CONFIDENTIAL
MASTER AGREEMENT MP03843.1-01
(Conversion)
This Master Agreement between Xxxxxx Xxx and Washtenaw Mortgage Company
("Lender") governs the sale by Lender, and the purchase by Xxxxxx Mae, of
eligible residential mortgage loans (the "Mortgages"). This Master Agreement
includes all of the terms and conditions described in all of the exhibits,
attachments, conversions, commitments and MBS Pool Purchase Contracts ("MBS
Contracts") attached or entered into as a part of this Master Agreement.
Additionally, the "Master Agreement Terms and Conditions" section of Xxxxxx
Mae's Selling Guide (the "Selling Guide"), which is incorporated into this
Agreement by this reference, outlines in more detail the general terms and
conditions of the Master Agreement and MBS Contracts and contains a complete
description of the terms "Master Conversions" and "MBS Pricing Confirmations,"
as well as other related terms and instructions. The execution of this Master
Agreement requires compliance with all provisions and sections of this Master
Agreement, including all Master Conversions, MBS Contracts, cash commitments,
exhibits and attachments to this Master Agreement.
To sell Mortgages under this Master Agreement, Lender and Xxxxxx Mae must also
enter into one or more Master Conversions. In addition, depending on whether
Lender will be delivering Mortgages under one of Xxxxxx Mae's cash purchase
programs (Negotiated or Standard) or under Xxxxxx Mae's MBS program, Lender and
Xxxxxx Xxx will also need to enter into the appropriate cash commitments or MBS
Pricing Confirmations for MBS Contracts.
Lender and Xxxxxx Mae acknowledge that the Estimated Dollar Amount (as set forth
on Exhibit 1) is an estimate by the parties, as of the date of execution hereof,
of anticipated Mortgage deliveries and such amount may change over the term of
this Master Agreement. Notwithstanding the fact that a Maximum Amount of Pool
Purchase Transactions for Delivery is set forth in each MBS Contract, the total
amount to be sold shall be governed by the applicable Master Conversions. The
sum of the actual Mandatory Delivery Amounts (whether one or more), as reflected
in the Master Conversions, will reflect the actual volume of Mortgage deliveries
agreed to by the parties and will supersede any Estimated Dollar Amount set
forth in Exhibit 1.
For this Master Agreement to become effective, Lender must execute and return to
Xxxxxx Xxx a duplicate original within ten business days of Lender's receipt of
this Master Agreement. Otherwise, Xxxxxx Mae may, at its option, declare this
Master Agreement null and void.
Lender hereby confirms, by checking the appropriate section below, that:
It is not a federally-insured institution or an affiliate or subsidiary of a
federally-insured institution.
It is a federally-insured institution or an affiliate or subsidiary of a
federally-insured institution. If Lender has checked this section, then Lender
agrees to the representations and warranties described in the "Master Agreement
Terms and Conditions" section of the Selling Guide.
Sincerely,
XXXXXX XXX
By: ____________________________________________________
Xxxx Xxxxxxxxxxx
Senior Vice President
Agreed, acknowledged, and accepted.
WASHTENAW MORTGAGE COMPANY
By: ______________________________________________________
Name: ______________________________________________________
Title: ______________________________________________________
Date: ______________________________________________________
EXHIBIT 1
TO MASTER AGREEMENT MP03843.1
Lender Name Washtenaw Mortgage Company
Lender Number 00000-000-0
Delivery Term: First
Effective Date of Delivery Term: July 1, 2003
Expiration Date of Delivery Term: June 30, 2004
Estimated Dollar Volume for Delivery $3,500,000,000.00
Term: (eligible for delivery only upon
incremental conversions to Mandatory
Delivery Amounts under one or more
Master Conversions)
MASTER AGREEMENT
Master Conversion for Washtenaw Mortgage Company
MP03843.1-01
Upon entering into this Master Conversion, Lender is obligated to sell to Xxxxxx
Xxx, and Xxxxxx Xxx is obligated to buy from Lender, Mortgages in the aggregate
unpaid principal amount of the Mandatory Delivery Amount stated below under any
of the following programs: Xxxxxx Mae's MBS program, Negotiated Cash
Transactions or Standard Cash Transactions. Mortgages must be sold during the
period commencing with the Effective Date set forth below and ending with the
Expiration Date set forth below (the "Conversion Period") and must meet all
requirements set forth in the Master Agreement, as well as those set forth in
the applicable MBS Contracts (as described below). There must be a valid MBS
Pricing Confirmation for each MBS Contract below prior to Lender's sale of any
Mortgages under such MBS Contract.
Lender shall be deemed to have accepted the terms of this Master Conversion and
all applicable MBS Pricing Confirmations either (i) upon execution of the Master
Agreement or Master Agreement amendment to which this Master Conversion is
attached, or (ii) if this Master Conversion is not attached to a Master
Agreement amendment, then upon delivery of any Mortgages under the MBS Contracts
during the current Conversion Period.
Master Agreement: MP03843.1-01
Mandatory Delivery Amount: $1,000,000,000.00, plus or minus 5%
Effective Date: July 1, 2003
Expiration Date: September 30, 2003
MBS Contracts: P09039, P09045, P09038, P09044, P09036,
P09037, P09040, P09042, P09043, P09047,
P09048
Back-end Buyout Fee: The greater of $1,000.00 or 12.5
basis points multiplied by the
undelivered portion of the Mandatory
Delivery Amount.
VARIANCES
This Variances Attachment is attached to and made a part of the Master
Agreement. Under this Master Agreement, Lender may sell Mortgages originated in
accordance with the following variances. Unless otherwise specified, the
following variances apply only to conventional, first lien Mortgages.
1. With respect to any Variances in this "Variances" section that incorporate
a table to describe eligibility of Mortgages delivered under that Variance,
the following definitions and restrictions apply to all such Variances.
Mortgage products listed under "Eligible Products/Programs" are the only
eligible mortgage products and/or programs. A reference to "All Standard
per Selling Guide" means only standard mortgage products (e.g., FRM, ARM,
7-year balloon), and does not include any specially negotiated products,
community or affordable lending products, or products requiring special
lender approval.
The loan purpose(s) listed under "Loan Purpose" (Purchase Money Mortgage,
Cashout Refinance, Limited Cashout Refinance) is/are the only eligible loan
purpose for Mortgages delivered under the Variance.
The property type(s) and number of units listed under "Dwelling Type" (e.g.
Detached, Condo, PUD) and "Units" (e.g. 1, 2, 3, 4) is/are the only
eligible property types and number of units for Mortgages delivered under
the Variance.
The occupancy status listed under "Occupancy Status" (e.g. Owner, 2nd Home,
or Investor) is/are the only eligible occupancy status for Mortgages
delivered under the Variance. "Owner" means owner-occupied primary
residence, "2nd Home" means second home, and "Investor" means an investment
property.
The LTV or CLTV listed in the "LTV" or "CLTV" column represent the maximum
possible LTV or CLTV for the Mortgages delivered under the Variance. A
lower maximum LTV or CLTV may apply depending on the loan products (e.g.
ARM or balloon), if "All Standard per Selling Guide" has been selected
under "Eligible Products/Programs."
2. In the event that a Variance table references "Coop" as an eligible
"Dwelling Type," Lender must be approved for delivery of cooperative share
loans to Xxxxxx Xxx, per the Selling Guide.
3. Any special feature code designated for the Variance is in addition to any
other special feature codes that may be required.
4. If any column in the Variance table is blank, Lender must refer (a) first
to the terms and conditions of that Variance, and (b) then to the Selling
Guide or the Guide to Underwriting with Desktop Underwriter(R), as
applicable, both as amended from time to time.
TABLE OF CONTENTS
VAR 1 Bulk ALT A Product
VAR 2 Enhanced Streamlined Refinance Mortgages (Retention)
VAR 3 InterestFirst Terms and Conditions
VAR 4 Use of Other Automated Underwriting System.
VAR 5 Power of Attorney
VAR 6 Desktop Underwriter 'Expanded Approval with Timely Payment
RewardsTM' Initiative
VAR 1 Bulk ALT A Product
1. Lender may sell to Xxxxxx Mae a loan package containing mortgages
("Mortgages") that may have been originated with certain variances to
Xxxxxx Mae's underwriting and documentation requirements described as one
of the following Alt A products:
(a) "Stated Income," (SFC "442") which is defined as: the borrower reports
income on the Uniform Residential Loan Application (Form 1003) and a verbal
Verification of Employment may be obtained. Lender is not required to
verify the reported income, but must verify the borrower's assets.
(b) "No Ratio," (SFC "443") which is defined as: the borrower does not report
income on the Uniform Residential Loan Application (Form 1003), so
therefore no debt-to-income ratios are calculated. Lender is not required
to verify the borrower's income, but must verify the borrower's assets.
(c) "No Income/No Asset" (`NINA') (SFC "444") which is defined as: the borrower
does not report either income or assets on the Uniform Residential Loan
Application (Form 1003). Lender is not required to verify the borrower's
income or assets.
(d) "Full/Alternative Documentation (SFC "512") which is defined as: the
borrower reports income and assets on the Uniform Residential Loan
Application (Form 1003) and Lender must verify reported income and assets.
Lender must document the Mortgage file with a statement describing the
Mortgage either as a Stated Income, a No Ratio, a NINA, or a Full/
Alternative Documentation Alt A product.
2. Lender must provide the borrower's FICO credit score at delivery of each
Mortgage under this Variance.
3. Eligible products include fixed-rate, first-lien, fully amortizing
mortgages [DESCRIBE OTHER PRODUCTS: and 3/1, 5/1, 7/1, and 10/1
adjustable-rate mortgages (Xxxxxx Xxx Plans 651, 652, 660, 661, 750, 751,
1423 and 1437)].
4. Lender's underwriting guidelines for origination of Stated Income, No
Ratio, or NINA Alt A products are described in Attachment 1 ("Lender's
Underwriting Guidelines"). Notwithstanding any contrary provisions
contained in Lender's Underwriting Guidelines, the only Mortgages eligible
for delivery to Xxxxxx Xxx are those Mortgages that are originated in
accordance with Lender's guidelines for Stated Income, No Ratio, or NINA
Alt A products described in Lender's Underwriting Guidelines and meet
Xxxxxx Mae's general eligibility criteria, as modified by the applicable
provisions of Attachment 1. Xxxxxx Mae reserves the right to review all
mortgages offered for sale by Lender, and although certain mortgages may
meet Underwriting Guidelines, Xxxxxx Xxx is not obligated to buy all of
such mortgages.
5. Lender represents and warrants that all information concerning the
Mortgages submitted by Lender to Xxxxxx Mae in electronic format or
otherwise is true, accurate, and complete. Notwithstanding the accuracy of
the information submitted by Lender, Lender represents and warrants that
all Mortgages comply with Lender's Underwriting Guidelines. Lender
acknowledges that Xxxxxx Xxx does not waive any of such representations and
warranties of Lender by offering to buy or accepting delivery of any
Mortgages. A breach of any of Xxxxxx Mae's underwriting criteria or any
modification thereof, as described herein, shall be deemed to be a breach
of warranty by Lender, as provided in the Selling Guide.
6. All Stated Income, No Ratio, or NINA Mortgages must be delivered to Xxxxxx
Xxx [FOR MBS: under Pool Purchase Contract TBD (fixed-rate Mortgages)
[and/or] Pool Purchase Contract TBD (ARMs).] [FOR CASH: under Xxxxxx Mae's
Negotiated Transactions for cash purchase.]
7. With respect to all Mortgages sold and delivered to Xxxxxx Xxx pursuant to
this Variance:
(a) Lender represents and warrants that the Mortgages comply with all
applicable representations and warranties as set forth in the Selling
Guide, and Lender makes all selling warranties with respect to the
Mortgages, except as otherwise expressly provided in this Variance.
(b) Lender acknowledges that the terms and conditions on which Xxxxxx Mae has
agreed to acquire the Mortgages assume that pool or primary mortgage
insurance is obtainable for the Mortgages after delivery of the Mortgages
to Xxxxxx Xxx. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or
negligence, or with any act that is dishonest, criminal, or knowingly
wrongful, that would (1) cause a mortgage insurer to decline to insure a
Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a
mortgage insurance policy exclusion to coverage encompassing fraud,
misrepresentation, negligence, or dishonest, criminal, or knowingly
wrongful acts in origination or servicing.
(c) These representations and warranties survive purchase of and payment for
the Mortgage, apply to each Mortgage, and inure to the benefit of Xxxxxx
Mae, its successors and assigns.
8. Xxxxxx Xxx and Lender agree that multiple bulk mortgage deliveries may be
made under this Variance. With respect to each such delivery, a Bulk
Mortgage Delivery Addendum containing specific information with respect to
the corresponding Mortgages being delivered will be completed and added to
this Variance, and shall become a part of this Variance and this Master
Agreement for all purposes.
Attachment 1
[DATE] 200_ Bulk Mortgage Delivery Addendum
Maximum Volume: $______________
Lender shall deliver the Mortgages described in the Profile Summary Schedule "A"
unless the Mortgage doesn't meet Lender's Underwriting Guidelines or it pays
off, becomes delinquent, falls out for similar acceptable reasons prior to the
delivery date. Lender represents and warrants that the Mortgages are as
described in Profile Summary set forth in Schedule "A" and as identified on
Schedule "B". The term "CLTV" used in Schedule "A" and this Contract is the
"Current Loan-to-Value Ratio". "Current Loan-to- Value Ratio" is the
loan-to-value ratio based upon the issue date principal balance of each Mortgage
and the original appraised value of the property securing each such Mortgage.
[DATE] 200_
Schedule A
200_
Schedule B
Lender Loan Numbers
VAR 2 Enhanced Streamlined Refinance Mortgages (Retention)
June 2002
The following requirements are applicable to all Enhanced Streamlined Refinance
Mortgages originated pursuant to these Terms and Conditions.
Defined Terms
The following terms used herein are defined as follows:
"Enhanced Streamlined Refinance Mortgages" means both "Fannie-to-Fannie"
Refinance Mortgages and "NonFannie-to-Fannie" Refinance Mortgages.
"Existing Loan" means the mortgage loan being refinanced, regardless of whether
it represented the refinance of a previous mortgage.
"Investor Property Mortgage" means a Mortgage secured by an investment
property.
"Original Underwriting File" means the underwriting file that contains the
property appraisal and (i) the credit documents originally used to qualify the
borrower(s) prior to any streamlined refinance transactions and, (ii) if there
has been an assumption by the current borrower at any time since the original
borrower was qualified, the credit documents used to qualify the current
borrower at the time of assumption.
"Second Home Mortgage" means a Mortgage secured by a second home.
"Selling Guide" means the Xxxxxx Xxx Selling Guide, as may be amended from time
to time.
"Standard MI Level" means mortgage insurance at the level required by
Xxxxxx Mae at the time of the Mortgage delivery, in accordance with the
Selling Guide.
Eligible Existing Loan Terms
Conventional, fixed rate, non-negatively amortizing ARMs, and balloons are
eligible.
Mortgages serviced under recourse or shared risk arrangements (not including
Mortgages subject to GSE pool insurance policies) are not eligible for delivery
hereunder, unless this Master Agreement requires an equivalent recourse or
shared risk arrangement.
In addition:
a. Existing Loans must have been underwritten to traditional Xxxxxx Xxx or
Xxxxxxx Mac guidelines.
b. Existing Loans must meet Xxxxxx Mae's eligibility criteria per the Selling
Guide or the Guide to Underwriting with Desktop Underwriter, as applicable,
with the following exception: any minimum FICO requirements in the Selling
Guide will not apply to any mortgages originated prior to July 3, 2000.
c. In addition, mortgages originated as any of the following products
(including a refinance of any of the following products) are not eligible
for any Enhanced Streamlined Refinance process described in herein:
mortgages originated pursuant to the Desktop Underwriter(R) "Expanded
Approval" Initiative (with or without the Timely Payment RewardsSM feature)
or any comparable mortgage products of any other lender or investor;
mortgages originated as (i) "stated income", which is defined as: the
borrower reports income on the Form 1003 and a verbal VOE may be obtained,
but the income is not Master Agreement MP03843.1 VAR 2 - 2 June 17, 2003
verified; assets are verified; (ii) "no ratio," which is defined as: the
borrower does not report income on the Form 1003 and ratios are not
calculated; assets are verified; or (iii) "no income/no asset (`NINA')
which is defined as: the borrower's income and assets are neither stated on
the Form 1003 nor verified;
mortgages that originated as subprime or "A minus;"
mortgages originated under special community lending or affordable housing
initiatives (including Community 100SM Mortgages, MyCommunitySM Mortgages
and any comparable mortgage products of any other lender or investor); and
other mortgages or products that may be designated by Xxxxxx Xxx from time
to time.
