.00
4. Other (attach explanation) +$0.00
5. Principal Due $0.00
6. Interest (reported "gross") +$0.00
7. Interest Adjustments on Curtailments +$0.00
8. Servicing Fees -$0.00
9. Other Interest (attach explanation) +$0.00
10. Interest Due (need to subtract ser fee) $0.00
=====
Remittance Calculation
----------------------
11. Total Principal and Interest Due (lines 5+10) +$0.00
12. Reimbursement of Non-Recoverable Advances -$0.00
13. Total Realized gains +$0.00
14. Total Realized Losses -$0.00
15. Total Prepayment Penalties +$0.00
16. Total Non-Supported Compensating Interest -$0.00
17. Other (attach explanation) $0.00
18. Net Funds Due on or before Remittance Date $$0.00
Exhibit Five-6
------------------------------------------------------------------------------------------
Section 2. Delinquency Report - Optional Data for Loan Accounting
------------------------------------------------------------------------------------------
Installments Delinquent
------------------------------------------------------------------------------------------
Total No. Total No. In Real Estate Total Dollar
of of 30- 60- 90 or more Foreclosure Owned Amount of
Loans Delinquencies Days Days Days (Optional) (Optional) Delinquencies
------------------------------------------------------------------------------------------
0 0 0 0 0 0 0 $0.00
------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Section 3. REG AB Summary Reporting - REPORT ALL APPLICABLE FIELDS
--------------------------------------------------------------------------------
REG XX XXXXXX LOAN COUNT BALANCE
--------------------------------------------------------------------------------
PREPAYMENT PENALTY AMT 0 $0.00
--------------------------------------------------------------------------------
PREPAYMENT PENALTY AMT WAIVED 0 $0.00
--------------------------------------------------------------------------------
DELINQUENCY P&I AMOUNT 0 $0.00
--------------------------------------------------------------------------------
Exhibit Five-7
Exhibit : Standard File Layout - Delinquency Reporting
*The column/header names in bold are the minimum fields Xxxxx Fargo must
receive from every Servicer
------------------------------- ------------------------------------------------------------------ --------- -----------------------
Column/Header Name Description Decimal Format Comment
------------------------------- ------------------------------------------------------------------ --------- -----------------------
SERVICER_LOAN_NBR A unique number assigned to a loan by the Servicer. This may be
different than the LOAN_NBR
------------------------------- ------------------------------------------------------------------ --------- -----------------------
LOAN_NBR A unique identifier assigned to each loan by the originator.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
CLIENT_NBR Servicer Client Number
------------------------------- ------------------------------------------------------------------ --------- -----------------------
SERV_INVESTOR_NBR Contains a unique number as assigned by an external
servicer to identify a group of loans in their system.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
BORROWER_FIRST_NAME First Name of the Borrower.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
BORROWER_LAST_NAME Last name of the borrower.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
PROP_ADDRESS Street Name and Number of Property
------------------------------- ------------------------------------------------------------------ --------- -----------------------
PROP_STATE The state where the property located.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
PROP_ZIP Zip code where the property is located.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
BORR_NEXT_PAY_DUE_DATE The date that the borrower's next payment is due to the servicer MM/DD/YYYY
at the end of processing cycle, as reported by Servicer.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
LOAN_TYPE Loan Type (i.e. FHA, VA, Conv)
------------------------------- ------------------------------------------------------------------ --------- -----------------------
BANKRUPTCY_FILED_DATE The date a particular bankruptcy claim was filed. MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
BANKRUPTCY_CHAPTER_CODE The chapter under which the bankruptcy was filed.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
BANKRUPTCY_CASE_NBR The case number assigned by the court to the bankruptcy
filing.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
POST_PETITION_DUE_DATE The payment due date once the bankruptcy has been approved by the MM/DD/YYYY
courts
------------------------------- ------------------------------------------------------------------ --------- -----------------------
BANKRUPTCY_DCHRG_DISM_DATE The Date The Loan Is Removed From Bankruptcy. Either by Dismissal, MM/DD/YYYY
Discharged and/or a Motion For Relief Was Granted.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
LOSS_MIT_APPR_DATE The Date The Loss Mitigation Was Approved By The Servicer MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
LOSS_MIT_TYPE The Type Of Loss Mitigation Approved For A Loan Such As;
------------------------------- ------------------------------------------------------------------ --------- -----------------------
LOSS_MIT_EST_COMP_DATE The Date The Loss Mitigation /Plan Is Scheduled To End/Close MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
LOSS_MIT_ACT_COMP_DATE The Date The Loss Mitigation Is Actually Completed MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
FRCLSR_APPROVED_DATE The date DA Admin sends a letter to the servicer with instructions MM/DD/YYYY
to begin foreclosure proceedings.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
ATTORNEY_REFERRAL_DATE Date File Was Referred To Attorney to Pursue Foreclosure MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
Exhibit Five-8
------------------------------- ------------------------------------------------------------------ --------- -----------------------
FIRST_LEGAL_DATE Notice of 1st legal filed by an Attorney in a Foreclosure Action MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
