Exhibit 10.1
MORTGAGE LOAN PURCHASE AGREEMENT
This Mortgage Loan Purchase Agreement (the "Agreement"), dated as of [ ],
is between Xxxxx Fargo Asset Securities Corporation, a Delaware corporation (the
"Company"), and Xxxxx Fargo Bank, N.A., a national banking association ("Xxxxx
Fargo Bank" or, the "Seller").
The Company and Xxxxx Fargo Bank hereby recite and agree as follows:
1. Defined Terms. Terms used without definition herein shall have the
respective meanings assigned to them in the Pooling and Servicing Agreement,
dated as of [ ] (the "Pooling and Servicing Agreement"), among the Company,
Xxxxx Fargo Bank, as servicer (the "Servicer"), HSBC Bank USA, National
Association, as trustee (the "Trustee"), and Xxxxx Fargo Bank, N.A., as
securities administrator (the "Securities Administrator"), relating to the
issuance of the Company's Home Equity Asset-Backed Certificates, Series 200 -
(the "Certificates") or, if not defined therein, in the underwriting agreement,
dated [ ] and terms agreement, dated [ ] (together, the "Underwriting
Agreement"), among the Company, Xxxxx Fargo Bank and [ ], or in the purchase
agreement dated [ ] and the purchaser terms agreement, dated [ ] (together, the
"Purchase Agreement"), among the Company, Xxxxx Fargo Bank and [ ].
2. Assignment of Servicing Agreements. Xxxxx Fargo Bank agrees to sell,
and the Company agrees to purchase, the mortgage loans listed in Exhibit I
hereto and all of Xxxxx Fargo Bank's interest with respect to the Mortgage Loans
as the owner in, to and under each Servicing Agreement (as defined in the
Pooling and Servicing Agreement).
3. Purchase Price; Purchase and Sale. The purchase price (the "Purchase
Price") for the Mortgage Loans shall consist of $[ ] payable by the Company to
Xxxxx Fargo Bank on the Closing Date in immediately available funds.
Upon payment of the Purchase Price, Xxxxx Fargo Bank shall be deemed to
have transferred, assigned, set over and otherwise conveyed to the Company all
the right, title and interest of Xxxxx Fargo Bank in and to the Mortgage Loans
including all interest and principal received or receivable by Xxxxx Fargo Bank
on or with respect to the Mortgage Loans after the Cut-Off Date (and including
scheduled payments of principal and interest due after the Cut-Off Date but
received by Xxxxx Fargo Bank on or before the Cut-Off Date and Principal
Prepayments received or applied on the Cut-Off Date, but not including payments
of principal and interest due on the Mortgage Loans on or before the Cut-Off
Date), together with all of Xxxxx Fargo Bank's right, title and interest in and
to the proceeds of any related title, hazard, primary mortgage or other
insurance policies, all of Xxxxx Fargo Bank's rights described in Section 2
above, and all other property and rights described in the first paragraph of
Section 2.01(a) of the Pooling and Servicing Agreement. The Company hereby
directs Xxxxx Fargo Bank, and Xxxxx Fargo Bank hereby agrees, to deliver to the
Trustee or Custodian on behalf of the Trustee, all documents, instruments and
agreements required to be delivered by the Company to the Trustee under the
Pooling and Servicing Agreement; including, without limitation, the documents
required to be delivered under Section 2.01(a) of the Pooling and Servicing
Agreement; and upon the occurrence of a Document Transfer Event, the documents
required to be delivered under Section 2.01(b). Xxxxx Fargo Bank further agrees
to deliver such other documents, instruments and agreements as the Company or
the Trustee shall reasonably request.
4. Representations and Warranties; Covenants. Xxxxx Fargo Bank hereby
represents and warrants to the Company that (i) the Company's representations
and warranties to the Trustee pursuant to Section 2.04 of the Pooling and
Servicing Agreement are true and correct, as of the date thereof, and (ii) Xxxxx
Fargo Bank has not dealt with any broker, investment banker, agent or other
person (other than the Company and [ ]) who may be entitled to any commission or
compensation in connection with the sale of the Mortgage Loans. Xxxxx Fargo Bank
hereby agrees to cure any breach of such representations and warranties in
accordance with the terms of the Pooling and Servicing Agreement.