Eligible New Loan Terms
Conventional, fixed rate Mortgages; 7/1 ARMs (standard Xxxxxx Mae Plans, or
equivalent for "NonFannie-to-Fannie" Refinance Mortgages) and 10/1 ARMs
(standard Xxxxxx Mae Plans, or equivalent for "NonFannie-to-Fannie" Refinance
Mortgages). In addition, 3/1 ARMs (standard Xxxxxx Mae Plans, or equivalent for
"NonFannie-to-Fannie" Refinance Mortgages) and 5/1 ARMs (standard Xxxxxx Mae
Plans, or equivalent for "NonFannie-to-Fannie" Refinance Mortgages) are eligible
so long as the Existing Loan had the same or shorter initial fixed rate interest
period. Balloon mortgages are ineligible.
Asset Verification
None required.
Requalification (payment ratios)
None required.
Maximum Payment Increase
No limit.
Borrowers
The borrower(s) on the Existing Loan (or the current borrower(s), if the
Existing Loan was assumed in accordance with the "Assumptions" section below)
must be identical to the borrower(s) on the new Mortgage. However, if the new
Mortgage is a "Fannie-to-Fannie" Refinance Mortgage and one of the original
borrowers has died, the remaining borrower will be eligible for the new
Mortgage. Otherwise, if the new Mortgage is a "NonFannie-to-Fannie" Refinance
Mortgage and one of the original borrowers has died or if the new Mortgage is a
"Fannie-to-Fannie" or "NonFannie-to-Fannie" Refinance Mortgage and the borrowers
have divorced, the remaining borrower will be eligible for the new Mortgage, so
long as:
he or she provides evidence that he or she has been making the payments on the
Existing Loan from his or her own funds for at least 12 months (the 12 months
pay history must be on the Existing Loan, and may not be from multiple
mortgages);
the borrower provides evidence of the divorce from the previous borrower or
the previous borrower's death; and
if the new Mortgage is a "Fannie-to-Fannie" Refinance Mortgage, then the
Existing Loan may have no 30-day delinquency in the most recent 12 months
preceding the date of the new loan application, notwithstanding the provisions
of the "Payment History" paragraph.
Assumptions
For any Existing Loan that was assumed by the current borrower prior to the
refinance under these guidelines, Lender represents and warrants that at the
time of the assumption, the current borrower qualified for the Existing Loan
under Xxxxxx Mae's assumability criteria applicable to standard adjustable-rate
mortgages, or such other assumability criteria as may be approved by Xxxxxx Xxx
in connection with these streamlined refinance guidelines.
Possession of Original Underwriting File
Lender must have the Original Underwriting File, plus the underwriting files on
the Existing Loan (if not the same loan as represented by the Original
Underwriting File) and all other streamlined refinance loan files previous to
the new Mortgage, as applicable. A copy of all reports and findings generated by
any automated underwriting system must be included in the loan file. In
particular, there must be a copy of any applicable report or finding from the
automated underwriting system that recommended a reduced level of mortgage
insurance coverage on the Existing Loan, or mortgage insurance will be required
at the Standard MI Level on the new Mortgage. Quality control review will cover
all such loan files, in addition to the new Mortgage files.
Property Value Certification: Supplemental
Provision.
In addition to the specific provisions provided in the applicable section below,
the following provision applies to all Enhanced Streamlined Refinance Mortgages:
As described in the applicable section below, Xxxxxx Mae does not require a new
appraisal in these circumstances for determining the LTV of the new Mortgage.
However, as always, Xxxxxx Xxx requires Lender to comply with all laws
applicable to origination and servicing of the refinance loan - including the
Homeowners Protection Act of 1998, if applicable. Certain borrower rights and
lender obligations provided for by that Act are based on LTVs at origination and
at later dates. LTVs referred to in the Act are based on the property's
"original value" and the Act prescribes a definition of "original value." Lender
is advised to consult with its legal counsel with regard to establishing
"original value" as so defined.
Refinancing Practices
Lender must comply with all applicable guidelines relating to refinancing of
mortgages in its portfolio, including Part I, Section 309 of the Servicing
Guide.
PART A. "Fannie-to-Fannie" Refinance Mortgages.
The following eligibility requirements relate to Mortgages that represent the
refinancing of conventional loans currently owned by Xxxxxx Mae, and serviced by
Lender ("'Fannie-to-Fannie' Refinance Mortgages"). Lender must be the seller of
the Mortgage to Xxxxxx Mae. "Fannie-to-Fannie" Refinance Mortgages may include
existing mortgages that were required to be processed using Desktop Underwriter
as a condition to delivery to Xxxxxx Mae, except as otherwise provided in the
"Eligible Existing Loan Terms" paragraph of the General Terms section above.
Lender may deliver "Fannie-to-Fannie" Refinance Mortgages that meet the
following criteria:
Seasoning of Mortgages
No restrictions.
Maximum LTVs
The LTV on the Existing Loan (no new appraisal is required to determine current
LTV). For Mortgages delivered under Xxxxxx Mae's MBS program, the LTV may not
exceed 100%, regardless of the LTV on the Existing Loan.
Cash Out to Borrower
None permitted. New loan balance may exceed the Existing Loan current balance to
pay closing costs and lender fees, but may not exceed the original balance of
the Existing Loan.
Eligible Properties
All property types, except manufactured housing.
Subordinate Financing
An existing subordinate lien may remain in place, with re-subordination of
existing subordinate lien and subject to payment of any applicable loan level
price adjustment at delivery (see "Loan Level Price Adjustments Applicable to
Certain Mortgages" paragraph below). No maximum combined LTV is applicable.
Credit History
Payment History
The Existing Loan must be current and have no more than one 30-day delinquency
in the most recent 12 months preceding the date of the new loan application, or
the elapsed term of the Existing Loan if less than 12 months, except as provided
in the "Borrowers" section of the General Terms above. If the Existing Loan was
assumed by the current borrower in accordance with the "Assumptions" section of
the General Terms above, then the payment history requirement, as applicable,
must be satisfied entirely by the current borrower.
Credit Report
None required, except as may be necessary to obtain the borrower's FICO credit
score as required below.
Minimum FICO Score
None, notwithstanding any FICO credit score requirements contained in the
Selling Guide.
Income/Employment Verification
None required. Lenders should follow standard Xxxxxx Xxx guidelines for Housing
Goals data submission.
Property Value Certification
(See also "Property Value Certification: Supplemental Provision" section in
"General Terms" above.)
Upon Lender's delivery of any "Fannie-to-Fannie" Refinance Mortgage, Lender
hereby warrants that the value of the mortgaged property securing the Mortgage
has not declined since the origination of the loan documented by the Original
Underwriting File. With respect to any "Fannie-to-Fannie" Refinance Mortgage for
which the Lender cannot represent that the property value has not declined,
Lender only represents that the value of the mortgaged property is no less than
the amount of the new Mortgage. In either case, nothing herein shall be deemed
to release Lender from its representations and warranties relating to the
underwriting of the borrower or the property value with respect to the Existing
Loan, which representations and warranties shall continue after delivery of the
new Mortgage to Xxxxxx Mae. In addition to the remedies set forth in the Xxxxxx
Xxx Selling and Servicing Guides with respect to Lender's breach of
representations and warranties, in the event the Lender is in breach of the
foregoing representation and warranty with respect to a Mortgage delivered to
Xxxxxx Mae for MBS or cash, Lender must immediately repurchase such Mortgage at
the repurchase price set forth in Part VI, Chapter 2, Section 201 of the Xxxxxx
Xxx Servicing Guide (or any successor provision).
If Lender repurchases a `Fannie-to Fannie' Refinance Mortgage due to breach of
the representation of the property value, Lender may contact its Customer
Account Manager and Xxxxxx Mae will arrange for the purchase of such Mortgage
for cash at a par price, notwithstanding the then current yields otherwise
applicable. However, any such Mortgage that was, at the time of its initial
delivery hereunder, subject to a risk sharing or recourse arrangement
(including, for this purpose, Lender recourse) must retain that arrangement or a
comparable arrangement acceptable to Xxxxxx Xxx at the time of redelivery to
Xxxxxx Mae. Additionally at redelivery, Lender must enter Special Feature Code
"10" (Non-Poolable Special Loan) on the Loan Schedule (Forms 1068/1069).
Alternatively, Lender may obtain a new appraisal on which it bases its warranty
as to the current value of the property on either Xxxxxx Xxx Form 1004 Uniform
Residential Appraisal Report or the Xxxxxx Mae Form 2055 Desktop Underwriter
Quantitative Analysis Appraisal Report (or Form 2095 for cooperative interest
properties) with an interior and exterior inspection (for Mortgages delivered
outside of Desktop Underwriter), or Xxxxxx Xxx Form 1025 Small Residential
Income Property Appraisal Report for two - four unit properties. The following
partial completion of Form 1025 is acceptable if the appraiser determines that
the property can be valuated appropriately using the sales comparison approach:
(i) page one - completion of all sections is required;
(ii) page two - completion of all sections is required except the "Valuation
Analysis;"
(iii) page three - completion is not required; and
(iv) page four - completion of all sections is required except in the
"Reconciliation Section," of the three value approaches listed, the
appraiser needs to complete ONLY the "Indicated Value by Sales Comparison
Approach."
If the appraiser completes the Form 1025, using the partial completion approach
outlined herein, the appraiser must certify that an appraisal based solely on a
sales comparison approach is an appropriate valuation method for the subject
property.
NOTE: If Lender is unable to warrant that the value of the mortgaged property
securing the Mortgage has not declined since the origination of the loan
documented by the Original Underwriting File, either with or without a new
appraisal, then such mortgage is not eligible for delivery to Xxxxxx Mae under
this Enhanced Streamlined Refinance process, regardless of the LTV.
Mortgage Insurance
Mortgage insurance must be based upon the LTV of the new Mortgage as provided
below, provided that in no event shall mortgage insurance be required if such
LTV is 80% or below.
a. Mortgage insurance is required at the higher of (i) the applicable Standard
MI Level, or (ii) the level that was required on the Existing Loan if the
mortgage insurance level was based on certain product risk characteristics,
except as provided in paragraph b. below.
b. For "Fannie-to-Fannie" Refinance Mortgages, if the Existing Loan was
originated with MI at a level lower than the Standard MI Level in
accordance with (i) Desktop Underwriter guidelines if the Existing Loan was
underwritten using Desktop Underwriter, or (ii) the provisions of the
Selling Guide, then mortgage insurance must be continued at the same
reduced level as required on the Existing Loan, provided that:
(i) the new Mortgage must meet the eligibility requirements applicable to
such reduced coverage level (except that any minimum FICO credit score
requirements are not applicable to the new Mortgage);
(ii) if such reduced coverage level required any additional conditions to
delivery, such as a loan level price adjustment or delivery under a
separate MBS contract with a higher guaranty fee, then such Mortgage is
subject to the payment of the same loan level price adjustment or delivery
at the higher guaranty fee and compliance with all other conditions to
delivery as provided in the guidelines applicable to such Mortgage
(e.g., if the Existing Loan was a Flexible 100 Mortgage, then the new
Mortgage must meet all requirements for delivery of a Flexible 100 Mortgage
per the guidelines as set forth in this Master Agreement); and
(iii) the new Mortgage must be identified at delivery using any applicable
special feature codes that were required to identify the Existing Loan as
having a reduced mortgage insurance coverage level.
c. Except as provided in paragraph b. above, all Mortgages with LTVs over 95%
must have mortgage insurance coverage at the Standard MI Level applicable
to mortgages with LTVs of 95.01-97%.
Loan Level Price Adjustments Applicable to Certain Mortgages
Loan level price adjustments will be due at delivery of certain Mortgages. The
price adjustment is due for any Mortgage that meets the criteria for assessment
of a loan level price adjustment as set forth in the Selling Guide. Some
examples of Mortgages that are subject to loan level price adjustments are:
Investor Property Mortgages (including Mortgages representing the refinance
of an Existing Loan that was originally an owner-occupied property or a
second home that converted to an investor property);
Mortgages secured by two-unit properties with LTVs of 90.01-95%; and
Mortgages subject to certain subordinate financing structures.
In addition to the example above, the Mortgage may require other loan level
price adjustments. The loan level price adjustment is equal to the product of:
(i) the percentage amount specified by Xxxxxx Xxx and (ii) the issue date
principal balance of such Mortgage.
Delivery Requirements
Execution of a new Xxxxxx Mae Form 1003, Uniform Residential Loan Application is
required.
Lender must provide the following required Housing Goals data elements
at delivery of the new Mortgage:
Monthly Income of the borrower(s)
Eligible Rents for units 1, 2, 3, 4 (where applicable)- (rent information must
be provided for each unit)
Number of Bedrooms for units 1, 2, 3, 4 (where applicable)- (number of bedrooms
must be provided for each unit)
Borrower(s) Race
It is essential that Lender obtain the current income of the borrower. This
income data will only be used for purposes of allowing Lender to comply with
obligatory government loan origination reporting requirements and will not be
used to verify income of the borrower for purposes of originating the new
Mortgage.
Special Feature Codes
For all "Fannie-to-Fannie" Refinance Mortgages originated under these terms and
conditions, Lender is required to enter Special Feature Code "288" when
submitting the Loan Schedule or the Schedule of Mortgages, as applicable, to
indicate the loan is currently owned by Xxxxxx Mae and is not a "cash-out"
refinance loan. Additionally, Lender must identify the Mortgage with all other
applicable special feature codes per the Selling Guide, or as otherwise
instructed by Xxxxxx Xxx, including Special Feature Codes "412" for Mortgages
that represent the refinance of a Flexible 100 Mortgage, "446" for Mortgages
that represent the refinance of a Flexible 80/20 Mortgage, and "206" for
Mortgages that represent the refinance of a Flexible 97 Mortgage.
PART B. "NonFannie-to-Fannie" Refinance Mortgages to 90%.
The following eligibility requirements relate to Mortgages that represent the
refinancing of conventional loans not currently owned by Xxxxxx Xxx, but
serviced by Lender ("`NonFannie-to-Fannie' Refinance Mortgages"). Lender must be
the seller of the Mortgage to Xxxxxx Xxx.
In addition to the provisions of the "Eligible Existing Loan Terms" paragraph of
the "General Terms" section above, any Existing Loan that required a loan level
price adjustment to be paid at delivery due to product risk characteristics or
other specially negotiated terms that are not referenced in the Xxxxxx Mae
Selling Guide is not eligible for refinance and delivery to Xxxxxx Xxx under
these guidelines, unless Xxxxxx Mae specifically approves the delivery of such
loans and they are delivered subject to such price adjustments and/or credit
enhancement as deemed appropriate by Xxxxxx Xxx.
Lender may deliver "NonFannie-to-Fannie" Refinance Mortgages that meet the
following criteria:
Seasoning of Mortgages
Minimum 12 months seasoning is required. The 12 months may be satisfied using
multiple mortgages, provided they were secured by the same property that secured
the new Mortgage and Lender was the servicer of all such previous mortgages.
Maximum LTVs
The maximum loan-to-value ratio shall be the lesser of (i) maximum original LTV
of the Existing Loan or (ii) 90%.
Cash Out to Borrower
None permitted. New loan balance may exceed Existing Loan current balance to pay
closing costs and lender fees, but may not exceed the original balance of the
Existing Loan.
Eligible Property Types
One unit, owner-occupied primary residences and second homes, including units in
condominium projects meeting Xxxxxx Xxx or Xxxxxxx Mac requirements and PUDs,
are eligible. Mortgages secured by manufactured housing are not eligible for
delivery under this Variance.
Subordinate Financing
An existing subordinate lien may remain in place, with re-subordination of
existing subordinate lien and subject to payment of any applicable loan level
price adjustment at delivery (see "Loan Level Price Adjustments Applicable to
Certain Mortgages" paragraph below). The maximum combined LTV is 90%.