FRCLSR_SALE_EXPECTED_DATE The date by which a foreclosure sale is expected to occur. MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
FRCLSR_SALE_DATE The actual date of the foreclosure sale. MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
FRCLSR_SALE_AMT The amount a property sold for at the foreclosure sale. 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- -----------------------
EVICTION_START_DATE The date the servicer initiates eviction of the borrower. MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
EVICTION_COMPLETED_DATE The date the court revokes legal possession of the property from MM/DD/YYYY
the borrower.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
LIST_PRICE The price at which an REO property is marketed. 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- -----------------------
LIST_DATE The date an REO property is listed at a particular price. MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
OFFER_AMT The dollar value of an offer for an REO property. 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- -----------------------
OFFER_DATE_TIME The date an offer is received by DA Admin or by the Servicer. MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
REO_CLOSING_DATE The date the REO sale of the property is scheduled to close. MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
REO_ACTUAL_CLOSING_DATE Actual Date Of REO Sale MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
OCCUPANT_CODE Classification of how the property is occupied.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
PROP_CONDITION_CODE A code that indicates the condition of the property.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
PROP_INSPECTION_DATE The date a property inspection is performed. MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
APPRAISAL_DATE The date the appraisal was done. MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- -----------------------
CURR_PROP_VAL The current "as is" value of the property based on brokers 2
price opinion or appraisal.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
REPAIRED_PROP_VAL The amount the property would be worth if repairs are completed 2
pursuant to a broker's price opinion or appraisal.
------------------------------- ------------------------------------------------------------------ --------- -----------------------
If applicable:
------------------------------- ------------------------------------------------------------------ --------- -----------------------
DELINQ_STATUS_CODE FNMA Code Describing Status of Loan
------------------------------- ------------------------------------------------------------------ --------- -----------------------
DELINQ_REASON_CODE The circumstances which caused a borrower to stop paying on a
loan. Code indicates the reason why the loan is in default for
this cycle.
------------------------------- ------------------------------------------------------------------ --------- ----------------------
MI_CLAIM_FILED_DATE Date Mortgage Insurance Claim Was Filed With Mortgage Insurance MM/DD/YYYY
Company.
------------------------------- ------------------------------------------------------------------ --------- ----------------------
MI_CLAIM_AMT Amount of Mortgage Insurance Claim Filed No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
MI_CLAIM_PAID_DATE Date Mortgage Insurance Company Disbursed Claim Payment MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
MI_CLAIM_AMT_PAID Amount Mortgage Insurance Company Paid On Claim 2 No commas(,) or
Exhibit Five-9
------------------------------- ------------------------------------------------------------------ --------- ----------------------
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
POOL_CLAIM_FILED_DATE Date Claim Was Filed With Pool Insurance Company MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
POOL_CLAIM_AMT Amount of Claim Filed With Pool Insurance Company 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
POOL_CLAIM_PAID_DATE Date Claim Was Settled and The Check Was Issued By The Pool MM/DD/YYYY
Insurer
------------------------------- ------------------------------------------------------------------ --------- ----------------------
POOL_CLAIM_AMT_PAID Amount Paid On Claim By Pool Insurance Company 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
FHA_PART_A_CLAIM_FILED_DATE Date FHA Part A Claim Was Filed With HUD MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
FHA_PART_A_CLAIM_AMT Amount of FHA Part A Claim Filed 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
FHA_PART_A_CLAIM_PAID_DATE Date HUD Disbursed Part A Claim Payment MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ---------------------
FHA_PART_A_CLAIM_PAID_AMT Amount HUD Paid on Part A Claim 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
FHA_PART_B_CLAIM_FILED_DATE Date FHA Part B Claim Was Filed With HUD MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
FHA_PART_B_CLAIM_AMT Amount of FHA Part B Claim Filed 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
FHA_PART_B_CLAIM_PAID_DATE Date HUD Disbursed Part B Claim Payment MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
FHA_PART_B_CLAIM_PAID_AMT Amount HUD Paid on Part B Claim 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
VA_CLAIM_FILED_DATE Date VA Claim Was Filed With the Veterans Admin MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
VA_CLAIM_PAID_DATE Date Veterans Admin. Disbursed VA Claim Payment MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
VA_CLAIM_PAID_AMT Amount Veterans Admin. Paid on VA Claim 2 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
MOTION_FOR_RELIEF_DATE The date the Motion for Relief was filed 10 MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
FRCLSR_BID_AMT The foreclosure sale bid amount 11 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
FRCLSR_SALE_TYPE The foreclosure sales results: REO, Third Party, Conveyance
to HUD/VA
------------------------------- ------------------------------------------------------------------ --------- ----------------------
REO_PROCEEDS The net proceeds from the sale of the REO property. No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
BPO_DATE The date the BPO was done.
