Exhibit 99.2
EXECUTION
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AURORA LOAN SERVICES LLC,
as Servicer
XXXXXX BROTHERS HOLDINGS INC.,
as Seller
and
AURORA LOAN SERVICES LLC
as Master Servicer
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Structured Adjustable Rate Mortgage Loan Trust
Mortgage Pass-Through Certificates, Series 2005-4
SERVICING AGREEMENT
Dated as of February 1, 2005
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TABLE OF CONTENTS
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ARTICLE I. DEFINITIONS...........................................................................................2
ARTICLE II. SELLER'S ENGAGEMENT OF SERVICER TO PERFORM SERVICING RESPONSIBILITIES...............................12
Section 2.01 Contract for Servicing; Possession of Servicing Files.....................................12
Section 2.02 Books and Records.........................................................................13
ARTICLE III. SERVICING OF THE MORTGAGE LOANS....................................................................14
Section 3.01 Servicer to Service.......................................................................14
Section 3.02 Collection of Mortgage Loan Payments......................................................16
Section 3.03 Establishment of and Deposits to Custodial Account........................................16
Section 3.04 Permitted Withdrawals From Custodial Account..............................................17
Section 3.05 Establishment of and Deposits to Escrow Account...........................................19
Section 3.06 Permitted Withdrawals From Escrow Account.................................................19
Section 3.07 Maintenance of PMI Policy and/or LPMI Policy; Claims......................................20
Section 3.08 Fidelity Bond and Errors and Omissions Insurance..........................................21
Section 3.09 Notification of Adjustments...............................................................21
Section 3.10 Completion and Recordation of Assignments of Mortgage.....................................22
Section 3.11 Protection of Accounts....................................................................22
Section 3.12 Payment of Taxes, Insurance and Other Charges.............................................22
Section 3.13 Maintenance of Hazard Insurance...........................................................23
Section 3.14 Maintenance of Mortgage Blanket Insurance.................................................23
Section 3.15 Restoration of Mortgaged Property.........................................................24
Section 3.16 Title, Management and Disposition of REO Property.........................................24
Section 3.17 Real Estate Owned Reports.................................................................27
Section 3.18 MERS......................................................................................27
Section 3.19 Waiver of Prepayment Penalty Amounts......................................................27
Section 3.20 Credit Reporting..........................................................................28
ARTICLE IV. PAYMENTS TO MASTER SERVICER.........................................................................28
Section 4.01 Remittances...............................................................................28
Section 4.02 Statements to Master Servicer.............................................................29
Section 4.03 Monthly Advances by Servicer..............................................................30
ARTICLE V. GENERAL SERVICING PROCEDURES.........................................................................30
Section 5.01 Servicing Compensation....................................................................30
Section 5.02 Annual Audit Report.......................................................................31
Section 5.03 Annual Officer's Certificate..............................................................31
Section 5.04 Transfers of Mortgaged Property...........................................................32
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ARTICLE VI. REPRESENTATIONS, WARRANTIES AND AGREEMENTS..........................................................33
Section 6.01 Representations, Warranties and Agreements of the Servicer................................33
Section 6.02 Remedies for Breach of Representations and Warranties of the Servicer.....................34
Section 6.03 Additional Indemnification by the Servicer; Third Party Claims............................35
Section 6.04 Indemnification with Respect to Certain Taxes and Loss of REMIC Status....................36
ARTICLE VII. THE SERVICER.......................................................................................37
Section 7.01 Merger or Consolidation of the Servicer...................................................37
Section 7.02 Limitation on Liability of the Servicer and Others........................................37
Section 7.03 Limitation on Resignation and Assignment by the Servicer..................................37
Section 7.04 Subservicing Agreements and Successor Subservicer.........................................38
ARTICLE VIII. TERMINATION.......................................................................................39
Section 8.01 Termination for Cause.....................................................................39
Section 8.02 Termination Without Cause.................................................................41
ARTICLE IX. MISCELLANEOUS PROVISIONS............................................................................41
Section 9.01 Successor to the Servicer.................................................................41
Section 9.02 Costs.....................................................................................43
Section 9.03 Notices...................................................................................43
Section 9.04 Severability Clause.......................................................................45
Section 9.05 No Personal Solicitation..................................................................45
Section 9.06 Counterparts..............................................................................46
Section 9.07 Place of Delivery and Governing Law.......................................................46
Section 9.08 Further Agreements........................................................................46
Section 9.09 Intention of the Parties..................................................................46
Section 9.10 Successors and Assigns; Assignment of Servicing Agreement.................................46
Section 9.11 Assignment by the Seller..................................................................46
Section 9.12 Amendment.................................................................................47
Section 9.13 Waivers...................................................................................47
Section 9.14 Exhibits..................................................................................47
Section 9.15 General Interpretive Principles...........................................................47
Section 9.16 Reproduction of Documents.................................................................48
Section 9.17 Protection of Confidential Information....................................................48
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EXHIBITS & SCHEDULES
EXHIBIT A Mortgage Loan Schedule
EXHIBIT B Custodial Account Certification Notice
EXHIBIT C Escrow Account Certification Notice
EXHIBIT D-1 Form of Monthly Remittance Advice
EXHIBIT D-2 Standard Layout for Monthly Defaulted Loan Report
EXHIBIT E Form of Certification to be Provided to the Depositor, the Trustee
And the Master Servicer by the Servicer
EXHIBIT F Assignment and Assumption Agreement
EXHIBIT G Pool 2 Mortgage Loans
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SERVICING AGREEMENT
THIS SERVICING AGREEMENT (this "Agreement"), entered into as of the 1st
day of February, 2005, by and between XXXXXX BROTHERS HOLDINGS INC., a Delaware
corporation (the "Seller"), AURORA LOAN SERVICES LLC, a Delaware limited
liability company (the "Servicer"), and AURORA LOAN SERVICES LLC, as Master
Servicer under the Trust Agreement (as defined herein) recites and provides as
follows:
RECITALS
WHEREAS, the Servicer and Xxxxxx Brothers Bank, FSB (the "Bank") are
parties to a Flow Servicing Agreement, dated as of August 31, 1999 (the "Bank
Flow Servicing Agreement"), pursuant to which the Servicer services certain of
the residential adjustable rate mortgage loans identified on Exhibit A hereto
(the "Bank Mortgage Loans");
WHEREAS, pursuant to an Assignment and Assumption Agreement, dated August
1, 2003 (the "Assignment Agreement"), the Seller acquired from the Bank all of
the Bank's right, title and interest in and to the mortgage loans currently
serviced under the Bank Flow Servicing Agreement and assumed for the benefit of
the Servicer and the Bank the rights and obligations of the Bank as owner of
such mortgage loans pursuant to the Bank Flow Servicing Agreement;
WHEREAS, the Servicer and the Seller are parties to a Flow Servicing
Agreement, dated as of February 15, 2000 (the "Holdings Flow Servicing
Agreement"), pursuant to which the Servicer services certain of the mortgage
loans identified on Exhibit A hereto (the "Holdings Mortgage Loans," and
together with the Bank Mortgage Loans, the "Mortgage Loans");
WHEREAS, the Seller has conveyed such Mortgage Loans on a
servicing-retained basis to Structured Asset Securities Corporation (the
"Depositor"), which in turn has conveyed the Mortgage Loans to HSBC Bank USA,
National Association, as trustee (the "Trustee"), under a trust agreement dated
as of February 1, 2005 (the "Trust Agreement"), among the Trustee, Aurora Loan
Services LLC, as master servicer (together with any successor Master Servicer
appointed pursuant to the provisions of the Trust Agreement, the "Master
Servicer"), Xxxxx Fargo Bank, National Association, as securities administrator
and the Depositor;
WHEREAS, from time to time certain other of the mortgage loans conveyed by
the Depositor to the Trustee under the Trust Agreement on the Closing Date and
serviced by other servicers may subsequent to the Closing Date be transferred to
the Servicer for servicing under this Agreement and Exhibit A hereto will be
amended to include such mortgage loans which will then be "Mortgage Loans" under
this Agreement;
WHEREAS, the Seller desires that the Servicer service the Mortgage Loans
pursuant to this Agreement, and the Servicer has agreed to do so, subject to the
right of the Seller and of the Master Servicer to terminate the rights and
obligations of the Servicer hereunder at any time and to the other conditions
set forth herein;
WHEREAS, the Seller and the Servicer agree that the provisions of the Bank
Flow Servicing Agreement and Holdings Flow Servicing Agreement shall not apply
to such related Mortgage Loans for so long as such related Mortgage Loans remain
subject to the provisions of the Trust Agreement;
WHEREAS, the Master Servicer shall be obligated under the Trust Agreement,
among other things, to supervise the servicing of the Mortgage Loans on behalf
of the Trustee, and shall have the right, under certain circumstances, to
terminate the rights and obligations of the Servicer under this Servicing
Agreement;
WHEREAS, the Seller and the Servicer agree that the provisions of the Bank
Flow Servicing Agreement and the Holdings Flow Servicing Agreement shall not
apply to the related Mortgage Loans for so long as such Mortgage Loans remain
subject to the provisions of the Trust Agreement;
WHEREAS, the Seller and the Servicer acknowledge and agree that the Seller
will assign all of its rights and delegate all of its obligations hereunder
(excluding the Seller's rights and obligations as owner of the servicing rights
relating to the Mortgage Loans) to the Trustee, and that each reference herein
to the Seller is intended, unless otherwise specified, to mean the Seller or the
Trustee, as assignee, whichever is the owner of the Mortgage Loans from time to
time;
NOW, THEREFORE, in consideration of the mutual agreements hereinafter set
forth and for other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the Seller, the Servicer and the Master Servicer
hereby agree as follows:
ARTICLE I.
DEFINITIONS
The following terms are defined as follows (except as otherwise agreed in
writing by the parties):
Accepted Servicing Practices: With respect to any Mortgage Loan, those
mortgage servicing practices of (i) prudent mortgage lending institutions that
service mortgage loans of the same type as such Mortgage Loans in the
jurisdiction where the related Mortgaged Property is located and (ii) in
accordance with applicable state, local and federal laws, rules and regulations.
Adjustable Rate Mortgage Loan: A Mortgage Loan serviced pursuant to this
Agreement under which the Mortgage Interest Rate is adjusted from time to time
in accordance with the terms and provisions of the related Mortgage Note.
Aggregate Loan Balance: At any date of determination, the outstanding
principal balance of the Mortgage Loans serviced hereunder.
Agreement: This Servicing Agreement and all amendments hereof and
supplements hereto.
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Ancillary Income: All income derived from the Mortgage Loans, other than
Servicing Fees, including but not limited to late charges, fees received with
respect to checks or bank drafts returned by the related bank for non-sufficient
funds, assumption fees, optional insurance administrative fees and all other
incidental fees and charges. Ancillary Income shall not include any Prepayment
Penalty Amount.
Assignment of Mortgage: An assignment of the Mortgage, notice of transfer
or equivalent instrument in recordable form, sufficient under the laws of the
jurisdiction wherein the related Mortgaged Property is located to reflect the
transfer of the Mortgage to the party indicated therein, which assignment,
notice of transfer or equivalent instrument may be in the form of one or more
blanket assignments covering the Mortgage Loans secured by Mortgaged Properties
located in the same jurisdiction, if permitted by law.
Bank: Xxxxxx Brothers Bank, FSB or any successor thereto.
Best Efforts: Efforts determined to be reasonably diligent by the Seller
or the Servicer, as the case may be, in its sole discretion. Such efforts do not
require the Seller or the Servicer, as the case may be, to enter into any
litigation, arbitration or other legal or quasi-legal proceeding, nor do they
require the Seller or the Servicer, as the case may be, to advance or expend
fees or sums of money in addition to those specifically set forth in this
Agreement.
Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day
on which banking institutions in Colorado, Nebraska, New York or the state in
which the corporate trust office of the Trustee is located are authorized or
obliged by executive order to be closed.
Certificates: Any or all of the Certificates issued pursuant to the Trust
Agreement.
Closing Date: February 28, 2005.
Code: The Internal Revenue Code of 1986, as it may be amended from time to
time or any successor statute thereto, and applicable U.S. Department of the
Treasury regulations issued pursuant thereto.
Condemnation Proceeds: All awards of settlements in respect of a Mortgaged
Property, whether permanent or temporary, partial or entire, by exercise of the
power of eminent domain or condemnation, to the extent not required to be
released to a Mortgagor in accordance with the terms of the related Mortgage
Loan documents.
Costs: For any Person, any claims, losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments,
and other costs and expenses of such Person.
Custodial Account: The separate account or accounts created and maintained
pursuant to Section 3.03.
Custodial Agreement: The custodial agreements relating to custody of
certain of the Mortgage Loans, between each Custodian and the Trustee, dated
February 1, 2005.
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Custodians: U.S. Bank National Association and its respective successors.
Cut-off Date: February 1, 2005.
Depositor: Structured Asset Securities Corporation, or any successor in
interest.
Determination Date: With respect to each Remittance Date, the 15th day of
the month in which such Remittance Date occurs, or, if such 15th day is not a
Business Day, the next succeeding Business Day.
Due Date: The day of the month on which the Monthly Payment is due on a
Mortgage Loan, exclusive of any days of grace. With respect to the Mortgage
Loans for which payment from the Mortgagor is due on a day other than the first
day of the month, such Mortgage Loans will be treated as if the Monthly Payment
is due on the first day of the immediately succeeding month.
Due Period: With respect to each Remittance Date, the period commencing on
the second day of the month immediately preceding the month of the Remittance
Date and ending on the first day of the month of the Remittance Date.
Eligible Deposit Account: An account that is maintained with a federal or
state-chartered depository institution or trust company that complies with the
definition of Eligible Institution.
Eligible Institution: Any of the following:
(i) an institution whose:
(A) commercial paper, short-term debt obligations, or other
short-term deposits are rated at least "A-1+" or long-term unsecured debt
obligations are rated at least "AA-" by S&P, if the amounts on deposit are
to be held in the account for no more than 365 days; or
(B) commercial paper, short-term debt obligations, demand
deposits, or other short-term deposits are rated at least "A-2" by S&P, if
the amounts on deposit are to be held in the account for no more than 30
days and are not intended to be used as credit enhancement. Upon the loss
of the required rating set forth in this clause (ii), the accounts shall
be transferred immediately to accounts which have the required rating.
Furthermore, commingling by the Servicer is acceptable at the A-2 rating
level if the Servicer is a bank, thrift or depository and provided the
Servicer has the capability to immediately segregate funds and commence
remittance to an Eligible Deposit Account upon a downgrade;
(ii) the corporate trust department of a federal depository
institution or state-chartered depository institution subject to regulations
regarding fiduciary funds on deposit similar to Title 12 of the U.S. Code of
Federal Regulation Section 9.10(b), which, in either case, has corporate trust
powers and is acting in its fiduciary capacity; or
(iii) the Bank.
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Eligible Investments: Any one or more of the obligations and securities
listed below which investment provides for a date of maturity not later than the
Determination Date in each month:
(i) direct obligations of, and obligations fully guaranteed as to
timely payment of principal and interest by, the United States of America or any
agency or instrumentality of the United States of America the obligations of
which are backed by the full faith and credit of the United States of America
("Direct Obligations");
(ii) federal funds, or demand and time deposits in, certificates of
deposits of, or bankers' acceptances issued by, any depository institution or
trust company (including U.S. subsidiaries of foreign depositories, the Trustee
or any agent of the Trustee, acting in its respective commercial capacity)
incorporated or organized under the laws of the United States of America or any
state thereof and subject to supervision and examination by federal or state
banking authorities, so long as at the time of investment or the contractual
commitment providing for such investment the commercial paper or other
short-term debt obligations of such depository institution or trust company (or,
in the case of a depository institution or trust company which is the principal
subsidiary of a holding company, the commercial paper or other short-term debt
or deposit obligations of such holding company or deposit institution, as the
case may be) have been rated by each Rating Agency in its highest short-term
rating category or one of its two highest long-term rating categories;
(iii) repurchase agreements collateralized by Direct Obligations or
securities guaranteed by Xxxxxx Xxx, Xxxxxx Xxx or Xxxxxxx Mac with any
registered broker/dealer subject to Securities Investors' Protection Corporation
jurisdiction or any commercial bank insured by the FDIC, if such broker/dealer
or bank has an uninsured, unsecured and unguaranteed obligation rated by each
Rating Agency in its highest short-term rating category;
(iv) securities bearing interest or sold at a discount issued by any
corporation incorporated under the laws of the United States of America or any
state thereof which have a credit rating from each Rating Agency, at the time of
investment or the contractual commitment providing for such investment, at least
equal to one of the two highest long-term credit rating categories of each
Rating Agency; provided, however, that securities issued by any particular
corporation will not be Eligible Investments to the extent that investment
therein will cause the then outstanding principal amount of securities issued by
such corporation and held as part of the Trust Fund to exceed 20% of the sum of
the Aggregate Loan Balance and the aggregate principal amount of all Eligible
Investments in the Certificate Account; provided, further, that such securities
will not be Eligible Investments if they are published as being under review
with negative implications from any Rating Agency;
(v) commercial paper (including both non-interest-bearing discount
obligations and interest-bearing obligations payable on demand or on a specified
date not more than 180 days after the date of issuance thereof) rated by each
Rating Agency in its highest short-term rating category;
(vi) a Qualified GIC;
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(vii) certificates or receipts representing direct ownership
interests in future interest or principal payments on obligations of the United
States of America or its agencies or instrumentalities (which obligations are
backed by the full faith and credit of the United States of America) held by a
custodian in safekeeping on behalf of the holders of such receipts; and
(viii) any other demand, money market, common trust fund or time
deposit or obligation, or interest-bearing or other security or investment, (A)
rated in the highest rating category by each Rating Agency or (B) that would not
adversely affect the then current rating by any Rating Agency of any of the
Certificates. Such investments in this subsection (viii) may include money
market mutual funds or common trust funds, including any fund for which the
Trustee, the Master Servicer or an affiliate thereof serves as an investment
advisor, administrator, shareholder servicing agent, and/or custodian or
subcustodian, notwithstanding that (x) the Trustee, the Master Servicer or an
affiliate thereof charges and collects fees and expenses from such funds for
services rendered, (y) the Trustee, the Master Servicer or an affiliate thereof
charges and collects fees and expenses for services rendered pursuant to this
Agreement, and (z) services performed for such funds and pursuant to this
Agreement may converge at any time.
provided, however, that no such instrument shall be an Eligible Investment
if such instrument evidences either (i) a right to receive only interest
payments with respect to the obligations underlying such instrument, or (ii)
both principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations.
Errors and Omissions Insurance: Errors and Omissions Insurance to be
maintained by the Servicer in accordance with the Xxxxxx Mae Guides.
Escrow Account: The separate account or accounts created and maintained
pursuant to Section 3.05.
Escrow Payments: With respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance
premiums, condominium charges, and any other payments required to be escrowed by
the Mortgagor with the mortgagee pursuant to the Mortgage or any other related
document.
Event of Default: Any event set forth in Section 8.01.
Xxxxxx Xxx: Xxxxxx Xxx, or any successor thereto.