Credit History
Payment History
Existing Loan must be current and have no 30-day delinquency in the most recent
12 months preceding the date of the new loan application. The 12 months may be
satisfied using multiple mortgages, provided they were secured by the same
property that secured the new Mortgage and Lender was the servicer of all such
previous mortgages. If the Existing Loan was assumed by the current borrower in
accordance with the "Assumptions" section of the General Terms above, then the
payment history requirement must be satisfied entirely by the current borrower.
Credit Report
New in-file report is required.
Minimum FICO Score
Notwithstanding any different FICO credit score requirements contained in the
Selling Guide, for salaried borrowers, the minimum FICO is 680 and for
self-employed borrowers, the minimum FICO is 700.
Bankruptcy
With respect to "NonFannie-to-Fannie" Refinance Mortgages, if the borrower has
filed for bankruptcy since the origination of the Existing Loan, then the
Mortgage is not eligible for delivery to Xxxxxx Xxx.
Income/Employment Verification
Salaried Borrower: Telephone verification of employment or paystub required.
Self-employed: Independent verification of the existence of the business
required. (e.g. telephone listing, licensing bureau, etc.) Signed IRS form 4506
or 8821 required.
Property Value Certification
(See also "Property Value Certification: Supplemental Provision" section in
"General Terms" above.)
Upon Lender's delivery of any "NonFannie-to-Fannie" Refinance Mortgage, Lender
hereby warrants that the value of the mortgaged property securing the Mortgage
has not declined since the origination of the loan documented by the Original
Underwriting File. Alternatively, Lender may obtain a new appraisal on which it
bases its warranty as to the current value of the property on either Xxxxxx Xxx
Form 1004 Uniform Residential Appraisal Report or the Xxxxxx Mae Form 2055
Desktop Underwriter Quantitative Analysis Appraisal Report. If Form 2055 is used
on loans delivered outside of Desktop Underwriter, an interior inspection is
also required.
NOTE: If Lender is unable to warrant that the value of the mortgaged property
securing the Mortgage has not declined since the origination of the loan
documented by the Original Underwriting File, either with or without a new
appraisal, then such mortgage is not eligible for delivery to Xxxxxx Xxx under
this Enhanced Streamlined Refinance process, regardless of the LTV.
Mortgage Insurance
Mortgage insurance must be based upon the LTV of the new Mortgage as provided
below, provided that in no event shall mortgage insurance be required if such
LTV is 80% or below.
a. Mortgage insurance is required at the higher of (i) the applicable Standard
MI Level, or (ii) the level that was required on the Existing Loan if the
mortgage insurance level was based on certain product risk characteristics,
except as provided in paragraph b. below.
b. For "NonFannie-to-Fannie" Refinance Mortgages, if the Existing Loan was (1)
underwritten using, and originated with MI at a level lower than the
Standard MI Level in accordance with the guidelines of, an automated
underwriting system provided such Existing Loan received a minimum
recommendation of "accept" from such other automated underwriting system,
and (2) such reduced coverage level required a loan level price adjustment
at delivery or delivery at a higher guaranty fee, then:
(i) (A) if the Existing Loan was subject to a loan level price adjustment
at delivery, then mortgage insurance must be continued at the same reduced
level as required on the Existing Loan, and the new Mortgage is subject to
the applicable Xxxxxx Xxx loan level price adjustment that would have been
applicable to the Existing Loan at delivery; or (B) if the Existing Loan
was subject to delivery at a higher guaranty fee, then mortgage insurance
at the applicable Standard MI Level is required;
(ii) such Mortgages must also comply with any other conditions to
delivery as provided in the guidelines applicable to such Mortgage;
(iii) the new Mortgage must meet Xxxxxx Mae's eligibility requirements
applicable to the reduced coverage level (except that any minimum FICO
credit score requirements are not applicable to the new Mortgage); and
(iv) the new Mortgage must be identified at delivery using any of Xxxxxx
Mae's applicable special feature codes that would identify the Existing
Loan as having a reduced mortgage insurance coverage level.
Loan Level Price Adjustments Applicable to Certain Mortgages
Loan level price adjustments will be due at delivery of certain Mortgages, for
example, Mortgages subject to certain subordinate financing structures. In
addition to this example, other Mortgages may require loan level price
adjustments. The price adjustment is due for any Mortgage that meets the
criteria for assessment of a loan level price adjustment as set forth in the
Selling Guide.
In addition to the example above, the Mortgage may require other loan level
price adjustments. The loan level price adjustment is equal to the product of:
(i) the percentage amount specified by Xxxxxx Mae and (ii) the issue date
principal balance of such Mortgage.
Delivery Requirements
Execution of a new Xxxxxx Xxx Form 1003, Uniform Residential Loan Application is
required.
Lender must provide the following required Housing Goals data elements at
delivery of the new Mortgage:
Monthly Income of the borrower
Eligible Rents for units 1, 2, 3, 4 (where applicable)- (rent information must
be provided for each unit)
Number of Bedrooms for units 1, 2, 3, 4 (where applicable)- (number of bedrooms
must be provided for each unit)
Borrower Race
Co-Borrower Race
Special Feature Codes
For all "NonFannie-to-Fannie" Refinance Mortgages originated under these terms
and conditions, Lender is required to enter Special Feature Code "289" when
submitting the Loan Schedule or the Schedule of Mortgages, as applicable, to
indicate the loan is currently NOT owned by Xxxxxx Xxx and is not a "cashout"
refinance loan. Additionally, Lender must identify the Mortgage with all other
applicable special feature codes per the Selling Guide, or as otherwise
instructed by Xxxxxx Mae.
VAR 3 InterestFirst Terms and Conditions
May 2003
In addition to conforming fixed-rate, level payment InterestFirst Mortgages as
provided in the Selling Guide, InterestFirst Mortgages may also be standard
non-convertible 5/1 ARMs, 7/1 ARMs, or 10/1 ARMs (collectively, "ARMs" or
"InterestFirst ARMs"). Lender may deliver InterestFirst ARMs in accordance with
the following:
1. InterestFirst ARMs must conform to the provisions of the Selling Guide
applicable to InterestFirst FRMs, with the following exceptions:
(a) For InterestFirst ARMs originated under purchase money or limited cash-out
refinance transactions, the maximum LTV (and combined LTV if there is
subordinate financing involved) ("CLTV") is 90% and the maximum home equity
combined loan-to-value ("HCLTV") is 95%.
(b) For InterestFirst ARMs originated under cash-out refinance transactions,
the maximum LTV and CLTV is 70% and HCLTV is 75%.
(c) InterestFirst ARMs have the following ARM plan numbers:
(i) If delivered for cash:
(A) 5/1 ARMs are Plans 660 and 2725
(B) 7/1 ARMs are Plans 750 and 2727
(C) 10/1 ARMs are Plans 1423 and 2729
(ii) If delivered for MBS:
(A) 5/1 ARMs are Plans 3226 (identical to Plan 660) and 3223 (identical
to Plan 2725). Please note that Plan 2725 InterestFirst ARMs
delivered for for cash have a 5% lifecap, whereas non-InterestFirst
Plan 2725 ARMs delivered for MBS may have a 6% lifecap.
(B) 7/1 ARMs are Plans 3227 (identical to Plan 750) and 3224 (identical
to Plan 2727)
(C) 10/1 ARMs are Plans 3228 (identical to Plan 1423) and 3225
(identical to Plan 2729)
Note: For operational purposes, the MBS plan numbers differ from the cash plan
numbers for the same ARM product, even though the plan characteristics are
identical. The ARM characteristics for the InterestFirst ARM plans are described
on Exhibit A attached hereto.
(d) InterestFirst ARMs must be documented using the Xxxxxx Xxx/Xxxxxxx Mac
uniform security instrument appropriate for the mortgaged property
jurisdiction, together with the following notes:
(i) LIBOR-indexed ARMs (Plans 2725, 2727, 2729, 3223, 3224 and 3225) must
be documented using the "InterestFirst Adjustable Rate Note" (Xxxxxx
Mae Form 3530); and
(ii) Treasury-indexed ARMs (Plans 660, 750, 1423, 3226, 3227 and 3228)
must be documented using the "InterestFirst Adjustable Rate Note"
(Xxxxxx Xxx Form 3531).
2. InterestFirst ARMs must be (a) submitted through Desktop Underwriter ("DU")
and receive an "Approve/Eligible" recommendation, and (b) documented and
originated in accordance with the DU requirements. InterestFirst ARMs
should be submitted through DU using ARM Plan category - FN Generic, 5 YR,
7 YR or 10 YR (as applicable for 5/1 ARMs, 7/1 ARMs, or 10/1ARMs).
3. InterestFirst ARMs may be delivered under Xxxxxx Mae's Negotiated
Transactions for Cash Purchase program or for MBS. InterestFirst ARMs with
different initial fixed interest rate periods may not be commingled in the
same cash commitment.
4. Lender must contact its customer account team for pricing applicable to
InterestFirst ARMs.
5. In addition to any loan level price adjustments applicable to the
InterestFirst ARMs submitted to DU for analysis, all InterestFirst ARMs
that are subject to subordinate financing and have LTVs over 75%,
regardless of the CLTV, will be subject to a loan level price adjustment
equal to the product of: (i) 0.25% and (ii) the issue date principal
balance of such Mortgage. In accordance with the procedures described in
the Selling Guide, the price adjustment(s) will be either (a) drafted from
Lender's designated drafting account, in the case of InterestFirst ARMs in
MBS pools, or (b) deducted from the purchase proceeds disbursed to Lender
at the time of sale to Xxxxxx Xxx, in the case of InterestFirst ARMs
delivered for cash.
6. Only the "Actual/Actual" remittance type is available for InterestFirst
ARMs delivered for cash.
7. For InterestFirst ARMs delivered for MBS:
(a) Lender is required to enter the following Future Feature Codes in the
MBS Pool Submission System (Poolsub):
(i) "143" for 5/1 ARMs,
(ii) "144" for 7/1 ARMs, and
(iii) "145" for 10/1 ARMs.
(b) The Pool Prefix will be:
(i) "WS" for Treasury-indexed ARMs (Plans 3226, 3227 and 3228); and
(ii) "LB" for LIBOR-indexed ARMs (Plans 3223, 3224 and 3225).
8. Except as modified by these Terms and Conditions, Lender represents and
warrants that InterestFirst ARMs delivered to Xxxxxx Mae shall conform to
the requirements of the Selling Guide and the Guide to Underwriting with
Desktop Underwriter, both as may be amended from time to time.
Exhibit "A"
Xxxxxx Xxx InterestFirst ARM Plans
ADDITIONAL INFORMATION FOR ALL STANDARD XXXXXX MAE ARM PLANS:
1. The Mortgage interest rate may never be lower than the ARM's Mortgage
Margin, regardless of any downward interest rate cap indicated above.
2. There is no lifetime interest rate floor, other than the ARM's Mortgage
Margin.
3. To be pooled as a standard Xxxxxx Xxx ARM plan without a special
disclosure, the ARM must:
Be due on the first day of the month;
Have an original maturity no longer than 30 years; and
Provide for calculation of the new interest rate by rounding the sum of the
Index plus the ARM's Mortgage Margin to the nearest one-eighth (0.125) of
1.00%.
If otherwise, a special disclosure will be required.
Index Terminology Legend
Trsy sec: Treasury indexes are weekly averages, adjusted to a constant maturity.
LIBOR: London Interbank Offered Rate as published by Xxxxxx Mae or The Wall
Street Journal, as indicated above.
VAR 4 Use of Other Automated Underwriting System.
Xxxxxx Xxx recognizes that Lender may originate or purchase from third parties
Mortgages that have been submitted for evaluation to an automated underwriting
system ("AUS") other than DU. Lender may deliver to Xxxxxx Mae Mortgages
processed through a third-party system in accordance with the provisions of this
Variance, provided that Lender acknowledges and agrees not to use these
provisions in any manner that would adversely select or harm Xxxxxx Xxx and:
1. The Mortgages meet Xxxxxx Mae's eligibility requirements described in the
Xxxxxx Xxx Selling Guide, as modified by the Master Agreement or the DU
Guide, as any of the foregoing may be amended from time to time. Mortgages
secured by manufactured housing are not eligible for delivery under this
Variance.
2. Such Mortgages must receive a recommendation of "standard accept" (either
full or streamlined documentation levels) or "accept plus" from the other
AUS.
3. All data pertaining to the Mortgage is complete and accurate, and all data
on which the underwriting recommendation of the other AUS was based remain
unchanged as of the closing date for such Mortgage.
4. Such Mortgages must be documented and closed in accordance with the
requirements of the other AUS, except with respect to the appraisal
requirements, as provided in Paragraph 13 below. Verification of all such
data is provided with the delivered Mortgage loan file and such
verification complies with the requirements of the other AUS. Lender must
take all appropriate action in response to the verification
messages/approval conditions that appear in the "findings" report that the
other AUS produces with respect to the related Mortgage loan application
prior to the closing of the Mortgage, with proper documentation in the loan
file. Lender represents and warrants that copies of all reports generated
by the other system will be included in the loan file, and that Lender is
not prohibited from providing such copies.
5. With the exception of Mortgages that are otherwise eligible for delivery
under the Master Agreement or DU, Mortgages receiving a recommendation of
"standard accept" (either full or streamlined documentation levels) or
"accept plus" from the other AUS are not eligible for delivery under this
Variance if the recommendation (1) includes a requirement for additional
fees, credit enhancements, or other special conditions, except as otherwise
expressly provided in Paragraph 9 below, or (2) the Mortgage insurance
coverage level obtained is lower than required per Xxxxxx Mae's Selling
Guide, even if a reduced level of coverage is permitted by the other AUS
recommendation.
6. Lender and Xxxxxx Xxx agree that Xxxxxxx Mac's Loan Prospector is the AUS
approved under this Variance.
7. For all Mortgages, Lender must enter the borrower's representative FICO
credit score into the appropriate data field when submitting the Mortgage
to Xxxxxx Xxx in accordance with the Xxxxxx Mae Selling Guide.
8. Except as otherwise provided herein, Lender makes all applicable selling
representations and warranties as required by the Xxxxxx Xxx Selling Guide
and the Mortgage Selling and Servicing Contract by and between Lender and
Xxxxxx Mae.
9. The provisions of this Variance do not apply to any Mortgage product that
is currently required by Xxxxxx Xxx to be submitted to DU for evaluation
("DU-Only Products") (e.g., Flexible Mortgages), or to Mortgages under any
initiative or pilot where Xxxxxx Mae requires a particular DU
recommendation in order for the Mortgages to be delivered as part of the
initiative and, in each such case, such Mortgages must be processed through
DU and receive an acceptable recommendation in order to be eligible for
delivery to Xxxxxx Xxx, except, with respect to DU-Only Products, as
follows: if there is a Mortgage product available in the other AUS that is
equivalent to a DU-Only Product (as determined by Xxxxxx Mae), then such
Mortgage is eligible for delivery to Xxxxxx Xxx, subject at delivery to the
(1) payment of all loan level price adjustments or special all-in yield
pricing applicable to the equivalent DU-Only Product, and (2)
identification by any special feature code applicable to the equivalent
DU-Only Product.
10. At delivery, Lender must:
(a) identify all Mortgages underwritten using an AUS other than DU in
accordance with this Variance by inserting the following Special
Feature Code(s) on the Loan Schedule or Schedule of Mortgages, as
applicable: (i) "361" for all Mortgages, and (ii) any other special
feature code loan that would be required if the Mortgage had been
submitted to DU prior to delivery; and
(b) pay all applicable loan level price adjustments required under Xxxxxx
Mae's eligibility criteria.
11. Lender shall continue to make all representations and warranties as if such
underwriting documentation complied with the requirements described in the
Xxxxxx Xxx Selling Guide, as modified by the Master Agreement.
12. Xxxxxx Mae will analyze the credit risks associated with such Mortgages and
will provide Lender with the results of this analysis. Upon request, Lender
will provide to Xxxxxx Xxx any data or information relating to the
Mortgages delivered to Xxxxxx Mae which were processed through the other
AUS, and Lender represents and warrants that Lender is not prohibited from
providing such data or information to Xxxxxx Xxx. If Xxxxxx Mae's analysis
indicates that a significant number of such Mortgages contained a high risk
of default, Lender and Xxxxxx Mae will work together to identify and
implement product or process changes to reduce the number of such high risk
Mortgages expected to be delivered during the following quarter (or, in
lieu of product or process changes, Lender and Xxxxxx Xxx may discuss
prospective price adjustments to compensate Xxxxxx Mae for the risks
associated with such Mortgages). If Xxxxxx Xxx and Lender cannot agree on
the appropriate actions to be taken during the following quarter to address
high risk Mortgages, then Xxxxxx Mae reserves the right to discontinue
accepting such Mortgages.
