EXHIBIT 99.5
AMENDMENT NO. 4
TO THE MASTER MORTGAGE LOAN PURCHASE AGREEMENT
DATED AS OF APRIL 1, 1998
BETWEEN
RWT HOLDINGS, INC.
AND
XXXXXXX XXXXX CREDIT CORPORATION
This Amendment to the Master Mortgage Loan Purchase Agreement, dated as
of April 1, 1998 (the "Original Purchase Agreement") between RWT Holdings, Inc.
("Purchaser") and Xxxxxxx Xxxxx Credit Corporation ("Seller"), is made this 29th
day of July, 2003.
WHEREAS, Purchaser and Seller entered into the Original Purchase
Agreement for the purposes of establishing between them certain rights and
responsibilities as to the sale of certain residential mortgage loans (the
"Mortgage Loans") from time to time; and
WHEREAS, Purchaser and Seller entered into an amendment to the Original
Purchase Agreement dated as of December 14, 1999 (the "Amendment No. 1"); and
WHEREAS, Purchaser and Seller entered into a second amendment to the
Original Purchase Agreement dated as of September 1, 2002 (the "Amendment No.
2"); and
WHEREAS, Purchaser and Seller entered into a third amendment to the
Original Purchase Agreement dated as of June 26, 2003 (the "Amendment No. 3,"
and together with the Original Purchase Agreement, Amendment No. 1 and Amendment
No. 2, the "Master Purchase Agreement"); and
WHEREAS, Purchaser and Seller wish to further amend the Master Purchase
Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Purchaser and Seller agree as
follows:
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The Master Purchase Agreement between Purchaser and Seller is hereby
amended as follows:
1. Section 7 is modified by adding the following paragraphs:
However, from and after the Closing Date (as defined in the
Trust Agreement dated July 1, 2003, by and between Xxxxxxx Xxxxx
Mortgage Investors, Inc. and Xxxxx Fargo Bank Minnesota, National
Association (the "Trust Agreement")), solely in connection with the
MLCC 2003-D transaction, Purchaser and Seller hereby agree that each
Mortgage Loan purchased on such Closing Date under the Master Purchase
Agreement by Purchaser (the "MLCC 2003-D Loans"), will be serviced and
administered not by Seller but by Cendant Mortgage Corporation
("Cendant") pursuant to the terms of the Mortgage Loan Flow Purchase,
Sale & Servicing Agreement, dated as of August 1, 2002, between
Purchaser and Cendant, as amended or modified to the date hereof (the
"Flow Purchase and Servicing Agreement") and the Additional Collateral
Servicing Agreement, dated as of August 1, 2002, between Purchaser and
Cendant, as amended or modified to the date hereof (the "Additional
Collateral Servicing Agreement," and together with the Flow Purchase
and Servicing Agreement, the "Cendant Agreements"). Capitalized terms
used but not defined herein shall have the meanings ascribed to them in
the Trust Agreement.
From and after the date hereof (i) the Seller and Cendant
shall recognize Purchaser as the owner of the MLCC 2003-D Mortgage
Loans and (ii) Cendant will administer and service the MLCC 2003-D
Mortgage Loans in accordance with the Cendant Agreements as if the MLCC
2003-D Mortgage Loans had been sold to the Purchaser by Cendant
pursuant to the Cendant Agreements. It is the intention of the
Purchaser, the Seller and Cendant that to the extent of the MLCC 2003-D
Mortgage Loans purchased under the Master Purchase Agreement in
connection with the MLCC 2003-D transaction and serviced pursuant to
the Cendant Agreements, the Cendant Agreements shall be binding upon
and for the benefit of the respective successors and assigns of the
parties hereto; provided, however, that, with respect to the Additional
Collateral Mortgage Loans:
(i) Seller, at its own cost and expense, shall administer
the Additional Collateral and the Control Agreement for the benefit of
Purchaser (i) in a prudent and non-negligent manner and in accordance
with the procedures it employs to administer Securities Accounts for
its own benefit (as the same may be amended from time to time); (ii) in
accordance with the terms of the related Pledge Agreements, the
applicable Mortgage Loan Documents and this Agreement; and (iii) in
accordance with applicable law;
(ii) Seller shall be released from its obligations to
administer the Additional Collateral, upon termination of the related
Pledge Agreement. Purchaser Acknowledges that it shall no longer be
afforded coverage under the terms and provisions of the Surety Bond as
to any particular Additional Collateral
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Mortgage Loan at such time as Seller's obligation to administer such
Additional Collateral Mortgage Loan terminates pursuant to the terms of
the related Pledge Agreement;
(iii) Seller may, without the consent of Purchaser, amend
or modify a Mortgage 100(sm) Pledge Agreement or a Parent Power(R)
Agreement in any nonmaterial respect to reflect administrative or
account changes; and
(iv) When a "Loss," as defined in the related Pledge
Agreement, is determined, the "cash collateral" necessary to satisfy
the Loss up to the Maximum Amount (as defined in the Pledge Agreement)
shall be sent to Cendant to apply in accordance with the Mortgage Loan
Documents and held in accordance with the Cendant Agreements.