------------------------------- ------------------------------------------------------------------ --------- ----------------------
CURRENT_FICO The current FICO score
------------------------------- ------------------------------------------------------------------ --------- ----------------------
HAZARD_CLAIM_FILED_DATE The date the Hazard Claim was filed with the Hazard Insurance 10 MM/DD/YYYY
Company.
------------------------------- ------------------------------------------------------------------ --------- ----------------------
HAZARD_CLAIM_AMT The amount of the Hazard Insurance Claim filed. 11 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
Exhibit Five-10
HAZARD_CLAIM_PAID_DATE The date the Hazard Insurance Company disbursed the claim payment. 10 MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
HAZARD_CLAIM_PAID_AMT The amount the Hazard Insurance Company paid on the claim. 11 No commas(,) or
dollar signs ($)
------------------------------- ------------------------------------------------------------------ --------- ----------------------
ACTION_CODE Indicates loan status Number
------------------------------- ------------------------------------------------------------------ --------- ----------------------
NOD_DATE MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
NOI_DATE MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
ACTUAL_PAYMENT_PLAN_START_DATE MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
ACTUAL_PAYMENT_ PLAN_END_DATE
------------------------------- ------------------------------------------------------------------ --------- ----------------------
ACTUAL_REO_START_DATE MM/DD/YYYY
------------------------------- ------------------------------------------------------------------ --------- ----------------------
REO_SALES_PRICE Number
------------------------------- ------------------------------------------------------------------ --------- ----------------------
REALIZED_LOSS/GAIN As defined in the Servicing Agreement Number
------------------------------- ------------------------------------------------------------------ --------- ----------------------
Exhibit 2: Standard File Codes - Delinquency Reporting
The Loss Mit Type field should show the approved Loss Mitigation Code as
follows:
o ASUM- Approved Assumption
o BAP- Borrower Assistance Program
o CO- Charge Off
o DIL- Deed-in-Lieu
o FFA- Formal Forbearance Agreement
o MOD- Loan Modification
o PRE- Pre-Sale
o SS- Short Sale
o MISC- Anything else approved by the PMI or Pool Insurer
NOTE: Xxxxx Fargo Bank will accept alternative Loss Mitigation Types to those
above, provided that they are consistent with industry standards. If Loss
Mitigation Types other than those above are used, the Servicer must supply Xxxxx
Fargo Bank with a description of each of the Loss Mitigation Types prior to
sending the file.