13. With respect to all Mortgages underwritten using the other AUS, the
property value must be supported by an interior and exterior appraisal
performed using the Desktop Underwriter Quantitative Analysis Appraisal
Report (Form 2055) in accordance with the requirements in the DU Guide,
regardless of the finding by the other AUS. If a Mortgage is not eligible
for Form 2055, per the DU Guide, then a full appraisal in accordance with
the Xxxxxx Xxx Selling Guide is required.
14. If Xxxxxx Mae determines that Lender is using these provisions in any
manner that is adversely selecting or harming Xxxxxx Xxx, then Xxxxxx Xxx
may terminate Lender's ability to deliver Mortgages underwritten by the
other AUS upon 90-days notice.
VAR 5 Power of Attorney
Lender may deliver Mortgages closed in the name of a third party originator and
sold to Lender, for which Lender has executed the intervening assignments and
endorsed the Mortgage notes to itself pursuant to a valid power of attorney from
the third party originator, so long as:
(a) Lender is utilizing such Power of Attorney solely on an exception basis in
those cases where the third party originator failed to endorse the note
and/or execute the assignment of Mortgage.
(b) The Power of Attorney is in compliance with the requisite state law and was
properly recorded in the public recording office where the Mortgage and
assignment of Mortgage was recorded, prior to the assignment of Mortgage
being recorded.
(c) Lender shall retain an original executed Power of Attorney from the third
party originator and attach a copy to each such Mortgage note delivered to
Xxxxxx Mae or to Lender's document custodian.
(d) In connection with the delivery of each Mortgage, Lender represents and
warrants that the Power of Attorney is still in effect and is for the sole
purpose of specifically authorizing the execution of the transfer of
documents to the holder of the Power of Attorney for the specified
Mortgage(s).
(e) Lender is not relieved of any representations and warranties contained in
the Xxxxxx Xxx Selling or Servicing Guides, or the Mortgage Selling and
Servicing Contract between Xxxxxx Mae and Lender.
Maximum Percentage: The aggregate outstanding principal amount of all such
Mortgages delivered pursuant to this variance shall not exceed the amount equal
to 5% of all Mortgages delivered pursuant to this Master Agreement.
VAR 6 Desktop Underwriter 'Expanded Approval with Timely Payment RewardsTM'
Initiative
June 2003
The following terms and conditions apply only to Mortgages originated and
delivered to Xxxxxx Xxx pursuant to the Desktop Underwriter(R) "Expanded
Approval with Timely Payment RewardsTM" Initiative (hereinafter referred to as
"the Initiative"). Mortgages originated under the Initiative must have been
submitted to the Expanded Approval version of Desktop Underwriter for analysis.
Lender may deliver Mortgages originated under the Initiative in accordance with
the following:
1. Eligibility.
(a) General. Each Mortgage must comply with the requirements of the "Expanded
Approval with Timely Payment Rewards Lender Guide" (the "EA Lender Guide"),
as may be amended from time to time, as supplemented by the following
specific provisions below. A breach of any of such eligibility criteria
shall be deemed to be a breach of warranty by Lender, as provided in the
Selling Guide. The EA Lender Guide may be accessed through xXxxxxxXxx.xxx,
under "Mortgage Product Information."
(b) Recommendation Levels.
(i) Mortgages receiving an "EA-I/Eligible," "EA-II/Eligible," or
"EA-III/Eligible" recommendation in the Desktop Underwriter Underwriting
Findings Report are eligible for delivery in accordance with the terms
hereof.
(ii) Any Mortgage receiving a recommendation of "Refer W Caution/IV" is
ineligible for delivery to Xxxxxx Mae.
(iii) Generally, Mortgages that receive an "EA/Ineligible" recommendation
are not deliverable to Xxxxxx Xxx. If any such Mortgage meets the
requirements of an applicable Product Variance or a Community Lending
Product Variance as described in Paragraph 4(b) below, or a negotiated
underwriting variance in the Master Agreement ("Underwriting Variance")
providing for specific eligibility requirements, as described in Paragraph
4(a) below, then such Mortgages are only deliverable in accordance with the
provisions of Paragraph 4 below.
(c) Product Eligibility.
See the EA Lender Guide for all product eligibility information.
(d) Definitions.
As used herein, these terms have the following meanings:
(i) "EA-I Mortgages" means Mortgages receiving a recommendation of
"EA-I/Eligible" or "EA-I/Ineligible," only if an Underwriting Variance per
Paragraph 4(a) is applicable.
(ii) "EA-II Mortgages" means Mortgages receiving a recommendation of "EAII/
Eligible" or "EA-II/Ineligible," only if an Underwriting Variance per
Paragraph 4(a) is applicable.
(iii) "EA-III Mortgages" means Mortgages receiving a recommendation of "EAIII/
Eligible" or "EA-III/Ineligible," only if an Underwriting Variance per
Paragraph 4(a) is applicable.7
(e) ARM Margins.
Notwithstanding the provisions of the Selling Guide, eligible ARMs may have
mortgage margins in excess of 300 basis points, up to the following maximum
amounts;
(i) 325 basis point for EA-I Mortgages;
(ii) 350 basis points for EA-II Mortgages; and
(iii) 387.50 basis points EA-III Mortgages.
2. Limited Waiver of Warranties.
Mortgages receiving the "EA-I/Eligible," "EA-II/Eligible," and
"EA-III/Eligible" recommendation in the Desktop Underwriter Underwriting
Findings Report are eligible for the "Limited Waiver of Representations and
Warranties," as set forth in the Selling Guide, Part I, Chapter 2, Section
202.02, provided that each such Mortgage:
(a) is subject to all applicable requirements, restrictions, stipulations, and
limitations specified in this Master Agreement, the applicable Pool
Purchase Contract and the Guide to Underwriting with Desktop Underwriter,
as amended from time to time (the "Desktop Underwriter Guide"), as modified
by this Agreement, which may include the purchase price or guaranty fee,
any price adjustment, or similar charge and the aggregate outstanding
principal amount; and
(b) meets all applicable product eligibility requirements.
3. Timely Payment Rewards Feature.
Only fixed rate,
fully amortizing, level payment EA-II Mortgages and EA-III Mortgages may be
originated with the Timely Payment Rewards feature, which includes an interest
rate reduction provision, subject to the following:
(a) Such Mortgages must be delivered to Xxxxxx Mae for cash.
(b) The Mortgage must meet all applicable product eligibility requirements.
(c) The Mortgage must be originated with the Timely Payment Rewards Addendum to
the Note (Xxxxxx Xxx Form 1410) (the "Addendum") and the Timely Payment
Rewards Rider to the Security Instrument (Xxxxxx Mae Form 1412) (the
"Rider").
(d) The mortgagor must meet the eligibility criteria set forth in the Addendum
and the Rider. The Mortgage servicer will be responsible for complying with
the provisions of the EA Lender Guide relating to interest rate reduction,
including evaluating the mortgagor's payment history on the second, third
and/or fourth anniversary date of the scheduled due date of the first full
installment payment due under the Note ("Anniversary Date") to determine if
the mortgagor has met the eligibility criteria for the interest rate
reduction.
4. Mortgages with Product Variances or Underwriting Variances.
(a) Mortgages that receive an "EA/Ineligible" recommendation that were
originated with Underwriting Variances are only deliverable to Xxxxxx Xxx
with Xxxxxx Mae's prior approval. Xxxxxx Xxx must approve combining the
Underwriting Variance with the Initiative, even if the Underwriting
Variance has been approved under this Master Agreement for non-Initiative
mortgages. The specific reason(s) for ineligibility must be permitted under
the terms of the Underwriting Variance. With Xxxxxx Mae's prior approval,
Lender may deliver such Mortgages, provided that such Mortgages:
(i) are not eligible for the Limited Waiver of Warranties;
(ii) must meet all of the terms of the Initiative specified herein and the terms
applicable to the Underwriting Variance;
(iii) must be identified with the applicable special feature code for the
Initiative in addition to any special feature codes that may be applicable
under the terms of the Underwriting Variance; and
(iv) are subject to the applicable loan level price adjustments for the
Initiative, in addition to any loan level price adjustments that may be
applicable under the terms of the Underwriting Variance.
(b) Certain Mortgages receiving any of the three levels of "EA/Eligible"
recommendations or an "EA/Ineligible" recommendation in Desktop Underwriter
may also meet the requirements of a product, initiative or pilot that is
available to Lender under the terms of this Master Agreement (a "Product
Variance"). If the Product Variance is a Community Lending or affordable
housing initiative or pilot (a "Community Lending Product Variance"), then
Lender may disregard the "EA" recommendation and underwrite such Mortgage
outside of Desktop Underwriter in accordance with the provisions of the
Community Lending Product Variance, provided that such Mortgages:
(i) are not eligible for the Limited Waiver of Warranties;
(ii) must meet all of the terms of the Community Lending Product Variance;
(iii) must be identified only with the special feature codes applicable to the
Community Lending Product Variance (the special feature codes applicable to
the Initiative shall not apply to such Mortgages); and
(iv) are subject to the pricing and any loan level price adjustments applicable
to the Community Lending Product Variance (the loan level price adjustments
applicable to the Initiative shall not apply to such Mortgages).
Mortgages receiving any of the three levels of "EA/Eligible" recommendations or
an "EA/Ineligible" recommendation in Desktop Underwriter that meet the
requirements of a Product Variance that is available to Lender under the terms
of this Master Agreement, but that is not a Community Lending Product Variance,
may be delivered to Xxxxxx Xxx only with Xxxxxx Mae's prior approval.
(c) Any variance for the waiver of any of Xxxxxx Mae's standard loan level
price adjustments shall not apply to Mortgages originated under the
Initiative.
5. Delivery and Pricing.
(a) Loan Level Price Adjustments for MBS Delivery.
(i) Each EA-I Mortgage, EA-II Mortgage and EA-III Mortgage delivered for MBS is
subject to payment of the applicable base guaranty fee, as set forth in the
applicable MBS pool purchase contract, in addition to payment of the
applicable Initiative loan level price adjustment as shown below, plus all
other loan level price adjustments that may be applicable to such Mortgage.
Additionally, Lender shall identify all EA-I Mortgages, EA-II Mortgages and
EA-III Mortgages at delivery with the applicable Special Feature Code as
shown below.
(ii) Lender must set up a bank account from which Xxxxxx Mae can draft loan
level price adjustments in accordance with the requirements of the Selling
Guide, as amended from time to time.
(iii) Delivery of Mortgages under the Initiative shall be subject to all
applicable loan level price adjustments as required by the Selling Guide
and the Expanded Approval Eligibility Matrix, in the Desktop Underwriter
Guide, both as amended from time to time. In addition, Mortgages under the
Initiative are subject to the payment of the general Desktop Underwriter
usage fees outlined in the Desktop Underwriter Seller/Servicer Software
License and Subscription Agreement between Lender and Xxxxxx Xxx.
(iv) Please note that any loan level price adjustment associated with the
delivery and profile of Mortgages underwritten through Desktop Underwriter
are subject to change at any time during the term of this Master Agreement.
These changes will be reflected in the Desktop Underwriter Guide or other
written notice from Xxxxxx Mae.
(v) Mortgages described in Paragraph 5(b)(ii) below are not eligible for
delivery for MBS.
(b) Cash Execution.
(i) All EA-I Mortgages, EA-II Mortgages and EA-III Mortgages are eligible for
delivery for cash.
(ii) All EA-II Mortgages and EA-III Mortgages that include the Timely Payment
Rewards feature are eligible for delivery only for cash.
(iii) In addition to the cash pricing described in subparagraph (iv) below, each
Mortgage is subject to the payment of all other loan level price
adjustments that may be applicable to such Mortgage. Lender shall identify
all Mortgages at delivery with the applicable Special Feature Code as shown
below.
(iv) To obtain Xxxxxx Xxx xxxx pricing, Lender may go to xXxxxxxxxx.xxx and
select "eCommitting" under the Lending and Servicing menu or call the Cash
Commitment Window for separate commitments at 0-000-000-0000 and select
Option 5. At delivery Lender must advise the Cash Commitment Window:
(A) that the subject commitment is for the Initiative, and
(B) that the subject risk level is either I, II or III (indicate which one),
and
(C) if applicable, that the Mortgage includes the Timely Payment Rewards rate
reduction feature, and
(D) of the applicable Special Feature Code(s) and all applicable loan level
price adjustments as required by the Selling Guide and the Expanded
Approval Eligibility Matrix, in the Desktop Underwriter Guide, both as
amended from time to time; and
(E) the applicable mortgage insurance level; and
(F) of the mortgage term (10-year, 15-year, 20-year, or 30-year), and
(G) of the mortgage product (fixed-rate mortgage or the applicable ARM plan),
and
(H) of the LTV of the Mortgage.
(v) Delivery of Mortgages under the Initiative shall be subject to all
applicable loan level price adjustments as required by the Selling Guide
and the Expanded Approval Eligibility Matrix, in the Desktop Underwriter
Guide, both as amended from time to time. In addition, Mortgages under the
Initiative are subject to the payment of the general Desktop Underwriter
usage fees outlined in the Desktop Underwriter Seller/Servicer Software
License and Subscription Agreement between Lender and Xxxxxx Mae.
(vi) Please note that the cash price and/or any other loan level price
adjustment associated with the delivery and profile of Mortgages
underwritten through Desktop Underwriter are subject to change at any time
during the term of this Master Agreement. These changes will be reflected
in the Desktop Underwriter Guide or other written notice from Xxxxxx Xxx.
6. General.
(a) Mortgage Insurance.
(i) The terms and conditions on which Xxxxxx Mae has agreed to acquire the
Mortgages originated pursuant to the Initiative assume that additional mortgage
insurance is obtainable for the Mortgages after delivery of the Mortgages to
Xxxxxx Xxx. Lender represents and warrants that none of the Mortgages have been
originated or serviced with fraud, misrepresentation, or negligence, or with any
act that is dishonest, criminal, or knowingly wrongful, that would (A) cause a
mortgage insurer to decline to insure a Mortgage, or (B) entitle a mortgage
insurer to deny a claim pursuant to a mortgage insurance policy exclusion to
coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(ii) A minimum of 35% mortgage insurance coverage is required for (A) all
Mortgages with LTVs greater than 95%, and (B) all Mortgages with LTVs of
90.01-95% originated using flexible sources of funds for the downpayment.
(iii) Mortgages originated with mortgage insurance under the "Reduced MI"
Coverage Option or the "Lower-Cost MI" Coverage Option (all as described in the
Selling Guide) are not eligible for delivery under the Initiative.
(b) Subordinate Financing.
Mortgages may be subject to subordinate financing in accordance with the EA
Lender Guide. Mortgages subject to subordinate financing are subject to any
applicable loan level price adjustments, in addition to any other loan level
price adjustments that may apply.
(c) Loan Level Price Adjustments.
All loan level price adjustments referenced herein will be equal to the
percentage amount specified multiplied by the issue date principal balance of
the Mortgage, in the case of Mortgages delivered for MBS and the delivery date
principal balance, for mortgages delivered for cash.
(d) Refinances.
Mortgages delivered to Xxxxxx Mae under the Initiative are not eligible for
subsequent refinancing using any Xxxxxx Xxx Enhanced Streamlined Refinance
process. In order for such mortgages to be eligible for delivery to Xxxxxx Mae,
these cases must be submitted to Desktop Underwriter for credit risk analysis.
(e) Servicing.
Lender agrees to service Mortgages originated pursuant to the Initiative in
accordance with the provisions of the "EA Lender Guide," as amended from time to
time.
(f) EA-III Mortgages for MBS Delivery.
Effective with
EA-III Mortgages delivered on or after May 1, 2003, EA-III Mortgages are
eligible for delivery under Xxxxxx Mae's MBS program. EA-III Mortgages delivered
prior to May 1, 2003, are not eligible for MBS delivery (even in pools with May
2003 issue dates).
SPECIAL REQUIREMENTS
This Special Requirements Attachment is attached to and made a part
of the Master Agreement. Under this Master Agreement, Lender may sell Mortgages
originated in accordance with the following special requirements. Unless
otherwise specified, the following special requirements apply only to
conventional, first lien Mortgages.