Xxxxxx Mae Guides: The Xxxxxx Xxx Selling Guide and the Xxxxxx Mae
Servicing Guide and all amendments or additions thereto.
FDIC: The Federal Deposit Insurance Corporation, or any successor thereto.
Fidelity Bond: A fidelity bond to be maintained by the Servicer in
accordance with the Xxxxxx Xxx Guides.
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Fitch: Fitch, Inc., or any successor in interest.
Xxxxxxx Mac: Xxxxxxx Mac, or any successor thereto.
Xxxxxx Mae: The Government National Mortgage Association, or any successor
thereto.
Insurance Proceeds: With respect to each Mortgage Loan, proceeds of
insurance policies insuring the Mortgage Loan or the related Mortgaged Property
including proceeds of any hazard or flood insurance policy, PMI Policy or LPMI
Policy.
Liquidation Proceeds: Cash received in connection with the liquidation of
a defaulted Mortgage Loan, whether through the sale or assignment of such
Mortgage Loan, trustee's sale, foreclosure sale or otherwise, or the sale of the
related REO Property, if the Mortgaged Property is acquired in satisfaction of
the Mortgage Loan.
LPMI Fee: With respect to each LPMI Loan, the portion of the Mortgage
Interest Rate as set forth on the related Mortgage Loan Schedule (which shall be
payable solely from the interest portion of Monthly Payments, Insurance
Proceeds, Condemnation Proceeds or Liquidation Proceeds), which, during such
period prior to the required cancellation of the LPMI Policy, shall be used to
pay the premium due on the related LPMI Policy.
LPMI Insurer: None.
LPMI Loan: A Mortgage Loan covered by an LPMI Policy, as set forth in the
Mortgage Loan Schedule or otherwise identified to the Servicer in writing.
LPMI Policy: A policy of primary mortgage guaranty insurance issued by a
LPMI Insurer pursuant to which the related premium is to be paid from payments
of interest made by the Mortgagor.
Master Servicer: Aurora Loan Services LLC, or any successor in interest,
or if any successor master servicer shall be appointed as provided in the Trust
Agreement, then such successor master servicer.
MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor in interest thereto.
MERS Eligible Mortgage Loan: Any Mortgage Loan that has been designated by
the Servicer as recordable in the name of MERS.
MERS Mortgage Loan: Any Mortgage Loan as to which the related Mortgage, or
an Assignment of Mortgage, has been or will be recorded in the name of MERS, as
agent for the holder from time to time of the Mortgage Note.
Monthly Advance: With respect to each Remittance Date and each Mortgage
Loan, an amount equal to the Monthly Payment (with the interest portion of such
Monthly Payment adjusted to the Mortgage Loan Remittance Rate) that was due on
the Mortgage Loan on the Due Date in the related Due Period, and that (i) was
delinquent at the close of business on the related
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Determination Date and (ii) was not the subject of a previous Monthly Advance,
but only to the extent that such amount is expected, in the reasonable judgment
of the Servicer, to be recoverable from collections or other recoveries in
respect of such Mortgage Loan. To the extent that the Servicer determines that
any such amount is not recoverable from collections or other recoveries in
respect of such Mortgage Loan, such determination shall be evidenced by a
certificate of a Servicing Officer delivered to the Master Servicer setting
forth such determination and the procedures and considerations of the Servicer
forming the basis of such determination.
Monthly Payment: The scheduled monthly payment of principal and interest
on a Mortgage Loan.
Moody's: Xxxxx'x Investors Service, Inc., or any successor in interest.
Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a first or second lien on an unsubordinated estate
in fee simple in real property securing the Mortgage Note.
Mortgage Interest Rate: The annual rate of interest borne on a Mortgage
Note, after giving effect to any applicable Relief Act Reduction.
Mortgage Loan: An individual Mortgage Loan that is the subject of this
Agreement, each Mortgage Loan subject to this Agreement being identified on the
Mortgage Loan Schedule, which Mortgage Loan includes without limitation the
Mortgage Loan documents, the Monthly Payments, Principal Prepayments,
Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO Disposition
Proceeds, and all other rights, benefits, proceeds and obligations arising from
or in connection with such Mortgage Loan.
Mortgage Loan Remittance Rate: With respect to each Mortgage Loan, the
annual rate of interest remitted to the Master Servicer, which shall be equal to
the Mortgage Interest Rate minus the applicable Servicing Fee.
Mortgage Loan Schedule: A schedule of the Mortgage Loans setting forth
information with respect to such Mortgage Loans (including any MERS
identification number (if available) with respect to each MERS Mortgage Loan or
MERS Eligible Mortgage Loan and a Prepayment Penalty Schedule), attached hereto
as Exhibit A, which may be amended from time to time to include additional
mortgage loans which are transferred to the Servicer by a Prior Servicer in a
Servicing Transfer.
Mortgage Note: The note or other evidence of the indebtedness of a
Mortgagor secured by a Mortgage.
Mortgaged Property: The real property securing repayment of the debt
evidenced by a Mortgage Note.
Mortgagor: The obligor on a Mortgage Note.
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Xxx-XXXX Eligible Mortgage Loan: Any Mortgage Loan other than a MERS
Eligible Mortgage Loan.
Non-MERS Mortgage Loan: Any Mortgage Loan other than a MERS Mortgage Loan.
Opinion of Counsel: A written opinion of counsel, who may be an employee
of the Servicer, reasonably acceptable to the Seller, the Master Servicer and
the Trustee, but which must be independent outside counsel with respect to any
such opinion of counsel concerning (i) the non-recordation of Mortgage Loans
pursuant to Section 2.02 hereof and (ii) federal income tax matters.
Person: Any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof.
PMI Policy: A policy of primary mortgage guaranty insurance issued by a
Qualified Insurer, as required by this Agreement with respect to certain
Mortgage Loans.
Prepayment Interest Excess Amount: With respect to any Principal
Prepayment in full which is applied to the related Mortgage Loan from the first
day of the month of any Remittance Date through the sixteenth day of the month
of such Remittance Date, all amounts paid in respect of interest on such
Principal Prepayment in full. A Prepayment Interest Excess Amount cannot result
from a Principal Prepayment in part, but only from a Principal Prepayment in
full.
Prepayment Interest Shortfall Amount: With respect to any Remittance Date
and any Principal Prepayment in full which is applied to the related Mortgage
Loan from the seventeenth day of the month immediately preceding the month of
such Remittance Date through the last day of the month immediately preceding the
month of such Remittance Date, the amount of interest (net the related Servicing
Fee) that would have accrued on the amount of such Principal Prepayment in full
from the date on which such Principal Prepayment was applied to such Mortgage
Loan until the last day of the month immediately preceding the month of such
Remittance Date, inclusive. With respect to any Remittance Date and any
Principal Prepayment in part (other than a Principal Prepayment in part received
on the first day of the month) which is applied to the related Mortgage Loan
during the related Prepayment Period, the amount of interest that would have
accrued on the amount of such Principal Prepayment in part from the date on
which such Principal Prepayment in part was applied to such Mortgage Loan until
the end of the Prepayment Period, inclusive.
Prepayment Penalty Amount: With respect to any Remittance Date, all
premiums or charges paid by the obligors under the Mortgage Notes due to
Principal Prepayments collected by the Servicer during the immediately preceding
Prepayment Period.
Prepayment Penalty Schedule: A data field in the Mortgage Loan Schedule
attached hereto as Exhibit A which sets forth the amount or method of
calculation of the Prepayment Penalty Amount and the term during which such
Prepayment Penalty Amount is imposed with respect to a Mortgage Loan.
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Prepayment Period: With respect to any Remittance Date and a Principal
Prepayment in full, the period from the seventeenth day of the month immediately
preceding the month of such Remittance Date to the sixteenth day of the month of
such Remittance Date. With respect to any Remittance Date and any Principal
Prepayment in part, the calendar month immediately preceding the month of such
Remittance Date.
Prime Rate: The prime rate published from time to time, as published as
the average rate in The Wall Street Journal Northeast Edition.
Principal Prepayment: Any payment or other recovery of principal on a
Mortgage Loan which is received in advance of its scheduled Due Date and which
is not accompanied by an amount of interest representing scheduled interest due
on any date or dates in any month or months subsequent to the month of
prepayment.
Prior Servicer: Any prior servicer (other than the Servicer) of any of the
Mortgage Loans.
Qualified GIC: A guaranteed investment contract or surety bond providing
for the investment of funds in the Custodial Account and insuring a minimum,
fixed or floating rate of return on investments of such funds, which contract or
surety bond shall:
(i) be an obligation of an insurance company or other corporation
whose long-term debt is rated by each Rating Agency in one of its two
highest rating categories or, if such insurance company has no long-term
debt, whose claims paying ability is rated by each Rating Agency in one of
its two highest rating categories, and whose short-term debt is rated by
each Rating Agency in its highest rating category;
(ii) provide that the Servicer may exercise all of the rights under
such contract or surety bond without the necessity of taking any action by any
other Person;
(iii) provide that the Trustee's interest therein shall be
transferable to any successor trustee hereunder; and
provide that the funds reinvested thereunder and accrued interest thereon
be returnable to the Custodial Account not later than the Business Day prior to
any Remittance Date.
Qualified Insurer: A mortgage guaranty insurance company duly authorized
and licensed where required by law to transact mortgage guaranty insurance
business and approved as an insurer by Xxxxxx Xxx or Xxxxxxx Mac.
Rating Agency: Each of Xxxxx'x and S&P.
Relief Act Reduction: With respect to any Mortgage Loan as to which there
has been a reduction in the amount of the interest collectible thereon as a
result of the application of the Servicemembers Civil Relief Act, as amended,
any amount by which interest collectible on such Mortgage Loan for the Due Date
in the related Due Period is less than the interest accrued thereon for the
applicable one month period at the Mortgage Interest Rate without giving effect
to such reduction.
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REMIC: A "real estate mortgage investment conduit" within the meaning of
Section 860D of the Code.
Remittance Date: The 18th day (or if such 18th day is not a Business Day,
the first Business Day immediately following) of any month.
REO Disposition: The final sale by the Servicer of any REO Property.
REO Disposition Proceeds: All amounts received with respect to an REO
Disposition pursuant to Section 3.16.
REO Property: A Mortgaged Property acquired by the Servicer on behalf of
the Trustee through foreclosure or by deed in lieu of foreclosure, pursuant to
Section 3.16.
Retained Interest: The meaning set forth in the Trust Agreement.
Retained Interest Holder: The meaning set forth in the Trust Agreement.
Servicer: Aurora Loan Services LLC or its successor in interest or assigns
or any successor to the Servicer under this Agreement as herein provided.
Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses (including reasonable attorneys' fees and
disbursements) incurred in the performance by the Servicer of its servicing
obligations, including, but not limited to, the cost of (i) the preservation,
inspection, restoration and protection of the Mortgaged Property, (ii) any
enforcement or administrative or judicial proceedings, including foreclosures,
(iii) the management and liquidation of the Mortgaged Property if the Mortgaged
Property is acquired in satisfaction of the Mortgage, (iv) taxes, assessments,
water rates, sewer rents and other charges which are or may become a lien upon
the Mortgaged Property, and PMI Policy premiums and fire and hazard insurance
coverage, (v) any losses sustained by the Servicer with respect to the
liquidation of the Mortgaged Property and (vi) compliance with the obligations
pursuant to the provisions of the Xxxxxx Xxx Guides.
Servicing Fee: An amount equal to (a) one-twelfth the product of (i) a
rate per annum equal to 0.250% and (ii) the outstanding principal balance of
such Mortgage Loan and (b) any Prepayment Interest Excess Amount. The obligation
of the Trustee to pay the Servicing Fee is limited to, and the Servicing Fee is
payable solely from the interest portion (including recoveries with respect to
interest from Liquidation Proceeds to the extent permitted by this Agreement) of
such Monthly Payment collected by the Servicer or as otherwise provided under
this Agreement.
Servicing File: The items pertaining to a particular Mortgage Loan
including, but not limited to, the computer files, data disks, books, records,
data tapes, notes, and all additional documents generated as a result of or
utilized in originating and/or servicing each Mortgage Loan, which are held in
trust for the Trustee by the Servicer.
Servicing Officer: Any officer of the Servicer involved in or responsible
for, the administration and servicing of the Mortgage Loans whose name appears
on a list of servicing
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officers furnished by the Servicer to the Master Servicer or the Seller upon
request, as such list may from time to time be amended.
Servicing Transfer: Any transfer of the servicing by a Prior Servicer of
Mortgage Loans to the Servicer under this Agreement.
Servicing Transfer Date: The date on which a Servicing Transfer occurs.
S&P: Standard and Poor's, a division of The XxXxxx-Xxxx Companies, Inc.,
or any successor in interest.
Trust Agreement: The Trust Agreement dated as of February 1, 2005, among
the Trustee, the Master Servicer and the Depositor.
Trustee: HSBC Bank USA, National Association, or any successor in
interest, or if any successor trustee or co-trustee shall be appointed as
provided in the Trust Agreement, then such successor trustee or such co-trustee,
as the case may be.
Trust Fund: The trust fund established by the Trust Agreement, the assets
of which consist of the Mortgage Loans and any related assets.
Any capitalized terms used and not defined in this Agreement shall have
the meanings ascribed to such terms in the Trust Agreement.
ARTICLE II.
SELLER'S ENGAGEMENT OF SERVICER TO PERFORM SERVICING
RESPONSIBILITIES
Section 2.01 Contract for Servicing; Possession of Servicing Files.
The Seller, by execution and delivery of this Agreement, does hereby
contract with the Servicer, subject to the terms of this Agreement, for the
servicing of the Mortgage Loans. On or before the Closing Date or Servicing
Transfer Date, as applicable, the Seller shall cause to be delivered the
Servicing Files with respect to the Mortgage Loans listed on the Mortgage Loan
Schedule to the Servicer. Each Servicing File delivered to a Servicer shall be
held in trust by such Servicer for the benefit of the Trustee; provided,
however, that the Servicer shall have no liability for any Servicing Files (or
portions thereof) not delivered by the Seller. The Servicer's possession of any
portion of the Mortgage Loan documents shall be at the will of the Trustee for
the sole purpose of facilitating servicing of the related Mortgage Loan pursuant
to this Agreement, and such retention and possession by the Servicer shall be in
a custodial capacity only. The ownership of each Mortgage Note, Mortgage, and
the contents of the Servicing File shall be vested in the Trustee and the
ownership of all records and documents with respect to the related Mortgage Loan
prepared by or which come into the possession of the Servicer shall immediately
vest in the Trustee and shall be retained and maintained, in trust, by the
Servicer at the will of the Trustee in such custodial capacity only. The portion
of each Servicing File retained by the Servicer pursuant to this Agreement shall
be segregated from the other books and records of the Servicer and shall be
appropriately marked to clearly reflect the ownership of the
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related Mortgage Loan by the Trustee. The Servicer shall release from its
custody the contents of any Servicing File retained by it only in accordance
with this Agreement.
Section 2.02 Books and Records.
(a) Subject to Section 3.01(a) hereof, as soon as practicable after the
Closing Date, the Servicing Transfer Date or the date on which a Qualifying
Substitute Mortgage Loan is delivered pursuant to Section 2.05 of the Trust
Agreement, as applicable (but in no event more than 90 days thereafter except to
the extent delays are caused by the applicable recording office), the Servicer,
at the expense of the Depositor, shall cause the Mortgage or Assignment of
Mortgage, as applicable, with respect to each MERS Eligible Mortgage Loan, to be
properly recorded in the name of MERS in the public recording office in the
applicable jurisdiction, or shall ascertain that such have previously been so
recorded and, with the cooperation of the Trustee, shall take such actions as
are necessary to cause the Trustee to be clearly identified as the owner of each
MERS Mortgage Loan and each MERS Eligible Mortgage Loan on the records of MERS
for purposes of the system of recording transfers of beneficial ownership of
mortgages maintained by MERS.
(b) Subject to Section 3.01(a) hereof, an Assignment of Mortgage in favor
of the Trustee shall be recorded as to each Non-MERS Mortgage Loan unless
instructions to the contrary are delivered to the Servicer, in writing, by the
Depositor. Subject to the preceding sentence, as soon as practicable after the
Closing Date or Servicing Transfer Date, as applicable (but in no event more
than 90 days thereafter except to the extent delays are caused by the applicable
recording office), the Servicer, at the expense of the Depositor, shall cause to
be properly recorded in each public recording office where such Non-MERS
Eligible Mortgage Loans are recorded each Assignment of Mortgage.
(c) Additionally, the Servicer shall prepare and execute, at the direction
of the Trustee, any note endorsements relating to any of the Non-MERS Mortgage
Loans.
(d) All rights arising out of the Mortgage Loans shall be vested in the
Trustee, subject to the Servicer's right to service and administer the Mortgage
Loans hereunder in accordance with the terms of this Agreement. All funds
received on or in connection with a Mortgage Loan, other than the Servicing Fee
and other compensation to which the Servicer is entitled as set forth herein,
including but not limited to any and all servicing compensation pursuant to
Section 5.01 below, shall be received and held by the Servicer in trust for the
benefit of the Trustee pursuant to the terms of this Agreement.
(e) Any out-of-pocket costs incurred by the Servicer pursuant to this
Section 2.02 and Section 3.01(a), including any recording or other fees in
connection with the Servicer's obtaining the necessary powers of attorney (and
which are specified herein to be an expense of the Seller), shall be reimbursed
to the Servicer by the Seller within five (5) Business Days of receipt by the
Seller of an invoice for reimbursement. The Trust Fund shall not reimburse the
Seller for any such reimbursement to the Servicer.
(f) The Master Servicer and the Trustee shall have the right to examine
the books, records and other information of the Servicer, with respect to or
concerning this Agreement or
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the Mortgage Loans, during business hours or at such other times as may be
reasonable under applicable circumstances, upon reasonable advance written
notice to the Servicer.
ARTICLE III.
SERVICING OF THE MORTGAGE LOANS
Section 3.01 Servicer to Service.
The Servicer, as an independent contractor, shall service and administer
the Mortgage Loans from and after the Closing Date or Servicing Transfer Date,
as applicable, and shall have full power and authority, acting alone, to do any
and all things in connection with such servicing and administration which the
Servicer may deem necessary or desirable, consistent with the terms of this
Agreement and with Accepted Servicing Practices.
The Seller and the Servicer additionally agree as follows:
(a) The Servicer shall (i) record or cause to be recorded the Mortgage or
the Assignment of Mortgage, as applicable, with respect to all MERS Eligible
Mortgage Loans, in the name of MERS, or shall ascertain that such have
previously been so recorded; (ii) with the cooperation of the Trustee, take such
actions as are necessary to cause the Trustee to be clearly identified as the
owner of each MERS Mortgage Loan and each MERS Eligible Mortgage Loan on the
records of MERS for purposes of the system of recording transfers of beneficial
ownership of mortgages maintained by MERS; (iii) prepare or cause to be prepared
all Assignments of Mortgage with respect to all Non-MERS Eligible Mortgage
Loans; (iv) record or cause to be recorded, subject to Section 2.02(b) hereof,
all Assignments of Mortgage with respect to Non-MERS Mortgage Loans in the name
of the Trustee; (v) pay the recording costs pursuant to Section 2.02 hereof;
and/or (vi) track such Mortgages and Assignments of Mortgage to ensure they have
been recorded. The Servicer shall be entitled to be paid by the Seller fees for
the preparation and recordation of the Mortgages and Assignments of Mortgage.
