EXHIBIT 10.54
[LETTERHEAD OF FIRST COLLATERAL]
July 11, 1994
Xxxxxx Xxxxx
President
Sutter Mortgage Corporation and Subsidiary
0000 Xxxxxxxx Xxxxx
Xxxxxx Xxxxx, Xxxxxxxxxx 00000
Re: Master Mortgage Loan Purchasing Agreement
Dated: August 26,1993
Dear Xxx:
This Commitment Letter constitutes the Commitment Letter referred to in and is a
supplement to the above-referenced Master Mortgage Loan Purchasing Agreement
(the "Agreement") and will confirm certain terms and conditions of the
purchasing arrangements between [Customer Name] ("Originator") and First
Collateral Services, Inc. ("Purchaser") set forth herein. Capitalized terms are
used herein with the same meaning as in the Agreement.
Loan Purchase Limit:
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$10,000,000.
Additional Purchase Facility:
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Allocation 01:
For purchasing:
1) FHA-insurable, VA-guarantee qualified and conventional
Conforming Residential Mortgage Loans; and
2) non-conforming Residential Mortgage Loans that meet applicable
acceptable investor guidelines, which shall not in any event
exceed $750,000 per mortgage.
Allocation 02:
For purchasing conventional Residential Mortgage Loans of a second
priority that meet applicable FHLMC, FNMA, or acceptable investor
guidelines (up to $1,000,000).
Allocation #03:
For repurchasing Residential Mortgage Loans (up to $500,000)
Allocation #04:
For purchasing Non-conforming 1-4 family Residential Mortgage Loans
that meet applicable acceptable investor and Purchaser guidelines for
"B" quality loans, which may be amended from time to time, which
shall not in any event exceed $500,000 per mortgage (up to
$2,000,000).
Sutter Mortgage Corporation and Subsidiary
July 11, 1994
Page 2
Allocation 05:
For purchasing Equity Lines of Credit secured by second liens on
owner-occupied primary residences. (up to $1,000,000.)
Maturity Date:
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June 30, 1995
Effective Date:
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This document shall take full force and effect on August 1, 1994.
Prevailing Purchasing Fee Rate:
------------------------------
See attached pricing schedule.
Please Note: The Prevailing Purchasing Fee Rate may be modified at any time
as to existing and future Loans by Purchaser prior to the
Maturity Date based upon movements in the LIBOR Rate.
Required Fees:
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See attached pricing schedule.
Permissible Warehouse Period:
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Allocation #01: 60 days
Allocation #02: 60 days
Allocation #03: 30 days
Allocation #04: 60 days
Allocation #05: 60 days
Guarantors:
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Xxxxxx X. Xxxxxx
Minimum Permitted Equity Base:
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$4,100,000
Minimum Permitted Tangible Net Worth:
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$4,100,000
Minimum Permitted Current Ratio:
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1.05
Permitted Debt to Tangible Net Worth Ratio:
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15 to 1
Sutter Mortgage Corporation and Subsidiary
July 11, 1994
Page 3
Permitted Debt to Equity Base Ratio:
-----------------------------------
15 to 1
Types of Eligible Mortgage Loans:
--------------------------------
1. Any Residential Mortgage Loan which is insurable by the FHA,
guaranteed by the VA or which is a Conventional mortgage loan which
Conforms in all respects (unless otherwise approved in writing by
Purchaser) with applicable requirements of FNMA, FHLMC or applicable
acceptable investors, and such loan is secured by a first or second
priority perfected lien on the subject Property.
2. For purchasing "B" grade loans, defined as, non-conforming 1-4 family
Residential Mortgage Loans acceptable to acceptable to investors and
Purchaser which meet the following criteria: 1) maximum loan to value
rate of 75%; 2) owner-occupied only; 3) a maximum loans amount of
$500,000; 4) a maximum debt ratio of 50%; 5) a mortgage credit history
which includes no more than four (4) 30-day or one (1) 60-day
delinquency during the past 12 months; 6) a consumer Credit history
which includes not more than four (4) 30-day delinquencies during the
past 12 months, or two (2) 60-day delinquencies during the past 12
months; and 7) no bankruptcy within the past 24 months.