TABLE OF CONTENTS
GEMICO Supplemental Primary Secondary Market Policy (07/02)
MGIC Choice Coverage Secondary Market Policy (07/02)
pmiPremier Secondary Market Coverage Policy (12/02)
RMIC Market Flex Secondary Market Policy (07/02)
Radian Secondary Market Coverage Policy (07/02)
Delivery Requirement
GEMICO Supplemental Primary Secondary Market Policy 07/02
Lender may deliver conventional Mortgages to Xxxxxx Mae that are covered by a GE
Mortgage Insurance Corporation ("GEMICO") Supplemental Primary Secondary Market
Policy ("Secondary Market Policy"). Mortgages delivered for coverage under this
Policy are referred to as Secondary Market Coverage Mortgages ("SMC Mortgages")
and may be delivered in accordance with the following:
1. Eligible Products: Eligible SMC Mortgages must be originated pursuant to
standard Xxxxxx Xxx guidelines, as may be amended by this Master Agreement, and
are described as follows:
(a) Eligible SMC Mortgages are limited to the following:
(i) fixed-rate level-payment, fully amortizing Mortgages;
(ii) 7-year balloon Mortgages;
(iii) 5/1 ARMs, 7/1 ARMs, and 10/1 ARMs (Xxxxxx Mae's standard ARM plans); or
(iv) Mortgages with LTVs of 95.01-100% that are Xxxxxx Xxx products that Lender
is approved to deliver under this Master Agreement and are approved for
SMC;
(v) Flexible Mortgages that receive an "Eligible" recommendation in Desktop
Underwriter and are otherwise eligible for SMC; and
(vi) such other mortgage products that may be specifically approved in writing
by GEMICO and are eligible pursuant to standard Xxxxxx Mae guidelines, as
may be amended by this Master Agreement.
(b) The following Mortgages are ineligible for SMC:
(i) Mortgages originated under Xxxxxx Mae's Desktop Underwriter "Expanded
Approval with Timely Payment Rewards" Initiative.
(ii) Any mortgage that receives an "A Minus" mortgage insurance premium rate
from the mortgage insurer.
2. Eligible LTV and Primary Mortgage Insurance Coverages: All SMC Mortgages must
have obtained a mortgage insurance premium rate from the mortgage insurer's
traditional ("A" paper) rate card, and meet the following requirements:
(a) SMC Mortgages must have mortgage insurance coverage based on the
loan-to-value ratio ("LTV") of such Mortgage equal to the greater of:
(i) the minimum level applicable to the Mortgage as required by Xxxxxx Mae,
taking into account any higher mortgage insurance requirements applicable
to any specific mortgage products (e.g., Flexible Mortgages, etc.), which
may be higher than for standard mortgage products; or
(ii) the minimum applicable SMC eligibility level set forth in Paragraph
2(b) below.
(b) Notwithstanding any Xxxxxx Xxx minimum mortgage insurance requirements to
the contrary, Mortgages must have the following minimum mortgage insurance
coverage in order to be eligible for SMC:
(i) 12% for 80.01-85% LTVs;
(ii) 17% for 85.01-90% LTVs;
(iii) 25% for 90.01-95% LTVs; and
(iv) 30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a)
above -- refer to the specific product guidelines or terms and conditions
for any higher required MI coverage that may be applicable.)
(v) Note: Any Mortgage originated with mortgage insurance coverage lower than
the minimum coverage listed above in accordance with a Desktop Underwriter
recommendation, either with or without a loan level price adjustment, is
ineligible for SMC.
(c) Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00%
that are originated with mortgage insurance coverages, per the Selling
Guide, that are lower than the required coverage levels described in
Paragraphs 2(a) and (b) above are ineligible for delivery as SMC Mortgages.
3. Loan Level Price Adjustments: For all SMC Mortgages, Lender must remit any
appropriate loan-level price adjustments or, if applicable, under an alternative
all-in yield option (productspecific guaranty fee). Under the all-in yield
option, the SMC execution improvement will be deducted from the product-specific
guaranty fee.
4. Seasoning Requirements: No SMC Mortgage may have been originated more than 12
months prior to delivery to Xxxxxx Mae nor have been originated prior to
September 1, 2001.
5. Additional Requirements:
(a) All SMC Mortgages delivered to Xxxxxx Xxx must be covered by standard
GEMICO primary mortgage insurance, which premiums must be paid in
installments by the borrower under a single-premium, annual premium,
monthly premium or "zero monthly" payment plan. Premiums may not be
lender-paid.
(b) If Xxxxxx Mae is unable to obtain coverage under a satisfactory GEMICO
Secondary Market Policy, then Xxxxxx Xxx may discontinue purchasing SMC
Mortgages under this Master Agreement ten days after giving Lender notice.
(c) Lender represents and warrants that no SMC Mortgage it delivers pursuant to
this Master Agreement at the time of acquisition by Xxxxxx Mae is: (i)
included in a captive reinsurance arrangement between Lender and GEMICO, or
covered by a GSE pool insurance policy issued by GEMICO or some other
GEMICO risk-sharing or profit sharing arrangement; (iii) insured under any
GEMICO "A Minus" or "Alt A" premium rate plan, (iv) insured under any
GEMICO policy with primary mortgage insurance premiums pursuant to affinity
rates, credit union rates or relocation rates, or (v) insured with GEMICO
discounted mortgage insurance rates.
(d) Each SMC Mortgage delivered to Xxxxxx Xxx under this Master Agreement must
be originated using the applicable Xxxxxx Mae/Xxxxxxx Mac Uniform Security
Instrument (with effective date on or after 01/01).
(e) Lender will be permitted to deliver SMC Mortgages to Xxxxxx Mae under this
Master Agreement that are eligible for coverage under the GEMICO Secondary
Market Policy for the period commencing with Lender's first delivery of SMC
Mortgages and ending on the expiration date of the Master Agreement.
Notwithstanding the foregoing, Xxxxxx Xxx may cease purchasing such SMC
Mortgages under this Master Agreement 60 days after giving Lender written
notice of cessation.
(f) Lender represents and warrants that: (i) it has a currently existing
standard primary mortgage insurance master policy with GEMICO and that it
shall maintain such policy with GEMICO as long as it continues to sell or
service SMC Mortgages covered by the GEMICO Secondary Market Policy, or
(ii) concurrent with the sale of SMC Mortgages to Xxxxxx Mae, it will
transfer servicing to a servicer that has a standard primary mortgage
insurance master policy with GEMICO and that has agreed with Xxxxxx Xxx to
maintain such policy with GEMICO as long as it services SMC Mortgages
covered by the GEMICO Secondary Market Policy.
(g) With respect to each SMC Mortgage, Lender must maintain in effect (subject
to Xxxxxx Mae's policies) the original certificate or electronic record
evidencing coverage under its GEMICO standard primary mortgage insurance
master policy. Lender represents and warrants that any transfers of
servicing of SMC Mortgages covered by this provision shall only be to a
servicer that has an existing standard primary mortgage insurance master
policy with GEMICO and Lender shall notify the transferee that transferee
will be obligated to Xxxxxx Xxx to maintain the original certificate
number. Furthermore, Lender must comply with all of the remittance and
claim filing requirements related to the GEMICO standard primary mortgage
insurance master policy.
6. SMC Mortgages described in this Part of the Special Requirements section
that are delivered for MBS must be delivered under Pool Purchase Contract
No(s). P09042, P09043, P09044, P09045.
7. Mortgages Ineligible for Secondary Market Policy Coverage: In the event a
mortgage delivered as an SMC Mortgage is determined by GEMICO to be
ineligible for GEMICO Secondary Market Policy coverage, then Xxxxxx Mae may
require either that Lender immediately (i) repurchase such mortgage, or
(ii) remit to Xxxxxx Xxx an amount equal to the present value of the
difference between the base guaranty fee under the applicable Pool Purchase
Contract referenced above and the base guaranty fee which would have been
applicable to the mortgage if delivered without coverage under the GEMICO
Secondary Market Policy, multiplied by the issue date principal balance of
the mortgage.
MGIC Choice Coverage Secondary Market Policy (07/02)
Lender may deliver conventional Mortgages to Xxxxxx Mae that are covered by a
Mortgage Guaranty Insurance Corporation ("MGIC") Choice Coverage Secondary
Market Policy ("Secondary Market Policy"). Mortgages delivered for coverage
under this Policy are referred to as Secondary Market Coverage Mortgages ("SMC
Mortgages") and may be delivered in accordance with the following:
1. Eligible Products: Eligible SMC Mortgages must be originated pursuant to
standard Xxxxxx Xxx guidelines, as may be amended by this Master Agreement, and
are described as follows:
(a) Eligible SMC Mortgages are limited to the following:
(i) fixed-rate, level-payment, fully amortizing mortgages;
(ii) all adjustable rate mortgages originated under Xxxxxx Mae's standard ARM
plans;
(iii) 7- year balloon mortgages;
(iv) Mortgages with LTVs of 95.01-100% that are Xxxxxx Xxx products that Lender
is approved to deliver under this Master Agreement and are approved for
SMC;
(v) Flexible Mortgages that receive an "Eligible" recommendation in Desktop
Underwriter and are otherwise eligible for SMC; and
(vi) such other mortgage products that may be specifically approved in writing
by MGIC and are eligible pursuant to standard Xxxxxx Mae guidelines, as may
be amended by this Master Agreement.
(b) Mortgages originated under Xxxxxx Mae's Desktop Underwriter "Expanded
Approval with Timely Payment Rewards" Initiative are ineligible for SMC.
2. Eligible LTV and Primary Mortgage Insurance Coverages: All SMC Mortgages must
have obtained a mortgage insurance premium rate from the mortgage insurer's
traditional ("A" paper) rate card, unless otherwise specifically approved in
writing by MGIC, and meet the following requirements:
(a) SMC Mortgages must have mortgage insurance coverage based on the
loan-to-value ratio ("LTV") of such Mortgage equal to the greater of:
(i) the minimum level applicable to the Mortgage as required by Xxxxxx Mae,
taking into account any higher mortgage insurance requirements applicable
to any specific mortgage products (e.g., Flexible Mortgages, etc.), which
may be higher than for standard mortgage products; or
(ii) the minimum applicable SMC eligibility level set forth in Paragraph 2(b)
below.
(b) Notwithstanding any Xxxxxx Xxx minimum mortgage insurance requirements to
the contrary, Mortgages must have the following minimum mortgage insurance
coverage in order to be eligible for SMC:
(i) 12% for 80.01-85% LTVs;
(ii) 17% for 85.01-90% LTVs;
(iii) 25% for 90.01-95% LTVs; and
(iv) 30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a)
above -- refer to the specific product guidelines or terms and conditions
for higher required MI coverage that may be applicable.)
(v) Note: Any Mortgage originated with mortgage insurance coverage lower than
the minimum coverage listed above in accordance with a Desktop Underwriter
recommendation, either with or without a loan level price adjustment, is
ineligible for SMC.
(c) Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00%
that are originated with mortgage insurance coverages, per the Selling
Guide that are lower than the required coverage levels described in
Paragraphs 2(a) and (b) above are ineligible for delivery as SMC Mortgages.
3. Loan Level Price Adjustments: For all SMC Mortgages, Lender must remit any
appropriate loan-level price adjustments or, if applicable, under an alternative
all-in yield option (productspecific guaranty fee). Under the all-in yield
option, the SMC execution improvement will be deducted from the product-specific
guaranty fee.
4. Seasoning Requirements: No SMC Mortgage may have been originated more than 12
months prior to delivery to Xxxxxx Mae.
5. Additional Requirements:
(a) All SMC Mortgages delivered to Xxxxxx Xxx must be covered by standard MGIC
primary mortgage insurance, which premiums must be paid in installments by
the borrower (i.e. it may not be a single premium payment or lender-paid).
(b) If Xxxxxx Mae is unable to obtain coverage under a satisfactory MGIC
Secondary Market Policy, then Xxxxxx Xxx may discontinue purchasing SMC
Mortgages under this Master Agreement ten days after giving Lender notice.
(c) Lender represents and warrants that no SMC Mortgage it delivers pursuant to
this Master Agreement at the time of acquisition by Xxxxxx Mae is: (i)
subject to a captive reinsurance or other risk sharing agreement to which
MGIC is a party, (ii) insured under any mortgage trust supplemental (pool)
policy issued by MGIC, (iii) insured under any "A Minus" or subprime
premium rate program, (iv) insured under any relocation, credit union,
affinity, CALPERS or any other premium rate plan of MGIC with a premium
rate that is lower than MGIC's standard premium rate for a comparable loan
with comparable coverage, or (v) insured under any other program, structure
or plan for which a premium rate adjustment has been made and with respect
to which MGIC has provided the Lender at least thirty (30) days written
notice that it does not intend to insure under the MGIC Secondary Market
Policy.
(d) Each SMC Mortgage delivered to Xxxxxx Xxx under this Master Agreement must
be originated using the applicable Xxxxxx Mae/Xxxxxxx Mac Uniform Security
Instrument (with effective date on or after 01/01).
(e) Lender will be permitted to deliver SMC Mortgages to Xxxxxx Mae under this
Master Agreement that are eligible for coverage under the MGIC Secondary
Market Policy for the period commencing with Lender's first delivery of SMC
Mortgages and ending on the expiration date of the Master Agreement.
Notwithstanding the foregoing, Xxxxxx Xxx may cease purchasing such SMC
Mortgages under this Master Agreement 60 days after giving Lender written
notice of cessation.
(f) Lender represents and warrants that: (i) it has a currently existing
standard primary mortgage insurance master policy with MGIC and that it
shall maintain such policy with MGIC as long as it continues to sell or
service SMC Mortgages covered by the MGIC Secondary Market Policy, or (ii)
concurrent with the sale of SMC Mortgages to Xxxxxx Mae, it will transfer
servicing to a servicer that has a standard primary mortgage insurance
master policy with MGIC and that has agreed with Xxxxxx Xxx to maintain
such policy with MGIC as long as it services SMC Mortgages covered by the
MGIC Secondary Market Policy.
(g) With respect to each SMC Mortgage, Lender must maintain in effect (subject
to Xxxxxx Mae's policies) the original certificate or electronic record
evidencing coverage under its MGIC standard primary mortgage insurance
master policy. Lender represents and warrants that any transfers of
servicing of SMC Mortgages covered by this provision shall only be to a
servicer that has an existing standard primary mortgage insurance master
policy with MGIC and Lender shall notify the transferee that transferee
will be obligated to Xxxxxx Xxx to maintain the original certificate
number. Furthermore, Lender must comply with all of the remittance and
claim filing requirements related to the MGIC standard primary mortgage
insurance master policy.
6. SMC Mortgages described in this Part of the Special Requirements section
that are delivered for MBS must be delivered under Pool Purchase Contract
No(s). P09042, P09043, P09044, P09045.
7. Mortgages Ineligible for Secondary Market Policy Coverage: In the event a
mortgage delivered as an SMC Mortgage is determined by MGIC to be
ineligible for MGIC Secondary Market Policy coverage, then Xxxxxx Mae may
require either that Lender immediately (i) repurchase such mortgage, or
(ii) remit to Xxxxxx Xxx an amount equal to the present value of the
difference between the base guaranty fee under the applicable Pool Purchase
Contract referenced above and the base guaranty fee which would have been
applicable to the mortgage if delivered without coverage under the MGIC
Secondary Market Policy, multiplied by the issue date principal balance of
the mortgage.
pmiPremier Secondary Market Coverage Policy (12/02)
Lender may deliver conventional Mortgages to Xxxxxx Mae that are covered by a
PMI Mortgage Insurance Co. ("PMI") pmiPremier Secondary Market Coverage Policy
("Secondary Market Policy"). Mortgages delivered for coverage under this Policy
are referred to as Secondary Market Coverage Mortgages ("SMC Mortgages") and may
be delivered in accordance with the following:
1. Eligible Products: Eligible SMC Mortgages must be originated pursuant to
standard Xxxxxx Xxx guidelines, as may be amended by this Master Agreement, and
are described as follows:
(a) Eligible SMC Mortgages must be either:
(i) Mortgages that are processed by Desktop Underwriter ("DU") and receive an
"Approve" recommendation; or
(ii) Mortgages that are not processed by DU and are insurable under PMI's
traditional ("A" paper) rate card; or
(iii) such other mortgage products that may be specifically approved in writing
by PMI and are eligible pursuant to standard Xxxxxx Mae guidelines, as may
be amended by this Master Agreement.