After the expenses of such recording costs pursuant to Section 2.02 hereof shall
have been paid by the Servicer, the Servicer shall submit to the Seller a
reasonably detailed invoice for reimbursement of recording costs and fees it
incurred hereunder.
(b) If applicable, the Servicer shall, in accordance with the relevant
provisions of the Xxxxxxxx-Xxxxxxxx National Affordable Housing Act of 1990, as
the same may be amended from time to time, and the regulations provided in
accordance with the Real Estate Settlement Procedures Act, provide notice to the
Mortgagor of each Mortgage Loan of the transfer of the servicing thereto to the
Servicer.
(c) The Servicer shall be responsible for the preparation of and costs
associated with notifications to Mortgagors of the assumption of servicing by
the Servicer.
Consistent with the terms of this Agreement and except as provided in
Section 3.19, the Servicer may waive any late payment charge, assumption fee or
other fee that may be collected in the ordinary course of servicing the Mortgage
Loans. The Servicer shall not make any future advances to any obligor under any
Mortgage Loan, and (unless the Mortgagor is in default with respect to the
Mortgage Loan or such default is, in the judgment of the Servicer, reasonably
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foreseeable) the Servicer shall not permit any modification of any material term
of any Mortgage Loan, including any modification that would change the Mortgage
Interest Rate, defer or forgive the payment of principal or interest, reduce or
increase the outstanding principal balance (except for actual payments of
principal) or change the final maturity date on such Mortgage Loan. In the event
of any such modification which permits the deferral of interest or principal
payments on any Mortgage Loan, the Servicer shall, on the Business Day
immediately preceding the Remittance Date in any month in which any such
principal or interest payment has been deferred, make a Monthly Advance in
accordance with Section 4.03, in an amount equal to the difference between (i)
such month's principal and one month's interest at the Mortgage Loan Remittance
Rate on the unpaid principal balance of such Mortgage Loan and (ii) the amount
paid by the Mortgagor. The Servicer shall be entitled to reimbursement for such
advances to the same extent as for all other advances made pursuant to Section
4.03. Without limiting the generality of the foregoing, the Servicer shall
continue, and is hereby authorized and empowered, to execute and deliver on
behalf of itself and the Trustee, all instruments of satisfaction or
cancellation, or of partial or full release, discharge and all other comparable
instruments, with respect to the Mortgage Loans and with respect to the
Mortgaged Properties. Upon the request of the Servicer, the Trustee shall
execute and deliver to the Servicer any powers of attorney and other documents,
furnished to it by the Servicer and reasonably satisfactory to the Trustee,
necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties under this Agreement. Notwithstanding anything contained
herein to the contrary, the Servicer shall not, without the Trustee's written
consent: (i) initiate any action, suit or proceeding solely under the Trustee's
name without indicating the Servicer's representative capacity; or (ii) take any
action with the intent to cause, and that actually causes the Trustee to be
registered to do business in any state. Promptly after the execution of any
assumption, modification, consolidation or extension of any Mortgage Loan, the
Servicer shall forward to the Master Servicer copies of any documents evidencing
such assumption, modification, consolidation or extension. Notwithstanding
anything to the contrary contained in this Servicing Agreement, the Servicer
shall not make or permit any modification, waiver or amendment of any term of
any Mortgage Loan that would cause any REMIC created under the Trust Agreement
to fail to qualify as a REMIC or result in the imposition of any tax under
Section 860F(a) or Section 860G(d) of the Code.
Notwithstanding anything to the contrary in this Agreement, the Servicer
shall not (unless the Servicer determines, in its own discretion, that there
exists a situation of extreme hardship to the Mortgagor), waive any premium or
penalty in connection with a prepayment of principal of any Mortgage Loan, and
shall not consent to the modification of any Mortgage Note to the extent that
such modification relates to payment of a prepayment premium or penalty.
In servicing and administering the Mortgage Loans, the Servicer shall
employ procedures (including collection procedures) and exercise the same care
that it customarily employs and exercises in servicing and administering
mortgage loans for its own account, giving due consideration to Accepted
Servicing Practices where such practices do not conflict with the requirements
of this Agreement, the Xxxxxx Xxx Guides, and the Master Servicer's and Seller's
reliance on the Servicer.
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Section 3.02 Collection of Mortgage Loan Payments.
Continuously from the Closing Date or Servicing Transfer Date, as
applicable, until the date each Mortgage Loan ceases to be subject to this
Agreement, the Servicer shall proceed diligently to collect all payments due
under each of the Mortgage Loans when the same shall become due and payable and
shall take special care in ascertaining and estimating Escrow Payments and all
other charges that will become due and payable with respect to the Mortgage
Loans and each related Mortgaged Property, to the end that the installments
payable by the Mortgagors will be sufficient to pay such charges as and when
they become due and payable.
Section 3.03 Establishment of and Deposits to Custodial Account.
The Servicer shall segregate and hold all funds collected and received
pursuant to the Mortgage Loans separate and apart from any of its own funds and
general assets and shall establish and maintain one or more Custodial Accounts,
in the form of time deposit or demand accounts, titled as directed by the Master
Servicer. The Custodial Account shall be an Eligible Deposit Account established
with an Eligible Institution. Any funds deposited in the Custodial Account may
be invested in Eligible Investments subject to the provisions of Section 3.11
hereof. Funds deposited in the Custodial Account may be drawn on by the Servicer
in accordance with Section 3.04. The creation of any Custodial Account shall be
evidenced by a letter agreement in the form of Exhibit B. A copy of such
certification or letter agreement shall be furnished to the Master Servicer not
later than 30 calendar days after the Closing Date, and, upon request, to any
subsequent owner of the Mortgage Loans.
The Servicer shall deposit in the Custodial Account on a daily basis, and
retain therein, the following collections received by the Servicer and payments
made by the Servicer after the Cut-off Date (other than scheduled payments of
principal and interest due on or before the Cut-off Date or received by the
Servicer prior to the Cut-off Date but allocable to the period subsequent
thereto or Servicing Transfer Date), as applicable:
(i) all payments on account of principal on the Mortgage Loans,
including all Principal Prepayments;
(ii) all payments on account of interest on the Mortgage Loans
adjusted to the Mortgage Loan Remittance Rate;
(iii) all Liquidation Proceeds;
(iv) all Insurance Proceeds (other than amounts applied to the
restoration or repair of the Mortgaged Property or immediately released to the
Mortgagor in accordance with Accepted Servicing Practices);
(v) all Condemnation Proceeds that are not applied to the
restoration or repair of the Mortgaged Property or released to the Mortgagor;
(vi) with respect to each Principal Prepayment in full or in part,
the Prepayment Interest Shortfall Amount, if any, for the month of distribution.
Such deposit shall be made from the Servicer's own funds, without reimbursement
therefor up to a maximum
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amount per month of the Servicing Fee actually received for such month for the
Mortgage Loans;
(vii) all Monthly Advances made by the Servicer pursuant to Section
4.03;
(viii) any amounts required to be deposited by the Servicer in
connection with the deductible clause in any blanket hazard insurance policy;
(ix) any amounts received with respect to or related to any REO
Property or REO Disposition Proceeds;
(x) any Prepayment Penalty Amount; and
(xi) any other amount required hereunder to be deposited by the
Servicer in the Custodial Account.
The foregoing requirements for deposit into the Custodial Account shall be
exclusive, it being understood and agreed that, without limiting the generality
of the foregoing, payments in the nature of the Servicing Fee and Ancillary
Income need not be deposited by the Servicer into the Custodial Account.
Any interest paid on funds deposited in the Custodial Account by the
depository institution shall accrue to the benefit of the Servicer and the
Servicer shall be entitled to retain and withdraw such interest from the
Custodial Account pursuant to Section 3.04. Additionally, any other benefit
derived from the Custodial Account associated with the receipt, disbursement and
accumulation of principal, interest, taxes, hazard insurance, mortgage
insurance, etc. shall accrue to the Servicer.
Section 3.04 Permitted Withdrawals From Custodial Account.
The Servicer shall, from time to time, withdraw funds from the Custodial
Account for the following purposes:
(i) to make payments to the Master Servicer in the amounts and in
the manner provided for in Section 4.01;
(ii) with respect to each LPMI Loan, in the amount of the related
LPMI Fee, to make payments with respect to premiums for LPMI Policies in
accordance with Section 3.07;
(iii) in the event the Servicer has elected not to retain the
Servicing Fee out of any Mortgagor payments on account of interest or other
recovery of interest with respect to a particular Mortgage Loan (including late
collections of interest on such Mortgage Loan, or interest portions of Insurance
Proceeds, Condemnation Proceeds or Liquidation Proceeds) prior to the deposit of
such Mortgagor payment or recovery in the Custodial Account, to pay to itself
the related Servicing Fee from all such Mortgagor payments on account of
interest or other such recovery for interest with respect to that Mortgage Loan;
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(iv) to pay itself investment earnings on funds deposited in the
Custodial Account;
(v) to clear and terminate the Custodial Account upon the
termination of this Agreement;
(vi) to transfer funds to another Eligible Institution in accordance
with Section 3.11 hereof;
(vii) to invest funds in certain Eligible Investments in accordance
with Section 3.11 hereof;
(viii) to reimburse itself to the extent of funds in the Custodial
Account for Monthly Advances of the Servicer's funds made pursuant to Section
4.03, the Servicer's right to reimburse itself pursuant to this subclause (viii)
with respect to any Mortgage Loan being limited to amounts received on or in
respect of the related Mortgage Loan which represent late recoveries of payments
of principal or interest with respect to which a Monthly Advance was made, it
being understood that, in the case of any such reimbursement, the Servicer's
right thereto shall be prior to the rights of the Trust Fund, provided, however,
that following the final liquidation of a Mortgage Loan, the Servicer may
reimburse itself for previously unreimbursed Monthly Advances in excess of
Liquidation Proceeds or Insurance Proceeds with respect to such Mortgage Loan
from any funds in the Custodial Account, it being understood, in the case of any
such reimbursement, that the Servicer's right thereto shall be prior to the
rights of the Trust Fund. The Servicer may recover at any time from amounts on
deposit in the Custodial Account the amount of any Monthly Advances that the
Servicer deems nonrecoverable or that remain unreimbursed to the Servicer from
related Liquidation Proceeds after the final liquidation of the Mortgage Loan;
(ix) to reimburse itself for unreimbursed Servicing Advances, and
for any unpaid Servicing Fees, the Servicer's right to reimburse itself pursuant
to this subclause (ix) with respect to any Mortgage Loan being limited to
related Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO
Disposition Proceeds and other amounts received in respect of the related REO
Property, and such other amounts as may be collected by the Servicer from the
Mortgagor or otherwise relating to the Mortgage Loan, it being understood that,
in the case of any such reimbursement, the Servicer's right thereto shall be
prior to the rights of the Trust Fund;
(x) to reimburse itself for remaining unreimbursed Servicing
Advances with respect to any defaulted Mortgage Loan as to which the Servicer
has determined that all amounts that it expects to recover on behalf of the
Trust Fund from or on account of such Mortgage Loan have been recovered;
(xi) to reimburse itself for expenses incurred or reimbursable to
the Servicer pursuant to Sections 3.07, 3.12, 3.13, 3.14 and 6.03 to the extent
not previously reimbursed under clause (ix) of this Section 3.04; and
(xii) to withdraw funds deposited in error.
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Section 3.05 Establishment of and Deposits to Escrow Account.
The Servicer shall segregate and hold all funds collected and received
pursuant to a Mortgage Loan constituting Escrow Payments separate and apart from
any of its own funds and general assets and shall establish and maintain one or
more Escrow Accounts, in the form of time deposit or demand accounts, titled as
directed by the Master Servicer. Each Escrow Account shall be an Eligible
Deposit Account established with an Eligible Institution in a manner that shall
provide maximum available insurance thereunder. Funds deposited in the Escrow
Account may be drawn on by the Servicer in accordance with Section 3.06. The
creation of any Escrow Account shall be evidenced by a letter agreement in the
form of Exhibit C. A copy of such certification or letter agreement shall be
furnished to the Master Servicer not later than 30 calendar days after the
Closing Date, and, upon request, to any subsequent owner of the Mortgage Loans.
The Servicer shall deposit in the Escrow Account or Accounts on a daily
basis, and retain therein:
(i) all Escrow Payments collected on account of the Mortgage Loans,
for the purpose of effecting timely payment of any such items as required under
the terms of this Agreement; and
(ii) all amounts representing Insurance Proceeds or Condemnation
Proceeds that are to be applied to the restoration or repair of any Mortgaged
Property.
The Servicer shall make withdrawals from the Escrow Account only to effect
such payments as are required under this Agreement, as set forth in Section
3.06. The Servicer shall retain any interest paid on funds deposited in the
Escrow Account by the depository institution, other than interest on escrowed
funds required by law to be paid to the Mortgagor. Additionally, any other
benefit derived from the Escrow Account associated with the receipt,
disbursement and accumulation of principal, interest, taxes, hazard insurance,
mortgage insurance, etc. shall accrue to the Servicer. To the extent required by
law, the Servicer shall pay interest on escrowed funds to the Mortgagor
notwithstanding that the Escrow Account may be non-interest bearing or that
interest paid thereon is insufficient for such purposes.
Section 3.06 Permitted Withdrawals From Escrow Account.
Withdrawals from the Escrow Account or Accounts may be made by the
Servicer only:
(i) to effect timely payments of ground rents, taxes, assessments,
water rates, sewer rents, mortgage insurance premiums, condominium charges, fire
and hazard insurance premiums or other items constituting Escrow Payments for
the related Mortgage;
(ii) to refund to any Mortgagor any funds found to be in excess of
the amounts required under the terms of the related Mortgage Loan;
(iii) for transfer to the Custodial Account and application to
reduce the principal balance of the Mortgage Loan in accordance with the terms
of the related Mortgage and Mortgage Note;
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(iv) to reimburse the Servicer for any Servicing Advance made by the
Servicer with respect to a related Mortgage Loan, but only from amounts received
on the related Mortgage Loan which represent late collections of Escrow
Payments.
(v) for application to restoration or repair of the Mortgaged
Property in accordance with the Xxxxxx Xxx Guides;
(vi) to pay to the Servicer, or any Mortgagor to the extent required
by law, any interest paid on the funds deposited in the Escrow Account
(vii) to remove funds inadvertently placed in the Escrow Account by
the Servicer; and
(viii) to clear and terminate the Escrow Account on the termination
of this Agreement.
Section 3.07 Maintenance of PMI Policy and/or LPMI Policy; Claims.
The Servicer shall comply with all provisions of applicable state and
federal law relating to the cancellation of, or collection of premiums with
respect to, PMI Policies, including, but not limited to, the provisions of the
Homeowners Protection Act of 1998, and all regulations promulgated thereunder,
as amended from time to time.
With respect to each Mortgage Loan (other than LPMI Loans) with a loan to
value ratio at origination in excess of 80%, the Servicer shall maintain or
cause the Mortgagor to maintain (to the extent that the Mortgage Loan requires
the Mortgagor to maintain such insurance) in full force and effect a PMI Policy,
and shall pay or shall cause the Mortgagor to pay the premium thereon on a
timely basis, until the LTV of such Mortgage Loan is reduced to 80%. In the
event that such PMI Policy shall be terminated, the Servicer shall obtain from
another Qualified Insurer a comparable replacement policy, with a total coverage
equal to the remaining coverage of such terminated PMI Policy, at substantially
the same fee level. The Servicer shall not take any action which would result in
noncoverage under any applicable PMI Policy of any loss which, but for the
actions of the Servicer would have been covered thereunder. In connection with
any assumption or substitution agreements entered into or to be entered into
with respect to a Mortgage Loan, the Servicer shall promptly notify the insurer
under the related PMI Policy, if any, of such assumption or substitution of
liability in accordance with the terms of such PMI Policy and shall take all
actions which may be required by such insurer as a condition to the continuation
of coverage under such PMI Policy. If such PMI Policy is terminated as a result
of such assumption or substitution of liability, the Servicer shall obtain a
replacement PMI Policy as provided above.
The Servicer shall take all such actions as are necessary to service,
maintain and administer the LPMI Loans in accordance with the LPMI Policy and to
perform and enforce the rights of the insured under such LPMI Policy. Except as
expressly set forth herein, the Servicer shall have full authority on behalf of
the Trust Fund to do anything it reasonably deems appropriate or desirable in
connection with the servicing, maintenance and administration of the LPMI
Policy. The Servicer shall not modify or assume a Mortgage Loan covered by the
LPMI Policy or take any other action with respect to such Mortgage Loan which
would result in non-
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coverage under the LPMI Policy of any loss which, but for the actions of the
Servicer, would have been covered thereunder. If the LPMI Insurer fails to pay a
claim under the LPMI Policy as a result of breach by the Servicer of its
obligations hereunder or under the LPMI Policy, the Servicer shall be required
to deposit in the Custodial Account on or prior to the next succeeding
Remittance Date an amount equal to such unpaid claim from its own funds without
any right to reimbursement from the Trust Fund. The Servicer shall cooperate
with the LPMI Insurer and the Master Servicer and shall use its best efforts to
furnish all reasonable aid, evidence and information in the possession of the
Servicer to which the Servicer has access with respect to any LPMI Loan;
provided, however, notwithstanding anything to the contrary contained in any
LPMI Policy, the Servicer shall not be required to submit any reports to the
LPMI Insurer until a reporting date that is at least 15 days after the Servicer
has received sufficient loan level information from each Seller, the Master
Servicer or the LPMI Insurer to appropriately code its servicing system in
accordance with the LPMI Insurer's requirements.
In connection with its activities as servicer, the Servicer agrees to
prepare and present, on behalf of itself and the Trustee, claims to the insurer
under any PMI Policy or LPMI Policy in a timely fashion in accordance with the
terms of such PMI Policy or LPMI Policy and, in this regard, to take such action
as shall be necessary to permit recovery under any PMI Policy or LPMI Policy
respecting a defaulted Mortgage Loan. Any amounts collected by the Servicer
under any PMI Policy or LPMI Policy shall be deposited in the Custodial Account,
subject to withdrawal pursuant to Section 3.04.
Section 3.08 Fidelity Bond and Errors and Omissions Insurance.
The Servicer shall keep in force during the term of this Agreement a
Fidelity Bond and Errors and Omissions Insurance Policy. Such Fidelity Bond and
Errors and Omissions Insurance shall be maintained with recognized insurers and
shall be in such form and amount as would permit the Servicer to be qualified as
a Xxxxxx Mae or Xxxxxxx Mac seller-servicer. The Servicer shall be deemed to
have complied with this provision if an affiliate of the Servicer has such
errors and omissions and fidelity bond coverage and, by the terms of such
insurance policy or fidelity bond, the coverage afforded thereunder extends to
the Servicer. The Servicer shall furnish to the Master Servicer a copy of each
such bond and insurance policy if (i) the Master Servicer so requests and (ii)
the Servicer is not an affiliate of Xxxxxx Brothers Inc. at the time of such
request.