The Occupant Code field should show the current status of the property code as
follows:
Exhibit Five-11
o Mortgagor
o Tenant
o Unknown
o Vacant
The Property Condition field should show the last reported condition of the
property as follows:
o Damaged
o Excellent
o Fair
o Gone
o Good
o Poor
o Special Hazard
o Unknown
Exhibit Five-12
Exhibit 2: Standard File Codes - Delinquency Reporting, Continued
The FNMA Delinquent Reason Code field should show the Reason for Delinquency as
follows:
----------------- --------------------------------------------------------------
Delinquency Code Delinquency Description
----------------- --------------------------------------------------------------
001 FNMA-Death of principal mortgagor
----------------- --------------------------------------------------------------
002 FNMA-Illness of principal mortgagor
----------------- --------------------------------------------------------------
003 FNMA-Illness of mortgagor's family member
----------------- --------------------------------------------------------------
004 FNMA-Death of mortgagor's family member
----------------- --------------------------------------------------------------
005 FNMA-Marital difficulties
----------------- --------------------------------------------------------------
006 FNMA-Curtailment of income
----------------- --------------------------------------------------------------
007 FNMA-Excessive Obligation
----------------- --------------------------------------------------------------
008 FNMA-Abandonment of property
----------------- --------------------------------------------------------------
009 FNMA-Distant employee transfer
----------------- --------------------------------------------------------------
011 FNMA-Property problem
----------------- --------------------------------------------------------------
012 FNMA-Inability to sell property
----------------- --------------------------------------------------------------
013 FNMA-Inability to rent property
----------------- --------------------------------------------------------------
014 FNMA-Military Service
----------------- --------------------------------------------------------------
015 FNMA-Other
----------------- --------------------------------------------------------------
016 FNMA-Unemployment
----------------- --------------------------------------------------------------
017 FNMA-Business failure
----------------- --------------------------------------------------------------
019 FNMA-Casualty loss
----------------- --------------------------------------------------------------
022 FNMA-Energy environment costs
----------------- --------------------------------------------------------------
023 FNMA-Servicing problems
----------------- --------------------------------------------------------------
026 FNMA-Payment adjustment
----------------- --------------------------------------------------------------
027 FNMA-Payment dispute
----------------- --------------------------------------------------------------
029 FNMA-Transfer of ownership pending
----------------- --------------------------------------------------------------
030 FNMA-Fraud
----------------- --------------------------------------------------------------
031 FNMA-Unable to contact borrower
----------------- --------------------------------------------------------------
INC FNMA-Incarceration
----------------- --------------------------------------------------------------
Exhibit Five-13
Exhibit 2: Standard File Codes - Delinquency Reporting, Continued
The FNMA Delinquent Status Code field should show the Status of Default as
follows:
----------------------------- --------------------------------------------------
Status Code Status Description
----------------------------- --------------------------------------------------
09 Forbearance
----------------------------- --------------------------------------------------
17 Pre-foreclosure Sale Closing Plan Accepted
----------------------------- --------------------------------------------------
24 Government Seizure
----------------------------- --------------------------------------------------
26 Refinance
----------------------------- --------------------------------------------------
27 Assumption
----------------------------- --------------------------------------------------
28 Modification
----------------------------- --------------------------------------------------
29 Charge-Off
----------------------------- --------------------------------------------------
30 Third Party Sale
----------------------------- --------------------------------------------------
31 Probate
----------------------------- --------------------------------------------------
32 Military Indulgence
----------------------------- --------------------------------------------------
43 Foreclosure Started
----------------------------- --------------------------------------------------
44 Deed-in-Lieu Started
----------------------------- --------------------------------------------------
49 Assignment Completed
----------------------------- --------------------------------------------------
61 Second Lien Considerations
----------------------------- --------------------------------------------------
62 Veteran's Affairs-No Bid
----------------------------- --------------------------------------------------
63 Veteran's Affairs-Refund
----------------------------- --------------------------------------------------
64 Veteran's Affairs-Buydown
----------------------------- --------------------------------------------------
65 Chapter 7 Bankruptcy
----------------------------- --------------------------------------------------
66 Chapter 11 Bankruptcy
----------------------------- --------------------------------------------------
67 Chapter 13 Bankruptcy
----------------------------- --------------------------------------------------
Exhibit Five-14
Calculation of Realized Loss/Gain Form 332
Instruction Sheet
NOTE: Do not net or combine items. Show all expenses individually and all
credits as separate line items. Claim packages are due on the remittance report
date. Late submissions may result in claims not being passed until the following
month. The Servicer is responsible to remit all funds pending loss approval
and/or resolution of any disputed items.
(i) The numbers on the 332 form correspond with the numbers listed below.
Liquidation and Acquisition Expenses:
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1. The Actual Unpaid Principal Balance of the Mortgage Loan. For
documentation, an Amortization Schedule from date of default through
liquidation breaking out the net interest and servicing fees advanced is
required.
2. The Total Interest Due less the aggregate amount of servicing fee that
would have been earned if all delinquent payments had been made as agreed.
For documentation, an Amortization Schedule from date of default through
liquidation breaking out the net interest and servicing fees advanced is
required.