2. With respect to the MLCC 2003-D Mortgage Loans only, Section
5(b) is hereby deleted in its entirety and replaced by the following:
Seller hereby makes the representations and warranties to
Purchaser, as to each MLCC 2003-D Mortgage Loan, set forth in Exhibit I
hereto, as of the Closing Date or such other date as may be referred to
therein.
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IN WITNESS WHEREOF, Xxxxxxx Xxxxx Credit Corporation and RWT Holdings,
Inc. have caused this Amendment No. 4 to the Master Purchase Agreement to be
executed by their respective officers thereunto duly authorized this 29th day of
July, 2003.
RWT HOLDINGS, INC.
By: ________________________________________
Name: ______________________________________
Title: _____________________________________
XXXXXXX XXXXX CREDIT CORPORATION
By: ________________________________________
Name: ______________________________________
Title: _____________________________________
The foregoing Agreement
is hereby confirmed and accepted by:
CENDANT MORTGAGE CORPORATION
By: ________________________________
Name:
Title:
Address:
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EXHIBIT I
MORTGAGE LOAN REPRESENTATIONS AND WARRANTIES
OF THE SELLER
The Seller hereby represents and warrants to the Purchaser, as to each
Mortgage Loan, as of the Closing Date as follows:
(a) The information set forth in the Mortgage Loan Schedule is true and
correct in all material respects as of the Cut-off Date;
(b) As of the related Closing Date, the Mortgage Loan is not delinquent
in payment more than 30 days and the Mortgage Loan has not been dishonored;
there are no material defaults under the terms of the Mortgage Loan; the Seller
has not advanced funds, or induced, solicited or knowingly received any advance
of funds from a party other than the owner of the Mortgaged Property subject to
the Mortgage, directly or indirectly, for the payment of any amount required by
the Mortgage Loan;
(c) To the best of the Seller's knowledge, with respect to those
Mortgage Loans as to which the Mortgagors are required to deposit funds into an
escrow account for payment of taxes, assessments, insurance premiums and similar
items as they become due, there are no delinquent taxes, ground rents, water
charges, sewer rents, assessments or other outstanding charges which constitute
a lien on the related Mortgaged Property, and all escrow deposits have been
collected, are under the control of the Servicer, and have been applied to the
payment of such items in a timely fashion, in accordance with such Mortgage. No
escrow deposits or escrow payments or other charges or payments due the Servicer
have been capitalized under the related Mortgage or Mortgage Note. With respect
to those Mortgage Loans for which escrow deposits are not required, to the best
of the Seller's knowledge, there are no delinquent taxes or other outstanding
charges affecting the related Mortgaged Property which constitute a lien on the
related Mortgaged Property;
(d) The terms of the Mortgage Note and the Mortgage have not been
impaired, waived, altered or modified in any respect, except by written
instruments contained in the Mortgage File, approved, if necessary, by the
insurer under any Primary Mortgage Insurance Policy and recorded in all places
necessary to maintain the first priority of the lien, the substance of which
waiver, alteration or modification is reflected on the Mortgage Loan Schedule.