Section 3.09 Notification of Adjustments.
With respect to each Adjustable Rate Mortgage Loan, the Servicer shall
adjust the Mortgage Interest Rate on the related interest rate adjustment date
and shall adjust the Monthly Payment on the related mortgage payment adjustment
date, if applicable, in compliance with the requirements of applicable law and
the related Mortgage and Mortgage Note. The Servicer shall execute and deliver
any and all necessary notices required under applicable law and the terms of the
related Mortgage Note and Mortgage regarding the Mortgage Interest Rate and
Monthly Payment adjustments. The Servicer shall promptly, upon written request
therefor, deliver to the Master Servicer such notifications and any additional
applicable data regarding such adjustments and the methods used to calculate and
implement such adjustments. Upon the discovery by the Servicer or the receipt of
notice from the Master Servicer that the Servicer has failed to adjust a
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Mortgage Interest Rate or Monthly Payment in accordance with the terms of the
related Mortgage Note, the Servicer shall immediately deposit in the Custodial
Account from its own funds the amount of any interest loss or deferral caused
thereby.
Section 3.10 Completion and Recordation of Assignments of Mortgage.
As soon as practicable after the Closing Date, the Servicing Transfer Date
or the date on which a Qualifying Substitute Mortgage Loan is delivered pursuant
to Section 2.05 of the Trust Agreement, as applicable (but in no event more than
90 days thereafter except to the extent delays are caused by the applicable
public recording office), the Servicer shall cause the endorsements on the
Mortgage Note (if applicable), and the Assignments of Mortgage (subject to
Section 3.01(a)) to be completed in the name of the Trustee (or MERS, as
applicable).
Section 3.11 Protection of Accounts.
The Servicer may transfer any Custodial Account or any Escrow Account to a
different Eligible Institution from time to time; provided that in the event the
Custodial Account or any Escrow Account is held in a depository institution or
trust company that ceases to be an Eligible Institution, the Servicer shall
transfer such Custodial Account or Escrow Account, as the case may be, to an
Eligible Institution. The Servicer shall give notice to the Master Servicer of
any change in the location of the Custodial Account.
The Servicer shall bear any expenses, losses or damages sustained by the
Master Servicer or the Trustee if the Custodial Account and/or the Escrow
Account are not demand deposit accounts.
Amounts on deposit in the Custodial Account and the Escrow Account may at
the option of the Servicer be invested in Eligible Investments. Any such
Eligible Investment shall mature no later than the Business Day immediately
preceding the related Remittance Date; provided, however, that if such Eligible
Investment is an obligation of an Eligible Institution (other than the Servicer)
that maintains the Custodial Account or the Escrow Account, then such Eligible
Investment may mature on the related Remittance Date. Any such Eligible
Investment shall be made in the name of the Servicer in trust for the benefit of
the Trustee. All income on or gain realized from any such Eligible Investment
shall be for the benefit of the Servicer and may be withdrawn at any time by the
Servicer. Any losses incurred in respect of any such investment shall be
deposited in the Custodial Account or the Escrow Account, by the Servicer out of
its own funds immediately as realized.
Section 3.12 Payment of Taxes, Insurance and Other Charges.
With respect to each Mortgage Loan, the Servicer shall maintain accurate
records reflecting the status of ground rents, taxes, assessments, water rates,
sewer rents, and other charges which are or may become a lien upon the Mortgaged
Property and the status of PMI Policy and LPMI Policy (if any) premiums and fire
and hazard insurance coverage and shall obtain, from time to time, all bills for
the payment of such charges (including renewal premiums) and shall effect
payment thereof prior to the applicable penalty or termination date, employing
for such purpose deposits of the Mortgagor in the Escrow Account which shall
have been estimated and accumulated by the Servicer in amounts sufficient for
such purposes, as allowed
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under the terms of the Mortgage. The Servicer shall not be required to maintain
records with respect to the payment of LPMI Premiums unless the Servicer shall
be required to make payment of such premiums and such requirement shall be
indicated on the Mortgage Loan Schedule with respect to each applicable Mortgage
Loan. The Servicer assumes full responsibility for the timely payment of all
such bills, shall effect timely payment of all such charges irrespective of each
Mortgagor's faithful performance in the payment of same or the making of the
Escrow Payments, and shall make advances from its own funds to effect such
payments. With regard to any Mortgage Loans for which the Mortgagor is not
required to escrow Escrow Payments with the Servicer, the Servicer shall use
reasonable efforts consistent with Accepted Servicing Practices to determine
that any such payments are made by the Mortgagor at the time they first became
due and shall insure that the Mortgaged Property is not lost to a tax lien as a
result of nonpayment and that such Mortgage is not left uninsured and shall make
advances from its own funds to effect any such delinquent payments to avoid the
lapse of insurance coverage on the Mortgaged Property or to avoid the imposition
of a tax lien.
Section 3.13 Maintenance of Hazard Insurance.
The Servicer shall cause to be maintained for each Mortgage Loan hazard
insurance such that all buildings upon the Mortgaged Property are insured by a
generally acceptable insurer against loss by fire, hazards of extended coverage
and such other hazards as are customary in the area where the Mortgaged Property
is located, in an amount which is at least equal to the greater of (i) the then
outstanding principal balance of the Mortgage Loan and (ii) an amount such that
the proceeds thereof shall be sufficient to prevent the Mortgagor or the loss
payee from becoming a co-insurer.
If upon origination of the Mortgage Loan, the related Mortgaged Property
was located in an area identified in the Federal Register by the Flood Emergency
Management Agency as having special flood hazards (and such flood insurance has
been made available) a flood insurance policy meeting the requirements of the
current guidelines of the Federal Insurance Administration is in effect with a
generally acceptable insurance carrier in an amount representing coverage equal
to the lesser of (i) the minimum amount required, under the terms of coverage,
to compensate for any damage or loss on a replacement cost basis (or the unpaid
balance of the mortgage if replacement cost coverage is not available for the
type of building insured) and (ii) the maximum amount of insurance which is
available under the Flood Disaster Protection Act of 1973, as amended. If at any
time during the term of the Mortgage Loan, the Servicer determines in accordance
with applicable law and pursuant to the Xxxxxx Xxx Guides that a Mortgaged
Property is located in a special flood hazard area and is not covered by flood
insurance or is covered in an amount less than the amount required by the Flood
Disaster Protection Act of 1973, as amended, the Servicer shall notify the
related Mortgagor that the Mortgagor must obtain such flood insurance coverage,
and if said Mortgagor fails to obtain the required flood insurance coverage
within forty-five (45) days after such notification, the Servicer shall force
place the required flood insurance on the Mortgagor's behalf.
Section 3.14 Maintenance of Mortgage Blanket Insurance.
The Servicer shall obtain and maintain a blanket policy insuring against
losses arising from fire and hazards covered under extended coverage on all of
the Mortgage Loans. To the
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extent such policy provides coverage in an amount equal to the amount required
pursuant to Section 3.13 and otherwise complies with all other requirements of
Section 3.13, it shall conclusively be deemed to have satisfied its obligations
as set forth in Section 3.13. Any amounts collected by the Servicer under any
such policy relating to a Mortgage Loan shall be deposited in the Custodial
Account or Escrow Account subject to withdrawal pursuant to Sections 3.04 or
3.06. Such policy may contain a deductible clause, in which case, in the event
that there shall not have been maintained on the related Mortgaged Property a
policy complying with Section 3.13, and there shall have been a loss which would
have been covered by such policy, the Servicer shall deposit in the Custodial
Account at the time of such loss the amount not otherwise payable under the
blanket policy because of such deductible clause, such amount to be deposited
from the Servicer's funds, without reimbursement therefor.
Section 3.15 Restoration of Mortgaged Property.
The Servicer need not obtain the approval of the Trustee or the Master
Servicer prior to releasing any Insurance Proceeds or Condemnation Proceeds to
the Mortgagor to be applied to the restoration or repair of the Mortgaged
Property if such release is in accordance with Accepted Servicing Practices. At
a minimum, with respect to claims greater than $10,000, the Servicer shall
comply with the following conditions in connection with any such release of
Insurance Proceeds or Condemnation Proceeds:
(i) the Servicer shall receive satisfactory independent verification
of completion of repairs and issuance of any required approvals with respect
thereto;
(ii) the Servicer shall take all steps necessary to preserve the
priority of the lien of the Mortgage, including, but not limited to requiring
waivers with respect to mechanics' and materialmen's liens; and
(iii) pending repairs or restoration, the Servicer shall place the
Insurance Proceeds or Condemnation Proceeds in the Escrow Account.
Section 3.16 Title, Management and Disposition of REO Property.
In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be taken in the name of the Trustee or its nominee (or MERS, as
applicable), or in the event the Trustee is not authorized or permitted to hold
title to real property in the state where the REO Property is located, or would
be adversely affected under the "doing business" or tax laws of such state by so
holding title, the deed or certificate of sale shall be taken in the name of
such Person or Persons as shall be consistent with an Opinion of Counsel
obtained by the Servicer (with a copy delivered to the Trustee) from any
attorney duly licensed to practice law in the state where the REO Property is
located. The Person or Persons holding such title other than the Trustee shall
acknowledge in writing that such title is being held as nominee for the Trustee.
The Servicer shall manage, conserve, protect and operate each REO Property
for the Trustee solely for the purpose of its prompt disposition and sale. The
Servicer, either itself or through an agent selected by the Servicer, shall
manage, conserve, protect and operate the REO Property in the same manner that
it manages, conserves, protects and operates other foreclosed
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property for its own account, and in the same manner that similar property in
the same locality as the REO Property is managed. The Servicer shall attempt to
sell the same (and may temporarily rent the same for a period not greater than
one year, except as otherwise provided below) on such terms and conditions as
the Servicer deems to be in the best interest of the Trustee. If the Servicer
determines that it is in the best interest of the Trustee to not proceed with
foreclosure or accept a deed in lieu of foreclosure, the Servicer shall have the
right to do so, whereupon the related Mortgage Loan shall be deemed to be
finally liquidated and the Servicer shall have the right to release the lien of
the Mortgage on the related Mortgage Property and the Servicer shall be entitled
to reimbursement for all outstanding unreimbursed Servicing Advances and Monthly
Advances from the Custodial Account in accordance with Section 3.04(viii).
The Servicer may permit an obligor to pay off a non-performing Mortgage
Loan at less than its unpaid principal balance or chargeoff all or a portion of
such non-performing Mortgage Loan if such discounted payoff or chargeoff is in
accordance with Accepted Servicing Practices and the Servicer believes that such
discounted payoff or chargeoff is in the best interest of the Trust Fund;
provided that in the case of any proposed discounted payoff or proposed
chargeoff, the Servicer shall notify the Master Servicer, by telecopy and
telephone, of the proposed discounted payoff or chargeoff. The Master Servicer
shall be deemed to have approved the discounted payoff or chargeoff of any
Mortgage Loan unless the Master Servicer notifies the Servicer in writing,
within five (5) Business Days after its receipt of the related notice, that it
disapproves of the discounted payoff or chargeoff, in which case the Servicer
shall not proceed with such discounted payoff or chargeoff.
Notwithstanding anything to the contrary contained in this Section 3.16,
in connection with a foreclosure or acceptance of a deed in lieu of foreclosure,
in the event the Servicer has reasonable cause to believe that a Mortgaged
Property is contaminated by hazardous or toxic substances or wastes, or if the
Trustee or the Master Servicer otherwise requests, an environmental inspection
or review of such Mortgaged Property to be conducted by a qualified inspector
shall be arranged by the Servicer. Upon completion of the inspection, the
Servicer shall provide the Trustee and the Master Servicer with a written report
of such environmental inspection. In the event that the environmental inspection
report indicates that the Mortgaged Property is contaminated by hazardous or
toxic substances or wastes, the Servicer shall not proceed with foreclosure or
acceptance of a deed in lieu of foreclosure. In the event that the environmental
inspection report is inconclusive as to the whether or not the Mortgaged
Property is contaminated by hazardous or toxic substances or wastes, the
Servicer shall not, without the prior approval of the Master Servicer, proceed
with foreclosure or acceptance of a deed in lieu of foreclosure. In such
instance, the Master Servicer shall be deemed to have approved such foreclosure
or acceptance of a deed in lieu of foreclosure unless the Master Servicer
notifies the Servicer in writing, within two (2) Business Days after its receipt
of written notice of the proposed foreclosure or deed in lieu of foreclosure
from the Servicer, that it disapproves of the related foreclosure or acceptance
of a deed in lieu of foreclosure. The Servicer shall be reimbursed for all
Servicing Advances made pursuant to this paragraph with respect to the related
Mortgaged Property from the Custodial Account.
The Servicer shall use its Best Efforts to dispose of the REO Property as
soon as possible and shall sell such REO Property in any event within three
years after title has been taken to such REO Property, unless (a) a REMIC
election has not been made with respect to the arrangement
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under which the Mortgage Loans and the REO Property are held, and (b) the
Servicer determines, and gives an appropriate notice to the Master Servicer to
such effect, that a longer period is necessary for the orderly liquidation of
such REO Property. If a period longer than three years is permitted under the
foregoing sentence and is necessary to sell any REO Property, (i) the Servicer
shall report monthly to the Master Servicer as to the progress being made in
selling such REO Property and (ii) if, with the written consent of the Trustee,
a purchase money mortgage is taken in connection with such sale, such purchase
money mortgage shall name the Servicer as mortgagee, and such purchase money
mortgage shall not be held pursuant to this Agreement, but instead a separate
participation agreement among the Servicer and Trustee shall be entered into
with respect to such purchase money mortgage. Notwithstanding anything herein to
the contrary, the Servicer shall not be required to provide financing for the
sale of any REO Property.
The Servicer shall also maintain on each REO Property fire and hazard
insurance with extended coverage in amount which is at least equal to the
maximum insurable value of the improvements which are a part of such property,
liability insurance and, to the extent required and available under the Flood
Disaster Protection Act of 1973, as amended, flood insurance in the amount
required above.
Notwithstanding any other provisions of this Agreement, no REO Property
acquired by the Trust Fund shall be rented (or allowed to continue to be rented)
or otherwise used or held by or on behalf of the Trust Fund in such a manner, or
pursuant to any terms or for a period that would: (i) cause such REO Property to
fail to qualify as "foreclosure property" within the meaning of Section
860G(a)(8) of the Code or (ii) result in the imposition of any tax upon any
REMIC included in the Trust Fund. Subject to the approval of the Master Servicer
as described in this paragraph, the disposition of REO Property shall be carried
out by the Servicer at such price, and upon such terms and conditions, as the
Servicer deems to be in the best interests of the Trust Fund.
Prior to acceptance by the Servicer of an offer to sell any REO Property,
the Servicer shall notify the Master Servicer of such offer in writing which
notification shall set forth all material terms of said offer (each a "Notice of
Sale"). The Master Servicer shall be deemed to have approved the sale of any REO
Property unless the Master Servicer notifies the Servicer in writing, within two
(2) Business Days after its receipt of the related Notice of Sale, that it
disapproves of the related sale, in which case the Servicer shall not proceed
with the sale. With respect to any REO Property, upon a REO Disposition, the
Servicer shall be entitled to retain from REO Disposition Proceeds a disposition
fee equal to $1,500.
The Servicer shall withdraw from the Custodial Account funds necessary for
the proper operation, management and maintenance of the REO Property, including
the cost of maintaining any hazard insurance pursuant to the Xxxxxx Mae Guides.
The Servicer shall make monthly distributions on each Remittance Date to the
Master Servicer of the net cash flow from the REO Property (which shall equal
the revenues from such REO Property net of the expenses described in this
Section 3.16 and of any reserves reasonably required from time to time to be
maintained to satisfy anticipated liabilities for such expenses).
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Section 3.17 Real Estate Owned Reports.
Together with the statement furnished pursuant to Section 4.02, the
Servicer shall furnish to the Master Servicer on or before the Remittance Date
each month a statement with respect to any REO Property covering the operation
of such REO Property for the previous month and the Servicer's efforts in
connection with the sale of such REO Property and any rental of such REO
Property incidental to the sale thereof for the previous month. That statement
shall be accompanied by such other information as the Master Servicer shall
reasonably request.
Section 3.18 MERS.
(a) So long as the Trustee is a member of MERS, the Servicer shall use its
Best Efforts to cause the Trustee to be identified as the owner of each MERS
Mortgage Loan on the records of MERS for purposes of the system of recording
transfers of beneficial ownership of mortgages maintained by MERS.
(b) The Servicer shall maintain in good standing its membership in MERS.
In addition, the Servicer shall comply with all rules, policies and procedures
of MERS, including the Rules of Membership, as amended, and the MERS Procedures
Manual, as amended.
(c) With respect to all MERS Mortgage Loans serviced hereunder, the
Servicer shall promptly notify MERS as to any transfer of beneficial ownership
of such Mortgage Loans of which the Servicer has notice.
(d) With respect to all MERS Mortgage Loans serviced hereunder, the
Servicer shall notify MERS as to any transfer of servicing pursuant to Section
9.01 within 10 Business Days of such transfer of servicing. The Servicer shall
cooperate with the Trustee, the Master Servicer and any successor servicer to
the extent necessary to ensure that such transfer of servicing is appropriately
reflected on the MERS system.
Section 3.19 Waiver of Prepayment Penalty Amounts.
Except as provided below, the Servicer or any designee of the Servicer
shall not waive any Prepayment Penalty Amount with respect to any Mortgage Loan.
If the Servicer or its designee fails to collect a Prepayment Penalty Amount at
the time of the related prepayment of any Mortgage Loan subject to such
Prepayment Penalty Amount, the Servicer shall pay to the Trust Fund at such time
(by deposit to the Custodial Account) an amount equal to the amount of the
Prepayment Penalty Amount not collected; provided, however, the Servicer shall
not have any obligation to pay the amount of any uncollected Prepayment Penalty
Amount under this Section 3.19 if the failure to collect such amount is the
result of inaccurate or incomplete information in the Prepayment Penalty Amount
Schedule provided by the Seller and which is included as part of the Mortgage
Loan Schedule attached hereto as Exhibit A. The Prepayment Penalty Amounts
listed on the Prepayment Penalty Amount Schedule attached hereto as Exhibit A
are complete, true and accurate and may be relied on by the Servicer in its
calculation of Prepayment Penalty Amounts. If the Prepayment Penalty Amount data
set forth on Exhibit A is incorrect, then the Servicer shall have no liability
for any loss resulting from calculation of Prepayment Penalty Amounts using the
data provided. Notwithstanding the above, the Servicer or its designee may waive
a Prepayment Penalty Amount without paying to the Trust Fund the
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amount of such Prepayment Penalty Amount only if such Prepayment Penalty Amount
(i) relates to a defaulted Mortgage Loan or a reasonably foreseeable default,
such waiver is standard and customary in servicing similar mortgage loans to the
Mortgage Loan, and such waiver, in the reasonable judgment of the Servicer would
maximize recovery of total proceeds from the Mortgage Loan, taking into account
the amount of such Prepayment Charge and the related Mortgage Loan, or (ii)
relates to a prepayment charge the collection of which, if collected, would be a
violation of applicable laws.