3. Accrued Servicing Fees based upon the Scheduled Principal Balance of the
Mortgage Loan as calculated on a monthly basis. For documentation, an
Amortization Schedule from date of default through liquidation breaking out
the net interest and servicing fees advanced is required.
4-12. Complete as applicable. Required documentation:
o For taxes and insurance advances - see page 2 of 332 form - breakdown
required showing period of coverage, base tax, interest, penalty. Advances
prior to default require evidence of servicer efforts to recover advances.
o For escrow advances - complete payment history (to calculate advances from
last positive escrow balance forward)
o Other expenses - copies of corporate advance history showing all payments
o REO repairs> $1500 require explanation
o REO repairs >$3000 require evidence of at least 2 bids.
o Short Sale or Charge Off require P&L supporting the decision and WFB's
approved Officer Certificate
o Unusual or extraordinary items may require further documentation.
13. The total of lines 1 through 12.
Exhibit Five-15
(ii) Credits:
14-21. Complete as applicable. Required documentation:
o Copy of the HUD 1 from the REO sale. If a 3rd Party Sale, bid instructions
and Escrow Agent / Attorney
o Letter of Proceeds Breakdown.
o Copy of EOB for any MI or gov't guarantee
o All other credits need to be clearly defined on the 332 form
22. The total of lines 14 through 21.
Please Note: For HUD/VA loans, use line (18a) for Part A/Initial
proceeds and line (18b) for Part B/Supplemental proceeds.
Total Realized Loss (or Amount of Any Gain)
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23. The total derived from subtracting line 22 from 13. If the amount
represents a realized show the amount in parenthesis ( ).
Exhibit Five-16
Calculation of Realized Loss/Gain Form 332
Prepared by: Date:
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Phone: Email Address:
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| Servicer Loan No. | | Servicer Name | | Servicer Address |
| | | | | |
------------------- ------------------ ------------------
XXXXX FARGO BANK, N.A. Loan No. _____________________________________
Borrower's Name: ______________________________________________________
Property Address: _____________________________________________________
Liquidation Type: REO Sale 3rd Party Sale Short Sale Charge Off
Was this loan granted a Bankruptcy deficiency or cramdown Yes No
If "Yes", provide deficiency or cram down amount ___________________________
Liquidation and Acquisition Expenses:
(1) Actual Unpaid Principal Balance of Mortgage Loan $ (1)
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(2) Interest accrued at Net Rate (2)
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(3) Accrued Servicing Fees (3)
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(4) Attorney's Fees (4)
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(5) Taxes (see page 2) (5)
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(6) Property Maintenance (6)
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(7) MI/Hazard Insurance Premiums (see page 2) (7)
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(8) Utility Expenses (8)
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(9) Appraisal/BPO (9)
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(10) Property Inspections (10)
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(11) FC Costs/Other Legal Expenses (11)
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(12) Other (itemize) (12)
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Cash for Keys (12)
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HOA/Condo Fees (12)
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(12)
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Total Expenses $ (13)
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Credits:
(14) Escrow Balance $ (14)
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(15) HIP Refund (15)
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(16) Rental Receipts (16)
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(17) Hazard Loss Proceeds ------------------ (17)
Exhibit Five-17
(18) Primary Mortgage Insurance/Gov't Insurance HUD
Part A (18a)
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HUD Part B (18b)
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(19) Pool Insurance Proceeds (19)
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(20) Proceeds from Sale of Acquired Property (20)
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(21) Other (itemize) (21)
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Total Credits $ (22)
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Total Realized Loss (or Amount of Gain) $ (23)
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Exhibit Five-18
Escrow Disbursement Detail
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Type Date Paid Period of Total Paid Base Penalties Interest
(Tax/Ins.) Coverage Amount
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------------------ --------------------- ----------- ---------- ---------- --------------------- ---------------------
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Exhibit Five-19
EXHIBIT SIX
Exhibit H
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LUMINENT MORTGAGE CAPITAL, INC.