Acceptable Jurisdictions:
------------------------
California, or as otherwise may from time to time be accepted by Purchaser
in its sole discretion.
Loan Purchasing Base:
--------------------
(1) In the case of Residential Mortgage Loans to be submitted to FNMA or
FHLMC or other financial institutions for purchase under one or
more Take-Out Purchase Commitments, the lesser of 98% of the Take-Out
Purchase Commitment price, or 100% of the unpaid principal amount of
such Residential Mortgage Loan.
(2) In the case of non-conforming Residential Mortgage Loans that meet
applicable acceptable investor guidelines, which shall not in any
event exceed $750,000 per mortgage, the lesser of 98% of the Take-Out
Purchase Commitment price, or 100% of the unpaid principal amount of
such Residential Mortgage Loan.
(3) In the case of Residential Mortgage Loans held for assembly into a
package for inclusion in a pool underlying a Mortgage-Backed Security
subject to a Take-Out Purchase Commitment, or to be submitted to
FNMA or FHLMC or other financial institution or investment banker for
purchase under one or more Take-Out Purchase Commitments, the lesser
of 98% of the Take-Out Purchase Commitment price, or 100% of the
unpaid principal amount of such Residential Mortgage Loan.
(4) In the case of a repurchased loan, the lesser of 75% of (1) the unpaid
principal balance or (2) the current appraised value.
Sutter Mortgage Corporation and Subsidiary
July 11, 1994
Page 4
(5) If a pledged CD is carried with Independence One Bank of California
with an interest rate of zero %, at an amount acceptable to First
Collateral ServiCes, Inc. and the CD is pledged as partial security
for the warehouse line, then funding Can be up to 100% of the note
amount of Allocations 01, 02, 04 and 05.
Allowed Discrepancy:
-------------------
Fifty basis points (0.50%) on the aggregate dollar amount of Loans
outstanding.
Contact Office:
--------------
First Collateral Services, Inc.
0000 Xxxxx Xxxx., Xxxxx 000
Xxxxxx Xxxxx, XX 00000
attn. Compliance Dept.
Statement Date:
--------------
December 31,1993
Interim Date:
------------
March 31, 1994
Addresses for Purpose of Notice:
-------------------------------
Attention: Xxxxxx Xxxxx, President
Sutter Mortgage Corporation and Subsidiary
0000 Xxxxxxxx Xxxxx
Xxxxxx Xxxxx, Xxxxxxxxxx 00000
Attention: Xxxxx Xxxxxx
First Collateral Services, Inc. -
0000 Xxxxx Xxxx., Xxxxx 000
Xxxxxx Xxxxx, XX 00000
Servicing Fee:
-------------
Fifteen basis points (0.15%) on the unpaid principal balance on all
Eligible Mortgage Loans in the Loan Repurchasing Base to be deducted from
principal and interest collected pursuant to the Servicing Agreement.
Required Documents:
------------------
1. At time of purchase, the required documents are defined in Exhibit I.
2. Sixty days after the date of purchase, the required documents are
defined in Exhibit II.
3. At the time of purchase, a Document Certification is required from an
authorized officer. (Included in the Loan Purchase Request form.)
Sutter Mortgage Corporation and Subsidiary
July 11, 1994
Page 5
Additional Conditions:
---------------------
1. All "B" grade Residential Mortgage Loans must have investor pre-
approval.
2. All Equity Lines of Credit loans must have investor pre-approval.
If the above meets with your approval, please so indicate by executing and
returning to Purchaser this Commitment Letter by July 20, 1994. If this
Commitment Letter has not been executed and returned to Purchaser by this date,
the Commitment shall expire. The enclosed Copy is for your files.
Very truly yours,
FIRST COLLATERAL SERVICES, INC.
