EXHIBIT 10.10
AMENDMENT NO. 3
TO MASTER REPURCHASE AGREEMENT
AMENDMENT NO. 3, dated as of April 19, 2006 (this "Amendment"), to
that certain Master Repurchase Agreement, dated as of December 12, 2005 (as
previously amended, restated, supplemented or otherwise modified, the "Existing
Repurchase Agreement"; as modified hereby and as further amended, restated,
supplemented or otherwise modified and in effect from time to time, the
"Repurchase Agreement"), by and among NC CAPITAL CORPORATION, NEW CENTURY
MORTGAGE CORPORATION, NC ASSET HOLDING, L.P. (successor by conversion to NC
Residual II Corporation), HOME123 CORPORATION and NEW CENTURY CREDIT CORPORATION
(collectively, the "Sellers", each, a "Seller"), XXXXXX XXXXXXX BANK ("MSB") and
XXXXXX XXXXXXX MORTGAGE CAPITAL INC. ("MSMCI", together with MSB, collectively,
the "Buyers", each, a "Buyer", and as the agent for the Buyers, in such
capacity, the "Agent"). Capitalized terms used but not otherwise defined herein
shall have the meanings given to them in the Existing Repurchase Agreement.
Unless otherwise stated, all article and section references used herein refer to
the corresponding parts of the Existing Repurchase Agreement.
RECITALS
The Sellers, the Buyers and the Agent are parties to the Existing
Repurchase Agreement.
The Sellers, the Buyers and the Agent have agreed, subject to the
terms and conditions hereof, that the Existing Repurchase Agreement shall be
modified as set forth in this Amendment.
NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Sellers, the Buyers and the Agent hereby agree as follows:
SECTION 1. Amendments. The Existing Repurchase Agreement is hereby
amended as follows:
1.1 The definition of "Applicable Pricing Spread" in Section 1.01 is
hereby modified by deleting the table set forth therein in its entirety and
inserting the following table in lieu thereof:
Type of Eligible Mortgage Loan Applicable Pricing Spread
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Unseasoned Mortgage Loan 0.50%
Performing Aged Loan 0.90%
NINA Mortgage Loan 0.50%
Second Lien Mortgage Loan 0.50%
30+ Delinquent Mortgage Loan 1.00%
60+ Delinquent Mortgage Loan 1.00%
Defaulted Mortgage Loan 1.45%
Wet-Ink Mortgage Loan 0.50%
Discretionary Mortgage Loan the applicable pricing spread specified by the
Agent one (1) Business Day prior to the
applicable Purchase Date
1.2 The definition of "Applicable Purchase Rate" in Section 1.01 is
hereby modified by deleting the table set forth therein in its entirety and
inserting the following table in lieu thereof:
Type of Eligible Mortgage Loan Applicable Purchase Rate
------------------------------ ------------------------
Unseasoned Mortgage Loan 98%
Performing Aged Loan 95%
NINA Mortgage Loan 98%
Second Lien Mortgage Loan 98%
30+ Delinquent Mortgage Loan 85%
60+ Delinquent Mortgage Loan 75%
Wet-Ink Mortgage Loan 98%
Defaulted Mortgage Loan the applicable BPO Percentage
Discretionary Mortgage Loan the applicable percentage specified by the
Agent one (1) Business Day prior to the
applicable Funding Date
1.3 Section 1.01 is hereby modified by inserting in proper
alphabetical order the following new defined terms:
"'Eligible NINA Mortgage Loan' shall mean a NINA Mortgage Loan which
(i) is underwritten in accordance with Sellers' NINA Mortgage Loan Program
Guidelines; (ii) has a minimum FICO score of 640; and (iii) is identified
as a NINA Mortgage Loan on the Mortgage Loan Data File."
"'NINA Mortgage Loan' shall mean an Eligible Mortgage Loan with
respect to which no documentation or verification as to the type or amount
of a Mortgagor's income or personal assets is required in order to qualify
for the loan."
"'NINA Mortgage Loan Program Guidelines' shall mean the underwriting
guidelines attached as Exhibit K hereto, as the same may be revised from
time to time in accordance with the terms hereof."