MAIA MORTGAGE FINANCE STATUTORY TRUST
MERCURY MORTGAGE FINANCE STATUTORY TRUST
00000 Xxxxxx Xx., 00xx Xxxxx
Xxxxxxxxxxxx, XX 00000
November 30, 2006
Washington Mutual Bank
0000 Xxxxxxx Xxx. (Mail Stop N080108)
Xxxxxxxxxx, XX 00000
Attn: Vice President, Investor Reporting
RE: Special Foreclosure Rights Provisions
Ladies and Gentlemen:
Reference is made to that certain Servicing Agreement between us dated as of
November 1, 2006 (the "Servicing Agreement"), which provides for you to service
Mortgage Loans acquired by us from time to time from Washington Mutual Mortgage
Securities Corp. In the event that a Securitization Transaction is effected with
respect to any Mortgage Loans, the provisions of this Letter Agreement shall
apply, and for so long as the holder of the most subordinated class of
securities (the "Securityholder") owns all of the securities in the most
subordinated class of securities, the Securityholder shall, subject to paragraph
12 hereof, have the rights set forth herein. Capitalized terms used herein and
not defined herein shall have the respective meanings assigned to them in the
Servicing Agreement.
1. The Servicer shall include in its monthly servicing reports a code
indicating each Mortgage Loan that is 60 or more days delinquent, 90 or
more days delinquent, and each Mortgage Loan that is in foreclosure or
similar proceedings. The Servicer shall notify the Securityholder at least
five Business Days before a Mortgage Loan will become REO pursuant to
foreclosure or similar proceedings.
2. Within five Business Days of its receipt of the monthly servicing report or
three Business Days of its notice of impending REO, the Securityholder
shall notify both the Servicer and Master Servicer if it objects to the
proposed course of action.
3. If the Securityholder does not object pursuant to paragraph 2 above, the
Servicer shall continue to service the Mortgage Loan in accordance with the
provisions of the Servicing Agreement (as reconstituted).
Exhibit Six-1
Washington Mutual Bank
November 30, 2006
Page
4. If the Securityholder timely and affirmatively objects pursuant to
paragraph 2 above, then the Servicer may continue to service the Mortgage
Loan in accordance with the provisions of the Servicing Agreement (as
reconstituted), and the Securityholder shall instruct the Master Servicer
(with a copy to the Servicer) to hire three appraisal firms to compute the
fair value of the Mortgaged Property securing the related Mortgage Loan
utilizing the Xxxxxx Xxx Form 2055 Exterior-Only Inspection Residential
Appraisal Report (each such appraisal-firm computation, a "Fair Value
Price"), in each case no later than 30 days from the date of such
Securityholder objection. The Master Servicer shall select the
appraisal firms in its discretion from the list of appraisal firms set
forth on Exhibit A attached (which made be modified or supplemented from
time to time by the Servicer). All costs relating to the computation of the
Fair Value Prices shall be for the account of the Securityholder and shall
be paid by the Securityholder at the time that such Mortgage Loan is
purchased by the Securityholder.
(a) If the Master Servicer shall have received three Fair Value Prices
by the expiration of such 30-day period, then the Securityholder shall, no
later than five Business Days after the expiration of such 30-day period,
purchase such Mortgage Loan for an amount equal to the lesser of (i) the
unpaid principal balance of the related Mortgage Loan (the "Unpaid
Principal Balance") and (ii) the average of such three
Fair Value Prices respectively determined by such appraisal firms,
but in no event less than the aggregate amount of Monthly Advances,
Servicing Advances and other sums owed to the Servicer with respect to
such Mortgage Loan, including but not limited to Nonrecoverable
Advances (collectively, "Servicer Payments").
(b) If the Master Servicer shall not have received three Fair Value
Prices by the end of the 30-day period set forth above, then:
(i) If the Master Servicer shall have received only two Fair
Value Prices by the end of such 30-day period, then the Master
Servicer shall determine, in its reasonable discretion, the fair value
of the Mortgaged Property and other collateral relating to such
Mortgage Loan (such fair value, the "Master Servicer's Fair Value
Price") and the Securityholder shall, no later than five Business Days
after the expiration of such 30-day period, purchase such Mortgage
Loan for an amount equal to the least of (1) the Unpaid Principal
Balance thereof, (2) the average of such Fair Value Prices determined
by such appraisal firms and (3) the Master Servicer's Fair Value
Price; but in no event less than the Servicer Payments with respect to
such Mortgage Loan.