By /s/ XXXXX X. XXXXXX
-----------------------------
Xxxxx X. Xxxxxx
First Vice President
By /s/ XXXXXX XXXXXX
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Xxxxxx Xxxxxx
Vice Chairman
AGREED TO AND ACCEPTED this
14 day of July, 1994.
-- ---- ----
Sutter Mortgage Corporation and Subsidiary
a California corporation
By /s/ XXXXXX XXXXX
-----------------------------------
Xxxxxx Xxxxx President
Sutter Mortgage Corporation and Subsidiary
July 11, 1994
Page 6
ORIGINATOR: Sutter Mortgage Corporation and Subsidiary
PRICING SCHEDULE
Prevailing Purchasing Fee Rate:
-------------------------------
Allocation 01:
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LIBOR plus 250% per annum, fee payable monthly. LIBOR shall mean the
30-day U.S. Dollar London Interbank Offered Rate as reported daily by
Telerate. If deposit balance are maintained, then 100% of Available
Deposits may be borrowed back at 3.00% per annum, fee payable monthly.
Allocation 02.
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LIBOR plus 3.25% per annum, fee payable monthly.
Allocation 03:
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LIBOR plus 3.50% per annum, fee payable monthly.
Allocation 04:
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LIBOR plus 3.25% per annum, fee payable monthly.
Allocation 05:
LIBOR plus 3.25% per annum, fee payable monthly.
Required Fees:
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Unused Purchase Limit. A commitment fee equal to 0.25% per annum on
---------------------
the average unused Purchase Limit if usage of the line falls below
50% of the Purchase Limit on an average basis, calculated monthly.
Said fee shall be payable monthly in arrears on the first business
day of each month.
Processing Fee. A processing fee of $15.00 per loan purchased under
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Allocations 01, 02, and 04 and 05, payable monthly in arrears on the
first business day of each month.
A Processing fee of $25.00 per loan purchased under Allocation 03 for
Repurchases, fee payable monthly in arrears on the first business day
of each month.
Wire Transfer Fee. A fee will be charged for sending or receiving all
-----------------
wire transfers for purchase of any loan originated by Originator or an
account of Originator. The fee will be established by schedule
published by Purchaser from time to time.
Additional Fees. Such others fees, including but not limited to
---------------
messenger and overnight courier fees, charged or incurred by Purchaser
in the process of purchasing any loan from Originator.
Sutter Mortgage Corporation and Subsidiary
July 11, 1994
Page 7
EXHIBIT I
ALL LOANS REQUIRE THE FOLLOWING DOCUMENTS:
Original Xxxxxxxxx's note endorsed in blank and riders
Certified copy of Deed of Trust
Executed Assignment of D/T in favor of First Collateral Services, Inc.
Copy Preliminary Title Report
Copy Escrow instruction with Funding Statement
Copy Insured Closing Protection Letter (Loans Closed outside Title Co.)
Application - typed
Copy Investor Credit Package Approval/(all non-conforming loans)
Copy Credit Report
Copy Appraisal
Copy Hazard Insurance Policy/Certificate
Copy Private Mortgage Insurance Certificate
Copy Underwriters approval
Copy Investor Commitment
Copy Funding Check/Wire Instructions
IN ADDITION CONVENTIONAL LOANS REQUIRE:
Copy Transmittal Summary - FNMA 1008
IN ADDITION GOVERNMENT LOANS REQUIRE:
Mortgage credit analysis - HUD 92900 - WS
Request for insurance - HUD 54111
Direct Endorsement - HUD 54113
Certificate of Commitment - HUD 92900.4
Sutter Mortgage Corporation and Subsidiary
July 11, 1994
Page 8
EXHIBIT II
ALL LOANS REQUIRE The FOLLOWING DOCUMENTS AFTER 60 DAYS FROM DATE OF
PURCHASE:
Transmittal Letter Identifying Mortgage and Enclosures
Copy Settlement Instructions (HUD 1)
Copy Verification of Employment
Copy Sales Contract
Copy Certificate of Flood Insurance, as applicable
Copy Termite Report
Copy Mortgage Insurance Certificate