(b) The following mortgage products are eligible as SMC Mortgages:
(i) fixed-rate, level-payment, fully amortizing mortgages;
(ii) all adjustable rate mortgages originated under Xxxxxx Mae's standard ARM
plans; or
(iii) 7- year balloon mortgages.
(c) Subject to the eligibility requirements set forth in Paragraphs 1(a) and (b)
above, the following are eligible as SMC Mortgages:
(i) Mortgages with LTVs of 95.01-100% that are Xxxxxx Mae products that Lender
is approved to deliver under this Master Agreement and are approved for
SMC.
(ii) Flexible Mortgages that receive an "Approve/Eligible" recommendation in
Desktop Underwriter and are otherwise eligible for SMC.
(d) The following Mortgages are ineligible for SMC:
(i) With the exception of Mortgages that receive an "Approve" recommendation
from Desktop Underwriter, all Mortgages that receive an "A Minus" mortgage
insurance premium rate from the mortgage insurer; and
(ii) Mortgages processed using DU and receiving any recommendation other than
"Approve," including mortgages originated pursuant to the Desktop
Underwriter "Expanded Approval with Timely Payment Rewards" Initiative.
2. Eligible LTV and Primary Mortgage Insurance Coverages: All SMC Mortgages must
have obtained a mortgage insurance premium rate from the mortgage insurer's
traditional ("A" paper) rate card, and meet the following requirements:
(a) SMC Mortgages must have mortgage insurance coverage based on the
loan-to-value ratio ("LTV") of such Mortgage equal to the greater of:
(i) the minimum level applicable to the Mortgage as required by Xxxxxx Xxx,
taking into account any higher mortgage insurance requirements applicable
to any specific mortgage products (e.g., Flexible Mortgages, etc.), which
may be higher than for standard mortgage products.
(ii) the minimum applicable SMC eligibility level set forth in Paragraph 2(b)
below.
(b) Notwithstanding any Xxxxxx Mae minimum mortgage insurance requirements to
the contrary, Mortgages must have the following minimum mortgage insurance
coverage in order to be eligible for SMC:
(i) 12% for 80.01-85% LTVs;
(ii) 17% for 85.01-90% LTVs;
(iii) 25% for 90.01-95% LTVs; and
(iv) 30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a)
above --refer to the specific product guidelines or terms and conditions
for higher required MI coverage that may be applicable.)
(v) Note: Any Mortgage originated with mortgage insurance coverage lower than
the minimum coverage listed above in accordance with a Desktop Underwriter
recommendation, either with or without a loan level price adjustment, is
ineligible for SMC.
(c) Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00%
that are originated with mortgage insurance coverages, per the Selling Guide,
that are lower than the required coverage levels described in Paragraphs 2(a)
and (b) above are ineligible for delivery as SMC Mortgages.
3. Loan Level Price Adjustments. For all SMC Mortgages, Lender must remit any
appropriate loan-level price adjustments or, if applicable, under an alternative
all-in yield option (productspecific guaranty fee). Under the all-in yield
option, the SMC execution improvement will be deducted from the product-specific
guaranty fee.
4. Seasoning Requirements: No SMC Mortgage may have been originated more than 12
months prior to delivery to Xxxxxx Xxx.
5. Additional Requirements:
(a) All SMC Mortgages delivered to Xxxxxx Mae must be covered by standard PMI
primary mortgage insurance, which premiums must be paid in installments by the
borrower (i.e. it may not be a single premium payment or lender-paid).
(b) If Xxxxxx Mae is unable to obtain coverage under a satisfactory PMI
Secondary Market Policy, then Xxxxxx Xxx may discontinue purchasing SMC
Mortgages under this Master Agreement ten days after giving Lender notice.
(c) Lender represents and warrants that no SMC Mortgage it delivers pursuant to
this Master Agreement at the time of acquisition by Xxxxxx Mae is: (i) subject
to a commitment for, any PMI risk sharing structure or PMI mortgage pool
insurance, or (ii) insured under special rate or single premium plans.
(d) Each SMC Mortgage delivered to Xxxxxx Xxx under this Master Agreement must
be originated using the applicable Xxxxxx Mae/Xxxxxxx Mac Uniform Security
Instrument (with effective date on or after 01/01).
(e) Lender will be permitted to deliver SMC Mortgages to Xxxxxx Mae under this
Master Agreement that are eligible for coverage under the PMI Secondary Market
Policy for the period commencing with Lender's first delivery of SMC Mortgages
and ending on the expiration date of the Master Agreement. Notwithstanding the
foregoing, Xxxxxx Xxx may cease purchasing such SMC Mortgages under this Master
Agreement 60 days after giving Lender written notice of cessation.
(f) Lender represents and warrants that: (i) it has a currently existing
standard primary mortgage insurance master policy with PMI and that it shall
maintain such policy with PMI as long as it continues to sell or service SMC
Mortgages covered by the PMI Secondary Market Policy, or (ii) concurrent with
the sale of SMC Mortgages to Xxxxxx Mae, it will transfer servicing to a
servicer that has a standard primary mortgage insurance master policy with PMI
and that has agreed with Xxxxxx Xxx to maintain such policy with PMI as long as
it services Mortgages covered by the PMI Secondary Market Policy.
(g) With respect to each SMC Mortgage, Lender must maintain in effect (subject
to Xxxxxx Mae's policies) the original certificate or electronic record
evidencing coverage under its PMI standard primary mortgage insurance master
policy. Lender represents and warrants that any transfers of servicing of SMC
Mortgages covered by this provision shall only be to a servicer that has an
existing standard primary mortgage insurance master policy with PMI and Lender
shall notify the transferee that transferee will be obligated to Xxxxxx Xxx to
maintain the original certificate number. Furthermore, Lender must comply with
all of the remittance and claim filing requirements related to the PMI standard
primary mortgage insurance master policy.
6. MBS Delivery Procedures: SMC Mortgages described in this Part of the Special
Requirements section that are delivered for MBS must be delivered under Pool
Purchase Contract No(s). P09042, P09043, P09044, P09045.
7. Mortgages Ineligible for Secondary Market Policy Coverage: In the event a
mortgage delivered as an SMC Mortgage is determined by PMI to be ineligible for
PMI Secondary Market Policy coverage, then Xxxxxx Mae may require either that
Lender immediately (i) repurchase such mortgage, or (ii) remit to Xxxxxx Xxx an
amount equal to the present value of the difference between the base guaranty
fee under the applicable Pool Purchase Contract referenced above and the base
guaranty fee which would have been applicable to the mortgage if delivered
without coverage under the PMI Secondary Market Policy, multiplied by the issue
date principal balance of the mortgage.
RMIC Market Flex Secondary Market Policy 07/02
Lender may deliver
conventional Mortgages to Xxxxxx Mae that are covered by a Republic Mortgage
Insurance Company ("RMIC") Market Flex Secondary Market Policy ("Secondary
Market Policy"). Mortgages delivered for coverage under this Policy are referred
to as Secondary Market Coverage Mortgages ("SMC Mortgages") and may be delivered
in accordance with the following:
1. Eligible Products: Eligible SMC Mortgages must be originated pursuant to
standard Xxxxxx Xxx guidelines, as may be amended by this Master Agreement, and
are described as follows:
(a) Eligible SMC Mortgages are limited to the following:
(i) 20-, 25- and 30-year fixed-rate, level-payment, fully amortizing mortgages;
(ii) adjustable rate mortgages originated under the following Xxxxxx Mae
standard ARM plans:
(A) Plans 383, 421, 510, 511, 520, 521, 711, 776, 791 and 1029, (eligible for
cash delivery only),
(B) Plans 681 and 682 (eligible for MBS delivery only):
(C) Plans 57, 649, 650, 651, 652, 660, 661, 710, 720, 721, 750, 751, 760, 761,
861, 975, 1030, 1031, 1316, 1317, 1318, 1319, 1423, 1437, 1443, 1444, 1445
and 1446 (eligible for either cash or MBS delivery): or
(iii) Mortgages with LTVs of 95.01-100% that are Xxxxxx Xxx products that Lender
is approved to deliver under this Master Agreement and are approved for
SMC;
(iv) Flexible Mortgages that receive an "Eligible" recommendation in Desktop
Underwriter and are otherwise eligible for SMC; and
(v) such other mortgage products that may be specifically approved in writing
by RMIC and are eligible pursuant to standard Xxxxxx Mae guidelines, as may
be amended by this Master Agreement.
(b) The following Mortgages are ineligible for SMC:
(i) Mortgages originated under Xxxxxx Mae's Desktop Underwriter "Expanded
Approval with Timely Payment Rewards" Initiative.
(ii) Any mortgage that receives an "A Minus" mortgage insurance premium rate
from the mortgage insurer.
2. Eligible LTV and Primary Mortgage Insurance Coverages: All
SMC Mortgages must have obtained a mortgage insurance premium rate from the
mortgage insurer's traditional ("A" paper) rate card, and meet the following
requirements:
(a) SMC Mortgages must have mortgage insurance coverage based on the
loan-to-value ratio ("LTV") of such Mortgage equal to the greater of:
(i) the minimum level applicable to the Mortgage as required by Xxxxxx Mae,
taking into account any higher mortgage insurance requirements applicable
to any specific mortgage products (e.g., Flexible Mortgages, etc.), which
may be higher than for standard mortgage products; or
(ii) the minimum applicable SMC eligibility level set forth in Paragraph 2(b)
below.
(b) Notwithstanding any Xxxxxx Xxx minimum mortgage insurance requirements to
the contrary, Mortgages must have the following minimum mortgage insurance
coverage in order to be eligible for SMC:
(i) 12% for 80.01-85% LTVs;
(ii) 17% for 85.01-90% LTVs;
(iii) 25% for 90.01-95% LTVs; and
(iv) 30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a)
above -- refer to the specific product guidelines or terms and conditions
for higher required MI coverage that may be applicable.)
(v) Note: Any Mortgage originated with mortgage insurance coverage lower than
the minimum coverage listed above in accordance with a Desktop Underwriter
recommendation, either with or without a loan level price adjustment, is
ineligible for SMC.
(c) Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00%
that are originated with mortgage insurance coverages, per the Selling
Guide, that are lower than the required coverage levels described in
Paragraphs 2(a) and (b) above are ineligible for delivery as SMC Mortgages.
3. Loan Level Price Adjustments. For all SMC Mortgages, Lender must remit any
appropriate loan-level price adjustments or, if applicable, under an alternative
all-in yield option (productspecific guaranty fee). Under the all-in yield
option, the SMC execution improvement will be deducted from the product-specific
guaranty fee.
4. Seasoning Requirements: No SMC Mortgage may have been originated more than 12
months prior to delivery to Xxxxxx Mae.
5. Additional Requirements:
(a) All SMC Mortgages delivered to Xxxxxx Xxx under the terms of this Master
Agreement must be covered by standard RMIC primary mortgage insurance,
which premiums must be paid in installments by the borrower (i.e. it may
not be a single premium payment or lender-paid).
(b) If Xxxxxx Mae is unable to obtain a satisfactory RMIC Secondary Market
Policy, then Xxxxxx Xxx may discontinue purchasing SMC Mortgages under this
Contract ten days after giving Lender notice.
(c) Lender represents and warrants that no SMC Mortgage it delivers pursuant to
this Master Agreement is, at the time of acquisition by Xxxxxx Mae: (i)
included in a captive reinsurance arrangement with RMIC, or covered by a
GSE pool insurance policy issued by RMIC or by any other RMIC risk-sharing
plan; (ii) insured under a lender paid, single premium plan, or RMIC
discounted premium plan; (iii) insured under an A Minus or subprime premium
rate program; or (iv) secured by a 2-4 unit property.
(d) Each SMC Mortgage delivered to Xxxxxx Xxx under this Master Agreement must
be originated using the applicable Xxxxxx Mae/Xxxxxxx Mac Uniform Security
Instrument (with effective date on or after 01/01).
(e) Lender will be permitted to deliver SMC Mortgages to Xxxxxx Mae under this
Master Agreement that are eligible for coverage under the RMIC Secondary
Market Policy for the period commencing with Lender's first delivery of SMC
Mortgages and ending on the expiration date of the Master Agreement.
Notwithstanding the foregoing, Xxxxxx Xxx may cease purchasing Mortgages
under this Master Agreement 60 days after giving Lender written notice of
cessation.
(f) Lender represents and warrants that (i) it has a currently existing
standard primary mortgage insurance master policy issued by RMIC and that
it shall maintain such policy as long as it continues to sell or service
SMC Mortgages covered by the RMIC Secondary Market Policy, or (ii) if it
transfers servicing concurrent with the sale of SMC Mortgages to Xxxxxx
Mae, it will transfer servicing to a servicer that has a standard primary
mortgage insurance master policy issued by RMIC and that has agreed with
Xxxxxx Xxx to maintain such policy as long as it services SMC Mortgages
covered by the RMIC Secondary Market Policy.
(g) With respect to each SMC Mortgage, Lender must maintain in effect (subject
to Xxxxxx Mae's policies) the original certificate or electronic record
evidencing coverage under its RMIC standard primary mortgage insurance
master policy. Lender represents and warrants that any transfers of
servicing of SMC Mortgages covered by this Master Agreement shall only be
to a servicer that has an existing standard primary mortgage insurance
master policy issued by RMIC and Lender shall notify the transferee that
transferee will be obligated to Xxxxxx Xxx to maintain the original
certificate number. Furthermore, Lender must comply with all of the
remittance and claim filing requirements related to the RMIC standard
primary mortgage insurance master policy.
6. SMC Mortgages described in this Part of the Special Requirements section that
are delivered for MBS must be delivered under Pool Purchase Contract No(s).
P09042, P09043, P09044,P09045.
7. Mortgages Ineligible for Secondary Market Policy Coverage: In the event a
mortgage delivered as an SMC Mortgage is determined by RMIC to be ineligible for
RMIC Secondary Market Policy coverage, then Xxxxxx Mae may require either that
Lender immediately (i) repurchase such mortgage, or (ii) remit to Xxxxxx Xxx an
amount equal to the present value of the difference between the base guaranty
fee under the applicable Pool Purchase Contract referenced above and the base
guaranty fee which would have been applicable to the mortgage if delivered
without coverage under the RMIC Secondary Market Policy, multiplied by the issue
date principal balance of the mortgage.
Radian Secondary Market Coverage Policy (07/02)
Lender may deliver conventional Mortgages to Xxxxxx Mae that are covered by a
Radian Guaranty Insurance Corporation ("Radian") Secondary Market Coverage
Policy ("Secondary Market Policy"). Mortgages delivered for coverage under this
Policy are referred to as Secondary Market Coverage Mortgages ("SMC Mortgages")
and may be delivered in accordance with the following:
1. Eligible Products: Eligible SMC Mortgages must be originated pursuant to
standard Xxxxxx Xxx guidelines, as may be amended by this Master Agreement, and
are described as follows:
(a) Eligible SMC Mortgages are limited to the following:
(i) fixed-rate, level-payment, fully amortizing mortgages;
(ii) all adjustable rate mortgages originated under Xxxxxx Mae's standard ARM
plans;
(iii) 7- year balloon mortgages;
(iv) Mortgages with LTVs of 95.01-100% that are Xxxxxx Xxx products that Lender
is approved to deliver under this Master Agreement and are approved for
SMC;
(v) Flexible Mortgages that receive an "Eligible" recommendation in Desktop
Underwriter and are otherwise eligible for SMC; and
(vi) Relocation mortgages, credit union mortgages and such other mortgage
products that may be specifically approved in writing by Radian and are
eligible pursuant to standard Xxxxxx Mae guidelines, as may be amended by
this Master Agreement.
(b) The following Mortgages are ineligible for SMC:
(i) Mortgages originated under Xxxxxx Mae's Desktop Underwriter "Expanded
Approval with Timely Payment Rewards" Initiative.
(ii) Any mortgage that receives an "A Minus" mortgage insurance premium rate
from the mortgage insurer.
2. Eligible LTV and Primary Mortgage Insurance Coverages: All SMC Mortgages must
have obtained a mortgage insurance premium rate from the mortgage insurer's
traditional ("A" paper) rate card, and meet the following requirements:
(a) SMC Mortgages must have mortgage insurance coverage based on the
loan-to-value ratio ("LTV") of such Mortgage equal to the greater of:
(i) the minimum level applicable to the Mortgage as required by Xxxxxx Mae,
taking into account any higher the mortgage insurance requirements
applicable to any specific mortgage products (e.g., Flexible Mortgages,
etc.), which may be higher than for standard mortgage products, or
(ii) the minimum applicable SMC eligibility level set forth in Paragraph 2(b)
below.