1.4 The definition of "Recognized Value" in Section 1.01 is hereby
modified by inserting the following subpart after subpart (a)(xvi):
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"'(xvii) the aggregate unpaid principal balance of the Purchased Loans
which are Eligible NINA Mortgage Loans shall at no time exceed 5% of the
Maximum Amount; and"
1.5 The definition of "Underwriting Guidelines" in Section 1.01 is
hereby modified by deleting the definition in its entirety and inserting the
following definition in lieu thereof:
"'Underwriting Guidelines' shall mean, collectively, the underwriting
guidelines attached as Exhibit F hereto and the NINA Mortgage Loan Program
Guidelines, each as may be revised from time to time in accordance with the
terms hereof."
1.6 Inserting the new Exhibit K attached hereto.
SECTION 2. Conditions Precedent. This Amendment shall become effective
on the first date (the "Amendment Effective Date") on which all of the following
conditions precedent shall have been satisfied:
2.1 Delivered Documents. On the Amendment Effective Date, the Agent
shall have received all of the following documents, each of which shall be
satisfactory to the Agent in form and substance:
(a) Amendment. This Amendment, executed and delivered by a duly
authorized officer of each of the Sellers, the Buyers and the Agent;
(b) Other Documents. Such other documents as the Agent or counsel to
the Agent may reasonably request.
2.2 No Default. On the Amendment Effective Date, (i) each Seller shall
be in compliance with all of the terms and provisions set forth in the Existing
Repurchase Agreement on its part to be observed or performed, (ii) all of the
representations and warranties made and restated by each Seller pursuant to
Section 3 of this Amendment shall be true and complete on and as of such date
with the same force and effect as if made on and as of such date and (iii) no
Default or Event of Default shall have occurred and be continuing on such date.
SECTION 3. Representations and Warranties. Each Seller hereby
represents and warrants to the Agent and the Buyers that it is in compliance
with all of the terms and provisions set forth in the Repurchase Documents on
its part to be observed or performed and that no Default or Event of Default has
occurred or is continuing. Each Seller hereby confirms and reaffirms the
representations and warranties contained in Section 6 of the Repurchase
Agreement.
SECTION 4. Limited Effect. Except as expressly modified by this
Amendment, the Existing Repurchase Agreement shall continue to be, and shall
remain, in full force and effect in accordance with its terms; provided,
however, that upon the Amendment Effective Date, all references therein and
herein to the "Repurchase Documents" shall be deemed to include, in any event,
this Amendment and each reference to the Repurchase Agreement in any of the
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Xxxxxxxxxx Documents shall be deemed to be a reference to the Existing
Repurchase Agreement as modified hereby.
SECTION 5. Counterparts. This Amendment may be executed by each of the
parties hereto on any number of separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
instrument. Delivery of an executed signature page of this Amendment in Portable
Document Format (PDF) or by facsimile transmission shall be effective as
delivery of an executed original counterpart of this Amendment.
SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
[SIGNATURES FOLLOW]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed and delivered as of the day and year first above written.
SELLERS
NC CAPITAL CORPORATION
By: /s/ Xxxxx Xxxxx
------------------------------------
Name: Xxxxx Xxxxx
Title: President
NEW CENTURY MORTGAGE CORPORATION
By: /s/ Xxxxx Xxxxx
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Name: Xxxxx Xxxxx
Title: Executive Vice President
NC ASSET HOLDING, L.P.
By: NC DELTEX, LLC, its general partner
By: NC Capital Corporation, its sole
member and manager
By: /s/ Xxxxx Xxxxx
------------------------------------
Name: Xxxxx Xxxxx
Title: Executive Vice President
HOME123 CORPORATION
By: /s/ Xxxxx Xxxxx
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Name: Xxxxx Xxxxx
Title: Executive Vice President
NEW CENTURY CREDIT CORPORATION
By: /s/ Xxxxx Xxxxx
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Name: Xxxxx Xxxxx
Title: President
XXXXXX XXXXXXX BANK,
as a Buyer
By: /s/ Xxxxxxx Xxxxxxx
------------------------------------
Name: Xxxxxxx Xxxxxxx
Title: XX
XXXXXX XXXXXXX MORTGAGE CAPITAL INC.,
as a Buyer and as the Agent
By: /s/ Xxxxxx Xxxxxxxxx
------------------------------------
Name: Xxxxxx Xxxxxxxxx
Title: VP