(ii) If the Master Servicer shall have received only one Fair
Value Price by the end of such 30-day period, then the Master Servicer
Exhibit Six-2
Washington Mutual Bank
November 30, 2006
Page 3
will determine the Master Servicer's Fair Value Price of the Mortgaged
Property related to such Mortgage Loan and the Securityholder shall,
no later than five Business Days after the expiration of such 30-day
period, purchase such Mortgage Loan for an amount equal to the least
of (1) the Unpaid Principal Balance thereof, (2) the Fair Value Price
determined by such appraisal firm and (3) the Master Servicer's Fair
Value Price; but in no event less than the Servicer Payments with
respect to such Mortgage Loan;. Within five Business Days thereafter,
the Servicer shall assign the related Mortgage Loan and deliver the
related documents comprising the Collateral File.
(iii) If the Master Servicer shall not have received any such
Fair Value Prices by the end of such 30-day period, then the Master
Servicer will determine the Master Servicer's Fair Value Price of the
Mortgaged Property related to such Mortgage Loan and the
Securityholder shall, no later than five Business Days after the
expiration of such 30-day period, purchase such Mortgage Loan for an
amount equal to the lesser of (1) the Unpaid Principal Balance thereof
and (2) the Master Servicer's Fair Value Price; but in no event less
than the Servicer Payments with respect to such Mortgage Loan.
(iv) If the Master Servicer has not received three Fair Value
Prices by the end of such 30-day period, it shall continue for the
next 30 days to try to obtain three Fair Value Prices. Upon the
earlier of the date that it obtains the three Fair Value Prices, or
the end of the 30-day extension, the Master Servicer shall recalculate
the price payable pursuant to this Letter Agreement and, within five
Business Days thereafter, (i) the Securityholder shall pay the
Servicer the positive difference between the recalculated purchase
price, and the price actually paid by it, or (ii) the Servicer shall
refund to the Securityholder the positive difference between the
purchase price actually paid by the Securityholder, and the
recalculated purchase price. In no event shall the final amount
received by the Servicer be less than the Servicer Payments with
respect to such Mortgage Loan.
(v) In the event the amount received by the Servicer pursuant to
paragraph 4(iv) above is in excess of the Servicer Payments, the
Servicer shall be entitled to retain an amount equal to Servicer
Payments and shall deposit any excess in the Custodial Account for P&I
for distribution on the following Remittance Date.
Exhibit Six-3
Washington Mutual Bank
November 30, 2006
Page 4
5. If the Securityholder shall fail to purchase a Mortgage Loan following its
objection pursuant to paragraph 2 above, it shall forfeit any right to
purchase such Mortgage Loan or direct any proceedings with respect thereto.
6. The Securityholder agrees to indemnify and hold harmless the Servicer and
each person, if any, who controls the Servicer within the meaning of
Section 15 of the Securities Act of 1933 or Section 20 of the Securities
Exchange Act of 1934, against any and all losses, claims, damages,
liabilities or expenses (including, but not limited to, reasonable
attorneys' fees and any and all expenses incurred in investigating,
preparing and defending against any claims therefor, and any amount paid in
settlement of any claim or litigation, except as otherwise provided
herein), to which such indemnified party may be subject, insofar as such
losses, claims, damages, liabilities and expenses arise out of or are based
upon (a) the Securityholder's breach of its obligations hereunder or (b)
the Servicer's taking any action or failing to take any action pursuant to
the Securityholder's instructions in accordance herewith.
With respect to each claim for indemnification made hereunder, the Servicer
shall notify the Securityholder in writing, giving notice of the nature of
the claim, promptly after receipt of a service of a summons or other first
legal process that shall have been served upon such Servicer, but failure
to notify the Securityholder of any such claim shall not relieve the
Securityholder from any liability which it may have to the Servicer on
account of the indemnity contained in this letter agreement, except to the
extent that the Securityholder has been materially prejudiced by such
failure.