(b) Notwithstanding any Xxxxxx Xxx minimum mortgage insurance requirements to
the contrary, Mortgages must have the following minimum mortgage insurance
coverage in order to be eligible for SMC:
(i) 12% for 80.01-85% LTVs;
(ii) 17% for 85.01-90% LTVs;
(iii) 25% for 90.01-95% LTVs; and
(iv) 30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a)
above -- refer to the specific product guidelines or terms and conditions
for higher required MI coverage that may be applicable.)
(v) Note: Any Mortgage originated with mortgage insurance coverage lower than
the minimum coverage listed above in accordance with a Desktop Underwriter
recommendation, either with or without a loan level price adjustment, is
ineligible for SMC.
(c) Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00%
that are originated with mortgage insurance coverages, per the Selling Guide,
that are lower than the required coverage levels described in Paragraphs 2(a)
and (b) above are ineligible for delivery as SMC Mortgages.
3. Loan Level Price Adjustments: For all SMC Mortgages, Lender must remit any
appropriate loan-level price adjustments or, if applicable, under an alternative
all-in yield option (productspecific guaranty fee). Under the all-in yield
option, the SMC execution improvement will be deducted from the product-specific
guaranty fee.
4. Seasoning Requirements: No SMC Mortgage may have been originated more than 12
months prior to delivery to Xxxxxx Mae.
5. Additional Requirements:
(a) All SMC Mortgages delivered to Xxxxxx Xxx must be covered by standard Radian
primary mortgage insurance, which premiums must be paid in installments by the
borrower (i.e. it may not be a single premium payment or lender-paid).
(b) If Xxxxxx Mae is unable to obtain coverage under a satisfactory Radian
Secondary Market Policy, then Xxxxxx Xxx may discontinue purchasing SMC
Mortgages under this Master Agreement ten days after giving Lender notice.
(c) Lender represents and warrants that no SMC Mortgage it delivers pursuant to
this Master Agreement at the time of acquisition by Xxxxxx Mae is: (i) insured
at rates other than standard borrower-paid rates; (ii) included in a captive
reinsurance arrangement with Radian, or covered by a GSE pool insurance policy
issued by Radian or some other Radian risk-sharing plan; (iii) insured under a
Radian "Life of Loan" policy; (iv) insured under any "A Minus" premium rate
plan, or (v) a UCC financed (i.e., non-real-property) Manufactured Housing Loan.
(d) Each SMC Mortgage delivered to Xxxxxx Xxx under this Master Agreement must
be originated using the applicable Xxxxxx Mae/Xxxxxxx Mac Uniform Security
Instrument (with effective date on or after 01/01).
(e) Lender will be permitted to deliver SMC Mortgages to Xxxxxx Mae under this
Master Agreement that are eligible for coverage under the Radian Secondary
Market Policy for the period commencing with Lender's first delivery of SMC
Mortgages and ending on the expiration date of the Master Agreement.
Notwithstanding the foregoing, Xxxxxx Xxx may cease purchasing such SMC
Mortgages under this Master Agreement 60 days after giving Lender written notice
of cessation.
(f) Lender represents and warrants that: (i) it has a currently
existing standard primary mortgage insurance master policy with Radian and that
it shall maintain such policy with Radian as long as it continues to sell or
service SMC Mortgages covered by the Radian Secondary Market Policy, or (ii)
concurrent with the sale of SMC Mortgages to Xxxxxx Mae, it will transfer
servicing to a servicer that has a standard primary mortgage insurance master
policy with Radian and that has agreed with Xxxxxx Xxx to maintain such policy
with Radian as long as it services SMC Mortgages covered by the Radian Secondary
Market Policy.
(g) With respect to each SMC Mortgage, Lender must maintain in
effect (subject to Xxxxxx Mae's policies) the original certificate or electronic
record evidencing coverage under its Radian standard primary mortgage insurance
master policy. Lender represents and warrants that any transfers of servicing of
SMC Mortgages covered by this provision shall only be to a servicer that has an
existing standard primary mortgage insurance master policy with Radian and
Lender shall notify the transferee that transferee will be obligated to Xxxxxx
Xxx to maintain the original certificate number. Furthermore, Lender must comply
with all of the remittance and claim filing requirements related to the Radian
standard primary mortgage insurance master policy.
6. SMC Mortgages described in this Part of the Special Requirements section that
are delivered for MBS must be delivered under Pool Purchase Contract No(s).
P09042, P09043, P09044, P09045.
7. Mortgages Ineligible for Secondary Market Policy Coverage: In the event a
mortgage delivered as an SMC Mortgage is determined by Radian to be ineligible
for Radian Secondary Market Policy coverage, then Xxxxxx Mae may require either
that Lender immediately (i) repurchase such mortgage, or (ii) remit to Xxxxxx
Xxx an amount equal to the present value of the difference between the base
guaranty fee under the applicable Pool Purchase Contract referenced above and
the base guaranty fee which would have been applicable to the mortgage if
delivered without coverage under the Radian Secondary Market Policy, multiplied
by the issue date principal balance of the mortgage.
Delivery Requirement
During each
month of the Delivery Term, Lender agrees to deliver to Xxxxxx Mae at least 90%
(by aggregate outstanding principal amount) of its conforming, conventional
first mortgage product sold in the secondary market.
FIXED-RATE PRODUCT ATTACHMENT
This Fixed-Rate Product Attachment for FHA/VA or conventional fixed-rate,
level-payment residential mortgage loans ("Fixed-Rate Mortgages") is attached to
and made a part of the Master Agreement.
Variances, Special Products, and Special Requirements Applicable to Fixed-Rate
Mortgages
Please refer to the attachments under the "Variances" tab, the "Special
Requirements" tab, the "Housing and Community Development" tab, and the
"HomeStyle" tab, as applicable, for eligibility for variances, special products,
and special requirements.
MBS Guaranty Fee and Buyup/Buydown Information
The guaranty fee due to Xxxxxx Xxx for any Mortgage sold under any MBS Contract
shall be at the annual rate specified in the applicable MBS Contract, payable
monthly, after giving effect to any reduction of the guaranty fee through use of
the MBS Express remittance cycle, if applicable. In addition, the guaranty fee
will be set before giving effect to (i) any reduction of the guaranty fee
through use of the rapid payment method of remittances, if applicable, and (ii)
any increases or decreases of the guaranty fee relating to any buyups or
buydowns of such fee, if applicable.
Lender must choose the applicable Buyup/Buydown Grid posting, "Early" or "Late,"
by contacting its customer account team in its lead regional office, prior to
the "Early" grid posting. If Lender fails to notify its lead regional office of
its grid selection before the "Early" grid is posted, Xxxxxx Mae will assume
that Lender has selected the "Early" posting grid. Lender's grid selection will
apply to all MBS pools that it sells under the same MBS Contract. Ratios for
products or note rates that are not included in the regular posting may be
negotiated through Lender's lead regional office.
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: 20, 25, 30 year fixed-rate level-payment
mortgages
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible for
delivery during the current Conversion
Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue Dates
for Pools formed under this
Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Remittance Cycle: MBS Express
MBS Express: 4 Day, Reduction: -1.75 Basis
Points
Seasoning Requirements: Current
Special Feature Codes: 061 - COMMUNITY HOMEBUYERS, 288 -
Enhanced Refi Xxxxxx Xxx, 289 - Enhanced Refi
Non-Fannie, 330 - Enhanced Streamlined Ref,
361 - 3rd Autom U-Writng SYS, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
a. Each 20, 25 and 30-year Fixed-Rate Mortgage delivered under this Contract
with a FICO Bureau Score not exceeding 699 or with a missing FICO Bureau
Score and with a loanto- value ratio (a) not exceeding 75% will be subject
to a loan-level price adjustment in an amount equal to .125% times the
issue date principal balance of such Fixed-Rate Mortgage and (b) exceeding
75% will be subject to a loan-level price adjustment in an amount equal to
.50% times the issue date principal balance of such Fixed-Rate Mortgage.
b. Each 20, 25 and 30-year Fixed-Rate Mortgage delivered under this Contract
with a FICO Bureau Score exceeding 699 and with a loan-to-value ratio
exceeding 75% will be subject to a loan-level price adjustment in an amount
equal to .25% times the issue date principal balance of such Fixed-Rate
Mortgage.
Contract No. P09036.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's sale of Mortgages under this MBS Contract at the
pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to sell Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: 20, 25, 30 year fixed-rate level-payment
mortgages
Earliest and Latest Issue Dates
for Pools formed under this Contract: N/A *
Guaranty Fee: 10.25 Basis Points net of Express
Remittance
Risk Based Pricing: (See provisions in the Additional Terms
section above)
Buyup/Buydown Grid: Early (See additional terms in the MBS
Guaranty Fee and Buyup/Buydown
Information in the Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period
according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the
expiration of the current Conversion Period, to an amount agreed upon by Xxxxxx
Xxx and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
Contract No. P09037.1
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION MASTER AGREEMENT
MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: 10, 15 year fixed-rate level-payment
mortgages
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible
for delivery during the current
Conversion Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue Dates
for Pools formed under this Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Remittance Cycle: MBS Express
MBS Express: 4 Day, Reduction: -1.75
Basis Points
Seasoning Requirements: Current
Special Feature Codes: 061 - COMMUNITY HOMEBUYERS, 288 -
Enhanced Refi Xxxxxx Mae, 289 - Enhanced
Refi Non-Fannie, 330 - Enhanced
Streamlined Ref, 361 - 3rd Autom U-
Writng SYS, and Per Selling Guide, Guide
to Underwriting with Desktop Underwriter
and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Contract No. P09037.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's sale of Mortgages under this MBS Contract at the
pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to sell Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: 10, 15 year fixed-rate level-payment mortgages
Earliest and Latest Issue
Dates for Pools formed under
this Contract: N/A *
Guaranty Fee: 12.25 Basis Points net of Express Remittance
Buyup/Buydown Grid: Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this
MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion
Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on
the expiration of the current Conversion Period, to an amount agreed upon by
Xxxxxx Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: 10, 15, 20, 25, 30 year fixed-rate level-
payment mortgages [Expanded Approval
Level I, Level II and Level III only]
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible
for delivery during the current
Conversion Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue Dates for
Pools formed under this Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Remittance Cycle: MBS Express
MBS Express: 4 Day, Reduction: -1.75
Basis Points
Seasoning Requirements: Current
Special Feature Codes: 340 - Level I Expanded Approval, 341 -
Level II Expanded Approval, 342 - Level
III Expanded Approval, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Contract No. P09040.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's sale of Mortgages under this MBS Contract at the
pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to sell Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: 10, 15, 20, 25, 30 year fixed-rate level-
payment mortgages [Expanded Approval
Level I, Level II and Level III only]
Earliest and Latest Issue Dates
for Pools formed under this
Contract: N/A *
Guaranty Fee: 13.25 Basis Points net of Express Remittance
Buyup/Buydown Grid: Early (See additional terms in the MBS
Guaranty Fee and Buyup/Buydown Information in
the Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period
according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the
expiration of the current Conversion Period, to an amount agreed upon by Xxxxxx
Xxx and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
Contract No. P09042.1
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: 20, 25, 30 year fixed-rate level-payment
mortgages [Secondary Market Coverage only]
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible for
delivery during the current Conversion
Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue Dates
for Pools formed under this Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Remittance Cycle: MBS Express
MBS Express: 4 Day, Reduction: -1.75
Basis Points
Seasoning Requirements: Current
Special Feature Codes: 001 - RECOURSE, 061 - COMMUNITY
HOMEBUYERS, 288 - Enhanced Refi Xxxxxx
Mae, 289 - Enhanced Refi Non-Fannie, 330
- Enhanced Streamlined Ref, 361 - 3rd
Autom U-Writng SYS, and Per Selling Guide,
Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
a. Each 20, 25 and 30-year Fixed-Rate Mortgage delivered under this Contract
with a FICO Bureau Score not exceeding 699 or with a missing FICO Bureau
Score and with a loanto- value ratio (a) not exceeding 75% will be subject
to a loan-level price adjustment in an amount equal to .125% times the
issue date principal balance of such Fixed-Rate Mortgage and (b) exceeding
75% will be subject to a loan-level price adjustment in an amount equal to
.50% times the issue date principal balance of such Fixed-Rate Mortgage.
b. Each 20, 25 and 30-year Fixed-Rate Mortgage delivered under this Contract
with a FICO Bureau Score exceeding 699 and with a loan-to-value ratio
exceeding 75% will be subject to a loan-level price adjustment in an amount
equal to .25% times the issue date principal balance of such Fixed-Rate
Mortgage.
Contract No. P09042.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's sale of Mortgages under this MBS Contract at the
pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to sell Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: 20, 25, 30 year fixed-rate level-payment
mortgages [Secondary Market Coverage only]
Earliest and Latest Issue
Dates for Pools formed under
this Contract: N/A *
Guaranty Fee: For 20, 25 and 30 year Fixed-Rate Mortgages
with Secondary Market Coverage the Guaranty
Fee is 4.75 Basis Points net of Express
Remittance
Risk Based Pricing: (See provisions in the Additional Terms
section above)
Buyup/Buydown Grid: Early (See additional terms in the MBS
Guaranty Fee and Buyup/Buydown Information
in the Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this
MBS Pricing Confirmation, the above Guaranty Fee only applies to the Conversion
Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on
the expiration of the current Conversion Period, to an amount agreed upon by
Xxxxxx Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
Contract No. P09043.1
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: 10, 15 year fixed-rate level-payment
mortgages [Secondary Market Coverage only]
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible for
delivery during the current Conversion
Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue
Dates for Pools formed under
this Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Remittance Cycle: MBS Express
MBS Express: 4 Day, Reduction: -1.75
Basis Points
Seasoning Requirements: Current
Special Feature Codes: 001 - RECOURSE, 061 - COMMUNITY
HOMEBUYERS, 288 - Enhanced Refi Xxxxxx
Mae, 289 - Enhanced Refi Non-Fannie, 330
- Enhanced Streamlined Ref, 361 - 3rd
Autom U-Writng SYS, and Per Selling Guide,
Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Contract No. P09043.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's sale of Mortgages under this MBS Contract at the
pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to sell Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: 10, 15 year fixed-rate level-payment mortgages
[Secondary Market Coverage only]
Earliest and Latest Issue
Dates for Pools
formed under this Contract: N/A *
Guaranty Fee: For 10 and 15 year Fixed-Rate
Mortgages with Secondary Market Coverage the
Guaranty Fee is 11.25 Basis Points
net of Express Remittance
Buyup/Buydown Grid: Early (See additional terms in the
MBS Guaranty Fee and Buyup/Buydown
Information in the Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period
according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the
expiration of the current Conversion Period, to an amount agreed upon by Xxxxxx
Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
Contract No. P09047.1
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: 20, 25, 30 year fixed-rate level-payment
mortgages
Maximum Amount of Pool Purchase
Transactions for Delivery during First
Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume
eligible for delivery during the current
Conversion Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue Dates
for Pools formed under
this Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Remittance Cycle: Standard
Seasoning Requirements: Current
Special Feature Codes: 061 - COMMUNITY HOMEBUYERS, 288 -
Enhanced Refi Xxxxxx Xxx, 289 - Enhanced
Refi Non-Fannie, 330 - Enhanced
Streamlined Ref, 361 - 3rd
Autom U-Writng SYS, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
a. Each 20, 25 and 30-year Fixed-Rate Mortgage delivered under this Contract
with a FICO Bureau Score not exceeding 699 or with a missing FICO Bureau
Score and with a loanto- value ratio (a) not exceeding 75% will be subject
to a loan-level price adjustment in an amount equal to .125% times the
issue date principal balance of such Fixed-Rate Mortgage and (b) exceeding
75% will be subject to a loan-level price adjustment in an amount equal to
.50% times the issue date principal balance of such Fixed-Rate Mortgage.
b. Each 20, 25 and 30-year Fixed-Rate Mortgage delivered under this Contract
with a FICO Bureau Score exceeding 699 and with a loan-to-value ratio
exceeding 75% will be subject to a loan-level price adjustment in an amount
equal to .25% times the issue date principal balance of such Fixed-Rate
Mortgage.