Section 3.20 Credit Reporting.
For each of the Pool 2 Mortgage Loans set forth on Exhibit G hereto, the
Servicer shall accurately and fully furnish, in accordance with the Fair Credit
Reporting Act and its implementing regulations, accurate and complete
information (e.g., favorable and unfavorable) on its borrower credit files to
each of the following credit repositories: Equifax Credit Information Services,
Inc., Trans Union, LLC and Experian Information Solution, Inc., on a monthly
basis.
ARTICLE IV.
PAYMENTS TO MASTER SERVICER
Section 4.01 Remittances.
On each Remittance Date, no later than 3:00 p.m. Eastern Standard Time,
the Servicer shall remit on a scheduled/scheduled basis by wire transfer of
immediately available funds to the Master Servicer (i) all amounts deposited in
the Custodial Account as of the close of business on the last day of the related
Due Period (net of charges against or withdrawals from the Custodial Account
pursuant to Section 3.04), plus (ii) all Monthly Advances, if any, which the
Servicer is obligated to remit pursuant to Section 4.03 (and which the Servicer
has not already deposited in the Custodial Account pursuant to Section
3.03(viii)); minus (iii) any amounts attributable to Principal Prepayments,
Liquidation Proceeds, Insurance Proceeds, Condemnation Proceeds or REO
Disposition Proceeds received after the applicable Prepayment Period, which
amounts shall be remitted on the following Remittance Date, together with any
additional interest required to be deposited in the Custodial Account in
connection with such Principal Prepayment in accordance with Section 3.03(vi),
and minus (iv) any amounts attributable to Monthly Payments collected but due on
a Due Date or Due Dates subsequent to the first day of the month in which such
Remittance Date occurs, which amounts shall be remitted on the Remittance Date
next succeeding the Due Date related to such Monthly Payment.
With respect to any remittance received by the Master Servicer after the
Business Day on which such payment was due, the Servicer shall pay to the Master
Servicer interest on any such late payment at an annual rate equal to the Prime
Rate, adjusted as of the date of each change, plus two (2) percentage points,
but in no event greater than the maximum amount permitted by applicable law.
Such interest shall be deposited in the Custodial Account by the Servicer on the
date such late payment is made and shall cover the period commencing with the
day following such Business Day and ending with the Business Day on which such
payment is made, both inclusive. Such interest shall be remitted along with the
distribution payable on the next
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succeeding Remittance Date. The payment by the Servicer of any such interest
shall not be deemed an extension of time for payment or a waiver by the Trustee
or the Master Servicer of any Event of Default.
All remittances required to be made to the Master Servicer shall be made
to the following wire account or to such other account as may be specified by
the Master Servicer from time to time:
JPMorgan Chase Bank, N.A.
New York, New York
ABA#: 000-000-000
Account Name: Aurora Loan Services LLC
Master Servicing Payment Clearing Account
Account Number: 066-611059
Beneficiary: Aurora Loan Services LLC
For further credit to: SARM 2005-4
Section 4.02 Statements to Master Servicer.
Not later than the tenth (10th) calendar day of each month (or if such
calendar day is not a Business Day, the immediately preceding Business Day), the
Servicer shall furnish to the Master Servicer (i) a monthly remittance advice in
the format set forth in Exhibit D-1 hereto and a monthly defaulted loan report
in the format set forth in Exhibit D-2 hereto (or in such other format mutually
agreed between the Servicer and the Master Servicer) relating to the period
ending on the last day of the preceding calendar month and (ii) all such
information required pursuant to clause (i) above on a magnetic tape or other
similar media reasonably acceptable to the Master Servicer. The format of this
monthly reporting may be amended from time to time to the extent necessary to
comply with applicable law or the terms of the Trust Agreement.
Not later than the seventeenth day of each month, the Servicer shall
furnish to the Master Servicer (a) a monthly payoff remittance advice regarding
any Principal Prepayments in full applied to the related Mortgage Loan on or
after the seventeenth day of the month preceding the month of such reporting
date, but on or before the sixteenth day of the month of such reporting date,
containing such information and in such format as is mutually acceptable to the
Master Servicer and the Servicer, and in any event containing sufficient
information to permit the Master Servicer to properly report Principal
Prepayment in full information to the Trustee under the Trust Agreement and (b)
all such information required pursuant to clause (a) above in electronic format,
on magnetic tape or other similar media reasonably acceptable to the Master
Servicer.
In addition, not more than 60 days after the end of each calendar year,
commencing December 31, 2005, the Servicer shall furnish to each Person who was
an owner of the Mortgage Loans at any time during such calendar year as required
by applicable law or if not required by applicable law, at the request of such
owner as to the aggregate of remittances for the applicable portion of such
year.
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Such obligation of the Servicer shall be deemed to have been satisfied
to the extent that substantially comparable information shall be provided by the
Servicer pursuant to any requirements of the Internal Revenue Code as from time
to time are in force.
The Master Servicer may request that the Servicer provide, at the
Master Servicer's expense, an appraisal or a broker price opinion on any
Mortgage Loan which is 90 days or more delinquent. The Servicer shall use its
best efforts to deliver such appraisal or broker price opinion to the Master
Servicer within 15 calendar days after such request.
Beginning with calendar year 2005, the Servicer shall provide the
Master Servicer with such information concerning the Mortgage Loans as is
necessary for the Trustee to prepare the Trust Fund's federal income tax return
as the Trustee may reasonably request from time to time.
Section 4.03 Monthly Advances by Servicer.
On the Business Day immediately preceding each Remittance Date, the
Servicer shall deposit in the Custodial Account from its own funds or from
amounts held for future distribution, or both, an amount equal to the aggregate
of all Monthly Advances relating to Monthly Payments which were due on the
Mortgage Loans during the applicable Due Period and which were delinquent at the
close of business on the immediately preceding Determination Date or which were
deferred pursuant to Section 3.01. Any amounts held for future distribution and
so used shall be replaced by the Servicer by deposit in the Custodial Account on
or before any future Remittance Date if funds in the Custodial Account on such
Remittance Date shall be less than remittances to the Master Servicer required
to be made on such Remittance Date. The Servicer shall keep appropriate records
of such amounts and will provide such records to the Master Servicer upon
request. The Servicer's obligation to make such Monthly Advances as to any
Mortgage Loan will continue through the last Monthly Payment due prior to the
payment in full of the Mortgage Loan, or through the last Remittance Date prior
to the Remittance Date for the distribution of all Liquidation Proceeds and
other payments or recoveries (including Insurance Proceeds and Condemnation
Proceeds) with respect to the Mortgage Loan unless the Servicer deems such
Monthly Advances to be unrecoverable, as evidenced by an Officer's Certificate
of the Servicer delivered to the Master Servicer.
ARTICLE V.
GENERAL SERVICING PROCEDURES
Section 5.01 Servicing Compensation.
As consideration for servicing the Mortgage Loans subject to this
Agreement, the Servicer shall retain (i) the relevant Servicing Fee for each
Mortgage Loan remaining subject to this Agreement during any month and (ii)
Ancillary Income. In addition, if at any time the Servicer is the Retained
Interest Holder with respect to any Mortgage Loans, then the Servicer, as the
Retained Interest Holder, shall retain an amount equal to the Retained Interest
relating to such Mortgage Loans; provided, that (i) the Trustee and the Master
Servicer shall have no obligation to make payment of the Retained Interest to
the Servicer and (ii) the Servicer's right to retain the Retained Interest is
limited to (and the Retained Interest may only be retained from)
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the interest portion (including recoveries with respect to interest from
Liquidation Proceeds) of the Monthly Payments collected by the Servicer with
respect to those Mortgage Loans for which payment is in fact made of the entire
amount of the Monthly Payment. The Servicing Fee shall be payable monthly. The
Servicing Fees shall be payable only at the time of and with respect to those
Mortgage Loans for which payment is in fact made of the entire amount of the
Monthly Payment or as otherwise provided in Section 3.04. The obligation of the
Trust Fund to pay the Servicing Fees is limited as provided in Section 3.04. The
aggregate of the Servicing Fees payable to the Servicer for any month with
respect to the Mortgage Loans shall be reduced by any Prepayment Interest
Shortfall Amount with respect to such month. Any Prepayment Interest Excess
Amount shall be retained by, or paid to, the Servicer as a part of the Servicing
Fee.
The Servicer shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder and shall not be entitled to
reimbursement thereof except as specifically provided for herein.
Section 5.02 Annual Audit Report.
On or before March 15th of each year, beginning with March 15, 2006,
Servicer shall, at its own expense, cause a firm of independent public
accountants (who may also render other services to Servicer), which is a member
of the American Institute of Certified Public Accountants, to furnish to the
Seller, the Trustee and the Master Servicer (i) year-end audited (if available)
financial statements of the Servicer and (ii) a statement to the effect that
such firm has examined certain documents and records for the preceding fiscal
year (or during the period from the date of commencement of such Servicer's
duties hereunder until the end of such preceding fiscal year in the case of the
first such certificate) and that, on the basis of such examination conducted
substantially in compliance with the Uniform Single Attestation Program for
Mortgage Bankers, or such other attestation program as may be required by
applicable law or regulation, such firm is of the opinion that Servicer's
overall servicing operations have been conducted in compliance with the Uniform
Single Attestation Program for Mortgage Bankers, or such other attestation
program as may be required by applicable law or regulation, except for such
exceptions that, in the opinion of such firm, the Uniform Single Attestation
Program for Mortgage Bankers, or such other attestation program as may be
required by applicable law or regulation, requires it to report, in which case
such exceptions shall be set forth in such statement.
Section 5.03 Annual Officer's Certificate.
(a) On or before March 15th of each year, beginning with March 15,
2006, the Servicer, at its own expense, will deliver to each Seller, the
Trustee, the Depositor and the Master Servicer a Servicing Officer's
certificate, or such other certificates as may be required under applicable law
or regulation, stating, as to each signer thereof, that (i) a review of the
activities of the Servicer during such preceding fiscal year and of performance
under this Agreement has been made under such officers' supervision, and (ii) to
the best of such officers' knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Agreement for such year, or, if there
has been a default in the fulfillment of all such obligations, specifying each
such default known to such officers and the nature and status thereof including
the steps being taken by the Servicer to remedy such default.
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(b) For so long as a certificate under the Xxxxxxxx-Xxxxx Act of 2002,
as amended, ("Xxxxxxxx-Xxxxx") is required to be given on behalf of the Trust
Fund, no later than March 15th of each year (or if not a Business Day, the
immediately preceding Business Day), or at any other time that the Master
Servicer, the Depositor or the Trustee provides a certification pursuant to
Xxxxxxxx-Xxxxx and upon thirty (30) days written request of such parties, an
officer of the Servicer shall execute and deliver an Officer's Certificate to
the Master Servicer, the Trustee and the Depositor for the benefit of the Trust
Fund and the Master Servicer, the Trustee and the Depositor and their officers,
directors and affiliates, in the form of Exhibit E hereto or as may be required
by applicable law or regulation.
(c) The Servicer shall indemnify and hold harmless the Master Servicer,
the Depositor and their respective officers, directors, agents and affiliates
from and against any losses, damages, penalties, fines, forfeitures, reasonable
legal fees and related costs, judgments and other costs and expenses arising out
of or based upon a breach by the Servicer or any of its officers, directors,
agents or affiliates of its obligations under this Section 5.03 or the
negligence, bad faith or willful misconduct of the Servicer in connection
therewith. If the indemnification provided for herein is unavailable or
insufficient to hold harmless the Master Servicer and/or the Depositor, then the
Servicer agrees that it shall contribute to the amount paid or payable by the
Master Servicer and/or the Depositor as a result of the losses, claims, damages
or liabilities of the Master Servicer and/or the Depositor in such proportion as
is appropriate to reflect the relative fault of the Master Servicer and/or the
Depositor on the one hand and the Servicer on the other in connection with a
breach of the Servicer's obligations under this Section 5.03 or the Servicer's
negligence, bad faith or willful misconduct in connection therewith.
Section 5.04 Transfers of Mortgaged Property.
The Servicer shall use its best efforts to enforce any "due-on-sale"
provision contained in any Mortgage or Mortgage Note and to deny assumption by
the person to whom the Mortgaged Property has been or is about to be sold
whether by absolute conveyance or by contract of sale, and whether or not the
Mortgagor remains liable on the Mortgage and the Mortgage Note. When the
Mortgaged Property has been conveyed by the Mortgagor, the Servicer shall, to
the extent it has knowledge of such conveyance, exercise its rights to
accelerate the maturity of such Mortgage Loan under the "due-on-sale" clause
applicable thereto, provided, however, that the Servicer shall not exercise such
rights if prohibited by law from doing so or if the exercise of such rights
would impair or threaten to impair any recovery under the related PMI Policy or
LPMI Policy, if any.
If the Servicer reasonably believes it is unable under applicable law
to enforce such "due-on-sale" clause, the Servicer shall enter into (i) an
assumption and modification agreement with the person to whom such property has
been conveyed, pursuant to which such person becomes liable under the Mortgage
Note and the original Mortgagor remains liable thereon or (ii) in the event the
Servicer is unable under applicable law to require that the original Mortgagor
remain liable under the Mortgage Note and the Servicer has the prior consent of
the primary mortgage guaranty insurer, a substitution of liability agreement
with the owner of the Mortgaged Property pursuant to which the original
Mortgagor is released from liability and the owner of the Mortgaged Property is
substituted as Mortgagor and becomes liable under the Mortgage Note; provided
that no such substitutions should be permitted unless such person satisfies the
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underwriting criteria of the Servicer and has a credit risk rating at least
equal to that of the original Mortgagor. The Mortgage Loan, as assumed, shall
conform in all respects to the requirements, representations and warranties of
this Agreement. The Servicer shall notify the Master Servicer that any such
assumption or substitution agreement has been contemplated by forwarding to the
Master Servicer a copy of such assumption or substitution agreement (indicating
the Mortgage File to which it relates). The Servicer shall forward an original
copy of such agreement to the Custodian to be held by the Custodian with the
other documents related to such Mortgage Loan. The Servicer shall be responsible
for recording any such assumption or substitution agreements. In connection with
any such assumption or substitution agreement, the Monthly Payment on the
related Mortgage Loan shall not be changed but shall remain as in effect
immediately prior to the assumption or substitution, the Mortgage Interest Rate,
the stated maturity or the outstanding principal amount of such Mortgage Loan
shall not be changed nor shall any required monthly payments of principal or
interest be deferred or forgiven. Any assumption fee collected by the Servicer
for entering into an assumption agreement shall be retained by the Servicer as
additional servicing compensation. In connection with any such assumption,
neither the Mortgage Interest Rate borne by the related Mortgage Note, the term
of the Mortgage Loan nor the outstanding principal amount of the Mortgage Loan
shall be changed.
ARTICLE VI.
REPRESENTATIONS, WARRANTIES
AND AGREEMENTS
Section 6.01 Representations, Warranties and Agreements of the
Servicer.
The Servicer, as a condition to the consummation of the transactions
contemplated hereby, hereby makes the following representations and warranties
to the Seller, the Master Servicer and the Trustee as of the Closing Date:
(a) Due Organization and Authority. The Servicer is a limited liability
company duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization and has all licenses necessary to carry on
its business as now being conducted and is licensed, qualified and in good
standing in each state where a Mortgaged Property is located if the laws of such
state require licensing or qualification in order to conduct business of the
type conducted by the Servicer, and in any event the Servicer is in compliance
with the laws of any such state to the extent necessary to ensure the
enforceability of the terms of this Agreement; the Servicer has the full power
and authority to execute and deliver this Agreement and to perform in accordance
herewith; the execution, delivery and performance of this Agreement (including
all instruments of transfer to be delivered pursuant to this Agreement) by the
Servicer and the consummation of the transactions contemplated hereby have been
duly and validly authorized; this Agreement evidences the valid, binding and
enforceable obligation of the Servicer and all requisite action has been taken
by the Servicer to make this Agreement valid and binding upon the Servicer in
accordance with its terms;
(b) Ordinary Course of Business. The consummation of the transactions
contemplated by this Agreement are in the ordinary course of business of the
Servicer;
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(c) No Conflicts. Neither the execution and delivery of this Agreement,
the acquisition of the servicing responsibilities by the Servicer or the
transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions of this Agreement, will conflict with or result in a breach
of any of the terms, conditions or provisions of the Servicer's organizational
documents or any legal restriction or any agreement or instrument to which the
Servicer is now a party or by which it is bound, or constitute a default or
result in an acceleration under any of the foregoing, or result in the violation
of any law, rule, regulation, order, judgment or decree to which the Servicer or
its property is subject, or impair the ability of the Servicer to service the
Mortgage Loans, or impair the value of the Mortgage Loans;
(d) Ability to Perform. The Servicer does not believe, nor does it have
any reason or cause to believe, that it cannot perform each and every covenant
contained in this Agreement;
(e) No Litigation Pending. There is no action, suit, proceeding or
investigation pending or threatened against the Servicer which, either in any
one instance or in the aggregate, may result in any material adverse change in
the business, operations, financial condition, properties or assets of the
Servicer, or in any material impairment of the right or ability of the Servicer
to carry on its business substantially as now conducted, or in any material
liability on the part of the Servicer, or which would draw into question the
validity of this Agreement or of any action taken or to be taken in connection
with the obligations of the Servicer contemplated herein, or which would be
likely to impair materially the ability of the Servicer to perform under the
terms of this Agreement;
(f) No Consent Required. No consent, approval, authorization or order
of any court or governmental agency or body is required for the execution,
delivery and performance by the Servicer of or compliance by the Servicer with
this Agreement;
(g) Ability to Service. The Servicer is an approved seller/servicer of
conventional residential mortgage loans for Xxxxxx Mae or Xxxxxxx Mac, with the
facilities, procedures, and experienced personnel necessary for the sound
servicing of mortgage loans of the same type as the Mortgage Loans. The Servicer
is in good standing to service mortgage loans for either Xxxxxx Mae or Xxxxxxx
Mac. The Servicer is a member in good standing of the MERS system;
(h) No Untrue Information. Neither this Agreement nor any statement,
report or other document furnished or to be furnished pursuant to this Agreement
or in connection with the transactions contemplated hereby contains any untrue
statement of fact or omits to state a fact necessary to make the statements
contained therein not misleading; and
(i) No Commissions to Third Parties. The Servicer has not dealt with
any broker or agent or anyone else who might be entitled to a fee or commission
in connection with this transaction other than the Seller.
Section 6.02 Remedies for Breach of Representations and Warranties of
the Servicer.
It is understood and agreed that the representations and warranties set
forth in Section 6.01 shall survive the engagement of the Servicer to perform
the servicing responsibilities as of the Closing Date or Servicing Transfer
Date, as applicable, hereunder and the delivery of the Servicing Files to the
Servicer and shall inure to the benefit of the Seller and the Trustee. Upon
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discovery by either the Servicer, the Master Servicer or the Seller of a breach
of any of the foregoing representations and warranties which materially and
adversely affects the ability of the Servicer to perform its duties and
obligations under this Agreement or otherwise materially and adversely affects
the value of the Mortgage Loans, the Mortgaged Property or the priority of the
security interest on such Mortgaged Property or the interest of the Seller or
the Trustee, the party discovering such breach shall give prompt written notice
to the other.