The Securityholder will be entitled to participate at its own expense in
the defense or, if the Securityholder so elects, to assume the defense of
any suit brought to enforce any such liability (jointly with any other
Securityholder similarly notified), but if the Securityholder elects to
assume the defense, such defense shall be conducted by counsel reasonably
satisfactory to the Servicer. After notice from the Securityholder to such
Servicer of its election to so assume the defense thereof, the
Securityholder shall not be liable to such Servicer under this letter
agreement for any legal or other expenses subsequently incurred by such
Servicer in connection with the defense thereof other than reasonable costs
of investigation. In the event the Securityholder elects to assume the
defense of any such suit and retain such counsel, the Servicer or persons,
defendant or defendants in the suit, may retain additional counsel but
shall bear the fees and expenses of such counsel unless: (i) the
Securityhholder shall have agreed to the retention of such counsel at the
expense of the Securityholder; or (ii) the named parties to any such
proceeding (including any impleaded parties) include both the
Securityholder and the Servicer, and representation of both by the same
Exhibit Six-4
Washington Mutual Bank
November 30, 2006
Page 5
counsel would be inappropriate due to actual or potential differing
interests between them. In no event shall the Securityholder be liable, in
connection with any proceeding or separate but similar proceedings in the
same jurisdiction arising out of the same general allegations or
circumstances, for the fees and expenses of more than one counsel (separate
from its own counsel) for the Servicer.
The Securityholder shall not be liable to indemnify any person for any
settlement of any claim effected without the Securityholder's written
consent or if there be a final judgment for the plaintiff in any such
action, the Securityholderagrees to indemnify and hold harmless any
Servicer from and against any loss or liability by reason of such
settlement or judgment. If the Securityholder assumes the defense of any
proceeding, the Securityholder shall not, without the prior written consent
of an Servicer, which consent will not be unreasonably withheld, effect any
settlement of any pending or threatened proceeding in respect of which such
Servicer is or could have been a party and indemnity is or could have been
sought hereunder by such Servicer unless such settlement (i) includes an
unconditional release of such Servicer from all liability on any claims
that are the subject of such action and (ii) does not include a statement
as to, or an admission of, fault, culpability or failure to act by or on
behalf of an Servicer.
Notwithstanding anything to the contrary contained in this letter
agreement, in no event shall the Securityholder have any liability for any
indirect, special, punitive or consequential damages, losses, costs or
expenses incurred by any Servicer hereunder.
7. Any notice, confirmation, instruction or objection pursuant to paragraphs 1
or 2 above may be delivered via facsimile or other written or electronic
communication as the parties hereto and the Securityholder may agree to
from time to time.
8. For the avoidance of doubt, the Securityholder's rights set forth in this
Letter Agreement are intended to provide the Securityholder, for so long as
it (i) has not forfeited its right under paragraph 4 hereof as set forth in
paragraph 5 above and (ii) owns all of the securities in the most
subordinated class of securities, with the unilateral right to control
foreclosure decisions in respect of delinquent and defaulted Mortgage
Loans, and certain exclusive purchase rights so as to maximize the recovery
value on delinquent and defaulted Mortgage Loans.
9. If the the Securityholder purchases any Mortgage Loan pursuant to this
Letter Agreement, the Servicer shall relinquish its servicing rights with
regard to such Mortgage Loan, and the Securityholder shall be responsible
to service or contract for the servicing thereof. The parties agree to
cooperate in the expeditious transfer of servicing with regard to such
Mortgage Loan.
Exhibit Six-5
Washington Mutual Bank
November 30, 2006
Page 6
10. In the event that the Securityholder purchases any Mortgage Loan pursuant
to this Letter Agreement, the Servicer and the Securityholder will work
together in good faith to take any and all actions necessary to effect such
purchase, including, but not limited to, the preparation and execution of
any endorsements or assignments of the Mortgage Loan documents and the
delivery of same to the Securityholder or its designee, all at the expense
of the Securityholder.
11. The Master Servicer shall promptly deliver any written notices that it
receives under Section 1 of this Letter Agreement to the Securityholder,
and shall provide copies of each Fair Value Price appraisal and Master
Servicer's Fair Value Price with respect to any Mortgage Loan to the
Servicer.
12. This Letter Agreement and the rights set forth herein may be transferred by
the Securityholder with the prior consent of the Servicer, which consent
shall not be unreasonably withheld, delayed or conditioned.
If the foregoing is consistent with your understanding, please execute and
return a copy of this Letter Agreement to us. Thank you.
[Signature Page Follows]
Exhibit Six-6
LUMINENT MORTGAGE CAPITAL,
INC.
By: ________________________________
Name:
Title:
MERCURY MORTGAGE FINANCE
STATUTORY TRUST
By: ________________________________
Name:
Title:
MAIA MORTGAGE FINANCE
STATUTORY TRUST
By: ________________________________
Name:
Title:
SEEN AND AGREED:
WASHINGTON MUTUAL BANK
By: ________________________________
Name:
Title:
Exhibit Six-7