Contract No. P09047.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's sale of Mortgages under this MBS Contract at the
pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to sell Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: 20, 25, 30 year fixed-rate level-
payment mortgages
Earliest and Latest Issue Dates
for Pools formed under this Contract: N/A *
Guaranty Fee: 12.00 Basis Points Risk Based
Pricing: (See provisions in the
Additional Terms section above)
Buyup/Buydown Grid: Early (See additional terms in the
MBS Guaranty Fee and Buyup/Buydown
Information in the Preamble
section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period
according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the
expiration of the current Conversion Period, to an amount agreed upon by Xxxxxx
Xxx and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
Contract No. P09048.1
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: 10, 15 year fixed-rate level-payment
mortgages
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible
for delivery during the current
Conversion Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue Dates
for Pools formed under this
Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Remittance Cycle: Standard
Seasoning Requirements: Current and/or Seasoned
Special Feature Codes: Per Selling Guide, Guide to
Underwriting with Desktop Underwriter
and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Contract No. P09048.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's sale of Mortgages under this MBS Contract at the
pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to sell Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: 10, 15 year fixed-rate level-payment
mortgages
Earliest and Latest Issue Dates
for Pools formed under this Contract: N/A *
Guaranty Fee: 14.00 Basis Points
Buyup/Buydown Grid: Early (See additional terms in the MBS
Guaranty Fee and Buyup/Buydown
Information in the Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period
according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the
expiration of the current Conversion Period, to an amount agreed upon by Xxxxxx
Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
ARM PRODUCT ATTACHMENT
This ARM Product Attachment for conventional adjustable-rate residential
mortgage loans is attached to and made a part of the Master Agreement.
Standard Xxxxxx Xxx ARM Plans Eligible for Delivery Under MBS Contracts
See Exhibit A to this ARM Product Attachment for a description of standard
Xxxxxx Mae ARM plans. Each ARM MBS Contract will reference ARM plans eligible
for delivery under such MBS Contract.
Variances, Special Products, and Special Requirements Applicable to
Adjustable-Rate Mortgages Please refer to the attachments under the "Variances"
tab, the "Special Requirements" tab, the "Housing and Community Development"
tab, and the "HomeStyle" tab, as applicable, for eligibility for variances,
special products, and special requirements.
MBS Guaranty Fee and Buyup/Buydown Information
The guaranty fee due to Xxxxxx Xxx for any Mortgage sold under any MBS Contract
shall be at the annual rate specified in the applicable MBS Contract, payable
monthly, after giving effect to any reduction of the guaranty fee through use of
the MBS Express remittance cycle, if applicable. In addition, the guaranty fee
will be set before giving effect to (i) any reduction of the guaranty fee
through use of the rapid payment method of remittances, if applicable, and (ii)
any increases or decreases of the guaranty fee relating to any buyups or
buydowns of such fee, if applicable.
Lender must choose the applicable Buyup/Buydown Grid posting, "Early" or "Late,"
by contacting its customer account team in its lead regional office, prior to
the "Early" grid posting. If Lender fails to notify its lead regional office of
its grid selection before the "Early" grid is posted, Xxxxxx Mae will assume
that Lender has selected the "Early" posting grid. Lender's grid selection will
apply to all MBS pools that it sells under the same MBS Contract. Ratios for
products or note rates that are not included in the regular posting may be
negotiated through Lender's lead regional office.
ADDITIONAL INFORMATION FOR ALL STANDARD XXXXXX XXX ARM PLANS:
1. The Mortgage interest rate may never be lower than the ARM's Mortgage
Margin, regardless of any downward interest rate cap indicated above.
2. There is no lifetime interest rate floor, other than the ARM's Mortgage
Margin.
3. To be pooled as a standard Xxxxxx Mae ARM plan without a special
disclosure, the ARM must:
Be due on the first day of the month;
Have an original maturity no longer than 30 years; and
Provide for calculation of the new interest rate by rounding the sum of
the Index plus the ARM's Mortgage Margin to the nearest one-eighth (0.125)
of 1.00%.
If otherwise, a special disclosure will be required.
Contract No. P09038.1
ADJUSTABLE-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: Adjustable-Rate Mortgages
Plan Number(s): 00057, 00520, 00649, 00650, 00651,
00652, 00660, 00661, 00720, 00721, 00750,
00751, 00975, 01423, 01437, 02720,
02721, 02722, 02723, 02724, 02725, 02726,
02727, 02728, 02729 (only those listed
above are eligible under this contract -
see Exhibit A for more details)
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible for
delivery during the current Conversion
Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue
Dates for Pools formed under
this Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Pooling Structure: ARM Flex
Remittance Cycle: MBS Express
MBS Express: 4 Day, Reduction: -2.75
Basis Points
Seasoning Requirements Current
Conversion Option: N/A
Special Feature Codes: 037 - Convert ARM - Take-Out, 038
- Convert ARM - Market, 288 - Enhanced
Refi Xxxxxx Xxx, 289 - Enhanced Refi
Non-Fannie, 330 - Enhanced Streamlined
Ref, 340 - Level I Expanded Approval, 341
- Level II Expanded Approval, 342 - Level
III Expanded Approval, 361 - 3rd Autom
U-Writing Sys, and Per Selling Guide,
Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Contract No. P09038.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's delivery of Mortgages under this Contract at the
pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to deliver Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: Adjustable-rate Mortgages
Plan Number(s): 00057, 00520, 00649, 00650, 00651, 00652,
00660, 00661, 00720, 00721, 00750, 00751,
00975, 01423, 01437, 02720, 02721, 02722,
02723, 02724, 02725, 02726, 02727, 02728,
02729 (only those listed above are eligible
under this contract - see Exhibit A for
more details)
Earliest and Latest Issue
Dates for Pools formed under
this Contract: N/A *
Guaranty Fee: For ARM Plans 57, 520, 720, 721, 2720 the
Guaranty Fee is 23.25 Basis Points net of
Express Remittance
For ARM Plans 649, 650, 651, 652, 2723, 660,
661, 2725, 2724 the Guaranty Fee is
21.25 Basis Points net of Express Remittance
For ARM Plans 750, 751, 975, 2727,
2726, 1423, 1437, 2729, 2728 the Guaranty Fee
is 19.25 Basis Points net of Express
Remittance
Buyup/Buydown Grid: Early (See additional terms in the MBS
Guaranty Fee and Buyup/Buydown Information in
the Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period
according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the
expiration of the current Conversion Period, to an amount agreed upon by Xxxxxx
Xxx and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
Contract No. P09044.1
ADJUSTABLE-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: Adjustable-Rate Mortgages [Secondary
Market Coverage only]
Plan Number(s): 00057, 00520, 00649, 00650, 00651,
00652, 00660, 00661, 00720, 00721,
00750, 00751, 00975, 01423, 01437,
02720, 02721, 02722, 02723, 02724,
02725, 02726, 02727, 02728, 02729
(only those listed above are eligible
under this contract - see Exhibit A for
more details)
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible
for delivery during the current
Conversion Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue Dates
for Pools formed under this Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Pooling Structure: ARM Flex
Remittance Cycle: MBS Express
MBS Express: 4 Day, Reduction: -2.75
Basis Points
Seasoning Requirements Current
Conversion Option: N/A
Special Feature Codes: 037 - Convert ARM - Take-Out, 038
- Convert ARM - Market, 288 - Enhanced
Refi Xxxxxx Mae, 289 - Enhanced Refi
Non-Fannie, 330 - Enhanced Streamlined
Ref, 361 - 3rd Autom U-Writing Sys, and
Per Selling Guide, Guide to
Underwriting with Desktop Underwriter
and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Contract No. P09044.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's delivery of Mortgages under this Contract at the
pricing specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to deliver Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: Adjustable-rate Mortgages [Secondary
Market Coverage only]
Plan Number(s): 00057, 00520, 00649, 00650, 00651,
00652, 00660, 00661, 00720, 00721,
00750, 00751, 00975, 01423, 01437,
02720, 02721, 02722, 02723, 02724,
02725, 02726, 02727, 02728, 02729
(only those listed above are eligible
under this contract - see Exhibit A
for more details)
Earliest and Latest Issue Dates
for Pools formed under this Contract: N/A *
Guaranty Fee: For ARM Plans 57, 520, 720, 721, 2720
with Secondary Market Coverage the
Guaranty Fee is 20.25 Basis Points
net of Express Remittance
For ARM Plans 649, 650, 651, 652,
2723, 660, 661, 2725, 2724 with
Secondary Market Coverage the
Guaranty Fee is 17.25 Basis Points
net of Express Remittance
For ARM Plans 750, 751, 975,
2727, 2726, 1423, 1437, 2729, 2728
with Secondary Market Coverage the
Guaranty Fee is 14.25 Basis Points
net of Express Remittance
Buyup/Buydown Grid: Early (See additional terms in the
MBS Guaranty Fee and Buyup/Buydown
Information in the Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period
according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the
expiration of the current Conversion Period, to an amount agreed upon by Xxxxxx
Xxx and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
BALLOON FIXED-RATE PRODUCT ATTACHMENT
This Balloon Product Attachment for conventional balloon level-payment mortgage
loans ("Balloon Mortgages") is attached to and made a part of the Master
Agreement.
1. Each Balloon Mortgage must not have been originated more than 24 months prior
to the issue date or the date of Xxxxxx Mae's purchase, as applicable.
2. All Balloon Mortgages were originated with refinance options.
3. Notwithstanding
anything to the contrary in Section 2, "Conditions to Option," of the Balloon
Rider and Balloon Note Addendum, Lender may permit subordinate financing to
remain in place when the Balloon Mortgage is refinanced provided that the
refinanced Mortgage remains in first lien position. Lender must take all actions
required by the jurisdiction in which the property is located to preserve the
Mortgage's first lien position, including (i) execution of subordination
agreements by all junior lien holders, (ii) recordation of the modification
agreement in order to preserve the Mortgage's lien and (iii) having the title
brought down through the date of recordation. Any refinanced Mortgage with
subordinate financing that is redelivered to Xxxxxx Xxx must comply with the
standard requirements for mortgages with subordinate financing, including Part
V, Sections 215.01, 215.02 and 215.03 of the Selling Guide. In addition, Lender
must comply with all Xxxxxx Mae requirements for handling of recorded documents.
Variances, Special Products, and Special Requirements Applicable to Balloon
Mortgages
Please refer to the attachments under the "Variances" tab, the "Special
Requirements" tab, the "Housing and Community Development" tab, and the
"HomeStyle" tab, as applicable, for eligibility for variances, special products,
and special requirements.
MBS Guaranty Fee and Buyup/Buydown Information
The guaranty fee due to Xxxxxx Xxx for any Mortgage sold under any MBS Contract
shall be at the annual rate specified in the applicable MBS Contract, payable
monthly, after giving effect to any reduction of the guaranty fee through use of
the MBS Express remittance cycle, if applicable. In addition, the guaranty fee
will be set before giving effect to (i) any reduction of the guaranty fee
through use of the rapid payment method of remittances, if applicable, and (ii)
any increases or decreases of the guaranty fee relating to any buyups or
buydowns of such fee, if applicable.
Lender must choose the applicable Buyup/Buydown Grid posting, "Early" or "Late,"
by contacting its customer account team in its lead regional office, prior to
the "Early" grid posting. If Lender fails to notify its lead regional office of
its grid selection before the "Early" grid is posted, Xxxxxx Mae will assume
that Lender has selected the "Early" posting grid. Lender's grid selection will
apply to all MBS pools that it sells under the same MBS Contract. Ratios for
products or note rates that are not included in the regular posting may be
negotiated through Lender's lead regional office.
Contract No. P09039.1
BALLOON MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: 7-year Balloon Mortgages
Maximum Amount of Pool
Purchase Transactions for
Delivery during First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible for
delivery during the current Conversion
Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue Dates for
Pools formed under this Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Remittance Cycle: MBS Express
MBS Express: 4 Day, Reduction: -1.75
Basis Points
Seasoning Requirements: Current
Special Feature Codes: 288 - Enhanced Refi Xxxxxx Xxx, 289 -
Enhanced Refi Non-Fannie, 330 - Enhanced
Streamlined Ref, 361 - 3rd Autom U-Writng
SYS, and Per Selling Guide, Guide to
Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract fee is waived.
Contract No. P09039.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's sale of Mortgages under this MBS
Contract at the price specified below, there must be a current Master
Conversion. The current Master Conversion governs Lender's ability to sell
Mortgages under the Master Agreement, notwithstanding any date specified as the
"Latest Issue Date" on Page 1 of this MBS Contract or below.
Eligible Products: 7-year Balloon Mortgages
Earliest and Latest Issue Dates
for Pools formed under this Contract: N/A *
Guaranty Fee: 25.25 Basis Points net of Express
Remittance
Buyup/Buydown Grid: Early (See additional terms in the MBS
Guaranty Fee and Buyup/Buydown
Information in the Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period
according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the
expiration of the current Conversion Period, to an amount agreed upon by Xxxxxx
Xxx and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
Contract No. P09045.1
BALLOON MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MP03843.1
Lender: Washtenaw Mortgage Company Lender Number: 00000-000-0
Eligible Products: 7-year Balloon Mortgages [Secondary
Market Coverage only]
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term: $500,000,000.00 (See current Master
Conversion for actual volume eligible
for delivery during the current
Conversion Period.)
Original First Issue Date: July 1, 2003
Earliest and Latest Issue Dates
for Pools formed under this Contract: July 1, 2003 - June 1, 2004
Servicing Option: Special
Mortgage Type: Conventional
Remittance Cycle: MBS Express
MBS Express: 4 Day, Reduction: -1.75
Basis Points
Seasoning Requirements: Current
Special Feature Codes: 288 - Enhanced Refi Xxxxxx Mae, 289 -
Enhanced Refi Non-Fannie, 330 -
Enhanced Streamlined Ref, 361 - 3rd
Autom U-Writng SYS, and Per Selling
Guide, Guide to Underwriting with
Desktop Underwriter and applicable
attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract fee is waived.
Contract No. P09045.1
MBS Pricing Confirmation for Washtenaw Mortgage Company
MP03843.1
As a condition to Lender's sale of Mortgages under this MBS Contract at the
price specified below, there must be a current Master Conversion. The current
Master Conversion governs Lender's ability to sell Mortgages under the Master
Agreement, notwithstanding any date specified as the "Latest Issue Date" on Page
1 of this MBS Contract or below.
Eligible Products: 7-year Balloon Mortgages [Secondary
Market Coverage only]
Earliest and Latest Issue Dates
for Pools formed under this Contract: N/A *
Guaranty Fee: For 7-year Balloon Mortgages with
Secondary Market Coverage the
Guaranty Fee is 22.25 Basis Points
net of Express Remittance
Buyup/Buydown Grid: Early (See additional terms in the
MBS Guaranty Fee and Buyup/Buydown
Information in the Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing
Confirmation, the above Guaranty Fee only applies to the Conversion Period
according to the current Master Conversion. The Guaranty Fee is subject to
change either after the Latest Issue Date, if one is specified above, or on the
expiration of the current Conversion Period, to an amount agreed upon by Xxxxxx
Mae and Lender. If no Latest Issue Date is specified in this MBS Pricing
Confirmation, then (a) if there is a change to the Guaranty Fee applicable to
the next Conversion Period, a revised MBS Pricing Confirmation for this Contract
will be sent to Lender; or (b) if there is no change to the Guaranty Fee, this
MBS Pricing Confirmation will remain in effect until the expiration of the next
Conversion Period, when the Guaranty Fee will again be subject to change upon
agreement of the parties.
March 2003
Housing and Community Development
Index
These Housing and Community Development Terms and Conditions(s) are attached to
and made a part of the Master Agreement (the "Agreement"). The Lender and Xxxxxx
Xxx agree that, except as provided below, all other requirements of the Xxxxxx
Mae Selling and Servicing Guides shall be followed. Any provision specified
below may be amended by Xxxxxx Mae's issuance to Lender of an "Announcement of
Approval." Capitalized terms used but not defined herein shall have the meanings
set forth in the Agreement.
The appropriate Special Feature Code ("SFC") as indicated below must be entered
on the Schedule of Mortgages (Form 2005) or Loan Schedule (Form 1068), as
applicable.
Under this Master Agreement, Lender may deliver the following:
Other Housing and Community Development Products
Community 2 Unit only as described in the attached terms and conditions.