No Mortgagor has been released, in whole or in part, except in connection with
an assumption agreement which assumption agreement is part of the Mortgage File
and the terms of which are reflected in the Mortgage Loan Schedule;
(e) Neither the Mortgage Note nor the Mortgage is subject to any right
of rescission, set-off, counterclaim or defense, including the defense of usury,
nor will the operation of any of the terms of the Mortgage Note and the
Mortgage, or the exercise of any right thereunder, render the Mortgage
unenforceable, in whole or in part, or subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury
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and to the best of the Seller's knowledge, no such right of rescission, set-off,
counterclaim or defense has been asserted by any Person with respect thereto;
(f) All buildings upon the Mortgaged Property are required to be
insured by a generally acceptable insurer against loss by fire, hazards of
extended coverage and such other hazards as are customarily included in extended
coverage in the area where the Mortgaged Property is located, pursuant to
standard hazard insurance policies in an amount which is equal to the lesser of
(A) the replacement cost of the improvements securing such Mortgage Loan or (B)
the principal balance owing on such Mortgage Loan. To the best knowledge of the
Seller, all such standard hazard policies are in effect. On the date of
origination, such standard hazard policies contained a standard mortgagee clause
naming the Seller or the originator of the Mortgage Loan and their respective
successors in interest as mortgagee and, to the best knowledge of the Seller,
such clause is still in effect and, to the best of the Seller's knowledge, all
premiums due thereon have been paid. If the Mortgaged Property is located in an
area identified by the Federal Emergency Management Agency as having special
flood hazards under the National Flood Insurance Act of 1994, as amended, such
Mortgaged Property is covered by flood insurance in the amount required under
the National Flood Insurance Act of 1994. The Mortgage obligates the Mortgagor
thereunder to maintain all such insurance at Mortgagor's cost and expense, and
on the Mortgagor's failure to do so, authorizes the holder of the Mortgage to
maintain such insurance at Mortgagor's cost and expense and to seek
reimbursement therefor from the Mortgagor;
(g) To the best of the Seller's knowledge, at the time of origination
of such Mortgage Loan and thereafter, all requirements of any federal, state or
local law including, without limitation, usury, truth-in-lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity or
disclosure laws required to be complied with by the Seller as the originator of
the Mortgage Loan and applicable to the Mortgage Loan have been complied with in
all material respects;
(h) The Mortgage has not been satisfied as of the Closing Date,
canceled or subordinated, in whole, or rescinded, and the Mortgaged Property has
not been released from the lien of the Mortgage, in whole or in part (except for
a release that does not materially impair the security of the Mortgage Loan or a
release the effect of which is reflected in the Loan-to-Value Ratio for the
Mortgage Loan as set forth in the Mortgage Loan Schedule), nor to the best of
the Seller's knowledge has any instrument been executed that would effect any
such release, cancellation, subordination or rescission;
(i) Ownership of the Mortgaged Property is held in fee simple or a
leasehold estate. With respect to Mortgage Loans that are secured by a leasehold
estate, (i) the lease is valid, in full force and effect, and conforms to all of
FNMA's requirements for leasehold estates; (ii) all rents and other payments due
under the lease have been paid; (iii) the lessee is not in default under any
provision of the lease; (iv) the term of the lease exceeds the maturity date of
the related Mortgage Loan by at least five (5) years; and (v) the terms of the
lease provide a Mortgagee with an opportunity to cure any defaults. Except as
permitted by the fourth sentence of this paragraph (i), the Mortgage is a valid,
subsisting and enforceable first lien on the Mortgaged Property, including all
buildings
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on the Mortgaged Property and all installations and mechanical, electrical,
plumbing, heating and air conditioning systems affixed to such buildings, and
all additions, alterations and replacements made at any time with respect to the
foregoing securing the Mortgage Note's original principal balance. The Mortgage
and the Mortgage Note do not contain any evidence on their face of any security
interest or other interest or right thereto. Such lien is free and clear of all
adverse claims, liens and encumbrances having priority over the first lien of
the Mortgage subject only to (1) the lien of non-delinquent current real
property taxes and assessments not yet due and payable, (2) covenants,
conditions and restrictions, rights of way, easements and other matters of the
public record as of the date of recording which are acceptable to mortgage
lending institutions generally, or which are specifically referred to in the
lender's title insurance policy delivered to the originator of the Mortgage Loan
and either (A) which are referred to or otherwise considered in the appraisal
made for the originator of the Mortgage Loan, or (B) which do not in the
aggregate adversely affect the appraised value of the Mortgaged Property as set
forth in such appraisal, and (3) other matters to which like properties are
commonly subject which do not in the aggregate materially interfere with the
benefits of the security intended to be provided by the Mortgage or the use,
enjoyment, value or marketability of the related Mortgaged Property. Any
security agreement, chattel mortgage or equivalent document related to and
delivered in connection with the Mortgage Loan establishes and creates a valid,