Within 60 days of the earlier of either discovery by or notice to the
Servicer of any breach of a representation or warranty set forth in Section 6.01
which materially and adversely affects the ability of the Servicer to perform
its duties and obligations under this Agreement or otherwise materially and
adversely affects the value of the Mortgage Loans, the Mortgaged Property or the
priority of the security interest on such Mortgaged Property, the Servicer shall
use its Best Efforts promptly to cure such breach in all material respects and,
if such breach cannot be cured, the Servicer shall, at the Trustee's or the
Master Servicer's option, assign the Servicer's rights and obligations under
this Agreement (or respecting the affected Mortgage Loans) to a successor
Servicer. Such assignment shall be made in accordance with Section 9.01.
In addition, the Servicer shall indemnify the Seller, the Trustee and
the Master Servicer (and each of their respective directors, officers, employees
and agents) and hold each of them harmless against any Costs resulting from any
claim, demand, defense or assertion based on or grounded upon, or resulting
from, a breach of the Servicer representations and warranties contained in this
Agreement. It is understood and agreed that the remedies set forth in this
Section 6.02 constitute the sole remedies of the Seller, the Master Servicer and
the Trustee respecting a breach of the foregoing representations and warranties.
Any cause of action against the Servicer relating to or arising out of
the breach of any representations and warranties made in Section 6.01 shall
accrue upon (i) discovery of such breach by the Servicer or notice thereof by
the Seller or the Master Servicer to the Servicer, (ii) failure by the Servicer
to cure such breach within the applicable cure period, and (iii) demand upon the
Servicer by the Seller or the Master Servicer for compliance with this
Agreement.
Section 6.03 Additional Indemnification by the Servicer; Third Party
Claims.
The Servicer shall indemnify the Seller, the Master Servicer, the
Depositor, the Trustee (and each of their respective directors, officers,
employees and agents) and the Trust Fund, and hold them harmless against any and
all Costs that any such indemnified party may sustain in any way related to (i)
the failure of the Servicer to perform its duties and service the Mortgage Loans
in material compliance with the terms of this Agreement (including, but not
limited to its obligation to provide the certification pursuant to Section
5.03(b) hereunder) or for any inaccurate or misleading information provided in
the certification required pursuant to Section 5.03(b) or (ii) the failure of
the Servicer to cause any event to occur or not to occur which would have
occurred or would not have occurred, as applicable, if the Servicer were
applying Accepted Servicing Practices under this Agreement. The Servicer shall
immediately notify the Seller, the Master Servicer, the Depositor, the Trustee
and the Trust Fund or any other relevant party if a claim is made by a third
party with respect to this Agreement or the Mortgage Loans, assume (with the
prior written consent of the indemnified party in the event of an indemnified
claim) the defense of any such claim and pay all expenses in connection
therewith, including counsel fees,
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promptly pay, discharge and satisfy any judgment or decree which may be entered
against it or any other party in respect of such claim and follow any written
instructions received from such indemnifying party in connection with such
claim. Subject to the Servicer's indemnification pursuant to Section 6.02, or
the failure of the Servicer to service and administer the Mortgage Loans in
material compliance with the terms of this Agreement, the Trust Fund shall
indemnify the Servicer and hold the Servicer harmless against any and all Costs
that the Servicer may sustain in connection with any legal action relating to
this Agreement, the Certificates or the origination or Servicing of the Mortgage
Loans by any prior owner or servicer, other than any Costs incurred by reason of
the Servicer's willful misfeasance, bad faith or negligence in the performance
of duties hereunder or by reason of its reckless disregard of obligations and
duties hereunder.
Section 6.04 Indemnification with Respect to Certain Taxes and Loss of
REMIC Status.
In the event that any REMIC fails to qualify as a REMIC, loses its
status as a REMIC, or incurs federal, state or local taxes as a result of a
prohibited transaction or prohibited contribution under the REMIC Provisions due
to the negligent performance by the Servicer of its duties and obligations set
forth herein, the Servicer shall indemnify the Holder of the related Residual
Certificate, the Master Servicer, the Trustee (and each of their respective
directors, officers, employees and agents) and the Trust Fund against any and
all losses, claims, damages, liabilities or expenses ("Losses") resulting from
such negligence; provided, however, that the Servicer shall not be liable for
any such Losses attributable to the action or inaction of the Trustee, the
Depositor or the Holder of such Residual Certificate, as applicable, nor for any
such Losses resulting from misinformation provided by the Holder of such
Residual Certificate on which the Servicer has relied. The foregoing shall not
be deemed to limit or restrict the rights and remedies of the Holder of such
Residual Certificate, the Trustee and the Trust Fund now or hereafter existing
at law or in equity or otherwise. Notwithstanding the foregoing, however, in no
event shall the Servicer have any liability (1) for any action or omission that
is taken in accordance with and in compliance with the express terms of, or
which is expressly permitted by the terms of, this Agreement, (2) for any Losses
other than arising out of a negligent performance by the Servicer of its duties
and obligations set forth herein, and (3) for any special or consequential
damages to Certificateholders (in addition to payment of principal and interest
on the Certificates).
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ARTICLE VII.
THE SERVICER
Section 7.01 Merger or Consolidation of the Servicer.
The Servicer shall keep in full effect its existence, rights and
franchises as a corporation or a limited liability company, and shall obtain and
preserve its qualification to do business as a foreign entity in each
jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement or any of the Mortgage Loans and
to perform its duties under this Agreement.
Any Person into which the Servicer may be merged or consolidated, or
any corporation or limited liability company resulting from any merger,
conversion or consolidation to which the Servicer shall be a party, or any
Person succeeding to the business of the Servicer, shall be the successor of the
Servicer hereunder, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding, provided, however, that the successor or surviving Person shall
be an institution (i) having a net worth of not less than $25,000,000, and (ii)
which is a Xxxxxx Xxx or Xxxxxxx Mac approved servicer in good standing.
Section 7.02 Limitation on Liability of the Servicer and Others.
Neither the Servicer nor any of the directors, officers, employees or
agents of the Servicer shall be under any liability to the Seller, the Master
Servicer or the Trustee for any action taken or for refraining from the taking
of any action in good faith pursuant to this Agreement, or for errors in
judgment; provided, however, that this provision shall not protect the Servicer
or any such person against any breach of warranties or representations made
herein, or failure to perform its obligations in strict compliance with any
standard of care set forth in this Agreement, or any liability which would
otherwise be imposed by reason of any breach of the terms and conditions of this
Agreement. The Servicer and any director, officer, employee or agent of the
Servicer may rely in good faith on any document of any kind prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Servicer shall not be under any obligation to appear in, prosecute or defend
any legal action which is not incidental to its duties to service the Mortgage
Loans in accordance with this Agreement and which in its opinion may involve it
in any expense or liability, provided, however, that the Servicer may, with the
consent of the Master Servicer, undertake any such action which it may deem
necessary or desirable in respect of this Agreement and the rights and duties of
the parties hereto. In such event, the Servicer shall be entitled to
reimbursement from the Trust Fund for the reasonable legal expenses and costs of
such action.
Section 7.03 Limitation on Resignation and Assignment by the Servicer.
The Seller has entered into this Agreement with the Servicer in
reliance upon the independent status of the Servicer, and the representations as
to the adequacy of its servicing facilities, plant, personnel, records and
procedures, its integrity, reputation and financial standing, and the
continuance thereof. Therefore, the Servicer shall neither assign its rights
under this Agreement or the servicing hereunder nor delegate its duties
hereunder or any portion
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thereof, or sell or otherwise dispose of all or substantially all of its
property or assets without, in each case, the prior written consent of the
Seller and the Master Servicer, which consent, in the case of an assignment of
rights or delegation of duties, shall be granted or withheld in the discretion
of the Seller and the Master Servicer, and which consent, in the case of a sale
or disposition of all or substantially all of the property or assets of the
Servicer, shall not be unreasonably withheld; provided, that in each case, there
must be delivered to the Master Servicer and the Trustee a letter from each
Rating Agency to the effect that such transfer of servicing or sale or
disposition of assets will not result in a qualification, withdrawal or
downgrade of the then-current rating of any of the Certificates. Notwithstanding
the foregoing, the Servicer, without the consent of the Seller, the Master
Servicer or the Trustee, may retain third party contractors to perform certain
servicing and loan administration functions, including without limitation,
hazard insurance administration, tax payment and administration, flood
certification and administration, collection services and similar functions;
provided, that the retention of such contractors by Servicer shall not limit the
obligation of the Servicer to service the Mortgage Loans pursuant to the terms
and conditions of this Agreement.
The Servicer shall not resign from the obligations and duties hereby
imposed on it except by mutual consent of the Servicer and the Master Servicer
or upon the determination that its duties hereunder are no longer permissible
under applicable law and such incapacity cannot be cured by the Servicer. Any
such determination permitting the resignation of the Servicer shall be evidenced
by an Opinion of Counsel to such effect delivered to the Master Servicer and the
Trustee which Opinion of Counsel shall be in form and substance acceptable to
the Master Servicer and the Trustee. No such resignation shall become effective
until a successor shall have assumed the Servicer's responsibilities and
obligations hereunder in the manner provided in Section 9.01.
Without in any way limiting the generality of this Section 7.03, in the
event that the Servicer either shall assign this Agreement or the servicing
responsibilities hereunder or delegate its duties hereunder or any portion
thereof or sell or otherwise dispose of all or substantially all of its property
or assets, without the prior written consent of the Seller and the Master
Servicer, then the Seller or the Master Servicer shall have the right to
terminate this Agreement upon notice given as set forth in Section 8.01, without
any payment of any penalty or damages and without any liability whatsoever to
the Servicer or any third party.
Section 7.04 Subservicing Agreements and Successor Subservicer.
(a) The Servicer may enter into subservicing agreements for
any servicing and administration of the Mortgage Loans with any institution
which (i) is an approved Xxxxxx Xxx or Xxxxxxx Mac Seller/Servicer and (ii)
which represents and warrants that it is in compliance with the laws of each
state as necessary to enable it to perform its obligations under such
subservicing agreement. For this purpose, subservicing shall not be deemed to
include the use of a tax service, or services for reconveyance, insurance,
property inspection or brokering REO Property or the retention of third party
contractors to perform certain servicing and loan administration functions,
including without limitation, hazard insurance administration, tax payment and
administration, flood certification and administration, collection services and
similar functions. The Servicer shall give prior written notice to the Master
Servicer and the Trustee of the appointment of any subservicer and shall furnish
to the Master Servicer a copy of
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such subservicing agreement. For purposes of this Agreement, the Servicer shall
be deemed to have received payments on Mortgage Loans immediately upon receipt
by any subservicer of such payments. Any such subservicing agreement shall be
consistent with and not violate the provisions of this Agreement. Each
subservicing agreement shall provide that a successor servicer shall have the
option to terminate such agreement without payment of any fees if the
predecessor servicer is terminated or resigns.
(b) The Servicer may terminate any subservicing agreement to
which it is a party in accordance with the terms and conditions of such
subservicing agreement and either itself directly service the related Mortgage
Loans or enter into a subservicing agreement with a successor subservicer that
qualifies under Section 7.04(a).
(c) Notwithstanding any subservicing agreement or the
provisions of this Agreement relating to agreements or arrangements between the
Servicer and a subservicer or reference to actions taken through a subservicer
or otherwise, the Servicer shall remain obligated and primarily liable to the
Trustee, the Master Servicer and the Certificateholders for the servicing and
administering of the Mortgage Loans in accordance with the provisions hereof
without diminution of such obligation or liability by virtue of such
subservicing agreements or arrangements or by virtue of indemnification from the
subservicer and to the same extent and under the same terms and conditions as if
the Servicer alone were servicing and administering the Mortgage Loans. The
Servicer shall be entitled to enter into any agreement with a subservicer for
indemnification of the Servicer by such subservicer and nothing contained in
this Agreement shall be deemed to limit or modify such indemnification.
ARTICLE VIII.
TERMINATION
Section 8.01 Termination for Cause.
This Agreement shall be terminable at the option of the Seller or the
Master Servicer if any of the following events of default exist on the part of
the Servicer:
(i) any failure by the Servicer to remit to the Master
Servicer any payment required to be made under the terms of this Agreement which
continues unremedied for a period of two Business Days after the date upon which
written notice of such failure, requiring the same to be remedied, shall have
been given to the Servicer by the Master Servicer; or
(ii) failure by the Servicer duly to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Servicer set forth in this Agreement which continues unremedied for a period of
30 days; or
(iii) failure by the Servicer to maintain its license to do
business or service residential mortgage loans in any jurisdiction, if required
by such jurisdiction, where the Mortgaged Properties are located; or
(iv) a decree or order of a court or agency or supervisory
authority having jurisdiction for the appointment of a conservator or receiver
or liquidator in any insolvency,
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readjustment of debt, including bankruptcy, marshaling of assets and liabilities
or similar proceedings, or for the winding-up or liquidation of its affairs,
shall have been entered against the Servicer and such decree or order shall have
remained in force undischarged or unstayed for a period of 60 days; or
(v) the Servicer shall consent to the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshaling of assets and liabilities or similar proceedings of or relating to
the Servicer or of or relating to all or substantially all of its property; or
(vi) the Servicer shall admit in writing its inability to pay
its debts generally as they become due, file a petition to take advantage of any
applicable insolvency, bankruptcy or reorganization statute, make an assignment
for the benefit of its creditors, voluntarily suspend payment of its obligations
or cease its normal business operations for three Business Days; or
(vii) the Servicer ceases to meet the qualifications of a
Xxxxxx Mae or Xxxxxxx Mac seller/servicer; or
(viii) the Servicer attempts to assign the servicing of the
Mortgage Loans or its right to servicing compensation hereunder or the Servicer
attempts to sell or otherwise dispose of all or substantially all of its
property or assets or to assign this Agreement or the servicing responsibilities
hereunder or to delegate its duties hereunder or any portion thereof (to other
than a third party in the case of outsourcing routine tasks including, but not
limited to, taxes, insurance, property inspection, reconveyance, collection or
brokering REO Property), in each case without complying fully with the
provisions of Section 7.03.
In each and every such case, so long as an event of default shall not
have been remedied, in addition to whatever rights the Seller or the Master
Servicer may have at law or equity to damages, including injunctive relief and
specific performance, the Seller or the Master Servicer, by notice in writing to
the Servicer, may terminate all the rights and obligations of the Servicer under
this Agreement and in and to the servicing contract established hereby and the
proceeds thereof.
Upon receipt by the Servicer of such written notice, all authority and
power of the Servicer under this Agreement, whether with respect to the Mortgage
Loans or otherwise, shall pass to and be vested in a successor Servicer
appointed by the Seller and the Master Servicer. Upon written request from the
Seller, the Servicer shall prepare, execute and deliver to the successor entity
designated by the Seller any and all documents and other instruments, place in
such successor's possession all Servicing Files relating to the Seller's
Mortgage Loans, and do or cause to be done all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, including but
not limited to the transfer and endorsement or assignment of the Mortgage Loans
and related documents, at the Servicer's sole expense. The Servicer shall
cooperate with the Seller and the Master Servicer and such successor in
effecting the termination of the Servicer's responsibilities and rights
hereunder, including without limitation, the transfer to such successor for
administration by it of all cash amounts which shall at the time be credited by
the Servicer to the Custodial Account or Escrow Account or thereafter received
with respect to the Mortgage Loans.
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By a written notice, the Seller and the Master Servicer may waive any
default by the Servicer in the performance of its obligations hereunder and its
consequences. Upon any waiver of a past default, such default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
remedied for every purpose of this Agreement. No such waiver shall extend to any
subsequent or other default or impair any right consequent thereon except to the
extent expressly so waived.
Upon a termination for cause pursuant to Section 8.01, all unreimbursed
Servicing Fees, Servicing Advances and Monthly Advances still owing the Servicer
shall be paid by the Trust Fund as such amounts are received from the related
Mortgage Loans.
Section 8.02 Termination Without Cause.
This Agreement shall terminate upon: (i) the later of (a) the
distribution of the final payment or liquidation proceeds on the last Mortgage
Loan to the Master Servicer (or advances by the Servicer for the same), and (b)
the disposition of all REO Property acquired upon foreclosure of the last
Mortgage Loan and the remittance of all funds due hereunder, (ii) mutual consent
of the Servicer, the Seller and the Master Servicer in writing or (iii) at the
sole discretion of the Seller (acting in its capacity as owner of the servicing
rights relating to the Mortgage Loans). Any such termination pursuant to clause
(iii) above shall be with 30 days' prior notice, in writing and delivered to the
Trustee, the Master Servicer and the Servicer by registered mail to the
addresses set forth in Section 9.03 of this Agreement (in the case of the
Servicer) or in the Trust Agreement (in the case of the Trustee or the Master
Servicer). The Servicer shall comply with the termination procedures set forth
in Sections 7.03, 8.01 and 9.01 hereof. The Master Servicer or the Trustee shall
have no right to terminate the Servicer pursuant to this Section 8.02. In
connection with a termination by the Seller pursuant to clause (iii) of this
Section 8.02, the Servicer shall be reimbursed for all unreimbursed
out-of-pocket Servicing Advances, Monthly Advances and Servicing Fees and other
reasonable and necessary out-of-pocket costs associated with any transfer of
servicing at the time of such transfer of servicing. Any invoices received by
the Servicer after termination will be forwarded to the Seller or the successor
servicer for payment within thirty (30) days of receipt from the Servicer.
ARTICLE IX.
MISCELLANEOUS PROVISIONS
Section 9.01 Successor to the Servicer.