Xxxxx Fargo Bank hereby agrees to continue to pay on behalf of the Company
and its successors and assignees, promptly as they become due, any lender-paid
primary mortgage insurance premiums ("LPMI Premiums") with respect to any
lender-paid primary mortgage insurance policy (an "LPMI Policy") on each
Mortgage Loan so insured as of the Cut-Off Date, until such Mortgage Loan has
been paid in full or otherwise liquidated; provided, however, that the foregoing
obligation of Xxxxx Fargo Bank shall terminate with respect to all such Mortgage
Loans in the event that either (i) another entity acceptable to the insurers of
such LPMI Policies (the "LPMI Insurers") and the rating agencies rating the
Certificates undertakes to pay such LPMI Premiums, or (ii) Xxxxx Fargo Bank pays
one-time premiums to such LPMI Insurers such that all outstanding LPMI Policies
will remain in force until the related Mortgage Loans have been paid in full or
otherwise liquidated, without the requirement of any further premium payments.
5. Repurchase or Substitution. (a) Xxxxx Fargo Bank hereby agrees to
repurchase any Mortgage Loan from the Company (i) for which any document is not
delivered, as provided in paragraph 3 above, (ii) which is found by the Trustee
to be defective in any material respect, as provided in the Pooling and
Servicing Agreement, or (iii) which is discovered at any time not to be in
conformance with the representations and warranties referred to in paragraph 4
above and which document relating thereto Xxxxx Fargo Bank does not deliver or
which defect or breach Xxxxx Fargo Bank does not cure (as provided in paragraph
4 above) within 60 days after the date of notice thereof from the Trustee or the
Company, at a price equal to the Purchase Price. In addition, Xxxxx Fargo Bank
hereby agrees to reimburse the Company for any Reimbursement Amount.
Alternatively, Xxxxx Fargo Bank hereby agrees, if so requested by the Company to
substitute for any such Mortgage Loan, a new mortgage loan having
characteristics such that the representations and warranties referred to in
paragraph 4 above would not have been incorrect (except for representations and
warranties as to the correctness of the Mortgage Loan Schedule) had such
substitute mortgage loan originally been a Mortgage Loan. Xxxxx Fargo Bank
further agrees that a substituted mortgage loan will meet the requirements of an
Eligible Substitute Mortgage Loan. Xxxxx Fargo Bank shall remit to the Company,
in cash, the difference between the unpaid principal balance of the Mortgage
Loan to be substituted and the unpaid principal balance of the substitute
mortgage loan.
(b) In addition, Xxxxx Fargo Bank shall pay (i) the amount of any
Prepayment Premium (to the extent not collected and remitted to the Trust) to
the Trust if Xxxxx Fargo Bank is unable to collect a Prepayment Penalty as a
result of its enforceability being found to be limited or prohibited by
applicable law and (ii) without duplication of any amount payable under clause
(i), the amount due to the Trust by Xxxxx Fargo Bank pursuant to the last
paragraph of Section 2.03(a) of the Pooling and Servicing Agreement (any such
amounts, the "Originator Prepayment Penalty Payment Amount"). Xxxxx Fargo Bank
shall remit to the Securities Administrator for deposit into the Collection
Account any Originator Prepayment Penalty Payment Amount by the Servicer
Remittance Date following the month in which a Principal Prepayment was made on
the related Mortgage Loan.
(c) In the event that Xxxxx Fargo Bank has a right against the
originator or former owner of a Mortgage Loan (the "Prior Holder") for breach of
a representation or warranty regarding the characteristics of such Mortgage Loan
made by the Prior Holder, Xxxxx Fargo Bank may request the Company to repurchase
the Mortgage Loan from the Trust Estate pursuant to Section 2.03 of the Pooling
and Servicing Agreement and Xxxxx Fargo Bank agrees that at the time of the
repurchase by the Company, Xxxxx Fargo Bank will repurchase the Mortgage Loan
from the Company at a price equal to the then unpaid principal balance thereof,
plus accrued and unpaid interest at the applicable Net Mortgage Interest Rate,
through the last day of the month in which such repurchase takes place.