subsisting and enforceable first lien and first priority security interest on
the property described therein. With respect to each Co-op Loan, the security
instruments create a valid, enforceable and subsisting first priority security
interest in the Co-op Lease and Co-op Stock securing the related Mortgage Note
subject to only to (a) the lien of the related cooperative for unpaid
assessments representing the Mortgagor's pro rata share of payments for a
blanket mortgage, if any, current and future real property taxes, insurance
premiums, maintenance fees and other assessments to which like collateral is
commonly subject, and (b) other matters to which the collateral is commonly
subject which do not materially interfere with the benefits of the security
intended to be provided; provided, however, that the related Co-op Loan may be
subordinated or otherwise subject to the lien of a Mortgage on the cooperative
building;
(j) The Mortgage Note is not subject to a third party's security
interest or other rights or interest therein;
(k) The Mortgage Note and the related Mortgage are genuine and each is
the legal, valid and binding obligation of the maker thereof, enforceable in
accordance with its terms subject to bankruptcy, insolvency and other laws of
general application affecting the rights of creditors. All parties to the
Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note and the Mortgage. The Mortgage
Note and the Mortgage have been duly and properly executed by such parties. The
proceeds of the Mortgage Loan have been fully disbursed and there is no
requirement for future advances thereunder, and any and all requirements as to
completion of any on-site or off-site improvements and as to disbursements of
any escrow funds therefor have been complied with;
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(l) Seller has good title to, and the full right to transfer and sell,
the Mortgage Loan free and clear of any encumbrance, equity, lien, pledge,
charge, claim or security interest, including, to the best knowledge of the
Seller, any lien, claim or other interest arising by operation of law;
(m) To the best of the Seller's knowledge, each Mortgage Loan is
covered by an ALTA lender's title insurance policy or other generally acceptable
form of policy or insurance acceptable to FNMA or FHLMC, issued by a title
insurer acceptable to FNMA or FHLMC and qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to the
exceptions contained in paragraph (ix)(1) (2) and (3) above) the Seller, its
successors and assigns, as to the first priority lien of the Mortgage in the
original principal amount of the Mortgage Loan. To the best of the Seller's
knowledge, the Seller is the sole insured of such lender's title insurance
policy, such title insurance policy has been duly and validly endorsed to the
Purchaser or the assignment to the Purchaser of the Seller's interest therein
does not require the consent of or notification to the insurer and such lender's
title insurance policy is in full force and effect and will be in full force and
effect upon the consummation of the transactions contemplated by this Agreement.
To the best of the Seller's knowledge, no claims have been made under such
lender's title insurance policy, and no prior holder of the related Mortgage has
done, by act or omission, anything which would impair the coverage of such
lender's title insurance policy;
(n) To the best of the Seller's knowledge, there is no default, breach,
violation or event of acceleration existing under the Mortgage or the related
Mortgage Note and no event which, with the passage of time or with notice and
the expiration of any grace or cure period, would constitute a default, breach,
violation or event permitting acceleration, except for any Mortgage Loan payment
which is not late by more than 30 days, and the Seller has not waived any
default, breach, violation or event permitting acceleration;
(o) To the best of the Seller's knowledge, there are no mechanics' or
similar liens or claims which have been filed for work, labor or material (and,
to the best of the Seller's knowledge, no rights are outstanding that under law
could give rise to such lien) affecting the related Mortgaged Property which are
or may be liens prior to, or equal or coordinate with, the lien of the related
Mortgage;
(p) To the best of the Seller's knowledge, all improvements subject to
the Mortgage, lay wholly within the boundaries and building restriction lines of
the Mortgaged Property (and wholly within the project with respect to a
condominium unit) and no improvements on adjoining properties encroach upon the
Mortgaged Property except those which are insured against by the title insurance
policy referred to in paragraph (xiii) above and all improvements on the
property comply with all applicable zoning and subdivision laws and ordinances;
(q) To the best of the Seller's knowledge, each Mortgage Loan was
originated by the Seller or by a savings association, a savings bank, a
commercial bank or similar banking institution that is supervised and examined
by a Federal or state banking authority, a mortgagee approved by the Secretary
of HUD pursuant to Section 203 and
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211 of the National Housing Act, or a FNMA- or FHLMC-approved seller. To the
best of the Seller's knowledge, each Mortgage Loan was underwritten generally in
accordance with the Underwriting Standards as in effect at the time of
origination. To the best of the Seller's knowledge, the Mortgage contains the
usual and customary provision of the Seller at the time of origination for the
acceleration of the payment of the unpaid principal balance of the Mortgage Loan
if the related Mortgaged Property is sold without the prior consent of the
mortgagee thereunder;
(r) The Mortgaged Property at origination or acquisition was and, to
the best of the Seller's knowledge, currently is free of material damage and
waste and at origination there was, and to the best of the Seller's knowledge
there currently is, no proceeding pending for the total or partial condemnation
thereof;
(s) The related Mortgage contains customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (1) in the case of a Mortgage designated as a deed
of trust, by trustee's sale or judicial foreclosure, and (2) otherwise by
judicial foreclosure. The Seller has no knowledge of any homestead or other
exemption available to the Mortgagor which would interfere with the right to
sell the Mortgaged Property at a trustee's sale or the right to foreclose the
Mortgage;
(t) To the best of the Seller's knowledge, if the Mortgage constitutes
a deed of trust, a trustee, duly qualified if required under applicable law to
act as such, has been properly designated and currently so serves and is named
in the Mortgage, and no fees or expenses are or will become payable to the
trustee under the deed of trust, except in connection with a trustee's sale or
attempted sale after default by the Mortgagor;
(u) With respect to each Mortgage Loan, there is either (i) an
automated property valuation report or (ii) an appraisal on a FNMA-approved form
(or a narrative residential appraisal) of the related Mortgaged Property that
conforms to the applicable requirements of the Financial Institutions Reform
Recovery and Enforcement Act and that was signed prior to the approval of such
Mortgage Loan application by a qualified appraiser, appointed by the Seller or
the originator of such Mortgage Loan, as appropriate, who has no interest,
direct or indirect, in the Mortgaged Property or in any loan made on the
security thereof, and whose compensation is not affected by the approval or
disapproval of such Mortgage Loan;
(v) No Mortgage Loan contains "subsidized buydown" or "graduated
payment" features;
(w) The Mortgaged Property is a single-family (one- to four-unit)
dwelling residence erected thereon, or an individual condominium unit in a
condominium, or a Co-operative Apartment or an individual unit in a planned unit
development or in a de minimis planned unit development as defined by FNMA. No
such residence is a mobile home or a manufactured dwelling which is not
permanently attached to the land;
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(x) No Mortgage Loan provides for negative amortization;
(y) No Mortgage Loan had an original term in excess of thirty (30)
years;
(z) [RESERVED]
(aa) Each Mortgage Loan is a "qualified mortgage" within the
meaning of Section 860G(a)(3) of the Code (without regard to Treasury
Regulations Section 1.860G-2(f) or any similar rule that provides that a
defective obligation is a qualified mortgage for a temporary period);
(bb) No Mortgage Loan provides for interest other than at either
(x) a single fixed rate in effect throughout the term of the Mortgage Loan or
(y) a single "variable rate" (within the meaning of Treasury Regulations Section
1.860G-1(a)(3)) in effect throughout the term of the Mortgage Loan.
(cc) No Mortgage Loan is the subject of pending or final
foreclosure proceedings.
(dd) Based on delinquencies in payment on the Mortgage Loans, the
Seller would not initiate foreclosure proceedings with respect to any of the
Mortgage Loans prior to the next scheduled payment date on such Mortgage Loan.
(ee) Each Mortgage Note is comprised of one original promissory
note and each such promissory note constitutes an "instrument" for purposes of
section 9-102(a)(65) of the UCC.
(ff) No Mortgage Loan contains any term or condition, or involves
any loan origination practice, that has been defined as "predatory", "covered",
or "threshold" under any applicable federal, state, or local law and in such
context has been expressly categorized as an "unfair" or "deceptive" term,
condition, or practice in any applicable federal, state, or local law dealing
with "predatory" or "high cost" mortgage lending.
(gg) No Mortgage Loan is covered by the Home Ownership and Equity
Protection Act of 1994 ("HOEPA") and no Mortgage Loan is "high cost" as defined
by any applicable federal, state or local predatory or abusive lending law. Any
breach of this representation shall be deemed to materially and adversely affect
the value of the Mortgage Loan and shall require a repurchase of the affected
Mortgage Loan.
(hh) With respect to Mortgage Loans that are secured by real
property located in the State of Georgia and that are primary residences, no
such Mortgage Loan originated between October 1, 2002 and December 31, 2002 had
an original principal balance of $300,700 or less and no such Mortgage Loan
originated between January 1, 2003 and March 6, 2003 had an original principal
balance of $322,700 or less. No Mortgage Loan was originated on or after March
7, 2003 that is a "high cost home loan" as defined under the Georgia Fair
Lending Act. Any breach of this representation shall be deemed to materially and
adversely affect the value of the Mortgage Loan and shall require a repurchase
of the affected Mortgage Loan.
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(ii) No Mortgage Loan (a) is secured by property located in the
State of New York; (b) had an original principal balance of $300,000 or less,
and (c) has an application date on or after April 1, 2003, the terms of which
Mortgage Loan equal or exceed either the APR or points and fees threshold for
"high-cost home loans," as defined in Section 6-L of the New York State Banking
Law. Any breach of this representation shall be deemed to materially and
adversely affect the value of the Mortgage Loan and shall require a repurchase
of the affected Mortgage Loan.
(jj) Each Mortgage Loan at the time it was made complied in all
material respects with applicable local, state and federal laws, including, but
not limited to, all applicable predatory or abusive lending laws.
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