Simultaneously with the termination of the Servicer's responsibilities
and duties under this Agreement (a) pursuant to Sections 6.02, 7.03, 8.01 or
8.02(ii), the Master Servicer shall (i) succeed to and assume all of the
Servicer's responsibilities, rights, duties and obligations under this
Agreement, or (ii) appoint a successor having the characteristics set forth in
clauses (i) and (ii) of Section 7.01 and which shall succeed to all rights and
assume all of the responsibilities, duties and liabilities of the Servicer under
this Agreement simultaneously with the termination of the Servicer's
responsibilities, duties and liabilities under this Agreement; or (b) pursuant
to a termination under Section 8.02(iii), the Seller shall appoint a successor
having the characteristics set forth in clauses (i) and (ii) of Section 7.01 and
which shall succeed to all rights and assume
-41-
all of the responsibilities, duties and liabilities of the Servicer under this
Agreement simultaneously with the termination of the Servicer's
responsibilities, duties and liabilities under this Agreement (with respect to
those related Mortgage Loans). Any successor to the Servicer shall be subject to
the approval of the Master Servicer and, to the extent required by the Trust
Agreement, the Trustee, shall be a member in good standing of the MERS system
(if any of the Mortgage Loans are MERS Eligible Mortgage Loans, unless such
Mortgage Loans are withdrawn from MERS and Assignments of Mortgage are recorded
in favor of the Trustee at the expense of the successor Servicer). Any approval
of a successor servicer by the Master Servicer and, to the extent required by
the Trust Agreement, the Trustee, shall, if the successor servicer is not at
that time a servicer of other Mortgage Loans for the Trust Fund, be conditioned
upon the receipt by the Master Servicer and the Trustee of a letter from each
Rating Agency to the effect that such transfer of servicing will not result in a
qualification, withdrawal or downgrade of the then-current rating of any of the
Certificates. In connection with such appointment and assumption, the Master
Servicer or the Seller, as applicable, may make such arrangements for the
compensation of such successor out of payments on Mortgage Loans as it and such
successor shall agree, provided, however, that no such compensation shall be in
excess of that permitted the Servicer under this Agreement. In the event that
the Servicer's duties, responsibilities and liabilities under this Agreement
should be terminated pursuant to the aforementioned sections, the Servicer shall
discharge such duties and responsibilities during the period from the date it
acquires knowledge of such termination until the effective date thereof with the
same degree of diligence and prudence which it is obligated to exercise under
this Agreement, and shall take no action whatsoever that might impair or
prejudice the rights or financial condition of its successor. The resignation or
removal of the Servicer pursuant to the aforementioned sections shall not become
effective until a successor shall be appointed pursuant to this Section 9.01 and
shall in no event relieve the Servicer of the representations and warranties
made pursuant to Sections 6.01 and the remedies available to the Master Servicer
and the Seller under Section 6.02, 6.03 and 6.04, it being understood and agreed
that the provisions of such Sections 6.01, 6.02, 6.03 and 6.04 shall be
applicable to the Servicer notwithstanding any such resignation or termination
of the Servicer, or the termination of this Agreement. Neither the Master
Servicer, in its capacity as successor servicer, nor any other successor
servicer, shall be responsible for the lack of information and/or documents that
are not transferred to it by the Servicer and that it cannot otherwise obtain
through reasonable efforts.
Within a reasonable period of time, but in no event longer than 30 days
of the appointment of a successor entity, the Servicer shall prepare, execute
and deliver to the successor entity any and all documents and other instruments,
place in such successor's possession all Servicing Files, and do or cause to be
done all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, including but not limited to the transfer and
endorsement of the Mortgage Notes and related documents, and the preparation and
recordation of Assignments of Mortgage. The Servicer shall cooperate with the
Trustee, the Master Servicer or the Seller, as applicable, and such successor in
effecting the termination of the Servicer's responsibilities and rights
hereunder and the transfer of servicing responsibilities to the successor
Servicer, including without limitation, the transfer to such successor for
administration by it of all cash amounts which shall at the time be credited by
the Servicer to the Custodial Account or Escrow Account or thereafter received
with respect to the Mortgage Loans.
-42-
Any successor appointed as provided herein shall execute, acknowledge
and deliver to the Trustee, the Servicer, the Master Servicer and the Seller an
instrument (i) accepting such appointment, wherein the successor shall make the
representations and warranties set forth in Section 6.01 (including a
representation that the successor Servicer is a member of MERS, unless none of
the Mortgage Loans are MERS Mortgage Loans or MERS Eligible Mortgage Loans or
any such Mortgage Loans have been withdrawn from MERS and Assignments of
Mortgage are recorded in favor of the Trustee) and provide for the same remedies
set forth in Sections 6.02, 6.03 and 6.04 herein and (ii) an assumption of the
due and punctual performance and observance of each covenant and condition to be
performed and observed by the Servicer under this Agreement, whereupon such
successor shall become fully vested with all the rights, powers, duties,
responsibilities, obligations and liabilities of the Servicer, with like effect
as if originally named as a party to this Agreement. Any termination or
resignation of the Servicer or termination of this Agreement pursuant to
Sections 6.02, 7.03, 8.01 or 8.02 shall not affect any claims that the Master
Servicer or the Trustee may have against the Servicer arising out of the
Servicer's actions or failure to act prior to any such termination or
resignation. In addition, in the event any successor servicer is appointed
pursuant to Section 8.02(iii) of this Agreement, such successor servicer must
satisfy the conditions relating to the transfer of servicing set forth in the
Trust Agreement.
The Servicer shall deliver promptly to the successor servicer the funds
in the Custodial Account and Escrow Account and all Mortgage Loan documents and
related documents and statements held by it hereunder and the Servicer shall
account for all funds and shall execute and deliver such instruments and do such
other things as may reasonably be required to more fully and definitively vest
in the successor all such rights, powers, duties, responsibilities, obligations
and liabilities of the Servicer.
Upon a successor's acceptance of appointment as such, the Servicer
shall notify the Trustee, the Seller and Master Servicer of such appointment in
accordance with the procedures set forth in Section 9.03.
Section 9.02 Costs.
The Seller shall pay the legal fees and expenses of its attorneys.
Costs and expenses incurred in connection with the transfer of the servicing
responsibilities, including fees for delivering Servicing Files, shall be paid
by the Seller. Subject to Sections 2.02 and 3.01(a), the Depositor shall pay the
costs associated with the preparation, delivery and recording of Assignments of
Mortgages.
Section 9.03 Notices.
All demands, notices and communications hereunder shall be in writing
and shall be deemed to have been duly given if sent by facsimile or mailed by
overnight courier, addressed as follows (or such other address as may hereafter
be furnished to the other party by like notice):
-43-
(i) if to the Seller:
Xxxxxx Brothers Holdings Inc.
000 Xxxxxxx Xxxxxx
0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Contract Finance - SARM 2005-4
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
with a copy to:
Dechert, LLP
0000 Xxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxxxx, Esq.
(ii) if to the Servicer:
Aurora Loan Services LLC
000 Xxxxxxxxx Xxxxx Xxxxx
Xxxxxxxxx, XX 00000
Attn: E. Xxxx Xxxxxxxxxx
Mail Stop - 3195
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000
with a copy to:
Aurora Loan Services LLC
000 Xxxxx Xxxxxx
X.X. Xxx 0000
Xxxxxxxxxxx, Xxxxxxxx 00000
Attention: Manager, Loan Administration
Telephone No.: (000) 000-0000
Telecopier No.: (000) 000-0000
(iii) if to the Master Servicer:
Aurora Loan Services LLC
000 Xxxxxxxxx Xxxxx Xxxxx
Xxxxxxxxx, XX 00000
Mail Stop Code - 3195
Attn: E. Xxxx Xxxxxxxxxx - Xxxxxx Xxxxxxxxx
XXXX 0000-0
Telephone: (000) 000-0000
-44-
(iv) if to the Trustee:
HSBC Bank USA, National Association
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Issuer Services, SARM 2005-4
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Any such demand, notice or communication hereunder shall be deemed to
have been received on the date delivered to or received at the premises of the
addressee.
Section 9.04 Severability Clause.
Any part, provision, representation or warranty of this Agreement which
is prohibited or which is held to be void or unenforceable shall be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof. Any part, provision, representation or warranty of
this Agreement which is prohibited or unenforceable or is held to be void or
unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction,
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction as to any Mortgage Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereto waive any provision of law which prohibits
or renders void or unenforceable any provision hereof. If the invalidity of any
part, provision, representation or warranty of this Agreement shall deprive any
party of the economic benefit intended to be conferred by this Agreement, the
parties shall negotiate, in good-faith, to develop a structure the economic
effect of which is as close as possible to the economic effect of this Agreement
without regard to such invalidity.
Section 9.05 No Personal Solicitation.
From and after the Closing Date, the Servicer hereby agrees that it
will not take any action or permit or cause any action to be taken by any of its
agents or affiliates, or by any independent contractors on the Servicer's
behalf, to personally, by telephone or mail, solicit the borrower or obligor
under any Mortgage Loan (on a targeted basis) for any purposes of prepayment,
refinancing or modification of the related Mortgage Loan, provided, however,
that this limitation shall not prohibit the Servicer from soliciting such
Mortgagor for purposes of prepayment, refinance or modification of any loan
owned or serviced by the Servicer other than a Mortgage Loan. Notwithstanding
the foregoing, it is understood and agreed that, among other marketing
activities, promotions and solicitations undertaken by the Servicer which are
directed of the general public at large or which are directed generally to a
segment of the then existing customers of the Servicer or any of its affiliates
(including, without limitation, the mailing of promotional materials to the
Servicer's or its affiliates' deposit customers by inserting such materials into
customer account statements, mass mailings based on commercially acquired
mailing lists and newspaper, radio and television advertisements and
solicitations made on the basis of information acquired by the Servicer or its
affiliates that indicates that a borrower may be planning to refinance) shall
not constitute solicitation under this section. In the event the
-45-
Servicer does refinance any Mortgage Loan as a result of a violation of the
requirements set forth in this Section 9.05, the Servicer hereby agrees to pay
to the Trust Fund an amount equal to the difference, if any, between the amount
that the Trust Fund would have received if it had sold the Mortgage Loan to a
third party, and the proceeds received by the Trust Fund as a result of such
refinancing.
Section 9.06 Counterparts.
This Agreement may be executed simultaneously in any number of
counterparts. Each counterpart shall be deemed to be an original, and all such
counterparts shall constitute one and the same instrument.
Section 9.07 Place of Delivery and Governing Law.
This Agreement shall be deemed in effect when a fully executed
counterpart thereof is received by the Seller in the State of New York and shall
be deemed to have been made in the State of New York. 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.
Section 9.08 Further Agreements.
The Seller and the Servicer each agree to execute and deliver to the
other such reasonable and appropriate additional documents, instruments or
agreements as may be necessary or appropriate to effectuate the purposes of this
Agreement.
Section 9.09 Intention of the Parties.
It is the intention of the parties that the Seller is conveying, and
the Servicer is receiving only a contract for servicing the Mortgage Loans.
Accordingly, the parties hereby acknowledge that the Trust Fund remains the sole
and absolute owner of the Mortgage Loans and all rights (other than the
servicing rights) related thereto.
Section 9.10 Successors and Assigns; Assignment of Servicing Agreement.
This Agreement shall bind and inure to the benefit of and be
enforceable by the Servicer, each Seller, the Trustee and the Master Servicer
and their respective successors and assigns. This Agreement shall not be
assigned, pledged or hypothecated by the Servicer to a third party except in
accordance with Section 7.03.
Section 9.11 Assignment by the Seller.
The Seller shall have the right, upon notice to but without the consent
of the Servicer, to assign, in whole or in part, its interest under this
Agreement to the Depositor, which in turn shall assign such rights to the
Trustee, and the Trustee then shall succeed to all rights of the Seller
-46-
under this Agreement. All references to the Seller in this Agreement shall be
deemed to include its assignee or designee and any subsequent assignee or
designee, specifically including the Trustee, except with respect to the
Seller's retained servicing rights pursuant to Section 8.02(iii).
The Seller shall have the right, upon notice to but without the consent
of the Servicer, to assign, in whole or in part, its retained servicing rights.
All references to the Seller in this Agreement, in its capacity as an owner of
servicing rights, shall be deemed to include the assignee or designee and any
subsequent assignee or designee, of the Seller's rights arising pursuant to
Section 8.02(iii).
Section 9.12 Amendment
This Agreement may be amended from time to time by the written
agreement signed by the Master Servicer, the Seller and the Servicer; provided
that the party requesting such amendment shall, at its own expense, provide the
Trustee, the Master Servicer and the Seller with an Opinion of Counsel that such
amendment will not materially adversely affect the interest of the
Certificateholders in the Mortgage Loans. Any such amendment shall be deemed not
to adversely affect in any material respect any the interest of the
Certificateholders in the Mortgage Loans, if the Trustee receives written
confirmation from each Rating Agency that such amendment will not cause such
Rating Agency to reduce, qualify or withdraw the then current rating assigned to
the Certificates (and any Opinion of Counsel requested by the Trustee, the
Master Servicer and the Seller in connection with any such amendment may rely
expressly on such confirmation as the basis therefore).
Section 9.13 Waivers.
No term or provision of this Agreement may be waived or modified unless
such waiver or modification is in writing and signed by the party against whom
such waiver or modification is sought to be enforced.
Section 9.14 Exhibits.
The exhibits to this Agreement are hereby incorporated and made a part
hereof and are an integral part of this Agreement.
Section 9.15 General Interpretive Principles.
For purposes of this Agreement, except as otherwise expressly provided
or unless the context otherwise requires:
(a) the terms defined in this Agreement have the meanings assigned to
them in this Agreement and include the plural as well as the singular, and the
use of any gender herein shall be deemed to include the other gender;
(b) accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles;
-47-
(c) references herein to "Articles", "Sections", "Subsections",
"Paragraphs", and other subdivisions without reference to a document are to
designated Articles, Sections, Subsections, Paragraphs and other subdivisions of
this Agreement;
(d) a reference to a Subsection without further reference to a Section
is a reference to such Subsection as contained in the same Section in which the
reference appears, and this rule shall also apply to Paragraphs and other
subdivisions;
(e) the words "herein", "hereof", "hereunder" and other words of
similar import refer to this Agreement as a whole and not to any particular
provision; and
(f) the term "include" or "including" shall mean by reason of
enumeration.
Section 9.16 Reproduction of Documents.
This Agreement and all documents relating thereto, including, without
limitation, (i) consents, waivers and modifications which may hereafter be
executed, (ii) documents received by any party at the closing, and (iii)
financial statements, certificates and other information previously or hereafter
furnished, may be reproduced by any photographic, photostatic, microfilm,
micro-card, miniature photographic or other similar process. The parties agree
that any such reproduction shall be admissible in evidence as the original
itself in any judicial or administrative proceeding, whether or not the original
is in existence and whether or not such reproduction was made by a party in the
regular course of business, and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.
Section 9.17 Protection of Confidential Information.
The Servicer shall keep confidential and shall not divulge to any
party, without the Seller's prior written consent, any nonpublic information
pertaining to the Mortgage Loans or any borrower thereunder, except to the
extent that it is appropriate for the Servicer to do so in working with legal
counsel, auditors, taxing authorities or other governmental agencies or it is
otherwise in accordance with Accepted Servicing Practices.
-48-
IN WITNESS WHEREOF, the Servicer, the Seller and the Master Servicer
have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the date first above written.
XXXXXX BROTHERS HOLDINGS INC.,
as Seller
By:
---------------------------------------
Name: Xxxxxxx X. Xxxxxxxxxx
Title: Authorized Signatory
AURORA LOAN SERVICES LLC,
as Servicer
By:
---------------------------------------
Name: Xxx X. Xxxxxxxx, Xx.
Title: Senior Vice President
AURORA LOAN SERVICES LLC,
as Master Servicer
By:
---------------------------------------
Name: E. Xxxx Xxxxxxxxxx
Title: Executive Vice President
ACKNOWLEDGED BY:
HSBC BANK USA, NATIONAL ASSOCIATION
as Trustee
By:__________________________________
Name: Xxxxx Xxxxx
Title: Assistant Vice President
-49-
EXHIBIT A
MORTGAGE LOAN SCHEDULE
[Intentionally Omitted]
Exh. A
EXHIBIT B
CUSTODIAL ACCOUNT CERTIFICATION NOTICE
February _, 2005
To:
Aurora Loan Services LLC
000 Xxxxxxxxx Xxxxx Xxxxx
Xxxxxxxxx, XX 00000
Mail Stop Code - 3195
Attn: E. Xxxx Xxxxxxxxxx - Master Servicing
(SARM 2005-4)
As Servicer under the Servicing Agreement, dated as of February 1, 2005
among Aurora Loan Services LLC, as Servicer, Xxxxxx Brothers Holdings Inc., as
Seller and you, as Master Servicer (the "Agreement"), we hereby certify to you
that we have established an account at [insert name of financial institution],
as a Custodial Account pursuant to Section 3.03 of the Agreement, to be
designated as "Aurora Loan Services LLC, in trust for HSBC Bank USA, National
Association, as Trustee for Structured Adjustable Rate Mortgage Loan Trust,
2005-4." All deposits in the account shall be subject to withdrawal therefrom by
order signed by the Servicer.
AURORA LOAN SERVICES LLC
By:
--------------------------------
Name:
Title:
Exh. B
EXHIBIT C
ESCROW ACCOUNT CERTIFICATION NOTICE
February __, 2005
To:
Aurora Loan Services LLC
000 Xxxxxxxxx Xxxxx Xxxxx
Xxxxxxxxx, XX 00000
Mail Stop Code - 3195
Attn: E. Xxxx Xxxxxxxxxx - Master Servicing
(SARM 2005-4)
As Servicer under the Servicing Agreement, dated as of February 1, 2005
among Aurora Loan Services LLC, as Servicer, Xxxxxx Brothers Holdings Inc., as
Seller and you, as Master Servicer (the "Agreement"), we hereby certify to you
that we have established an account at [insert name of financial institution],
as an Escrow Account pursuant to Section 3.05 of the Agreement, to be designated
as "Aurora Loan Services LLC, in trust for HSBC Bank USA, National Association,
as Trustee for Structured Adjustable Rate Mortgage Loan Trust, 2005-4." All
deposits in the account shall be subject to withdrawal therefrom by order signed
by the Servicer.
AURORA LOAN SERVICES LLC
By:
-----------------------------------
Name:
Title:
Exh. C
EXHIBIT D-1
FORM OF MONTHLY REMITTANCE ADVICE
FIELD NAME DESCRIPTION FORMAT
---------- ----------- ------
INVNUM INVESTOR LOAN NUMBER Number no decimals
SERVNUM SERVICER LOAN NUMBER, REQUIRED Number no decimals
BEGSCHEDBAL BEGINNING SCHEDULED BALANCE FOR SCHED/SCHED Number two decimals
BEGINNING TRAIL BALANCE FOR ACTUAL/ACTUAL, REQUIRED
SCHEDPRIN SCHEDULED PRINCIPAL AMOUNT FOR SCHEDULED/SCHEDULED Number two decimals
ACTUAL PRINCIPAL COLLECTED FOR ACTUAL/ACTUAL,
REQUIRED, .00 IF NO COLLECTIONS
CURT1 CURTAILMENT 1 XXXXXX, .00 IF NOT APPLICABLE Number two decimals
CURT1DATE CURTAILMENT 1 DATE, BLANK IF NOT APPLICABLE DD-MMM-YY
CURT1ADJ CURTAILMENT 1 ADJUSTMENT, .00 IF NOT APPLICABLE Number two decimals
CURT2 CURTAILMENT 2 XXXXXX, .00 IF NOT APPLICABLE Number two decimals
CURT2DATE CURTAILMENT 2 DATE, BLANK IF NOT APPLICABLE DD-MMM-YY
CURT2ADJ CURTAILMENT 2 ADJUSTMENT, .00 IF NOT APPLICABLE Number two decimals
LIQPRIN PAYOFF, LIQUIDATION PRINCIPAL, .00 IF NOT APPLICABLE Number two decimals
OTHPRIN OTHER PRINCIPAL, .00 IF NOT APPLICABLE Number two decimals
PRINREMIT TOTAL PRINCIPAL REMITTANCE AMOUNT, .00 IF NOT APPLICABLE Number two decimals
INTREMIT NET INTEREST REMIT, INCLUDE PAYOFF INTEREST, Number two decimals
.00 IF NOT APPLICABLE
TOTREMIT TOTAL REMITTANCE AMOUNT, .00 IF NOT APPLICABLE Number two decimals
ENDSCHEDBAL ENDING SCHEDULED BALANCE FOR SCHEDULED/SCHEDULED Number two decimals
ENDING TRIAL BALANCE FOR ACTUAL/ACTUAL
.00 IF PAIDOFF, LIQUIDATED OR FULL CHARGEOFF
ENDACTBAL ENDING TRIAL BALANCE Number two decimals
.00 IF PAIDOFF, LIQUIDATED OR FULL CHARGEOFF
ENDDUEDATE ENDING ACTUAL DUE DATE, NOT LAST PAID INSTALLMENT DD-MMM-YY
ACTCODE 60 IF PAIDOFF, BLANK IF NOT APPLICABLE Number no decimals
ACTDATE ACTUAL PAYOFF DATE, BLANK IF NOT APPLICABLE DD-MMM-YY
INTRATE INTEREST RATE, REQUIRED Number seven decimals
Example .0700000 for 7.00%
SFRATE SERVICE FEE RATE, REQUIRED Number seven decimals
Example .0025000 for .25%
PTRATE PASS THRU RATE, REQUIRED Number seven decimals
Example .0675000 for 6.75%
PIPMT P&I CONSTANT, REQUIRED Number two decimals
.00 IF PAIDOFF
Exh. D-1
EXHIBIT D-2
STANDARD LAYOUT FOR MONTHLY DEFAULTED LOAN REPORT
DATA FIELD FORMAT DATA DESCRIPTION
---------- ------ ----------------
% of MI coverage NUMBER(6,5) The percent of coverage provided by the PMI
company in the event of loss on a defaulted
loan.
Actual MI claim filed date DATE(MM/DD/YYYY) Actual date that the claim was submitted to
the PMI company.
Actual bankruptcy start DATE(MM/DD/YYYY) Actual date that the bankruptcy petition is
date filed with the court.
Actual MI claim amount NUMBER(15,2) The amount of the claim that was filed by the
filed servicer with the PMI company.
Actual discharge date DATE(MM/DD/YYYY) Actual date that the Discharge Order is
entered in the bankruptcy docket.
Actual due date DATE(MM/DD/YYYY) Actual due date of the next outstanding
payment amount due from the mortgagor.
Actual eviction complete DATE(MM/DD/YYYY) Actual date that the eviction proceedings
date are completed by local counsel.
Actual eviction start date DATE(MM/DD/YYYY) Actual date that the eviction proceedings
are commenced by local counsel.
Actual first legal date DATE(MM/DD/YYYY) Actual date that foreclosure counsel filed
the first legal action as defined by state
statute.
Actual redemption end date DATE(MM/DD/YYYY) Actual date that the foreclosure redemption
period expires.
Bankruptcy chapter VARCHAR2(2) 7= Chapter 7 filed 11= Chapter 11 filed Chapter of bankruptcy filed.
12= Chapter 12 filed 13= Chapter 13 filed
Bankruptcy flag VARCHAR2(2) Y=Active Bankruptcy N=No Active Bankruptcy Servicer defined indicator that identifies
that the property is an asset in an active
bankruptcy case.
Bankruptcy Case Number VARCHAR2(15) The court assigned case number of the
bankruptcy filed by a party with interest in
the property.
MI claim amount paid NUMBER(15,2) The amount paid to the servicer by the PMI
company as a result of submitting an MI
claim.
Exh. D-2-1
DATA FIELD FORMAT DATA DESCRIPTION
---------- ------ ----------------
MI claim funds received DATE(MM/DD/YYYY) Actual date that funds were received from the
date PMI company as a result of transmitting an MI
claim.
Current loan amount NUMBER(10,2) Current unpaid principal balance of the loan
as of the date of reporting to Aurora Master
Servicing.
Date FC sale scheduled DATE(MM/DD/YYYY) Date that the foreclosure sale is scheduled
to be held.
Date relief/dismissal DATE(MM/DD/YYYY) Actual date that the dismissal or relief
granted from stay order is entered by the bankruptcy
court.
Date REO offer accepted DATE(MM/DD/YYYY) Actual date of acceptance of an REO offer.
Date REO offer received DATE(MM/DD/YYYY) Actual date of receipt of an REO offer.
Delinquency value NUMBER(10,2) Value obtained typically from a BPO prior to
foreclosure referral not related to loss
mitigation activity.
Delinquency value source VARCHAR2(15) BPO= Broker's Price Opinion Name of vendor or management company that
Appraisal=Appraisal provided the delinquency valuation amount.
Delinquency value date DATE(MM/DD/YYYY) Date that the delinquency valuation amount
was completed by vendor or property
management company.
Delinquency flag VARCHAR2(2) Y= 90+ delinq. Not in FC, Bky or Loss mit Servicer defined indicator that identifies
N=Less than 90 days delinquent that the loan is delinquent but is not
involved in loss mitigation, foreclosure,
bankruptcy or REO.
Foreclosure flag VARCHAR2(2) Y=Active foreclosure Servicer defined indicator that identifies
N=No active foreclosure that the loan is involved in foreclosure
proceedings.
Corporate expense balance NUMBER(10,2) Total of all cumulative expenses advanced by
the servicer for non-escrow expenses such as
but not limited to: FC fees and costs,
bankruptcy fees and costs, property
preservation and property inspections.
Foreclosure attorney DATE(MM/DD/YYYY) Actual date that the loan was referred to
referral date local counsel to begin foreclosure
proceedings.
Exh. D-2-2
DATA FIELD FORMAT DATA DESCRIPTION
---------- ------ ----------------
Foreclosure valuation NUMBER(15,2) Value obtained during the foreclosure
amount process. Usually as a result of a BPO and
typically used to calculate the bid.
Foreclosure valuation date DATE(MM/DD/YYYY) Date that foreclosure valuation amount was
completed by vendor or property management
company.
Foreclosure valuation VARCHAR2(80) BPO= Broker's Price Opinion Name of vendor or management company that
source Appraisal=Appraisal provided the foreclosure valuation amount.
FHA 27011A transmitted DATE(MM/DD/YYYY) Actual date that the FHA 27011A claim was
date submitted to HUD.
FHA 27011 B transmitted DATE(MM/DD/YYYY) Actual date that the FHA 27011B claim was
date submitted to HUD.
VA LGC/ FHA Case number VARCHAR2(15) Number that is assigned individually to the
loan by either HUD or VA at the time of
origination. The number is located on the
Loan Guarantee Certificate (LGC) or the
Mortgage Insurance Certificate (MIC).
FHA Part A funds received DATE(MM/DD/YYYY) Actual date that funds were received from HUD
date as a result of transmitting the 27011A claim.
Foreclosure actual sale DATE(MM/DD/YYYY) Actual date that the foreclosure sale was
date held.
Servicer loan number VARCHAR2(15) Individual number that uniquely identifies
loan as defined by servicer.
Loan type VARCHAR2(2) 1=FHA Residential Type of loan being serviced generally defined
2=VA Residential by the existence of certain types of
3=Conventional w/o PMI insurance. (ie: FHA, VA, conventional
4=Commercial insured, conventional uninsured, SBA, etc.)
5=FHA Project
6=Conventional w/PMI
7=HUD 235/265
8=Daily Simple Interest Loan
9=Farm Loan
U=Unknown
S=Sub prime
Loss mit approval date DATE(MM/DD/YYYY) The date determined that the servicer and
mortgagor agree to pursue a defined loss
mitigation alternative.
Loss mit flag VARCHAR2(2) Y= Active loss mitigation Servicer defined indicator that identifies
N=No active loss mitigation that the loan is involved in completing
aloss mitigation alternative.
Loss mit removal date DATE(MM/DD/YYYY) The date that the mortgagor is denied loss
mitigation alternatives or the date that the
loss mitigation alternative is completed
resulting in a current or liquidated loan.
Exh. D-2-3
DATA FIELD FORMAT DATA DESCRIPTION
---------- ------ ----------------
Loss mit type VARCHAR2(2) L= Loss Mitigation The defined loss mitigation alternative
LT=Litigation pending identified on the loss mit approval date.
NP=Pending non-performing sale
CH= Charge off
DI= Deed in lieu
FB= Forbearance plan
MO=Modification
PC=Partial claim
SH=Short sale
VA=VA refunding
Loss mit value NUMBER(10,2) Value obtained typically from a BPO prior to
foreclosure sale intended to aid in the
completion of loss mitigation activity.
Loss mit value date DATE(MM/DD/YYYY) Name of vendor or management company that
provided the loss mitigation valuation
amount.
Loss mit value source VARCHAR2(15) BPO= Broker's Price Opinion Date that the lostt mitigation valuation
Appraisal=Appraisal amount was completed by vendor or property
management company.
MI certificate number VARCHAR2(15) A number that is assigned individually to the
loan by the PMI company at the time of
origination. Similar to the VA LGC/FHA Case
Number in purpose.
LPMI Cost NUMBER(7,7) The current premium paid to the PMI company
for Lender Paid Mortgage Insurance.
Occupancy status VARCHAR2(1) O=Owner occupied T=Tenant occupied The most recent status of the property
U=Unknown V=Vacant regarding who if anyone is occupying the
property. Typically a result of a routine
property inspection.
First Vacancydate/ DATE(MM/DD/YYYY) The date that the most recent occupancy
Occupancy status date status was determined. Typically the date
of the most recent property inspection.
Original loan amount NUMBER(10,2) Amount of the contractual obligations (ie:
note and mortgage/deed of trust).
Original value amount NUMBER(10,2) Appraised value of property as of origination
typically determined through the appraisal
process.
Origination date DATE(MM/DD/YYYY) Date that the contractual obligations (ie:
note and mortgage/deed of trust) of the
mortgagor was executed.
FHA Part B funds received DATE(MM/DD/YYYY) Actual date that funds were received from HUD
date as a result of transmitting the 27011B claim.
Post petition due date DATE(MM/DD/YYYY) The post petition due date of a loan
involved in a chapter 13 bankruptcy.
Exh. D-2-4
DATA FIELD FORMAT DATA DESCRIPTION
---------- ------ ----------------
Property condition VARCHAR2(2) 1=Excellent 2=Good Physical condition of the property as most
3=Average 4=Fair recently reported to the servicer by vendor
5=Poor 6=Very poor or property management company.
Property type VARCHAR2(2) 1=Single family Type of property secured by mortgage such
2=Townhouse as: single family, 2-4 unit, etc.
3=Condo
4=Multifamily
5=Other
6=Prefabricated
7=Mobile home
24= 2-4 family
A=Church
B=Commercial
C=Land only
CT=Condotel
D=Farm
M=Manufactured housing
MU=Mixed use
O=Co-op
P=PUD
R=Row house
U=Unknown
Reason for default VARCHAR2(3) 001=Death of principal mtgr Cause of delinquency as identified by
02=Illness of principal mtgr mortgagor.
003=Illness of mtgr's family member
004=Death of mtgr's family member
005=Marital difficulties
006=Curtailment of income
007=Excessive obligations
008=Abandonment of property
009=Distant employee transfer
011=Property problem
012=Inability to sell property
013=Inability to rent property
014=Military service
015=Other
016=Unemployment
017=Business failure
019=Casualty loss
022=Energy-Environment costs
023= Servicing problems
026= Payment adjustment
027=Payment dispute
029=Transfer ownership pending
030=Fraud
031=Unable to contact borrower
INC=Incarceration
REO repaired value NUMBER(10,2) The projected value of the property that is
adjusted from the "as is" value assuming
necessary repairs have been made to the
property as determined by the vendor/property
management company.
REO list price adjustment NUMBER(15,2) The most recent listing/pricing amount as
amount updated by the servicer for REO properties.
REO list price adjustment DATE(MM/DD/YYYY) The most recent date that the servicer date
advised the agent to make an adjustment to
the REO listing price.
REO value (as is) NUMBER(10,2) The value of the property without making any
repairs as determined by the vendor/property
management company.
REO actual closing date DATE(MM/DD/YYYY) The actual date that the sale of the REO
property closed escrow.
Exh. D-2-5
DATA FIELD FORMAT DATA DESCRIPTION
---------- ------ ----------------
REO flag VARCHAR2(7) Y=Active REO N=No active REO Servicer defined indicator that identifies
that the property is now Real Estate Owned.
REO original list date DATE(MM/DD/YYYY) The initial/first date that the property was
listed with an agent as an REO.
REO original list price NUMBER(15,2) The initial/first price that was used to list
the property with an agent as an REO.
REO net sales proceeds NUMBER(10,2) The actual REO sales price less closing
costs paid. The net sales proceeds are
identified within the HUD1 settlement
statement.
REO sales price NUMBER(10,2) Actual sales price agreed upon by both the
purchaser and servicer as documented on the
HUD1 settlement statement.
REO scheduled close date DATE(MM/DD/YYYY) The date that the sale of the REO property is
scheduled to close escrow.
REO value date DATE(MM/DD/YYYY) Date that the vendor or management company
completed the valuation of the property
resulting in the REO value (as is).
REO value source VARCHAR2(15) BPO= Broker's Price Opinion Name of vendor or management company that
Appraisal=Appraisal provided the REO value (as is).
Repay first due date DATE(MM/DD/YYYY) The due date of the first scheduled payment
due under a forbearance or repayment plan
agreed to by both the mortgagor and servicer.
Repay next due date DATE(MM/DD/YYYY) The due date of the next outstanding payment
due under a forbearance or repayment plan
agreed to by both the mortgagor and
servicer.
Repay plan DATE(MM/DD/YYYY) The servicer defined date upon which the
broken/reinstated/closed servicer considers that the plan is no
date longer in effect as a result of plan
completion or mortgagor's failure to remit
payments as scheduled.
Repay plan created date DATE(MM/DD/YYYY) The date that both the mortgagor and servicer
agree to the terms of a forebearance or
repayment plan.
SBO loan number NUMBER(9) Individual number that uniquely identifies
loan as defined by Aurora Master Servicing.
Exh. D-2-6
DATA FIELD FORMAT DATA DESCRIPTION
---------- ------ ----------------
Escrow balance/advance NUMBER(10,2) The positive or negative account balance
balance that is dedicated to payment of hazard
insurance, property taxes, MI, etc. (escrow
items only)
Title approval letter DATE(MM/DD/YYYY) The actual date that the title approval was
received date received as set forth in the HUD title
approval letter.
Title package HUD/VA date DATE(MM/DD/YYYY) The actual date that the title package was
submitted to either HUD or VA.
VA claim funds received DATE(MM/DD/YYYY) The actual date that funds were received by
date the servicer from the VA for the expense
claim submitted by the servicer.
VA claim submitted date DATE(MM/DD/YYYY) The actual date that the expense claim was
submitted by the servicer to the VA.
VA first funds received NUMBER(15,2) The amount of funds received by the servicer
amount from VA as a result of the specified
bid.
VA first funds received DATE(MM/DD/YYYY) The date that the funds from the specified
date bid were received by the servicer from the
VA.
VA XXX submitted date DATE(MM/DD/YYYY) Actual date that the Notice of Election to
Convey was submitted to the VA.
Zip Code VARCHAR2(5) US postal zip code that corresponds to
property location.
FNMA Delinquency status VARCHAR2(3) 09=Forbearance The code that is electronically reported to
code 17=Preforeclosure sale FNMA by the servicer that reflects the
24=Drug seizure current defaulted status of a loan. (ie: 65,
26=Refinance 67, 43 or 44)
27=Assumption
28=Modification
29=Charge-off
30=Third-party sale
31=Probate
32=Military indulgence
43=Foreclosure
44=Deed-in-lieu
49=Assignment
61=Second lien considerations
62=VA no-bid
63=VA Refund
64=VA Buydown
65=Ch. 7 bankruptcy
66=Ch. 11 bankruptcy
67=Ch. 13 bankruptcy
Exh. D-2-7
DATA FIELD FORMAT DATA DESCRIPTION
---------- ------ ----------------
FNMA delinquency reason VARCHAR2(3) 001=Death of principal mtgr The code that is electronically reported to
code 002=Illness of principal mtgr FNMA by the servicer that describes the
003=Illness of mtgr's family member circumstance that appears to be the primary
004=Death of mtgr's family member contributing factor to the delinquency.
005=Marital difficulties
006=Curtailment of income
007=Excessive obligations
008=Abandonment of property
009=Distant employee transfer
011=Property problem
012=Inability to sell property
013=Inability to rent property
014=Military service
015=Other
016=Unemployment
017=Business failure
019=Casualty loss
022=Energy-Environment costs
023=Servicing problems
026=Payment adjustment
027=Payment dispute
029=Transfer ownership pending
030=Fraud
031=Unable to contact borrower
INC=Incarceration
Suspense balance NUMBER(10,2) Money submitted to the servicer, credited to
the mortgagor's account but not allocated to
principal, interest, escrow, etc.
Restricted escrow balance NUMBER(10,2) Money held in escrow by the mortgage company
through completion of repairs to property.
Investor number NUMBER(10,2) Unique number assigned to a group of loans in
the servicing system.
Exh. D-2-8
EXHIBIT E
FORM OF CERTIFICATION TO BE PROVIDED TO THE DEPOSITOR, THE TRUSTEE AND THE
MASTER SERVICER BY THE SERVICER
February __, 2005
Structured Asset Securities Corporation
000 Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Mortgage Finance SARM 2005-4
[__________]
Attention: [_________]
Aurora Loan Services LLC
000 Xxxxxxxxx Xxxxx Xxxxx
Xxxxxxxxx, XX 00000
Mail Stop Code - 3195
Attn: E. Xxxx Xxxxxxxxxx - Master Servicing
(SARM 2005-4)
Reference is made to the Servicing Agreement dated as of February 1, 2005
(the "Agreement"), by and among Xxxxxx Brothers Holdings Inc., Aurora Loan
Services LLC (the "Servicer," in such capacity and the "Master Servicer," in
such capacity), and acknowledged by HSBC Bank USA, National Association, as
Trustee (the "Trustee"). I, [identify the certifying individual], a [title] of
the Servicer, hereby certify to the Trustee, the Master Servicer and Structured
Asset Securities Corporation (the "Depositor"), and their respective officers,
directors and affiliates, and with the knowledge and intent that they will rely
upon this certification, that:
1. I have reviewed the information required to be delivered to the
Master Servicer pursuant to the Agreement (the "Servicing
Information").
2. Based on my knowledge, the Servicing Information does not contain
any material untrue information or omit to state information
necessary to make the Servicing Information, in light of the
circumstances under which such information was provided, not
misleading as of the date of this certification;
3. Based on my knowledge, the Servicing Information has been provided
to the Master Servicer when and as required under the Agreement; and
4. I am responsible for reviewing the activities performed by the
Servicer under the Agreement, and based upon my knowledge and the
review required under the Agreement, and except as disclosed in
writing to you on or prior to the date of this certification either
in the accountants' report required under the Agreement or in
disclosure a copy of which is attached hereto, the Servicer has, as
of the date of this certification, fulfilled its obligations under
this Agreement.
AURORA LOAN SERVICES LLC
By:
----------------------------------
Name:
Title:
Exh. E-1
EXHIBIT F
ASSIGNMENT AND ASSUMPTION AGREEMENT
[Intentionally Omitted]
Exh. F
EXHIBIT G
POOL 2 MORTGAGE LOANS
[Intentionally Omitted]
Exh. G