At the time of any such repurchase by Xxxxx Fargo Bank, Xxxxx Fargo Bank
agrees either to promptly (i) liquidate such Mortgage Loan, to the extent that
Xxxxx Fargo Bank's rights in respect of the Prior Holder consist of a claim for
indemnity or (ii) transfer such Mortgage Loan to the Prior Holder at a price not
less than that paid by Xxxxx Fargo Bank to the Company.
6. Underwriting. Xxxxx Fargo Bank hereby agrees to furnish any and all
information, documents, certificates, letters or opinions with respect to the
Mortgage Loans, reasonably requested by the Company in order to perform any of
its obligations or satisfy any of the conditions on its part to be performed or
satisfied pursuant to the Underwriting Agreement or the Purchase Agreement at or
prior to the Closing Date.
7. Costs. The Company shall pay all expenses incidental to the
performance of its obligations under the Underwriting Agreement and the Purchase
Agreement, including without limitation (i) any recording fees or fees for title
policy endorsements and continuations, (ii) the expenses of preparing, printing
and reproducing the Prospectus, the Prospectus Supplement, the Underwriting
Agreement, the Private Placement Memorandum, the Purchase Agreement, the Pooling
and Servicing Agreement and the Certificates and (iii) the cost of delivering
the Certificates to the offices of [ ] insured to the satisfaction of [ ].
8. Servicing. (a) Xxxxx Fargo Bank hereby represents to the Company
that the Mortgage Loans are serviced by the Servicer.
(b) With respect to each Mortgage Loan, the Servicing Fee Rate shall be
as set forth on Schedule I hereto.
(c) On the Closing Date, Xxxxx Fargo Bank shall assign to the Company
its interest with respect to the Mortgage Loans in, to and under each Servicing
Agreement.
9. Notices. All demands, notices and communications hereunder shall be
in writing, shall be effective only upon receipt and shall, if sent to the
Company, be addressed to it at Xxxxx Fargo Asset Securities Corporation, 0000
Xxx Xxxxxxxxxx Xxx, Xxxxxxxxx, Xxxxxxxx 00000, Attn: Vice President, Structured
Finance, or, if sent to Xxxxx Fargo Bank, be addressed to it at Xxxxx Fargo
Bank, N.A., 0000 Xxx Xxxxxxxxxx Xxx, Xxxxxxxxx, Xxxxxxxx, 00000, Attn: Vice
President, Structured Finance.
10. Trustee Beneficiary. The representations, warranties and agreements
made by Xxxxx Fargo Bank in this Agreement are made for the benefit of, and may
be enforced by, the Trustee and the holders of Certificates to the same extent
that the Trustee and the holders of Certificates, respectively, have rights
against the Company under the Pooling and Servicing Agreement in respect of
representations, warranties and agreements made by the Company therein.
11. Miscellaneous. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York. Neither this Agreement nor
any term hereof may be changed, waived, discharged or terminated except by a
writing signed by the party against whom enforcement of such change, waiver,
discharge or termination is sought. This Agreement may not be changed in any
manner which would have a material adverse effect on holders of Certificates
without the prior written consent of the Trustee. The Trustee shall be protected
in consenting to any such change to the same extent provided in Article VIII of
the Pooling and Servicing Agreement. This Agreement may be signed in any number
of counterparts, each of which shall be deemed an original, which taken together
shall constitute one and the same instrument. This Agreement shall bind and
inure to the benefit of and be enforceable by the Company and Xxxxx Fargo Bank
and their respective successors and assigns.
12. Recharacterization. The parties hereto intend the conveyance by the
Seller to the Company of all of its right, title and interest in and to the
Mortgage Loans pursuant to this Agreement to constitute a purchase and sale and
not a loan. Notwithstanding the foregoing, to the extent that such conveyance is
held not to constitute a sale under applicable law, it is intended that this
Agreement shall constitute a security agreement under applicable law and that
the Seller shall be deemed to have granted to the Company a first priority
security interest in all of the Seller's right, title and interest in and to the
Mortgage Loans.
IN WITNESS WHEREOF, the Company and Xxxxx Fargo Bank have caused this
Agreement to be duly executed by their respective officers as of the day and
year first above written.
XXXXX FARGO ASSET SECURITIES
CORPORATION
By:_____________________________________
Name:
Title:
XXXXX FARGO BANK, N.A.
By:_____________________________________
Name:
Title:
