SEQUOIA MORTGAGE TRUST 2007-3 MORTGAGE PASS-THROUGH CERTIFICATES MORTGAGE LOAN PURCHASE AND SALE AGREEMENT Between RWT HOLDINGS, INC. and SEQUOIA RESIDENTIAL FUNDING, INC. dated as of July 1, 2007
Exhibit
10.3
Execution
Version
MORTGAGE
PASS-THROUGH CERTIFICATES
Between
RWT
HOLDINGS, INC.
and
SEQUOIA
RESIDENTIAL FUNDING, INC.
dated
as
of July 1, 2007
TABLE
OF
CONTENTS
PAGE
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Representations
and Warranties of RWT and Sequoia
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1
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Section 2. |
Additional
Representations, Warranties and
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Agreements
of RWT
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1
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Section
3.
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Conveyance
of Mortgage Loans
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2
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Section
4.
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Intention
of Parties
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3
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Termination
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3
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Section
6.
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Miscellaneous
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4
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i
This
Mortgage Loan Purchase and Sale Agreement (the “Agreement”) is made as of July
1, 2007, by and between RWT Holdings, Inc., a Delaware corporation (“RWT”) and
Sequoia Residential Funding, Inc., a Delaware corporation
(“Sequoia”).
WHEREAS,
the parties hereto desire to provide for the purchase and sale of the Mortgage
Loans (the "Mortgage Loans") on the Closing Date (as defined in the Pooling
and
Servicing Agreement, dated as of July 1, 2007 (the “Pooling and Servicing
Agreement”) by and among Sequoia, as depositor, HSBC Bank USA, National
Association, as trustee (the “Trustee”), and Xxxxx Fargo Bank, N. A., as master
servicer and securities administrator, and acknowledged by RWT, as seller,
in
accordance with the terms and conditions set forth in this
Agreement.
NOW,
THEREFORE, the parties in consideration of good and valuable consideration,
the
receipt and sufficiency of which is hereby acknowledged, and intending to be
legally bound, hereby agree as follows:
Section
1. Representations
and Warranties of RWT and Sequoia.
RWT and
Sequoia, each as to itself and not the other, hereby represents, warrants and
agrees for the benefit of the other party that:
(a) Authorization.
The
execution, delivery and performance of this Agreement by it are within its
respective powers and have been duly authorized by all necessary action on
its
part.
(b) No
Conflict.
The
execution, delivery and performance of this Agreement will not violate or
conflict with (i) its charter or bylaws, (ii) any resolution or other corporate
action by it, or (iii) any decisions, statutes, ordinances, rulings, directions,
rules, regulations, orders, writs, decrees, injunctions, permits, certificates
or other requirements of any court or other governmental or public authority
in
any way applicable to or binding upon it, and will not result in or require
the
creation, except as provided in or contemplated by this Agreement, of any lien,
mortgage, pledge, security interest, charge or encumbrance of any kind upon
the
Mortgage Loans.
(c) Binding
Obligation.
This
Agreement has been duly executed by it and is its legally valid and binding
obligation, enforceable against it in accordance with this Agreement’s terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights
generally, and by general principles of equity.
Section
2. Additional
Representations, Warranties and Agreements
of RWT.
(a) RWT
represents and warrants to, and agrees with, Sequoia that (i) on the Closing
Date, RWT will have good, valid and marketable title to the Mortgage Loans
that
are identified in Schedule A to the Pooling and Servicing Agreement and the
contractual rights with respect to the Mortgage Loans under each of the Purchase
Agreements and the Servicing Agreements, (as modified by the related
Acknowledgements, collectively referred to herein as the "Purchase and Servicing
Agreements"), in each case free and clear of all liens, mortgages, deeds of
trust, pledges, security interests, charges, encumbrances or other claims;
and
(ii) upon transfer to Sequoia, Sequoia will receive good, valid and marketable
title to all of the Mortgage Loans and will receive all of RWT’s contractual
rights and obligations under each such Purchase and Servicing Agreements, in
each case free and clear of any liens, mortgages, deeds of trust, pledges,
security interests, charges, encumbrances or other claims.
1
(b) RWT
hereby makes the representations and warranties as to the Mortgage Loans set
forth in Schedule A to this Agreement, for the benefit of Sequoia and the
Trustee.
(c) RWT
hereby agrees that it will comply with the provisions of Section 2.04 of the
Pooling and Servicing Agreement in respect of a breach of any of the
representations and warranties set forth in this Section 2. In addition, RWT
will comply with the provisions of Sections 7.01(b) and 9.01(d) of the Pooling
and Servicing Agreement.
(d) RWT
hereby represents and warrants for the benefit of Sequoia and the Trustee:
(i)
this Agreement creates a valid and continuing security interest (as defined
in
the applicable UCC) in the Mortgage Loans in favor of Sequoia, which security
interest is prior to all other Liens, and is enforceable as such as against
creditors of and purchasers from RWT; (ii) the Mortgage Loans constitute
“instruments” within the meaning of the applicable UCC; (iii) RWT, immediately
prior to its transfer of Mortgage Loans under this Agreement, will own and
have
good, valid and marketable title to the Mortgage Loans free and clear of any
Lien, claim or encumbrance of any Person; (iv) RWT has received all consents
and
approvals required by the terms of the Mortgage Loans to the sale of the
Mortgage Loans hereunder to Sequoia; (v) all original executed copies of each
Mortgage Note that constitute or evidence the Mortgage Loans have been delivered
to the applicable Custodian; (vi) RWT has received a written acknowledgment
from
the applicable Custodian that such Custodian is holding the Mortgage Notes
that
constitute or evidence the Mortgage Loans solely on behalf and for the benefit
of Sequoia; (vii) other than the security interest granted to Sequoia pursuant
to this Agreement and security interests granted to lenders which will be
automatically released at the Closing, RWT has not pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Mortgage Loans;
RWT has not authorized the filing of and is not aware of any financing
statements against it that include a description of collateral covering the
Mortgage Loans other than any financing statement relating to the security
interest granted to Sequoia hereunder or that will be automatically released
upon the sales to Sequoia; (viii) RWT is not aware of any judgment or tax lien
filing against itself; and (ix) none of the Mortgage Notes that constitute
or
evidence the Mortgage Loans have any marks or notations indicating that they
have been pledged, assigned or otherwise conveyed to any Person other than
Sequoia.
Section
3. Conveyance
of Mortgage Loans.
(a) Mortgage
Loans.
RWT,
concurrently with the execution and delivery hereof, hereby sells, transfers,
assigns, sets over and otherwise conveys to Sequoia, without recourse, all
of
RWT’s right, title and interest in and to (i) the Mortgage Loans, including the
related Mortgage Documents and all interest and principal received or receivable
by RWT on or with respect to the Mortgage Loans after the Cut-off Date and
all
interest and principal payments on the Mortgage Loans received prior to the
Cut-off Date in respect of installments of interest and principal due
thereafter, but not including payments of interest and principal due and payable
on the Mortgage Loans on or before the Cut-off Date, and all other proceeds
received in respect of such Mortgage Loans, (ii) RWT’s rights and obligations
under the Purchase Agreements and the Servicing Agreements with respect to
the
Mortgage Loans, as modified by the related Acknowledgements, (iii) the pledge,
control and guaranty agreements and the Limited Purpose Surety Bond relating
to
the Additional Collateral Mortgage Loans, (iv) the Insurance Policies with
respect to the Mortgage Loans, (v) all cash, instruments or other property
held
or required to be deposited in the Collection Accounts and the Distribution
Account, and (vi) all proceeds of the conversion, voluntary or involuntary,
of
any of the foregoing into cash or other liquid assets, including, without
limitation, all Insurance Proceeds, Liquidation Proceeds and condemnation
awards.
2
On
or
prior to the Closing Date, RWT shall deliver to Sequoia or, at Sequoia’s
direction, to the applicable Custodian, the Trustee’s Mortgage File for each
Mortgage Loan in the manner set forth in Section 2 of the Custody Agreement.
Release of the Trustee’s Mortgage Files on the Closing Date shall be made
against payment by Sequoia of the purchase price for the Mortgage Loans and
related assets, which shall be a combination of credit for an additional capital
contribution and cash wired to RWT's account. The amount of the purchase price
payable by Sequoia shall be set forth in writing in a separate
letter.
(b) Defective
Mortgage Loans.
If any
Mortgage Loan is required to be repurchased due to defective or missing
documentation pursuant to Section 2.04 of the Pooling and Servicing Agreement,
RWT shall, at its option, either (a) repurchase or cause the applicable seller
of such Mortgage Loan to RWT to repurchase such Mortgage Loan at the Purchase
Price, or (b) provide or cause the applicable seller of such Mortgage Loan
to
RWT to provide a Replacement Mortgage Loan, subject to the terms and conditions
of the Pooling and Servicing Agreement.
Section
4. Intention
of Parties.
It is
the express intent of the parties hereto that (without addressing
characterization for GAAP purposes) the conveyance of the Mortgage Loans by
RWT
to Sequoia be construed as, an absolute sale thereof. It is, further, not the
intention of the parties that such conveyance be deemed a pledge thereof.
However, in the event that, notwithstanding the intent of the parties, such
assets are held to be the property of the assigning party, or if for any other
reason this Agreement is held or deemed to create a security interest in the
Mortgage Loans, then (i) this Agreement shall be deemed to be a security
agreement within the meaning of the Uniform Commercial Code of the State of
New
York and (ii) the conveyance provided for in this Agreement shall be deemed
to
be an assignment and a grant by RWT to Sequoia of a security interest in all
of
the assets described in such conveyances, whether now owned or hereafter
acquired.
RWT
and
Sequoia shall, to the extent consistent with this Agreement, take such actions
as may be necessary to ensure that, if this Agreement were deemed to create
a
security interest in the Mortgage Loans, such security interest would be deemed
to be a perfected security interest of first priority under applicable law
and
will be maintained as such throughout the term of this Agreement. RWT shall
arrange for filing any Uniform Commercial Code continuation statements in
connection with any security interest granted or assigned
hereunder.
Section
5. Termination.
(a) Sequoia
may terminate this Agreement, by notice to RWT, at any time at or prior to
the
Closing Date:
(i) if
the
Underwriting Agreement is terminated by the Underwriters pursuant to the terms
of the Underwriting Agreement or if the Underwriters do not complete the
transactions contemplated
by the
Underwriting Agreement as the result of the failure of any condition set forth
therein or if there has been, since the time of execution of this Agreement
or
since the respective dates as of which information is given in the Prospectus
or
Prospectus Supplement, any material adverse change in the financial condition,
earnings, business affairs or business prospects of RWT, whether or not arising
in the ordinary course of business, or
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(ii) if
there
has occurred any material adverse change in the financial markets in the United
States, any outbreak of hostilities or escalation thereof or other calamity
or
crisis or any change or development involving a prospective change in national
or international political,
financial or economic conditions, in each case the effect of which is such
as to
make it, in the judgment of the Underwriters, impracticable to market the
Certificates or to enforce contracts for the sale of the Certificates,
or
(iii) if
a
banking moratorium has been declared by either Federal or New York
authorities.
(b) This
Agreement shall terminate automatically without any required notice or other
action by any party hereto if the Closing Date for the issuance of the
Certificates has not occurred by August 15, 2007.
(c) Notwithstanding
any termination of this Agreement or the completion of all sales contemplated
hereby, the representations, warranties and agreements in Sections 1 and 2
hereof shall survive and remain in full force and effect.
Section
6. Miscellaneous.
(a) Amendments,
Etc.
No
rescission, modification, amendment, supplement or change of this Agreement
shall be valid or effective unless in writing and signed by all of the parties
to this Agreement. No amendment of this Agreement may modify or waive the
representations, warranties and agreements set forth in Sections 1 and 2
hereof.
(b) Binding
Upon Successors, Etc.
This
Agreement shall bind and inure to the benefit of and be enforceable by RWT
and
Sequoia, and the respective successors and assigns thereof. The parties hereto
acknowledge that Sequoia is acquiring the Mortgage Loans for the purpose of
pledging, transferring, assigning, setting over and otherwise conveying them
to
the Trustee, pursuant to the Pooling and Servicing Agreement for inclusion
in
the Trust Fund. As an inducement to Sequoia to purchase the Mortgage Loans,
RWT
acknowledges and consents to the assignment to the Trustee by Sequoia of all
of
Sequoia's rights against RWT hereunder in respect of the Mortgage Loans sold
to
Sequoia and that the enforcement or exercise of any right or remedy against
RWT
hereunder by the Trustee or to the extent permitted under the Pooling and
Servicing Agreement shall have the same force and effect as if enforced and
exercised by Sequoia directly.
(c) Counterparts.
This
Agreement may be executed in two or more counterparts, each of which shall
be
deemed an original but all of which together shall constitute one and the same
instrument.
(d) Governing
Law.
This
Agreement shall be governed by and construed in accordance with the laws of
the
State of New York.
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(e) Headings.
The
headings of the several parts of this Agreement are inserted for convenience
of
reference and are not intended to be a part of or affect the meaning or
interpretation of this Agreement.
(f) Definitions.
Capitalized terms not otherwise defined herein have the meanings ascribed to
such terms in the Pooling and Servicing Agreement.
(g) Nonpetition
Covenant.
Until
one year plus one day shall have elapsed since the termination of the Pooling
and Servicing Agreement in accordance with its terms, neither RWT nor any
assignee of RWT shall petition or otherwise invoke the process of any court
or
government authority for the purpose of commencing or sustaining a case against
Sequoia under any federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator
or
other similar official of Sequoia or any substantial part of its property,
or
ordering the winding up or liquidation of the affairs of Sequoia.
[remainder
of page intentionally left blank]
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IN
WITNESS WHEREOF, each party has caused this Mortgage Loan Purchase and Sale
Agreement to be executed by its duly authorized officer or officers as of the
day and year first above written.
RWT HOLDINGS, INC. | ||
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By: | /s/ Xxxx X. Xxxxxxxxxxx | |
Name: Xxxx X. Xxxxxxxxxxx
Title: Vice
President
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SEQUOIA
RESIDENTIAL FUNDING, INC.
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By: | /s/ Xxxx X. Xxxxxxxxxxx | |
Name: Xxxx X. Xxxxxxxxxxx
Title: Vice
President
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6
SCHEDULE
A
I.
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With
respect to Mortgage Loans purchased under the Mortgage Loan Flow
Purchase,
Sale and Servicing Agreement, dated as of February 1, 2002, between
Redwood Trust and GreenPoint Mortgage Funding, Inc. (the "Seller")
(the
"GreenPoint Agreement")
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With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to Pledged Mortgages (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the GreenPoint
Agreement.
(i) The
information set forth in the Mortgage Loan Schedule is true, complete and
correct in all material respects as of the Cut-Off Date and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(ii) The
Mortgage creates a first lien or a first priority ownership interest in an
estate in fee simple in real property securing the related Mortgage Note, free
and clear of all adverse claims, liens and encumbrances having priority over
the
first lien of the Mortgage subject only to (1) the lien of non-delinquent
current real property taxes and assessments not yet due and payable, (2)
covenants, conditions and restrictions, rights of way, easements and other
matters of public record as of the date of recording which are acceptable to
mortgage lending institutions generally and, with respect to any Mortgage Loan
for which an appraisal was made prior to the Cut-Off Date, either (A) which
are
referred to or otherwise considered in the appraisal made for the originator
of
the Mortgage Loan, or (B) which do not adversely affect the appraised value
of
the Mortgaged Property as set forth in such appraisal, and (C) other matters
to
which like properties are commonly subject which do not materially interfere
with the benefits of the security intended to be provided by the Mortgage or
the
use, enjoyment, value or marketability of the related Mortgaged Property. Any
security agreement, chattel mortgage or equivalent document related to and
delivered in connection with the Mortgage Loan establishes and creates a valid,
subsisting and enforceable first lien and first priority security interest
on
the property described therein;
(iii) The
Mortgage Loan has not been delinquent thirty (30) days or more at any time
during the twelve (12) month period prior to the Cut-off Date for such Mortgage
Loan. To RWT Holdings' knowledge, there are no defaults under the terms of
the
Mortgage Loan; and the Seller has not advanced funds, or induced, solicited
or
knowingly received any advance of funds from a party other than the owner of
the
Mortgaged Property subject to the Mortgage, directly or indirectly, for the
payment of any amount required by the Mortgage Loan;
(iv) To
RWT
Holdings' knowledge, there are no delinquent taxes which are due and payable,
ground rents, assessments or other outstanding charges affecting the related
Mortgaged Property;
(v) The
terms
of the Mortgage Note of the related Mortgagor and the Mortgage have not been
impaired, waived, altered or modified in any respect, except by written
instruments which have been recorded to the extent any such recordation is
required by applicable law or is necessary to protect the interests of the
Purchaser, and which have been approved by the title insurer and the primary
mortgage insurer, as applicable, and copies of which written instruments are
included in the Mortgage File. No other instrument of waiver, alteration or
modification has been executed, and no Mortgagor has been released, in whole
or
in part, from the terms thereof except in connection with an assumption
agreement, which assumption agreement is part of the Mortgage File and the
terms
of which are reflected on the Mortgage Loan Schedule;
(vi) The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will
the
operation of any of the terms of the Mortgage Note and the Mortgage, or the
exercise of any right thereunder, render the Mortgage Note or Mortgage
unenforceable, in whole or in part, or subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, and, to RWT
Holdings' knowledge, no such right of rescission, set-off, counterclaim or
defense has been asserted with respect thereto;
7
(vii) All
buildings upon the Mortgaged Property are insured by a generally acceptable
insurer pursuant to standard hazard policies conforming to the requirements
of
Xxxxxx Xxx and Xxxxxxx Mac. All such standard hazard policies are in effect
and
on the date of origination contained a standard mortgagee clause naming the
Seller and its successors in interest as loss payee and such clause is still
in
effect and, to RWT Holdings' knowledge, all premiums due thereon have been
paid.
If the Mortgaged Property is located in an area identified by the Federal
Emergency Management Agency as having special flood hazards under the Flood
Disaster Protection Act of 1973, as amended, such Mortgaged Property is covered
by flood insurance by a generally acceptable insurer in an amount not less
than
the requirements of Xxxxxx Mae and Xxxxxxx Mac. The Mortgage obligates the
Mortgagor thereunder to maintain all such insurance at the Mortgagor's cost
and
expense, and on the Mortgagor's failure to do so, authorizes the holder of
the
Mortgage to maintain such insurance at the Mortgagor's cost and expense and
to
seek reimbursement therefor from the Mortgagor;
(viii) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity or disclosure laws applicable to
the
Mortgage Loan have been complied with in all material respects;
(ix) The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such satisfaction, release, cancellation, subordination or
rescission;
(x) The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency and
other laws of general application affecting the rights of creditors, and the
Seller has taken all action necessary to transfer such rights of enforceability
to the Purchaser. All parties to the Mortgage Note and the Mortgage had the
legal capacity to enter into the Mortgage Loan and to execute and deliver the
Mortgage Note and the Mortgage. The Mortgage Note and the Mortgage have been
duly and properly executed by such parties. The proceeds of the Mortgage Note
have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor
have
been complied with;
(xi) Immediately
prior to the transfer and assignment to the Purchaser, the Mortgage Note and
the
Mortgage were not subject to an assignment or pledge, and the Seller had good
and marketable title to and was the sole owner thereof and had full right to
transfer and sell the Mortgage Loan to the Purchaser free and clear of any
encumbrance, equity, lien, pledge, charge, claim or security
interest;
(xii) The
Mortgage Loan is covered by an ALTA lender's title insurance policy or other
generally acceptable form of policy of insurance, with all necessary
endorsements, issued by a title insurer qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to
the
exceptions contained in clause (b) (1), (2) and (3) above) the Seller, its
successors and assigns, as to the first priority lien of the Mortgage in the
original principal amount of the Mortgage Loan. Such title insurance policy
affirmatively insures ingress and egress and against encroachments by or upon
the Mortgaged Property or any interest therein. The Seller is the sole insured
of such lender's title insurance policy, such title insurance policy has been
duly and validly endorsed to the Purchaser or the assignment to the Purchaser
of
the Seller's interest therein does not require the consent of or notification
to
the insurer and such lender's title insurance policy is in full force and effect
and will be in full force and effect upon the consummation of the transactions
contemplated by the GreenPoint Agreement. To RWT Holdings' knowledge, no claims
have been made under such lender's title insurance policy, and no prior holder
of the related Mortgage has done, by act or omission, anything which would
impair the coverage of such lender's title insurance policy;
8
(xiii) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and, to RWT Holdings' knowledge, no event
which, with the passage of time or with notice and the expiration of any grace
or cure period, would constitute a default, breach, violation or event
permitting acceleration; and neither the Seller nor any prior mortgagee has
waived any default, breach, violation or event permitting
acceleration;
(xiv) To
the
best of RWT Holdings' knowledge, there are no mechanics, or similar liens or
claims which have been filed for work, labor or material affecting the related
Mortgaged Property which are or may be liens prior to or equal to the lien
of
the related Mortgage;
(xv) To
RWT
Holdings' knowledge, all improvements subject to the Mortgage lie wholly within
the boundaries and building restriction lines of the Mortgaged Property (and
wholly within the project with respect to a condominium unit) and no
improvements on adjoining properties encroach upon the Mortgaged Property except
those which are insured against by the title insurance policy referred to in
clause (xii) above and all improvements on the property comply with all
applicable zoning and subdivision laws and ordinances;
(xvi) The
Mortgage Loan was originated by the Seller or by an eligible correspondent
of
the Seller. The Mortgage Loan complies in all material respects with all the
terms, conditions and requirements of the Seller's underwriting standards
attached to the GreenPoint Agreement as Exhibit G. The Mortgage Notes and
Mortgages are on forms acceptable to Xxxxxx Xxx or Xxxxxxx Mac;
(xvii) The
Mortgage Loan contains the usual and enforceable provisions of the originator
at
the time of origination for the acceleration of the payment of the unpaid
principal amount if the related Mortgaged Property is sold without the prior
consent of the mortgagee thereunder. The Mortgage Loan has an original term
to
maturity of not more than 30 years, with interest payable in arrears on the
first day of each month. Except as otherwise set forth on the Mortgage Loan
Schedule, the Mortgage Loan does not contain terms or provisions which would
result in negative amortization nor contain “graduated payment”
features;
(xviii) The
Mortgaged Property at origination of the Mortgage Loan was and, to RWT Holdings'
knowledge, currently is free of damage and waste and at origination of the
Mortgage Loan there was, and, to RWT Holdings' knowledge, there currently is,
no
proceeding pending for the total or partial condemnation thereof;
(xix) The
related Mortgage contains enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including,
(1) in the case of a Mortgage designated as a deed of trust, by trustee's sale,
and (2) otherwise by judicial foreclosure;
(xx) If
the
Mortgage constitutes a deed of trust, a trustee, duly qualified if required
under applicable law to act as such, has been properly designated and currently
so serves and is named in the Mortgage, and no fees or expenses are or will
become payable by the Purchaser to the trustee under the deed of trust, except
in connection with a trustees sale or attempted sale after default by the
Mortgagor;
(xxi) If
required by the applicable processing style, the Mortgage File contains an
appraisal of the related Mortgaged Property made and signed prior to the final
approval of the mortgage loan application by a qualified appraiser satisfying
the requirements of Title XI of The Financial Institutions Reform, and
Enforcement Act of 1989, as amended, and the regulations promulgated thereunder,
that is acceptable to Xxxxxx Mae or Xxxxxxx Mac and approved by the Seller.
The
appraisal, if applicable, is in a form generally acceptable to Xxxxxx Mae or
Xxxxxxx Mac;
(xxii) All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in substantial compliance with any
and
all applicable licensing requirements of the laws of the state wherein the
Mortgaged Property is located, and (B) (1) organized under the laws of such
state, or (2) qualified to do business in such state, or (3) federal savings
and
loan associations, national banks, a Federal Home Loan Bank or the Federal
Reserve Bank, or (4) not doing business in such state;
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(xxiii) To
the
best of RWT Holdings' knowledge, there does not exist any circumstances or
conditions with respect to the Mortgage, the Mortgaged Property, the Mortgagor
or the Mortgagor's credit standing that could reasonably be expected to cause
private institutional investors to regard the Mortgage Loan as an unacceptable
investment, to cause the Mortgage Loan to become delinquent, or to materially
adversely affect the value or marketability of the Mortgage Loan;
(xxiv) Each
of
the Mortgaged Properties consists of a single parcel of real property with
a
detached single-family residence erected thereon, or a two- to four-family
dwelling, or a townhouse, or an individual condominium unit in a condominium
project or an individual unit in a planned unit development. Any condominium
unit or planned unit development either conforms with applicable Xxxxxx Mae
or
Xxxxxxx Mac requirements regarding such dwellings or is covered by a waiver
confirming that such condominium unit or planned unit development is acceptable
to Xxxxxx Mae or Xxxxxxx Mac or is otherwise “warrantable” with respect thereto.
No such residence is a mobile home or manufactured dwelling;
(xxv) The
ratio
of the original outstanding principal amount of the Mortgage Loan to the lesser
of the appraised value (or stated value if an appraisal was not a requirement
of
the applicable processing style) of the Mortgaged Property at origination or
the
purchase price of the Mortgaged Property securing each Mortgage Loan (the
“Loan-to-Value Ratio”) is not in excess of 95.00%. The original Loan-to-Value
Ratio of each Mortgage Loan either was not more than 95.00% or the excess over
80.00% is insured as to payment defaults by a Primary Mortgage Insurance Policy
issued by a primary mortgage insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac;
(xxvi) The
Seller is either, and each Mortgage Loan was originated by, a savings and loan
association, savings bank, commercial bank, credit union, insurance company
or
similar institution which is supervised and examined by a federal or State
authority, or by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Section 203 and 211 of the National Housing
Act;
(xxvii) The
origination, collection and servicing practices with respect to each Mortgage
Note and Mortgage have been legal in all material respects. With respect to
escrow deposits and payments that the Seller collects, all such payments are
in
the possession of, or under the control of, the Seller, and there exist no
deficiencies in connection therewith for which customary arrangements for
repayment thereof have not been made. No escrow deposits or other charges or
payments due under the Mortgage Note have been capitalized under any Mortgage
or
the related Mortgage Note;
(xxviii)
No fraud or misrepresentation of a material fact with respect to the origination
of a Mortgage Loan has taken place on the part of the Seller;
(xxix)
No
Mortgage Loan contains a provision whereby the related Mortgagor can convert
the
related Mortgage Loan to a fixed rate instrument;
(xxx)
No
Mortgage Loan is subject to the provisions of the Homeownership and Equity
Protection Act of 1994 (“HOEPA”) and no Mortgage Loan is “high cost” as defined
by any applicable federal, state or local predatory or abusive lending law,
and
no mortgage loan is a “high cost” or “covered” mortgage loan, as applicable (as
such terms are defined in the then current Standard and Poor’s LEVELS Glossary
which is now Version 6.0, Appendix E);
(xxxi)None
of the proceeds of any Mortgage Loan were used to finance the purchase of single
premium credit insurance policies;
10
(xxxii) No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(xxxiii)
Each Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC;
(xxxiv) There
were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in
the
Mortgage Loans; and
(xxxv) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state and federal laws, including, but not limited to, all
applicable predatory or abusive lending laws.
11
II.
|
With
respect to Mortgage Loans purchased under the Mortgage Loan Flow
Purchase,
Sale and Servicing Agreement, dated as of August 1, 2002, between
RWT
Holdings and GreenPoint Mortgage Funding, Inc. (the "Seller") (the
"GreenPoint-RWT
Agreement")
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the GreenPoint-RWT
Agreement.
(i) The
information set forth in the Mortgage Loan Schedule is true, complete and
correct in all material respects as of the Cut-Off Date;
(ii) The
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(iii) The
Mortgage creates a first lien on or a first priority ownership interest in
real
property securing the related Mortgage Note, free and clear of all adverse
claims, liens and encumbrances having priority over the first lien of the
Mortgage subject only to (1) the lien of non-delinquent current real property
taxes and assessments not yet due and payable, (2) covenants, conditions and
restrictions, rights of way, easements and other matters of public record as
of
the date of recording which are acceptable to mortgage lending institutions
generally and, with respect to any Mortgage Loan for which an appraisal was
made
prior to the Cut-Off Date, either (A) which are referred to or otherwise
considered in the appraisal made for the originator of the Mortgage Loan, or
(B)
which do not adversely affect the appraised value of the Mortgaged Property
as
set forth in such appraisal, and (C) other matters to which like properties
are
commonly subject which do not materially interfere with the benefits of the
security intended to be provided by the Mortgage or the use, enjoyment, value
or
marketability of the related Mortgaged Property. If the Mortgaged Property
includes a leasehold estate, the lease is valid, in full force and affect,
and
conforms to the Xxxxxx Xxx requirements for leasehold estates. Any security
agreement, chattel mortgage or equivalent document related to and delivered
in
connection with the Mortgage Loan establishes and creates a valid, subsisting
and enforceable first lien and first priority security interest on the property
described therein;
(iv) The
Mortgage Loan has not been delinquent thirty (30) days or more at any time
during the twelve (12) month period prior to the Cut-off Date for such Mortgage
Loan. To RWT Holdings' knowledge, there are no defaults under the terms of
the
Mortgage Loan; and the Seller has not advanced funds, or induced, solicited
or
knowingly received any advance of funds from a party other than the owner of
the
Mortgaged Property subject to the Mortgage, directly or indirectly, for the
payment of any amount required by the Mortgage Loan;
(v) To
RWT
Holdings' knowledge, there are no delinquent taxes which are due and payable,
ground rents, assessments or other outstanding charges affecting the related
Mortgaged Property;
(vi) The
terms
of the Mortgage Note of the related Mortgagor and the Mortgage have not been
impaired, waived, altered or modified in any respect, except by written
instruments which have been recorded to the extent any such recordation is
required by applicable law or is necessary to protect the interests of the
Purchaser, and which have been approved by the title insurer and the primary
mortgage insurer, as applicable, and copies of which written instruments are
included in the Mortgage File. No other instrument of waiver, alteration or
modification has been executed, and no Mortgagor has been released, in whole
or
in part, from the terms thereof except in connection with an assumption
agreement, which assumption agreement is part of the Mortgage File and the
terms
of which are reflected on the Mortgage Loan Schedule;
(vii) The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will
the
operation of any of the terms of the Mortgage Note and the Mortgage, or the
exercise of any right thereunder, render the Mortgage Note or Mortgage
unenforceable, in whole or in part, or subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, and, to RWT
Holdings' knowledge, no such right of rescission, set-off, counterclaim or
defense has been asserted with respect thereto;
12
(viii) All
buildings upon the Mortgaged Property are insured by a generally acceptable
insurer pursuant to standard hazard policies conforming to the requirements
of
Xxxxxx Mae and Xxxxxxx Mac. All such standard hazard policies are in effect
and
on the date of origination contained a standard mortgagee clause naming the
Seller and its successors in interest as loss payee and such clause is still
in
effect and, to RWT Holdings' knowledge, all premiums due thereon have been
paid.
If the Mortgaged Property is located in an area identified by the Federal
Emergency Management Agency as having special flood hazards under the Flood
Disaster Protection Act of 1973, as amended, such Mortgaged Property is covered
by flood insurance by a generally acceptable insurer in an amount not less
than
the requirements of Xxxxxx Mae and Xxxxxxx Mac. The Mortgage obligates the
Mortgagor thereunder to maintain all such insurance at the Mortgagor's cost
and
expense, and on the Mortgagor's failure to do so, authorizes the holder of
the
Mortgage to maintain such insurance at the Mortgagor's cost and expense and
to
seek reimbursement therefor from the Mortgagor;
(ix) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity or disclosure laws applicable to
the
Mortgage Loan have been complied with in all material respects;
(x) The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such satisfaction, release, cancellation, subordination or
rescission;
(xi) The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency and
other laws of general application affecting the rights of creditors, and the
Seller has taken all action necessary to transfer such rights of enforceability
to the Purchaser. All parties to the Mortgage Note and the Mortgage had the
legal capacity to enter into the Mortgage Loan and to execute and deliver the
Mortgage Note and the Mortgage. The Mortgage Note and the Mortgage have been
duly and properly executed by such parties. The proceeds of the Mortgage Note
have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor
have
been complied with;
(xii) Immediately
prior to the transfer and assignment to the Purchaser, the Mortgage Note and
the
Mortgage were not subject to an assignment or pledge, and the Seller had good
and marketable title to and was the sole owner thereof and had full right to
transfer and sell the Mortgage Loan to the Purchaser free and clear of any
encumbrance, equity, lien, pledge, charge, claim or security
interest;
(xiii) The
Mortgage Loan is covered by an ALTA lender's title insurance policy or other
generally acceptable form of policy of insurance, with all necessary
endorsements, issued by a title insurer qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to
the
exceptions contained in clause (b) (1), (2) and (3) above) the Seller, its
successors and assigns, as to the first priority lien of the Mortgage in the
original principal amount of the Mortgage Loan. Such title insurance policy
affirmatively insures ingress and egress and against encroachments by or upon
the Mortgaged Property or any interest therein. The Seller is the sole insured
of such lender's title insurance policy, such title insurance policy has been
duly and validly endorsed to the Purchaser or the assignment to the Purchaser
of
the Seller's interest therein does not require the consent of or notification
to
the insurer and such lender's title insurance policy is in full force and effect
and will be in full force and effect upon the consummation of the transactions
contemplated by the GreenPoint-RWT Agreement. To RWT Holdings' knowledge, no
claims have been made under such lender's title insurance policy, and no prior
holder of the related Mortgage has done, by act or omission, anything which
would impair the coverage of such lender's title insurance policy;
13
(xiv) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and, to RWT Holdings' knowledge, no event
which, with the passage of time or with notice and the expiration of any grace
or cure period, would constitute a default, breach, violation or event
permitting acceleration; and neither the Seller nor any prior mortgagee has
waived any default, breach, violation or event permitting
acceleration;
(xv) To
the
best of RWT Holdings' knowledge, there are no mechanics, or similar liens or
claims which have been filed for work, labor or material affecting the related
Mortgaged Property which are or may be liens prior to or equal to the lien
of
the related Mortgage;
(xvi) To
RWT
Holdings' knowledge, all improvements subject to the Mortgage lie wholly within
the boundaries and building restriction lines of the Mortgaged Property (and
wholly within the project with respect to a condominium unit) and no
improvements on adjoining properties encroach upon the Mortgaged Property except
those which are insured against by the title insurance policy referred to in
clause (xiii) above and all improvements on the property comply with all
applicable zoning and subdivision laws and ordinances;
(xvii) The
Mortgage Loan was originated by the Seller or by an eligible correspondent
of
the Seller. The Mortgage Loan complies in all material respects with all the
terms, conditions and requirements of the Seller's underwriting standards
attached to the GreenPoint-RWT Agreement as Exhibit G. The Mortgage Notes and
Mortgages are on forms acceptable to Xxxxxx Xxx or Xxxxxxx Mac;
(xviii) The
Mortgage Loan contains the usual and enforceable provisions of the originator
at
the time of origination for the acceleration of the payment of the unpaid
principal amount if the related Mortgaged Property is sold without the prior
consent of the mortgagee thereunder. The Mortgage Loan has an original term
to
maturity of not more than 30 years, with interest payable in arrears on the
first day of each month. Except as otherwise set forth on the Mortgage Loan
Schedule, the Mortgage Loan does not contain terms or provisions which would
result in negative amortization nor contain “graduated payment”
features;
(xix) The
Mortgaged Property at origination of the Mortgage Loan was and, to RWT Holdings'
knowledge, currently is free of damage and waste and at origination of the
Mortgage Loan there was, and, to RWT Holdings' knowledge, there currently is,
no
proceeding pending for the total or partial condemnation thereof;
(xx) The
related Mortgage contains enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including,
(1) in the case of a Mortgage designated as a deed of trust, by trustee's sale,
and (2) otherwise by judicial foreclosure;
(xxi) If
the
Mortgage constitutes a deed of trust, a trustee, duly qualified if required
under applicable law to act as such, has been properly designated and currently
so serves and is named in the Mortgage, and no fees or expenses are or will
become payable by the Purchaser to the trustee under the deed of trust, except
in connection with a trustees sale or attempted sale after default by the
Mortgagor;
(xxii) If
required by the applicable processing style, the Mortgage File contains an
appraisal of the related Mortgaged Property made and signed prior to the final
approval of the mortgage loan application by a qualified appraiser satisfying
the requirements of Title XI of The Financial Institutions Reform, and
Enforcement Act of 1989, as amended, and the regulations promulgated thereunder,
that is acceptable to Xxxxxx Mae or Xxxxxxx Mac and approved by the Seller.
The
appraisal, if applicable, is in a form generally acceptable to Xxxxxx Mae or
Xxxxxxx Mac;
(xxiii) All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in substantial compliance with any
and
all applicable licensing requirements of the laws of the state wherein the
Mortgaged Property is located, and (B) (1) organized under the laws of such
state, or (2) qualified to do business in such state, or (3) federal savings
and
loan associations, national banks, a Federal Home Loan Bank or the Federal
Reserve Bank, or (4) not doing business in such state;
14
(xxiv) To
the
best of RWT Holdings' knowledge, there does not exist any circumstances or
conditions with respect to the Mortgage, the Mortgaged Property, the Mortgagor
or the Mortgagor's credit standing that could reasonably be expected to cause
private institutional investors to regard the Mortgage Loan as an unacceptable
investment, to cause the Mortgage Loan to become delinquent, or to materially
adversely affect the value or marketability of the Mortgage Loan;
(xxv) Each
of
the Mortgaged Properties consists of a single parcel of real property with
a
detached single-family residence erected thereon, or a two- to four-family
dwelling, or a townhouse, or an individual condominium unit in a condominium
project or an individual unit in a planned unit development. Any condominium
unit or planned unit development either conforms with applicable Xxxxxx Mae
or
Xxxxxxx Mac requirements regarding such dwellings or is covered by a waiver
confirming that such condominium unit or planned unit development is acceptable
to Xxxxxx Mae or Xxxxxxx Mac or is otherwise “warrantable” with respect thereto.
No such residence is a mobile home or manufactured dwelling;
(xxvi) The
ratio
of the original outstanding principal amount of the Mortgage Loan to the lesser
of the appraised value (or stated value if an appraisal was not a requirement
of
the applicable processing style) of the Mortgaged Property at origination or
the
purchase price of the Mortgaged Property securing each Mortgage Loan (the
“Loan-to-Value Ratio”) is not in excess of 95.00%. The original Loan-to-Value
Ratio of each Mortgage Loan either was not more than 95.00% or the excess over
80.00% is insured as to payment defaults by a Primary Mortgage Insurance Policy
issued by a primary mortgage insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac;
(xxvii) The
Seller is either, and each Mortgage Loan was originated by, a savings and loan
association, savings bank, commercial bank, credit union, insurance company
or
similar institution which is supervised and examined by a federal or State
authority, or by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Section 203 and 211 of the National Housing
Act;
(xxviii) The
origination, collection and servicing practices with respect to each Mortgage
Note and Mortgage have been legal in all material respects. With respect to
escrow deposits and payments that the Seller collects, all such payments are
in
the possession of, or under the control of, the Seller, and there exist no
deficiencies in connection therewith for which customary arrangements for
repayment thereof have not been made. No escrow deposits or other charges or
payments due under the Mortgage Note have been capitalized under any Mortgage
or
the related Mortgage Note;
(xxvi) No
fraud
or misrepresentation of a material fact with respect to the origination of
a
Mortgage Loan has taken place on the part of the Seller;
(xxvii) No
Mortgage Loan contains a provision whereby the related Mortgagor can convert
the
related Mortgage Loan to a fixed rate instrument;
(xxxi) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act;
(xxxii) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
15
(xxxiii) No
Mortgage Loan is covered by the Home Ownership and Equity Protection Act of
1994
and none of the mortgage loans are High Cost as defined by the applicable
predatory and abusive lending laws and no mortgage loan is a “high cost” or
“covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 6.0, Appendix
E);
(xxxiv)
No Mortgage Loan which is secured by property located in the State of New Jersey
is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act,
which became effective November 27, 2003;
(xxxv)
No
Mortgage Loan which is secured by property located in the State of New Mexico
is
a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
which became effective January 1, 2004;
(xxxvi)
No Mortgage Loan which is secured by property located in the State of Kentucky
is a “High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which
became effective June 24, 2003;
(xxxvii)
None of the proceeds of any Mortgage Loan were used to finance the purchase
of
single premium credit insurance policies;
(xxxviii)
No Mortgage Loan contains prepayment penalties that extend beyond five years
after the date of origination;
(xxxix) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC; and
(xl) There
were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in
the
Mortgage Loans.
16
III.
|
Mortgage
Loans Purchased under the Mortgage Loan Flow Purchase , Sale and
Servicing
Agreement
dated as of January 1, 2006 between
RWT Holdings, Inc. (“RWT Holdings”) and GreenPoint Mortgage Funding, Inc.
(the “Seller/Servicer”) (the “GreenPoint-RWT
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the GreenPoint-RWT
Agreement.
(i)
The
information set forth in the Mortgage Loan Schedule is true, complete
and
correct
in all material respects as of the Cut-Off Date and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(ii)
The
Mortgage creates a first lien on or a first priority ownership interest in
real
property securing the related Mortgage Note, free and clear of all adverse
claims, liens and encumbrances having priority over the first lien of the
Mortgage subject only to (1) the lien of nondelinquent current real property
taxes and assessments not yet due and payable, (2) covenants, conditions and
restrictions, rights of way, easements and other matters of public record as
of
the date of recording which are acceptable to mortgage lending institutions
generally and, with respect to any Mortgage Loan for which an appraisal was
made
prior to the Cut-Off Date, either (A) which are referred to or otherwise
considered in the appraisal made for the originator of the Mortgage Loan, or
(B)
which do not adversely affect the appraised value of the Mortgaged Property
as
set forth in such appraisal, and (C) other matters to which like properties
are
commonly subject which do not materially interfere with the benefits of the
security intended to be provided by the Mortgage or the use, enjoyment, value
or
marketability of the related Mortgaged Property. If the Mortgaged Property
includes a leasehold estate, the lease is valid, in full force and affect,
and
conforms to the Xxxxxx Xxx requirements for leasehold estates. Any security
agreement, chattel mortgage or equivalent document related to and delivered
in
connection with the Mortgage Loan establishes and creates a valid, subsisting
and enforceable first lien and first priority security interest on the property
described therein;
(iii)
The
Mortgage Loan has not been delinquent thirty (30) days or more at any time
during the twelve (12) month period prior to the Cut-off Date for such Mortgage
Loan. There are no defaults under the terms of the Mortgage Loan; and the Seller
has not advanced funds, or induced, solicited or knowingly received any advance
of funds from a party other than the owner of the Mortgaged Property subject
to
the Mortgage, directly or indirectly, for the payment of any amount required
by
the Mortgage Loan;
(iv)
There are no delinquent taxes which are due and payable, ground rents,
assessments or other outstanding charges affecting the related Mortgaged
Property;
(v)
The
terms of the Mortgage Note of the related Mortgagor and the Mortgage have
not
been
impaired, waived, altered or modified in any respect, except by written
instruments which have been recorded to the extent any such recordation is
required by applicable law or is necessary to protect the interests of the
Purchaser, and which have been approved by the title insurer and the primary
mortgage insurer, as applicable, and copies of which written instruments are
included in the Mortgage File. No other instrument of waiver, alteration or
modification has been executed, and no Mortgagor has been released, in whole
or
in part, from the terms thereof except in connection with an assumption
agreement, which assumption agreement is part of the Mortgage File and the
terms
of which are reflected on the Mortgage Loan Schedule;
(vi)
The
Mortgage Note and the Mortgage are not subject to any right of rescission,
setoff, counterclaim or defense, including the defense of usury, nor will the
operation of any of the terms of the Mortgage Note and the Mortgage, or the
exercise of any right thereunder, render the Mortgage Note or Mortgage
unenforceable, in whole or in part, or subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, and no such
right of rescission, set-off, counterclaim or defense has been asserted with
respect thereto;
17
(vii)
All
buildings upon the Mortgaged Property are insured by a generally acceptable
insurer pursuant to standard hazard policies conforming to the requirements
of
Xxxxxx Mae and Xxxxxxx Mac. All such standard hazard policies are in effect
and
on the date of origination contained a standard mortgagee clause naming the
Seller and its successors in interest as loss payee and such clause is still
in
effect and all premiums due thereon have been paid. If the Mortgaged Property
is
located in an area identified by the Federal Emergency Management Agency as
having special flood hazards under the Flood Disaster Protection Act of 1973,
as
amended, such Mortgaged Property is covered by flood insurance by a generally
acceptable insurer in an amount not less than the requirements of Xxxxxx Mae
and
Xxxxxxx Mac. The Mortgage obligates the Mortgagor thereunder to maintain all
such insurance at the Mortgagor's cost and expense, and on
the
Mortgagor's failure to do so, authorizes the holder of the Mortgage to maintain
such insurance at the Mortgagor's cost and expense and to seek reimbursement
therefor from the Mortgagor;
(viii)
Any and all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity or disclosure laws applicable to
the
Mortgage Loan have been complied with in all material respects;
(ix)
The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such satisfaction, release, cancellation, subordination or
rescission;
(x)
The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency and
other laws of general application affecting the rights of creditors, and the
Seller has taken all action necessary to transfer such rights of enforceability
to the Purchaser. All parties to the Mortgage Note and the Mortgage had the
legal capacity to enter into the Mortgage Loan and to execute and deliver the
Mortgage Note and the Mortgage. The Mortgage Note and the Mortgage have been
duly and properly executed by such parties. The proceeds of the Mortgage Note
have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
offsite improvements and as to disbursements of any escrow funds therefor have
been complied with;
(xi)
Immediately prior to the transfer and assignment to the Purchaser, the Mortgage
Note and the Mortgage were not subject to an assignment or pledge, and the
Seller had good and marketable title to and was the sole owner thereof and
had
full right to transfer and sell the Mortgage Loan to the Purchaser free and
clear of any encumbrance, equity, lien, pledge, charge, claim or security
interest;
(xii)
The
Mortgage Loan is covered by an ALTA lender's title insurance policy or other
generally acceptable form of policy of insurance, with all necessary
endorsements, issued by a title insurer qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to
the
exceptions contained in clause (b) (1), (2) and (3) above) the Seller, its
successors and assigns, as to the first priority lien of the Mortgage in the
original principal amount of the Mortgage Loan. Such title insurance policy
affirmatively insures ingress and egress and against encroachments by or upon
the Mortgaged Property or any interest therein. The Seller is the sole insured
of such lender's title insurance policy, such title insurance policy has been
duly and validly endorsed to the Purchaser or the assignment to the Purchaser
of
the Seller's interest therein does not require the consent of or notification
to
the insurer and such lender's title insurance policy is in full force and effect
and will be in full force and effect upon the consummation of the transactions
contemplated by the
GreenPoint-RWT
Agreement. No claims have been made under such lender's title insurance policy,
and no prior holder of the related Mortgage has done, by act or omission,
anything which would impair the coverage of such lender's title insurance
policy;
18
(xiii)
There is no default, breach, violation or event of acceleration existing under
the Mortgage or the related Mortgage Note and, to the Seller’s knowledge, no
event which, with the passage of time or with notice and the expiration of
any
grace or cure period, would constitute a default, breach, violation or event
permitting acceleration; and neither the Seller nor any prior mortgagee has
waived any default, breach, violation or event permitting
acceleration;
(xiv)
To
the best of the Seller’s knowledge, there are no mechanics, or similar liens or
claims which have been filed for work, labor or material affecting the related
Mortgaged Property which are or may be liens prior to or equal to the lien
of
the related Mortgage;
(xv)
All
improvements subject to the Mortgage lie wholly within the boundaries and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (xii) above and
all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances;
(xvi)
The
Mortgage Loan was originated by the Seller or by an eligible correspondent
of
the Seller. The Mortgage Loan complies in all material respects with all the
terms, conditions and requirements of the Seller's underwriting standards
attached here as Exhibit G. The Mortgage Notes and Mortgages are on forms
acceptable to Xxxxxx Xxx or Xxxxxxx Mac;
(xvii)
The Mortgage Loan contains the usual and enforceable provisions of the
originator at the time of origination for the acceleration of the payment of
the
unpaid principal amount if the related Mortgaged Property is sold without the
prior consent of the mortgagee thereunder. The Mortgage Loan has an original
term to maturity of not more than 40 years, with interest payable in arrears
on
the first day of each month. Except as otherwise set forth on the Mortgage
Loan
Schedule, the Mortgage Loan does not contain terms or provisions which would
result in negative amortization nor contain “graduated payment”
features;
(xviii)
The Mortgaged Property at origination of the Mortgage Loan was and, to the
Seller’s knowledge, currently is free of damage and waste and at origination of
the Mortgage Loan there was, and, to the Seller’s knowledge, there currently is,
no proceeding pending for the total or partial condemnation
thereof;
(xix)
The
related Mortgage contains enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for the realization against the
Mortgaged Property of the benefits of the security provided thereby, including,
(1) in the case of a Mortgage designated as a deed of trust, by trustee's sale,
and (2) otherwise by judicial foreclosure;
(xx)
If
the Mortgage constitutes a deed of trust, a trustee, duly qualified if required
under applicable law to act as such, has been properly designated and currently
so serves and is named in the Mortgage, and no fees or expenses are or will
become payable by the Purchaser to the trustee under the deed of trust, except
in connection with a trustees sale or attempted sale after default by the
Mortgagor;
(xxi)
If
required by the applicable processing style, the Mortgage File contains an
appraisal
of the related Mortgaged Property made and signed prior to the final approval
of
the mortgage loan application by a qualified appraiser satisfying the
requirements of Title XI of The Financial Institutions Reform, and Enforcement
Act of 1989, as amended, and the regulations promulgated thereunder, that is
acceptable to Xxxxxx Xxx or Xxxxxxx Mac and approved by the Seller. The
appraisal, if applicable, is in a form generally acceptable to Xxxxxx Mae or
Xxxxxxx Mac;
(xxii)
All parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in substantial compliance with any
and
all applicable licensing requirements of the laws of the state wherein the
Mortgaged Property is located, and (B) (1) organized under the laws of such
state, or (2) qualified to do business in such state, or (3) federal savings
and
loan associations, national banks, a Federal Home Loan Bank or the Federal
Reserve Bank, or (4) not doing business in such state;
19
(xxiii)
To the best of the Seller’s knowledge, there does not exist any circumstances or
conditions with respect to the Mortgage, the Mortgaged Property, the Mortgagor
or the Mortgagor's credit standing that could reasonably be expected to cause
private institutional investors to regard the Mortgage Loan as an unacceptable
investment, to cause the Mortgage Loan to become delinquent, or to materially
adversely affect the value or marketability of the Mortgage Loan;
(xxiv)
Each of the Mortgaged Properties consists of a single parcel of real property
with a detached single-family residence erected thereon, or a two- to
four-family dwelling, or a townhouse, or an individual condominium unit in
a
condominium project or an individual unit in a planned unit development. Any
condominium unit or planned unit development either conforms with applicable
Xxxxxx Mae or Xxxxxxx Mac requirements regarding such dwellings or is covered
by
a waiver confirming that such condominium unit or planned unit development
is
acceptable to Xxxxxx Mae or Xxxxxxx Mac or is otherwise “warrantable” with
respect thereto. No such residence is a mobile home or manufactured
dwelling;
(xxv)
The
ratio of the original outstanding principal amount of the Mortgage Loan to
the
lesser of the appraised value (or stated value if an appraisal was not a
requirement of the applicable processing style) of the Mortgaged Property at
origination or the purchase price of the Mortgaged Property securing each
Mortgage Loan (the “Loan-to-Value Ratio”) is not in excess of 95.00%. The
original Loan-to-Value Ratio of each Mortgage Loan either was not more than
95.00% or the excess over 80.00% is insured as to payment defaults by a Primary
Mortgage Insurance Policy issued by a primary mortgage insurer acceptable to
Xxxxxx Mae or Xxxxxxx Mac;
(xxvi)
The Seller is either, and each Mortgage Loan was originated by, a savings and
loan association, savings bank, commercial bank, credit union, insurance company
or similar institution which is supervised and examined by a federal or State
authority, or by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Section 203 and 211 of the National Housing
Act;
(xxvii)
The origination, collection and servicing practices with respect to each
Mortgage Note and Mortgage have been legal in all material respects. With
respect to escrow deposits and payments that the Seller collects, all such
payments are in the possession of, or under the control of, the Seller, and
there exist no deficiencies in connection therewith for which customary
arrangements for repayment thereof have not been made. No escrow deposits or
other charges or payments due under the Mortgage Note have been capitalized
under any Mortgage or the related Mortgage Note;
(xxviii)
No fraud or misrepresentation of a material fact with respect to the origination
of a Mortgage Loan has taken place on the part of the Seller;
(xxix)
No
Mortgage Loan contains a provision whereby the related Mortgagor can convert
the
related Mortgage Loan to a fixed rate instrument;
(xxx)
No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act, which became effective October
1,
2002;
(xxxi) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
20
(xxxii) None
of
the mortgage loans are High Cost as defined by the applicable local, state
and
federal predatory and abusive lending laws and no mortgage loan is a “high cost”
or “covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 6.0, Appendix
E);
(xxxiii)
No Mortgage Loan which is secured by property located in the State of New Jersey
is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act,
which became effective November 27, 2003;
(xxxiv)
No Mortgage Loan which is secured by property located in the State of New Mexico
is a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection
Act, which became effective January 1, 2004;
(xxxv)
No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003;
(xxxvi) No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004;
(xxxvii) No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.);
(xxxviii) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005;
(xxxix) None
of
the proceeds of any Mortgage Loan were used to finance the purchase of single
premium credit insurance policies;
(xl) No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(xli) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC; and
(xlii) There
were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
21
IV. |
With
respect to Mortgage Loans purchased under the Seller’s Purchase,
Warranties
and Interim Servicing Agreement, dated as of January 1, 2004, between
GreenPoint Mortgage Funding, Inc. (“GreenPoint") and GMAC Mortgage
Corporation (“GMAC”) and assigned to RWT by GMAC under the Assignment,
Assumption and Recognition Agreement(s), dated as of the dates of
the
Purchase Price and Terms Letter(s), among GMAC, GreenPoint and RWT
(together, the "GMAC-RWT
Agreement")
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the GMAC-RWT
Agreement.
(a) The
information set forth in the related Mortgage Loan Schedule, including any
diskette or other related data tapes sent to the Purchaser, is complete, true
and correct in all material respects and the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(b) The
Mortgage creates a first lien or a first priority ownership interest in an
estate in fee simple in real property securing the related Mortgage
Note;
(c) All
payments due on or prior to the related Closing Date for such Mortgage Loan
have
been made as of the related Closing Date, the Mortgage Loan is not delinquent
in
payment more than 30 days and has not been dishonored; there are no material
defaults under the terms of the Mortgage Loan; RWT Holdings has not advanced
funds, or induced, solicited or knowingly received any advance of funds from
a
party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage
Loan; no payment with respect to each Mortgage Loan has been delinquent during
the preceding twelve-month period;
(d) All
taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing have been paid, or escrow funds have been established in an amount
sufficient to pay for every such escrowed item which remains unpaid and which
has been assessed but is not yet due and payable;
(e) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments which have been recorded
to the extent any such recordation is required by law. No instrument of waiver,
alteration or modification has been executed, and no Mortgagor has been
released, in whole or in part, from the terms thereof except in connection
with
an assumption agreement and which assumption agreement is part of the Mortgage
File and the terms of which are reflected in the related Mortgage Loan Schedule;
the substance of any such waiver, alteration or modification has been approved
by the issuer of any related Primary Mortgage Insurance Policy and title
insurance policy, to the extent required by the related
policies;
(f) The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense
of
usury, nor will the operation of any of the terms of the Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render the Mortgage Note
or
Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto; and the Mortgagor was not a debtor in any state
or federal bankruptcy or insolvency proceeding at the time the Mortgage Loan
was
originated;
22
(g) All
buildings or other customarily insured improvements upon the Mortgaged Property
are insured by an insurer acceptable under the Xxxxxx Mae Guides, against loss
by fire, hazards of extended coverage and such other hazards as are provided
for
in the Xxxxxx Xxx Guides or by the Xxxxxxx Mac Guides, in an amount representing
coverage not less than the lesser of (i) the maximum insurable value of the
improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such
that
the proceeds thereof shall be sufficient to prevent the Mortgagor and/or the
mortgagee from becoming a co-insurer. All such standard hazard policies are
in
full force and effect and on the date of origination contained a standard
mortgagee clause naming RWT Holdings and its successors in interest and assigns
as loss payee and such clause is still in effect and all premiums due thereon
have been paid. If required by the Flood Disaster Protection Act of 1973, as
amended, the Mortgage Loan is covered by a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
which policy conforms to Xxxxxx Xxx and Xxxxxxx Mac requirements, in an amount
not less than the amount required by the Flood Disaster Protection Act of 1973,
as amended. Such policy was issued by an insurer acceptable under Xxxxxx Mae
or
Xxxxxxx Mac guidelines. The Mortgage obligates the Mortgagor thereunder to
maintain all such insurance at the Mortgagor’s cost and expense, and upon the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain
such insurance at the Mortgagor’s cost and expense and to seek reimbursement
therefor from the Mortgagor;
(h) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity, fair housing, or disclosure laws
applicable to the Mortgage Loan have been complied with in all material
respects;
(i) The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission. RWT
Holdings has not waived the performance by the Mortgagor of any action, if
the
Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
in default, nor has RWT Holdings waived any default resulting from any action
or
inaction by the Mortgagor;
(j) The
related Mortgage is a valid, subsisting, enforceable and perfected first lien
on
the Mortgaged Property including all buildings on the Mortgaged Property and
all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems affixed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing securing the
Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note
do not contain any evidence of any security interest or other interest or right
thereto. Such lien is free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only
to
(1) the lien of non-delinquent current real property taxes and assessments
not
yet due and payable, (2) covenants, conditions and restrictions, rights of
way,
easements and other matters of the public record as of the date of recording
which are acceptable to mortgage lending institutions generally and either
(A)
which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and
(3) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates (1) a valid, subsisting, enforceable and perfected
first
lien and first priority security interest and on the property described therein,
and RWT Holdings has the full right to sell and assign the same to the
Purchaser;
23
(k) The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency,
moratorium, reorganization and other laws of general application affecting
the
rights of creditors and by general equitable principles and RWT Holdings has
taken all action necessary to transfer such rights of enforceability to the
Purchaser. All parties to the Mortgage Note and the Mortgage had the legal
capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage
Note and the Mortgage. The Mortgage Note and the Mortgage have been duly and
properly executed by such parties. No fraud, error, omission, misrepresentation,
negligence or similar occurrence with respect to a Mortgage Loan has taken
place
on the part of GreenPoint or the Mortgagor, or, on the part of any other party
involved in the origination of the Mortgage Loan. The proceeds of the Mortgage
Loan have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor
have
been complied with. All costs, fees and expenses incurred in making or closing
the Mortgage Loan and the recording of the Mortgage were paid or are in the
process of being paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due under the Mortgage Note or Mortgage;
(l) RWT
Holdings is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser
or its designee will be the owner of record of the Mortgage and the indebtedness
evidenced by the Mortgage Note, and upon the sale of the Mortgage Loan to the
Purchaser, GreenPoint will retain the Servicing File in trust for the Purchaser
only for the purpose of interim servicing and supervising the interim servicing
of the Mortgage Loan. Immediately prior to the transfer and assignment to the
Purchaser on the related Closing Date, the Mortgage Loan, including the Mortgage
Note and the Mortgage, were not subject to an assignment or pledge, and RWT
Holdings had good and marketable title to and was the sole owner thereof and
had
full right to transfer and sell the Mortgage Loan to the Purchaser free and
clear of any encumbrance, equity, lien, pledge, charge, claim or security
interest and has the full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign the
Mortgage Loan pursuant to the GMAC-RWT Agreement and following the sale of
the
Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear of
any
encumbrance, equity, participation interest, lien, pledge, charge, claim or
security interest. RWT Holdings intends to relinquish all rights to possess,
control and monitor the Mortgage Loan, except for the purposes of servicing
the
Mortgage Loan as set forth in the GMAC-RWT Agreement.
Either
the Mortgagor is a natural person or the Mortgagor is an inter-vivos trust
acceptable to Xxxxxx Mae;
(m) Each
Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Xxxxxx Xxx or
Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac
and qualified to do business in the jurisdiction where the Mortgaged Property
is
located, insuring (subject to the exceptions contained in (j)(1), (2) and (3)
above) RWT Holdings, its successors and assigns, as to the first priority lien
of the Mortgage in the original principal amount of the Mortgage Loan.
Additionally, such policy affirmatively insures ingress and egress to and from
the Mortgaged Property. Where required by applicable state law or regulation,
the Mortgagor has been given the opportunity to choose the carrier of the
required mortgage title insurance. RWT Holdings, its successors and assigns,
are
the sole insureds of such lender’s title insurance policy, such title insurance
policy has been duly and validly endorsed to the Purchaser or the assignment
to
the Purchaser of RWT Holdings’ interest therein does not require the consent of
or notification to the insurer and such lender’s title insurance policy is in
full force and effect and will be in full force and effect upon the consummation
of the transactions contemplated by the GMAC-RWT Agreement and the related
Purchase Price and Terms Letter. No claims have been made under such lender’s
title insurance policy, and neither RWT Holdings nor any prior holder of the
related Mortgage, has done, by act or omission, anything which would impair
the
coverage of such lender’s title insurance policy;
24
(n) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event permitting acceleration; and
neither RWT Holdings nor any prior mortgagee has waived any default, breach,
violation or event permitting acceleration;
(o) As
of the
related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights are outstanding
that
under law could give rise to such liens) affecting the related Mortgaged
Property which are or may be liens prior to or equal to the lien of the related
Mortgage;
(p) All
improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries
and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances;
(q) The
Mortgage Loan was originated by or for GreenPoint. The Mortgage Loan complies
with all the terms, conditions and requirements of the GreenPoint’s Underwriting
Standards in effect at the time of origination of such Mortgage Loan. The
Mortgage Notes and Mortgages (exclusive of any riders) are on forms generally
acceptable to Xxxxxx Xxx or Xxxxxxx Mac. GreenPoint is currently selling loans
to Xxxxxx Mae and/or Xxxxxxx Mac which are the same document forms as the
Mortgage Notes and Mortgages (inclusive of any riders). The Mortgage Loan bears
interest at the Mortgage Interest Rate set forth in the related Mortgage Loan
Schedule, and Monthly Payments under the Mortgage Note are due and payable
on
the first day of each month. The Mortgage contains the usual and enforceable
provisions of the originator at the time of origination for the acceleration
of
the payment of the unpaid principal amount of the Mortgage Loan if the related
Mortgaged Property is sold without the prior consent of the mortgagee
thereunder;
(r) As
of the
related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At
origination of the Mortgage Loan there was, and there currently is, no
proceeding pending for the total or partial condemnation of the Mortgaged
Property. There have not been any condemnation proceedings with respect to
the
Mortgaged Property and there are no such proceedings scheduled to commence
at a
future date;
(s) The
related Mortgage contains customary and enforceable provisions such as to render
the rights and remedies of the holder thereof adequate for the realization
against the Mortgaged Property of the benefits of the security provided thereby.
There is no homestead or other exemption available to the Mortgagor which would
interfere with the right to sell the Mortgaged Property at a trustee’s sale or
the right to foreclose the Mortgage;
(t) If
the
Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified
if required under applicable law to act as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses
are or will become payable by the Purchaser to the trustee under the deed of
trust, except in connection with a trustee’s sale or attempted sale after
default by the Mortgagor;
25
(u) The
Mortgage File contains an appraisal of the related Mortgaged Property signed
prior to the final approval of the mortgage loan application by a Qualified
Appraiser, who had no interest, direct or indirect, in the Mortgaged Property
or
in any loan made on the security thereof, and whose compensation is not affected
by the approval or disapproval of the Mortgage Loan, and the appraisal and
appraiser both satisfy the requirements of Xxxxxx Mae or Xxxxxxx Mac and Title
XI of FIRREA and the regulations promulgated thereunder, all as in effect on
the
date the Mortgage Loan was originated. The appraisal is in a form acceptable
to
Xxxxxx Mae or Xxxxxxx Mac;
(v) All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (B) (1) organized under the laws of such state, or
(2)
qualified to do business in such state, or (3) federal savings and loan
associations or national banks or a Federal Home Loan Bank or savings bank
having principal offices in such state, or (4) not doing business in such
state;
(w) As
of the
related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security
interest of any applicable security agreement or chattel mortgage referred
to in
(j) above and such collateral does not serve as security for any other
obligation;
(x) The
Mortgagor has received all disclosure materials required by applicable law
with
respect to the making of such mortgage loans;
(y) The
Mortgage Loan does not contain “graduated payment” features and does not have a
shared appreciation or other contingent interest feature; no Mortgage Loan
contains any buydown provisions;
(z) As
of the
related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor
is
not insolvent and RWT Holdings has no knowledge of any circumstances or
condition with respect to the Mortgage, the Mortgaged Property, the Mortgagor
or
the Mortgagor’s credit standing that could reasonably be expected to cause
investors to regard the Mortgage Loan as an unacceptable investment, cause
the
Mortgage Loan to become delinquent, or materially adversely affect the value
or
marketability of the Mortgage Loan;
(aa) The
Mortgage Loans have an original term to maturity of not more than 30 years,
with
interest payable in arrears on the first day of each month. Each Mortgage Note
requires a monthly payment which is sufficient to fully amortize the original
principal balance over the original term thereof and to pay interest at the
related Mortgage Interest Rate. No Mortgage Loan contains terms or provisions
which would result in negative amortization;
(bb) If
a
Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Xxxxxx Mae Guides and will be
insured as to payment defaults by a Primary Mortgage Insurance Policy issued
by
a Qualified Insurer. All provisions of such Primary Mortgage Insurance Policy
have been and are being complied with, such policy is in full force and effect,
and all premiums due thereunder have been paid. No action, inaction, or event
has occurred and no state of facts exists that has, or will result in the
exclusion from, denial of, or defense to coverage. Any Mortgage Loan subject
to
a Primary Mortgage Insurance Policy obligates the Mortgagor thereunder to
maintain the Primary Mortgage Insurance Policy and to pay all premiums and
charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of any such
insurance premium. No Mortgage Loan is subject to a lender-paid mortgage
insurance policy;
26
(cc) As
to any
Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage
is
in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;
(dd) The
Mortgaged Property is located in the state identified in the related Mortgage
Loan Schedule and consists of a single parcel of real property with a detached
single family residence erected thereon, or a townhouse, or a two-to four-family
dwelling, or an individual condominium unit in a condominium project, or an
individual unit in a planned unit development or a de minimis planned unit
development, provided, however, that no residence or dwelling is a single parcel
of real property with a cooperative housing corporation erected thereon, or
a
mobile home. As of the date of origination, no portion of the Mortgaged Property
was used for commercial purposes, and since the date or origination no portion
of the Mortgaged Property has been used for commercial purposes;
(ee) Principal
payments on the Mortgage Loan commenced no more than sixty (60) days after
the
funds were disbursed in connection with the Mortgage Loan. The Mortgage Note
is
payable on the first day of each month in equal monthly installments of
principal and interest, with interest calculated and payable in arrears,
sufficient to amortize the Mortgage Loan fully by the stated maturity date,
over
an original term of not more than thirty years from commencement of
amortization;
(ff) The
Mortgage Loans may be subject to a Prepayment Penalty as identified on the
Mortgage Loan Schedule; however, no Mortgage Loan contains prepayment penalties
that extend beyond five years after the date of origination;
(gg) As
of the
related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to
be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities;
(hh) If
the
Mortgaged Property is a condominium unit or a planned unit development (other
than a de minimis planned unit development), or stock in a cooperative housing
corporation, such condominium, cooperative or planned unit development project
meets the eligibility requirements of Xxxxxx Xxx and Xxxxxxx Mac;
(ii) There
is
no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue;
there is no violation of any environmental law, rule or regulation with respect
to the Mortgaged Property; and nothing further remains to be done to satisfy
in
full all requirements of each such law, rule or regulation constituting a
prerequisite to use and enjoyment of said property;
27
(jj) The
Mortgagor has not notified RWT Holdings requesting relief under the
Servicemembers’ Civil Relief Act, formerly known as the Soldiers’ and Sailors’
Civil Relief Act of 1940, and RWT Holdings has no knowledge of any relief
requested or allowed to the Mortgagor under the Servicemembers’ Civil Relief
Act;
(kk) As
of the
related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged
Property;
(ll) No
action
has been taken or failed to be taken by RWT Holdings on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or
defense to coverage under any insurance policy related to a Mortgage Loan
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of
the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of RWT Holdings, or
for
any other reason under such coverage;
(mm) The
Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or similar institution which is supervised and examined
by a federal or state authority;
(nn) No
Mortgaged Property is subject to a ground lease;
(oo) With
respect to any broker fees collected and paid on any of the Mortgage Loans,
all
broker fees have been properly assessed to the Mortgagor and no claims will
arise as to broker fees that are double charged and for which the Mortgagor
would be entitled to reimbursement;
(pp) With
respect to any Mortgage Loan as to which an affidavit has been delivered to
the
Purchaser certifying that the original Mortgage Note has been lost or destroyed
and not been replaced, if such Mortgage Loan is subsequently in default, the
enforcement of such Mortgage Loan will not be materially adversely affected
by
the absence of the original Mortgage Note;
(qq) Each
Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A)
of
the Code and Treasury Regulations Section 1.860G-2(a)(1);
28
(rr) Except
as
provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and
required to be delivered on the related Closing Date have been delivered to
the
Purchaser or its designee all in compliance with the specific requirements
of
the GMAC-RWT Agreement. With respect to each Mortgage Loan, RWT Holdings is
in
possession of a complete Mortgage File and Servicing File except for such
documents as have been delivered to the Purchaser or its
designee;
(ss) All
information supplied by, on behalf of, or concerning the Mortgagor is true,
accurate and complete and does not contain any statement that is or will be
inaccurate or misleading in any material respect;
(tt) There
does not exist on the related Mortgage Property any hazardous substances,
hazardous wastes or solid wastes, as such terms are defined in the Comprehensive
Environmental Response Compensation and Liability Act, the Resource Conservation
and Recovery Act of 1976, or other federal, state or local environmental
legislation;
(uu) All
disclosure materials required by applicable law with respect to the making
of
fixed rate and adjustable rate mortgage loans have been received by the
borrower;
(vv) No
Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more
than
95%;
(ww) None
of
the Mortgage Loans are subject to the Home Ownership and Equity Protection
Act
of 1994 or any comparable state law and no mortgage loans is a “high cost” or
“covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 6.0, Appendix
E);
(xx) None
of
the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;
(yy) Any
principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having first lien priority by a title
insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Xxxxxx Xxx and
Xxxxxxx Mac. The consolidated principal amount does not exceed the original
principal amount of the Mortgage Loan;
(zz) Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting of
twelve 30-day months;
(aaa) No
Mortgage Loan is a balloon loan;
29
(bbb) With
respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such
MIN
is accurately provided on the Mortgage Loan Schedule. The related assignment
of
Mortgage to MERS has been duly and properly recorded;
(ccc) With
respect to each MERS Mortgage Loan, RWT Holdings has not received any notice
of
liens or legal actions with respect to such Mortgage Loan and no such notices
have been electronically posted by MERS;
(ddd) None
of
the Mortgaged
Properties are manufactured housing;
(eee) With
respect to each Mortgage Loan, GreenPoint has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian
and Trans Union Credit Information Company, in accordance with the Fair Credit
Reporting Act and its implementing regulations;
(fff) GreenPoint
has complied with all applicable anti-money laundering laws and regulations,
including without limitation the USA Patriot Act of 2001 (collectively, the
“Anti-Money Laundering Laws”); GreenPoint has established an anti-money
laundering compliance program as required by the Anti-Money Laundering Laws,
has
conducted the requisite due diligence in connection with the origination of
each
Mortgage Loan for purposes of the Anti-Money Laundering Laws, including with
respect to the legitimacy of the applicable Mortgagor and the origin of the
assets used by the said Mortgagor to purchase the property in question, and
maintains, and will maintain, sufficient information to identify the applicable
Mortgagor for purposes of the Anti-Money Laundering Laws;
(ggg) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
(hhh) No
Mortgage Loan is “high cost” as defined by any applicable federal, state, or
local predatory or abusive lending law. Any breach of this representation shall
be deemed to materially and adversely affect the value of the Mortgage Loan
and
shall require a repurchase of the affected Mortgage Loan;
(iii) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act. Any breach of this representation
shall be deemed to materially and adversely affect the value of the Mortgage
Loan and shall require a repurchase of the affected Mortgage Loan;
(jjj) No
Mortgage Loan which is secured by property located in the State of New Jersey
is
a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which
became effective November 27, 2003;
(kkk) No
Mortgage Loan which is secured by property located in the State of New Mexico
is
a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
which became effective January 1, 2004;
(lll) No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003;
30
(mmm)
No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004;
(nnn)
No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.); and
(ooo) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005.
31
V.
|
Mortgage
Loans Purchased under the Master Mortgage Loan Purchase Agreement
dated as
of August 1, 2001 between Redwood Trust, Inc. (“Redwood Trust”) and Xxxxxx
Xxxxxxx Credit Corporation (formerly Xxxxxx Xxxxxxx Xxxx Xxxxxx Credit
Corporation) (the “Seller/Servicer”) (the “Xxxxxx
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to Pledged Mortgages (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the Xxxxxx
Agreement.
(i) The
information set forth in the Mortgage Loan Schedule is true and correct in
all
material respects;
(ii) As
of the
Closing Date, the Mortgage Loan is not delinquent more than 29 days, the
Mortgage Loan has never been delinquent for more than 59 days and the Mortgage
Loan has not been dishonored. To RWT Holdings' knowledge, there are no material
defaults under the terms of the Mortgage Loan. The Seller/Servicer has not
advanced funds, or induced or, solicited any advance of funds from a party
other
than the owner of the Mortgaged Property subject to the Mortgage, directly
or
indirectly, for the payment of any amount required by the Mortgage
Loan;
(iii) With
respect to those Mortgage Loans which are required to deposit funds into an
escrow account for payment of taxes, assessments, insurance premiums and similar
items as they become due, all escrow deposits have been collected, are under
the
control of the Seller/Servicer, and have been applied by the Seller/Servicer
to
the payment of such items in a timely fashion, in accordance with such Mortgage.
There exist no deficiencies in connection therewith for which customary
arrangements for repayment thereof have not been met. With respect to those
Mortgage Loans for which escrow deposits are not required, to RWT Holdings'
knowledge, there are no delinquent taxes or other outstanding charges affecting
the related Mortgaged Property which constitute a lien on the related Mortgaged
Property;
(iv) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments contained in the Trustee
Mortgage File, approved, if necessary, by the insurer under any Primary Mortgage
Insurance Policy and recorded in all places necessary to maintain the first
priority of the lien, the substance of which waiver, alteration or modification
is reflected on the Mortgage Loan Schedule. No Mortgagor has been released,
in
whole or in part, except by operation of law or in connection with an assumption
agreement which assumption agreement is part of the Trustee Mortgage File and
the terms of which are reflected in the Mortgage Loan Schedule;
(v) Neither
the Mortgage Note nor the Mortgage is subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will
the
operation of any of the terms of the Mortgage Note and the Mortgage, or the
exercise of any right thereunder, render the Mortgage unenforceable, in whole
or
in part, or subject to any right of rescission, set-off, counterclaim or
defense, including the defense of usury and, to RWT Holdings' knowledge, no
such
right of recission, set-off, counterclaim or defense has been asserted by any
Person with respect thereto;
(vi) All
buildings upon the Mortgaged Property are required to be insured by a generally
acceptable insurer against loss by fire, hazards of extended coverage and such
other hazards as are customarily included in extended coverage in the area
where
the Mortgaged Property is located, pursuant to standard property insurance
policies in compliance with the Seller/Servicer’s policies as from time to time
in effect. On the date of origination, all such property policies were in
effect, and contained a standard mortgage clause naming the Seller/Servicer
or
the originator of the Mortgage Loan and their respective successors in interest
as mortgagee; to the knowledge of RWT Holdings, such policy and clause or a
replacement is in effect and, to RWT Holdings' knowledge, all premiums due
thereon have been paid. If the Mortgaged Property is located in an area
identified by the Federal Emergency Management Agency as having special flood
hazards under the National Flood Insurance Act of 1994, as amended, such
Mortgaged Property is covered by flood insurance in the amount required under
the National Flood Insurance Act of 1994. The Mortgage obligates the Mortgagor
to maintain such insurance and authorizes the holder of the Mortgage to maintain
such insurance at Mortgagor’s cost and expense should the Mortgagor fail to do
so and to seek reimbursement therefor from the Mortgagor;
32
(vii) At
the
time of origination of such Mortgage Loan and thereafter, all requirements
of
any federal or state law, including usury, truth-in-lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity
or
disclosure laws required to be complied with by the Seller/Servicer as the
originator of the Mortgage Loan and applicable to the Mortgage Loan have been
complied with in all material respects;
(viii) The
Mortgage has not been satisfied as of the Closing Date, canceled or
subordinated, in whole, or rescinded, and the Mortgaged Property has not been
released from the lien of the Mortgage, in whole or in part (except for a
release that does not materially impair the security of the Mortgage Loan or
a
release the effect of which is reflected in the Loan-to-Value Ratio for the
Mortgage Loan as set forth in the Mortgage Loan Schedule);
(ix) Ownership
of the Mortgaged Property is held in fee simple or leasehold estate. With
respect to Mortgage Loans that are secured by a leasehold estate: (i) the lease
is valid, in full force and effect, and conforms to all of Xxxxxx Mae’s
requirements for leasehold estates; (ii) all rents and other payments due under
the lease have been paid; (iii) the lessee is not in default under any provision
of the lease; (iv) the term of the lease exceeds the maturity date of the
related Mortgage Loan by at least five (5) years; and (v) the terms of the
lease
provide a Mortgagee with an opportunity to cure any defaults. Except as
permitted by the fourth sentence of this paragraph (ix), the Mortgage is a
valid, subsisting and enforceable first lien on the Mortgaged Property securing
the Mortgage Note’s original principal balance. Such lien is free and clear of
all adverse claims, liens and encumbrances having priority over the first lien
of the Mortgage, subject only to (1) the lien of non-delinquent current real
property taxes and assessments not yet due and payable, (2) liens, covenants,
conditions and restrictions, rights of way, easements and other matters
reflected in the public record as of the date of recording which are acceptable
to mortgage lending institutions generally, or which are referred to
(specifically or generally) in the lender’s title insurance policy delivered to
the originator of the Mortgage Loan and either (A) which are referred to or
otherwise considered in such title insurance policy or the appraisal made for
the originator of the Mortgage Loan, or (B) which do not in the aggregate
adversely affect the appraised value of the Mortgaged Property as set forth
in
such appraisal, and (3) other matters to which like properties are commonly
subject which do not in the aggregate materially interfere with the benefits
of
the security intended to be provided by the Mortgage or the use, enjoyment,
value or marketability of the related Mortgaged Property. With respect to each
Cooperative Loan, the security instruments create a valid, enforceable and
subsisting first priority security interest in the Cooperative Apartment
securing the related Mortgage Note subject only to (a) the lien of the related
cooperative for unpaid assessments representing the Mortgagor’s pro rata share
of payments for a blanket mortgage, if any, current and future real property
taxes, insurance premiums, maintenance fees and other assessments, and (b)
other
matters to which the collateral is commonly subject which do not materially
interfere with the benefits of the security intended to be provided; provided,
however, that the related proprietary lease for the Cooperative Apartment may
be
subordinated or otherwise subject to the lien of a Mortgage on the cooperative
building;
(x) The
Mortgage Note and the related Mortgage are genuine and are in proper form to
constitute a legal, valid and binding obligation of the maker thereof in all
material respects, enforceable in accordance with its terms, subject to
bankruptcy, insolvency and other laws of general application affecting the
rights of creditors, and general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law), and
assuming that the maker thereof had the legal capacity to enter into the
Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage.
The
Mortgage Note and the Mortgage have been duly and properly executed by such
parties. An obligor of the debt evidenced by the Mortgage Note is a natural
person. The proceeds of the Mortgage Loan have been fully disbursed and there
is
no requirement for future advances thereunder, and any and all requirements
in
the Mortgage as to completion of any on-site or off-site improvements and as
to
disbursements of any escrow funds therefor have been complied with;
(xi) RWT
Holdings has good title to, and the full right to transfer and sell, the
Mortgage Loan and the Mortgage Note free and clear of any encumbrance, equity,
lien, pledge, charge, claim or security interest including, to the knowledge
of
RWT Holdings, any lien, claim or other interest arising by operation of
law;
33
(xii) The
Mortgage Loan is covered by either an ALTA lender’s title insurance policy or
other generally acceptable form of policy or insurance acceptable to Xxxxxx
Xxx
or Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac and qualified to do business in the jurisdiction where the Mortgaged
Property is located, insuring (subject to the exceptions contained in paragraph
(ix) (1), (2) and (3) above) to the Seller/Servicer, its successors and assigns,
the first priority lien of the Mortgage in the original principal amount of
the
Mortgage Loan. The Seller/Servicer is the sole insured of such lender’s title
insurance policy, such title insurance policy has been duly and validly endorsed
to the Trustee (as defined in the Pooling and Servicing Agreement) or the
assignment to such Trustee of the Seller/Servicer’s interest does not require
the consent of or notification to the insurer and such lender’s title insurance
policy is in full force and effect and will be in full force and effect upon
the
consummation of the transactions contemplated by the Xxxxxx Agreement. To RWT
Holdings' knowledge, no claims have been made under such lender’s title
insurance policy, and no prior holder of the related Mortgage has done, by
act
or omission, anything which would impair the coverage of such lender’s title
insurance policy;
(xiii) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and, to RWT Holdings' knowledge, no event
which, with the passage of time or with notice and the expiration of any grace
or cure period, would constitute a default, breach, violation or event
permitting acceleration, except for any Mortgage Loan Payment which is not
late
by more than 30 days, and the Seller/Servicer has not waived any default,
breach, violation or event permitting acceleration;
(xiv) To
RWT
Holdings' knowledge, all material improvements subject to the Mortgage, lie
wholly within the boundaries and building restrictions lines of the Mortgaged
Property (and wholly within the project with respect to a condominium unit)
and
no improvements on adjoining properties materially encroach upon the Mortgaged
Property, except those which are insured against by the title insurance policy
referred to in paragraph (xii) above and all improvements on the property comply
with all applicable zoning and subdivision laws and ordinances;
(xv) The
Mortgage Loan (unless designated as originated by others on any Mortgage Loan
Schedule) was originated by the Seller/Servicer (or the corporate predecessor
of
the Seller/Servicer), and at the time of each such origination of such Mortgage
Loan the Seller/Servicer was (unless designated as “originated prior to HUD
approval” on any Mortgage Loan Schedule) a mortgagee approved by the Secretary
of Housing and Urban Development (the “Secretary”) pursuant to Sections 203 and
211 of the National Housing Act. Each such Mortgage Loan was underwritten in
accordance with the Underwriting Guide as in effect at the time of origination,
except to the extent the Seller/Servicer believed as such time that a variance
from such Underwriting Guide was warranted by compensating factors. The Mortgage
contains the usual and customary provision of the Seller/Servicer, if any,
in
the applicable jurisdiction at the time of origination for the acceleration
of
the payment of the unpaid principal balance of the Mortgage Loan if the related
Mortgaged Property is sold without the prior consent of the Mortgagee
thereunder;
(xvi) The
Mortgaged Property at origination or acquisition was and, to RWT Holdings'
knowledge, is free of material damage and waste and at origination there was,
and to RWT Holdings' knowledge there is, no proceeding pending for the total
or
partial condemnation thereof;
(xvii) The
related Mortgage contains customary and enforceable provisions such as to render
the rights and remedies of the holder thereof adequate for the realization
against the Mortgaged Property of the benefits of the security provided
thereby;
(xviii) If
the
Mortgage constitutes a deed of trust, a trustee, duly qualified if required
under applicable law to act as such, has been properly designated and currently
so serves as named in the Mortgage, and no fees or expenses are or will become
payable to the trustee under the deed of trust, except in connection with a
trustee’s sale or attempted sale after default by the Mortgagor;
(xix) With
respect to the Mortgage Loan, there is an appraisal on a Xxxxxx Xxx-approved
form (or a narrative residential appraisal) of the related Mortgaged Property
that conforms to the applicable requirements of the Financial Institutions
Reform Recovery and Enforcement Act of 1989 and that was signed prior to the
approval of such Mortgage Loan application by a qualified appraiser, appointed
by the Seller/Servicer or the originator of such Mortgage Loan, as appropriate,
who has no interest, direct or indirect, in the Mortgaged Property or in any
loan made on the security thereof, and whose compensation is not affected by
the
approval or disapproval of such Mortgage Loan;
34
(xx) The
Mortgage Loan contains no “subsidized buydown” or graduated payment
features;
(xxi) The
Mortgaged Property has a single-family (one to four-unit) dwelling residence
erected thereon, or is an individual condominium unit in a condominium, or
a
Cooperative Apartment or an individual unit in a planned unit development or
in
a de
minimis planned
unit development as defined by Xxxxxx Mae. No such residence is a mobile home
or
a manufactured dwelling which is not permanently attached to the
land;
(xxii) Except
as
set forth on the Mortgage Loan Schedule the Mortgage Loan is not a Converted
Mortgage Loan. The Mortgage Loan does not provide for negative
amortization;
(xxiii) The
Mortgage Loan does not have an original term in excess of thirty (30) years
and
one month;
(xxiv) If
the
Mortgage Loan is a Cooperative Loan, (a) there is no provision in any
proprietary lease which requires the Mortgagor to offer for sale the cooperative
shares owned by such Mortgagor first to the cooperative, (b) there is no
prohibition in the proprietary lease against pledging the cooperative shares
or
assigning the proprietary lease, (c) to RWT Holdings' knowledge, the Cooperative
Apartment is lawfully occupied under applicable law, and (d) to RWT Holdings'
knowledge, all inspections, licenses and certificates required to be made or
issued with respect to all occupied portions of the Cooperative Apartment and
the related project have been made or obtained from the appropriate
authorities;
(xxv) There
has
been no fraud, material misrepresentation or deceit on the part of any Mortgagor
or any third party in connection with the Mortgage Loan (including the
application, processing, appraisal and origination) which would cause a material
economic loss to the owner of the Mortgage Loan, including, but not limited
to,
material misrepresentation of such Mortgagor’s income, funds on deposit or
employment;
(xxvi) The
origination, collection and other servicing practices used by the
Seller/Servicer with respect to the Mortgage Loans are in compliance with all
material requirements of applicable laws and regulations;
(xxvii) The
Seller/Servicer shall cause to be maintained for each Mortgage Loan primary
hazard insurance with extended coverage on the related mortgage property in
an
amount equal to the lessor of (i) full replacement value of improvements and
(ii) the outstanding principal balance;
(xxviii) RWT
Holdings has no knowledge of any homestead or other exemption available to
the
mortgagor which would interfere with the right to sell the mortgage property
at
trustee’s sale or the right to foreclose the mortgage;
(xxix) At
the
time of origination of such Mortgage Loan, and thereafter, all material
requirements of any federal, state or local law including usury,
truth-in-lending, real estate settlement procedures, consumer credit protection,
equal credit opportunity or disclosure laws required to be complied with by
the
Seller/Servicer as the originator of the Mortgage Loan have been complied with
in all material respects;
(xxx) The
Additional Collateral Mortgage Loans are insured under the terms and provisions
of the Surety Bond subject to the limitations set forth therein. The
Seller/Servicer will deliver to the Surety Bond issuer an “Assignment and Notice
of Transfer” in the form of Attachment to the Surety Bond, or any other similar
instrument required to be delivered under the Surety Bond, executed by the
Seller/Servicer and RWT Holdings, and that all other requirements for
transferring coverage under the Surety Bond in respect of such Additional
Collateral Mortgage Loans to the Trustee (as defined in the Pooling and
Servicing Agreement) shall be complied with;
35
(xxxi)
No
Mortgage Loan is covered by the Home Ownership and Equity Protection Act of
1994
and no Mortgage Loan is “high cost” as defined by any applicable federal, state
or local predatory or abusive lending law, and no mortgage loan is a “high cost”
or “covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 6.0, Appendix
E);
(xxxii) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state and federal laws, including, but not limited to, all
applicable predatory or abusive lending laws;
(xxxiii)
None of the proceeds of any Mortgage Loan were used to finance the purchase
of
single premium credit insurance policies;
(xxxiv) No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(xxxv) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC; and
(xxxvi) There
were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
36
VI.
|
Mortgage
Loans Purchased under the Master Mortgage Loan Purchase Agreement
dated as
of August 1, 2002 between RWT Holdings, Inc. (“RWT Holdings”) and Xxxxxx
Xxxxxxx Credit Corporation (formerly
Xxxxxx Xxxxxxx Xxxx Xxxxxx Credit Corporation)
(the “Seller/Servicer”) (the “Xxxxxx-RWT
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the Xxxxxx-RWT
Agreement.
(i) The
information set forth in the Mortgage Loan Schedule is true and correct in
all
material respects;
(ii) The
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(iii) As
of the
Closing Date, the Mortgage Loan is not delinquent more than 29 days, the
Mortgage Loan has never been delinquent for more than 59 days and the Mortgage
Loan has not been dishonored. There are no material defaults under the terms
of
the Mortgage Loan. The Seller/Servicer has not advanced funds, or induced or,
solicited any advance of funds from a party other than the owner of the
Mortgaged Property subject to the Mortgage, directly or indirectly, for the
payment of any amount required by the Mortgage Loan;
(iv) With
respect to those Mortgage Loans which are required to deposit funds into an
escrow account for payment of taxes, assessments, insurance premiums and similar
items as they become due, all escrow deposits have been collected, are under
the
control of the Seller/Servicer, and have been applied by the Seller/Servicer
to
the payment of such items in a timely fashion, in accordance with such Mortgage.
There exist no deficiencies in connection therewith for which customary
arrangements for repayment thereof have not been met. With respect to those
Mortgage Loans for which escrow deposits are not required, there are no
delinquent taxes or other outstanding charges affecting the related Mortgaged
Property which constitute a lien on the related Mortgaged Property;
(v) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments contained in the Trustee
Mortgage File, approved, if necessary, by the insurer under any Primary Mortgage
Insurance Policy and recorded in all places necessary to maintain the first
priority of the lien, the substance of which waiver, alteration or modification
is reflected on the Mortgage Loan Schedule. No Mortgagor has been released,
in
whole or in part, except by operation of law or in connection with an assumption
agreement which assumption agreement is part of the Trustee Mortgage File and
the terms of which are reflected in the Mortgage Loan Schedule;
(vi) Neither
the Mortgage Note nor the Mortgage is subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will
the
operation of any of the terms of the Mortgage Note and the Mortgage, or the
exercise of any right thereunder, render the Mortgage unenforceable, in whole
or
in part, or subject to any right of rescission, set-off, counterclaim or
defense, including the defense of usury and no such right of rescission,
set-off, counterclaim or defense has been asserted by any Person with respect
thereto;
(vii) All
buildings upon the Mortgaged Property are required to be insured by a generally
acceptable insurer against loss by fire, hazards of extended coverage and such
other hazards as are customarily included in extended coverage in the area
where
the Mortgaged Property is located, pursuant to standard property insurance
policies in compliance with the Seller/Servicer’s policies as from time to time
in effect. On the date of origination, all such property policies were in
effect, and contained a standard mortgage clause naming the Seller/Servicer
or
the originator of the Mortgage Loan and their respective successors in interest
as mortgagee; such policy and clause or a replacement is in effect and all
premiums due thereon have been paid. If the Mortgaged Property is located in
an
area identified by the Federal Emergency Management Agency as having special
flood hazards under the National Flood Insurance Act of 1994, as amended, such
Mortgaged Property is covered by flood insurance in the amount required under
the National Flood Insurance Act of 1994. The Mortgage obligates the Mortgagor
to maintain such insurance and authorizes the holder of the Mortgage to maintain
such insurance at Mortgagor’s cost and expense should the Mortgagor fail to do
so and to seek reimbursement therefor from the Mortgagor;
37
(viii) At
the
time of origination of such Mortgage Loan and thereafter, all requirements
of
any federal or state law, including usury, truth-in-lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity
or
disclosure laws required to be complied with by the Seller/Servicer as the
originator of the Mortgage Loan and applicable to the Mortgage Loan have been
complied with in all material respects;
(ix) The
Mortgage has not been satisfied as of the Closing Date, canceled or
subordinated, in whole, or rescinded, and the Mortgaged Property has not been
released from the lien of the Mortgage, in whole or in part (except for a
release that does not materially impair the security of the Mortgage Loan or
a
release the effect of which is reflected in the Loan-to-Value Ratio for the
Mortgage Loan as set forth in the Mortgage Loan Schedule);
(x) Ownership
of the Mortgaged Property is held in fee simple or leasehold estate. With
respect to Mortgage Loans that are secured by a leasehold estate: (i) the lease
is valid, in full force and effect, and conforms to all of Xxxxxx Mae’s
requirements for leasehold estates; (ii) all rents and other payments due under
the lease have been paid; (iii) the lessee is not in default under any provision
of the lease; (iv) the term of the lease exceeds the maturity date of the
related Mortgage Loan by at least five (5) years; and (v) the terms of the
lease
provide a Mortgagee with an opportunity to cure any defaults. Except as
permitted by the fourth sentence of this paragraph (x), the Mortgage is a valid,
subsisting and enforceable first lien on the Mortgaged Property securing the
Mortgage Note’s original principal balance. Such lien is free and clear of all
adverse claims, liens and encumbrances having priority over the first lien
of
the Mortgage, subject only to (1) the lien of non-delinquent current real
property taxes and assessments not yet due and payable, (2) liens, covenants,
conditions and restrictions, rights of way, easements and other matters
reflected in the public record as of the date of recording which are acceptable
to mortgage lending institutions generally, or which are referred to
(specifically or generally) in the lender’s title insurance policy delivered to
the originator of the Mortgage Loan and either (A) which are referred to or
otherwise considered in such title insurance policy or the appraisal made for
the originator of the Mortgage Loan, or (B) which do not in the aggregate
adversely affect the appraised value of the Mortgaged Property as set forth
in
such appraisal, and (3) other matters to which like properties are commonly
subject which do not in the aggregate materially interfere with the benefits
of
the security intended to be provided by the Mortgage or the use, enjoyment,
value or marketability of the related Mortgaged Property. With respect to each
Cooperative Loan, the security instruments create a valid, enforceable and
subsisting first priority security interest in the Cooperative Apartment
securing the related Mortgage Note subject only to (a) the lien of the related
cooperative for unpaid assessments representing the Mortgagor’s pro rata share
of payments for a blanket mortgage, if any, current and future real property
taxes, insurance premiums, maintenance fees and other assessments, and (b)
other
matters to which the collateral is commonly subject which do not materially
interfere with the benefits of the security intended to be provided; provided,
however, that the related proprietary lease for the Cooperative Apartment may
be
subordinated or otherwise subject to the lien of a Mortgage on the cooperative
building;
(xi) The
Mortgage Note and the related Mortgage are genuine and are in proper form to
constitute a legal, valid and binding obligation of the maker thereof in all
material respects, enforceable in accordance with its terms, subject to
bankruptcy, insolvency and other laws of general application affecting the
rights of creditors, and general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law), and
assuming that the maker thereof had the legal capacity to enter into the
Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage.
The
Mortgage Note and the Mortgage have been duly and properly executed by such
parties. An obligor of the debt evidenced by the Mortgage Note is a natural
person. The proceeds of the Mortgage Loan have been fully disbursed and there
is
no requirement for future advances thereunder, and any and all requirements
in
the Mortgage as to completion of any on-site or off-site improvements and as
to
disbursements of any escrow funds therefor have been complied with;
38
(xii) RWT
Holdings has good title to, and the full right to transfer and sell, the
Mortgage Loan and the Mortgage Note free and clear of any encumbrance, equity,
lien, pledge, charge, claim or security interest including, any lien, claim
or
other interest arising by operation of law;
(xiii) The
Mortgage Loan is covered by either an ALTA lender’s title insurance policy or
other generally acceptable form of policy or insurance acceptable to Xxxxxx
Xxx
or Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac and qualified to do business in the jurisdiction where the Mortgaged
Property is located, insuring (subject to the exceptions contained in paragraph
(x) (1), (2) and (3) above) to the Seller/Servicer, its successors and assigns,
the first priority lien of the Mortgage in the original principal amount of
the
Mortgage Loan. The Seller/Servicer is the sole insured of such lender’s title
insurance policy, such title insurance policy has been duly and validly endorsed
to the Trustee (as defined in the Pooling and Servicing Agreement) or the
assignment to such Trustee of the Seller/Servicer’s interest does not require
the consent of or notification to the insurer and such lender’s title insurance
policy is in full force and effect and will be in full force and effect upon
the
consummation of the transactions contemplated by the Xxxxxx-RWT Agreement.
No
claims have been made under such lender’s title insurance policy, and no prior
holder of the related Mortgage has done, by act or omission, anything which
would impair the coverage of such lender’s title insurance policy;
(xiv) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event permitting acceleration, except
for any Mortgage Loan Payment which is not late by more than 30 days, and the
Seller/Servicer has not waived any default, breach, violation or event
permitting acceleration;
(xv) All
material improvements subject to the Mortgage, lie wholly within the boundaries
and building restrictions lines of the Mortgaged Property (and wholly within
the
project with respect to a condominium unit) and no improvements on adjoining
properties materially encroach upon the Mortgaged Property, except those which
are insured against by the title insurance policy referred to in paragraph
(xiii) above and all improvements on the property comply with all applicable
zoning and subdivision laws and ordinances;
(xvi) The
Mortgage Loan (unless designated as originated by others on any Mortgage Loan
Schedule) was originated by the Seller/Servicer (or the corporate predecessor
of
the Seller/Servicer), and at the time of each such origination of such Mortgage
Loan the Seller/Servicer was (unless designated as “originated prior to HUD
approval” on any Mortgage Loan Schedule) a mortgagee approved by the Secretary
of Housing and Urban Development (the “Secretary”) pursuant to Sections 203 and
211 of the National Housing Act. Each such Mortgage Loan was underwritten in
accordance with the Underwriting Guide as in effect at the time of origination,
except to the extent the Seller/Servicer believed as such time that a variance
from such Underwriting Guide was warranted by compensating factors. The Mortgage
contains the usual and customary provision of the Seller/Servicer, if any,
in
the applicable jurisdiction at the time of origination for the acceleration
of
the payment of the unpaid principal balance of the Mortgage Loan if the related
Mortgaged Property is sold without the prior consent of the Mortgagee
thereunder;
(xvii) The
Mortgaged Property at origination or acquisition was and is free of material
damage and waste and at origination there was, and there is, no proceeding
pending for the total or partial condemnation thereof;
(xviii) The
related Mortgage contains customary and enforceable provisions such as to render
the rights and remedies of the holder thereof adequate for the realization
against the Mortgaged Property of the benefits of the security provided
thereby;
(xix) If
the
Mortgage constitutes a deed of trust, a trustee, duly qualified if required
under applicable law to act as such, has been properly designated and currently
so serves as named in the Mortgage, and no fees or expenses are or will become
payable to the trustee under the deed of trust, except in connection with a
trustee’s sale or attempted sale after default by the Mortgagor;
39
(xx) With
respect to the Mortgage Loan, there is an appraisal on a Xxxxxx Xxx-approved
form (or a narrative residential appraisal) of the related Mortgaged Property
that conforms to the applicable requirements of the Financial Institutions
Reform Recovery and Enforcement Act of 1989 and that was signed prior to the
approval of such Mortgage Loan application by a qualified appraiser, appointed
by the Seller/Servicer or the originator of such Mortgage Loan, as appropriate,
who has no interest, direct or indirect, in the Mortgaged Property or in any
loan made on the security thereof, and whose compensation is not affected by
the
approval or disapproval of such Mortgage Loan;
(xxi) The
Mortgage Loan contains no “subsidized buydown” or graduated payment
features;
(xxii) The
Mortgaged Property has a single-family (one to four-unit) dwelling residence
erected thereon, or is an individual condominium unit in a condominium, or
a
Cooperative Apartment or an individual unit in a planned unit development or
in
a de
minimis planned
unit development as defined by Xxxxxx Mae. No such residence is a mobile home
or
a manufactured dwelling which is not permanently attached to the
land;
(xxiii) Except
as
set forth on the Mortgage Loan Schedule the Mortgage Loan is not a Converted
Mortgage Loan. The Mortgage Loan does not provide for negative
amortization;
(xxiv) The
Mortgage Loan does not have an original term in excess of thirty (30) years
and
one month;
(xxv) If
the
Mortgage Loan is a Cooperative Loan, (a) there is no provision in any
proprietary lease which requires the Mortgagor to offer for sale the cooperative
shares owned by such Mortgagor first to the cooperative, (b) there is no
prohibition in the proprietary lease against pledging the cooperative shares
or
assigning the proprietary lease, (c) the Cooperative Apartment is lawfully
occupied under applicable law, and (d) all inspections, licenses and
certificates required to be made or issued with respect to all occupied portions
of the Cooperative Apartment and the related project have been made or obtained
from the appropriate authorities;
(xxviii) There
has
been no fraud, material misrepresentation or deceit on the part of any Mortgagor
or any third party in connection with the Mortgage Loan (including the
application, processing, appraisal and origination) which would cause a material
economic loss to the owner of the Mortgage Loan, including, but not limited
to,
material misrepresentation of such Mortgagor’s income, funds on deposit or
employment;
(xxix) The
origination, collection and other servicing practices used by the
Seller/Servicer with respect to the Mortgage Loans are in compliance with all
material requirements of applicable laws and regulations;
(xxx) The
Seller/Servicer shall cause to be maintained for each Mortgage Loan primary
hazard insurance with extended coverage on the related mortgage property in
an
amount equal to the lessor of (i) full replacement value of improvements and
(ii) the outstanding principal balance;
(xxix) RWT
Holdings has no knowledge of any homestead or other exemption available to
the
mortgagor which would interfere with the right to sell the mortgage property
at
trustee’s sale or the right to foreclose the mortgage;
(xxx) At
the
time of origination of such Mortgage Loan, and thereafter, all material
requirements of any federal, state or local law including usury,
truth-in-lending, real estate settlement procedures, consumer credit protection,
equal credit opportunity or disclosure laws required to be complied with by
the
Seller/Servicer as the originator of the Mortgage Loan have been complied with
in all material respects;
(xxxi) The
Additional Collateral Mortgage Loans are insured under the terms and provisions
of the Surety Bond subject to the limitations set forth therein. The
Seller/Servicer will deliver to the Surety Bond issuer an “Assignment and Notice
of Transfer” in the form of Attachment to the Surety Bond, or any other similar
instrument required to be delivered under the Surety Bond, executed by the
Seller/Servicer and RWT Holdings,
and that all other requirements for transferring coverage under the Surety
Bond
in respect of such Additional Collateral Mortgage Loans to the Trustee (as
defined in the Pooling and Servicing Agreement) shall be complied
with;
40
(xxxii) RWT
hereby represents and warrants to Purchaser that prior to its assignment to
Purchaser, RWT had a first priority perfected security interest in each Trading
Account, or, if necessary to perfect a first priority security interest in
each
asset contained in such Trading Account, a first priority perfected security
interest in each such asset contained in such Trading Account and following
RWT's assignment of the Pledge Agreements and related security interest,
Purchaser has a first priority perfected security interest in each Trading
Account, or, if necessary to perfect a first priority security interest in
each
asset contained in such Trading Account, a
perfected first priority security interest in each such asset contained in
such
Trading Account;
(xxxiii) The
assignment of rights to Purchaser under the Surety Bond, as described herein,
will not result in Purchaser assuming any obligations or liabilities of RWT
with
respect thereto (other than to assist RWT in connection with claims filed
thereunder with respect to the Additional Collateral Mortgage Loans owned by
the
Purchaser);
(xxxiv) With
respect to each Additional Collateral Mortgage Loan sold under the Master
Mortgage Loan Purchase Agreement and Master Servicing Agreement, the following
representations and warranties made under each agreement thereof are hereby
modified as follows:
1) The
terms
of the Additional Collateral Pledge Collateral Agreement related to such
Mortgage Loan have not been impaired, waived, altered or modified in any
material respect, except as specifically set forth in the related Mortgage
Loan
Schedule;
2) Except
as
specifically outlined in the Additional Collateral Pledge Agreement, the
Additional Collateral Pledge Agreement related to such Mortgage Loan are not
subject to any right of rescission, set-off or defense, including the defense
of
usury, nor will the operation of any of the terms of such Additional Collateral
Agreement, or the exercise of any right thereunder, render such Additional
Collateral Agreement unenforceable, in whole or in part, or subject to any
right
of rescission, set-off or defense, including the defense of usury and no such
right of rescission, set-off or defense has been asserted with respect thereto;
and
3) There
is
no default, breach, violation or event of acceleration existing under the
Additional Collateral Pledge Agreement or any other agreements, documents,
or
instruments related to such Mortgage Loan. There is no event that, with the
lapse of time, the giving of notice, or both, would constitute such a default,
breach, violation or event of acceleration.
(xxxv) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act, which became effective October
1,
2002;
(xxxvi)
Each Mortgage Loan at the time it was made complied in all material respects
with applicable local, state, and federal predatory and abusive lending
laws;
(xxxvii)
None of the mortgage loans are High Cost as defined by the applicable local,
state, and federal predatory and abusive lending laws and no mortgage loan
is a
“high cost” or “covered” mortgage loan, as applicable (as such terms are defined
in the then current Standard and Poor’s LEVELS Glossary which is now Version
6.0, Appendix E);
(xxxviii)
No Mortgage Loan which is secured by property located in the State of New Jersey
is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act,
which became effective November 27, 2003;
41
(xxxix)
No
Mortgage Loan which is secured by property located in the State of New Mexico
is
a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
which became effective January 1, 2004;
(xl) No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003;
(xli) No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004;
(xlii) No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.);
(xliii) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005;
(xliv)
None of the proceeds of any Mortgage Loan were used to finance the purchase
of
single premium credit insurance policies;
(xlv) No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(xlvi) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC; and
(xlvii) There
were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in
the
Mortgage Loans.
42
VII.
|
Master
Mortgage Loan Purchase Agreement between RWT Holdings, Inc. ("RWT")
and
Xxxxxx Xxxxxxx Credit Corporation with Redwood Trust as Guarantor,
dated
November 1, 2006, as modified by the related Acknowledgements (the
“Xxxxxx
Xxxxxxx-RWT Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the Xxxxxx Xxxxxxx-RWT
Agreement.
(i) The
information set forth in the Mortgage Loan Schedule is true and correct in
all
material respects;
(ii) The
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(iii) As
of the
Closing Date, the Mortgage Loan is not delinquent more than 29 days, the
Mortgage Loan has never been delinquent for more than 59 days and the Mortgage
Loan has not been dishonored. There are no material defaults under the terms
of
the Mortgage Loan. The Seller/Servicer has not advanced funds, or induced or,
solicited any advance of funds from a party other than the owner of the
Mortgaged Property subject to the Mortgage, directly or indirectly, for the
payment of any amount required by the Mortgage Loan;
(iv) With
respect to those Mortgage Loans which are required to deposit funds into an
escrow account for payment of taxes, assessments, insurance premiums and similar
items as they become due, all escrow deposits have been collected, are under
the
control of the Seller/Servicer, and have been applied by the Seller/Servicer
to
the payment of such items in a timely fashion, in accordance with such Mortgage.
There exist no deficiencies in connection therewith for which customary
arrangements for repayment thereof have not been met. With respect to those
Mortgage Loans for which escrow deposits are not required, there are no
delinquent taxes or other outstanding charges affecting the related Mortgaged
Property which constitute a lien on the related Mortgaged Property;
(v) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments contained in the Trustee
Mortgage File, approved, if necessary, by the insurer under any Primary Mortgage
Insurance Policy and recorded in all places necessary to maintain the first
priority of the lien, the substance of which waiver, alteration or modification
is reflected on the Mortgage Loan Schedule. No Mortgagor has been released,
in
whole or in part, except by operation of law or in connection with an assumption
agreement which assumption agreement is part of the Trustee Mortgage File and
the terms of which are reflected in the Mortgage Loan Schedule;
(vi) Neither
the Mortgage Note nor the Mortgage is subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will
the
operation of any of the terms of the Mortgage Note and the Mortgage, or the
exercise of any right thereunder, render the Mortgage unenforceable, in whole
or
in part, or subject to any right of rescission, set-off, counterclaim or
defense, including the defense of usury and no such right of rescission,
set-off, counterclaim or defense has been asserted by any Person with respect
thereto;
(vii) All
buildings upon the Mortgaged Property are required to be insured by a generally
acceptable insurer against loss by fire, hazards of extended coverage and such
other hazards as are customarily included in extended coverage in the area
where
the Mortgaged Property is located, pursuant to standard property insurance
policies in compliance with the Seller/Servicer’s policies as from time to time
in effect. On the date of origination, all such property policies were in
effect, and contained a standard mortgage clause naming the Seller/Servicer
or
the originator of the Mortgage Loan and their respective successors in interest
as mortgagee; such policy and clause or a replacement is in effect and all
premiums due thereon have been paid. If the Mortgaged Property is located in
an
area identified by the Federal Emergency Management Agency as having special
flood hazards under the National Flood Insurance Act of 1994, as amended, such
Mortgaged Property is covered by flood insurance in the amount required under
the National Flood Insurance Act of 1994. The Mortgage obligates the Mortgagor
to maintain such insurance and authorizes the holder of the Mortgage to maintain
such insurance at Mortgagor’s cost and expense should the Mortgagor fail to do
so and to seek reimbursement therefor from the Mortgagor;
43
(viii) At
the
time of origination of such Mortgage Loan and thereafter, all requirements
of
any federal or state law, including usury, truth-in-lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity
or
disclosure laws required to be complied with by Seller as the originator of
the
Mortgage Loan and applicable to the Mortgage Loan have been complied with in
all
material respects;
(ix) The
Mortgage has not been satisfied as of the Closing Date, canceled or
subordinated, in whole, or rescinded, and the Mortgaged Property has not been
released from the lien of the Mortgage, in whole or in part (except for a
release that does not materially impair the security of the Mortgage Loan or
a
release the effect of which is reflected in the Loan-to-Value Ratio for the
Mortgage Loan as set forth in the Mortgage Loan Schedule);
(x) Ownership
of the Mortgaged Property is held in fee simple or leasehold estate. With
respect to Mortgage Loans that are secured by a leasehold estate: (i) the lease
is valid, in full force and effect, and conforms to all of Xxxxxx Mae’s
requirements for leasehold estates; (ii) all rents and other payments due under
the lease have been paid; (iii) the lessee is not in default under any provision
of the lease; (iv) the term of the lease exceeds the maturity date of the
related Mortgage Loan by at least five (5) years; and (v) the terms of the
lease
provide a Mortgagee with an opportunity to cure any defaults. Except as
permitted by the fourth sentence of this paragraph (x), the Mortgage is a valid,
subsisting and enforceable first lien on the Mortgaged Property securing the
Mortgage Note’s original principal balance. Such lien is free and clear of all
adverse claims, liens and encumbrances having priority over the first lien
of
the Mortgage, subject only to (1) the lien of non-delinquent current real
property taxes and assessments not yet due and payable, (2) liens, covenants,
conditions and restrictions, rights of way, easements and other matters
reflected in the public record as of the date of recording which are acceptable
to mortgage lending institutions generally, or which are referred to
(specifically or generally) in the lender’s title insurance policy delivered to
the originator of the Mortgage Loan and either (A) which are referred to or
otherwise considered in such title insurance policy or the appraisal made for
the originator of the Mortgage Loan, or (B) which do not in the aggregate
adversely affect the appraised value of the Mortgaged Property as set forth
in
such appraisal, and (3) other matters to which like properties are commonly
subject which do not in the aggregate materially interfere with the benefits
of
the security intended to be provided by the Mortgage or the use, enjoyment,
value or marketability of the related Mortgaged Property. With respect to each
Cooperative Loan, the security instruments create a valid, enforceable and
subsisting first priority security interest in the Cooperative Apartment
securing the related Mortgage Note subject only to (a) the lien of the related
cooperative for unpaid assessments representing the Mortgagor’s pro rata share
of payments for a blanket mortgage, if any, current and future real property
taxes, insurance premiums, maintenance fees and other assessments, and (b)
other
matters to which the collateral is commonly subject which do not materially
interfere with the benefits of the security intended to be provided; provided,
however, that the related proprietary lease for the Cooperative Apartment may
be
subordinated or otherwise subject to the lien of a Mortgage on the cooperative
building;
(xi) The
Mortgage Note and the related Mortgage are genuine and are in proper form to
constitute a legal, valid and binding obligation of the maker thereof in all
material respects, enforceable in accordance with its terms, subject to
bankruptcy, insolvency and other laws of general application affecting the
rights of creditors, and general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law), and
assuming that the maker thereof had the legal capacity to enter into the
Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage.
The
Mortgage Note and the Mortgage have been duly and properly executed by such
parties. An obligor of the debt evidenced by the Mortgage Note is a natural
person. The proceeds of the Mortgage Loan have been fully disbursed and there
is
no requirement for future advances thereunder, and any and all requirements
in
the Mortgage as to completion of any on-site or off-site improvements and as
to
disbursements of any escrow funds therefor have been complied with;
44
(xii) RWT
Holdings has good title to, and the full right to transfer and sell, the
Mortgage Loan and the Mortgage Note free and clear of any encumbrance, equity,
lien, pledge, charge, claim or security interest including, any lien, claim
or
other interest arising by operation of law;
(xiii) The
Mortgage Loan is covered by either an ALTA lender’s title insurance policy or
other generally acceptable form of policy or insurance acceptable to Xxxxxx
Xxx
or Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac and qualified to do business in the jurisdiction where the Mortgaged
Property is located, insuring (subject to the exceptions contained in paragraph
(x) (1), (2) and (3) above) to the Seller/Servicer, its successors and assigns,
the first priority lien of the Mortgage in the original principal amount of
the
Mortgage Loan. The Seller/Servicer is the sole insured of such lender’s title
insurance policy, such title insurance policy has been duly and validly endorsed
to the Trustee (as defined in the Pooling and Servicing Agreement) or the
assignment to such Trustee of the Seller/Servicer’s interest does not require
the consent of or notification to the insurer and such lender’s title insurance
policy is in full force and effect and will be in full force and effect upon
the
consummation of the transactions contemplated by the Xxxxxx-RWT Agreement.
No
claims have been made under such lender’s title insurance policy, and no prior
holder of the related Mortgage has done, by act or omission, anything which
would impair the coverage of such lender’s title insurance policy;
(xiv) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event permitting acceleration, except
for any Mortgage Loan Payment which is not late by more than 30 days, and the
Seller/Servicer has not waived any default, breach, violation or event
permitting acceleration;
(xv) All
material improvements subject to the Mortgage, lie wholly within the boundaries
and building restrictions lines of the Mortgaged Property (and wholly within
the
project with respect to a condominium unit) and no improvements on adjoining
properties materially encroach upon the Mortgaged Property, except those which
are insured against by the title insurance policy referred to in paragraph
(xiii) above and all improvements on the property comply with all applicable
zoning and subdivision laws and ordinances;
(xvi) The
Mortgage Loan (unless designated as originated by others on any Mortgage Loan
Schedule) was originated by the Seller/Servicer (or the corporate predecessor
of
the Seller/Servicer), and at the time of each such origination of such Mortgage
Loan the Seller/Servicer was (unless designated as “originated prior to HUD
approval” on any Mortgage Loan Schedule) a mortgagee approved by the Secretary
of Housing and Urban Development (the “Secretary”) pursuant to Sections 203 and
211 of the National Housing Act. Each such Mortgage Loan was underwritten in
accordance with the Underwriting Guide as in effect at the time of origination,
except to the extent the Seller/Servicer believed as such time that a variance
from such Underwriting Guide was warranted by compensating factors. The Mortgage
contains the usual and customary provision of the Seller/Servicer, if any,
in
the applicable jurisdiction at the time of origination for the acceleration
of
the payment of the unpaid principal balance of the Mortgage Loan if the related
Mortgaged Property is sold without the prior consent of the Mortgagee
thereunder;
(xvii) The
Mortgaged Property at origination or acquisition was and is free of material
damage and waste and at origination there was, and there is, no proceeding
pending for the total or partial condemnation thereof;
(xviii) The
related Mortgage contains customary and enforceable provisions such as to render
the rights and remedies of the holder thereof adequate for the realization
against the Mortgaged Property of the benefits of the security provided
thereby;
(xix) If
the
Mortgage constitutes a deed of trust, a trustee, duly qualified if required
under applicable law to act as such, has been properly designated and currently
so serves as named in the Mortgage, and no fees or expenses are or will become
payable to the trustee under the deed of trust, except in connection with a
trustee’s sale or attempted sale after default by the Mortgagor;
45
(xx) With
respect to the Mortgage Loan, there is an appraisal on a Xxxxxx Xxx-approved
form (or a narrative residential appraisal) of the related Mortgaged Property
that conforms to the applicable requirements of the Financial Institutions
Reform Recovery and Enforcement Act of 1989 and that was signed prior to the
approval of such Mortgage Loan application by a qualified appraiser, appointed
by the Seller/Servicer or the originator of such Mortgage Loan, as appropriate,
who has no interest, direct or indirect, in the Mortgaged Property or in any
loan made on the security thereof, and whose compensation is not affected by
the
approval or disapproval of such Mortgage Loan;
(xxi) The
Mortgage Loan contains no “subsidized buydown” or graduated payment
features;
(xxii) The
Mortgaged Property has a single-family (one to four-unit) dwelling residence
erected thereon, or is an individual condominium unit in a condominium, or
a
Cooperative Apartment or an individual unit in a planned unit development or
in
a de
minimis planned
unit development as defined by Xxxxxx Mae. No such residence is a mobile home
or
a manufactured dwelling which is not permanently attached to the
land;
(xxiii) Except
as
set forth on the Mortgage Loan Schedule the Mortgage Loan is not a Converted
Mortgage Loan. The Mortgage Loan does not provide for negative
amortization;
(xxiv) The
Mortgage Loan does not have an original term in excess of thirty (30) years
and
one month;
(xxv) If
the
Mortgage Loan is a Cooperative Loan, (a) there is no provision in any
proprietary lease which requires the Mortgagor to offer for sale the cooperative
shares owned by such Mortgagor first to the cooperative, (b) there is no
prohibition in the proprietary lease against pledging the cooperative shares
or
assigning the proprietary lease, (c) the Cooperative Apartment is lawfully
occupied under applicable law, and (d) all inspections, licenses and
certificates required to be made or issued with respect to all occupied portions
of the Cooperative Apartment and the related project have been made or obtained
from the appropriate authorities;
(xxxi) There
has
been no fraud, material misrepresentation or deceit on the part of any Mortgagor
or any third party in connection with the Mortgage Loan (including the
application, processing, appraisal and origination) which would cause a material
economic loss to the owner of the Mortgage Loan, including, but not limited
to,
material misrepresentation of such Mortgagor’s income, funds on deposit or
employment;
(xxxii) The
origination, collection and other servicing practices used by the
Seller/Servicer with respect to the Mortgage Loans are in compliance with all
material requirements of applicable laws and regulations;
(xxxiii) The
Seller/Servicer shall cause to be maintained for each Mortgage Loan primary
hazard insurance with extended coverage on the related mortgage property in
an
amount equal to the lessor of (i) full replacement value of improvements and
(ii) the outstanding principal balance;
(xxix) RWT
Holdings has no knowledge of any homestead or other exemption available to
the
mortgagor which would interfere with the right to sell the mortgage property
at
trustee’s sale or the right to foreclose the mortgage;
(xxx) The
Mortgagor has not notified Seller of, and Seller has no knowledge of, any relief
requested or allowed to the Mortgagor under the Servicemembers Civil Relief
Act.
(xxxi) No
Mortgage Loan is (a) subject to the provisions of the Homeownership and Equity
Protections Act of 1994 as amended (“HOEPA”), (b) a “high risk home” mortgage
loan, or predatory” mortgage loan or any other comparable terms, no matter how
defined under any applicable federal, state or local law, (c) subject to any
comparable federal, state or local statutes or regulations, or any other statute
or regulation providing for heightened regulatory scrutiny or assignee liability
to holders of such mortgage loans, or (d) a High Cost Loan or Covered Loan,
as
applicable (as such terms are defined in the current Standard & Poor’s
LEVELS ® Glossary Revised, Appendix E).
46
(xxxii)
No predatory, abusive or deceptive lending practices, including, but not limited
to, the extension of credit to a mortgagor without regard for the mortgagor’s
ability to repay the Mortgage Loan and other extension of credit to a mortgagor
which has no tangible net benefit to the mortgagor, were employed by the Seller
in the origination of the Mortgage Loan.
(xxxiii)
RWT hereby represents and warrants to Purchaser that prior to its assignment
to
Purchaser, RWT had a first priority perfected security interest in each Trading
Account, or, if necessary to perfect a first priority security interest in
each
asset contained in such Trading Account, a first priority perfected security
interest in each such asset contained in such Trading Account and following
RWT's assignment of the Pledge Agreements and related security interest,
Purchaser has a first priority perfected security interest in each Trading
Account, or, if necessary to perfect a first priority security interest in
each
asset contained in such Trading Account, a perfected first priority security
interest in each such asset contained in such Trading Account;
(xxxiv)
The Additional Collateral Mortgage Loans are insured under the terms and
provisions of the Surety Bond subject to the limitations set forth therein.
The
Seller/Servicer will deliver to the Surety Bond issuer an “Assignment and Notice
of Transfer” in the form of Attachment to the Surety Bond, or any other similar
instrument required to be delivered under the Surety Bond, executed by the
Seller/Servicer and RWT Holdings,
and that all other requirements for transferring coverage under the Surety
Bond
in respect of such Additional Collateral Mortgage Loans to the Trustee (as
defined in the Pooling and Servicing Agreement) shall be complied
with;
(xxxv) The
assignment of rights to Purchaser under the Surety Bond, as described herein,
will not result in Purchaser assuming any obligations or liabilities of RWT
with
respect thereto (other than to assist RWT in connection with claims filed
thereunder with respect to the Additional Collateral Mortgage Loans owned by
the
Purchaser);
(xxxvi) With
respect to each Additional Collateral Mortgage Loan sold under the Master
Mortgage Loan Purchase Agreement and Master Servicing Agreement, the following
representations and warranties made under each agreement thereof are hereby
modified as follows:
1) The
terms
of the Additional Collateral Pledge Collateral Agreement related to such
Mortgage Loan have not been impaired, waived, altered or modified in any
material respect, except as specifically set forth in the related Mortgage
Loan
Schedule;
2) Except
as
specifically outlined in the Additional Collateral Pledge Agreement, the
Additional Collateral Pledge Agreement related to such Mortgage Loan are not
subject to any right of rescission, set-off or defense, including the defense
of
usury, nor will the operation of any of the terms of such Additional Collateral
Agreement, or the exercise of any right thereunder, render such Additional
Collateral Agreement unenforceable, in whole or in part, or subject to any
right
of rescission, set-off or defense, including the defense of usury and no such
right of rescission, set-off or defense has been asserted with respect thereto;
and
3) There
is
no default, breach, violation or event of acceleration existing under the
Additional Collateral Pledge Agreement or any other agreements, documents,
or
instruments related to such Mortgage Loan. There is no event that, with the
lapse of time, the giving of notice, or both, would constitute such a default,
breach, violation or event of acceleration.
(xxxiv) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act, which became effective October
1,
2002;
47
(xxxv)
No
Mortgage Loan which is secured by property located in the State of New Jersey
is
a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which
became effective November 27, 2003;
(xxxvi)
No Mortgage Loan which is secured by property located in the State of New Mexico
is a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection
Act, which became effective January 1, 2004;
(xxxvii)
No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003;
(xxxviii) No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004;
(xxxix) No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.);
(xl) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005;
(xli)
None of the proceeds of any Mortgage Loan were used to finance the purchase
of
single premium credit insurance policies;
(xlii)
No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(xliii) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC;
(xliv) There
were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans; and
(xlv) Each
conventional first lien Mortgage Loan that had a LTV at origination in excess
of
80% will be subject to a Primary Mortgage Insurance Policy, issued by a
qualified insurer, in at least such amount as is required by the Agency. All
provisions of such Primary Mortgage Insurance Policy have been and are being
complied with, such policy is in full force and effect, and all premiums due
thereunder have been paid. Any first lien Mortgage Loan subject to any such
Primary Mortgage Insurance Policy obligates the Mortgagor thereunder to maintain
such insurance and to pay all premiums and charges in connection therewith
unless terminable in accordance with the Xxxxxx Xxx and Xxxxxxx Mac guidelines
or applicable law.
48
VIII.
|
With
Respect to Mortgage Loans purchased under the Mortgage Loan Flow
Purchase,
Sale & Servicing Agreement, dated as of June 27, 2001 (the “PHH
Agreement”), among Redwood Trust, Inc. (“Redwood Trust”), and PHH Mortgage
Corporation (formerly PHH Mortgage Corporation) (“PHH”) and Xxxxxx’x Gate
Residential Mortgage Trust (formerly known as Cendant Residential
Mortgage
Trust) (“Xxxxxx’x Gate”, and together with PHH, the “Seller/Servicer”),
and the Additional Collateral Servicing Agreement dated as of July
27,
2001, between Cendant and Redwood Trust, as Purchaser (the “Additional
Collateral Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings, Inc. hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to Pledged Mortgages (as such capitalized terms
are defined in the Indenture), unless otherwise indicated. Capitalized terms
are
as defined in this Schedule A or in the PHH Agreement.
(1) Mortgage
Loan as Described.
Such
Mortgage Loan complies with the terms and conditions set forth in the PHH
Agreement, and all of the information set forth with respect thereto on the
Mortgage Loan Schedule is true and correct in all material
respects;
(2) Complete
Mortgage Files.
The
instruments and documents specified in Section
2.02 of
the
PHH Agreement with respect to such Mortgage Loan have been delivered in
compliance with the requirements of Article
II of
the PHH Agreement. Cendant is in possession of a Mortgage File respecting such
Mortgage Loan, except for such documents as have been previously delivered
to
the Custodian;
(3) Mortgagee
of Record.
The
Mortgage relating to such Mortgage Loan has been duly recorded in the
appropriate recording office, and the applicable Seller/Servicer is the
mortgagee of record of such Mortgage Loan and the indebtedness evidenced by
the
related Mortgage Note;
(4) Payments
Current.
All
payments required to be made up to and including the Funding Date for such
Mortgage Loan under the terms of the Mortgage Note have been made, such that
such Mortgage Loan is not delinquent 30 days or more on the Funding Date.
Unless otherwise disclosed in the Offering Materials or the Mortgage Loan
Schedule, there has been no delinquency, exclusive of any period of grace,
in
any payment by the Mortgagor thereunder during the twelve months preceding
the
Funding Date; and, if the Mortgage Loan is a Cooperative Loan, no foreclosure
action or private or public sale under the Uniform Commercial Code has ever
been
threatened or commenced with respect to the Cooperative Loan;
(5) No
Outstanding Charges.
There
are no delinquent taxes, insurance premiums, assessments, including assessments
payable in future installments, or other outstanding charges affecting the
Mortgaged Property related to such Mortgage Loan;
(6) Original
Terms Unmodified.
The
terms of the Mortgage Note, the Mortgage and the Additional Collateral Agreement
related to such Mortgage Loan (and the Proprietary Lease and the Pledge
Instruments with respect to each Cooperative Loan,) have not been impaired,
waived, altered or modified in any material respect, except as specifically
set
forth in the related Mortgage Loan Schedule;
(7) No
Defenses.
The
Mortgage Note, the Mortgage and the Additional Collateral Agreement related
to
such Mortgage Loan (and the Acceptance of Assignment and Assumption of Lease
Agreement related to each Cooperative Loan) are not subject to any right of
rescission, set-off or defense, including the defense of usury, nor will the
operation of any of the terms of such Mortgage Note and such Mortgage (or the
Additional Collateral Agreement), or the exercise of any right thereunder,
render such Mortgage (or the Additional Collateral Agreement) unenforceable,
in
whole or in part, or subject to any right of rescission, set-off or defense,
including the defense of usury and no such right of rescission, set-off or
defense has been asserted with respect thereto;
(8) Hazard
Insurance.
(a) All
buildings upon the Mortgaged Property related to such Mortgage Loan are insured
by an insurer acceptable to FNMA or FHLMC against loss by fire, hazards of
extended coverage and such other hazards as are customary in the area where
such
Mortgaged Property is located, pursuant to insurance policies conforming to
the
requirements of either Section
5.10 or
Section
5.11 of
the PHH Agreement. All such insurance policies (collectively, the “hazard
insurance policy”) contain a standard mortgagee clause naming the originator of
such Mortgage Loan, its successors and assigns, as mortgagee. Such policies
are
the valid and binding obligations of the insurer, and, to
the
knowledge of RWT Holdings,
all
premiums thereon due to date have been paid. The related Mortgage obligates
the
Mortgagor thereunder to maintain all such insurance at such Mortgagor’s cost and
expense, and on such Mortgagor’s failure to do so, authorizes the holder of such
Mortgage to maintain such insurance at such Mortgagor’s cost and expense and to
seek reimbursement therefor from such Mortgagor; or (b) in the case of a
condominium or unit in a planned unit development (“PUD”) project that is not
covered by an individual policy, the condominium or PUD project is covered
by a
“master” or “blanket” policy and there exists and is in the Seller/Servicer’s
Mortgage File a certificate of insurance showing that the individual unit that
secures the first mortgage is covered under such policy. The insurance policy
contains a standard mortgagee clause naming the originator of such Mortgage
Loan
(and its successors and assigns), as insured mortgagee. Such policies are the
valid and binding obligations of the insurer, and, to
the
knowledge of RWT Holdings,
all
premiums thereon have been paid. The insurance policy provides for advance
notice to the Seller/Servicer if the policy is canceled or not renewed, or
if
any other change that adversely affects the Seller/Servicer’s interests is made;
the certificate includes the types and amounts of coverage provided, describes
any endorsements that are part of the “master” policy and would be acceptable
pursuant to the FNMA Guide;
49
(9) Compliance
With Applicable Laws.
All
requirements of any federal, state or local law (including usury, truth in
lending, real estate settlement procedures, consumer credit protection, equal
credit opportunity or disclosure laws) applicable to the origination and
servicing of such Mortgage Loan have been complied with in all material
respects;
(10) No
Satisfaction of Mortgage.
The
Mortgage related to such Mortgage Loan has not been satisfied, canceled or
subordinated, in whole or in part, or rescinded, and the related Mortgaged
Property has not been released from the lien of such Mortgage, in whole or
in
part, nor has any instrument been executed that would effect any such release,
cancellation, subordination or rescission;
(11) Valid
First Lien.
The
Mortgage including any Negative Amortization, related to such Mortgage Loan
is a
valid, subsisting and enforceable perfected first lien on the related Mortgaged
Property, including all improvements on the related Mortgaged Property, which
Mortgaged Property is free and clear of any encumbrances and liens having
priority over the first lien of the Mortgage subject only to (a) the lien of
current real estate taxes and special assessments not yet due and payable,
(b)
covenants, conditions and restrictions, rights of way, easements and other
matters of the public record as of the date of recording of such Mortgage which
are acceptable to mortgage lending institutions generally, are referred to
in
the lender’s title insurance policy and do not adversely affect the market value
or intended use of the related Mortgaged Property, and (c) other matters to
which like properties are commonly subject which do not individually or in
the
aggregate materially interfere with the benefits of the security intended to
be
provided by such Mortgage or the use, enjoyment, or market value of the related
Mortgaged Property; with respect to each Cooperative Loan, each Acceptance
of
Assignment and Assumption of Lease Agreement creates a valid, enforceable and
subsisting first security interest in the collateral securing the related
Mortgage Note subject only to (a) the lien of the related Cooperative
Corporation for unpaid assessments representing the obligor’s pro rata share of
the Cooperative Corporation’s payments for its blanket mortgage, current and
future real property taxes, insurance premiums, maintenance fees and other
assessments to which like collateral is commonly subject and (b) other matters
to which like collateral is commonly subject which do not materially interfere
with the benefits of the security intended to be provided by the Acceptance
of
Assignment and Assumption of Lease Agreement; provided, however, that the
appurtenant Proprietary Lease may be subordinated or otherwise subject to the
lien of any mortgage on the Cooperative Project;
(12) Validity
of Documents.
The
Mortgage Note and the Mortgage related to such Mortgage Loan (and the Acceptance
of Assignment and Assumption of Lease Agreement with respect to each Cooperative
Loan) are genuine and each is the legal, valid and binding obligation of the
maker thereof, enforceable in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization or other
similar laws affecting the enforcement of creditors’ rights generally and
general equitable principles (regardless whether such enforcement is considered
in a proceeding in equity or at law);
50
(13) Valid
Execution of Documents.
All
parties to the Mortgage Note and the Mortgage related to such Mortgage Loan
had
legal capacity to enter into such Mortgage Loan and to execute and deliver
the
related Mortgage Note and the related Mortgage and the related Mortgage Note
and
the related Mortgage have been duly and properly executed by such parties;
with
respect to each Cooperative Loan, all parties to the Mortgage Note and the
Mortgage Loan had legal capacity to execute and deliver the Mortgage Note,
the
Acceptance of Assignment and Assumption of Lease Agreement, the Proprietary
Lease, the Stock Power, the Recognition Agreement, the Financing Statement
and
the Assignment of Proprietary Lease and such documents have been duly and
properly executed by such parties; each Stock Power (i) has all signatures
guaranteed or (ii) if all signatures are not guaranteed, then such Cooperative
Shares will be transferred by the stock transfer agent of the Cooperative
Corporation if the Seller/Servicer undertakes to convert the ownership of the
collateral securing the related Cooperative Loan;
(14) Full
Disbursement of Proceeds.
Such
Mortgage Loan has closed and the proceeds of such Mortgage Loan have been fully
disbursed prior to the Funding Date; provided
that,
with respect to any Mortgage Loan originated within the previous 120 days,
alterations and repairs with respect to the related Mortgaged Property or any
part thereof may have required an escrow of funds in an amount sufficient to
pay
for all outstanding work within 120 days of the origination of such Mortgage
Loan, and, if so, such funds are held in escrow by the applicable
Seller/Servicer, a title company or other escrow agent;
(15) Ownership.
The
Mortgage Note and the Mortgage related to such Mortgage Loan have not been
assigned, pledged or otherwise transferred by RWT Holdings, in whole or in
part,
and RWT Holdings has good and marketable title thereto, and the RWT Holdings
is
the sole owner thereof (and with respect to any Cooperative Loan, the sole
owner
of the related Acceptance of Assignment and Assumption of Lease Agreement)and
has full right and authority to transfer and sell such Mortgage Loan, and is
transferring such Mortgage Loan free and clear of any encumbrance, equity,
lien,
pledge, charge, claim or security interest;
(16) Doing
Business.
All
parties that have had any interest in such Mortgage Loan, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) in compliance with any and all applicable
licensing requirements of the laws of the state wherein the related Mortgaged
Property is located;
(17) Title
Insurance.
(a)
Such Mortgage Loan is covered by an ALTA lender’s title insurance policy or
short form title policy acceptable to FNMA and FHLMC (or, in jurisdictions
where
ALTA policies are not generally approved for use, a lender’s title insurance
policy acceptable to FNMA and FHLMC), issued by a title insurer acceptable
to
FNMA and FHLMC and qualified to do business in the jurisdiction where the
related Mortgaged Property is located, insuring (subject to the exceptions
contained in clauses (11)(a) and (b) above) the applicable Seller/Servicer,
its
successors and assigns as to the first priority lien of the related Mortgage
in
the original principal amount of such Mortgage Loan including any Negative
Amortization and in the case of ARM Loans, against any loss by reason of the
invalidity or unenforceability of the lien resulting from the provisions of
such
Mortgage providing for adjustment to the applicable Note Rate and Monthly
Payment. Additionally, either such lender’s title insurance policy affirmatively
insures that there is ingress and egress to and from the Mortgaged Property
or
the Seller/Servicer warrants that there is ingress and egress to and from the
Mortgaged Property and the lender’ s title insurance policy affirmatively
insures against encroachments by or upon the related Mortgaged Property or
any
interest therein or any other adverse circumstance that either is disclosed
or
would have been disclosed by an accurate survey. The applicable Seller/Servicer
is the sole insured of such lender’s title insurance policy, and such lender’s
title insurance policy is in full force and effect and will be in full force
and
effect upon the consummation of the transactions contemplated by the PHH
Agreement and will inure to the benefit of RWT Holdings without any further
act.
No claims have been made under such lender’s title insurance policy, neither the
applicable Seller/Servicer, nor to the best of RWT Holdings’ knowledge, any
prior holder of the related Mortgage has done, by act or omission, anything
that
would impair the coverage of such lender’s insurance policy, and there is no
act, omission, condition, or information that would impair the coverage of
such
lender’s insurance policy; (b) The mortgage title insurance policy covering each
unit mortgage in a condominium or PUD project related to such Mortgage Loan
meets all requirements of FNMA and FHLMC;
51
(18) No
Defaults.
(a)
There is no default, breach, violation or event of acceleration existing under
the Mortgage, the Mortgage Note, and Additional Collateral Agreement or any
other agreements, documents, or instruments related to such Mortgage Loan;
(b)
to the best of the RWT Holdings’ knowledge, there is no event that, with the
lapse of time, the giving of notice, or both, would constitute such a default,
breach, violation or event of acceleration; (c) the Mortgagor(s) with respect
to
such Mortgage Loan is (1) not in default under any other Mortgage Loan or (2)
the subject of an Insolvency Proceeding; (d) no event of acceleration has
previously occurred, and no notice of default has been sent, with respect to
such Mortgage Loan; (e) in no event has the applicable Seller/Servicer waived
any of its rights or remedies in respect of any default, breach, violation
or
event of acceleration under the Mortgage, the Mortgage Note, and Additional
Collateral Agreement or any other agreements, documents, or instruments related
to such Mortgage Loan; and (f) with respect to each Cooperative Loan, there
is
no default in complying with the terms of the Mortgage Note, the Acceptance
of
Assignment and Assumption of Lease Agreement and the Proprietary Lease and
all
maintenance charges and assessments (including assessments payable in the future
installments, which previously became due and owing) have been paid, and the
Seller/Servicer has the right under the terms of the Mortgage Note, Acceptance
of Assignment and Assumption of Lease Agreement and Recognition Agreement to
pay
any maintenance charges or assessments owed by the Mortgagor;
(19) No
Mechanics’ Liens.
As of
the date of origination of such Mortgage Loan, there were no mechanics’ or
similar liens, except such liens as are expressly insured against by a title
insurance policy, or claims that have been filed for work, labor or material
(and no rights are outstanding that under law could give rise to such lien)
affecting the related Mortgaged Property that are or may be liens prior to,
or
equal or coordinate with, the lien of the related Mortgage;
(20) Location
of Improvements; No Encroachments.
As of
the date of origination of such Mortgage Loan, to the best of RWT Holdings’
knowledge, all improvements that were considered in determining the Appraised
Value of the related Mortgaged Property lay wholly within the boundaries and
building restriction lines of such Mortgaged Property, and no improvements
on
adjoining properties encroach upon such Mortgaged Property except as permitted
under the terms of the FNMA Guide and the FHLMC Selling Guide; to the best
of
RWT Holdings’ knowledge, no improvement located on or part of any Mortgaged
Property is in violation of any applicable zoning law or regulation, and all
inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of such Mortgaged Property, and with respect
to
the use and occupancy of the same, including certificates of occupancy, have
been made or obtained from the appropriate authorities;
(21) Origination;
Payment Terms.
Principal payments on such Mortgage Loan commenced or will commence no more
than
60 days after funds were disbursed in connection with such Mortgage Loan.
If the interest rate on the related Mortgage Note is adjustable, the adjustment
is based on the Index set forth on the related Mortgage Loan Schedule. The
related Mortgage Note is payable on the first day of each month in arrears,
in
accordance with the payment terms described on the related Mortgage Loan
Schedule. With respect to any Mortgage Loan subject to Negative Amortization
the
Monthly Payments are sufficient during the period following each Payment
Adjustment Date to fully amortize the outstanding principal balance as of the
first day of such period (including any Negative Amortization) over the original
term thereof in accordance with the terms and conditions set forth in the
Mortgage Note ;
(22) Due
On
Sale.
Except
as noted otherwise on the Mortgage Loan Schedule, the related Mortgage contains
the usual and customary “due-on-sale” clause or other similar provision for the
acceleration of the payment of the Unpaid Principal Balance of such Mortgage
Loan if the related Mortgaged Property or any interest therein is sold or
transferred without the prior consent of the mortgagee thereunder;
(23) Prepayment
Penalty.
Except
as noted otherwise on the Mortgage Loan Schedule, such Mortgage Loan is not
subject to any Prepayment Penalty; and no Mortgage Loan contains prepayment
penalties that extend beyond five years after the date of
origination;
52
(24) Mortgaged
Property Undamaged; No Condemnation.
To the
best of RWT Holdings’ knowledge, as of the Funding Date, the related Mortgaged
Property (and with respect to a Cooperative Loan, the related Cooperative
Project and Cooperative Unit) is free of material damage and waste and there
is
no proceeding pending for the total or partial condemnation
thereof;
(25) Customary
Provisions.
The
related Mortgage contains customary and enforceable provisions that render
the
rights and remedies of the holder thereof adequate for the realization against
the related Mortgaged Property of the benefits of the security provided thereby,
including, (a) in the case of a Mortgage designated as a deed of trust, by
trustee’s sale, and (b) in the case of a Mortgage, otherwise by judicial
foreclosure;
(26) Conformance
With Underwriting Standards.
Such
Mortgage Loan was underwritten in accordance with the Cendant Guide;
(27) Appraisal.
The
Mortgage File contains an appraisal of the related Mortgaged Property on forms
and with riders approved by FNMA and FHLMC, signed prior to the approval of
such
Mortgage Loan application by an appraiser, duly appointed by the originator
of
such Mortgage Loan, whose compensation is not affected by the approval or
disapproval of such Mortgage Loan and who met the minimum qualifications of
FNMA
and FHLMC for appraisers. Each appraisal of the Mortgage Loan was made in
accordance with the relevant provisions of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989;
(28) Deeds
of Trust.
If the
related Mortgage constitutes a deed of trust, then a trustee, duly qualified
under applicable law to serve as such, has been properly designated and
currently so serves and is named in such Mortgage, and no fees or expenses
are
or will become payable to the trustee under such deed of trust, except in
connection with a trustee’s sale after default by the related
Mortgagor;
(29) LTV;
Primary Mortgage Insurance Policy.
Except
with respect to Additional Collateral Mortgage Loans (as defined in Exhibit
11
to the PHH Agreement), if such Mortgage Loan had a Loan-to-Value Ratio of more
than 80% at origination, such Mortgage Loan is and will be subject to a Primary
Insurance Policy issued by a Qualified Mortgage Insurer, which insures the
applicable Seller/Servicer, its successors and assigns and insureds in the
amount set forth on the Mortgage Loan Schedule; provided that, a Primary
Mortgage Insurance Policy will not be required for any Cooperative Loan if
(i)
the proceeds of such Cooperative Loan were used to purchase a Cooperative Unit
at the “insider’s price” when the building was converted to a Cooperative
Corporation, (ii) the value of the Cooperative Unit for purposes of establishing
the LTV at origination was such “insider’s price”, (iii) the principal amount of
the Cooperative Loan at origination was not more than 100% of such “insider’s
price” and (iv) the LTV at origination, as calculated using the Appraised Value
at origination, was less than or equal to 80%. To
the
knowledge of RWT Holdings, all
provisions of such Primary Insurance Policy have been and are being complied
with, such policy is in full force and effect, and, to
the
knowledge of RWT Holdings,
all
premiums due thereunder have been paid. Any related Mortgage subject to any
such
Primary Insurance Policy (other than a “lender-paid” Primary Insurance Policy)
obligates the Mortgagor thereunder to maintain such insurance for the time
period required by law and to pay all premiums and charges in connection
therewith. As of the date of origination, the Loan-to-Value Ratio of such
Mortgage Loan is as specified in the applicable Mortgage Loan
Schedule;
(30) Occupancy.
As of
the date of origination of such Mortgage Loan, to the best of RWT Holdings’
knowledge, the related Mortgaged Property (or with respect to a Cooperative
Loan, the related Cooperative Unit) is lawfully occupied under applicable law
and all inspections, licenses and certificates required to be made or issued
with respect to all occupied portions of the Mortgaged Property (or with respect
to a Cooperative Loan, the related Cooperative Unit) and, with respect to the
use and occupancy of the same, including but not limited to certificates of
occupancy, have been made or obtained from the appropriate
authorities;
(31) Supervision
and Examination by a Federal or State Authority.
Each
Mortgage Loan either was (a) closed in the name of the PHH Mortgage, or (b)
closed in the name of another entity that is either a savings and loan
association, a savings bank, a commercial bank, credit union, insurance company
or an institution which is supervised and examined by a federal or state
authority, or a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Sections 203 and 211 of the National Housing Act (a
“HUD
Approved Mortgagee”), and was so at the time such Mortgage Loan was originated
(PHH Mortgage or such other entity, the “Originator”) or (c) closed in the name
of a loan broker under the circumstances described in the following sentence.
If
such Mortgage Loan was originated through a loan broker, such Mortgage Loan
met
the Originator’s underwriting criteria at the time of origination and was
originated in accordance with the Originator’s policies and procedures and the
Originator acquired such Mortgage Loan from the loan broker contemporaneously
with the origination thereof. The Mortgage Loans that Bishops’ Gate Residential
Mortgage Trust sold to RWT Holdings were originated by or on behalf of PHH
Mortgage and subsequently assigned to the Bishops’ Gate Residential Mortgage
Trust;
53
(32) Adjustments.
All of
the terms of the related Mortgage Note pertaining to interest rate adjustments,
payment adjustments and adjustments of the outstanding principal balance, if
any, are enforceable and such adjustments will not affect the priority of the
lien of the related Mortgage; all such adjustments on such Mortgage Loan have
been made properly and in accordance with the provisions of such Mortgage
Loan;
(33) Insolvency
Proceedings; Soldiers’ and Sailors’ Relief Act.
To the
best of RWT Holdings’ knowledge, the related Mortgagor (1) is not the subject of
any Insolvency Proceeding; and (2) has not requested any relief allowed to
such
Mortgagor under the Soldiers’ and Sailors’ Civil Relief Act of
1940;
(34) FNMA/FHLMC
Documents.
Such
Mortgage Loan was closed on standard FNMA or FHLMC documents or on such
documents otherwise acceptable to them;
(35) Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan contains provisions pursuant to which Monthly Payments are (a)
paid or partially paid with funds deposited in any separate account established
by the Seller/Servicer, the Mortgagor, or anyone on behalf of the Mortgagor,
(b)
paid by any source other than the Mortgagor or (c) contains any other similar
provisions which may constitute a “buydown” provision. The Mortgage Loan is not
a graduated payment mortgage loan and the Mortgage Loan does not have a shared
appreciation or other contingent interest feature;
(36) The
Assignment is in recordable form and is acceptable for recording under the
laws
of the jurisdiction in which the Mortgaged Property is located;
(37) Any
principal advances made to the Mortgagor prior to the Cut-off Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The consolidated principal amount does not exceed the
original principal amount of the Mortgage Loan plus any Negative
Amortization;
(38) Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan has a balloon payment feature. With respect to any Mortgage Loan
with a balloon payment feature, the Mortgage Note is payable in Monthly Payments
based on a thirty year amortization schedule and has a final Monthly Payment
substantially greater than the proceeding Monthly Payment which is sufficient
to
amortize the remaining principal balance of the Mortgage Loan;
(39) If
the
residential dwelling on the Mortgaged Property is a condominium unit or a unit
in a planned unit development (other than a de minimis planned unit development)
such condominium or planned unit development project meets the eligibility
requirements of the Cendant Guide;
(40) No
Mortgage Loan is subject to the provisions of the Homeownership and Equity
Protection Act of 1994;
(41) Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan was made in connection with (a) the construction or rehabilitation
of a Mortgaged Property or (b) facilitating the trade-in or exchange of a
Mortgaged Property;
(42) RWT
Holdings has no knowledge of any circumstances or condition with respect to
the
Mortgage, the Mortgage Property (or with respect to a Cooperative Loan, the
Acceptance of Assignment and Assumption of Lease Agreement, the Cooperative
Unit
or the Cooperative Project), the Mortgagor or the Mortgagor’s credit standing
that can reasonably be expected to cause the Mortgage Loan to be an unacceptable
investment, cause the Mortgage Loan to become delinquent, or adversely affect
the value of the Mortgage Loan;
54
(43) Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
(44) To
the
best of RWT Holdings’ knowledge, the Mortgaged Property is in material
compliance with all applicable environmental laws pertaining to environmental
hazards including, without limitation, asbestos, and neither the Seller/Servicer
nor, to RWT Holdings’ knowledge, the related Mortgagor, has received any notice
of any violation or potential violation of such law;
(45) Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan is subject to negative amortization;
(46) With
respect to each Cooperative Loan, a Cooperative Lien Search has been made by
a
company competent to make the same which company is acceptable to FNMA and
qualified to do business in the jurisdiction where the Cooperative Unit is
located;
(47) With
respect to each Cooperative Loan, (i) the terms of the related Proprietary
Lease
is longer than the terms of the Cooperative Loan, (ii) there is no provision
in
any Proprietary Lease which requires the Mortgagor to offer for sale the
Cooperative Shares owned by such Mortgagor first to the Cooperative Corporation,
(iii) there is no prohibition in any Proprietary Lease against pledging the
Cooperative Shares or assigning the Proprietary Lease and (iv) the Recognition
Agreement is on a form of agreement published by the Aztech Document Systems,
Inc. or includes provisions which are no less favorable to the lender than
those
contained in such agreement;
(48) With
respect to each Cooperative Loan, each original UCC financing statement,
continuation statement or other governmental filing or recordation necessary
to
create or preserve the perfection and priority of the first priority lien and
security interest in the Cooperative Shares and Proprietary Lease has been
timely and properly made. Any security agreement, chattel mortgage or equivalent
document related to the Cooperative Loan and delivered to the Mortgagor or
its
designee establishes in the Mortgagor a valid and subsisting perfected first
lien on and security interest in the Mortgaged Property described therein,
and
the Mortgagor has full right to sell and assign the same;
(49) With
respect to each Cooperative Loan, each Acceptance of Assignment and Assumption
of Lease Agreement contains enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for the realization of the benefits
of the security provided thereby. The Acceptance of Assignment and Assumption
of
Lease Agreement contains an enforceable provision for the acceleration of the
payment of the unpaid principal balance of the Mortgage Note in the event the
Cooperative Unit is transferred or sold without the consent of the holder
thereof;
(50) No
fraud,
error, omission, misrepresentation, or negligence with respect to a Mortgage
Loan has taken place on the part of any person, including without limitation,
the Mortgagor, any appraiser, any builder or developer or any other party
involved in the origination of the Mortgage Loan;
(51) The
Additional Collateral Mortgage Loans are insured under the terms and provisions
of the Surety Bond subject to the limitations set forth therein. All
requirements for transferring coverage under the Surety Bond in respect of
such
Additional Collateral Mortgage Loans to the Trustee (as defined in the
Indenture) shall be complied with;
(52) None
of
the proceeds of any Mortgage Loan were used to finance the purchase of single
premium credit insurance policies;
(53)
No
Mortgage Loan is covered by the Home Ownership and Equity Protection Act of
1994
and no Mortgage Loan is “high cost” as defined by any applicable federal, state
or local predatory or abusive lending law, and no mortgage loan is a “high cost”
or “covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 6.0, Appendix
E);
55
(54)
Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state and federal laws, including, but not limited to, all
applicable predatory or abusive lending laws;
(55) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC; and
(56) There
were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in
the
Mortgage Loans.
56
IX.
|
With
Respect to Mortgage Loans purchased under the Mortgage Loan Flow
Purchase,
Sale & Servicing Agreement, dated as of August 1, 2002 (the “PHH
Agreement”), among RWT Holdings, Inc. ("RWT Holdings"), and PHH Mortgage
Corporation (formerly known as Cendant Mortgage Corporation) (“PHH”) and
Xxxxxx’x Gate Residential Mortgage Trust (formerly known as Cendant
Residential Mortgage Trust) (“Xxxxxx’x Gate”, and together with PHH, the
“Seller/Servicer”), and the Additional Collateral Servicing Agreement
dated as of August 1, 2002, between PHH and RWT Holdings, as Purchaser
(the “Additional Collateral
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the (as such capitalized terms are defined
in
the Pooling and Servicing Agreement), unless otherwise indicated. Capitalized
terms are as defined in this Schedule A or in the PHH Agreement.
(1) Mortgage
Loan as Described.
Such
Mortgage Loan complies with the terms and conditions set forth in the PHH
Agreement, and all of the information set forth with respect thereto on the
Mortgage Loan Schedule is true and correct in all material respects, and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(2)
Complete
Mortgage Files.
The
instruments and documents specified in Section
2.02 of
the
PHH Agreement with respect to such Mortgage Loan have been delivered in
compliance with the requirements of Article
II of
the PHH Agreement. PHH is in possession of a Mortgage File respecting such
Mortgage Loan, except for such documents as have been previously delivered
to
the Custodian;
(3)
Mortgagee
of Record.
The
Mortgage relating to such Mortgage Loan has been duly recorded in the
appropriate recording office, and the applicable Seller/Servicer is the
mortgagee of record of such Mortgage Loan and the indebtedness evidenced by
the
related Mortgage Note;
(4)
Payments
Current.
All
payments required to be made up to and including the Funding Date for such
Mortgage Loan under the terms of the Mortgage Note have been made, such that
such Mortgage Loan is not delinquent 30 days or more on the Funding Date.
Unless otherwise disclosed in the Offering Materials or the Mortgage Loan
Schedule, there has been no delinquency, exclusive of any period of grace,
in
any payment by the Mortgagor thereunder during the twelve months preceding
the
Funding Date; and, if the Mortgage Loan is a Cooperative Loan, no foreclosure
action or private or public sale under the Uniform Commercial Code has ever
been
threatened or commenced with respect to the Cooperative Loan;
(5)
No
Outstanding Charges.
There
are no delinquent taxes, insurance premiums, assessments, including assessments
payable in future installments, or other outstanding charges affecting the
Mortgaged Property related to such Mortgage Loan;
(6)
Original
Terms Unmodified.
The
terms of the Mortgage Note, the Mortgage and the Additional Collateral Agreement
related to such Mortgage Loan (and the Proprietary Lease and the Pledge
Instruments with respect to each Cooperative Loan,) have not been impaired,
waived, altered or modified in any material respect, except as specifically
set
forth in the related Mortgage Loan Schedule;
(7)
No
Defenses.
The
Mortgage Note, the Mortgage and the Additional Collateral Agreement related
to
such Mortgage Loan (and the Acceptance of Assignment and Assumption of Lease
Agreement related to each Cooperative Loan) are not subject to any right of
rescission, set-off or defense, including the defense of usury, nor will the
operation of any of the terms of such Mortgage Note and such Mortgage (or the
Additional Collateral Agreement), or the exercise of any right thereunder,
render such Mortgage (or the Additional Collateral Agreement) unenforceable,
in
whole or in part, or subject to any right of rescission, set-off or defense,
including the defense of usury and no such right of rescission, set-off or
defense has been asserted with respect thereto;
(8)
Hazard
Insurance.
(a) All
buildings upon the Mortgaged Property related to such Mortgage Loan are insured
by an insurer acceptable to FNMA or FHLMC against loss by fire, hazards of
extended coverage and such other hazards as are customary in the area where
such
Mortgaged Property is located, pursuant to insurance policies conforming to
the
requirements of either Section
5.10 or
Section
5.11 of
the PHH Agreement. All such insurance policies (collectively, the “hazard
insurance policy”) contain a standard mortgagee clause naming the originator of
such Mortgage Loan, its successors and assigns, as mortgagee. Such policies
are
the valid and binding obligations of the insurer, and all premiums thereon
due
to date have been paid. The related Mortgage obligates the Mortgagor thereunder
to maintain all such insurance at such Mortgagor’s cost and expense, and on such
Mortgagor’s failure to do so, authorizes the holder of such Mortgage to maintain
such insurance at such Mortgagor’s cost and expense and to seek reimbursement
therefor from such Mortgagor; or (b) in the case of a condominium or unit in
a
planned unit development (“PUD”) project that is not covered by an individual
policy, the condominium or PUD project is covered by a “master” or “blanket”
policy and there exists and is in the Seller/Servicer’s Mortgage File a
certificate of insurance showing that the individual unit that secures the
first
mortgage is covered under such policy. The insurance policy contains a standard
mortgagee clause naming the originator of such Mortgage Loan (and its successors
and assigns), as insured mortgagee. Such policies are the valid and binding
obligations of the insurer, and all premiums thereon have been paid. The
insurance policy provides for advance notice to the Seller/Servicer if the
policy is canceled or not renewed, or if any other change that adversely affects
the Seller/Servicer’s interests is made; the certificate includes the types and
amounts of coverage provided, describes any endorsements that are part of the
“master” policy and would be acceptable pursuant to the FNMA Guide;
57
(9)
Compliance
With Applicable Laws.
All
requirements of any federal, state or local law (including usury, truth in
lending, real estate settlement procedures, consumer credit protection, equal
credit opportunity or disclosure laws) applicable to the origination and
servicing of such Mortgage Loan have been complied with in all material
respects;
(10)
No
Satisfaction of Mortgage.
The
Mortgage related to such Mortgage Loan has not been satisfied, canceled or
subordinated, in whole or in part, or rescinded, and the related Mortgaged
Property has not been released from the lien of such Mortgage, in whole or
in
part, nor has any instrument been executed that would effect any such release,
cancellation, subordination or rescission;
(11)
Valid
First Lien.
The
Mortgage including any Negative Amortization, related to such Mortgage Loan
is a
valid, subsisting and enforceable perfected first lien on the related Mortgaged
Property, including all improvements on the related Mortgaged Property, which
Mortgaged Property is free and clear of any encumbrances and liens having
priority over the first lien of the Mortgage subject only to (a) the lien of
current real estate taxes and special assessments not yet due and payable,
(b)
covenants, conditions and restrictions, rights of way, easements and other
matters of the public record as of the date of recording of such Mortgage which
are acceptable to mortgage lending institutions generally, are referred to
in
the lender’s title insurance policy and do not adversely affect the market value
or intended use of the related Mortgaged Property, and (c) other matters to
which like properties are commonly subject which do not individually or in
the
aggregate materially interfere with the benefits of the security intended to
be
provided by such Mortgage or the use, enjoyment, or market value of the related
Mortgaged Property; with respect to each Cooperative Loan, each Acceptance
of
Assignment and Assumption of Lease Agreement creates a valid, enforceable and
subsisting first security interest in the collateral securing the related
Mortgage Note subject only to (a) the lien of the related Cooperative
Corporation for unpaid assessments representing the obligor’s pro rata share of
the Cooperative Corporation’s payments for its blanket mortgage, current and
future real property taxes, insurance premiums, maintenance fees and other
assessments to which like collateral is commonly subject and (b) other matters
to which like collateral is commonly subject which do not materially interfere
with the benefits of the security intended to be provided by the Acceptance
of
Assignment and Assumption of Lease Agreement; provided, however, that the
appurtenant Proprietary Lease may be subordinated or otherwise subject to the
lien of any mortgage on the Cooperative Project;
(12)
Validity
of Documents.
The
Mortgage Note and the Mortgage related to such Mortgage Loan (and the Acceptance
of Assignment and Assumption of Lease Agreement with respect to each Cooperative
Loan) are genuine and each is the legal, valid and binding obligation of the
maker thereof, enforceable in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization or other
similar laws affecting the enforcement of creditors’ rights generally and
general equitable principles (regardless whether such enforcement is considered
in a proceeding in equity or at law);
58
(13)
Valid
Execution of Documents.
All
parties to the Mortgage Note and the Mortgage related to such Mortgage Loan
had
legal capacity to enter into such Mortgage Loan and to execute and deliver
the
related Mortgage Note and the related Mortgage and the related Mortgage Note
and
the related Mortgage have been duly and properly executed by such parties;
with
respect to each Cooperative Loan, all parties to the Mortgage Note and the
Mortgage Loan had legal capacity to execute and deliver the Mortgage Note,
the
Acceptance of Assignment and Assumption of Lease Agreement, the Proprietary
Lease, the Stock Power, the Recognition Agreement, the Financing Statement
and
the Assignment of Proprietary Lease and such documents have been duly and
properly executed by such parties; each Stock Power (i) has all signatures
guaranteed or (ii) if all signatures are not guaranteed, then such Cooperative
Shares will be transferred by the stock transfer agent of the Cooperative
Corporation if the Seller/Servicer undertakes to convert the ownership of the
collateral securing the related Cooperative Loan;
(14)
Full
Disbursement of Proceeds.
Such
Mortgage Loan has closed and the proceeds of such Mortgage Loan have been fully
disbursed prior to the Funding Date; provided
that,
with respect to any Mortgage Loan originated within the previous 120 days,
alterations and repairs with respect to the related Mortgaged Property or any
part thereof may have required an escrow of funds in an amount sufficient to
pay
for all outstanding work within 120 days of the origination of such Mortgage
Loan, and, if so, such funds are held in escrow by the applicable
Seller/Servicer, a title company or other escrow agent;
(15)
Ownership.
The
Mortgage Note and the Mortgage related to such Mortgage Loan have not been
assigned, pledged or otherwise transferred by RWT Holdings, in whole or in
part,
and RWT Holdings has good and marketable title thereto, and the RWT Holdings
is
the sole owner thereof (and with respect to any Cooperative Loan, the sole
owner
of the related Acceptance of Assignment and Assumption of Lease Agreement)and
has full right and authority to transfer and sell such Mortgage Loan, and is
transferring such Mortgage Loan free and clear of any encumbrance, equity,
lien,
pledge, charge, claim or security interest;
(16)
Doing
Business.
All
parties that have had any interest in such Mortgage Loan, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) in compliance with any and all applicable
licensing requirements of the laws of the state wherein the related Mortgaged
Property is located;
(17)
Title
Insurance.
(a)
Such Mortgage Loan is covered by an ALTA lender’s title insurance policy or
short form title policy acceptable to FNMA and FHLMC (or, in jurisdictions
where
ALTA policies are not generally approved for use, a lender’s title insurance
policy acceptable to FNMA and FHLMC), issued by a title insurer acceptable
to
FNMA and FHLMC and qualified to do business in the jurisdiction where the
related Mortgaged Property is located, insuring (subject to the exceptions
contained in clauses (11)(a) and (b) above) the applicable Seller/Servicer,
its
successors and assigns as to the first priority lien of the related Mortgage
in
the original principal amount of such Mortgage Loan including any Negative
Amortization and in the case of ARM Loans, against any loss by reason of the
invalidity or unenforceability of the lien resulting from the provisions of
such
Mortgage providing for adjustment to the applicable Note Rate and Monthly
Payment. Additionally, either such lender’s title insurance policy affirmatively
insures that there is ingress and egress to and from the Mortgaged Property
or
the Seller/Servicer warrants that there is ingress and egress to and from the
Mortgaged Property and the lender’ s title insurance policy affirmatively
insures against encroachments by or upon the related Mortgaged Property or
any
interest therein or any other adverse circumstance that either is disclosed
or
would have been disclosed by an accurate survey. The applicable Seller/Servicer
is the sole insured of such lender’s title insurance policy, and such lender’s
title insurance policy is in full force and effect and will be in full force
and
effect upon the consummation of the transactions contemplated by the PHH
Agreement and will inure to the benefit of RWT Holdings without any further
act.
No claims have been made under such lender’s title insurance policy, neither the
applicable Seller/Servicer, nor any prior holder of the related Mortgage has
done, by act or omission, anything that would impair the coverage of such
lender’s insurance policy, and there is no act, omission, condition, or
information that would impair the coverage of such lender’s insurance policy;
(b) The mortgage title insurance policy covering each unit mortgage in a
condominium or PUD project related to such Mortgage Loan meets all requirements
of FNMA and FHLMC;
59
(18)
No
Defaults.
(a)
There is no default, breach, violation or event of acceleration existing under
the Mortgage, the Mortgage Note, and Additional Collateral Agreement or any
other agreements, documents, or instruments related to such Mortgage Loan;
(b)
there is no event that, with the lapse of time, the giving of notice, or both,
would constitute such a default, breach, violation or event of acceleration;
(c)
the Mortgagor(s) with respect to such Mortgage Loan is (1) not in default under
any other Mortgage Loan or (2) the subject of an Insolvency Proceeding; (d)
no
event of acceleration has previously occurred, and no notice of default has
been
sent, with respect to such Mortgage Loan; (e) in no event has the applicable
Seller/Servicer waived any of its rights or remedies in respect of any default,
breach, violation or event of acceleration under the Mortgage, the Mortgage
Note, and Additional Collateral Agreement or any other agreements, documents,
or
instruments related to such Mortgage Loan; and (f) with respect to each
Cooperative Loan, there is no default in complying with the terms of the
Mortgage Note, the Acceptance of Assignment and Assumption of Lease Agreement
and the Proprietary Lease and all maintenance charges and assessments (including
assessments payable in the future installments, which previously became due
and
owing) have been paid, and the Seller/Servicer has the right under the terms
of
the Mortgage Note, Acceptance of Assignment and Assumption of Lease Agreement
and Recognition Agreement to pay any maintenance charges or assessments owed
by
the Mortgagor;
(19)
No
Mechanics’ Liens.
As of
the date of origination of such Mortgage Loan, there were no mechanics’ or
similar liens, except such liens as are expressly insured against by a title
insurance policy, or claims that have been filed for work, labor or material
(and no rights are outstanding that under law could give rise to such lien)
affecting the related Mortgaged Property that are or may be liens prior to,
or
equal or coordinate with, the lien of the related Mortgage;
(20)
Location
of Improvements; No Encroachments.
As of
the date of origination of such Mortgage Loan, all improvements that were
considered in determining the Appraised Value of the related Mortgaged Property
lay wholly within the boundaries and building restriction lines of such
Mortgaged Property, and no improvements on adjoining properties encroach upon
such Mortgaged Property except as permitted under the terms of the FNMA Guide
and the FHLMC Selling Guide; no improvement located on or part of any Mortgaged
Property is in violation of any applicable zoning law or regulation, and all
inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of such Mortgaged Property, and with respect
to
the use and occupancy of the same, including certificates of occupancy, have
been made or obtained from the appropriate authorities;
(21)
Origination;
Payment Terms.
Principal payments on such Mortgage Loan commenced or will commence no more
than
60 days after funds were disbursed in connection with such Mortgage Loan.
If the interest rate on the related Mortgage Note is adjustable, the adjustment
is based on the Index set forth on the related Mortgage Loan Schedule. The
related Mortgage Note is payable on the first day of each month in arrears,
in
accordance with the payment terms described on the related Mortgage Loan
Schedule. With respect to any Mortgage Loan subject to Negative Amortization
the
Monthly Payments are sufficient during the period following each Payment
Adjustment Date to fully amortize the outstanding principal balance as of the
first day of such period (including any Negative Amortization) over the original
term thereof in accordance with the terms and conditions set forth in the
Mortgage Note;
(22)
Due
On
Sale.
Except
as noted otherwise on the Mortgage Loan Schedule, the related Mortgage contains
the usual and customary “due-on-sale” clause or other similar provision for the
acceleration of the payment of the Unpaid Principal Balance of such Mortgage
Loan if the related Mortgaged Property or any interest therein is sold or
transferred without the prior consent of the mortgagee thereunder;
(23)
Prepayment
Penalty.
Except
as noted otherwise on the Mortgage Loan Schedule, such Mortgage Loan is not
subject to any Prepayment Penalty; and no Mortgage Loan contains prepayment
penalties that extend beyond five years after the date of
origination;
(24)
Mortgaged
Property Undamaged; No Condemnation.
As of
the Funding Date, the related Mortgaged Property (and with respect to a
Cooperative Loan, the related Cooperative Project and Cooperative Unit) is
free
of material damage and waste and there is no proceeding pending for the total
or
partial condemnation thereof;
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(25)
Customary
Provisions.
The
related Mortgage contains customary and enforceable provisions that render
the
rights and remedies of the holder thereof adequate for the realization against
the related Mortgaged Property of the benefits of the security provided thereby,
including, (a) in the case of a Mortgage designated as a deed of trust, by
trustee’s sale, and (b) in the case of a Mortgage, otherwise by judicial
foreclosure;
(26)
Conformance
With Underwriting Standards.
Such
Mortgage Loan was underwritten in accordance with the PHH Guide;
(27)
Appraisal.
The
Mortgage File contains an appraisal of the related Mortgaged Property on forms
and with riders approved by FNMA and FHLMC, signed prior to the approval of
such
Mortgage Loan application by an appraiser, duly appointed by the originator
of
such Mortgage Loan, whose compensation is not affected by the approval or
disapproval of such Mortgage Loan and who met the minimum qualifications of
FNMA
and FHLMC for appraisers. Each appraisal of the Mortgage Loan was made in
accordance with the relevant provisions of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989;
(28)
Deeds
of Trust.
If the
related Mortgage constitutes a deed of trust, then a trustee, duly qualified
under applicable law to serve as such, has been properly designated and
currently so serves and is named in such Mortgage, and no fees or expenses
are
or will become payable to the trustee under such deed of trust, except in
connection with a trustee’s sale after default by the related
Mortgagor;
(29)
LTV;
Primary Mortgage Insurance Policy.
Except
with respect to Additional Collateral Mortgage Loans (as defined in Exhibit
11
to the PHH Agreement), if such Mortgage Loan had a Loan-to-Value Ratio of more
than 80% at origination, such Mortgage Loan is and will be subject to a Primary
Insurance Policy issued by a Qualified Mortgage Insurer, which insures the
applicable Seller/Servicer, its successors and assigns and insureds in the
amount set forth on the Mortgage Loan Schedule; provided that, a Primary
Mortgage Insurance Policy will not be required for any Cooperative Loan if
(i)
the proceeds of such Cooperative Loan were used to purchase a Cooperative Unit
at the “insider’s price” when the building was converted to a Cooperative
Corporation, (ii) the value of the Cooperative Unit for purposes of establishing
the LTV at origination was such “insider’s price”, (iii) the principal amount of
the Cooperative Loan at origination was not more than 100% of such “insider’s
price” and (iv) the LTV at origination, as calculated using the Appraised Value
at origination, was less than or equal to 80%. All provisions of such Primary
Insurance Policy have been and are being complied with, such policy is in full
force and effect, and all premiums due thereunder have been paid. Any related
Mortgage subject to any such Primary Insurance Policy (other than a
“lender-paid” Primary Insurance Policy) obligates the Mortgagor thereunder to
maintain such insurance for the time period required by law and to pay all
premiums and charges in connection therewith. As of the date of origination,
the
Loan-to-Value Ratio of such Mortgage Loan is as specified in the applicable
Mortgage Loan Schedule;
(30)
Occupancy.
As of
the date of origination of such Mortgage Loan, the related Mortgaged Property
(or with respect to a Cooperative Loan, the related Cooperative Unit) is
lawfully occupied under applicable law and all inspections, licenses and
certificates required to be made or issued with respect to all occupied portions
of the Mortgaged Property (or with respect to a Cooperative Loan, the related
Cooperative Unit) and, with respect to the use and occupancy of the same,
including but not limited to certificates of occupancy, have been made or
obtained from the appropriate authorities;
(31)
Supervision
and Examination by a Federal or State Authority.
Each
Mortgage Loan either was (a) closed in the name of the PHH Mortgage, or (b)
closed in the name of another entity that is either a savings and loan
association, a savings bank, a commercial bank, credit union, insurance company
or an institution which is supervised and examined by a federal or state
authority, or a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Sections 203 and 211 of the National Housing Act (a
“HUD
Approved Mortgagee”), and was so at the time such Mortgage Loan was originated
(PHH Mortgage or such other entity, the “Originator”) or (c) closed in the name
of a loan broker under the circumstances described in the following sentence.
If
such Mortgage Loan was originated through a loan broker, such Mortgage Loan
met
the Originator’s underwriting criteria at the time of origination and was
originated in accordance with the Originator’s policies and procedures and the
Originator acquired such Mortgage Loan from the loan broker contemporaneously
with the origination thereof. The Mortgage Loans that Bishops’ Gate Residential
Mortgage Trust sold to RWT Holdings were originated by or on behalf of PHH
Mortgage and subsequently assigned to the Bishops’ Gate Residential Mortgage
Trust;
61
(32)
Adjustments.
All of
the terms of the related Mortgage Note pertaining to interest rate adjustments,
payment adjustments and adjustments of the outstanding principal balance, if
any, are enforceable and such adjustments will not affect the priority of the
lien of the related Mortgage; all such adjustments on such Mortgage Loan have
been made properly and in accordance with the provisions of such Mortgage
Loan;
(33)
Insolvency
Proceedings; Soldiers’ and Sailors’ Relief Act.
The
related Mortgagor (1) is not the subject of any Insolvency Proceeding; and
(2)
has not requested any relief allowed to such Mortgagor under the Soldiers’ and
Sailors’ Civil Relief Act of 1940;
(34) FNMA/FHLMC
Documents.
Such
Mortgage Loan was closed on standard FNMA or FHLMC documents or on such
documents otherwise acceptable to them;
(35)
Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan contains provisions pursuant to which Monthly Payments are (a)
paid or partially paid with funds deposited in any separate account established
by the Seller/Servicer, the Mortgagor, or anyone on behalf of the Mortgagor,
(b)
paid by any source other than the Mortgagor or (c) contains any other similar
provisions which may constitute a “buydown” provision. The Mortgage Loan is not
a graduated payment mortgage loan and the Mortgage Loan does not have a shared
appreciation or other contingent interest feature;
(36)
The
Assignment is in recordable form and is acceptable for recording under the
laws
of the jurisdiction in which the Mortgaged Property is located;
(37)
Any
principal advances made to the Mortgagor prior to the Cut-off Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The consolidated principal amount does not exceed the
original principal amount of the Mortgage Loan plus any Negative
Amortization;
(38)
Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan has a balloon payment feature. With respect to any Mortgage Loan
with a balloon payment feature, the Mortgage Note is payable in Monthly Payments
based on a thirty year amortization schedule and has a final Monthly Payment
substantially greater than the proceeding Monthly Payment which is sufficient
to
amortize the remaining principal balance of the Mortgage Loan;
(39)
If
the
residential dwelling on the Mortgaged Property is a condominium unit or a unit
in a planned unit development (other than a de minimis planned unit development)
such condominium or planned unit development project meets the eligibility
requirements of the PHH Guide;
(40)
No
Mortgage Loan is subject to the provisions of the Homeownership and Equity
Protection Act of 1994;
(41)
Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan was made in connection with (a) the construction or rehabilitation
of a Mortgaged Property or (b) facilitating the trade-in or exchange of a
Mortgaged Property;
(42)
RWT
Holdings has no knowledge of any circumstances or condition with respect to
the
Mortgage, the Mortgage Property (or with respect to a Cooperative Loan, the
Acceptance of Assignment and Assumption of Lease Agreement, the Cooperative
Unit
or the Cooperative Project), the Mortgagor or the Mortgagor’s credit standing
that can reasonably be expected to cause the Mortgage Loan to be an unacceptable
investment, cause the Mortgage Loan to become delinquent, or adversely affect
the value of the Mortgage Loan;
62
(43)
Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
(44)
The
Mortgaged Property is in material compliance with all applicable environmental
laws pertaining to environmental hazards including, without limitation,
asbestos, and neither the Seller/Servicer nor the related Mortgagor, has
received any notice of any violation or potential violation of such
law;
(45)
Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan is subject to negative amortization;
(46)
With
respect to each Cooperative Loan, a Cooperative Lien Search has been made by
a
company competent to make the same which company is acceptable to FNMA and
qualified to do business in the jurisdiction where the Cooperative Unit is
located;
(47)
With
respect to each Cooperative Loan, (i) the terms of the related Proprietary
Lease
is longer than the terms of the Cooperative Loan, (ii) there is no provision
in
any Proprietary Lease which requires the Mortgagor to offer for sale the
Cooperative Shares owned by such Mortgagor first to the Cooperative Corporation,
(iii) there is no prohibition in any Proprietary Lease against pledging the
Cooperative Shares or assigning the Proprietary Lease and (iv) the Recognition
Agreement is on a form of agreement published by the Aztech Document Systems,
Inc. or includes provisions which are no less favorable to the lender than
those
contained in such agreement;
(48)
With
respect to each Cooperative Loan, each original UCC financing statement,
continuation statement or other governmental filing or recordation necessary
to
create or preserve the perfection and priority of the first priority lien and
security interest in the Cooperative Shares and Proprietary Lease has been
timely and properly made. Any security agreement, chattel mortgage or equivalent
document related to the Cooperative Loan and delivered to the Mortgagor or
its
designee establishes in the Mortgagor a valid and subsisting perfected first
lien on and security interest in the Mortgaged Property described therein,
and
the Mortgagor has full right to sell and assign the same;
(49)
With
respect to each Cooperative Loan, each Acceptance of Assignment and Assumption
of Lease Agreement contains enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for the realization of the benefits
of the security provided thereby. The Acceptance of Assignment and Assumption
of
Lease Agreement contains an enforceable provision for the acceleration of the
payment of the unpaid principal balance of the Mortgage Note in the event the
Cooperative Unit is transferred or sold without the consent of the holder
thereof;
(50)
No
fraud,
error, omission, misrepresentation, or negligence with respect to a Mortgage
Loan has taken place on the part of any person, including without limitation,
the Mortgagor, any appraiser, any builder or developer or any other party
involved in the origination of the Mortgage Loan;
(51) The
Additional Collateral Mortgage Loans are insured under the terms and provisions
of the Surety Bond subject to the limitations set forth therein. All
requirements for transferring coverage under the Surety Bond in respect of
such
Additional Collateral Mortgage Loans to the Trustee (as defined in the Pooling
and Servicing Agreement) shall be complied with;
(52) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act;
(53) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
(54) None
of
the mortgage loans are High Cost as defined by the applicable predatory and
abusive lending laws and no mortgage loan is a “high cost” or “covered” mortgage
loan, as applicable (as such terms are defined in the then current Standard
and
Poor’s LEVELS Glossary which is now Version 6.0, Appendix E);
63
(55) No
Mortgage Loan which is secured by property located in the State of New Jersey
is
a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which
became effective November 27, 2003;
(56) No
Mortgage Loan which is secured by property located in the State of New Mexico
is
a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
which became effective January 1, 2004;
(57) No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003;
(58) No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004;
(59) No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.);
(60) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005;
(61) No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(62) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC; and
(63) There
were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
64
X.
|
With
Respect to Mortgage Loans purchased under the Mortgage Loan Flow
Purchase,
Sale & Servicing Agreement, dated as of January 1, 2006 (the “PHH
Agreement”), among RWT Holdings, Inc. ("RWT Holdings"), and PHH Mortgage
Corporation (formerly known as Cendant Mortgage Corporation) (“PHH”) and
Xxxxxx’x Gate Residential Mortgage Trust (formerly known as Cendant
Residential Mortgage Trust) (“Xxxxxx’x Gate”, and together with PHH, the
“Seller/Servicer”), and the Additional Collateral Servicing Agreement
dated as of January 1, 2006, between PHH and RWT Holdings, as Purchaser
(the “Additional Collateral
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the (as such capitalized terms are defined
in
the Pooling and Servicing Agreement), unless otherwise indicated. Capitalized
terms are as defined in this Schedule A or in the PHH Agreement.
(1) Mortgage
Loan as Described.
Such
Mortgage Loan complies with the terms and conditions set forth in the PHH
Agreement, and all of the information set forth with respect thereto on the
Mortgage Loan Schedule is true and correct in all material respects, and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(2) Complete
Mortgage Files.
The
instruments and documents specified in Section
2.02 of
the
PHH Agreement with respect to such Mortgage Loan have been delivered in
compliance with the requirements of Article
II of
the PHH Agreement. PHH is in possession of a Mortgage File respecting such
Mortgage Loan, except for such documents as have been previously delivered
to
the Custodian;
(3) Mortgagee
of Record.
The
Mortgage relating to such Mortgage Loan has been duly recorded in the
appropriate recording office, and the applicable Seller/Servicer is the
mortgagee of record of such Mortgage Loan and the indebtedness evidenced by
the
related Mortgage Note;
(4) Payments
Current.
All
payments required to be made up to and including the Funding Date for such
Mortgage Loan under the terms of the Mortgage Note have been made, such that
such Mortgage Loan is not delinquent 30 days or more on the Funding Date.
Unless otherwise disclosed in the Offering Materials or the Mortgage Loan
Schedule, there has been no delinquency, exclusive of any period of grace,
in
any payment by the Mortgagor thereunder during the twelve months preceding
the
Funding Date; and, if the Mortgage Loan is a Cooperative Loan, no foreclosure
action or private or public sale under the Uniform Commercial Code has ever
been
threatened or commenced with respect to the Cooperative Loan;
(5) No
Outstanding Charges.
There
are no delinquent taxes, insurance premiums, assessments, including assessments
payable in future installments, or other outstanding charges affecting the
Mortgaged Property related to such Mortgage Loan;
(6) Original
Terms Unmodified.
The
terms of the Mortgage Note, the Mortgage and the Additional Collateral Agreement
related to such Mortgage Loan (and the Proprietary Lease and the Pledge
Instruments with respect to each Cooperative Loan,) have not been impaired,
waived, altered or modified in any material respect, except as specifically
set
forth in the related Mortgage Loan Schedule;
(7) No
Defenses.
The
Mortgage Note, the Mortgage and the Additional Collateral Agreement related
to
such Mortgage Loan (and the Acceptance of Assignment and Assumption of Lease
Agreement related to each Cooperative Loan) are not subject to any right of
rescission, set-off or defense, including the defense of usury, nor will the
operation of any of the terms of such Mortgage Note and such Mortgage (or the
Additional Collateral Agreement), or the exercise of any right thereunder,
render such Mortgage (or the Additional Collateral Agreement) unenforceable,
in
whole or in part, or subject to any right of rescission, set-off or defense,
including the defense of usury and no such right of rescission, set-off or
defense has been asserted with respect thereto;
(8) Hazard
Insurance.
(a) All
buildings upon the Mortgaged Property related to such Mortgage Loan are insured
by an insurer acceptable to FNMA or FHLMC against loss by fire, hazards of
extended coverage and such other hazards as are customary in the area where
such
Mortgaged Property is located, pursuant to insurance policies conforming to
the
requirements of either Section
5.10 or
Section
5.11 of
the PHH Agreement. All such insurance policies (collectively, the “hazard
insurance policy”) contain a standard mortgagee clause naming the originator of
such Mortgage Loan, its successors and assigns, as mortgagee. Such policies
are
the valid and binding obligations of the insurer, and all premiums thereon
due
to date have been paid. The related Mortgage obligates the Mortgagor thereunder
to maintain all such insurance at such Mortgagor’s cost and expense, and on such
Mortgagor’s failure to do so, authorizes the holder of such Mortgage to maintain
such insurance at such Mortgagor’s cost and expense and to seek reimbursement
therefor from such Mortgagor; or (b) in the case of a condominium or unit in
a
planned unit development (“PUD”) project that is not covered by an individual
policy, the condominium or PUD project is covered by a “master” or “blanket”
policy and there exists and is in the Seller/Servicer’s Mortgage File a
certificate of insurance showing that the individual unit that secures the
first
mortgage is covered under such policy. The insurance policy contains a standard
mortgagee clause naming the originator of such Mortgage Loan (and its successors
and assigns), as insured mortgagee. Such policies are the valid and binding
obligations of the insurer, and all premiums thereon have been paid. The
insurance policy provides for advance notice to the Seller/Servicer if the
policy is canceled or not renewed, or if any other change that adversely affects
the Seller/Servicer’s interests is made; the certificate includes the types and
amounts of coverage provided, describes any endorsements that are part of the
“master” policy and would be acceptable pursuant to the FNMA Guide;
65
(9) Compliance
With Applicable Laws.
All
requirements of any federal, state or local law (including usury, truth in
lending, real estate settlement procedures, consumer credit protection, equal
credit opportunity or disclosure laws) applicable to the origination and
servicing of such Mortgage Loan have been complied with in all material
respects;
(10) No
Satisfaction of Mortgage.
The
Mortgage related to such Mortgage Loan has not been satisfied, canceled or
subordinated, in whole or in part, or rescinded, and the related Mortgaged
Property has not been released from the lien of such Mortgage, in whole or
in
part, nor has any instrument been executed that would effect any such release,
cancellation, subordination or rescission;
(11) Valid
First Lien.
The
Mortgage including any Negative Amortization, related to such Mortgage Loan
is a
valid, subsisting and enforceable perfected first lien on the related Mortgaged
Property, including all improvements on the related Mortgaged Property, which
Mortgaged Property is free and clear of any encumbrances and liens having
priority over the first lien of the Mortgage subject only to (a) the lien of
current real estate taxes and special assessments not yet due and payable,
(b)
covenants, conditions and restrictions, rights of way, easements and other
matters of the public record as of the date of recording of such Mortgage which
are acceptable to mortgage lending institutions generally, are referred to
in
the lender’s title insurance policy and do not adversely affect the market value
or intended use of the related Mortgaged Property, and (c) other matters to
which like properties are commonly subject which do not individually or in
the
aggregate materially interfere with the benefits of the security intended to
be
provided by such Mortgage or the use, enjoyment, or market value of the related
Mortgaged Property; with respect to each Cooperative Loan, each Acceptance
of
Assignment and Assumption of Lease Agreement creates a valid, enforceable and
subsisting first security interest in the collateral securing the related
Mortgage Note subject only to (a) the lien of the related Cooperative
Corporation for unpaid assessments representing the obligor’s pro rata share of
the Cooperative Corporation’s payments for its blanket mortgage, current and
future real property taxes, insurance premiums, maintenance fees and other
assessments to which like collateral is commonly subject and (b) other matters
to which like collateral is commonly subject which do not materially interfere
with the benefits of the security intended to be provided by the Acceptance
of
Assignment and Assumption of Lease Agreement; provided, however, that the
appurtenant Proprietary Lease may be subordinated or otherwise subject to the
lien of any mortgage on the Cooperative Project;
(12) Validity
of Documents.
The
Mortgage Note and the Mortgage related to such Mortgage Loan (and the Acceptance
of Assignment and Assumption of Lease Agreement with respect to each Cooperative
Loan) are genuine and each is the legal, valid and binding obligation of the
maker thereof, enforceable in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization or other
similar laws affecting the enforcement of creditors’ rights generally and
general equitable principles (regardless whether such enforcement is considered
in a proceeding in equity or at law);
66
(13) Valid
Execution of Documents.
All
parties to the Mortgage Note and the Mortgage related to such Mortgage Loan
had
legal capacity to enter into such Mortgage Loan and to execute and deliver
the
related Mortgage Note and the related Mortgage and the related Mortgage Note
and
the related Mortgage have been duly and properly executed by such parties;
with
respect to each Cooperative Loan, all parties to the Mortgage Note and the
Mortgage Loan had legal capacity to execute and deliver the Mortgage Note,
the
Acceptance of Assignment and Assumption of Lease Agreement, the Proprietary
Lease, the Stock Power, the Recognition Agreement, the Financing Statement
and
the Assignment of Proprietary Lease and such documents have been duly and
properly executed by such parties; each Stock Power (i) has all signatures
guaranteed or (ii) if all signatures are not guaranteed, then such Cooperative
Shares will be transferred by the stock transfer agent of the Cooperative
Corporation if the Seller/Servicer undertakes to convert the ownership of the
collateral securing the related Cooperative Loan;
(14) Full
Disbursement of Proceeds.
Such
Mortgage Loan has closed and the proceeds of such Mortgage Loan have been fully
disbursed prior to the Funding Date; provided
that,
with respect to any Mortgage Loan originated within the previous 120 days,
alterations and repairs with respect to the related Mortgaged Property or any
part thereof may have required an escrow of funds in an amount sufficient to
pay
for all outstanding work within 120 days of the origination of such Mortgage
Loan, and, if so, such funds are held in escrow by the applicable
Seller/Servicer, a title company or other escrow agent;
(15) Ownership.
The
Mortgage Note and the Mortgage related to such Mortgage Loan have not been
assigned, pledged or otherwise transferred by RWT Holdings, in whole or in
part,
and RWT Holdings has good and marketable title thereto, and the RWT Holdings
is
the sole owner thereof (and with respect to any Cooperative Loan, the sole
owner
of the related Acceptance of Assignment and Assumption of Lease Agreement)and
has full right and authority to transfer and sell such Mortgage Loan, and is
transferring such Mortgage Loan free and clear of any encumbrance, equity,
lien,
pledge, charge, claim or security interest;
(16) Doing
Business.
All
parties that have had any interest in such Mortgage Loan, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) in compliance with any and all applicable
licensing requirements of the laws of the state wherein the related Mortgaged
Property is located;
(17) Title
Insurance.
(a)
Such Mortgage Loan is covered by an ALTA lender’s title insurance policy or
short form title policy acceptable to FNMA and FHLMC (or, in jurisdictions
where
ALTA policies are not generally approved for use, a lender’s title insurance
policy acceptable to FNMA and FHLMC), issued by a title insurer acceptable
to
FNMA and FHLMC and qualified to do business in the jurisdiction where the
related Mortgaged Property is located, insuring (subject to the exceptions
contained in clauses (11)(a) and (b) above) the applicable Seller/Servicer,
its
successors and assigns as to the first priority lien of the related Mortgage
in
the original principal amount of such Mortgage Loan including any Negative
Amortization and in the case of ARM Loans, against any loss by reason of the
invalidity or unenforceability of the lien resulting from the provisions of
such
Mortgage providing for adjustment to the applicable Note Rate and Monthly
Payment. Additionally, either such lender’s title insurance policy affirmatively
insures that there is ingress and egress to and from the Mortgaged Property
or
the Seller/Servicer warrants that there is ingress and egress to and from the
Mortgaged Property and the lender’ s title insurance policy affirmatively
insures against encroachments by or upon the related Mortgaged Property or
any
interest therein or any other adverse circumstance that either is disclosed
or
would have been disclosed by an accurate survey. The applicable Seller/Servicer
is the sole insured of such lender’s title insurance policy, and such lender’s
title insurance policy is in full force and effect and will be in full force
and
effect upon the consummation of the transactions contemplated by the PHH
Agreement and will inure to the benefit of RWT Holdings without any further
act.
No claims have been made under such lender’s title insurance policy, neither the
applicable Seller/Servicer, nor any prior holder of the related Mortgage has
done, by act or omission, anything that would impair the coverage of such
lender’s insurance policy, and there is no act, omission, condition, or
information that would impair the coverage of such lender’s insurance policy;
(b) The mortgage title insurance policy covering each unit mortgage in a
condominium or PUD project related to such Mortgage Loan meets all requirements
of FNMA and FHLMC;
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(18) No
Defaults.
(a)
There is no default, breach, violation or event of acceleration existing under
the Mortgage, the Mortgage Note, and Additional Collateral Agreement or any
other agreements, documents, or instruments related to such Mortgage Loan;
(b)
there is no event that, with the lapse of time, the giving of notice, or both,
would constitute such a default, breach, violation or event of acceleration;
(c)
the Mortgagor(s) with respect to such Mortgage Loan is (1) not in default under
any other Mortgage Loan or (2) the subject of an Insolvency Proceeding; (d)
no
event of acceleration has previously occurred, and no notice of default has
been
sent, with respect to such Mortgage Loan; (e) in no event has the applicable
Seller/Servicer waived any of its rights or remedies in respect of any default,
breach, violation or event of acceleration under the Mortgage, the Mortgage
Note, and Additional Collateral Agreement or any other agreements, documents,
or
instruments related to such Mortgage Loan; and (f) with respect to each
Cooperative Loan, there is no default in complying with the terms of the
Mortgage Note, the Acceptance of Assignment and Assumption of Lease Agreement
and the Proprietary Lease and all maintenance charges and assessments (including
assessments payable in the future installments, which previously became due
and
owing) have been paid, and the Seller/Servicer has the right under the terms
of
the Mortgage Note, Acceptance of Assignment and Assumption of Lease Agreement
and Recognition Agreement to pay any maintenance charges or assessments owed
by
the Mortgagor;
(19) No
Mechanics’ Liens.
As of
the date of origination of such Mortgage Loan, there were no mechanics’ or
similar liens, except such liens as are expressly insured against by a title
insurance policy, or claims that have been filed for work, labor or material
(and no rights are outstanding that under law could give rise to such lien)
affecting the related Mortgaged Property that are or may be liens prior to,
or
equal or coordinate with, the lien of the related Mortgage;
(20) Location
of Improvements; No Encroachments.
As of
the date of origination of such Mortgage Loan, all improvements that were
considered in determining the Appraised Value of the related Mortgaged Property
lay wholly within the boundaries and building restriction lines of such
Mortgaged Property, and no improvements on adjoining properties encroach upon
such Mortgaged Property except as permitted under the terms of the FNMA Guide
and the FHLMC Selling Guide; no improvement located on or part of any Mortgaged
Property is in violation of any applicable zoning law or regulation, and all
inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of such Mortgaged Property, and with respect
to
the use and occupancy of the same, including certificates of occupancy, have
been made or obtained from the appropriate authorities;
(21) Origination;
Payment Terms.
Principal payments on such Mortgage Loan commenced or will commence no more
than
60 days after funds were disbursed in connection with such Mortgage Loan.
If the interest rate on the related Mortgage Note is adjustable, the adjustment
is based on the Index set forth on the related Mortgage Loan Schedule. The
related Mortgage Note is payable on the first day of each month in arrears,
in
accordance with the payment terms described on the related Mortgage Loan
Schedule. With respect to any Mortgage Loan subject to Negative Amortization
the
Monthly Payments are sufficient during the period following each Payment
Adjustment Date to fully amortize the outstanding principal balance as of the
first day of such period (including any Negative Amortization) over the original
term thereof in accordance with the terms and conditions set forth in the
Mortgage Note;
(22) Due
On
Sale.
Except
as noted otherwise on the Mortgage Loan Schedule, the related Mortgage contains
the usual and customary “due-on-sale” clause or other similar provision for the
acceleration of the payment of the Unpaid Principal Balance of such Mortgage
Loan if the related Mortgaged Property or any interest therein is sold or
transferred without the prior consent of the mortgagee thereunder;
(23) Prepayment
Penalty.
Except
as noted otherwise on the Mortgage Loan Schedule, such Mortgage Loan is not
subject to any Prepayment Penalty;
(24) Mortgaged
Property Undamaged; No Condemnation.
As of
the Funding Date, the related Mortgaged Property (and with respect to a
Cooperative Loan, the related Cooperative Project and Cooperative Unit) is
free
of material damage and waste and there is no proceeding pending for the total
or
partial condemnation thereof;
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(25) Customary
Provisions.
The
related Mortgage contains customary and enforceable provisions that render
the
rights and remedies of the holder thereof adequate for the realization against
the related Mortgaged Property of the benefits of the security provided thereby,
including, (a) in the case of a Mortgage designated as a deed of trust, by
trustee’s sale, and (b) in the case of a Mortgage, otherwise by judicial
foreclosure;
(26) Conformance
With Underwriting Standards.
Such
Mortgage Loan was underwritten in accordance with the PHH Guide;
(27) Appraisal.
The
Mortgage File contains an appraisal of the related Mortgaged Property on forms
and with riders approved by FNMA and FHLMC, signed prior to the approval of
such
Mortgage Loan application by an appraiser, duly appointed by the originator
of
such Mortgage Loan, whose compensation is not affected by the approval or
disapproval of such Mortgage Loan and who met the minimum qualifications of
FNMA
and FHLMC for appraisers. Each appraisal of the Mortgage Loan was made in
accordance with the relevant provisions of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989;
(28) Deeds
of Trust.
If the
related Mortgage constitutes a deed of trust, then a trustee, duly qualified
under applicable law to serve as such, has been properly designated and
currently so serves and is named in such Mortgage, and no fees or expenses
are
or will become payable to the trustee under such deed of trust, except in
connection with a trustee’s sale after default by the related
Mortgagor;
(29) LTV;
Primary Mortgage Insurance Policy.
Except
with respect to Additional Collateral Mortgage Loans (as defined in Exhibit
11
to the PHH Agreement), if such Mortgage Loan had a Loan-to-Value Ratio of more
than 80% at origination, such Mortgage Loan is and will be subject to a Primary
Insurance Policy issued by a Qualified Mortgage Insurer, which insures the
applicable Seller/Servicer, its successors and assigns and insureds in the
amount set forth on the Mortgage Loan Schedule; provided that, a Primary
Mortgage Insurance Policy will not be required for any Cooperative Loan if
(i)
the proceeds of such Cooperative Loan were used to purchase a Cooperative Unit
at the “insider’s price” when the building was converted to a Cooperative
Corporation, (ii) the value of the Cooperative Unit for purposes of establishing
the LTV at origination was such “insider’s price”, (iii) the principal amount of
the Cooperative Loan at origination was not more than 100% of such “insider’s
price” and (iv) the LTV at origination, as calculated using the Appraised Value
at origination, was less than or equal to 80%. All provisions of such Primary
Insurance Policy have been and are being complied with, such policy is in full
force and effect, and all premiums due thereunder have been paid. Any related
Mortgage subject to any such Primary Insurance Policy (other than a
“lender-paid” Primary Insurance Policy) obligates the Mortgagor thereunder to
maintain such insurance for the time period required by law and to pay all
premiums and charges in connection therewith. As of the date of origination,
the
Loan-to-Value Ratio of such Mortgage Loan is as specified in the applicable
Mortgage Loan Schedule;
(30) Occupancy.
As of
the date of origination of such Mortgage Loan, the related Mortgaged Property
(or with respect to a Cooperative Loan, the related Cooperative Unit) is
lawfully occupied under applicable law and all inspections, licenses and
certificates required to be made or issued with respect to all occupied portions
of the Mortgaged Property (or with respect to a Cooperative Loan, the related
Cooperative Unit) and, with respect to the use and occupancy of the same,
including but not limited to certificates of occupancy, have been made or
obtained from the appropriate authorities;
(31) Supervision
and Examination by a Federal or State Authority.
Each
Mortgage Loan either was (a) closed in the name of the PHH Mortgage, or (b)
closed in the name of another entity that is either a savings and loan
association, a savings bank, a commercial bank, credit union, insurance company
or an institution which is supervised and examined by a federal or state
authority, or a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to Sections 203 and 211 of the National Housing Act (a
“HUD
Approved Mortgagee”), and was so at the time such Mortgage Loan was originated
(PHH Mortgage or such other entity, the “Originator”) or (c) closed in the name
of a loan broker under the circumstances described in the following sentence.
If
such Mortgage Loan was originated through a loan broker, such Mortgage Loan
met
the Originator’s underwriting criteria at the time of origination and was
originated in accordance with the Originator’s policies and procedures and the
Originator acquired such Mortgage Loan from the loan broker contemporaneously
with the origination thereof. The Mortgage Loans that Bishops’ Gate Residential
Mortgage Trust sold to RWT Holdings were originated by or on behalf of PHH
Mortgage and subsequently assigned to the Bishops’ Gate Residential Mortgage
Trust;
69
(32) Adjustments.
All of
the terms of the related Mortgage Note pertaining to interest rate adjustments,
payment adjustments and adjustments of the outstanding principal balance, if
any, are enforceable and such adjustments will not affect the priority of the
lien of the related Mortgage; all such adjustments on such Mortgage Loan have
been made properly and in accordance with the provisions of such Mortgage
Loan;
(33) Insolvency
Proceedings; Soldiers’ and Sailors’ Relief Act.
The
related Mortgagor (1) is not the subject of any Insolvency Proceeding; and
(2)
has not requested any relief allowed to such Mortgagor under the Soldiers’ and
Sailors’ Civil Relief Act of 1940;
(34) FNMA/FHLMC
Documents.
Such
Mortgage Loan was closed on standard FNMA or FHLMC documents or on such
documents otherwise acceptable to them;
(35) Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan contains provisions pursuant to which Monthly Payments are (a)
paid or partially paid with funds deposited in any separate account established
by the Seller/Servicer, the Mortgagor, or anyone on behalf of the Mortgagor,
(b)
paid by any source other than the Mortgagor or (c) contains any other similar
provisions which may constitute a “buydown” provision. The Mortgage Loan is not
a graduated payment mortgage loan and the Mortgage Loan does not have a shared
appreciation or other contingent interest feature;
(36) The
Assignment is in recordable form and is acceptable for recording under the
laws
of the jurisdiction in which the Mortgaged Property is located;
(37) Any
principal advances made to the Mortgagor prior to the Cut-off Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The consolidated principal amount does not exceed the
original principal amount of the Mortgage Loan plus any Negative
Amortization;
(38) Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan has a balloon payment feature. With respect to any Mortgage Loan
with a balloon payment feature, the Mortgage Note is payable in Monthly Payments
based on a thirty year amortization schedule and has a final Monthly Payment
substantially greater than the proceeding Monthly Payment which is sufficient
to
amortize the remaining principal balance of the Mortgage Loan;
(39) If
the
residential dwelling on the Mortgaged Property is a condominium unit or a unit
in a planned unit development (other than a de minimis planned unit development)
such condominium or planned unit development project meets the eligibility
requirements of the PHH Guide;
(40) No
Mortgage Loan is subject to the provisions of the Homeownership and Equity
Protection Act of 1994;
(41) Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan was made in connection with (a) the construction or rehabilitation
of a Mortgaged Property or (b) facilitating the trade-in or exchange of a
Mortgaged Property;
(42) RWT
Holdings has no knowledge of any circumstances or condition with respect to
the
Mortgage, the Mortgage Property (or with respect to a Cooperative Loan, the
Acceptance of Assignment and Assumption of Lease Agreement, the Cooperative
Unit
or the Cooperative Project), the Mortgagor or the Mortgagor’s credit standing
that can reasonably be expected to cause the Mortgage Loan to be an unacceptable
investment, cause the Mortgage Loan to become delinquent, or adversely affect
the value of the Mortgage Loan;
70
(43) Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
(44) The
Mortgaged Property is in material compliance with all applicable environmental
laws pertaining to environmental hazards including, without limitation,
asbestos, and neither the Seller/Servicer nor the related Mortgagor, has
received any notice of any violation or potential violation of such law;
(45) Unless
otherwise disclosed in the Offering Materials or the Mortgage Loan Schedule,
no
Mortgage Loan is subject to negative amortization;
(46) With
respect to each Cooperative Loan, a Cooperative Lien Search has been made by
a
company competent to make the same which company is acceptable to FNMA and
qualified to do business in the jurisdiction where the Cooperative Unit is
located;
(47) With
respect to each Cooperative Loan, (i) the terms of the related Proprietary
Lease
is longer than the terms of the Cooperative Loan, (ii) there is no provision
in
any Proprietary Lease which requires the Mortgagor to offer for sale the
Cooperative Shares owned by such Mortgagor first to the Cooperative Corporation,
(iii) there is no prohibition in any Proprietary Lease against pledging the
Cooperative Shares or assigning the Proprietary Lease and (iv) the Recognition
Agreement is on a form of agreement published by the Aztech Document Systems,
Inc. or includes provisions which are no less favorable to the lender than
those
contained in such agreement;
(48) With
respect to each Cooperative Loan, each original UCC financing statement,
continuation statement or other governmental filing or recordation necessary
to
create or preserve the perfection and priority of the first priority lien and
security interest in the Cooperative Shares and Proprietary Lease has been
timely and properly made. Any security agreement, chattel mortgage or equivalent
document related to the Cooperative Loan and delivered to the Mortgagor or
its
designee establishes in the Mortgagor a valid and subsisting perfected first
lien on and security interest in the Mortgaged Property described therein,
and
the Mortgagor has full right to sell and assign the same;
(49) With
respect to each Cooperative Loan, each Acceptance of Assignment and Assumption
of Lease Agreement contains enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for the realization of the benefits
of the security provided thereby. The Acceptance of Assignment and Assumption
of
Lease Agreement contains an enforceable provision for the acceleration of the
payment of the unpaid principal balance of the Mortgage Note in the event the
Cooperative Unit is transferred or sold without the consent of the holder
thereof;
(50) No
fraud,
error, omission, misrepresentation, or negligence with respect to a Mortgage
Loan has taken place on the part of any person, including without limitation,
the Mortgagor, any appraiser, any builder or developer or any other party
involved in the origination of the Mortgage Loan;
(51) The
Additional Collateral Mortgage Loans are insured under the terms and provisions
of the Surety Bond subject to the limitations set forth therein. All
requirements for transferring coverage under the Surety Bond in respect of
such
Additional Collateral Mortgage Loans to the Trustee (as defined in the Pooling
and Servicing Agreement) shall be complied with;
(52) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act;
(53) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
(54) None
of
the mortgage loans are High Cost as defined by the applicable predatory and
abusive lending laws and no mortgage loan is a “high cost” or “covered” mortgage
loan, as applicable (as such terms are defined in the then current Standard
and
Poor’s LEVELS Glossary which is now Version 6.0, Appendix E);
71
(55) No
Mortgage Loan which is secured by property located in the State of New Jersey
is
a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which
became effective November 27, 2003;
(56) No
Mortgage Loan which is secured by property located in the State of New Mexico
is
a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
which became effective January 1, 2004;
(57) No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003;
(58) No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004;
(59) No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.);
(60) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005;
(61) None
of
the proceeds of any Mortgage Loan were used to finance the purchase of single
premium credit insurance policies;
(62) No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(63) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC; and
(64)
There were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
72
XI. |
With
respect to Mortgage Loans purchased under the Flow Mortgage
Loan
Sale and Servicing Agreement, dated as of April 1, 2003, between
RWT
Holdings and Bank of America, N.A. (the "Seller") (the "Bank of
America-RWT Agreement")
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the Bank of
America-RWT Agreement.
(a) The
information set forth in the Mortgage Loan Schedule and the information
contained in the related electronic data file delivered by RWT Holdings is
true,
correct and complete in all material respects.
(b) There
are
no defaults by the Seller, the Servicer or any prior originator in complying
with the terms of the Mortgage, and all taxes, ground rents, governmental
assessments, insurance premiums, leasehold payments, water, sewer and municipal
charges which previously became due and owing have been paid, or escrow funds
have been established in an amount sufficient to pay for every such escrowed
item which remains unpaid and which has been assessed but is not yet due and
payable.
(c) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments which have been recorded
in the applicable public recording office required by law or if necessary to
maintain the lien priority of the Mortgage, and which have been delivered to
the
Purchaser; the substance of any such waiver, alteration or modification has
been
approved by the insurer under the Primary Mortgage Insurance Policy, if any,
and
by the title insurer, to the extent required by the related policy, and is
reflected on the related Mortgage Loan Schedule. No other instrument of waiver,
alteration or modification has been executed, and no Mortgagor has been
released, in whole or in part, except in connection with an assumption agreement
approved by the insurer under the Primary Mortgage Insurance Policy, if any,
and
by the title insurer, to the extent required by the policy, and which assumption
agreement is a part of the Mortgage File and is reflected on the related
Mortgage Loan Schedule.
(d) The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense
of
usury, nor will the operation of any of the terms of the Mortgage Note and
the
Mortgage, or the exercise of any right thereunder, render either the Mortgage
Note or the Mortgage unenforceable, in whole or in part, or subject to any
right
of rescission, set-off, counterclaim or defense, including, without limitation,
the defense of usury, and no such right of rescission, set-off, counterclaim
or
defense has been asserted with respect thereto; and the Mortgagor was not a
debtor in any state or federal bankruptcy or insolvency proceeding at the time
the Mortgage Loan was originated.
(e) All
buildings or other customarily insured improvements upon the Mortgaged Property
are insured by an insurer generally acceptable to Xxxxxx Xxx and to prudent
mortgage lending institutions against loss by fire, hazards of extended coverage
and such other hazards as are provided for in the Xxxxxx Mae Guides as well
as
all additional requirements set forth in the Bank of America-RWT Agreement,
pursuant to an insurance policy conforming to the requirements of Customary
Servicing Procedures and providing coverage in an amount equal to the lesser
of
(i) the full insurable value of the Mortgaged Property or (ii) the outstanding
principal balance owing on the Mortgage Loan. All such insurance policies are
in
full force and effect and they contain a standard mortgagee clause naming the
originator of the Mortgage Loan, its successors and assigns as mortgagee and
all
premiums thereon have been paid. If the Mortgaged Property is in an area
identified on a flood hazard map or flood insurance rate map issued by the
Federal Emergency Management Agency as having special flood hazards (and such
flood insurance has been made available), a flood insurance policy meeting
the
requirements of the current guidelines of the Federal Insurance Administration
is in effect which policy conforms to the requirements of Xxxxxx Xxx or Xxxxxxx
Mac. The Mortgage obligates the Mortgagor thereunder to maintain all such
insurance at the Mortgagor’s cost and expense, and on the Mortgagor’s failure to
do so, authorizes the holder of the Mortgage to maintain such insurance at
the
Mortgagor’s cost and expense and to seek reimbursement therefor from the
Mortgagor.
73
(f) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth in lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity, fair housing or disclosure laws
applicable to the origination and servicing of the Mortgage Loans have been
complied with; no Mortgage Loan is subject to the provisions of the Home
Ownership and Equity Protection Act of 1994, as amended, or in violation of
any
similar state or local law; the Servicer maintains, and shall maintain, evidence
of such compliance as required by applicable law or regulation and shall make
such evidence available for inspection at the Servicer’s office during normal
business hours upon reasonable advance notice.
(g) The
Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole
or in part (other than as to Principal Prepayments in full which may have been
received on or after the related Cut-off Date and prior to the related Closing
Date), and the Mortgaged Property has not been released from the lien of the
Mortgage, in whole or in part, nor has any instrument been executed that would
effect any such satisfaction, cancellation, subordination, rescission or
release. Neither the Seller nor the Servicer has waived the performance by
the
Mortgagor of any action, if the Mortgagor’s failure to perform such action would
cause the Mortgage Loan to be in default, and neither the Seller nor the
Servicer has waived any default.
(h) The
Mortgage is a valid, existing, perfected and enforceable first lien on the
Mortgaged Property, including all improvements on the Mortgaged Property, free
and clear of all adverse claims, liens and encumbrances having priority over
the
lien of the Mortgage, subject only to (i) the lien of current real property
taxes and assessments not yet due and payable, (ii) covenants, conditions and
restrictions, rights of way, easements and other matters of the public record
as
of the date of recording being acceptable to mortgage lending institutions
generally and either (A) specifically referred to in the lender’s title
insurance policy delivered to the originator of the Mortgage Loan or (B) which
do not adversely affect the Appraised Value of the Mortgaged Property and (iii)
other matters to which like properties are commonly subject which do not
individually or in the aggregate materially interfere with the benefits of
the
security intended to be provided by the Mortgage or the use, enjoyment, value
or
marketability of the related Mortgaged Property. Any security agreement, chattel
mortgage or equivalent document related to and delivered in connection with
the
Mortgage Loan establishes and creates a valid, existing and enforceable first
lien and first priority security interest on the property described therein
and
RWT Holdings has the full right to sell and assign the same to the
Purchaser.
(i) The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms except as enforceability may be limited
by
(i) bankruptcy, insolvency, liquidation, receivership, moratorium,
reorganization or other similar laws affecting the enforcement of the rights
of
creditors and (ii) general principles of equity, whether enforcement is sought
in a proceeding in equity or at law and RWT Holdings has taken all action
necessary to transfer such rights of enforceability to the
Purchaser.
(j) All
parties to the Mortgage Note and the Mortgage had the legal capacity to enter
into the Mortgage Loan and to execute and deliver the Mortgage Note and the
Mortgage, and the Mortgage Note and the Mortgage have been duly and properly
executed by such parties. Either the Mortgagor is a natural person or the
related coborrower or guarantor is a natural person.
(k) The
proceeds of the Mortgage Loan have been fully disbursed to or for the account
of
the Mortgagor and there is no obligation for the Mortgagee to advance additional
funds thereunder and any and all requirements as to completion of any on-site
or
off-site improvement and as to disbursements of any escrow funds therefor have
been complied with. All costs, fees and expenses incurred in making or closing
the Mortgage Loan and the recording of the Mortgage have been paid, and the
Mortgagor is not entitled to any refund of any amounts paid or due to the
Mortgagee pursuant to the Mortgage Note or Mortgage.
74
(l) The
Seller and all other parties which have had any interest in the Mortgage Loan,
whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period
in which they held and disposed of such interest, were) in compliance with
any
and all applicable “doing business” and licensing requirements of the laws of
the state wherein the Mortgaged Property is located.
(m) The
Mortgage Loan is covered by an ALTA or CLTA lender’s title insurance policy,
acceptable to Xxxxxx Xxx or Xxxxxxx Mac, issued by a title insurer acceptable
to
Xxxxxx Mae or Xxxxxxx Mac and qualified to do business in the jurisdiction
where
the Mortgaged Property is located, insuring (subject to the exceptions contained
in (h)(i), (ii) and (iii) above) the Seller, its successors and assigns as
to
the first priority lien of the Mortgage in the original principal amount of
the
Mortgage Loan and, with respect to any Adjustable Rate Mortgage Loan, against
any loss by reason of the invalidity or unenforceability of the lien resulting
from the provisions of the Mortgage providing for adjustment in the Mortgage
Interest Rate or Monthly Payment. The Seller and its successors and assigns
are
the sole insureds of such lender’s title insurance policy, and such lender’s
title insurance policy is in full force and effect and will be in full force
and
effect upon the consummation of the transactions contemplated by the Bank of
America-RWT Agreement and will inure to the benefit of the Purchaser and its
assigns without any further act. No claims have been made under such lender’s
title insurance policy, and RWT Holdings has not done, by act or omission,
anything which would impair the coverage of such lender’s title insurance
policy.
(n) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the Mortgage Note and no event which, with the passage of time
or
with notice and the expiration of any grace or cure period, would constitute
a
default, breach, violation or event permitting acceleration, and the Seller
and
Servicer have waived any default, breach, violation or event permitting
acceleration.
(o) There
are
no mechanics’ or similar liens or claims filed for work, labor or material (and
no rights are outstanding that under law could give rise to such lien) affecting
the related Mortgaged Property which are or may be liens prior to, or equal
or
coordinate with, the lien of the related Mortgage.
(p) All
improvements which were considered in determining the Appraised Value of the
related Mortgaged Property lay wholly within the boundaries and building
restriction lines of the Mortgaged Property, and no improvements on adjoining
properties encroach upon the Mortgaged Property.
(q) The
Mortgage Loan was originated by a commercial bank or similar banking institution
which is supervised and examined by a federal or state authority, or by a
mortgagee approved by the Secretary of HUD.
(r) Principal
payments on the Mortgage Loan commenced no more than sixty (60) days after
(i)
the IO Conversion Date, with respect to the IO Adjustable Rate Mortgage Loans
and (ii) the proceeds of the Mortgage Loan were disbursed, with respect to
all
Mortgage Loans other than IO Adjustable Rate Mortgage Loans. The Mortgage Loans
identified on the related Mortgage Loan Schedule have an original term to
maturity of not more than (i) twenty-five (25) years with respect to the IO
Adjustable Rate Mortgage Loans and (ii) thirty (30) years with respect to all
other Mortgage Loans, with interest payable in arrears on the first day of
the
month. As to each Adjustable Rate Mortgage Loan, on each applicable Adjustment
Date, the Mortgage Interest Rate will be adjusted to equal the sum of the Index
plus the applicable Gross Margin, rounded up or down as provided in the Mortgage
Note; provided,
however, that
the
Mortgage Interest Rate will not increase or decrease by more than the Initial
Rate Cap on the first Adjustment Date or the Periodic Rate Cap on any subsequent
Adjustment Date, if applicable, and will in no event exceed the Lifetime Rate
Cap. Each Mortgage Note evidencing a Mortgage Loan other than an Adjustable
Rate
Mortgage Loan requires a Monthly Payment which is sufficient to amortize the
original principal balance fully over the original term thereof and to pay
interest at the related Mortgage Interest Rate. Each Mortgage Note evidencing
an
Adjustable Rate Mortgage Loan requires a Monthly Payment which is sufficient
(after the IO Conversion Date, with respect to the IO Adjustable Rate Mortgage
Loans) (i) during the period prior to the first adjustment to the Mortgage
Interest Rate, to amortize the original principal balance fully over the
remaining term thereof and to pay interest at the related Mortgage Interest
Rate, and (ii) during the period following each Adjustment Date, to amortize
the
outstanding principal balance fully as of the first day of such period over
the
then remaining term of such Mortgage Note and to pay interest at the related
Mortgage Interest Rate. No Mortgage Note evidencing an Adjustable Rate Mortgage
Loan permits negative amortization. Interest on the Mortgage Note is calculated
on the basis of a 360-day year consisting of twelve 30-day months.
75
(s) There
is
no proceeding pending or threatened for the total or partial condemnation of
the
Mortgaged Property and such property is in good repair and is undamaged by
waste, fire, earthquake or earth movement, windstorm, flood, tornado or other
casualty, so as to affect adversely the value of the Mortgaged Property as
security for the Mortgage Loan or the use for which the premises were
intended.
(t) The
Mortgage and related Mortgage Note contain customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including (i) in the case of a Mortgage designated as a deed
of trust, by trustee’s sale, and (ii) otherwise by judicial foreclosure.
Following the date of origination of the Mortgage Loan, the Mortgaged Property
has not been subject to any bankruptcy proceeding or foreclosure proceeding
and
the Mortgagor has not filed for protection under applicable bankruptcy laws.
There is no homestead or other exemption or right available to the Mortgagor
or
any other person which would interfere with the right to sell the Mortgaged
Property at a trustee’s sale or the right to foreclose the
Mortgage.
(u) The
Mortgage Note and Mortgage are on forms acceptable to Xxxxxx Xxx or Xxxxxxx
Mac.
(v) The
Mortgage Note is not and has not been secured by any collateral except the
lien
of the corresponding Mortgage on the Mortgaged Property and the security
interest of any applicable security agreement or chattel mortgage referred
to in
(h) above.
(w) The
Mortgage File contains an appraisal of the related Mortgaged Property, in a
form
acceptable to Xxxxxx Mae or Xxxxxxx Mac and such appraisal complies with the
requirements of FIRREA, and was made and signed, prior to the approval of the
Mortgage Loan application, by a Qualified Appraiser.
(x) In
the
event the Mortgage constitutes a deed of trust, a trustee, duly qualified under
applicable law to serve as such, has been properly designated and currently
so
serves and is named in the Mortgage, and no fees or expenses are or will become
payable by the Purchaser to the trustee under the deed of trust, except in
connection with a trustee’s sale after default by the Mortgagor.
(y) The
Mortgage Loan is not a graduated payment mortgage loan and the Mortgage Loan
does not have a shared appreciation, balloon payment or other contingent
interest feature, nor does it contain any “buydown” provision which is currently
in effect.
(z) The
Mortgage contains an enforceable provision for the acceleration of the payment
of the unpaid principal balance of the Mortgage Loan in the event that the
Mortgaged Property is sold or transferred without the prior written consent
of
the mortgagee thereunder.
(aa) The
Mortgagor has received all disclosure materials required by applicable law
with
respect to the making of mortgage loans of the same type as the Mortgage Loan
and rescission materials required by applicable law if the Mortgage Loan is
a
Refinanced Mortgage Loan and has acknowledged receipt of such materials to
the
extent required by applicable law and such documents will remain in the Mortgage
File.
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(bb) No
Mortgage Loan has an LTV at origination in excess of 95%. Each Mortgage Loan
with an LTV at origination in excess of 80% will be subject to a Primary
Mortgage Insurance Policy, issued by an insurer acceptable to Xxxxxx Mae or
Xxxxxxx Mac at the time of origination, which insures that portion of the
Mortgage Loan in excess of the portion of the Appraised Value of the Mortgaged
Property as required by Xxxxxx Mae. All provisions of such Primary Mortgage
Insurance Policy have been and are being complied with, such policy is in full
force and effect, and all premiums due thereunder have been paid. Any Mortgage
subject to any such Primary Mortgage Insurance Policy obligates the Mortgagor
thereunder to maintain such insurance and to pay all premiums and charges in
connection therewith at least until the LTV of such Mortgage Loan is reduced
to
less than 80%. The Mortgage Interest Rate for the Mortgage Loan does not include
any such insurance premium. No Mortgage Loan requires payment of such premiums,
in whole or in part, by the Purchaser.
(cc) The
Mortgaged Property is lawfully occupied under applicable law, all inspections,
licenses and certificates required to be made or issued with respect to all
occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy,
have been made or obtained from the appropriate authorities and no improvement
located on or part of the Mortgaged Property is in violation of any zoning
law
or regulation.
(dd) The
Assignment of Mortgage is in recordable form and is acceptable for recording
under the laws of the jurisdiction in which the Mortgaged Property is
located.
(ee) All
payments required to be made prior to the related Cut-off Date for such Mortgage
Loan under the terms of the Mortgage Note have been made, the Mortgage Loan
has
not been dishonored, there are no material defaults under the terms of the
Mortgage Loan and no Mortgage Loan has been more than thirty (30) days
delinquent more than once in the twelve month period immediately prior to the
related Cut-off Date.
(ff) None
of
the Seller, the Servicer or any prior originator or servicer has advanced funds,
or induced, solicited or knowingly received any advance from any party other
than the Mortgagor, directly or indirectly, for the payment of any amount due
under the Mortgage Loan.
(gg) With
respect to each Mortgage Loan, RWT Holdings is in possession of a complete
Mortgage File except for the documents which have been delivered to the
Purchaser or which have been submitted for recording and not yet returned.
(hh) Immediately
prior to the payment of the related Purchase Price, the Seller was the sole
owner and holder of the Mortgage Loans and the indebtedness evidenced by the
Mortgage Note. The Mortgage Loans, including the Mortgage Note and the Mortgage,
were not assigned or pledged by the Seller and the Seller had good and
marketable title thereto, and the Seller had full right to transfer and sell
the
Mortgage Loans to the Purchaser free and clear of any encumbrance, participation
interest, lien, equity, pledge, claim or security interest and had full right
and authority subject to no interest or participation in, or agreement with
any
other party to sell or otherwise transfer the Mortgage Loans. Following the
sale
of the Mortgage Loans, the Purchaser will own such Mortgage Loan free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim
or security interest. Seller intends to relinquish all rights to monitor,
possess and control the Mortgage Loan except in connection with the servicing
of
the Mortgage Loan by the Servicer as set forth in the Bank of America-RWT
Agreement. After the related Closing Date, neither the Seller nor the Servicer
will have any right to modify or alter the terms of the sale of the Mortgage
Loans and neither the Seller nor the Servicer will have any obligation or right
to repurchase the Mortgage Loans, except as provided in the Bank of America-RWT
Agreement or as otherwise agreed to by the Seller, the Servicer and the
Purchaser.
(ii) Any
future advances made prior to the related Cut-off Date have been consolidated
with the outstanding principal amount secured by the Mortgage, and the secured
principal amount, as consolidated, bears a single interest rate and single
repayment term. The lien of the Mortgage securing the consolidated principal
amount is expressly insured as having first lien priority by a title insurance
policy, an endorsement to the policy insuring the mortgagee’s consolidated
interest or by other title evidence acceptable to Xxxxxx Xxx and Xxxxxxx Mac.
The consolidated principal amount does not exceed the original principal amount
of the Mortgage Loan.
77
(jj) The
Mortgage Loan was underwritten in accordance with the Seller's Underwriting
Guidelines in effect at the time of origination with exceptions thereto
exercised in a reasonable manner.
(kk) The
Mortgaged Property is located in the state identified in the related Mortgage
Loan Schedule and consists of a parcel of real property with a detached single
family residence erected thereon, or a two- to four-family dwelling, or an
individual condominium unit, or an individual unit in a planned unit
development; provided,
however, that
any
condominium project or planned unit development generally conforms with the
Underwriting Guidelines regarding such dwellings, and no residence or dwelling
is a mobile home, manufactured dwelling or cooperative.
(ll) If
the
Mortgaged Property is a condominium unit or a planned unit development (other
than a de
minimis planned
unit development) such condominium or planned unit development project meets
Xxxxxx Xxx or Xxxxxxx Mac eligibility requirements for sale to Xxxxxx Mae or
Xxxxxxx Mac, as the case may be, or is located in a condominium or planned
unit
development project which has received Xxxxxx Mae or Xxxxxxx Mac project
approval or as to which Xxxxxx Mae’s and Xxxxxxx Mac’s eligibility requirements
have been waived.
(mm) There
were no adverse selection procedures used in selecting the Mortgage Loan from
among the outstanding first-lien, residential mortgage loans owned by it which
were available for inclusion in the Mortgage Loans.
(nn) Each
Mortgage Loan is a “qualified mortgage” within Section 860G(a)(3) of the
Code.
(oo) With
respect to each Mortgage where a lost note affidavit has been delivered in
place
of the related Mortgage Note, the related Mortgage Note is no longer in
existence. Each such lost note affidavit is substantially in the form attached
hereto as Exhibit 4.
(pp) No
fraud,
error, omission, misrepresentation, negligence or similar occurrence with
respect to the Mortgage Loan has taken place on the part of the Seller, the
Servicer or any originator or servicer or the Mortgagor or on the part of any
other party involved in the origination of the Mortgage Loan.
(qq) The
origination practices used by the Seller and the collection and servicing
practices used by the Servicer with respect to each Mortgage Loan have been
in
all respects legal, proper, prudent and customary in the mortgage origination
and servicing industry and the collection and servicing practices used by the
Servicer have been acceptable to Xxxxxx Mae and Xxxxxxx Mac.
(rr) The
Mortgagor is not in bankruptcy and is not insolvent and RWT Holdings has no
knowledge of any circumstances or condition with respect to the Mortgage, the
Mortgaged Property, the Mortgagor or the Mortgagor’s credit standing that could
reasonably be expected to cause investors to regard the Mortgage Loan as an
unacceptable investment, cause the Mortgage Loan to become delinquent or
materially adversely affect the value or the marketability of the Mortgage
Loan.
(ss) The
Mortgagor has not notified RWT Holdings, and RWT Holdings has no knowledge
of
any relief requested by the Mortgagor under the Soldiers’ and Sailors’ Civil
Relief Act of 1940.
(tt) No
Mortgage Loan was made in connection with (i) the construction or rehabilitation
of a Mortgaged Property or (ii) facilitating the trade-in or exchange of a
Mortgaged Property.
78
(uu) There
is
no pending action or proceeding directly involving any Mortgaged Property of
which RWT Holdings is aware in which compliance with any environmental law,
rule
or regulation is an issue and nothing further remains to be done to satisfy
in
full all requirements of each such law, rule or regulation constituting a
prerequisite to use and enjoyment of said property.
(vv) No
action, inaction, or event has occurred and no state of affairs exists or has
existed that has resulted or will result in the exclusion from, denial of,
or
defense to coverage under any applicable special hazard insurance policy,
Primary Mortgage Insurance Policy or bankruptcy bond, irrespective of the cause
of such failure of coverage. In connection with the placement of any such
insurance, no commission, fee, or other compensation has been or will be
received by the Seller or the Servicer or any designee of the Seller or the
Servicer or any corporation in which the Seller, the Servicer or any officer,
director, or employee of the Seller or the Servicer had a financial interest
at
the time of placement of such insurance.
(ww) With
respect to any ground lease to which a Mortgaged Property may be subject: (A)
the Mortgagor is the owner of a valid and subsisting leasehold interest under
such ground lease; (B) such ground lease is in full force and effect, unmodified
and not supplemented by any writing or otherwise; (C) all rent, additional
rent
and other charges reserved therein have been fully paid to the extent payable
as
of the related Closing Date; (D) the Mortgagor enjoys the quiet and peaceful
possession of the leasehold estate; (E) the Mortgagor is not in default under
any of the terms of such ground lease, and there are no circumstances which,
with the passage of time or the giving of notice, or both, would result in
a
default under such ground lease; (F) the lessor under such ground lease is
not
in default under any of the terms or provisions of such ground lease on the
part
of the lessor to be observed or performed; (G) the lessor under such ground
lease has satisfied any repair or construction obligations due as of the related
Closing Date pursuant to the terms of such ground lease; (H) the execution,
delivery and performance of the Mortgage do not require the consent (other
than
those consents which have been obtained and are in full force and effect) under,
and will not contravene any provision of or cause a default under, such ground
lease; and (I) the term of such lease does not terminate earlier than the
maturity date of the Mortgage Note.
(xx) With
respect to escrow deposits and payments that the Servicer is entitled to
collect, all such payments are in the possession of, or under the control of
the
Servicer, and there exist no deficiencies in connection therewith for which
customary arrangements for repayment thereof have not been made. All escrow
payments have been collected in full compliance with state and federal law
and
the provisions of the related Mortgage Note and Mortgage. As to any Mortgage
Loan that is the subject of an escrow, escrow of funds is not prohibited by
applicable law and has been established in an amount sufficient to pay for
every
escrowed item that remains unpaid and has been assessed but is not yet due
and
payable. No escrow deposits or other charges or payments due under the Mortgage
Note have been capitalized under any Mortgage or the related Mortgage
Note.
(yy)
No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act.
(zz) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws.
(aaa) None
of
the Mortgage Loans are High Cost as defined by the applicable predatory and
abusive lending laws and no mortgage loan is a “high cost” or “covered” mortgage
loan, as applicable (as such terms are defined in the then current Standard
and
Poor’s LEVELS Glossary which is now Version 6.0, Appendix E).
79
(bbb) No
Mortgage Loan which is secured by property located in the State of New Jersey
is
a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which
became effective November 27, 2003.
(ccc) No
Mortgage Loan which is secured by property located in the State of New Mexico
is
a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
which became effective January 1, 2004.
(ddd)
No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003.
(eee)
No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004.
(fff)
No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.).
(ggg) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005.
(hhh) None
of
the proceeds of any Mortgage Loan were used to finance the purchase of single
premium credit insurance policies.
(iii) No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination.
80
XII.
|
With
respect to Mortgage Loans purchased under the Master Mortgage Loan
Purchase and Servicing Agreement, dated as of July 1, 2006 by and
between
Redwood Trust, Inc. and First Republic Bank (the "Redwood-First Republic
Agreement")
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the Redwood-First
Republic Agreement.
(i) The
information set forth in the related Mortgage Loan Schedule is complete, true
and correct and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(ii) The
Mortgage Loan is in compliance with all requirements set forth in the related
Confirmation, and the characteristics of the related Mortgage Loan Package
as
set forth in the related Confirmation are true and correct; provided, however,
that in the event of any conflict between the terms of any Confirmation and
the
Redwood-First Republic Agreement, the terms of the Redwood-First Republic
Agreement shall control;
81
(iii) All
payments required to be made up to the close of business on the Closing Date
for
such Mortgage Loan under the terms of the Mortgage Note have been made; RWT
has
not advanced funds, or induced, solicited or knowingly received any advance
of
funds from a party other than the owner of the related Mortgaged Property,
directly or indirectly, for the payment of any amount required by the Mortgage
Note or Mortgage; no Mortgage Loan is thirty (30) or more days delinquent as
of
the Closing Date and there has been no delinquency, exclusive of any period
of
grace, in any payment by the Mortgagor thereunder during the last twelve months;
and, if the Mortgage Loan is a Cooperative Loan, no foreclosure action or
private or public sale under the Uniform Commercial Code has ever been
threatened or commenced with respect to the Cooperative Loan;
(iv) There
are
no delinquent taxes, ground rents, water charges, sewer rents, assessments,
insurance premiums, leasehold payments, or other outstanding charges affecting
the related Mortgaged Property;
(v) The
terms
of the Mortgage Note and (x) with respect to each Mortgage Loan that is not
a
Cooperative Loan, the Mortgage and (y) with respect to each Cooperative Loan,
the Pledge Agreement, the Proprietary Lease, and the Pledge Instruments, have
not been impaired, waived, altered or modified in any respect, except by written
instruments, recorded in the applicable public recording office if necessary
to
maintain the lien priority of the Mortgage, and which have been delivered to
the
Custodian; the substance of any such waiver, alteration or modification has
been
approved by the insurer under the Primary Insurance Policy, if any, and has
been
approved by the title insurer, to the extent required by the related policy,
and
is reflected on the related Mortgage Loan Schedule. No instrument of waiver,
alteration or modification has been executed, and no Mortgagor has been
released, in whole or in part, except in connection with an assumption agreement
approved by the insurer under the Primary Insurance Policy, if any, and by
the
title insurer, to the extent required by the policy, and which assumption
agreement has been delivered to the Custodian and the terms of which are
reflected in the related Mortgage Loan Schedule; the Financing Statements with
respect to each Cooperative Loan are in full force and effect;
(vi) The
Mortgage Note and with respect to each Mortgage Loan which is not a Cooperative
Loan, the Mortgage and, with respect to each Cooperative Loan, the Pledge
Agreement are not subject to any right of rescission, set-off, counterclaim
or
defense, including the defense of usury, nor will the operation of any of the
terms of the Mortgage Note and the Mortgage, or the exercise of any right
thereunder, render the Mortgage unenforceable, in whole or in part, or subject
to any right of rescission, set-off, counterclaim or defense, including the
defense of usury and no such right of rescission, set-off, counterclaim or
defense has been asserted with respect thereto. Each Prepayment Charge or
penalty with respect to any Mortgage Loan is permissible, enforceable and
collectible under applicable federal, state and local law;
(vii) All
buildings upon the Mortgaged Property and with respect to any Cooperative Loan,
the related Project are insured by a Qualified Insurer acceptable to Xxxxxx
Xxx
and Xxxxxxx
Mac
against
loss by fire, hazards of extended coverage and such other hazards as are
customary in the area where the Mortgaged Property is located, pursuant to
insurance policies conforming to the requirements of the Servicing Addendum.
All
such insurance policies contain a standard mortgagee clause naming the Seller,
its successors and assigns as mortgagee and all premiums thereon have been
paid.
If the Mortgaged Property is in an area identified on a Flood Hazard Map or
Flood Insurance Rate Map issued by the Federal Emergency Management Agency
as
having special flood hazards (and such flood insurance has been made available)
a flood insurance policy meeting the requirements of the current guidelines
of
the Federal Insurance Administration is in effect which policy conforms to
the
requirements of Xxxxxx Mae and Xxxxxxx
Mac.
The
Mortgage obligates the Mortgagor thereunder to maintain all such insurance
at
the Mortgagor's cost and expense, and on the Mortgagor's failure to do so,
authorizes the holder of the Mortgage to maintain such insurance at Mortgagor's
cost and expense and to seek reimbursement therefor from the
Mortgagor;
(viii) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth in lending, real estate settlement procedures,
predatory and abusive lending, consumer credit protection, equal credit
opportunity, fair housing or disclosure laws applicable to the origination
and
servicing of mortgage loans of a type similar to the Mortgage Loans at
origination have been complied with;
82
(ix) The
Mortgage has not been satisfied, cancelled, subordinated or rescinded, in whole
or in part, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part, nor has any instrument been executed that
would effect any such satisfaction, cancellation, subordination, rescission
or
release;
(x) The
Mortgage is a valid, existing and enforceable (A) first lien and first priority
security interest with respect to each Mortgage Loan which is indicated by
RWT
to be a first lien (as reflected on the Mortgage Loan Schedule), or (B) second
lien and second priority security interest with respect to each Mortgage Loan
which is indicated by RWT to be a second lien (as reflected on the Mortgage
Loan
Schedule), in either case, on the Mortgaged Property, including all improvements
on the Mortgaged Property, and with respect to Cooperative Loans, including
the
Proprietary Lease and the Cooperative Shares, subject only to (a) the lien
of
current real property taxes and assessments not yet due and payable, (b)
covenants, conditions and restrictions, rights of way, easements and other
matters of the public record as of the date of recording being acceptable to
mortgage lending institutions generally and specifically referred to in the
lender's title insurance policy delivered to the originator of the Mortgage
Loan
and which do not adversely affect the Appraised Value of the Mortgaged Property,
(c) with respect to each Mortgage Loan which is indicated by RWT to be a second
lien Mortgage Loan (as reflected on the Mortgage Loan Schedule) a first lien
on
the Mortgaged Property; and (d) other matters to which like properties are
commonly subject which do not materially interfere with the benefits of the
security intended to be provided by the Mortgage or the use, enjoyment, value
or
marketability of the related Mortgaged Property. Any security agreement, chattel
mortgage or equivalent document related to and delivered in connection with
the
Mortgage Loan establishes and creates a valid, existing and enforceable first
or
second lien and first or second priority security interest (in each case, as
indicated on the Mortgage Loan Schedule) on the property described therein
and
RWT has full right to sell and assign the same to the Purchaser. The Mortgaged
Property was not, as of the date of origination of the Mortgage Loan, subject
to
a mortgage, deed of trust, deed to secure debt or other security instrument
creating a lien subordinate to the lien of the Mortgage;
(xi) The
Mortgage Note and (x) with respect to each Mortgage Loan, the related Mortgage
and (y) with respect to each Cooperative Loan, the Pledge Agreement are genuine
and each is the legal, valid and binding obligation of the maker thereof,
enforceable in accordance with its terms;
(xii) All
parties to the Mortgage Note and (x) with respect to each Mortgage Loan, the
related Mortgage and (y) with respect to each Cooperative Loan, the Pledge
Agreement had legal capacity to enter into the Mortgage Loan and to execute
and
deliver the Mortgage Note and the Mortgage or Pledge Agreement, and the Mortgage
Note and the Mortgage or Pledge Agreement have been duly and properly executed
by such parties;
(xiii) The
proceeds of the Mortgage Loan have been fully disbursed to or for the account
of
the Mortgagor and there is no obligation for the Mortgagee to advance additional
funds thereunder and any and all requirements as to completion of any on-site
or
off-site improvement and as to disbursements of any escrow funds therefor have
been complied with. All costs, fees and expenses incurred in making or closing
the Mortgage Loan and the recording of the Mortgage have been paid, and the
Mortgagor is not entitled to any refund of any amounts paid or due to the
Mortgagee pursuant to the Mortgage Note or Mortgage;
(xiv) RWT
is
the sole legal, beneficial and equitable owner of the Mortgage Note and with
respect to any Mortgage Loan which is not a Cooperative Loan, the Mortgage
and
with respect to any Mortgage Loan which is a Cooperative, the Pledge Agreement,
and has full right to transfer and sell the Mortgage Loan to the Purchaser
free
and clear of any encumbrance, equity, lien, pledge, charge, claim or security
interest;
(xv) All
parties which have had any interest in the Mortgage Loan, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) in compliance with any and all applicable
“doing business” and licensing requirements of the laws of the state wherein the
Mortgaged Property is located;
(xvi) The
Mortgage Loan is covered by an American Land Title Association (“ALTA”) lender’s
title insurance policy (which, in the case of an Adjustable Rate Mortgage Loan
has an adjustable rate mortgage endorsement in the form of ALTA 6.0 or 6.1)
acceptable to Xxxxxx Xxx and Xxxxxxx
Mac,
issued
by a title insurer acceptable to Xxxxxx Mae and Xxxxxxx
Mac
and
qualified to do business in the jurisdiction where the Mortgaged Property is
located, insuring (subject to the exceptions contained in (x)(a) and (b), and
with respect to any second lien Mortgage Loan (c), above) the Seller, its
successors and assigns as to the first or second priority lien (as indicated
on
the Mortgage Loan Schedule) of the Mortgage in the original principal amount
of
the Mortgage Loan and, with respect to any Adjustable Rate Mortgage Loan,
against any loss by reason of the invalidity or unenforceability of the lien
resulting from the provisions of the Mortgage providing for adjustment in the
Mortgage Interest Rate and Monthly Payment provisions of the Mortgage Note.
Additionally, such lender's title insurance policy affirmatively insures ingress
and egress to and from the Mortgaged Property, and against encroachments by
or
upon the Mortgaged Property or any interest therein. The Seller is the sole
insured of such lender's title insurance policy, and such lender’s title
insurance policy is in full force and effect and will be in full force and
effect upon the consummation of the transactions contemplated by the
Redwood-First Republic Agreement. No claims have been made under such lender's
title insurance policy, and no prior holder of the related Mortgage, including
RWT, has done, by act or omission, anything which would impair the coverage
of
such lender's title insurance policy;
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(xvii) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the Mortgage Note and no event which, with the passage of time
or
with notice and the expiration of any grace or cure period, would constitute
a
default, breach, violation or event of acceleration, and RWT has not waived
any
default, breach, violation or event of acceleration. With respect to each second
lien Mortgage Loan (i) the first lien mortgage loan is in full force and effect,
(ii) there is no default, breach, violation or event of acceleration existing
under such first lien mortgage or the related mortgage note, (iii) no event
which, with the passage of time or with notice and the expiration of any grace
or cure period, would constitute a default, breach, violation or event of
acceleration thereunder, (iv) either (A) the first lien mortgage contains a
provision which allows or (B) applicable law requires, the mortgagee under
the
second lien Mortgage Loan to receive notice of, and affords such mortgagee
an
opportunity to cure any default by payment in full or otherwise under the first
lien mortgage, (v) the related first lien does not provide for or permit
negative amortization under such first lien Mortgage Loan, and (vi) either
no
consent for the Mortgage Loan is required by the holder of the first lien or
such consent has been obtained and is contained in the Mortgage
File;
(xviii) There
are
no mechanics' or similar liens or claims which have been filed for work, labor
or material (and no rights are outstanding that under law could give rise to
such lien) affecting the related Mortgaged Property which are or may be liens
prior to, or equal or coordinate with, the lien of the related
Mortgage;
(xix) All
improvements which were considered in determining the Appraised Value of the
related Mortgaged Property lay wholly within the boundaries and building
restriction lines of the Mortgaged Property, and no improvements on adjoining
properties encroach upon the Mortgaged Property, except for non-conforming
improvements that do not materially adversely affect the Appraised
Value;
(xx) The
Mortgage Loan was originated by a savings and loan association, a savings bank,
a commercial bank or similar banking institution which is supervised and
examined by a federal or state authority, or by a mortgagee approved as such
by
the Secretary of HUD;
(xxi) Principal
payments on the Mortgage Loan commenced no more than sixty (60) days after
the
proceeds of the Mortgage Loan were disbursed. The Mortgage Loan bears interest
at the Mortgage Interest Rate. With respect to each Mortgage Loan, the Mortgage
Note is payable on the first day of each month in Monthly Payments, which,
in
the case of a Fixed Rate Mortgage Loan, are sufficient to fully amortize the
original principal balance over the original term thereof (other than with
respect to a Mortgage Loan identified on the related Mortgage Loan Schedule
as
an interest-only Mortgage Loan during the interest-only period) and to pay
interest at the related Mortgage Interest Rate, and, in the case of an
Adjustable Rate Mortgage Loan, are changed on each Adjustment Date, and in
any
case, are sufficient to fully amortize the original principal balance over
the
original term thereof (other than with respect to a Mortgage Loan identified
on
the related Mortgage Loan Schedule as an interest-only Mortgage Loan during
the
interest-only period) and to pay interest at the related Mortgage Interest
Rate.
With respect to each Mortgage Loan identified on the Mortgage Loan Schedule
as
an interest-only Mortgage Loan, the interest-only period shall not exceed ten
(10) years (or such other period specified on the Mortgage Loan Schedule) and
following the expiration of such interest-only period, the remaining Monthly
Payments shall be sufficient to fully amortize the original principal balance
over the remaining term of the Mortgage Loan and to pay interest at the related
Mortgage Interest Rate. No Mortgage Loan has a term greater than thirty (30)
years. The Index for each Adjustable Rate Mortgage Loan is as set forth on
the
Mortgage Loan Schedule. No Mortgage Loan is a Convertible Mortgage Loan or
a
Balloon Mortgage Loan. No Mortgage Loan provides for negative
amortization;
84
(xxii) The
origination, servicing and collection practices used with respect to each
Mortgage Note and Mortgage including, without limitation, the establishment,
maintenance and servicing of the Escrow Accounts and Escrow Payments, if any,
since origination, have been in all respects legal, proper, prudent and
customary in the mortgage origination and servicing industry. The Mortgage
Loan
has been serviced by the Seller and any predecessor servicer in accordance
with
the terms of the Mortgage Note and Accepted Servicing Practices. With respect
to
escrow deposits and Escrow Payments, if any, all such payments are in the
possession of, or under the control of, the Seller and there exist no
deficiencies in connection therewith for which customary arrangements for
repayment thereof have not been made. No escrow deposits or Escrow Payments
or
other charges or payments due the Seller have been capitalized under any
Mortgage or the related Mortgage Note and no such escrow deposits or Escrow
Payments are being held by the Seller for any work on a Mortgaged Property
which
has not been completed;
(xxiii) The
Mortgaged Property (and with respect to any Cooperative Loan, the Cooperative
Unit and related Project) is free of damage and waste and there is no proceeding
pending for the total or partial condemnation thereof;
(xxiv) The
Mortgage and related Mortgage Note contain customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (a) in the case of a Mortgage designated as a
deed
of trust, by trustee's sale, and (b) otherwise by judicial foreclosure. The
Mortgaged Property has not been subject to any bankruptcy proceeding or
foreclosure proceeding and the Mortgagor has not filed for protection under
applicable bankruptcy laws. There is no homestead or other exemption available
to the Mortgagor which would interfere with the right to sell the Mortgaged
Property at a trustee's sale or the right to foreclose the Mortgage. The
Mortgagor has not notified RWT and RWT has no knowledge of any relief requested
or allowed to the Mortgagor under the Servicemembers’ Civil Relief
Act;
(xxv) The
Mortgage Loan was underwritten in accordance with the Underwriting Guidelines
in
effect at the time the Mortgage Loan was originated and the Mortgage Note and
Mortgage are on forms acceptable to Xxxxxx Xxx and Xxxxxxx
Mac or to secondary investors generally;
(xxvi) The
Mortgage Note is not and has not been secured by any collateral except the
lien
of the corresponding Mortgage on the Mortgaged Property and the security
interest of any applicable security agreement or chattel mortgage referred
to in
(x) above;
(xxvii) The
Mortgage File contains an appraisal of the related Mortgaged Property which
satisfied the standards of Xxxxxx Mae and Xxxxxxx
Mac,
was on
appraisal form 1004 or form 2055 with an interior inspection and was made and
signed, prior to the approval of the Mortgage Loan application, by a qualified
appraiser, duly appointed by the Seller, who had no interest, direct or indirect
in the Mortgaged Property or in any loan made on the security thereof, whose
compensation is not affected by the approval or disapproval of the Mortgage
Loan
and who met the minimum qualifications of Xxxxxx Mae and Xxxxxxx
Mac.
Each
appraisal of the Mortgage Loan was made in accordance with the relevant
provisions of the Financial Institutions Reform, Recovery, and Enforcement
Act
of 1989;
(xxviii) In
the
event the Mortgage constitutes a deed of trust, a trustee, duly qualified under
applicable law to serve as such, has been properly designated and currently
so
serves and is named in the Mortgage, and no fees or expenses are or will become
payable by the Purchaser to the trustee under the deed of trust, except in
connection with a trustee's sale after default by the Mortgagor;
85
(xxix) No
Mortgage Loan contains provisions pursuant to which Monthly Payments are (a)
paid or partially paid with funds deposited in any separate account established
by the Seller, the Mortgagor, or anyone on behalf of the Mortgagor, (b) paid
by
any source other than the Mortgagor or (c) contains any other similar provisions
which may constitute a “buydown” provision. The Mortgage Loan is not a graduated
payment mortgage loan and the Mortgage Loan does not have a shared appreciation
or other contingent interest feature;
(xxx) The
Mortgagor has executed a statement to the effect that the Mortgagor has received
all disclosure materials required by applicable law with respect to the making
of fixed rate mortgage loans in the case of Fixed Rate Mortgage Loans, and
adjustable rate mortgage loans in the case of Adjustable Rate Mortgage Loans
and
rescission materials with respect to Refinanced Mortgage Loans, and such
statement is and will remain in the Mortgage File;
(xxxi) RWT
has
no knowledge of any circumstances or condition with respect to the Mortgage,
the
Mortgaged Property, the Mortgagor or the Mortgagor's credit standing that can
reasonably be expected to cause the Mortgage Loan to be an unacceptable
investment, or adversely affect the value of the Mortgage Loan;
(xxxii) No
Mortgage Loan had an LTV or a CLTV at origination in excess of 95%. Each
Mortgage Loan with an LTV at origination in excess of 80% is and will be subject
to a Primary Insurance Policy, issued by a Qualified Insurer, which insures
that
portion of the Mortgage Loan in excess of the portion of the Appraised Value
of
the Mortgaged Property as required by Xxxxxx Mae. All provisions of such Primary
Insurance Policy have been and are being complied with, such policy is in full
force and effect, and all premiums due thereunder have been paid. Any Mortgage
subject to any such Primary Insurance Policy obligates the Mortgagor thereunder
to maintain such insurance and to pay all premiums and charges in connection
therewith. The Mortgage Interest Rate for the Mortgage Loan does not include
any
such insurance premium. No Mortgage Loan is subject to a lender paid primary
mortgage insurance policy;
(xxxiii) The
Mortgaged Property is lawfully occupied under applicable law; all inspections,
licenses and certificates required to be made or issued with respect to all
occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy,
have been made or obtained from the appropriate authorities;
(xxxiv) No
error,
omission, misrepresentation, negligence, fraud or similar occurrence with
respect to a Mortgage Loan has taken place on the part of any person, including
without limitation the Mortgagor, any appraiser, any builder or developer,
or
any other party involved in the origination of the Mortgage Loan or in the
application of any insurance in relation to such Mortgage Loan;
(xxxv) The
Assignment of Mortgage is in recordable form, except for the name of the
assignee which is blank, and is acceptable for recording under the laws of
the
jurisdiction in which the Mortgaged Property is located;
(xxxvi) Any
principal advances made to the Mortgagor prior to the Cut-off Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having first or second (as indicated
on
the Mortgage Loan Schedule) lien priority by a title insurance policy, an
endorsement to the policy insuring the mortgagee's consolidated interest or
by
other title evidence acceptable to Xxxxxx Xxx and Xxxxxxx
Mac.
The
consolidated principal amount does not exceed the original principal amount
of
the Mortgage Loan;
(xxxvii) If
the
Residential Dwelling on the Mortgaged Property is a condominium unit or a unit
in a planned unit development (other than a de minimis planned unit development)
such condominium or planned unit development project meets the eligibility
requirements of Xxxxxx Mae and Xxxxxxx
Mac;
(xxxviii) Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
86
(xxxix) The
Mortgaged Property is in material compliance with all applicable environmental
laws pertaining to environmental hazards including, without limitation,
asbestos, and neither RWT nor, to RWT’s knowledge, the related Mortgagor, has
received any notice of any violation or potential violation of such
law;
(xl) The
Seller shall, at its own expense, cause each Mortgage Loan to be covered by
a
Tax Service Contract which is assignable to the Purchaser or its
designee;
(xli) Each
Mortgage Loan is covered by a Flood Zone Service Contract which is assignable
to
the Purchaser or its designee or, for each Mortgage Loan not covered by such
Flood Zone Service Contract, the Seller agrees to purchase such Flood Zone
Service Contract;
(xlii) No
Mortgage Loan is (a)(1) subject to the provisions of the Homeownership and
Equity Protection Act of 1994 as amended (“HOEPA”) or (2) has an APR or total
points and fees that are equal to or exceeds the HOEPA thresholds (as defined
in
12 CFR 226.32 (a)(1)(i) and (ii)), (b) a “high cost” mortgage loan, “covered”
mortgage loan, “high risk home” mortgage loan, or “predatory” mortgage loan or
any other comparable term, no matter how defined under any federal, state or
local law, (c) subject to any comparable federal, state or local statutes or
regulations, or any other statute or regulation providing for heightened
regulatory scrutiny or assignee liability to holders of such mortgage loans,
or
(d) a High Cost Loan or Covered Loan, as applicable (as such terms are defined
in the current Standard & Poor’s LEVELS® Glossary Revised, Appendix
E);
(xliii) No
predatory, abusive, or deceptive lending practices, including but not limited
to, the extension of credit to a Mortgagor without regard for the Mortgagor’s
ability to repay the Mortgage Loan and the extension of credit to a Mortgagor
which has no apparent benefit to the Mortgagor, were employed in connection with
the origination of the Mortgage Loan. Each Mortgage Loan is in compliance with
the anti-predatory lending eligibility for purchase requirements of the Xxxxxx
Mae Guides;
(xliv) No
Mortgagor was required to purchase any credit insurance product (e.g., life,
mortgage, disability, accident, unemployment or health insurance product) or
debt cancellation agreement as a condition of obtaining the extension of credit.
No Mortgagor obtained a prepaid single premium credit insurance policy (e.g.,
life, mortgage, disability, accident, unemployment or health insurance product)
or debt cancellation agreement in connection with the origination of the
Mortgage Loan. No proceeds from any Mortgage Loan were used to purchase single
premium credit insurance policies or debt cancellation agreements as part of
the
origination of, or as a condition to closing, such Mortgage Loan;
(xlv) The
Mortgage Loans were not selected from the outstanding one- to four-family
mortgage loans in the Seller’s portfolio as to which the representations and
warranties set forth in the Redwood-First Republic Agreement could be made
at
the related Closing Date in a manner so as to affect adversely the interests
of
the Purchaser;
(xlvi) The
Mortgage contains an enforceable provision for the acceleration of the payment
of the unpaid principal balance of the Mortgage Loan in the event that the
Mortgaged Property is sold or transferred without the prior written consent
of
the mortgagee thereunder;
(xlvii) Reserved.
(xlviii) The
Mortgage Loan was not prepaid in full prior to the Closing Date and RWT has
not
received notification from a Mortgagor that a prepayment in full shall be made
after the Closing Date;
(xlix) No
Mortgage Loan is secured by commercial property or mixed use
property;
(l) Each
Mortgage Loan is eligible for sale in the secondary market or for inclusion
in a
Securitization Transaction without unreasonable credit enhancement;
(li) Except
as
set forth on the related Mortgage Loan Schedule, none of the Mortgage Loans
are
subject to a Prepayment Charge. For any Mortgage Loan originated prior to
October 1, 2002 that is subject to a Prepayment Charge, such Prepayment Charge
does not extend beyond five (5) years after the date of origination. Except
as
otherwise set forth on the related Mortgage Loan Schedule, for any Mortgage
Loan
originated on or following October 1, 2002 that is subject to a Prepayment
Charge, such Prepayment Charge does not extend beyond three (3) years after
the
date of origination. With respect to any Mortgage Loan that contains a provision
permitting imposition of a premium upon a prepayment prior to maturity: (i)
prior to the Mortgage Loan's origination, the Mortgagor agreed to such premium
in exchange for a monetary benefit, including but not limited to a rate or
fee
reduction, (ii) prior to the Mortgage Loan's origination, the Mortgagor was
offered the option of obtaining a Mortgage Loan that did not require payment
of
such a premium, (iii) the prepayment premium is disclosed to the Mortgagor
in
the loan documents pursuant to applicable state and federal law, and (iv)
notwithstanding any state or federal law to the contrary, the Seller shall
not
impose such Prepayment Charge in any instance when the mortgage loan is
accelerated or paid off in connection with the workout of a delinquent Mortgage
Loan or as the result of the Mortgagor's default in making the loan
payments;
87
(lii) RWT
has
complied with all applicable anti-money laundering laws and regulations,
including without limitation the USA Patriot Act of 2001 (collectively, the
“Anti-Money Laundering Laws”); RWT has established an anti-money laundering
compliance program as required by the Anti-Money Laundering Laws, has conducted
the requisite due diligence in connection with the origination of each Mortgage
Loan for purposes of the Anti-Money Laundering Laws, including with respect
to
the legitimacy of the applicable Mortgagor and the origin of the assets used
by
the said Mortgagor to purchase the Mortgaged Property, and maintains, and will
maintain, sufficient information to identify the applicable Mortgagor for
purposes of the Anti-Money Laundering Laws. No Mortgage Loan is subject to
nullification pursuant to Executive Order 13224 (the “Executive Order”) or the
regulations promulgated by the Office of Foreign Assets Control of the United
States Department of the Treasury (the “OFAC Regulations”) or in violation of
the Executive Order or the OFAC Regulations, and no Mortgagor is subject to
the
provisions of such Executive Order or the OFAC Regulations nor listed as a
“blocked person” for purposes of the OFAC Regulations;
(liii) No
Mortgagor was encouraged or required to select a Mortgage Loan product offered
by the Mortgage Loan's originator which is a higher cost product designed for
less creditworthy borrowers, unless at the time of the Mortgage Loan's
origination, such Mortgagor did not qualify taking into account credit history
and debt to income ratios for a lower cost credit product then offered by the
Mortgage Loan's originator or any affiliate of the Mortgage Loan's originator.
If, at the time of loan application, the Mortgagor may have qualified for a
for
a lower cost credit product then offered by any mortgage lending affiliate
of
the Mortgage Loan's originator, the Mortgage Loan's originator referred the
Mortgagor's application to such affiliate for underwriting consideration. With
respect to any Mortgage Loan, the Mortgagor was assigned the highest credit
grade available with respect to a mortgage loan product offered by such Mortgage
Loan’s originator, based on a comprehensive assessment of risk factors,
including the Mortgagor’s credit history;
(liv) Reserved;
(lv) All
points and fees related to each Mortgage Loan were disclosed in writing to
the
related Borrower in accordance with applicable state and federal laws and
regulations. No related Borrower was charged “points and fees” (whether or not
financed) in an amount greater than (a) $1,000 or (b) 5% of the principal amount
of such loan, whichever is greater, such 5% limitation is calculated in
accordance with Xxxxxx Mae’s anti-predatory lending requirements as set forth in
the Xxxxxx Mae Guides. For purposes of this representation, “points and fees”
(a) include origination, underwriting, broker and finder’s fees and other
charges that the lender imposed as a condition of making the loan, whether
they
are paid to the lender or a third party, and (b) exclude bona fide discount
points, fees paid for actual services rendered in connection with the
origination of the mortgage (such as attorneys’ fees, notaries fees and fees
paid for property appraisals, credit reports, surveys, title examinations and
extracts, flood and tax certifications, and home inspections); the cost of
mortgage insurance or credit-risk price adjustments; the costs of title, hazard,
and flood insurance policies; state and local transfer taxes or fees; escrow
deposits for the future payment of taxes and insurance premiums; and other
miscellaneous fees and charges that, in total, do not exceed 0.25 percent of
the
loan amount. All points, fees and charges (including finance charges) and
whether or not financed, assessed, collected or to be collected in connection
with the origination and servicing of each Mortgage Loan were disclosed in
writing to the related Mortgagor in accordance with applicable state and federal
laws and regulations;
88
(lvi) With
respect to any Mortgage Loan which is secured by manufactured housing, if such
Mortgage Loans are permitted hereunder, such Mortgage Loan satisfies the
requirements for inclusion in residential mortgage backed securities
transactions rated by Standard & Poor's Ratings Services and such
manufactured housing will be the principal residence of the Mortgagor upon
the
origination of the Mortgage Loan. With respect to any second lien Mortgage
Loan,
such lien is on a one- to four-family residence that is (or will be) the
principal residence of the Mortgagor upon the origination of the second lien
Mortgage Loan;
(lvii) Each
Mortgage Loan constitutes a “qualified mortgage” under
Section 860G(a)(3)(A) of the Code and Treasury Regulation
Section 1.860G-2(a)(1);
(lviii) No
Mortgage Loan is secured by real property or secured by a manufactured home
located in the state of Georgia unless (x) such Mortgage Loan was originated
prior to October 1, 2002 or after March 6, 2003, or (y) the property securing
the Mortgage Loan is not, nor will be, occupied by the Mortgagor as the
Mortgagor’s principal dwelling. No Mortgage Loan is a “High Cost Home Loan” as
defined in the Georgia Fair Lending Act, as amended (the “Georgia Act”). Each
Mortgage Loan that is a “Home Loan” under the Georgia Act complies with all
applicable provisions of the Georgia Act. No Mortgage Loan secured by owner
occupied real property or an owner occupied manufactured home located in the
State of Georgia was originated (or modified) on or after October 1, 2002
through and including March 6, 2003;
(lix) No
Mortgage Loan is a “High-Cost” loan as defined under the New York Banking Law
Section 6-1, effective as of April 1, 2003;
(lx) No
Mortgage Loan (a) is secured by property located in the State of New York;
(b)
had an unpaid principal balance at origination of $300,000 or less, and (c)
has
an application date on or after April 1, 2003, the terms of which Mortgage
Loan
equal or exceed either the APR or the points and fees threshold for “high-cost
home loans”, as defined in Section 6-1 of the New York State Banking
Law;
(lxi) No
Mortgage Loan is a “High Cost Home Loan” as defined in the Arkansas Home Loan
Protection Act effective July 16, 2003 (Act 1340 or 2003);
(lxii) No
Mortgage Loan is a “High Cost Home Loan” as defined in the Kentucky high-cost
loan statute effective June 24, 2003 (Ky. Rev. Stat.
Section 360.100);
(lxiii) No
Mortgage Loan secured by property located in the State of Nevada is a “home
loan” as defined in the Nevada Assembly Xxxx No. 284;
(lxiv) No
Mortgage Loan is a “manufactured housing loan” or “home improvement home loan”
pursuant to the New Jersey Home Ownership Act. No Mortgage Loan is a “High-Cost
Home Loan” or a refinanced “Covered Home Loan,” in each case, as defined in the
New Jersey Home Ownership Act effective November 27, 2003 (N.J.S.A. 46;10B-22
et
seq.);
(lxv) No
Mortgage Loan is a subsection 10 mortgage under the Oklahoma Home Ownership
and
Equity protection Act;
(lxvi) No
Mortgage Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan
Protection Act effective January 1, 2004 (N.M. Stat. Xxx. §§ 58-21A-1 et
seq.);
(lxvii) No
Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk
Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et
seq.);
(lxviii) No
Loan
that is secured by property located within the State of Maine meets the
definition of a (i) “high-rate, high-fee” mortgage loan under Article VIII,
Title 9-A of the Maine Consumer Credit Code or (ii) “High-Cost Home Loan” as
defined under the Maine House Xxxx 383 X.X. 494, effective as of September
13,
2003;
(lxix) With
respect to any Loan for which a mortgage loan application was submitted by
the
Mortgagor after April 1, 2004, no such Loan secured by Mortgaged Property in
the
State of Illinois which has a Loan Interest Rate in excess of 8.0% per annum
has
lender-imposed fees (or other charges) in excess of 3.0% of the original
principal balance of the Loan;
89
(lxx) No
Mortgage Loan secured by a Mortgaged Property located in the Commonwealth of
Massachusetts and for which application was taken on or after January 14th,
2005, was made to pay off or refinance all or part of an existing home loan
that
was consummated within 60 months prior to the lender's receipt of an application
for the Mortgage Loan unless there is a "borrower's interest" worksheet or
other
document documenting that either (1) (a) the related annual percentage rate
at
consummation of the Mortgage Loan did not exceed by more than 2.5 percentage
points (for First Lien Mortgage Loans) or 3.5 percentage points (for Second
Lien
Mortgage Loans) the yield on United States Treasury securities having comparable
periods of maturity to the maturity of the related Mortgage Loan as of the
fifteenth day of the month immediately preceding the month in which the
application for the Mortgage Loan was received by the related lender, or (b)
the
Mortgage Loan otherwise meets the provisions of 209 CMR 53.04(1); or (2) such
that the Mortgage Loan is determined to be in the "borrower's interest," which
determination incorporates the factors set forth in 209 CMR 53.04(3) for
determining "borrower's interest," and otherwise complies in all material
respects with the laws of the Commonwealth of Massachusetts;
(lxxi) No
Loan
is a “High Cost Home Loan” as defined by the Indiana Home Loan Practices Act,
effective January 1, 2005 (Ind. Code Xxx. §§ 24-9-1 et seq.);
(lxxii) The
Mortgagee has not made or caused to be made any payment in the nature of an
“average” or “yield spread premium” to a mortgage broker or a like Person which
has not been fully disclosed to the Mortgagor;
(lxxiii) The
sale
or transfer of the Mortgage Loan by RWT complies with all applicable federal,
state, and local laws, rules, and regulations governing such sale or transfer,
including, without limitation, the Fair and Accurate Credit Transactions Act
(“FACT Act”) and the Fair Credit Reporting Act, each as may be amended from time
to time, and RWT has not received any actual or constructive notice of any
identity theft, fraud, or other misrepresentation in connection with such
Mortgage Loan or any party thereto;
(lxxiv) With
respect to each second lien Mortgage Loan, either no consent for the Mortgage
Loan is required by the holder of the first lien or such consent has been
obtained and is contained in the Mortgage File;
(lxxv) No
Mortgagor agreed to submit to arbitration to resolve any dispute arising out
of
or relating in any way to the Mortgage Loan transaction. No Mortgage Loan is
subject to any mandatory arbitration;
(lxxvi) With
respect to each Cooperative Loan, each Pledge Agreement creates a valid,
enforceable and subsisting first security interest in the collateral securing
the related Mortgage Note subject only to (a) the lien of the related
Cooperative for unpaid assessments representing the Mortgagor's pro rata share
of the Cooperative's payments for its blanket mortgage, current and future
real
property taxes, insurance premiums, maintenance fees and other assessments
to
which like collateral is commonly subject and (b) other matters to which like
collateral is commonly subject which do not materially interfere with the
benefits of the security intended to be provided by the Pledge Agreement;
provided, however, that the appurtenant Proprietary Lease may be subordinated
or
otherwise subject to the lien of any mortgage on the Project. There are no
liens
against or security interests in the collateral which have priority over the
lender's security interest in the collateral, and such priority interest cannot
be created in the future;
(lxxvii) With
respect to each Cooperative Loan, all parties to the Mortgage Note and the
Mortgage Loan had legal capacity to execute and deliver the Mortgage Note,
the
Pledge Agreement, the Proprietary Lease, the Stock Power, the Recognition
Agreement, the Financing Statement and the Assignment of the Proprietary Lease
and such documents have been duly and properly executed by such parties. Each
Stock Power (i) has all signatures guaranteed or (ii) if all signatures are
not
guaranteed, then such Cooperative Shares will be transferred by the stock
transfer agent of the Cooperative if the Seller undertakes to convert the
ownership of the collateral securing the related Cooperative Loan;
(lxxviii) With
respect to each Cooperative Loan, there is no default in complying with the
terms of the Mortgage Note, the Pledge Agreement and the Proprietary Lease
and
all maintenance charges and assessments (including assessments payable in the
future installments, which previously became due and owing) have been paid.
The
Seller has the right under the terms of the Mortgage Note, Pledge Agreement
and
Recognition Agreement to pay any maintenance charges or assessments owed by
the
Mortgagor;
90
(lxxix) With
respect to each Cooperative Loan, a Cooperative Lien Search has been made by
a
company competent to make the same which company is acceptable to FNMA and
qualified to do business in the jurisdiction where the Cooperative Apartment
is
located;
(lxxx) With
respect to each Cooperative Loan, each Pledge Agreement contains enforceable
provisions such as to render the rights and remedies of the holder thereof
adequate for the realization of the benefits of the security provided thereby.
The Pledge Agreement contains an enforceable provision for the acceleration
of
the payment of the unpaid principal balance of the Mortgage Note in the event
the Cooperative Apartment is transferred or sold without the consent of the
holder thereof.
(lxxxi) In
the
case of a Cooperative Loan, the related Cooperative Apartment, is lawfully
occupied under applicable law; all inspections, licenses and certificates
required to be made or issued with respect to all occupied portions of the
Cooperative Apartment and the related Project and, with respect to the use
and
occupancy of the same, including but not limited to certificates of occupancy,
have been made or obtained from the appropriate authorities;
(lxxxii) With
respect to each Cooperative Loan, (i) the terms of the related Proprietary
Lease
is longer than the terms of the Cooperative Loan, (ii) there is no provision
in
any Proprietary Lease which requires the Mortgagor to offer for sale the
Cooperative Shares owned by such Mortgagor first to the Cooperative, (iii)
there
is no prohibition in any Proprietary Lease against pledging the Cooperative
Shares or assigning the Proprietary Lease and (iv) the Recognition Agreement
is
on a form of agreement published by the Aztech Document Systems, Inc. or
includes provisions which are no less favorable to the lender than those
contained in such agreement; and
(lxxxiii) With
respect to each Cooperative Loan, each original UCC financing statement,
continuation statement or other governmental filing or recordation necessary
to
create or preserve the perfection and priority of the first priority lien and
security interest in the Cooperative Shares and Proprietary Lease has been
timely and properly made. Any security agreement, chattel mortgage or equivalent
document related to the Cooperative Loan establishes in RWT a valid and
subsisting perfected first lien on and security interest in the Mortgaged
Property described therein, and RWT has full right to sell and assign the
same.
91
XIII.
|
Mortgage
Loans purchased under the Master Mortgage Loan Purchase Agreement,
dated
as of June 1, 2006, among RWT Holdings, Inc., as Purchaser, Xxxxxxx
Xxxxx
Credit Corporation, as the Loan Seller, and Xxxxxxx Xxxxx Funding
Corporation, as the Participation Seller (the “RWT-Xxxxxxx
Agreement”)
|
With
respect to each Mortgage Loan, RWT hereby makes the following representations
and warranties. Such representations and warranties speak as of the Closing
Date
with respect to the Mortgage Loans (as such capitalized terms are defined in
the
Pooling and Servicing Agreement), unless otherwise indicated. Capitalized terms
are as defined in this Schedule A or in the RWT-Xxxxxxx
Agreement.
(i)
The
information set forth in the Mortgage Loan Schedule is true and correct in
all
material respects and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(ii)
As
of the
related Closing Date, the Mortgage Loan is not delinquent in payment more than
29 days and no payment for a Mortgage Loan has been dishonored; the Mortgage
Loan has never been delinquent in payment for more than 59 days and has not
more
than once during the twelve months preceding the Cut-Off Date been delinquent
in
payment for more than 30 days; there are no material defaults under the terms
of
the Mortgage Loan; RWT has not advanced funds, or induced, solicited or
knowingly received any advance of funds from a party other than the owner of
the
Mortgaged Property subject to the Mortgage, directly or indirectly, for the
payment of any amount required by the Mortgage Loan;
(iii)
To
the
best of RWT's knowledge, there are no delinquent taxes or other outstanding
charges affecting the related Mortgaged Property which would permit a taxing
authority to initiate foreclosure proceedings against the Mortgaged
Property;
(iv)
The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments contained in the Mortgage
File, the substance of which waiver, alteration or modification is reflected
on
the Mortgage Loan Schedule. No Mortgagor has been released, in whole or in
part,
except in connection with an assumption agreement which assumption agreement
is
part of the Mortgage File and the terms of which are reflected in the Mortgage
Loan Schedule;
(v)
The
Mortgagor has not asserted that the Mortgage Note and the Mortgage are subject
to any right of rescission, set-off, counterclaim or defense, including the
defense of usury, nor will the operation of any of the terms of the Mortgage
Note and the Mortgage, or the exercise of any right thereunder, render the
Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury
and
to the best of RWT's knowledge, no such right of rescission, set-off,
counterclaim or defense has been asserted by any Person other than the obligor
with respect thereto;
(vi)
Pursuant
to the terms of the Mortgage, all buildings or other improvements upon the
Mortgaged Property are insured by a generally acceptable insurer against loss
by
fire, hazards of extended coverage and such other hazards as are customary
in
the area where the Mortgaged Property is located. If required by the Flood
Disaster Protection Act of 1973, as amended, the Mortgage Loan is covered by
a
flood insurance policy meeting the requirements of the current guidelines of
the
Federal Insurance Administration. All individual insurance policies contain
a
standard mortgagee clause naming the Loan Seller and its successors and assigns
as mortgagee, and all premiums thereon have been paid. The Mortgage obligates
the Mortgagor thereunder to maintain the hazard insurance policy at the
Mortgagor’s cost and expense, and on the Mortgagor’s failure to do so,
authorizes the holder of the Mortgage to obtain and maintain such insurance
at
such Mortgagor’s cost and expense, and to seek reimbursement therefor from the
Mortgagor. Where required by state law or regulation, the Mortgagor has been
given an opportunity to choose the carrier of the required hazard insurance,
provided the policy is not a “master” or “blanket” hazard insurance policy
covering a condominium or any hazard insurance policy covering the common
facilities of a planned unit development. To the best of RWT’s knowledge the
hazard insurance policy is the valid and binding obligation of the insurer,
is
in full force and effect, and will be in full force and effect and insure to
the
benefit of the Purchaser upon the consummation of the transactions contemplated
by the RWT-Xxxxxxx Agreement. RWT has not engaged in, and has no knowledge
of
the Mortgagor’s having engaged in, any act or omission which would impair the
coverage of any such policy, the benefits of the endorsement provided for
herein, or the validity and binding effect of either including, without
limitation, no unlawful fee, commission, kickback or other unlawful compensation
or value of any kind has been or will be received, retained or realized by
any
attorney, firm or other person or entity, and no such unlawful items have been
received, retained or realized by RWT;
92
(vii)
At
the
time of origination of such Mortgage Loan and thereafter, all requirements
of
any federal, state or local law including, without limitation, usury,
truth-in-lending, real estate settlement procedures, consumer credit protection,
equal credit opportunity or disclosure laws required to be complied with by
the
Loan Seller as the originator of the Mortgage Loan and applicable to the
Mortgage Loan have been complied with in all material respects;
(viii)
The
Mortgage has not been satisfied as of the Closing Date, canceled or
subordinated, in whole, or rescinded, and the Mortgaged Property has not been
released from the lien of the Mortgage, in whole or in part (except for a
release that does not materially impair the security of the Mortgage Loan or
a
release the effect of which is reflected in the Loan-to-Value Ratio for the
Mortgage Loan as set forth in the Mortgage Loan Schedule), nor to the best
of
RWT's knowledge has any instrument been executed that would effect any such
release, cancellation, subordination or rescission;
(ix)
Ownership
of the Mortgaged Property is held in fee simple or a leasehold estate. With
respect to Mortgage Loans that are secured by a leasehold estate, (i) the lease
is valid, in full force and effect, and conforms to all FNMA’s requirements for
leasehold estates; (ii) all rents and other payments due under the lease have
been paid; (iii) the lessee is not in default under any provision of the lease;
(iv) the term of the lease exceeds the maturity date of the related Mortgage
Loan by at least five (5) years; and (v) the terms of the lease provide a
Mortgagee with an opportunity to cure any defaults. Except as permitted by
the
fourth sentence of this paragraph (ix), the Mortgage is a valid, subsisting
and
enforceable first lien on the Mortgaged Property, including all buildings on
the
Mortgaged Property and all installations and mechanical, electrical, plumbing,
heating and air conditioning systems affixed to such buildings, and all
additions, alterations and replacements made at any time with respect to the
foregoing securing the Mortgage Note's original principal balance. The Mortgage
and the Mortgage Note do not contain any evidence on their face of any security
interest or other interest or right thereto. Such lien is free and clear of
all
adverse claims, liens and encumbrances having priority over the first lien
of
the Mortgage subject only to (1) the lien of non-delinquent current real
property taxes and assessments not yet due and payable, (2) covenants,
conditions and restrictions, rights of way, easements and other matters of
the
public record as of the date of recording which are acceptable to mortgage
lending institutions generally, or which are specifically referred to in the
lender's title insurance policy delivered to the originator of the Mortgage
Loan
and either (A) which are referred to or otherwise considered in the appraisal
made for the originator of the Mortgage Loan, or (B) which do not in the
aggregate adversely affect the appraised value of the Mortgaged Property as
set
forth in such appraisal, and (3) other matters to which like properties are
commonly subject which do not in the aggregate materially interfere with the
benefits of the security intended to be provided by the Mortgage or the use,
enjoyment, value or marketability of the related Mortgaged Property. Any
security agreement, chattel mortgage or equivalent document related to and
delivered in connection with the Mortgage Loan establishes and creates a valid,
subsisting and enforceable first lien and first priority security interest
on
the property described therein. With respect to each Cooperative Loan, the
security instruments create a valid, enforceable and subsisting first priority
security interest in the Cooperative Apartment securing the related Mortgage
Note subject only to (a) the lien of the related cooperative for current, but
not yet due and payable, assignments representing the Mortgagor’s pro rata share
of payments for a blanket mortgage, if any, current, but not yet due and
payable, and future real property taxes, insurance premiums, maintenance fees
and other assessments to which like collateral is commonly subject, and (b)
other matters to which the collateral is commonly subject which do not
materially interfere with the benefits of the security intended to be provided;
provided, however, that the related proprietary lease for the Cooperative
Apartment may be subordinated or otherwise subject to the lien of a Mortgage
on
the cooperative building;
93
(x)
The
Mortgage Note is not subject to a third party's security interest or other
rights or interest therein;
(xi)
The
Mortgage Note and the Mortgage and any other agreement executed and delivered
by
a Mortgagor in connection with a Mortgage Loan are genuine, and each is the
legal, valid and binding obligation of the maker thereof enforceable in
accordance with its terms. All parties to the Mortgage Note, the Mortgage and
any other such related agreement had legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note, the Mortgage and any such
agreement, and the Mortgage Note, the Mortgage and any other such related
agreement have been duly and properly executed by other such related parties.
No
fraud, error, omission, misrepresentation, or negligence with respect to a
Mortgage Loan has taken place on the part of any Person, including without
limitation, the Mortgagor, any appraiser, any builder or developer, or any
other
party involved in the origination of the Mortgage Loan. The Mortgage Loan has
been closed and the proceeds of the Mortgage Loan have been fully disbursed
and
there is no requirement for future advances thereunder, and any and all
requirements as to completion of any on-site or off-site improvement and as
to
disbursements of any escrow funds therefor have been complied with. All costs,
fees and expenses incurred in making or closing the Mortgage Loan and the
recording of the Mortgage were paid, and the Mortgagor is not entitled to any
refund of any amounts paid or due under the Mortgage Note or
Mortgage;
(xii)
Immediately
prior to the transfer and assignment to the Purchaser, the Mortgage Note and
the
Mortgage were not subject to an assignment or pledge, and RWT had good title
to
and was the sole owner thereof and had full right to transfer and sell the
Mortgage Loan free and clear of any encumbrance, equity, lien, pledge, charge,
claim or security interest, including, to the best knowledge of RWT, any lien,
claim or other interest arising by operation of law;
(xiii)
The
Mortgage Loan is covered by either (i) an attorney’s opinion of title and
abstract of title, the form and substance of which is acceptable to prudent
mortgage lending institutions making mortgage loans in the area wherein the
Mortgaged Property is located or (ii) an ALTA lender’s title insurance policy or
other generally acceptable form of policy or insurance acceptable to FNMA or
FHLMC and each such title insurance policy is issued by a title insurer
acceptable to FNMA or FHLMC and qualified to do business in the jurisdiction
where the Mortgaged Property is located, insuring the Loan Seller, its
successors and assigns, as to the first priority lien of the Mortgage in the
original principal amount of the Mortgage Loan, subject only to the exception
contained in clauses (1), (2) and (3) of paragraph (ix) of this Section 5,
and
in the case of adjustable rate Mortgage Loans, against any loss by reason of
the
invalidity or unenforceability of the lien resulting from the provisions of
the
Mortgage providing for adjustment to the Mortgage Interest Rate and Monthly
Payment. Where required by state law or regulation, the Mortgagor has been
given
the opportunity to choose the carrier of the required mortgage title insurance.
Additionally, such lender’s title insurance policy insures against encroachments
by or upon the Mortgaged Property. The Loan Seller, its successor and assigns,
are the sole insureds of such lender’s title insurance policy, and such lender’s
title insurance policy is valid and remains in full force and effect and will
be
in force and effect upon the consummation of the transactions contemplated
by
the RWT-Xxxxxxx Agreement. No claims have been made under such lender’s title
insurance policy, and to the best of Loan Seller’s knowledge no prior holder of
the related Mortgage, including RWT, has done, by act or omission, anything
which would impair the coverage of such lender’s title insurance policy,
including without limitation, no unlawful fee, commission, kickback or other
unlawful compensation or value of any kind has been or will be received,
retained or realized by any attorney, firm or other person or entity, and no
such unlawful items have been received, retained or realized by
RWT;
94
(xiv)
There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event permitting acceleration, except
for any Mortgage Loan payment which is not late by more than 30 days, and RWT
has not waived any default, breach, violation or event permitting
acceleration;
(xv)
As
of the
date of origination or purchase or the Mortgage Loans by RWT there were no
mechanics' or similar liens or claims which had been filed for work, labor
or
material (and, to the best of RWT's knowledge, no rights are outstanding that
under law could give rise to such lien) affecting the related Mortgaged Property
which are or may be liens prior to, or equal or coordinate with, the lien of
the
related Mortgage;
(xvi)
All
improvements subject to the Mortgage lay wholly within the boundaries and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in paragraph (xiii) above
and
all improvements on the property comply with all applicable zoning and
subdivision laws and ordinances;
(xvii)
Each
Mortgage Loan (except for the Mortgage Loans referred to in the next sentence)
was originated by the Loan Seller, and at the time of each such origination
the
Loan
Seller
was a mortgagee approved by the Secretary of Housing and Urban Development
(the
“Secretary”) pursuant to Sections 203 and 211 of the National Housing Act. Each
Mortgage Loan was underwritten in accordance with the Underwriting Guide as
in
effect at the time of origination, except to the extent the Loan Seller believed
at such time that a variance from such Underwriting Guide was warranted by
compensating factors with respect to such Mortgage Loan. The Mortgage contains
the usual and customary provision of the Loan Seller at the time of origination
for the acceleration of the payment of the unpaid principal balance of the
Mortgage Loan if the related Mortgaged Property is sold without the prior
consent of the mortgagee thereunder;
(xviii)
The
Mortgaged Property is undamaged by waste, fire, earthquake or earth movement,
windstorm, flood, tornado, or other casualty which damage is not fully insured
against by a current and active insurance policy (or at least insured up to
the
outstanding principal balance of the Mortgage Loan) and, to the best of RWT’s
knowledge is in good repair. There have not been any condemnation proceedings
with respect to the Mortgaged Property and there are no pending
proceedings;
(xix)
The
related Mortgage contains customary and enforceable provisions such as to render
the rights and remedies of the holder thereof adequate for the realization
against the Mortgaged Property of the benefits of the security provided thereby,
including, (1) in the case of a Mortgage designated as a deed of trust, by
trustee's sale or judicial foreclosure, and (2) otherwise by judicial
foreclosure. RWT has no knowledge of any homestead or other exemption available
to the Mortgagor which would interfere with the right to sell the Mortgaged
Property at a trustee's sale or the right to foreclose the
Mortgage;
95
(xx)
If
the
Mortgage constitutes a deed of trust, a trustee, duly qualified if required
under applicable law to act as such, has been properly designated and currently
so serves and is named in the Mortgage, and no fees or expenses are or will
become payable to the trustee under the deed of trust, except in connection
with
a trustee's sale or attempted sale after default by the Mortgagor;
(xxi)
The
Mortgage File contains an appraisal of the related Mortgage Property signed
prior to the approval of the Mortgage Loan application by a qualified appraiser,
duly appointed by the Loan Seller, who had no interest, direct or indirect
in
the Mortgaged Property or in any loan made on the security thereof, and whose
compensation is not affected by the approval or disapproval of the Mortgage
Loan, and the appraisal and appraiser both satisfy the requirements of FNMA
or
FHLMC and any applicable requirement of Title XI of the Federal Institutions
Reform, Recovery, and Enforcement Act of 1989 and the regulations promulgated
thereunder, all as in effect on the date the Mortgage Loan was
originated;
(xxii)
No
Mortgage Loan contains “subsidized buydown” or “graduated payment”
features;
(xxiii)
The
Mortgaged Property is a single-family (one- to four-unit) dwelling residence
erected thereon, or an individual condominium unit in a condominium, a
cooperative, or an individual unit in a planned unit development or in a de
minimis planned unit development. No such residence is a mobile home or a
manufactured dwelling which is not permanently attached to the
land;
(xxiv)
Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity and disclosure laws applicable
to
the Mortgage Loan have been complied with, the consummation of the transactions
contemplated hereby will not involve the violation of any such laws or
regulations, and the Loan Seller shall maintain in its possession, available
for
the Purchaser's inspection, and shall deliver to the Purchaser upon demand,
evidence of compliance with all such requirements; The Mortgagor has received
all disclosure materials required by Section 226 19(b) of the Federal Reserve
Board's Regulation Z and otherwise required by applicable law with respect
to
the making of adjustable rate mortgage loans;
(xxv)
There
are
no circumstances or conditions with respect to the Mortgage, the Mortgaged
Property, the Mortgage File, or, to the best of Loan Seller’s knowledge, the
Mortgagor or the Mortgagor’s credit standing that can reasonably be expected to
cause private institutional investors to regard the Mortgage Loan as an
unacceptable investment, cause the Mortgage to become delinquent, or adversely
affect the value or marketability of the Mortgage Loan;
(xxvi)
No
Mortgage Loan is covered by the Home Ownership and Equity Protection Act of
1994
and no Mortgage Loan is “high cost” as defined by any applicable federal, state
or local predatory or abusive lending law, and no mortgage loan is a “high cost”
or “covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 6.0, Appendix
E);
(xxvii)
Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state and federal laws, including, but not limited to, all
applicable predatory or abusive lending laws;
(xxviii)
The
Mortgage Note, the Mortgage, the Assignment of Mortgage and any other documents
required to be delivered for each Mortgage Loan pursuant to Section 3(b) have
been or shall be delivered to the Custodian pursuant to Section 3(b). The Loan
Seller is in possession of a Mortgage File as described in Exhibit
1
hereto,
which contains the applicable documents described in Exhibit 1 for the
applicable loan program, except for such documents the originals of which have
been delivered to the Custodian. Except for the absence of recording
information, the Assignment of Mortgage is in recordable form and is acceptable
for recording under the laws of the jurisdiction in which the Mortgaged Property
is located;
96
(xxix)
To
the
best of the Seller's knowledge, as of the date of origination of the Mortgage
Loan, there does not exist on the related Mortgaged Property any hazardous
substances, hazardous wastes, or solid wastes, as such terms are defined in
the
Comprehensive Environmental
Response, Compensation, and Liability Act, the Resource Conservation and
Recovery Act of 1976, or other federal, state or local environmental
legislation;
(xxx)
With
respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such
MIN
is accurately provided on the Mortgage Loan Schedule;
(xxxi)
With
respect to each MERS Mortgage Loan, RWT has not received any notice of liens
or
legal actions with respect to such Mortgage Loan and no such notices have been
electronically posted on the MERS System;
(xxxii)
None
of
the proceeds of any Mortgage Loan were used to finance the purchase of single
premium credit insurance policies;
(xxxiii)
No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(xxxiv) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC;
(xxxv) There
were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans; and
(xxxvi)
No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act, which became effective October
1,
2002.
97
XIV.
|
With
respect to Mortgage Loans purchased under the Mortgage Loan Purchase
and
Sale Agreement, dated as of April 1, 2004, between GMAC and American
Mortgage Network, Inc. (the “GMAC-AmNet
Agreement”)
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the GMAC-AmNet
Agreement.
(a) Mortgage
Loans as Described.
The
information set forth in the related Mortgage Loan Schedule is complete, true
and correct and the information
provided to the rating agencies, including the loan level detail, is true and
correct according to the rating agency requirements;
(b) Payments
Current.
All
payments required to be made up to the related Closing Date for the Mortgage
Loan under the terms of the Mortgage Note have been made and credited. No
payment required under the Mortgage Loan is 30 days or more delinquent nor
has
any payment under the Mortgage Loan been 30 days or more delinquent at any
time
since the origination of the Mortgage Loan;
(c) No
Outstanding Charges.
There
are no defaults in complying with the terms of the Mortgage, and all taxes,
governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing have been paid, or an escrow of funds has been established in an amount
sufficient to pay for every such item which remains unpaid and which has been
assessed but is not yet due and payable. The Seller has not advanced funds, or
induced, solicited or knowingly received any advance of funds by a party other
than the Mortgagor, directly or indirectly, for the payment of any amount
required under the Mortgage Loan, except for interest accruing from the date
of
the Mortgage Note or date of disbursement of the Mortgage Loan proceeds,
whichever is earlier, to the day which precedes by one month the related Due
Date of the first installment of principal and interest;
(d) Original
Terms Unmodified.
The
terms of the Mortgage Note and Mortgage have not been impaired, waived, altered
or modified in any respect, from the date of origination except by a written
instrument which has been recorded, if necessary to protect the interests of
the
Purchaser, and which has been delivered to the Custodian or to such other Person
as the Purchaser shall designate in writing, and the terms of which are
reflected in the related Mortgage Loan Schedule. The substance of any such
waiver, alteration or modification has been approved by the issuer of any
related PMI Policy and the title insurer, if any, to the extent required by
the
policy, and its terms are reflected on the related Mortgage Loan Schedule,
if
applicable. No Mortgagor has been released, in whole or in part, except in
connection with an assumption agreement, approved by the issuer of any related
PMI Policy and the title insurer, to the extent required by the policy, and
which assumption agreement is part of the Mortgage Loan File delivered to the
Custodian or to such other Person as the Purchaser shall designate in writing
and the terms of which are reflected in the related Mortgage Loan
Schedule;
(e) No
Defenses.
The
Mortgage Loan is not subject to any right of rescission, setoff, counterclaim
or
defense, including without limitation the defense of usury, nor will the
operation of any of the terms of the Mortgage Note or the Mortgage, or the
exercise of any right thereunder, render either the Mortgage Note or the
Mortgage unenforceable, in whole or in part and no such right of rescission,
set-off, counterclaim or defense has been asserted with respect
thereto;
(f) Hazard
Insurance.
Pursuant to the terms of the Mortgage, all buildings or other improvements
upon
the Mortgaged Property are insured by a generally acceptable insurer against
loss by fire, hazards of extended coverage and such other hazards as are
provided for in the Underwriting Guidelines. If required by the National Flood
Insurance Act of 1968, as amended, each Mortgage Loan is covered by a flood
insurance policy meeting the requirements of the current guidelines of the
Federal Insurance Administration as in effect which policy conforms with the
Underwriting Guidelines. All individual insurance policies contain a standard
mortgagee clause naming the Seller and its successors and assigns as mortgagee,
and all premiums thereon have been paid. The Mortgage obligates the Mortgagor
thereunder to maintain the hazard insurance policy at the Mortgagor’s cost and
expense, and on the Mortgagor’s failure to do so, authorizes the holder of the
Mortgage to obtain and maintain such insurance at such Mortgagor’s cost and
expense, and to seek reimbursement therefor from the Mortgagor. Where required
by state law or regulation, the Mortgagor has been given an opportunity to
choose the carrier of the required hazard insurance, provided the policy is
not
a “master” or “blanket” hazard insurance policy covering a condominium, or any
hazard insurance policy covering the common facilities of a planned unit
development. The hazard insurance policy is the valid and binding obligation
of
the insurer, is in full force and effect, and will be in full force and effect
and inure to the benefit of the Purchaser upon the consummation of the
transactions contemplated by the GMAC-AmNet Agreement. The Seller has not
engaged in, and has no knowledge of the Mortgagor’s having engaged in, any act
or omission which would impair the coverage of any such policy, the benefits
of
the endorsement provided for herein, or the validity and binding effect of
either including, without limitation, no unlawful fee, commission, kickback
or
other unlawful compensation or value of any kind has been or will be received,
retained or realized by any attorney, firm or other person or entity, and no
such unlawful items have been received, retained or realized by the
Seller;
98
(g) Compliance
with Applicable Laws.
Any and
all requirements of any federal, state or local law including, without
limitation, usury, truth- in- lending, real estate settlement procedures,
consumer credit protection, equal credit opportunity, predatory lending, and
disclosure laws applicable to the Mortgage Loan have been complied with, the
consummation of the transactions contemplated hereby will not involve the
violation of any such laws or regulations, and the Seller shall maintain in
its
possession, available for the Purchaser’s inspection, and shall deliver to the
Purchaser upon demand, evidence of compliance with all such
requirements;
(h) No
Satisfaction of Mortgage.
The
Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole
or in part, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part, nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission. The
Seller has not waived the performance by the Mortgagor of any action, if the
Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
in default, nor has the Seller waived any default resulting from any action
or
inaction by the Mortgagor;
(i) Type
of Mortgaged Property.
With
respect to a Mortgage Loan that is not a Co-op Loan and is not secured by an
interest in a leasehold estate, the Mortgaged Property is a fee simple estate
that consists of a single parcel of real property with a detached single family
residence erected thereon, or a two- to four-family dwelling, or an individual
residential condominium unit in a condominium project, or an individual unit
in
a planned unit development, or an individual unit in a residential cooperative
housing corporation; provided, however, that any condominium unit, planned
unit
development or residential cooperative housing corporation shall conform with
the Underwriting Guidelines. No portion of the Mortgaged Property (or Underlying
Mortgaged Property, in the case of a Co-op Loan) is used for commercial
purposes, and since the date of origination, no portion of the Mortgaged
Property has been used for commercial purposes; provided, that Mortgaged
Properties which contain a home office shall not be considered as being used
for
commercial purposes as long as the Mortgaged Property has not been altered
for
commercial purposes and is not storing any chemicals or raw materials other
than
those commonly used for homeowner repair, maintenance and/or household purposes.
None of the Mortgaged Properties are Manufactured Homes, log homes, mobile
homes, geodesic domes or other unique property types;
(j) Valid
First Lien.
The
Mortgage is a valid, subsisting, enforceable and perfected, first lien on the
Mortgaged Property, including all buildings and improvements on the Mortgaged
Property and all installations and mechanical, electrical, plumbing, heating
and
air conditioning systems located in or annexed to such buildings, and all
additions, alterations and replacements made at any time with respect to the
foregoing. The lien of the Mortgage is subject only to:
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(i)
|
the
lien of current real property taxes and assessments not yet due and
payable;
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(ii)
|
covenants,
conditions and restrictions, rights of way, easements and other
matters of
the public record as of the date of recording acceptable to prudent
mortgage lending institutions generally and specifically referred
to in
the lender’s title insurance policy delivered to the originator of the
Mortgage Loan and (a) specifically referred to or otherwise considered
in
the appraisal made for the originator of the Mortgage Loan or (b)
which do
not adversely affect the Appraised Value of the Mortgaged Property
set
forth in such appraisal; and
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(iii)
|
other
matters to which like properties are commonly subject which do
not
materially interfere with the benefits of the security intended
to be
provided by the Mortgage or the use, enjoyment, value or marketability
of
the related Mortgaged Property.
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Any
security agreement, chattel mortgage or equivalent document related to and
delivered in connection with the Mortgage Loan establishes and creates a
valid,
subsisting, enforceable and perfected first lien and first priority security
interest on the property described therein and the Seller has full right
to sell
and assign the same to the Purchaser.
With
respect to any Co-op Loan, the related Mortgage is a valid, subsisting and
enforceable first priority security interest on the related cooperative shares
securing the Mortgage Note, subject only to (a) liens of the related residential
cooperative housing corporation for unpaid assessments representing the
Mortgagor’s pro rata share of the related residential cooperative housing
corporation’s payments for its blanket mortgage, current and future real
property taxes, insurance premiums, maintenance fees and other assessments
to
which like collateral is commonly subject and (b) other matters to which
like
collateral is commonly subject which do not materially interfere with the
benefits of the security interest intended to be provided by the related
Security Agreement;
(k) Validity
of Mortgage Documents.
The
Mortgage Note and the Mortgage and any other agreement executed and delivered
by
a Mortgagor in connection with a Mortgage Loan are genuine, and each is the
legal, valid and binding obligation of the maker thereof enforceable in
accordance with its terms. All parties to the Mortgage Note, the Mortgage
and
any other such related agreement had legal capacity to enter into the Mortgage
Loan and to execute and deliver the Mortgage Note, the Mortgage and any such
agreement, and the Mortgage Note, the Mortgage and any other such related
agreement have been duly and properly executed by other such related parties.
No
fraud, error, omission, misrepresentation, negligence or similar occurrence
with
respect to a Mortgage Loan has taken place on the part of the Seller in
connection with the origination of the Mortgage Loan or in the application
of
any insurance in relation to such Mortgage Loan. No fraud, error, omission,
misrepresentation, negligence or similar occurrence with respect to a Mortgage
Loan has taken place on the part of any Person, including without limitation,
the Mortgagor, any appraiser, any builder or developer, or any other party
involved in the origination of the Mortgage Loan or in the application for
any
insurance in relation to such Mortgage Loan. The Seller has reviewed all
of the
documents constituting the Servicing File and has made such inquiries as
it
deems necessary to make and confirm the accuracy of the representations set
forth herein;
(l) Full
Disbursement of Proceeds.
The
Mortgage Loan has been closed and the proceeds of the Mortgage Loan have
been
fully disbursed and there is no requirement for future advances thereunder,
and
any and all requirements as to completion of any on-site or off-site improvement
and as to disbursements of any escrow funds therefor have been complied with.
All costs, fees and expenses incurred in making or closing the Mortgage Loan
and
the recording of the Mortgage were paid, and the Mortgagor is not entitled
to
any refund of any amounts paid or due under the Mortgage Note or
Mortgage;
100
(m) Ownership.
The
Seller is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by each Mortgage Note and upon the sale of the Mortgage
Loans to the Purchaser, the Seller will retain the Mortgage Files or any part
thereof with respect thereto not delivered to the Custodian, the Purchaser
or
the Purchaser’s designee, in trust only for the purpose of servicing and
supervising the servicing of each Mortgage Loan. The Mortgage Loan is not
assigned or pledged, and the Seller has good, indefeasible and marketable title
thereto, and has full right to transfer and sell the Mortgage Loan to the
Purchaser free and clear of any encumbrance, equity, participation interest,
lien, pledge, charge, claim or security interest, and has full right and
authority subject to no interest or participation of, or agreement with, any
other party, to sell and assign each Mortgage Loan pursuant to the GMAC-AmNet
Agreement and following the sale of each Mortgage Loan, the Purchaser will
own
such Mortgage Loan free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge, claim or security interest. The Seller intends
to relinquish all rights to possess, control and monitor the Mortgage Loan.
After the related Closing Date, the Seller will have no right to modify or
alter
the terms of the sale of the Mortgage Loan and the Seller will have no
obligation or right to repurchase the Mortgage Loan, except as provided in
the
GMAC-AmNet Agreement;
(n) Doing
Business.
All
parties which have had any interest in the Mortgage Loan, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (1) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (2) either (i) organized under the laws of such state,
or (ii) qualified to do business in such state, or (iii) a federal savings
and
loan association, a savings bank or a national bank having a principal office
in
such state, or (3) not doing business in such state;
(o) LTV,
PMI Policy.
No
Mortgage Loan has an LTV greater than 100%. Any Mortgage Loan that had at the
time of origination an LTV in excess of 80% is insured as to payment defaults
by
a PMI Policy. Any PMI Policy in effect covers the related Mortgage Loan for
the
life of such Mortgage Loan, subject to applicable law. All provisions of such
PMI Policy have been and are being complied with, such policy is in full force
and effect, and all premiums due thereunder have been paid and shall be paid
in
accordance with policy requirements. No action, inaction, or event has occurred
and no state of facts exists that has, or will result in the exclusion from,
denial of, or defense to coverage. Any Mortgage Loan subject to a PMI Policy
obligates the Mortgagor thereunder to maintain the PMI Policy and to pay all
premiums and charges in connection therewith. The Mortgage Interest Rate for
the
Mortgage Loan as set forth on the related Mortgage Loan Schedule is net of
any
such insurance premium;
(p) Title
Insurance.
With
respect to a Mortgage Loan which is not a Co-op Loan, the Mortgage Loan is
covered by an ALTA lender’s title insurance policy or other generally acceptable
form of policy or insurance acceptable under the Underwriting Guidelines and
each such title insurance policy is issued by a title insurer acceptable under
the Underwriting Guidelines and qualified to do business in the jurisdiction
where the Mortgaged Property is located, insuring the Seller, its successors
and
assigns, as to the first priority lien of the Mortgage in the original principal
amount of the Mortgage Loan (or to the extent a Mortgage Note provides for
negative amortization, the maximum amount of negative amortization in accordance
with the Mortgage), subject only to the exceptions contained in clauses (i)
and
(ii) of paragraph (j) of Subsection 9.02 of the GMAC-AmNet Agreement, and in
the
case of Adjustable Rate Mortgage Loans, against any loss by reason of the
invalidity or unenforceability of the lien resulting from the provisions of
the
Mortgage providing for adjustment to the Mortgage Interest Rate and Monthly
Payment. Where required by state law or regulation, the Mortgagor has been
given
the opportunity to choose the carrier of the required mortgage title insurance.
Additionally, such lender’s title insurance policy affirmatively insures ingress
and egress, and against encroachments by or upon the Mortgaged Property or
any
interest therein. The Seller, its successor and assigns, are the sole insureds
of such lender’s title insurance policy, and such lender’s title insurance
policy is valid and remains in full force and effect and will be in force and
effect upon the consummation of the transactions contemplated by the GMAC-AmNet
Agreement. No claims have been made under such lender’s title insurance policy,
and no prior holder of the related Mortgage, including the Seller, has done,
by
act or omission, anything which would impair the coverage of such lender’s title
insurance policy, including without limitation, no unlawful fee, commission,
kickback or other unlawful compensation or value of any kind has been or will
be
received, retained or realized by any attorney, firm or other person or entity,
and no such unlawful items have been received, retained or realized by the
Seller;
101
(q) No
Defaults.
Other
than payments due but not yet 30 days or more delinquent, there is no default,
breach, violation or event which would permit acceleration existing under the
Mortgage or the Mortgage Note and no event which, with the passage of time
or
with notice and the expiration of any grace or cure period, would constitute
a
default, breach, violation or event which would permit acceleration, and neither
the Seller nor any of its affiliates nor any of their respective predecessors,
have waived any default, breach, violation or event which would permit
acceleration;
(r) No
Mechanics’ Liens.
There
are no mechanics’ or similar liens or claims which have been filed for work,
labor or material (and no rights are outstanding that under law could give
rise
to such liens) affecting the related Mortgaged Property which are or may be
liens prior to, or equal or coordinate with, the lien of the related Mortgage;
(s) Location
of Improvements; No Encroachments.
All
improvements which were considered in determining the Appraised Value of the
Mortgaged Property lay wholly within the boundaries and building restriction
lines of the Mortgaged Property, and no improvements on adjoining properties
encroach upon the Mortgaged Property. No improvement located on or being part
of
the Mortgaged Property is in violation of any applicable zoning law or
regulation;
(t) Origination;
Payment Terms.
The
Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to Sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or other similar institution which is supervised and
examined by a federal or state authority. Principal payments on the Mortgage
Loan commenced no more than seventy days after funds were disbursed in
connection with the Mortgage Loan. The Mortgage Interest Rate as well as, in
the
case of an Adjustable Rate Mortgage Loan, the Lifetime Rate Cap and the Periodic
Cap are as set forth on the related Mortgage Loan Schedule. The Mortgage Note
is
payable in equal monthly installments of principal and interest, which
installments of interest, with respect to Adjustable Rate Mortgage Loans, are
subject to change due to the adjustments to the Mortgage Interest Rate on each
Interest Rate Adjustment Date, with interest calculated and payable in arrears,
sufficient to amortize the Mortgage Loan fully by the stated maturity date,
over
an original term of not more than fifteen years from commencement of
amortization. Unless otherwise specified on the related Mortgage Loan Schedule,
the Mortgage Loan is payable on the first day of each month. The Mortgage Loan
does not require a balloon payment on its stated maturity date;
(u) Customary
Provisions.
The
Mortgage contains customary and enforceable provisions such as to render the
rights and remedies of the holder thereof adequate for the realization against
the Mortgaged Property of the benefits of the security provided thereby,
including, (i) in the case of a Mortgage designated as a deed of trust, by
trustee’s sale, and (ii) otherwise by judicial foreclosure. Upon default by a
Mortgagor on a Mortgage Loan and foreclosure on, or trustee’s sale of, the
Mortgaged Property pursuant to the proper procedures, the holder of the Mortgage
Loan will be able to deliver good and merchantable title to the Mortgaged
Property. There is no homestead or other exemption available to a Mortgagor
which would interfere with the right to sell the Mortgaged Property at a
trustee’s sale or the right to foreclose the Mortgage, subject to applicable
federal and state laws and judicial precedent with respect to bankruptcy and
right of redemption or similar law;
(v) Conformance
with Agency and Underwriting Guidelines.
The
Mortgage Loan was underwritten in accordance with the Underwriting Guidelines
(a
copy of which is attached to each related Assignment and Conveyance Agreement).
The Mortgage Note and Mortgage are on forms acceptable to Xxxxxxx Mac or Xxxxxx
Mae and no representations have been made to a Mortgagor that are inconsistent
with the mortgage instruments used;
102
(w) Occupancy
of the Mortgaged Property.
As of
the related Closing Date the Mortgaged Property is lawfully occupied under
applicable law. All inspections, licenses and certificates required to be made
or issued with respect to all occupied portions of the Mortgaged Property and,
with respect to the use and occupancy of the same, including but not limited
to
certificates of occupancy and fire underwriting certificates, have been made
or
obtained from the appropriate authorities. Unless otherwise specified on the
related Mortgage Loan Schedule, the Mortgagor represented at the time of
origination of the Mortgage Loan that the Mortgagor would occupy the Mortgaged
Property as the Mortgagor’s primary residence;
(x) No
Additional Collateral.
The
Mortgage Note is not and has not been secured by any collateral except the
lien
of the corresponding Mortgage and the security interest of any applicable
security agreement or chattel mortgage referred to in clause (j) above;
(y) Deeds
of Trust.
In the
event the Mortgage constitutes a deed of trust, a trustee, authorized and duly
qualified under applicable law to serve as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses
are or will become payable by the Purchaser to the trustee under the deed of
trust, except in connection with a trustee’s sale after default by the
Mortgagor;
(z) Acceptable
Investment.
There
are no circumstances or conditions with respect to the Mortgage, the Mortgaged
Property, the Mortgagor, the Mortgage File or the Mortgagor’s credit standing
that can reasonably be expected to cause private institutional investors who
invest in prime mortgage loans similar to the Mortgage Loan to regard the
Mortgage Loan as an unacceptable investment;
(aa) Delivery
of Mortgage Documents.
The
Mortgage Note, the Mortgage, the Assignment of Mortgage and any other documents
required to be delivered under the Custodial Agreement for each Mortgage Loan
have been delivered to the Custodian. The Seller is in possession of a complete,
true and accurate Mortgage File in compliance with Exhibit 2 attached hereto,
except for such documents the originals of which have been delivered to the
Custodian;
(bb) Georgia
Fair Lending Act.
There
is no Mortgage Loan that was originated on or after October 1, 2002 and on
or
prior to March 7, 2003, which is secured by property located in the State of
Georgia;
(cc) Transfer
of Mortgage Loans.
The
Assignment of Mortgage (except with respect to any Mortgage that has been
recorded in the name of MERS or its designee) with respect to each Mortgage
Loan
is in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;
(dd) Due-On-Sale.
With
respect to each Mortgage Loan, the Mortgage contains an enforceable provision
for the acceleration of the payment of the unpaid principal balance of the
Mortgage Loan in the event that the Mortgaged Property is sold or transferred
without the prior written consent of the mortgagee thereunder, and such
provision is enforceable;
(ee) No
Buydown Provisions; No Graduated Payments or Contingent
Interests.
The
Mortgage Loan does not contain provisions pursuant to which Monthly Payments
are
paid or partially paid with funds deposited in any separate account established
by the Seller, the Mortgagor, or anyone on behalf of the Mortgagor, or paid
by
any source other than the Mortgagor nor does it contain any other similar
provisions which may constitute a “buydown” provision. The Mortgage Loan is not
a graduated payment mortgage loan and the Mortgage Loan does not have a shared
appreciation or other contingent interest feature;
(ff) Consolidation
of Future Advances.
Any
future advances made to the Mortgagor prior to the applicable Cut-off Date
have
been consolidated with the outstanding principal amount secured by the Mortgage,
and the secured principal amount, as consolidated, bears a single interest
rate
and single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having first lien priority by a title
insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Xxxxxx Xxx and
Xxxxxxx Mac. The consolidated principal amount does not exceed the original
principal amount of the Mortgage Loan;
103
(gg) Mortgaged
Property Undamaged; No Condemnation Proceedings.
There
is no proceeding pending or threatened for the total or partial condemnation
of
the Mortgaged Property. The Mortgaged Property is undamaged by waste, fire,
earthquake or earth movement, windstorm, flood, tornado or other casualty so
as
to affect adversely the value of the Mortgaged Property as security for the
Mortgage Loan or the use for which the premises were intended and each Mortgaged
Property is in good repair. There have not been any condemnation proceedings
with respect to the Mortgaged Property;
(hh) Collection
Practices; Escrow Deposits; Interest Rate Adjustments.
The
origination, servicing and collection practices used by the Seller and the
Interim Servicer, if applicable, with respect to the Mortgage Loan have been
in
all respects in compliance with Accepted Servicing Practices, applicable laws
and regulations, and have been in all respects legal and proper. With respect
to
escrow deposits and Escrow Payments, all such payments are in the possession
of,
or under the control of, the Seller or the Interim Servicer and there exist
no
deficiencies in connection therewith for which customary arrangements for
repayment thereof have not been made. All Escrow Payments have been collected
in
full compliance with state and federal law and the provisions of the related
Mortgage Note and Mortgage. An escrow of funds is not prohibited by applicable
law and has been established in an amount sufficient to pay for every item
that
remains unpaid and has been assessed but is not yet due and payable. No escrow
deposits or Escrow Payments or other charges or payments due the Seller have
been capitalized under the Mortgage or the Mortgage Note. All Mortgage Interest
Rate adjustments have been made in strict compliance with state and federal
law
and the terms of the related Mortgage and Mortgage Note on the related Interest
Rate Adjustment Date. If, pursuant to the terms of the Mortgage Note, another
index was selected for determining the Mortgage Interest Rate, the same index
was used with respect to each Mortgage Note which required a new index to be
selected, and such selection did not conflict with the terms of the related
Mortgage Note. The Seller or the Interim Servicer executed and delivered any
and
all notices required under applicable law and the terms of the related Mortgage
Note and Mortgage regarding the Mortgage Interest Rate and the Monthly Payment
adjustments. Any interest required to be paid pursuant to state, federal and
local law has been properly paid and credited;
(ii) Conversion
to Fixed Interest Rate.
The
Mortgage Loan does not contain a provision whereby the Mortgagor is permitted
to
convert the Mortgage Interest Rate from an adjustable rate to a fixed rate;
(jj) Other
Insurance Policies; No Defense to Coverage.
No
action, inaction or event has occurred and no state of facts exists or has
existed on or prior to the Closing Date that has resulted or will result in
the
exclusion from, denial of, or defense to coverage under any applicable hazard
insurance policy, PMI Policy or bankruptcy bond (including, without limitation,
any exclusions, denials or defenses which would limit or reduce the availability
of the timely payment of the full amount of the loss otherwise due thereunder
to
the insured), irrespective of the cause of such failure of coverage. In
connection with the placement of any such insurance, no commission, fee, or
other compensation has been or will be received by the Seller or by any officer,
director, or employee of the Seller or any designee of the Seller or any
corporation in which the Seller or any officer, director, or employee had a
financial interest at the time of placement of such insurance;
(kk) No
Violation of Environmental Laws.
There
is no pending action or proceeding directly involving the Mortgaged Property
in
which compliance with any environmental law, rule or regulation is an issue;
there is no violation of any environmental law, rule or regulation with respect
to the Mortgage Property; and nothing further remains to be done to satisfy
in
full all requirements of each such law, rule or regulation constituting a
prerequisite to use and enjoyment of said property;
(ll) Servicemembers’
Civil Relief Act.
The
Mortgagor has not notified the Seller, and the Seller has no knowledge of any
relief requested or allowed to the Mortgagor under the Servicemembers’ Civil
Relief Act of 1940 as amended, or other similar state statute;
104
(mm) Appraisal.
The
Mortgage File contains an appraisal of the related Mortgaged Property signed
prior to the approval of the Mortgage Loan application by a Qualified Appraiser,
duly appointed by the Seller, who had no interest, direct or indirect in the
Mortgaged Property or in any loan made on the security thereof, and whose
compensation is not affected by the approval or disapproval of the Mortgage
Loan, and the appraisal and appraiser both satisfy the requirements of Xxxxxx
Xxx or Xxxxxxx Mac and Title XI of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 and the regulations promulgated thereunder, all
as
in effect on the date the Mortgage Loan was originated;
(nn) Disclosure
Materials.
The
Mortgagor has executed a statement to the effect that the Mortgagor has received
all disclosure materials required by, and the Seller has complied with, all
applicable law with respect to the making of the Mortgage Loans. The Seller
shall maintain such statement in the Mortgage File;
(oo) Construction
or Rehabilitation of Mortgaged Property.
No
Mortgage Loan was made in connection with the construction (other than a
“construct-to-perm” loan) or rehabilitation of a Mortgaged Property or
facilitating the trade-in or exchange of a Mortgaged Property;
(pp) Escrow
Analysis.
If
applicable, with respect to each Mortgage, the Seller has within the last twelve
months (unless such Mortgage was originated within such twelve month period)
analyzed the required Escrow Payments for each Mortgage and adjusted the amount
of such payments so that, assuming all required payments are timely made, any
deficiency will be eliminated on or before the first anniversary of such
analysis, or any overage will be refunded to the Mortgagor, in accordance with
RESPA and any other applicable law;
(qq) Credit
Information.
As to
each consumer report (as defined in the Fair Credit Reporting Act, Public Law
91-508) or other credit information furnished by the Seller to the Purchaser,
that Seller has full right and authority and is not precluded by law or contract
from furnishing such information to the Purchaser and the Purchaser is not
precluded from furnishing the same to any subsequent or prospective purchaser
of
such Mortgage;
(rr) Leaseholds.
If the
Mortgage Loan is secured by a leasehold estate, (1) the ground lease is
assignable or transferable; (2) the ground lease will not terminate earlier
than
five years after the maturity date of the Mortgage Loan; (3) the ground lease
does not provide for termination of the lease in the event of lessee’s default
without the mortgagee being entitled to receive written notice of, and a
reasonable opportunity to cure the default; (4) the ground lease permits the
mortgaging of the related Mortgaged Property; (5) the ground lease protects
the
mortgagee’s interests in the event of a property condemnation; (6) all ground
lease rents, other payments, or assessments that have become due have been
paid;
and (7) the use of leasehold estates for residential properties is a widely
accepted practice in the jurisdiction in which the Mortgaged Property is
located;
(ss) Prepayment
Penalty.
Each
Mortgage Loan that is subject to a prepayment penalty as provided in the related
Mortgage Note is identified on the related Mortgage Loan Schedule. With respect
to Mortgage Loans originated prior to October 1, 2002, no such Prepayment
Penalty may be imposed for a term in excess of five (5) years following
origination. With respect to Mortgage Loans originated on or after October
1,
2002, no such Prepayment Penalty may be imposed for a term in excess of three
(3) years following origination;
(tt) Predatory
Lending Regulations.
No
Mortgage Loan is (a) a “high cost” loan under the Home Ownership and Equity
Protection Act of 1994, (b) a “high cost,” “threshold,” “covered” or “predatory”
or similar loan under any other applicable state, federal or local law (or
a
similarly classified loan using different terminology under a law imposing
heightened regulatory scrutiny or additional legal liability for residential
mortgage loans having high interest rates, points and/or fees), or (c) a “high
cost” or “covered” mortgage loan, as applicable (as such terms are defined in
the then current Standard and Poor’s LEVELS Glossary which is now Version 6.0,
Appendix E);
105
(uu) Single-premium
Credit Life Insurance Policy.
In
connection with the origination of any Mortgage Loan, no proceeds from such
Mortgage Loan were used to finance a single-premium credit life insurance
policy;
(vv) Qualified
Mortgage.
The
Mortgage Loan is a qualified mortgage under Section 860G(a)(3) of the
Code;
(ww) Origination.
No
predatory or deceptive lending practices, including, without limitation, the
extension of credit without regard to the ability of the Mortgagor to repay
and
the extension of credit which has no apparent benefit to the Mortgagor, were
employed in the origination of the Mortgage Loan;
(xx) Recordation.
Each
original Mortgage was recorded and all subsequent assignments of the original
Mortgage (other than the assignment to the Purchaser) have been recorded in
the
appropriate jurisdictions wherein such recordation is necessary to perfect
the
lien thereof as against creditors of the Seller, or is in the process of being
recorded;
(yy) Co-op
Loans.
With
respect to a Mortgage Loan that is a Co-op Loan, the stock that is pledged
as
security for the Mortgage Loan is held by a person as a tenant stockholder
(as
defined in Section 216 of the Code) in a cooperative housing corporation (as
defined in Section 216 of the Code);
(zz) Mortgagor
Bankruptcy.
On or
prior to the date 60 days after the related Closing Date, the Mortgagor has
not
filed and will not file a bankruptcy petition or has not become the subject
and
will not become the subject of involuntary bankruptcy proceedings or has not
consented to or will not consent to the filing of a bankruptcy proceeding
against it or to a receiver being appointed in respect of the related Mortgaged
Property;
(aaa) New
York Anti-Predatory Lending Laws.
No
Mortgage Loan (a) is secured by property located in the State of New York;
(b)
had an original principal balance of $300,000 or less, and (c) has an
application date on or after April 1, 2003, the terms of which Mortgage Loan
equal or exceed either the APR or points and fees threshold for “high-cost home
loans,” as defined in Section 6-L of the New York State Banking Law. Any breach
of this representation shall be deemed to materially and adversely affect the
value of the Mortgage Loan and shall require a repurchase of the affected
Mortgage Loan. With respect to any Mortgage Loan the related Mortgaged Property
of which is located in the City of New York, such Mortgage Loan was originated
prior to February 18, 2003;
(bbb) Points
and Fees.
All
points and fees related to each Mortgage Loan were disclosed in writing to
the
Mortgagor in accordance with applicable state and federal law and regulation.
Except in the case of a Mortgage Loan in an original principal amount of less
than $60,000 which would have resulted in an unprofitable origination, no
Mortgagor was charged “points and fees” (whether or not financed) in an amount
greater than 5% of the principal amount of such loan, such 5% limitation is
calculated in accordance with Xxxxxx Mae’s anti-predatory lending requirements
as set forth in the Xxxxxx Mae Selling Guide. All points and fees related to
each Mortgage Loan are accurately described on the Mortgage Loan
Schedule;
(ccc) No
Mortgage Loan which is secured by property located in the State of New Jersey
is
a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which
became effective November 27, 2003;
(ddd) No
Mortgage Loan which is secured by property located in the State of New Mexico
is
a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
which became effective January 1, 2004;
106
(eee) No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003;
(fff)
No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004;
(ggg)
No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.);
(hhh) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005; and
(iii) There
were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
107
XV.
|
With
respect to Mortgage Loans purchased under the Seller’s Purchase,
Warranties and Interim Servicing Agreement, dated as of June 1, 2004,
between GMAC and First Magnus Financial Corporation (the “GMAC-First
Magnus Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the GMAC-First Magnus
Agreement.
(a) The
information set forth in the related Mortgage Loan Schedule, including any
diskette or other related data tapes sent to the Purchaser, is complete, true
and correct in all material respects, and the information
provided to the rating agencies, including the loan level detail, is true and
correct according to the rating agency requirements;
(b) The
Mortgage creates a first lien or a first priority ownership interest in an
estate in fee simple in real property securing the related Mortgage
Note;
(c) All
payments due on or prior to the related Closing Date for such Mortgage Loan
have
been made as of the related Closing Date, the Mortgage Loan is not delinquent
in
payment more than 30 days and has not been dishonored; there are no material
defaults under the terms of the Mortgage Loan; the Company has not advanced
funds, or induced, solicited or knowingly received any advance of funds from
a
party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage
Loan; no payment with respect to each Mortgage Loan has been delinquent during
the preceding twelve-month period;
(d) All
taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing have been paid, or escrow funds have been established in an amount
sufficient to pay for every such escrowed item which remains unpaid and which
has been assessed but is not yet due and payable;
(e) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments which have been recorded
to the extent any such recordation is required by law. No instrument of waiver,
alteration or modification has been executed, and no Mortgagor has been
released, in whole or in part, from the terms thereof except in connection
with
an assumption agreement and which assumption agreement is part of the Mortgage
File and the terms of which are reflected in the related Mortgage Loan Schedule;
the substance of any such waiver, alteration or modification has been approved
by the issuer of any related Primary Mortgage Insurance Policy and title
insurance policy, to the extent required by the related policies;
(f) The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense
of
usury, nor will the operation of any of the terms of the Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render the Mortgage Note
or
Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto; and the Mortgagor was not a debtor in any state
or federal bankruptcy or insolvency proceeding at the time the Mortgage Loan
was
originated;
(g) All
buildings or other customarily insured improvements upon the Mortgaged Property
are insured by an insurer acceptable under the Xxxxxx Xxx Guides, against loss
by fire, hazards of extended coverage and such other hazards as are provided
for
in the Xxxxxx Mae Guides or by the Xxxxxxx Mac Guides, in an amount representing
coverage not less than the lesser of (i) the maximum insurable value of the
improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such
that
the proceeds thereof shall be sufficient to prevent the Mortgagor and/or the
mortgagee from becoming a co-insurer. All such standard hazard policies are
in
full force and effect and on the date of origination contained a standard
mortgagee clause naming the Company and its successors in interest and assigns
as loss payee and such clause is still in effect and all premiums due thereon
have been paid. If required by the Flood Disaster Protection Act of 1973, as
amended, the Mortgage Loan is covered by a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
which policy conforms to Xxxxxx Mae and Xxxxxxx Mac requirements, in an amount
not less than the amount required by the Flood Disaster Protection Act of 1973,
as amended. Such policy was issued by an insurer acceptable under Xxxxxx Mae
or
Xxxxxxx Mac guidelines. The Mortgage obligates the Mortgagor thereunder to
maintain all such insurance at the Mortgagor’s cost and expense, and upon the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain
such insurance at the Mortgagor’s cost and expense and to seek reimbursement
therefor from the Mortgagor;
108
(h) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity, fair housing, or disclosure laws
applicable to the Mortgage Loan have been complied with in all material
respects;
(i) The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission. The
Company has not waived the performance by the Mortgagor of any action, if the
Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
in default, nor has the Company waived any default resulting from any action
or
inaction by the Mortgagor;
(j) The
related Mortgage is a valid, subsisting, enforceable and perfected first lien
on
the Mortgaged Property including all buildings on the Mortgaged Property and
all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems affixed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing securing the
Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note
do not contain any evidence of any security interest or other interest or right
thereto. Such lien is free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only
to
(1) the lien of non-delinquent current real property taxes and assessments
not
yet due and payable, (2) covenants, conditions and restrictions, rights of
way,
easements and other matters of the public record as of the date of recording
which are acceptable to mortgage lending institutions generally and either
(A)
which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and
(3) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates (1) a valid, subsisting, enforceable and perfected
first
lien and first priority security interest and on the property described therein,
and the Company has the full right to sell and assign the same to the
Purchaser;
(k) The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency,
moratorium, reorganization and other laws of general application affecting
the
rights of creditors and by general equitable principles and the Company has
taken all action necessary to transfer such rights of enforceability to the
Purchaser. All parties to the Mortgage Note and the Mortgage had the legal
capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage
Note and the Mortgage. The Mortgage Note and the Mortgage have been duly and
properly executed by such parties. No fraud, error, omission, misrepresentation,
negligence or similar occurrence with respect to a Mortgage Loan has taken
place
on the part of the Company or the Mortgagor, or, on the part of any other party
involved in the origination of the Mortgage Loan. The proceeds of the Mortgage
Loan have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor
have
been complied with. All costs, fees and expenses incurred in making or closing
the Mortgage Loan and the recording of the Mortgage were paid or are in the
process of being paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due under the Mortgage Note or Mortgage;
109
(l) The
Company is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser
or its designee will be the owner of record of the Mortgage and the indebtedness
evidenced by the Mortgage Note, and upon the sale of the Mortgage Loan to the
Purchaser, the Company will retain the Servicing File in trust for the Purchaser
only for the purpose of interim servicing and supervising the interim servicing
of the Mortgage Loan. Immediately prior to the transfer and assignment to the
Purchaser on the related Closing Date, the Mortgage Loan, including the Mortgage
Note and the Mortgage, were not subject to an assignment or pledge, and the
Company had good and marketable title to and was the sole owner thereof and
had
full right to transfer and sell the Mortgage Loan to the Purchaser free and
clear of any encumbrance, equity, lien, pledge, charge, claim or security
interest and has the full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign the
Mortgage Loan pursuant to the GMAC-First Magnus Agreement and following the
sale
of the Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim
or security interest. The Company intends to relinquish all rights to possess,
control and monitor the Mortgage Loan, except for the purposes of servicing
the
Mortgage Loan as set forth in the GMAC-First Magnus Agreement. Either the
Mortgagor is a natural person or the Mortgagor is an inter-vivos trust
acceptable to Xxxxxx Mae;
(m) Each
Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Xxxxxx Xxx or
Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac
and qualified to do business in the jurisdiction where the Mortgaged Property
is
located, insuring (subject to the exceptions contained in (j)(1), (2) and (3)
above) the Company, its successors and assigns, as to the first priority lien
of
the Mortgage in the original principal amount of the Mortgage Loan.
Additionally, such policy affirmatively insures ingress and egress to and from
the Mortgaged Property. Where required by applicable state law or regulation,
the Mortgagor has been given the opportunity to choose the carrier of the
required mortgage title insurance. The Company, its successors and assigns,
are
the sole insureds of such lender’s title insurance policy, such title insurance
policy has been duly and validly endorsed to the Purchaser or the assignment
to
the Purchaser of the Company’s interest therein does not require the consent of
or notification to the insurer and such lender’s title insurance policy is in
full force and effect and will be in full force and effect upon the consummation
of the transactions contemplated by the GMAC-First Magnus Agreement and the
related Commitment Letter. No claims have been made under such lender’s title
insurance policy, and no prior holder of the related Mortgage, including the
Company, has done, by act or omission, anything which would impair the coverage
of such lender’s title insurance policy;
(n) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event permitting acceleration; and
neither the Company nor any prior mortgagee has waived any default, breach,
violation or event permitting acceleration;
(o) As
of the
related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights are outstanding
that
under law could give rise to such liens) affecting the related Mortgaged
Property which are or may be liens prior to or equal to the lien of the related
Mortgage;
(p) All
improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries
and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances;
(q) The
Mortgage Loan was originated by or for the Company. The Mortgage Loan complies
with all the terms, conditions and requirements of the Company’s Underwriting
Standards in effect at the time of origination of such Mortgage Loan. The
Mortgage Notes and Mortgages (exclusive of any riders) are on forms generally
acceptable to Xxxxxx Xxx or Xxxxxxx Mac. The Company is currently selling loans
to Xxxxxx Mae and/or Xxxxxxx Mac which are the same document forms as the
Mortgage Notes and Mortgages (inclusive of any riders). The Mortgage Loan bears
interest at the Mortgage Interest Rate set forth in the related Mortgage Loan
Schedule, and Monthly Payments under the Mortgage Note are due and payable
on
the first day of each month. The Mortgage contains the usual and enforceable
provisions of the originator at the time of origination for the acceleration
of
the payment of the unpaid principal amount of the Mortgage Loan if the related
Mortgaged Property is sold without the prior consent of the mortgagee
thereunder;
110
(r) As
of the
related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At
origination of the Mortgage Loan there was, and there currently is, no
proceeding pending for the total or partial condemnation of the Mortgaged
Property. There have not been any condemnation proceedings with respect to
the
Mortgaged Property and there are no such proceedings scheduled to commence
at a
future date;
(s) The
related Mortgage contains customary and enforceable provisions such as to render
the rights and remedies of the holder thereof adequate for the realization
against the Mortgaged Property of the benefits of the security provided thereby.
There is no homestead or other exemption available to the Mortgagor which would
interfere with the right to sell the Mortgaged Property at a trustee’s sale or
the right to foreclose the Mortgage;
(t) If
the
Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified
if required under applicable law to act as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses
are or will become payable by the Purchaser to the trustee under the deed of
trust, except in connection with a trustee’s sale or attempted sale after
default by the Mortgagor;
(u) The
Mortgage File contains an appraisal of the related Mortgaged Property signed
prior to the final approval of the mortgage loan application by a Qualified
Appraiser, who had no interest, direct or indirect, in the Mortgaged Property
or
in any loan made on the security thereof, and whose compensation is not affected
by the approval or disapproval of the Mortgage Loan, and the appraisal and
appraiser both satisfy the requirements of Xxxxxx Mae or Xxxxxxx Mac and Title
XI of FIRREA and the regulations promulgated thereunder, all as in effect on
the
date the Mortgage Loan was originated. The appraisal is in a form acceptable
to
Xxxxxx Mae or Xxxxxxx Mac;
(v) All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (B) (1) organized under the laws of such state, or
(2)
qualified to do business in such state, or (3) federal savings and loan
associations or national banks or a Federal Home Loan Bank or savings bank
having principal offices in such state, or (4) not doing business in such
state;
(w) As
of the
related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security
interest of any applicable security agreement or chattel mortgage referred
to in
(j) above and such collateral does not serve as security for any other
obligation;
(x) The
Mortgagor has received all disclosure materials required by applicable law
with
respect to the making of such mortgage loans;
(y) The
Mortgage Loan does not contain “graduated payment” features and does not have a
shared appreciation or other contingent interest feature; no Mortgage Loan
contains any buydown provisions;
(z) As
of the
related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor
is
not insolvent and the Company has no knowledge of any circumstances or condition
with respect to the Mortgage, the Mortgaged Property, the Mortgagor or the
Mortgagor’s credit standing that could reasonably be expected to cause investors
to regard the Mortgage Loan as an unacceptable investment, cause the Mortgage
Loan to become delinquent, or materially adversely affect the value or
marketability of the Mortgage Loan;
111
(aa) The
Mortgage Loans have an original term to maturity of not more than 30 years.,
with interest payable in arrears on the first day of each month. Each Mortgage
Note requires a monthly payment which is sufficient to fully amortize the unpaid
principal balance over the remaining term and to pay interest at the related
Mortgage Interest Rate. With respect to Mortgage Loans with an initial “interest
only” payment period, the monthly payments due under the related Mortgage Note
satisfy only the monthly interest on the unpaid principal balance of the
applicable Mortgage Loan. After the initial “interest only” period, each
Mortgage Note requires a monthly payment which is sufficient to fully amortize
the unpaid principal balance over the remaining term and to pay interest at
the
related Mortgage Interest Rate. In any case, no Mortgage Loan contains terms
or
provisions which would result in negative amortization.
(bb) If
a
Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Xxxxxx Mae Guides and will be
insured as to payment defaults by a Primary Mortgage Insurance Policy issued
by
a Qualified Insurer. All provisions of such Primary Mortgage Insurance Policy
have been and are being complied with, such policy is in full force and effect,
and all premiums due thereunder have been paid. No action, inaction, or event
has occurred and no state of facts exists that has, or will result in the
exclusion from, denial of, or defense to coverage. Any Mortgage Loan subject
to
a Primary Mortgage Insurance Policy obligates the Mortgagor thereunder to
maintain the Primary Mortgage Insurance Policy and to pay all premiums and
charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of any such
insurance premium. No Mortgage Loan is subject to a lender-paid mortgage
insurance policy;
(cc) As
to any
Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage
is
in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;
(dd) The
Mortgaged Property is located in the state identified in the related Mortgage
Loan Schedule and consists of a single parcel of real property with a detached
single family residence erected thereon, or a townhouse, or a two-to four-family
dwelling, or an individual condominium unit in a condominium project, or an
individual unit in a planned unit development or a de minimis planned unit
development, provided, however, that no residence or dwelling is a single parcel
of real property with a cooperative housing corporation erected thereon, or
a
mobile home. As of the date of origination, no portion of the Mortgaged Property
was used for commercial purposes, and since the date or origination no portion
of the Mortgaged Property has been used for commercial purposes;
(ee) Payments
of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan.
The Mortgage Note is payable on the first day of each month. After the initial
“interest only” payment period, if any, the Mortgage Note in payable in equal
monthly installments of principal and interest, with interest calculated and
payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated
maturity date, over an original term of not more than thirty years from
commencement of amortization;
(ff) The
Mortgage Loans may be subject to a Prepayment Penalty as identified on the
Mortgage Loan Schedule; however, no Mortgage Loan contains prepayment penalties
that extend beyond five years after the date of origination;
(gg) As
of the
related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to
be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities;
(hh) If
the
Mortgaged Property is a condominium unit or a planned unit development (other
than a de minimis planned unit development), or stock in a cooperative housing
corporation, such condominium, cooperative or planned unit development project
meets the eligibility requirements of Xxxxxx Xxx and Xxxxxxx Mac;
112
(ii) There
is
no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue;
there is no violation of any environmental law, rule or regulation with respect
to the Mortgaged Property; and nothing further remains to be done to satisfy
in
full all requirements of each such law, rule or regulation constituting a
prerequisite to use and enjoyment of said property;
(jj) The
Mortgagor has not notified the Company requesting relief under the
Servicemembers’ Civil Relief Act, formerly known as the Soldiers’ and Sailors’
Civil Relief Act of 1940, and the Company has no knowledge of any relief
requested or allowed to the Mortgagor under the Servicemembers’ Civil Relief
Act;
(kk) As
of the
related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged
Property;
(ll) No
action
has been taken or failed to be taken by the Company on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or
defense to coverage under any insurance policy related to a Mortgage Loan
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of
the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of the Company, or
for
any other reason under such coverage;
(mm) The
Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or similar institution which is supervised and examined
by a federal or state authority;
(nn) No
Mortgaged Property is subject to a ground lease;
(oo) With
respect to any broker fees collected and paid on any of the Mortgage Loans,
all
broker fees have been properly assessed to the Mortgagor and no claims will
arise as to broker fees that are double charged and for which the Mortgagor
would be entitled to reimbursement;
(pp) With
respect to any Mortgage Loan as to which an affidavit has been delivered to
the
Purchaser certifying that the original Mortgage Note has been lost or destroyed
and not been replaced, if such Mortgage Loan is subsequently in default, the
enforcement of such Mortgage Loan will not be materially adversely affected
by
the absence of the original Mortgage Note;
(qq) Each
Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A)
of
the Code and Treasury Regulations Section 1.860G-2(a)(1);
(rr) Except
as
provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and
required to be delivered on the related Closing Date have been delivered to
the
Purchaser or its designee all in compliance with the specific requirements
of
the GMAC-First Magnus Agreement. With respect to each Mortgage Loan, the Company
is in possession of a complete Mortgage File and Servicing File except for
such
documents as have been delivered to the Purchaser or its designee;
(ss) All
information supplied by, on behalf of, or concerning the Mortgagor is true,
accurate and complete and does not contain any statement that is or will be
inaccurate or misleading in any material respect;
(tt) There
does not exist on the related Mortgage Property any hazardous substances,
hazardous wastes or solid wastes, as such terms are defined in the Comprehensive
Environmental Response Compensation and Liability Act, the Resource Conservation
and Recovery Act of 1976, or other federal, state or local environmental
legislation;
(uu) All
disclosure materials required by applicable law with respect to the making
of
fixed rate and adjustable rate mortgage loans have been received by the
borrower;
(vv) No
Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more
than
95%;
113
(ww) None
of
the Mortgage Loans are subject to the Home Ownership and Equity Protection
Act
of 1994 or any comparable state law;
(xx) None
of
the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;
(yy) Any
principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having first lien priority by a title
insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Xxxxxx Xxx and
Xxxxxxx Mac. The consolidated principal amount does not exceed the original
principal amount of the Mortgage Loan;
(zz) Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
(aaa) No
Mortgage Loan is a balloon loan;
(bbb) With
respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such
MIN
is accurately provided on the Mortgage Loan Schedule. The related assignment
of
Mortgage to MERS has been duly and properly recorded;
(ccc) With
respect to each MERS Mortgage Loan, the Company has not received any notice
of
liens or legal actions with respect to such Mortgage Loan and no such notices
have been electronically posted by MERS;
(ddd) None
of
the Mortgaged
Properties are manufactured housing;
(eee) With
respect to each Mortgage Loan, the Company has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian
and Trans Union Credit Information Company, in accordance with the Fair Credit
Reporting Act and its implementing regulations;
(fff) The
Company has complied with all applicable anti-money laundering laws and
regulations, including without limitation the USA Patriot Act of 2001
(collectively, the “Anti-Money Laundering Laws”); the Company has established an
anti-money laundering compliance program as required by the Anti-Money
Laundering Laws, has conducted the requisite due diligence in connection with
the origination of each Mortgage Loan for purposes of the Anti-Money Laundering
Laws, including with respect to the legitimacy of the applicable Mortgagor
and
the origin of the assets used by the said Mortgagor to purchase the property
in
question, and maintains, and will maintain, sufficient information to identify
the applicable Mortgagor for purposes of the Anti-Money Laundering
Laws;
(ggg) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
(hhh) No
Mortgage Loan is “high cost” as defined by any applicable federal, state, or
local predatory or abusive lending law and no mortgage loan is a “high cost” or
“covered” mortgage loan, as applicable (as such terms are defined in the then
current Standard and Poor’s LEVELS Glossary which is now Version 6.0, Appendix
E). Any breach of this representation shall be deemed to materially and
adversely affect the value of the Mortgage Loan and shall require a repurchase
of the affected Mortgage Loan;
(iii) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act. Any breach of this representation
shall be deemed to materially and adversely affect the value of the Mortgage
Loan and shall require a repurchase of the affected Mortgage Loan;
114
(jjj) No
Mortgage Loan which is secured by property located in the State of New Jersey
is
a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which
became effective November 27, 2003;
(kkk) No
Mortgage Loan which is secured by property located in the State of New Mexico
is
a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
which became effective January 1, 2004;
(lll) No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003;
(mmm)
No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004;
(nnn)
No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.);
(ooo) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005; and
(ppp) There
were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
115
XVI.
|
With
respect to Mortgage Loans purchased under the Master Mortgage Loan
Purchase and Interim Servicing Agreement between Greenwich Capital
Financial Products, Inc. ("Greenwich") and HomeBanc Mortgage Corporation
dated as of November 1, 2001 (the "HomeBanc Purchase Agreement")
and the
Servicing Agreement, dated as of March 1, 2002 between Greenwich
and
Alliance Mortgage Company and amended by Amendment No. One thereto,
dated
as of April 1, 2002 (collectively, the “Alliance Servicing Agreement” and
together with the HomeBanc Purchase Agreement, the "HomeBanc/Alliance
Agreements").
|
With
respect to each Mortgage Loan, RWT Holdings, Inc. (“RWT”) hereby makes the
following representations and warranties. Such representations and warranties
speak as of the Closing Date with respect to Pledged Mortgages (as such
capitalized terms are defined in the Indenture), unless otherwise indicated.
Capitalized terms are as defined in this Exhibit X (IV) or in the HomeBanc
Purchase Agreement.
(i)
The
information set forth in the related Mortgage Loan Schedule is complete, true
and correct and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(ii)
The
Mortgage Loan is in compliance with all requirements set forth in the related
Confirmation, and the characteristics of the related Mortgage Loan Package
as
set forth in the related Confirmation are true and correct, provided, however,
that in the event of any conflict between the terms of any Confirmation and
the
HomeBanc Purchase Agreement, the terms of the HomeBanc Purchase Agreement shall
control;
(iii)
All
payments required to be made up to the close of business on the Closing Date
for
such Mortgage Loan under the terms of the Mortgage Note have been made; the
Seller has not advanced funds, or induced, solicited or knowingly received
any
advance of funds from a party other than the owner of the related Mortgaged
Property, directly or indirectly, for the payment of any amount required by
the
Mortgage Note or Mortgage; and there has been no delinquency, exclusive of
any
period of grace, in any payment by the Mortgagor thereunder since the
origination of the Mortgage Loan;
(iv)
To
RWT's knowledge, there are no delinquent taxes, ground rents, water charges,
sewer rents, assessments, insurance premiums, leasehold payments, including
assessments payable in future installments or other outstanding charges
affecting the related Mortgaged Property;
(v)
The
terms of the Mortgage Note and the Mortgage have not been impaired, waived,
altered or modified in any respect, except by written instruments, recorded
in
the applicable public recording office if necessary to maintain the lien
priority of the Mortgage, and which have been delivered to the Custodian; the
substance of any such waiver, alteration or modification has been approved
by
the insurer under the Primary Insurance Policy, if any, and the title insurer,
to the extent required by the related policy, and is reflected on the related
Mortgage Loan Schedule. No instrument of waiver, alteration or modification
has
been executed, and no Mortgagor has been released, in whole or in part, except
in connection with an assumption agreement approved by the insurer under the
Primary Insurance Policy, if any, and the title insurer, to the extent required
by the policy, and which assumption agreement has been delivered to the
Custodian and the terms of which are reflected in the related Mortgage Loan
Schedule;
(vi)
The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will
the
operation of any of the terms of the Mortgage Note and the Mortgage, or the
exercise of any right thereunder, render the Mortgage unenforceable, in whole
or
in part, or subject to any right of rescission, set-off, counterclaim or
defense, including the defense of usury and, to RWT's knowledge, no such right
of rescission, set-off, counterclaim or defense has been asserted with respect
thereto;
(vii)
All
buildings upon the Mortgaged Property are insured by an insurer acceptable
to
FNMA and FHLMC against loss by fire, hazards of extended coverage and such
other
hazards as are customary in the area where the Mortgaged Property is located,
pursuant to insurance policies conforming to the requirements of the Servicing
Addendum. All such insurance policies contain a standard mortgagee clause naming
the Seller, its successors and assigns as mortgagee and, to RWT's knowledge,
all
premiums thereon have been paid. If the Mortgaged Property is in an area
identified on a Flood Hazard Map or Flood Insurance Rate Map issued by the
Federal Emergency Management Agency as having special flood hazards (and such
flood insurance has been made available) a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
is in effect which policy conforms to the requirements of FNMA and FHLMC. The
Mortgage obligates the Mortgagor thereunder to maintain all such insurance
at
the Mortgagor’s cost and expense, and on the Mortgagor’s failure to do so,
authorizes the holder of the Mortgage to maintain such insurance at Mortgagor’s
cost and expense and to seek reimbursement therefor from the
Mortgagor;
116
(viii)
Any and all requirements of any federal, state or local law including, without
limitation, usury, truth in lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity, fair housing or disclosure laws
applicable to the origination and servicing of mortgage loans of a type similar
to the Mortgage Loans have been complied with;
(ix)
The
Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole
or in part, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part, nor has any instrument been executed that
would effect any such satisfaction, cancellation, subordination, rescission
or
release;
(x)
The
Mortgage is a valid, existing and enforceable first lien on the Mortgaged
Property,
including all improvements on the Mortgaged Property subject only to (a) the
lien of current real property taxes and assessments not yet due and payable,
(b)
covenants, conditions and restrictions, rights of way, easements and other
matters of the public record as of the date of recording being acceptable to
mortgage lending institutions generally and specifically referred to in the
lender’s title insurance policy delivered to the originator of the Mortgage Loan
and which do not adversely affect the Appraised Value of the Mortgaged Property,
and (c) other matters to which like properties are commonly subject which do
not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates a valid, existing and enforceable first lien and first
priority security interest on the property described therein and the Seller
has
full right to sell and assign the same to the Purchaser. The Mortgaged Property
was not, as of the date of origination of the Mortgage Loan, subject to a
mortgage, deed of trust, deed to secure debt or other security instrument
creating a lien subordinate to the lien of the Mortgage;
(xi)
The
Mortgage Note and the related Mortgage are genuine and each is the legal, valid
and binding obligation of the maker thereof, enforceable in accordance with
its
terms;
(xii)
All
parties to the Mortgage Note and the Mortgage had legal capacity to enter into
the Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage,
and the Mortgage Note and the Mortgage have been duly and properly executed
by
such parties. The Mortgagor is a natural person;
(xiii)
The proceeds of the Mortgage Loan have been fully disbursed to or for the
account of the Mortgagor and there is no obligation for the Mortgagee to advance
additional funds thereunder and any and all requirements as to completion of
any
on-site or off-site improvement and as to disbursements of any escrow funds
therefor have been complied with. All costs, fees and expenses incurred in
making or closing the Mortgage Loan and the recording of the Mortgage have
been
paid, and the Mortgagor is not entitled to any refund of any amounts paid or
due
to the Mortgagee pursuant to the Mortgage Note or Mortgage;
(xiv)
The
Seller is the sole legal, beneficial and equitable owner of the Mortgage Note
and the Mortgage and has full right to transfer and sell the Mortgage Loan
to
the Purchaser free and clear of any encumbrance, equity, lien, pledge, charge,
claim or security interest;
117
(xv)
All
parties which have had any interest in the Mortgage Loan, whether as
mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) in compliance with any and all applicable
“doing business” and licensing requirements of the laws of the state wherein the
Mortgaged Property is located;
(xvi)
The
Mortgage Loan is covered by an American Land Title Association (“ALTA”) lender’s
title insurance policy (which, in the case of an Adjustable Rate Mortgage Loan
has an adjustable rate mortgage endorsement in the form of ALTA 6.0 or 6.1)
acceptable to FNMA and FHLMC, issued by a title insurer acceptable to FNMA
and
FHLMC and qualified to do business in the jurisdiction where the Mortgaged
Property is located, insuring (subject to the exceptions contained in (x)(a)
and
(b) above) the Seller, its successors and assigns as to the first priority
lien
of the Mortgage in the original principal amount of the Mortgage Loan and,
with
respect to any Adjustable Rate Mortgage Loan, against any loss by reason of
the
invalidity or unenforceability of the lien resulting from the provisions of
the
Mortgage providing for adjustment in the Mortgage Interest Rate and Monthly
Payment. Additionally, such lender’s title insurance policy affirmatively
insures ingress and egress to and from the Mortgaged Property, and against
encroachments by or upon the Mortgaged Property or any interest therein. The
Seller is the sole insured of such lender’s title insurance policy, and such
lender’s title insurance policy is in full force and effect and will be in full
force and effect upon the consummation of the transactions contemplated by
the
HomeBanc Purchase Agreement. To RWT's knowledge, no claims have been made under
such lender’s title insurance policy, and no prior holder of the related
Mortgage, including the Seller, has done, by act or omission, anything which
would impair the coverage of such lender’s title insurance policy;
(xvii)
There is no default, breach, violation or event of acceleration existing under
the Mortgage or the Mortgage Note and, to RWT's knowledge, no event which,
with
the passage of time or with notice and the expiration of any grace or cure
period, would constitute a default, breach, violation or event of acceleration,
and the Seller has not waived any default, breach, violation or event of
acceleration;
(xviii)
There are no mechanics’ or similar liens or claims which have been filed for
work, labor or material (and no rights are outstanding that under law could
give
rise to such lien) affecting the related Mortgaged Property which are or may
be
liens prior to, or equal or coordinate with, the lien of the related Mortgage;
(xix)
Except to the extent affirmatively insured under an ALTA lender’s title
insurance policy issued in conformance with subsection (xv) above, to RWT's
knowledge, all improvements which were considered in determining the Appraised
Value of the related Mortgaged Property lay wholly within the boundaries and
building restriction lines of the Mortgaged Property and no improvements on
adjoining properties encroach upon the Mortgaged Property;
(xx)
The
Mortgage Loan was originated by the Seller or by a savings and loan association,
a savings bank, a commercial bank or similar banking institution which is
supervised and examined by a federal or state authority, or by a mortgagee
approved as such by the Secretary of HUD;
(xxi)
Principal payments on the Mortgage Loan commenced no more than sixty days after
the proceeds of the Mortgage Loan were disbursed. The Mortgage Loan bears
interest at the Mortgage Interest Rate. With respect to each Mortgage Loan,
the
Mortgage Note is payable on the first day of each month in Monthly Payments,
which, in the case of a Fixed Rate Mortgage Loans, are sufficient to fully
amortize the original principal balance over the original term thereof and
to
pay interest at the related Mortgage Interest Rate, and, in the case of an
Adjustable Rate Mortgage Loan, are changed on each Adjustment Date, and in
any
case, are sufficient to fully amortize the original principal balance over
the
original term thereof and to pay interest at the related Mortgage Interest
Rate.
The Index for each Adjustable Rate Mortgage Loan is as defined in the related
Confirmation. The Mortgage Note does not permit negative amortization. No
Mortgage Loan is a Convertible Mortgage Loan;
118
(xxii)
The origination and collection practices used by the Seller with respect to
each
Mortgage Note and Mortgage have been in all respects legal, proper, prudent
and
customary in the mortgage origination and servicing industry. The Mortgage
Loan
has been serviced by the Seller and any predecessor servicer in accordance
with
the terms of the Mortgage Note. With respect to escrow deposits and Escrow
Payments, if any, all such payments are in the possession of, or under the
control of, the Seller and there exist no deficiencies in connection therewith
for which customary arrangements for repayment thereof have not been made.
No
escrow deposits or Escrow Payments or other charges or payments due the Seller
have been capitalized under any Mortgage or the related Mortgage Note and no
such escrow deposits or Escrow Payments are being held by the Seller for any
work on a Mortgaged Property which has not been completed;
(xxiii)
To RWT's knowledge, the Mortgaged Property is free of damage and waste and,
to
RWT's knowledge, there is no proceeding pending for the total or partial
condemnation thereof;
(xxiv)
The Mortgaged Property has not been subject to any bankruptcy proceeding or
foreclosure proceeding and the Mortgagor has not filed for protection under
applicable bankruptcy laws. There is no homestead or other exemption available
to the Mortgagor which would interfere with the right to sell the Mortgaged
Property at a trustee’s sale or the right to foreclose the Mortgage. The
Mortgagor has not notified the Seller and the Seller has no knowledge of any
relief requested or allowed to the Mortgagor under the Soldiers and Sailors
Civil Relief Act of 1940;
(xxv)
The
Mortgage Loan was underwritten in accordance with the underwriting standards
of the Seller in effect at the time the Mortgage Loan was originated which
underwriting standards satisfy the standards of FNMA and FHLMC; and the Mortgage
Note and Mortgage are on forms acceptable to FNMA and FHLMC;
(xxvi)
The Mortgage Note is not and has not been secured by any collateral except
the
lien of the corresponding Mortgage on the Mortgaged Property and the security
interest of any applicable security agreement or chattel mortgage referred
to in
(x) above;
(xxvii)
The Mortgage File contains an appraisal of the related Mortgaged Property which
satisfied the standards of FNMA and FHLMC and was made and signed, prior to
the
approval of the Mortgage Loan application, by a qualified appraiser, duly
appointed by the Seller, who had no interest, direct or indirect in the
Mortgaged Property or in any loan made on the security thereof, whose
compensation is not affected by the approval or disapproval of the Mortgage
Loan
and who met the minimum qualifications of FNMA and FHLMC. Each appraisal of
the
Mortgage Loan was made in accordance with the relevant provisions of the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989;
(xxviii)
In the event the Mortgage constitutes a deed of trust, a trustee, duly qualified
under applicable law to serve as such, has been properly designated and
currently so serves and is named in the Mortgage, and no fees or expenses are
or
will become payable by the Purchaser to the trustee under the deed of trust,
except in connection with a trustee’s sale after default by the
Mortgagor;
(xxix)
No
Mortgage Loan contains provisions pursuant to which Monthly Payments are (a)
paid or partially paid with funds deposited in any separate account established
by the Seller, the Mortgagor, or anyone on behalf of the Mortgagor, (b) paid
by
any source other than the Mortgagor or (c) contains any other similar provisions
which may constitute a “buydown” provision. The Mortgage Loan is not a graduated
payment mortgage loan and the Mortgage Loan does not have a shared appreciation
or other contingent interest feature;
(xxx)
The
Mortgagor has executed a statement to the effect that the Mortgagor has received
all disclosure materials required by applicable law with respect to the making
of fixed rate mortgage loans in the case of Fixed Rate Mortgage Loans, and
adjustable rate mortgage loans in the case of Adjustable Rate Mortgage Loans
and
rescission materials with respect to Refinanced Mortgage Loans, and such
statement is and will remain in the Mortgage File;
119
(xxxi)
No
Mortgage Loan was made in connection with (a) the construction or rehabilitation
of a Mortgaged Property or (b) facilitating the trade-in or exchange of a
Mortgaged Property;
(xxxii)
RWT has no knowledge of any circumstances or condition with respect to the
Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit
standing that can reasonably be expected to cause the Mortgage Loan to be an
unacceptable investment, cause the Mortgage Loan to become delinquent, or
adversely affect the value of the Mortgage Loan;
(xxxiii)
No Mortgage Loan had an LTV at origination in excess of 95%. Each Mortgage
Loan
with an LTV at origination in excess of 80% is and will be subject to a Primary
Insurance Policy, issued by a Qualified Insurer, which insures that portion
of
the Mortgage Loan in excess of the portion of the Appraised Value of the
Mortgaged Property as required by FNMA. To
the
knowledge of RWT, all
provisions of such Primary Insurance Policy have been and are being complied
with, such policy is in full force and effect, and, to
the
knowledge of RWT,
all
premiums due thereunder have been paid. Any Mortgage subject to any such Primary
Insurance Policy obligates the Mortgagor thereunder to maintain such insurance
and to pay all premiums and charges in connection therewith. The Mortgage
Interest Rate for the Mortgage Loan does not include any such insurance
premium;
(xxxiv)
The Mortgaged Property is lawfully occupied under applicable law; all
inspections, licenses and certificates required to be made or issued with
respect to all occupied portions of the Mortgaged Property and, with respect
to
the use and occupancy of the same, including but not limited to certificates
of
occupancy, have been made or obtained from the appropriate
authorities;
(xxxv)
No
error, omission, misrepresentation, negligence, fraud or similar occurrence
with
respect to a Mortgage Loan has taken place on the part of any person, including
without limitation the Mortgagor, any appraiser, any builder or developer,
or
any other party involved in the origination of the Mortgage Loan or in the
application of any insurance in relation to such Mortgage Loan;
(xxxvi)
The Assignment of Mortgage is in recordable form and is acceptable for recording
under the laws of the jurisdiction in which the Mortgaged Property is
located;
(xxxvii)
Any principal advances made to the Mortgagor prior to the Cut-off Date have
been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having first lien priority by a title
insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to FNMA and FHLMC.
The consolidated principal amount does not exceed the original principal amount
of the Mortgage Loan;
(xxxviii)
No Mortgage Loan has a balloon payment feature;
(xxxix)
If the Residential Dwelling on the Mortgaged Property is a condominium unit
or a
unit in a planned unit development (other than a de minimis planned unit
development) such condominium or planned unit development project meets the
eligibility requirements of FNMA and FHLMC; (xl) No Mortgage Loan which is
a
Cash-out Refinancing was originated in the State of Texas;
(xli)
The
source of the down payment with respect to each Mortgage Loan has been fully
verified by the Seller;
120
(xlii)
Interest on each Mortgage Loan is calculated on the basis of a 360-day year
consisting
of twelve 30-day months;
(xliii)
To the best of RWT's knowledge, the Mortgaged Property is in material compliance
with all applicable environmental laws pertaining to environmental hazards
including, without limitation, asbestos, and neither the Seller nor, to RWT's
knowledge, the related Mortgagor, has received any notice of any violation
or
potential violation of such law;
(xliv)
The Seller shall, at its own expense, cause each Mortgage Loan to be covered
by
a Tax Service Contract which is assignable to the Purchaser or its designee;
provided however, that if the Seller fails to purchase such Tax Service
Contract, the Seller shall be required to reimburse the Purchaser for all costs
and expenses incurred by the Purchaser in connection with the purchase of any
such Tax Service Contract;
(xlv)
Each Mortgage Loan is covered by a Flood Zone Service Contract which is
assignable
to the Purchaser or its designee or, for each Mortgage Loan not covered by
such
Flood Zone Service Contract, the Seller agrees to purchase such Flood Zone
Service Contract;
(xlvi)
No
Mortgage Loan is subject to the provisions of the Homeownership and Equity
Protection Act of 1994 (“HOEPA”) and no Mortgage Loan is “high cost” as defined
by any applicable federal, state or local predatory or abusive lending law,
and
no mortgage loan is a “high cost” or “covered” mortgage loan, as applicable (as
such terms are defined in the then current Standard and Poor’s LEVELS Glossary
which is now Version 6.0, Appendix E);
(xlvii)
No predatory or deceptive lending practices, including but not limited to,
the
extension of credit to the mortgagor without regard for the mortgagor’s ability
to repay the Mortgage Loan and the extension of credit to the mortgagor which
has no apparent benefit to the mortgagor, were employed by the originator of
the
Mortgage Loan in connection with the origination of the Mortgage
Loan;
(xlviii)
None of the proceeds of any Mortgage Loan were used to finance the purchase
of
single premium credit insurance policies;
(xlix) No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(l) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC;
(li) There
were no adverse selection procedures used in selecting the Mortgage Loan from
among the residential mortgage loans which were available for inclusion in
the
Mortgage Loans; and
(lii) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state and federal laws, including, but not limited to, all
applicable predatory or abusive lending laws.
121
XVII.
|
With
respect to Mortgage Loans purchased under the Seller’s Warranties and
Servicing Agreement, dated as of June 1, 2007 (WFHM 2007-W24) by
and
between Redwood Trust, Inc. and Xxxxx Fargo Bank, N.A. (the "Redwood-Xxxxx
Fargo Agreement")
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the Redwood-Xxxxx
Fargo Agreement.
(a) |
Mortgage
Loans as Described.
|
The
information set forth in the Mortgage Loan Schedule attached hereto as
Exhibit
A
and the information contained on the Data File Fields contained on the Data
File
delivered to the Purchaser are true and correct; provided that the Company
makes
no representation or warranty as to the accuracy of Unverified Information;
and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(b) |
Payments
Current.
|
All
payments required to be made up to the Cut-off Date for the Mortgage Loan
under
the
terms of the Mortgage Note have been made and credited. No payment under
any
Mortgage Loan has been thirty (30) days delinquent more than one (1)
time
within twelve (12) months prior to the Closing Date;
(c) |
No
Outstanding Charges.
|
There
are
no defaults in complying with the terms of the Mortgages, and all taxes,
governmental
assessments, insurance premiums, leasehold payments, water, sewer
and
municipal charges, which previously became due and owing have
been paid,
or
an escrow of funds has been established in an amount sufficient to pay for
every
such item which remains unpaid and which has been assessed but is not
yet due
and
payable. The Company has not advanced funds, or induced, or solicited
directly
or indirectly, the payment of any amount required under the Mortgage
Loan,
except for interest accruing from the date of the Mortgage Note or date of
disbursement
of the Mortgage Loan proceeds, whichever is later, to the day which precedes
by one month the Due Date of the first installment of principal and interest;
(d) |
Original
Terms Unmodified.
|
The
terms
of the Mortgage Note and Mortgage have not been impaired, waived, altered
or modified in any respect, except by a written instrument which has
been recorded
or registered with the MERS System, if necessary, to protect the interests
of the Purchaser and is retained by the Company in the Retained Mortgage
File; and the related Mortgage Note which has been delivered to the Custodian.
The substance of any such waiver, alteration or modification has been
approved
by the issuer of any related PMI Policy and the title insurer, to
the extent
required by the policy, and its terms are reflected on the related Mortgage
Loan
Schedule. No Mortgagor has been released, in whole or in part, except in
connection
with an assumption agreement approved by the issuer of any related PMI
Policy and the title insurer, to the extent required by the policy, and which
assumption
agreement is part of the Custodial Mortgage File delivered to the Custodian
and the terms of which are reflected in the related Mortgage Loan Schedule;
122
(e) |
No
Defenses.
|
The
Mortgage Loan is not subject to any right of rescission, set-off, counterclaim
or
defense, including without limitation the defense of usury, nor will the
operation
of any of the terms of the Mortgage Note or the Mortgage, or the exercise
of any right thereunder, render either the Mortgage Note or the Mortgage
unenforceable,
in whole or in part, or subject to any right of rescission, set-off,
counterclaim
or defense, including without limitation the defense of usury, and no
such
right of rescission, set-off, counterclaim or defense has been asserted with
respect
thereto;
(f) |
No
Satisfaction of Mortgage.
|
The
Mortgage has not been satisfied, canceled, subordinated or rescinded, in
whole
or
in part, and the Mortgaged Property has not been released from the lien
of
the
Mortgage, in whole or in part, nor has any instrument been executed that
would
effect any such satisfaction, release, cancellation, subordination or
rescission;
(g) |
Validity
of Mortgage Documents.
|
The
Mortgage Note and the Mortgage and related documents are genuine, and
each
is
the legal, valid and binding obligation of the maker thereof enforceable in
accordance
with its terms. All parties to the Mortgage Note and the Mortgage had
legal
capacity to enter into the Mortgage Loan and to execute and deliver the
Mortgage
Note and the Mortgage, and the Mortgage Note and the Mortgage have been
duly
and properly executed by such parties. The Company has reviewed all documents
constituting the Retained Mortgage File and Custodial Mortgage File and
has
made such inquiries as it deems necessary to make and confirm the accuracy
of the representations set forth herein;
With
respect to each Cooperative Loan, the Mortgage Note, the Mortgage, the
Pledge
Agreement, and related documents are genuine, and each is the legal, valid
and
binding obligation of the maker thereof enforceable in accordance with its
terms.
All parties to the Mortgage Note, the Mortgage, the Pledge
Agreement, the
Proprietary Lease, the Stock Power, Recognition Agreement and the Assignment
of Proprietary Lease had legal capacity to enter into the Mortgage Loan
and
to execute and deliver such documents, and such documents have been duly
and
properly executed by such parties;
(h) |
No
Fraud.
|
No
error,
omission, misrepresentation, negligence, fraud or similar occurrence
with
respect to a Mortgage Loan has taken place on the part of the Company, or
the
Mortgagor (except with respect to the accuracy of Unverified Information),
or
to
the
best of the Company’s knowledge, any appraiser, any builder, or any developer,
or any other party involved in the origination of the Mortgage Loan or
in
the
application of any insurance in relation to such Mortgage Loan;
123
(i) |
Compliance
with Applicable Laws.
|
Any
and
all requirements of any federal, state or local law including, without
limitation,
usury, truth-in-lending, real estate settlement procedures, consumer
credit
protection and privacy, equal credit opportunity, disclosure or predatory
and
abusive lending laws applicable to the Mortgage Loan have been complied
with.
All
inspections, licenses and certificates required to be made or issued with
respect
to all occupied portions of the Mortgaged Property and, with respect to the
use
and
occupancy of the same, including, but not limited to, certificates of
occupancy
and fire underwriting certificates, have been made or obtained from the
appropriate authorities;
(j) |
Location
and Type of Mortgaged Property.
|
The
Mortgaged Property is located in the state identified in the related Mortgage
Loan
Schedule and consists of a contiguous parcel of real property with a
detached
single family residence erected thereon, or a two- to four-family dwelling,
or an individual condominium unit in a condominium project, or a Cooperative
Apartment, or an individual unit in a planned unit development or a townhouse,
provided, however, that any condominium project or planned unit development
shall conform to the applicable Xxxxxx Mae or Xxxxxxx Mac requirements,
the Company Underwriting Guidelines (other than the exception identified
for Exception Mortgage Loans) or the Third-Party Underwriting Guidelines,
as applicable, regarding such dwellings, and no residence or dwelling
is
a
mobile home or manufactured dwelling. As of the respective appraisal date
for
each
Mortgaged Property, any Mortgaged Property being used for commercial
purposes
conforms to the Company Underwriting Guidelines (other than the exception
identified for Exception Mortgage Loans) or the Third-Party Underwriting
Guidelines, as applicable and, to the best of the Company’s knowledge,
since the date of such appraisal, no portion of the Mortgaged Property
was
being
used for commercial purposes outside of the Company Underwriting Guidelines
(other than the exception identified for Exception Mortgage Loans) or
the
Third-Party Underwriting Guidelines, as applicable;
(k) |
Valid
First Lien.
|
The
Mortgage is a valid, subsisting and enforceable first lien on the Mortgaged
Property,
including all buildings on the Mortgaged Property and all installations
and
mechanical, electrical, plumbing, heating and air conditioning systems
located
in or annexed to such buildings, and all additions, alterations and replacements
made at any time with respect to the foregoing. The lien of the Mortgage
is subject only to:
(1) |
the
lien of current real property taxes and assessments not yet due and
payable;
|
(2) |
covenants,
conditions and restrictions, rights of way, easements and other
matters
of the public record as of the date of recording acceptable to
mortgage
lending institutions generally and specifically referred to in the
lender's
title insurance policy delivered to the originator of the Mortgage
Loan
and (i) referred to or otherwise considered in the appraisal made
for the
originator of the Mortgage Loan and (ii) which do not adversely affect
the
Appraised Value of the Mortgaged Property set forth in such appraisal;
and
|
124
(3) |
other
matters to which like properties are commonly subject which do not
materially
interfere with the benefits of the security intended to be provided
by the mortgage or the use, enjoyment, value or marketability of
the
related Mortgaged Property.
|
Any
security agreement, chattel mortgage or equivalent document related to and
delivered
in connection with the Mortgage Loan establishes and creates a valid,
subsisting
and enforceable first lien and first priority security interest on the
property
described therein and the Company has full right to sell and assign the
same
to
the Purchaser;
With
respect to each Cooperative Loan, each Pledge Agreement creates a valid,
enforceable
and subsisting first security interest in the Cooperative Shares and
Proprietary
Lease, subject only to (i) the lien of the related Cooperative for unpaid
assessments
representing the Mortgagor’s pro rata share of the Cooperative’s payments
for its blanket mortgage, current and future real property taxes, insurance
premiums, maintenance fees and other assessments to which like collateral
is commonly subject and (ii) other matters to which like collateral is
commonly
subject which do not materially interfere with the benefits of the security
intended to be provided by the Pledge Agreement; provided, however, that
the
appurtenant Proprietary Lease may be subordinated or otherwise subject
to
the
lien of any mortgage on the Project;
(l) |
Full
Disbursement of Proceeds.
|
The
proceeds of the Mortgage Loan have been fully disbursed, except for escrows
established
or created due to seasonal weather conditions, and there is no requirement
for future advances thereunder. All costs, fees and expenses incurred
in
making
or closing the Mortgage Loan and the recording of the Mortgage were paid,
and
the Mortgagor is not entitled to any refund of any amounts paid or due
under
the
Mortgage Note or Mortgage;
(m) |
Consolidation
of Future Advances.
|
Any
future advances made prior to the Cut-off Date, have been consolidated
with the
outstanding principal amount secured by the Mortgage, and the secured
principal
amount, as consolidated, bears a single interest rate and single repayment
term reflected on the related Mortgage Loan Schedule. The lien of the
Mortgage
securing the consolidated principal amount is expressly insured as having
first lien priority by a title insurance policy, an endorsement to the policy
insuring
the mortgagee’s consolidated interest or by other title evidence acceptable
to Xxxxxx Mae or Xxxxxxx Mac; the consolidated principal amount does
not
exceed the original principal amount of the Mortgage Loan; the Company
shall
not
make future advances after the Cut-off Date;
(n) |
Ownership.
|
The
Company is the sole owner of record and holder of the Mortgage Loan and
the
related Mortgage Note and the Mortgage are not assigned or pledged, and the
Company
has good and marketable title thereto and has full right and authority to
transfer
and sell the Mortgage Loan to the Purchaser. The Company is transferring
the Mortgage Loan free and clear of any and all encumbrances, liens,
pledges,
equities, participation interests, claims, charges or security interests of
any
nature encumbering such Mortgage Loan;
125
(o) |
Origination/Doing
Business.
|
The
Mortgage Loan was originated by a savings and loan association, a savings
bank,
a
commercial bank, a credit union, an insurance company, or similar institution
that is supervised and examined by a federal or state authority or by a
mortgagee
approved by the Secretary of Housing and Urban Development pursuant
to Sections 203 and 211 of the National Housing Act. All parties which
have
had
any interest in the Mortgage Loan, whether as mortgagee, assignee, pledgee
or otherwise, are (or, during the period in which they held and disposed
of
such
interest, were) (1) in compliance with any and all applicable licensing
requirements
of the laws of the state wherein the Mortgaged Property is located, and
(2)
organized under the laws of such state, or (3) qualified to do business in
such
state, or (4) federal savings and loan associations or national banks having
principal
offices in such state, or (5) not doing business in such state;
(p) |
LTV,
PMI Policy.
|
No
Mortgage Loan has an LTV greater than 95%. Except as set forth on the
related
Data File, each Mortgage Loan with an LTV greater than 80% at the time
of
origination, a portion of the unpaid principal balance of the Mortgage Loan
is
and
will
be insured as to payment defaults by a PMI Policy. If the Mortgage Loan
is
insured by a PMI Policy which is not an LPMI Policy, the coverage will remain
in
place
until (i) the LTV decreases to 78% or (ii) the PMI Policy is otherwise
terminated
pursuant to the Homeowners Protection Act of 1998, 12 USC §4901, et
seq.
All provisions of such PMI Policy or LPMI Policy have been and are being
complied with, such policy is in full force and effect, and all premiums due
thereunder
have been paid. The Qualified Insurer has a claims paying ability acceptable
to Xxxxxx Mae or Xxxxxxx Mac. Any Mortgage Loan subject to a PMI Policy
or
LPMI Policy obligates the Mortgagor or the Company to maintain the PMI
Policy or LPMI Policy, as applicable, and to pay all premiums and charges
in
connection therewith. The Mortgage Interest Rate for the Mortgage Loan as
set
forth
on the related Mortgage Loan Schedule is net of any such insurance premium;
(q) |
Title
Insurance.
|
The
Mortgage Loan is covered by an ALTA lender's title insurance policy (or in
the
case
of any Mortgage Loan secured by a Mortgaged Property located in a jurisdiction
where such policies are generally not available, an opinion of counsel
of
the
type customarily rendered in such jurisdiction in lieu of title insurance)
or
other
generally acceptable form of policy of insurance acceptable to Xxxxxx Xxx
or
Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac
and
qualified to do business in the jurisdiction where the Mortgaged Property is
located,
insuring the Company, its successors and assigns, as to the first priority
lien
of
the Mortgage in the original principal amount of the Mortgage Loan, subject
only to the exceptions contained in clauses (1), (2) and (3) of subclause
(k)
of
this Section 3.02, and against any loss by reason of the invalidity or
unenforceability
of the lien resulting from the provisions of the Mortgage providing
for adjustment to the Mortgage Interest Rate and Monthly Payment. The
Company is the sole insured of such lender's title insurance policy, and such
lender's
title insurance policy is in full force and effect and will be in force and
effect
upon the consummation of the transactions contemplated by the Redwood-Xxxxx
Fargo Agreement. No claims have been made under such lender's title insurance
policy, and
no
prior holder of the Mortgage, including the Company, has done, by act or
omission,
anything which would impair the coverage of such lender's title insurance
policy;
126
(r) |
No
Defaults.
|
There
is
no default, breach, violation or event of acceleration existing under the
Mortgage
or the Mortgage Note and no event which, with the passage of time or
with
notice and the expiration of any grace or cure period, would constitute a
default,
breach, violation or event of acceleration, and neither the Company nor
its
predecessors have waived any default, breach, violation or event of acceleration;
(s) |
No
Mechanics' Liens.
|
There
are
no mechanics' or similar liens or claims which have been filed for work,
labor
or
material (and no rights are outstanding that under the law could give rise
to
such
liens) affecting the related Mortgaged Property which are or may be liens
prior
to,
or equal or coordinate with, the lien of the related Mortgage which are
not
insured against by the title insurance policy referenced in subclause (q) of
Section 3.02 of the Redwood-Xxxxx Fargo Agreement;
(t) |
Location
of Improvements; No Encroachments.
|
Except
as
insured against by the title insurance policy referenced in subclause (q)
of
Section 3.02 of the Redwood-Xxxxx Fargo Agreement, all improvements which were
considered in determining the Appraised Value of the Mortgaged Property lay
wholly within the boundaries and building restriction lines of the Mortgaged
Property and no improvements on adjoining properties encroach upon the Mortgaged
Property. No improvement located on or being part of the Mortgaged Property
is
in violation of any applicable zoning law or regulation;
(u) |
Payment
Terms.
|
Except
with respect to the Interest Only Mortgage Loans, principal payments
commenced
no more than sixty (60) days after the funds were disbursed to the Mortgagor
in connection with the Mortgage Loan. Except with respect to the Interest
Only Mortgage Loans, each Mortgage Loan is payable in equal monthly installments
of principal and interest, with interest calculated and payable in arrears,
sufficient to amortize the Mortgage Loan fully by the stated maturity date
set
forth
in the Mortgage Note over an original term to maturity of not more than
thirty
(30) years. As to each Adjustable Rate Mortgage Loan on each applicable
Adjustment
Date, the Mortgage Interest Rate will be adjusted to equal the sum of
the
Index
plus the applicable Gross Margin, rounded up or down to the nearest multiple
of 0.125% indicated by the Mortgage Note; provided that the Mortgage
Interest
Rate will not increase or decrease by more than the Periodic Interest Rate
Cap
on
any Adjustment Date, and will in no event exceed the Maximum Mortgage
Interest Rate or be lower than the Minimum Mortgage Interest Rate listed
on
the Mortgage Note for such Mortgage Loan. As to each Adjustable Rate
Mortgage
Loan that is not an Interest Only Mortgage Loan, each Mortgage Note requires
a monthly payment which is sufficient, during the period prior to the first
adjustment
to the Mortgage Interest Rate, to fully amortize the outstanding principal
balance as of the first day of such period over the then remaining term of
such
Mortgage Note and to pay interest at the related Mortgage Interest Rate.
With
respect to each Interest Only Mortgage Loan, the interest-only period shall
not
exceed fifteen (15) years (or such other period specified on the related Data
File)
and
following the expiration of such interest-only period, the remaining
Monthly
Payments shall be sufficient to fully amortize the original principal
balance
over the remaining term of the Mortgage Loan and to pay interest at the
related
Mortgage Interest Rate. As to each Adjustable Rate Mortgage Loan, if the
related
Mortgage Interest Rate changes on an Adjustment Date or, with respect to
an
Interest Only Mortgage Loan, on an Adjustment Date following the related
interest-only
period, the then outstanding principal balance will be reamortized over
the
remaining life of such Mortgage Loan. No Adjustable Rate Mortgage Loan
contains terms or provisions which would result in negative
amortization;
127
(v) |
Customary
Provisions.
|
The
Mortgage and related Mortgage Note contain customary and enforceable
provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (i) in the case of a Mortgage designated as a
deed
of trust, by trustee's sale, and (ii) otherwise by judicial foreclosure. There
is no homestead or other exemption available to a Mortgagor which would
interfere with the right to sell the Mortgaged Property at a trustee's sale
or
the right to foreclose the Mortgage;
(w) |
Occupancy
of the Mortgaged Property.
|
As
of the
date of origination, the Mortgaged Property was lawfully occupied under
applicable law;
(x) |
No
Additional Collateral.
|
Except
in
the case of a Pledged Asset Mortgage Loan and as indicated on the related
Data File, the Mortgage Note is not and has not been secured by any collateral,
pledged account or other security except the lien of the corresponding
Mortgage
and the security interest of any applicable security agreement or chattel
mortgage
referred to in subclause (k) of Section 3.02 of the Redwood-Xxxxx Fargo
Agreement;
(y) |
Deeds
of Trust.
|
In
the
event the Mortgage constitutes a deed of trust, a trustee, duly qualified
under
applicable law to serve as such, has been properly designated and currently
so
serves
and is named in the Mortgage, and no fees or expenses are or will become
payable by the mortgagee to the trustee under the deed of trust, except in
connection
with a trustee's sale after default by the Mortgagor;
(z) |
Acceptable
Investment.
|
The
Company has no knowledge of any circumstances or conditions with respect
to
the
Mortgage Loan, the Mortgaged Property, the Mortgagor or the Mortgagor's
credit
standing that can reasonably be expected to cause private institutional
investors
to regard the Mortgage Loan as an unacceptable investment, cause the
Mortgage
Loan to become delinquent, or adversely affect the value or marketability
of the Mortgage Loan;
128
(aa) |
Transfer
of Mortgage Loans.
|
If
the
Mortgage Loan is not a MERS Mortgage Loan, the Assignment of Mortgage,
upon the insertion of the name of the assignee and recording information,
is in recordable form and is acceptable for recording under the laws
of
the
jurisdiction in which the Mortgaged Property is located;
(bb) |
Mortgaged
Property Undamaged.
|
The
Mortgaged Property is undamaged by waste, fire, earthquake or earth movement,
windstorm, flood, tornado or other casualty so as to affect adversely the value
of the Mortgaged Property as security for the Mortgage Loan or the use for
which
the premises were intended;
(cc) |
Collection
Practices; Escrow Deposits.
|
The
origination, servicing and collection practices used with respect to the
Mortgage Loan have been in accordance with Accepted Servicing Practices, and
have been in all material respects legal and proper. With respect to escrow
deposits and Escrow Payments, all such payments are in the possession of the
Company and there exist no deficiencies in connection therewith for which
customary arrangements for repayment thereof have not been made. All Escrow
Payments have been collected in full compliance with state and federal law.
No
escrow deposits or Escrow Payments or other charges or payments due the Company
have been capitalized under the Mortgage Note;
(dd) |
No
Condemnation.
|
There
is
no proceeding pending or to the best of the Company’s knowledge threatened
for the total or partial condemnation of the related Mortgaged Property;
(ee) |
The
Appraisal.
|
The
Servicing File for each Mortgage Loan includes an appraisal of the
related Mortgaged
Property. As to each Time$aver® Mortgage Loan, the appraisal may be
from
the original of the existing Company-serviced loan, which was refinanced
via
such
Time$aver® Mortgage Loan. The appraisal was conducted by an appraiser
who had no interest, direct or indirect, in the Mortgaged Property or in
any
loan
made on the security thereof; and whose compensation is not affected by
the
approval or disapproval of the Mortgage Loan, and the appraisal and the
appraiser
both satisfy the applicable requirements of Title XI of the Financial
Institution
Reform, Recovery, and Enforcement Act of 1989 and the regulations promulgated
thereunder, all as in effect on the date the Mortgage Loan was originated;
(ff) |
Insurance.
|
The
Mortgaged Property securing each Mortgage Loan is insured by an insurer
acceptable
to Xxxxxx Mae or Xxxxxxx Mac against loss by fire and such hazards as
are
covered under a standard extended coverage endorsement and such other hazards
as
are customary in the area where the Mortgaged Property is located pursuant
to
insurance policies conforming to the requirements of Section 4.10, in an amount
which is at least equal to the lesser of (i) 100% of the insurable value, on
a
replacement cost basis, of the improvements on the related Mortgaged
Property and (ii) the greater of (a) the outstanding principal balance of the
Mortgage Loan or (b) an amount such that the proceeds of such insurance shall
be
sufficient to prevent the application to the Mortgagor or the loss payee of
any
coinsurance clause under the policy. If the Mortgaged Property is a condominium
unit, it is included under the coverage afforded by a blanket policy for the
project. If the improvements on the Mortgaged Property are in an area identified
in the Federal Register by the Federal Emergency Management Agency as having
special flood hazards, a flood insurance policy meeting the requirements of
the
current
guidelines of the Federal Insurance Administration is in effect with a generally
acceptable insurance carrier, in an amount representing coverage not less than
the least of (A) the outstanding principal balance of the Mortgage Loan, (B)
the
full insurable value and (C) the maximum amount of insurance which was available
under the Flood Disaster Protection Act of 1973, as amended. All individual
insurance policies contain a standard mortgagee clause naming the Company and
its successors and assigns as mortgagee, and all premiums thereon have been
paid. The Mortgage obligates the Mortgagor thereunder to maintain a hazard
insurance policy at the Mortgagor's cost and expense, and on the Mortgagor's
failure to do so, authorizes the holder of the Mortgage to obtain and maintain
such insurance at such Mortgagor's cost and expense, and to seek reimbursement
therefor from the Mortgagor. The hazard insurance policy is the valid and
binding obligation of the insurer, is in full force and effect, and will be
in
full force and effect and inure to the benefit of the Purchaser upon the
consummation of the transactions contemplated by the Redwood-Xxxxx Fargo
Agreement. The Company has not acted or failed to act so as to impair the
coverage of any such insurance policy or the validity, binding effect and
enforceability thereof;
129
(gg) |
Servicemembers
Civil Relief Act.
|
The
Mortgagor has not notified the Company, and the Company has no knowledge
of any relief requested or allowed to the Mortgagor under the Servicemembers
Civil Relief Act, as amended;
(hh) |
No
Balloon Payments, Graduated Payments or Contingent
Interests.
|
The
Mortgage Loan is not a graduated payment mortgage loan and the Mortgage
Loan
does
not have a shared appreciation or other contingent interest feature. No
Mortgage
Loan has a balloon payment feature;
(ii) |
No
Construction Loans.
|
No
Mortgage Loan was made in connection with (i) the construction or rehabilitation
of a Mortgage Property or (ii) facilitating the trade-in or exchange of a
Mortgaged Property other than a construction-to-permanent loan which has
converted to a permanent Mortgage Loan;
(jj) |
Underwriting.
|
(i) |
Each
Company Mortgage Loan was underwritten in accordance with the Company
Underwriting Guidelines;
|
(ii) |
Each
Third-Party Mortgage Loan was underwritten in accordance with the
Third-Party
Underwriting Guidelines;
|
(iii) |
Each
Exception Mortgage Loan was underwritten in accordance with the
Company
Underwriting Guidelines; and
|
130
(iv) |
Each
Mortgage Note and Mortgage are on forms acceptable to Xxxxxxx Mac
or Xxxxxx Mae;
|
(kk) |
No
Bankruptcy.
|
No
Mortgagor was a debtor in any state or federal bankruptcy or insolvency
proceeding
at the time the Mortgage Loan was originated and as of the Closing Date,
the
Company has not received notice that any Mortgagor is a debtor under
any
state
or federal bankruptcy or insolvency proceeding;
(ll) |
The
Mortgagor.
|
The
Mortgagor is one or more natural Persons and/or an Illinois land trust or a
“living
trust” and such “living trust” is in compliance with the Company Underwriting
Guidelines (other than the exception identified for Exception Mortgage Loans)
or
the Third-Party Underwriting Guidelines, as applicable;
(mm) |
Interest
Calculation.
|
Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of twelve 30-day months;
(nn) |
Environmental
Status.
|
There
is
no pending action or proceeding directly involving the Mortgaged Property
of which the Company is aware in which compliance with any environmental law,
rule or regulation is an issue; and to the best of the Company’s knowledge,
nothing further remains to be done to satisfy in full all requirements of each
such law, rule or regulation constituting a prerequisite to the use and
enjoyment of the Mortgaged Property;
(oo) |
No
High Cost Loans.
|
No
Mortgage Loan is a High Cost Loan or Covered Loan;
(pp) |
Anti-Money
Laundering Laws.
|
The
Company has complied with all applicable anti-money laundering laws and
regulations,
including without limitation the USA Patriot ACT of 2001 (collectively, the
“Anti-Money Laundering Laws”); the Company has established an anti-money
laundering compliance program as required by the Anti-Money Laundering Laws,
has
conducted the requisite due diligence in connection with the origination of
each
Mortgage Loan for purposes of the Anti-Money Laundering Laws, including with
respect to the identity of the applicable Mortgagor and the origin of assets
used by the said Mortgagor to purchase the related Mortgaged Property, and
maintains sufficient information to identify the applicable Mortgagor for
purposes of the Anti-Money Laundering Laws;
(qq) |
Single
Premium Credit Life Insurance.
|
No
Mortgagor was required to purchase any single premium credit insurance policy
(e.g. life, disability, accident, unemployment or health insurance product)
or
debt cancellation agreement as a condition of obtaining the extension of credit.
No Mortgagor obtained a prepaid single premium credit insurance policy (e.g.
life, disability, accident, unemployment or health insurance product) as part
of
the origination of the Mortgage Loan. No proceeds from any Mortgage Loan were
used to purchase single premium credit insurance policies or debt cancellation
agreements as part of the origination of, or as a condition to closing, such
Mortgage Loan;
131
(rr) |
Buydown
Mortgage Loans.
|
With
respect to each Mortgage Loan that is a Buydown Mortgage Loan:
(i) |
On
or before the date of origination of such Mortgage Loan, the Company
and
the Mortgagor, or the Company, the Mortgagor and the seller of the
Mortgaged Property or a third party entered into a Buydown Agreement.
The
Buydown Agreement provides that the seller of the Mortgaged Property
(or
third party) shall deliver to the Company temporary Buydown Funds
in an
amount equal to the aggregate undiscounted amount of payments that,
when
added to the amount the Mortgagor on such Mortgage Loan is obligated
to
pay on each Due Date in accordance with the terms of the Buydown
Agreement, is equal to the full scheduled Monthly Payment due on
such
Mortgage Loan. The temporary Buydown Funds enable the Mortgagor to
qualify
for the Buydown Mortgage Loan. The effective interest rate of a Buydown
Mortgage Loan if less than the interest rate set forth in the related
Mortgage Note will increase within the Buydown
Period as provided in the related Buydown Agreement so that the effective
interest rate will be equal to the interest rate as set forth in
the
related Mortgage Note. The Buydown Mortgage Loan satisfies the
requirements of the Company Underwriting Guidelines (other than the
exception identified for Exception Mortgage Loans) or the Third-Party
Underwriting Guidelines, as
applicable;
|
(ii) |
The
Mortgage and Mortgage Note reflect the permanent payment terms
rather
than the payment terms of the Buydown Agreement. The Buydown Agreement
provides for the payment by the Mortgagor of the full amount of the
Monthly Payment on any Due Date that the Buydown Funds are available.
The
Buydown Funds were not used to reduce the original principal balance
of
the Mortgage Loan or to increase the Appraised Value of the Mortgage
Property when calculating the Loan-to-Value Ratios for purposes of
the
Agreement and, if the Buydown Funds were provided by the Company
and if
required under the Company Underwriting Guidelines (other than the
exception identified for Exception Mortgage Loans) or the Third-Party
Underwriting Guidelines, as applicable, the terms of the Buydown
Agreement
were disclosed to the appraiser of the Mortgaged
Property;
|
(iii) |
The
Buydown Funds may not be refunded to the Mortgagor unless the Mortgagor
makes a principal payment for the outstanding balance of the Mortgage
Loan;
|
(iv) |
As
of the date of origination of the Mortgage Loan, the provisions of
the
related
Buydown Agreement complied with the requirements of the Company
Underwriting Guidelines (other than the exception identified for
Exception
Mortgage Loans) or the Third-Party Underwriting Guidelines, as applicable,
regarding buydown agreements;
|
(ss) |
Cooperative
Loans.
|
With
respect to each Cooperative Loan:
(i) |
The
Cooperative Shares are held by a Person as a tenant-stockholder in
a
Cooperative.
Each original UCC financing statement, continuation statement or
other
governmental filing or recordation necessary to create or preserve
the
perfection and priority of the first lien and security interest in
the
Cooperative Loan and Proprietary Lease has been timely and properly
made.
Any security agreement, chattel mortgage or equivalent document related
to
the Cooperative Loan and delivered to Purchaser or its designee
establishes in Purchaser a valid and subsisting perfected first lien
on
and security interest in the Mortgaged Property described therein,
and
Purchaser has full right to sell and assign the same. The Proprietary
Lease term expires no less than five years after the Mortgage Loan
term or
such other term acceptable to Xxxxxx Xxx, Xxxxxxx Mac, the Company
Underwriting Guidelines (other than the exception identified for
Exception
Mortgage Loans) or the Third-Party Underwriting Guidelines, as
applicable;
|
132
(ii) |
A
Cooperative Lien Search has been made by a company competent to
make
the same which company is acceptable to Xxxxxx Mae or Xxxxxxx Mac
and
qualified to do business in the jurisdiction where the Cooperative
is
located;
|
(iii)
|
(a)
The term of the related Proprietary Lease is not less than the terms
of
the Cooperative Loan; (b) there is no provision in any Proprietary
Lease
which requires the Mortgagor to offer for sale the Cooperative Shares
owned by such Mortgagor first to the Cooperative; (c) there is no
prohibition in any Proprietary Lease against pledging the Cooperative
Shares or assigning the Proprietary Lease; (d) the Cooperative has
been
created and exists in full compliance with the requirements for
residential cooperatives in the jurisdiction in which the Project
is
located and qualifies as a cooperative housing corporation under
Section
216 of the Code; (e) the Recognition Agreement is on a form published
by
Aztech Document Services, Inc. or includes similar provisions; and
(f) the
Cooperative has good and marketable title to the Project, and owns
the
Project either in fee simple or under a leasehold that complies with
the
requirements of the Xxxxxx Mae guidelines, Xxxxxxx Mac guidelines,
the
Company Underwriting Guidelines (other than the exception identified
for
Exception Mortgage Loans) or the Third-Party Underwriting Guidelines,
as
applicable; such title is free and clear of any adverse liens or
encumbrances, except the lien of any blanket
mortgage;
|
(iv) |
The
Company has the right under the terms of the Mortgage Note, Pledge
Agreement
and Recognition Agreement to pay any maintenance charges or assessments
owed by the Mortgagor; and
|
(v) |
Each
Stock Power (i) has all signatures guaranteed or (ii) if all signatures
are
not guaranteed, then such Cooperative Shares will be transferred
by the
stock transfer agent of the Cooperative if the Company undertakes
to
convert the ownership of the collateral securing the related Cooperative
Loan;
|
(tt) |
Delivery
of Custodial Mortgage Files.
|
The
Mortgage Note, Assignment of Mortgage and any other documents required
to
be
delivered by the Company have been delivered to the Custodian in accordance
with
the Redwood-Xxxxx Fargo Agreement. The Company is in possession of a complete,
true and accurate Retained Mortgage File in compliance with Exhibit C, except
for such documents the originals of which have been delivered to the Custodian
or for such documents where the originals of which have been sent for
recordation;
(uu) |
Credit
Reporting.
|
With
respect to each Mortgage Loan, the Company has furnished complete information
on the related borrower credit files to Equifax, Experian and Trans Union
Credit Information Company, in accordance with the Fair Credit Reporting
Act
and
its implementing regulations;
(vv) |
Contents
of Retained Mortgage File.
|
The
Retained Mortgage File contains the Mortgage Loan Documents listed as
items
6
through 12 of Exhibit C attached to the Redwood-Xxxxx Fargo Agreement, except
for such documents where the originals of which have been sent for
recordation;
133
(ww) |
Pledged
Asset Mortgage Loan.
|
With
respect to a Pledged Asset Mortgage Loan:
(i) |
The
Pledge Holder has a rating of at least “AA” (or the equivalent) or
better
from at least two Rating Agencies and the Pledge Holder is obligated
to
give the beneficiary of each Letter of Credit at least sixty (60)
days
notice of any non-renewal of any Letter of
Credit;
|
(ii) |
With
respect to each Pledged Asset Mortgage Loan, the Company is the
named
beneficiary and no Person has drawn any funds against such Letter
of
Credit;
|
(iii) |
Each
Letter of Credit is for an amount at least equal to an LTV of 20%
of
the
lower of the purchase price or the Appraised Value of the related
Mortgaged
Property;
|
(iv) |
As
of the Closing Date, the Company has complied with all the requirements
of any Letter of Credit, and each Letter of Credit is a valid and
enforceable obligation of the Pledge
Holder;
|
(v) |
The
Company has the right to draw on each Letter of Credit if the related
Pledged
Asset Mortgage Loan becomes ninety (90) days or more delinquent and
to
apply such proceeds as a partial prepayment
thereon;
|
(vi) |
The
Company has not received notice of any non-renewal of any Letter
of
Credit;
|
(vii) |
Upon
a default by the Pledge Holder, the Company will have a perfected
first
priority security interest in the assets pledged to secure the Letter
of
Credit and has the right to obtain possession thereof and the right
to
liquidate such assets and apply the proceeds thereof to prepay the
related
Pledged Asset Mortgage Loan; and
|
(viii) |
The
Letter of Credit is required to be in effect (either for its original
term
or
through renewal) until such time as all amounts owed under the related
Pledged Asset Mortgage Loan by the related Mortgagor are less than
80% of
the lesser of the Purchase Price or the Appraised Value of the related
Mortgaged Property;
|
(xx) |
Indiana.
|
There
is
no Mortgage Loan that was originated on or after January 1, 2005, which
is
a
“high cost home loan” as defined under the Indiana Home Loan Practices Act
(I.C.
24-9); and
(yy) |
Leasehold
Estate.
|
With
respect to each Mortgage Loan secured in whole or in part by the interest of
the
Mortgagor as a lessee under a ground lease of the related Mortgaged Property
(a
“Ground Lease”) and not by a fee interest in such Mortgaged
Property:
134
(i) |
The
Mortgagor is the owner of a valid and subsisting interest as tenant
under
the Ground Lease;
|
(ii) |
The
Ground Lease is in full force and
effect;
|
(iii) |
The
Mortgagor is not in default under any provision of the
lease;
|
(iv)
|
The
lessor under the Ground Lease is not in default under any of the
terms or
provisions thereof on the part of the lessor to be observed or
performed;
|
(v) |
The
term of the Ground Lease exceeds the maturity date of the related
Mortgage
Loan by at least five (5) years;
|
(vi) |
The
Mortgagee under the Mortgage Loan is given at least sixty (60) days’
notice
of any default and an opportunity to cure any defaults under the
Ground
Lease or to take over the Mortgagor’s rights under the Ground
Lease;
|
(vii) |
The
Ground Lease does not contain any default provisions that could
result
in forfeiture or termination of the Ground Lease except for non-payment
of
the Ground Lease or a court order;
|
(viii)
|
The
Ground Lease provides that the leasehold can be transferred, mortgaged
and
sublet an unlimited number of times either without restriction or
on
payment of a reasonable fee and delivery of reasonable documentation
to
the lessor;
|
(ix) |
The
Ground Lease or a memorandum thereof has been recorded and by its
terms
permits the leasehold estate to be mortgaged;
and
|
(x) |
The
execution, delivery and performance of the Mortgage do not require
consent
(other than those consents which have been obtained and are in full
force
and
effect) under, and will not contravene any provision of or cause
a default
under, the Ground Lease.
|
(zz) |
Prepayment
Penalty.
|
No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(aaa) |
Qualified
Mortgage Loan.
|
Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC; and
(bbb) |
No
Adverse Selection.
|
There
were no adverse selection procedures used in selecting the Mortgage
Loan
from among the residential mortgage loans which were available for
inclusion in the Mortgage Loans.
|
135
XVIII.
|
Mortgage
Loans Purchased under the Master
Mortgage Loan Sale & Servicing Agreement, dated as of July 1, 2006
between
RWT Holdings, Inc. (“RWT Holdings”) and ABN AMRO Mortgage Group, Inc. (the
“Seller/Servicer”) (the “ABN AMRO-RWT
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the ABN AMRO-RWT
Agreement.
(a) The
information set forth in the Mortgage Loan Schedule, including any diskette
or
other related data tape sent to Purchaser is true and correct in all material
respects and the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements.
(b) There
are
no delinquent taxes, ground rents, governmental assessments, leasehold payments
or other outstanding charges affecting the lien priority of the related
Mortgage.
(c) The
terms
of the Mortgage Note and the Mortgage have not been waived, altered or modified
in any respect, except by written instruments, and the Mortgage has been
recorded or sent for recording, if necessary to maintain the lien priority
of
the Mortgage. The substance of any such waiver, alteration or modification
has
been approved by the insurer under the Primary Mortgage Insurance Policy, if
any, the title insurer, to the extent required by the related policy and is
reflected on the Mortgage Loan Schedule.
(d) No
event
has occurred which would give Mortgagor any right of rescission, set-off, or
defense of usury, nor will the operation of any of the terms of the Mortgage
Note and the Mortgage, or the exercise of any right thereunder, render either
the Mortgage Note or the Mortgage unenforceable in whole or in part (except
as
enforceability may be limited by bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization, or other similar laws affecting the
enforcement of the rights of creditors and by general principles of equity,
whether enforcement is sought in a proceeding in equity or at law) or subject
to
any right of rescission, set-off, counterclaim or defense, including the defense
of usury, and no such right of rescission, set-off, counterclaim or defense
has
been asserted with respect thereto and the Mortgagor was not a debtor in any
state or federal bankruptcy or insolvency proceedings and the time the Mortgage
Loan was originated.
(e) All
buildings upon the Mortgaged Property are insured by a Qualified Insurer against
loss by fire, hazards of extended coverage and such other hazards as are
customary in the area where the Mortgaged Property is located, pursuant to
insurance policies conforming to the requirements of Section 11.10 of the ABN
AMRO-RWT Agreement. All such insurance policies contain a standard mortgagee
clause naming Seller or the originator of the Mortgage Loan, and its successors
and assigns, as mortgagee. If the Mortgaged Property is in an area identified
on
a flood hazard map or flood insurance rate map issued by the Federal Emergency
Management Agency as a special flood hazard area (and such flood insurance
has
been made available), a flood insurance policy meeting the requirements of
the
current guidelines of the National Flood Insurance Program is in effect and
such
policy conforms to the Agency Guidelines. The Mortgage obligates the Mortgagor
thereunder to maintain all such insurance at the Mortgagor’s cost and expense
and, on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage
to maintain such insurance at Mortgagor’s cost and expense and to seek
reimbursement therefor from the Mortgagor.
(f) Seller
has complied with all requirements of federal law, and, to the extent not
preempted thereby, state or local law applicable to the origination or servicing
of the Mortgage Loan, including, without limitation, fair housing, usury, truth
in lending, real estate settlement procedures, consumer credit protection,
equal
credit opportunity, or disclosure laws. No Mortgage Loan is (a) subject to
the
provisions of the Homeownership and Equity Protection Act of 1994 as amended
(“HOEPA”), (b) a “high cost” mortgage loan, “covered” mortgage loan, “high risk
home” mortgage loan, or “predatory” mortgage loan or any comparable term, no
matter how defined under any federal, state or local law, (c) subject to any
comparable federal, state or local statutes or regulations, or any other statute
or regulation providing for heightened regulatory scrutiny or assignee liability
to holders of such mortgage loans, or (d) a High Cost Loan or Covered Loan,
as
applicable (as such terms are defined in the current Standard & Poor’s
LEVELS Glossary Revised, Appendix E). With respect to each Mortgage Loan, Seller
has complied with all applicable anti-money laundering laws and regulations,
including without limitation the USA Patriot Act of 2001 (collectively, the
“Anti-Money Laundering Laws”).The origination, servicing and collection
practices with respect to each Mortgage Note and Mortgage have been legal and
in
accordance with applicable laws and regulations, and in all material respects
in
accordance with Customary Servicing Procedures.
136
(g)The
Mortgage has not been satisfied, canceled, or rescinded, or, in the case of
a
First Lien Mortgage, subordinated, and the Mortgaged Property has not been
fully
released from the lien of the Mortgage, nor has any instrument been executed
that would effect any such satisfaction, cancellation, rescission, release,
or,
in the case of a First Lien Mortgage, subordination.
(h) If
the
Mortgage Loan is a First Lien Mortgage Loan, the Mortgage is a valid, existing
and enforceable First Lien Mortgage on the Mortgaged Property, including all
improvements on the Mortgaged Property, except as enforceability may be limited
by bankruptcy, insolvency, liquidation, receivership, moratorium,
reorganization, or other similar laws affecting the enforcement of the rights
of
creditors and by general principles of equity, whether enforcement is sought
in
a proceeding in equity or at law, and subject only to (i) the lien of current
real property taxes and assessments not yet due and payable, (ii) covenants,
conditions and restrictions, rights of way, easements and other matters of
the
public record as of the date of recording being acceptable to mortgage lending
institutions which do not materially affect adversely the Appraised Value of
the
Mortgaged Property, and (iii) other matters to which like properties are
commonly subject which do not materially interfere with the benefits of the
security intended to be provided by the Mortgage or the use, enjoyment, value
or
marketability of the related Mortgaged Property
(i) If
the
Mortgage Loan is a Second Lien Mortgage Loan, the Mortgage is a valid, existing
and enforceable Second Lien Mortgage on the Mortgaged Property, including all
improvements on the Mortgaged Property, except as enforceability may be limited
by bankruptcy, insolvency, liquidation, receivership, moratorium,
reorganization, or other similar laws affecting the enforcement of the rights
of
creditors and by general principles of equity, whether enforcement is sought
in
a proceeding in equity or at law, and subject only to (i) the First Lien
Mortgage, (ii) the lien of current real property taxes and assessments not
yet
due and payable, (iii) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of recording
being acceptable to mortgage lending institutions which do not materially affect
adversely the Appraised Value of the Mortgaged Property, and (iv) other matters
to which like properties are commonly subject which do not materially interfere
with the benefits of the security intended to be provided by the Mortgage or
the
use, enjoyment, value or marketability of the related Mortgaged
Property.
(j) The
Mortgage Note and the related Mortgage are genuine and each is the legal, valid
and binding obligation of the maker thereof, enforceable in accordance with
its
terms, except as enforceability may be limited by (i) bankruptcy, insolvency,
liquidation, receivership, moratorium, reorganization or other similar laws
affecting the enforcement of the rights of creditors and (ii) general principles
of equity, whether enforcement is sought in a proceeding in equity or at
law.
(k) All
parties to the Mortgage Note and the Mortgage had legal capacity to enter into
the Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage,
and the Mortgage Note and the Mortgage have been duly and properly executed
by
such parties.
(l) The
proceeds of the Mortgage Loan have been fully disbursed to or for the account
of
the Mortgagor, and there is no obligation for the Mortgagee to advance
additional funds thereunder.
137
(m) If
required by the Underwriting Guidelines, the Mortgage Loan is covered by an
ALTA
lender’s title insurance policy or other form of title insurance policy
acceptable to the Agency, issued by a title insurer acceptable to the Agency
and
qualified to do business in the jurisdiction where the Mortgaged Property is
located, insuring (subject to the exceptions contained in paragraph (h) (i)
(ii)
and (iii) above for First Lien Mortgage Loans and in paragraph (i)(i), (ii),
(iii) and (iv) above for Second Lien Mortgage Loans) the originator and its
successors and assigns as to the first or second mortgage lien priority, as
applicable, in the original principal amount of the Mortgage Loan. Seller is
the
insured under such lender’s title insurance policy, and such lender’s title
insurance policy is in full force and effect and will be in full force and
effect upon the related Closing Date. No claims have been made under such
lender’s title insurance policy, and Seller has not done, by act or omission,
anything which would impair the coverage of such lender’s title insurance
policy.
(n) There
is
no default or event of acceleration existing under the Mortgage or the Mortgage
Note, and Seller has not waived any default or event of acceleration.
With
respect to each Second Lien Mortgage Loan, as of the related
Closing
Date, (i) the First Lien Mortgage Loan is in full force and effect, (ii) Seller
has not received any notice of default under the First Lien Mortgage Loan or
its
related First Lien Mortgage which has not been cured,
and
(iii) Seller has not waived any default or event of acceleration with respect
thereto.
(o) The
Mortgage Loan was either (A) originated by (i) a savings and loan association,
savings bank, commercial bank, credit union, insurance company, or similar
banking institution which is supervised and examined by a federal or state
authority, or (ii) a Mortgagee approved by the Secretary of Housing and Urban
Development pursuant to sections 203 and 211 of the National Housing Act; or
(B)
originated and underwritten by an entity employing underwriting standards
consistent with the underwriting standards of an institution described in (A)(i)
or (A)(ii) above.
(p)
Unless
otherwise disclosed on the Mortgage Loan Schedule, the Mortgage Loan has an
original term to maturity of not more than 30 years, with interest payable
in
arrears on the first day of each month. The Mortgage Note evidencing a Fixed
Rate Mortgage Loan requires a monthly payment which is sufficient to fully
amortize the unpaid principal balance over the remaining term and to pay
interest at the related Mortgage Interest Rate. The Mortgage Note evidencing
an
Adjustable Rate Mortgage Loan requires a Monthly Payment that is sufficient
(after the IO Conversion Date with respect to an IO Mortgage Loan) (i) during
the period prior to the first adjustment to the Mortgage Interest Rate, to
amortize the original principal balance fully over the remaining term thereof
and to pay interest at the related Mortgage Interest Rate, and (ii) during
the
period following each Adjustment Date, to amortize the outstanding principal
balance fully as of the first day of such period over the then remaining term
of
such Mortgage Note and to pay interest at the related Mortgage Interest Rate.
In
any case, no Mortgage Loan contains terms or provisions which would result
in
negative amortization. Payments of principal and/or interest on the Mortgage
Loan commenced no more than sixty (60) days after the funds were disbursed
in
connection with the Mortgage Loan.
(q) There
is
no proceeding pending or, to Seller’s knowledge, threatened for the total or
partial condemnation of the Mortgaged Property, and such property is in good
repair and is undamaged by waste, fire, earthquake or earth movement, windstorm,
flood, tornado or other casualty, so as to materially affect adversely the
value
of the Mortgaged Property as security for the Mortgage Loan or the use for
which
the premises were intended.
(r) The
Mortgage and related Mortgage Note contain customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including (i) in the case of a Mortgage designated as a deed
of trust, by trustee’s sale, or (ii) otherwise by judicial foreclosure, except
as enforceability may be limited by bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization, or other similar laws affecting the
enforcement of the rights of creditors and by general principles of equity,
whether enforcement is sought in a proceeding in equity or at law. Following
the
date of origination of the Mortgage Loan, the Mortgaged Property has not been
subject to any bankruptcy proceeding or foreclosure proceeding and the Mortgagor
has not filed for protection under applicable bankruptcy laws. Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
138
(s) The
Mortgage Note and Mortgage are on forms acceptable to the Agency.
(t) The
Mortgage Note is not and has not been secured by any collateral except the
lien
of the corresponding Mortgage on the Mortgaged Property.
(u) The
Mortgage
File contains an appraisal of the related Mortgaged Property signed prior to
the
final approval of the Mortgage Loan application by a Qualified Appraiser and
the
appraisal and appraiser both satisfy the requirements of the Agency and Title
XI
of FIRREA and the regulations promulgated thereunder, if applicable, all as
in
effect on the date the Mortgage Loan was originated. The appraisal is in a
form
acceptable to the Agency;
(v) If
the
Mortgage constitutes a deed of trust, a trustee, duly qualified under applicable
law to serve as such, has been properly designated and currently so serves
and
is named in the Mortgage, and no fees or expenses are or will become payable
by
Purchaser to the trustee under the deed of trust, except in connection with
a
trustee’s sale after default by the Mortgagor.
(w) The
Mortgage Loan is not a graduated payment mortgage loan or buydown loan, and
the
Mortgage Loan does not have a shared appreciation or other contingent interest
feature.
(x) All
material disclosures required by applicable law with respect to the making
of
mortgage loans of the same type as the Mortgage Loan have been made, including
rescission materials required by applicable law if the Mortgage Loan is a
Refinanced Mortgage Loan.
(y) Each
Conventional First Lien Mortgage Loan that had a LTV at origination in excess
of
80% will be subject to a Primary Mortgage Insurance Policy, issued by a
Qualified Insurer, in at least such amount as is required by the Agency. All
provisions of such Primary Mortgage Insurance Policy have been and are being
complied with, such policy is in full force and effect, and all premiums due
thereunder have been paid. Any First Lien Mortgage Loan subject to any such
Primary Mortgage Insurance Policy obligates the Mortgagor thereunder to maintain
such insurance and to pay all premiums and charges in connection therewith
unless terminable in accordance with the Agency Guidelines or applicable law.
(z) The
Assignment of Mortgage is in recordable form and is acceptable for recording
under the laws of the jurisdiction in which the Mortgaged Property is located.
(aa) All
payments required to be made prior to the related Cut-off Date for the Mortgage
Loan under the terms of the Mortgage Note have been made.
(bb)
All
escrow deposits and Escrow Payments, if any, are in the possession of, or under
the control of, Seller and have been handled in accordance with the Real Estate
Settlement Procedures Act ("RESPA"). If such Mortgage Loan provides that the
interest rate on the principal balance of the Mortgage Note may be adjusted,
all
of the terms of the Mortgage Note pertaining to interest rate adjustments,
payment adjustments and adjustments of the outstanding principal balance are
enforceable (except as enforceability may be limited by bankruptcy, insolvency,
liquidation, receivership, moratorium, reorganization, or other similar laws
affecting the enforcement of the rights of creditors and by general principles
of equity, whether enforcement is sought in a proceeding in equity or at law),
and all such adjustments have been properly made, including any required
notices, and such adjustments do not and will not affect the priority of the
Mortgage lien. No
payment
with respect to the Mortgage Loan has been delinquent during the preceding
twelve-month period;
139
(cc) Immediately
prior to the payment of the Purchase Price, Seller was the sole owner and holder
of the Mortgage Loan. The Mortgage Loan was not assigned or pledged by Seller
and Seller had good and marketable title thereto, and Seller had full right
to
transfer and sell the Mortgage Loan to Purchaser free and clear of any
encumbrance, participation interest, lien, equity, pledge, claim or security
interest and had full right and authority, subject to no interest or
participation in, or agreement with, any other party to sell or otherwise
transfer the Mortgage Loan.
(dd) The
Mortgage Loan compiles with all the terms conditions and requirements of the
Underwriting Guidelines in effect at the time of origination with exceptions
thereto exercised in a reasonable manner.
(ee) With
respect to Mortgage Loans that are secured by a leasehold estate, the lease
is
valid, in full force and effect, and conforms to the Agency Guidelines for
leasehold estates.
(ff) No
fraud,
nor any material misrepresentation, error, omission, or negligence, has taken
place on the part of Seller or the Mortgagor any other Person involved in the
origination of the Mortgage Loan.
(gg) The
Mortgaged Property is located in the state identified in the Mortgage Loan
Schedule and consists of a parcel of real property with a detached single family
residence or a two-to-four-family dwelling erected thereon, or an individual
condominium unit, or an individual unit in a planned unit development;
provided, however,
that any
condominium project or planned unit development conforms with the Underwriting
Guidelines regarding such dwellings, and no residence or dwelling is a mobile
home or a manufactured housing unit that is not permanently attached to its
foundation. As
of the
date of origination, no portion of the Mortgaged Property was used for
commercial purposes, and, since the date of origination no portion of the
Mortgaged Property has been used for commercial purposes;
(hh) Seller
used no adverse selection procedures in selecting the Mortgage Loan from among
the residential mortgage loans owned by it which were available for inclusion
in
the Mortgage Loans.
(ii) Seller
has delivered to Purchaser or Purchaser’s designee the Mortgage Loan Documents
and the Mortgage File for each Mortgage Loan as required by the ABN AMRO-RWT
Agreement and/or the Commitment Letter.
(jj) All
improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries
and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances.
(kk)
All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (B) (1) organized under the laws of such state, or
(2)
qualified to do business in such state, or (3) federal savings and loan
associations or national banks or a Federal Home Loan Bank or savings bank
having principal offices in such state, or (4) not doing business in such
state.
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(ll) As
of the
related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to
be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities.
(mm)
If the
Mortgaged Property is a condominium unit or a planned unit development (other
than a de minimis planned unit development), or stock in a cooperative housing
corporation, such condominium, cooperative or planned unit development project
meets the eligibility requirements of the Agency.
(nn)
There is no pending action or proceeding directly involving the Mortgaged
Property in which compliance with any environmental law, rule or regulation
is
an issue; to Seller’s knowledge, there is no violation of any environmental law,
rule or regulation with respect to the Mortgaged Property; and nothing further
remains to be done to satisfy in full all requirements of each such law, rule
or
regulation constituting a prerequisite to use and enjoyment of said
property.
(oo)
The
Mortgagor has not notified Seller requesting relief under the Servicemembers’
Civil Relief Act, formerly known as the Soldiers’ and Sailors’ Civil Relief Act
of 1940, and Seller has no knowledge of any relief requested or allowed to
the
Mortgagor under the Servicemembers’ Civil Relief Act.
(pp).
There are no mechanics’ or similar liens or claims filed for work, labor or
material (and no rights are outstanding that under law could give rise to such
a
lien) affecting the related Mortgage Property which are or may be liens prior
to, or equal or coordinate with, the lien of the related Mortgage.
(qq)
As
of the related Closing Date, the Mortgage Loan was not in construction or
rehabilitation status or has facilitated the trade-in or exchange of a Mortgaged
Property.
(rr)
No
action has been taken or failed to be taken by Seller on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or
defense to coverage under any insurance policy related to the Mortgage Loan
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of
the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of Seller, or for
any
other reason under such coverage.
(ss)
With
respect to any broker fees collected and paid on the Mortgage Loan, all broker
fees have been properly assessed to the Mortgagor and no claims will arise
as to
broker fees that are double charged and for which the Mortgagor would be
entitled to reimbursement.
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(tt)
To
Seller’s knowledge, there does not exist on the related Mortgage Property any
hazardous substances, hazardous wastes or solid wastes, as such terms are
defined in the Comprehensive Environmental Response Compensation and Liability
Act, the Resource Conservation and Recovery Act of 1976, or other federal,
state
or local environmental legislation; provided
however,
that
commonly used household items shall not constitute “hazardous substances” for
purposes of this subsection.
(uu)
The
Mortgage Loan did not have a Loan-to-Value Ratio at the time of origination
of
more than 95%.
(vv)
None
of the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies.
(xx)
Unless set forth on the Mortgage Loan Schedule, the Mortgage Loan is not a
balloon loan.
(yy)
With
respect to the Mortgage Loan, Seller has fully and accurately furnished complete
information on the related borrower credit files to Equifax, Experian and Trans
Union Credit Information Company, in accordance with the Fair Credit Reporting
Act and its implementing regulations.
(zz)
No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act, which became effective October
1,
2002.
(aaa)
No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination.
(bbb)
Each Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC.
142
XIX.
|
With
respect to Mortgage Loans purchased under the Seller’s Purchase,
Warranties and Interim Servicing Agreement, dated as of June 1, 2006
(the
“Mortgage Loan Purchase and Sale Agreement”), between Redwood Mortgage
Funding, Inc. and First Magnus Financial Corporation and an Assignment
dated May __, 2007, between RMF and RWT Holdings, as modified by
the
related Acknowledgements (the “RWT-First Magnus
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the RWT-First Magnus
Agreement.
(a) The
information set forth in the related Mortgage Loan Schedule, including any
diskette or other related data tapes sent to the Purchaser, is complete, true
and correct in all material respects, and the information
provided to the rating agencies, including the loan level detail, is true and
correct according to the rating agency requirements;
(b) The
Mortgage creates a first lien or a first priority ownership interest in an
estate in fee simple in real property securing the related Mortgage
Note;
(c) All
payments due on or prior to the related Closing Date for such Mortgage Loan
have
been made as of the related Closing Date, the Mortgage Loan is not delinquent
in
payment more than 30 days and has not been dishonored; there are no material
defaults under the terms of the Mortgage Loan; the Company has not advanced
funds, or induced, solicited or knowingly received any advance of funds from
a
party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage
Loan; no payment with respect to each Mortgage Loan has been delinquent during
the preceding twelve-month period;
(d) All
taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing have been paid, or escrow funds have been established in an amount
sufficient to pay for every such escrowed item which remains unpaid and which
has been assessed but is not yet due and payable;
(e) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments, which have been recorded
to the extent any such recordation is required by law. No instrument of waiver,
alteration or modification has been executed, and no Mortgagor has been
released, in whole or in part, from the terms thereof except in connection
with
an assumption agreement and which assumption agreement is part of the Mortgage
File and the terms of which are reflected in the related Mortgage Loan Schedule;
the substance of any such waiver, alteration or modification has been approved
by the issuer of any related Primary Mortgage Insurance Policy and title
insurance policy, to the extent required by the related policies;
(f) The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense
of
usury, nor will the operation of any of the terms of the Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render the Mortgage Note
or
Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto; and the Mortgagor was not a debtor in any state
or federal bankruptcy or insolvency proceeding at the time the Mortgage Loan
was
originated;
(g) All
buildings or other customarily insured improvements upon the Mortgaged Property
are insured by an insurer acceptable under the Xxxxxx Xxx Guides, against loss
by fire, hazards of extended coverage and such other hazards as are provided
for
in the Xxxxxx Mae Guides or by the Xxxxxxx Mac Guides, in an amount representing
coverage not less than the lesser of (i) the maximum insurable value of the
improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such
that
the proceeds thereof shall be sufficient to prevent the Mortgagor and/or the
mortgagee from becoming a co-insurer. All such standard hazard policies are
in
full force and effect and on the date of origination contained a standard
mortgagee clause naming the Company and its successors in interest and assigns
as loss payee and such clause is still in effect and all premiums due thereon
have been paid. If required by the Flood Disaster Protection Act of 1973, as
amended, the Mortgage Loan is covered by a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
which policy conforms to Xxxxxx Mae and Xxxxxxx Mac requirements, in an amount
not less than the amount required by the Flood Disaster Protection Act of 1973,
as amended. Such policy was issued by an insurer acceptable under Xxxxxx Mae
or
Xxxxxxx Mac guidelines. The Mortgage obligates the Mortgagor thereunder to
maintain all such insurance at the Mortgagor’s cost and expense, and upon the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain
such insurance at the Mortgagor’s cost and expense and to seek reimbursement
therefor from the Mortgagor;
143
(h) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity, fair housing, or disclosure laws
applicable to the Mortgage Loan have been complied with in all material
respects;
(i) The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission. The
Company has not waived the performance by the Mortgagor of any action, if the
Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
in default, nor has the Company waived any default resulting from any action
or
inaction by the Mortgagor;
(j) The
related Mortgage is a valid, subsisting, enforceable and perfected first lien
on
the Mortgaged Property including all buildings on the Mortgaged Property and
all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems affixed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing securing the
Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note
do not contain any evidence of any security interest or other interest or right
thereto. Such lien is free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only
to
(1) the lien of non-delinquent current real property taxes and assessments
not
yet due and payable, (2) covenants, conditions and restrictions, rights of
way,
easements and other matters of the public record as of the date of recording
which are acceptable to mortgage lending institutions generally and either
(A)
which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and
(3) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates (1) a valid, subsisting, enforceable and perfected
first
lien and first priority security interest and on the property described therein,
and the Company has the full right to sell and assign the same to the
Purchaser;
(k) The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency,
moratorium, reorganization and other laws of general application affecting
the
rights of creditors and by general equitable principles and the Company has
taken all action necessary to transfer such rights of enforceability to the
Purchaser. All parties to the Mortgage Note and the Mortgage had the legal
capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage
Note and the Mortgage. The Mortgage Note and the Mortgage have been duly and
properly executed by such parties. No fraud, error, omission, misrepresentation,
negligence or similar occurrence with respect to a Mortgage Loan has taken
place
on the part of the Company or the Mortgagor, or, on the part of any other party
involved in the origination of the Mortgage Loan. The proceeds of the Mortgage
Loan have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor
have
been complied with. All costs, fees and expenses incurred in making or closing
the Mortgage Loan and the recording of the Mortgage were paid or are in the
process of being paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due under the Mortgage Note or Mortgage;
144
(l) The
Company is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser
or its designee will be the owner of record of the Mortgage and the indebtedness
evidenced by the Mortgage Note, and upon the sale of the Mortgage Loan to the
Purchaser, the Company will retain the Servicing File in trust for the Purchaser
only for the purpose of interim servicing and supervising the interim servicing
of the Mortgage Loan. Immediately prior to the transfer and assignment to the
Purchaser on the related Closing Date, the Mortgage Loan, including the Mortgage
Note and the Mortgage, were not subject to an assignment or pledge, and the
Company had good and marketable title to and was the sole owner thereof and
had
full right to transfer and sell the Mortgage Loan to the Purchaser free and
clear of any encumbrance, equity, lien, pledge, charge, claim or security
interest and has the full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign the
Mortgage Loan pursuant to the RWT-First Magnus Agreement and following the
sale
of the Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim
or security interest. The Company intends to relinquish all rights to possess,
control and monitor the Mortgage Loan, except for the purposes of servicing
the
Mortgage Loan as set forth in the RWT-First Magnus Agreement. Either the
Mortgagor is a natural person or the Mortgagor is an inter-vivos trust
acceptable to Xxxxxx Mae;
(m) Each
Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Xxxxxx Xxx or
Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac
and qualified to do business in the jurisdiction where the Mortgaged Property
is
located, insuring (subject to the exceptions contained in (j)(1), (2) and (3)
above) the Company, its successors and assigns, as to the first priority lien
of
the Mortgage in the original principal amount of the Mortgage Loan.
Additionally, such policy affirmatively insures ingress and egress to and from
the Mortgaged Property. Where required by applicable state law or regulation,
the Mortgagor has been given the opportunity to choose the carrier of the
required mortgage title insurance. The Company, its successors and assigns,
are
the sole insured of such lender’s title insurance policy, such title insurance
policy has been duly and validly endorsed to the Purchaser or the assignment
to
the Purchaser of the Company’s interest therein does not require the consent of
or notification to the insurer and such lender’s title insurance policy is in
full force and effect and will be in full force and effect upon the consummation
of the transactions contemplated by the RWT-First Magnus Agreement and the
related Purchase Price and Terms Letter. No claims have been made under such
lender’s title insurance policy, and no prior holder of the related Mortgage,
including the Company, has done, by act or omission, anything which would impair
the coverage of such lender’s title insurance policy;
(n) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event permitting acceleration; and
neither the Company nor any prior mortgagee has waived any default, breach,
violation or event permitting acceleration;
(o) As
of the
related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights outstanding that
under law could give rise to such liens) affecting the related Mortgaged
Property which are or may be liens prior to or equal to the lien of the related
Mortgage;
(p) All
improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries
and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances;
145
(q) The
Mortgage Loan was originated by or for the Company. The Mortgage Loan complies
with all the terms, conditions and requirements of the Company’s Underwriting
Standards in effect at the time of origination of such Mortgage Loan. The
Mortgage Notes and Mortgages (exclusive of any riders) are on forms generally
acceptable to Xxxxxx Xxx or Xxxxxxx Mac. The Company is currently selling loans
to Xxxxxx Mae and/or Xxxxxxx Mac which are the same document forms as the
Mortgage Notes and Mortgages (inclusive of any riders). The Mortgage Loan bears
interest at the Mortgage Interest Rate set forth in the related Mortgage Loan
Schedule, and Monthly Payments under the Mortgage Note are due and payable
on
the first day of each month. The Mortgage contains the usual and enforceable
provisions of the originator at the time of origination for the acceleration
of
the payment of the unpaid principal amount of the Mortgage Loan if the related
Mortgaged Property is sold without the prior consent of the mortgagee
thereunder;
(r) As
of the
related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At
origination of the Mortgage Loan there was, and there currently is, no
proceeding pending for the total or partial condemnation of the Mortgaged
Property. There have not been any condemnation proceedings with respect to
the
Mortgaged Property and there are no such proceedings scheduled to commence
at a
future date;
(s) The
Mortgage and related Mortgage Note contain customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including (i) in the case of a Mortgage designated as a deed
of trust, by trustee’s sale, and (ii) otherwise by judicial foreclosure.
Following the date of origination of the Mortgage Loan, the Mortgaged Property
has not been subject to any bankruptcy proceeding or foreclosure proceeding
and
the Mortgagor has not filed for protection under applicable bankruptcy laws.
There is no homestead or other exemption or right available to the Mortgagor
or
any other person which would interfere with the right to sell the Mortgaged
Property at a trustee’s sale or the right to foreclose the
Mortgage;
(t) The
Mortgage Note and Mortgage are on forms acceptable to Xxxxxx Mae or Xxxxxxx
Mac;
(u) If
the
Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified
if required under applicable law to act as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses
are or will become payable by the Purchaser to the trustee under the deed of
trust, except in connection with a trustee’s sale or attempted sale after
default by the Mortgagor;
(v) The
Mortgage File contains an appraisal of the related Mortgaged Property signed
prior to the final approval of the mortgage loan application by a Qualified
Appraiser, who had no interest, direct or indirect, in the Mortgaged Property
or
in any loan made on the security thereof, and whose compensation is not affected
by the approval or disapproval of the Mortgage Loan, and the appraisal and
appraiser both satisfy the requirements of Xxxxxx Mae or Xxxxxxx Mac and Title
XI of FIRREA and the regulations promulgated thereunder, all as in effect on
the
date the Mortgage Loan was originated. The appraisal is in a form acceptable
to
Xxxxxx Mae or Xxxxxxx Mac;
(w) All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (B) (1) organized under the laws of such state, or
(2)
qualified to do business in such state, or (3) federal savings and loan
associations or national banks or a Federal Home Loan Bank or savings bank
having principal offices in such state, or (4) not doing business in such
state;
(x) As
of the
related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security
interest of any applicable security agreement or chattel mortgage referred
to in
(j) above and such collateral does not serve as security for any other
obligation;
146
(y) The
Mortgagor has received all disclosure materials required by applicable law
with
respect to the making of such mortgage loans;
(z) The
Mortgage Loan does not contain “graduated payment” features and does not have a
shared appreciation or other contingent interest feature; no Mortgage Loan
contains any buydown provisions;
(aa) As
of the
related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor
is
not insolvent and the Company has no knowledge of any circumstances or condition
with respect to the Mortgage, the Mortgaged Property, the Mortgagor or the
Mortgagor’s credit standing that could reasonably be expected to cause investors
to regard the Mortgage Loan as an unacceptable investment, cause the Mortgage
Loan to become delinquent, or materially adversely affect the value or
marketability of the Mortgage Loan;
(bb) The
Mortgage Loans have an original term to maturity of not more than 40 years
with
interest payable in arrears on the first day of each month. Each Mortgage Note
requires a monthly payment which is sufficient to fully amortize the unpaid
principal balance over the remaining term and to pay interest at the related
Mortgage Interest Rate. Notwithstanding the immediately preceding sentence
with
respect to Mortgage Loans with an initial “interest only” payment period, the
monthly payments due under the related Mortgage Note satisfy only the monthly
interest on the unpaid principal balance of the applicable Mortgage Loan. After
the initial “interest only” period, each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance
over
the remaining term and to pay interest at the related Mortgage Interest Rate.
In
any case, no Mortgage Loan contains terms or provisions which would result
in
negative amortization.
(cc) If
a
Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Xxxxxx Mae Guides and will be
insured as to payment defaults by a Primary Mortgage Insurance Policy issued
by
a Qualified Insurer. All provisions of such Primary Mortgage Insurance Policy
have been and are being complied with, such policy is in full force and effect,
and all premiums due thereunder have been paid. No action, inaction, or event
has occurred and no state of facts exists that has, or will result in the
exclusion from, denial of, or defense to coverage. Any Mortgage Loan subject
to
a Primary Mortgage Insurance Policy obligates the Mortgagor thereunder to
maintain the Primary Mortgage Insurance Policy and to pay all premiums and
charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of any such
insurance premium. No Mortgage Loan is subject to a lender-paid mortgage
insurance policy;
(dd) As
to any
Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage
is
in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;
(ee) The
Mortgaged Property is located in the state identified in the related Mortgage
Loan Schedule and consists of a single parcel of real property with a detached
single family residence erected thereon, or a townhouse, or a two-to four-family
dwelling, or an individual condominium unit in a condominium project, or an
individual unit in a planned unit development or a de minimis planned unit
development, provided, however, that no residence or dwelling is a single parcel
of real property with a cooperative housing corporation erected thereon, or a
mobile home. As of the date of origination, no portion of the Mortgaged Property
was used for commercial purposes, and since the date or origination no portion
of the Mortgaged Property has been used for commercial purposes;
(ff) Payments
of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan.
The Mortgage Note is payable on the first day of each month. After the initial
“interest only” payment period, if any, the Mortgage Note in payable in equal
monthly installments of principal and interest, with interest calculated and
payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated
maturity date, over an original term of not more than thirty years from
commencement of amortization;
147
(gg) The
Mortgage Loans may be subject to a Prepayment Penalty as identified on the
Mortgage Loan Schedule, except that no Mortgage Loan contains any
Prepayment Penalty that extends beyond five years after the date of
origination;
(hh) As
of the
related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to
be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities;
(ii) If
the
Mortgaged Property is a condominium unit or a planned unit development (other
than a de minimis planned unit development), or stock in a cooperative housing
corporation, such condominium, cooperative or planned unit development project
meets the eligibility requirements of Xxxxxx Xxx and Xxxxxxx Mac;
(jj) There
is
no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue;
there is no violation of any environmental law, rule or regulation with respect
to the Mortgaged Property; and nothing further remains to be done to satisfy
in
full all requirements of each such law, rule or regulation constituting a
prerequisite to use and enjoyment of said property;
(kk) The
Mortgagor has not notified the Company requesting relief under the
Servicemembers’ Civil Relief Act, formerly known as the Soldiers’ and Sailors’
Civil Relief Act of 1940, and the Company has no knowledge of any relief
requested or allowed to the Mortgagor under the Servicemembers’ Civil Relief
Act;
(ll) As
of the
related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged
Property;
(mm) No
action
has been taken or failed to be taken by the Company on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or
defense to coverage under any insurance policy related to a Mortgage Loan
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of
the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of the Company, or
for
any other reason under such coverage;
(nn) The
Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or similar institution which is supervised and examined
by a federal or state authority;
(oo) No
Mortgaged Property is subject to a ground lease;
(pp) With
respect to any broker fees collected and paid on any of the Mortgage Loans,
all
broker fees have been properly assessed to the Mortgagor and no claims will
arise as to broker fees that are double charged and for which the Mortgagor
would be entitled to reimbursement;
(qq) With
respect to any Mortgage Loan as to which an affidavit has been delivered to
the
Purchaser certifying that the original Mortgage Note has been lost or destroyed
and not been replaced, if such Mortgage Loan is subsequently in default, the
enforcement of such Mortgage Loan will not be materially adversely affected
by
the absence of the original Mortgage Note;
148
(rr) Each
Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A)
of
the Code and Treasury Regulations Section 1.860G-2(a)(1);
(ss) Except
as
provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and
required to be delivered on the related Closing Date have been delivered to
the
Purchaser or its designee all in compliance with the specific requirements
of
the RWT-First Magnus Agreement. With respect to each Mortgage Loan, the Company
is in possession of a complete Mortgage File and Servicing File except for
such
documents as have been delivered to the Purchaser or its designee;
(tt) All
information supplied by, on behalf of, or concerning the Mortgagor is true,
accurate and complete and does not contain any statement that at the time
provided and as of the Closing Date is or will be inaccurate or misleading
in
any material respect;
(uu) There
does not exist on the related Mortgage Property any hazardous substances,
hazardous wastes or solid wastes, as such terms are defined in the Comprehensive
Environmental Response Compensation and Liability Act, the Resource Conservation
and Recovery Act of 1976, or other federal, state or local environmental
legislation;
(vv) All
disclosure materials required by applicable law with respect to the making
of
fixed rate and adjustable rate mortgage loans have been received by the
borrower;
(ww) No
Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more
than
95%;
(xx) None
of
the Mortgage Loans are subject to the Home Ownership and Equity Protection
Act
of 1994 or any comparable state law;
(yy) None
of
the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;
(zz) Any
principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having first lien priority by a title
insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Xxxxxx Xxx and
Xxxxxxx Mac. The consolidated principal amount does not exceed the original
principal amount of the Mortgage Loan;
(aaa) Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
(bbb) No
Mortgage Loan is a Balloon Mortgage Loan;
(ccc) With
respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such
MIN
is accurately provided on the Mortgage Loan Schedule. The related assignment
of
Mortgage to MERS has been duly and properly recorded;
(ddd) With
respect to each MERS Mortgage Loan, the Company has not received any notice
of
liens or legal actions with respect to such Mortgage Loan and no such notices
have been electronically posted by MERS;
(eee) None
of
the Mortgaged
Properties are manufactured housing;
149
(fff) With
respect to each Mortgage Loan, the Company has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian
and Trans Union Credit Information Company, in accordance with the Fair Credit
Reporting Act and its implementing regulations;
(ggg) The
Company has complied with all applicable anti-money laundering laws and
regulations, including without limitation the USA Patriot Act of 2001
(collectively, the “Anti-Money Laundering Laws”); and the Company has
established an anti-money laundering compliance program as required by the
Anti-Money Laundering Laws;
(hhh) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
(iii) No
Mortgage Loan is a High Cost or Covered Loan, as applicable and no mortgage
loan
is a “high cost” or “covered” mortgage loan, as applicable (as such terms are
defined in the then current Standard and Poor’s LEVELS Glossary which is now
Version 6.0, Appendix E). No Mortgage Loan is in violation of any applicable
federal, state, or local predatory or abusive lending law. Any breach of this
representation shall be deemed to materially and adversely affect the value
of
the Mortgage Loan and shall require a repurchase of the affected Mortgage
Loan.
(jjj) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act. Any breach of this representation
shall be deemed to materially and adversely affect the value of the Mortgage
Loan and shall require a repurchase of the affected Mortgage Loan;
(kkk) No
Mortgage Loan which is secured by property located in the State of New Jersey
is
a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, which
became effective November 27, 2003;
(lll) No
Mortgage Loan which is secured by property located in the State of New Mexico
is
a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act,
which became effective January 1, 2004;
(mmm) No
Mortgage Loan which is secured by property located in the State of Kentucky
is a
“High-Cost Home Loan” as defined in the Kentucky House Xxxx 287, which became
effective June 24, 2003;
(nnn)
No
Mortgage Loan which is secured by property located in the Commonwealth of
Massachusetts is a "High Cost Home Mortgage Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act (Mass. Xxx. Laws ch. 183C)
which
became effective November 7, 2004;
(ooo)
No
Mortgage Loan that is secured by property located in the State of Illinois
is a
"High-Risk Home Loan" as defined in the Illinois High Risk Home Loan Act
effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.); and none of
the
Mortgage Loans that are secured by property located in the State of Illinois
are
in violation of the provisions of the Illinois Interest Act (815 Ill. Comp.
Stat. 205/1 et. seq.);
(ppp) No
Mortgage Loan that is secured by property located in the State of Indiana is
a
"High Cost Home Loan" as defined in Indiana’s Home Loan Practices Act (I.C.
24-9), which became effective January 1, 2005; and
(qqq)
There were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
150
XX.
|
Seller’s
Purchase, Warranties and Interim Servicing Agreement, dated as of
May 1,
2006 by and between Redwood Mortgage Funding, Inc. (“RMF”) and New Century
Mortgage Corporation (“New Century”), and an Assignment dated [May][June]
__, 2007, between RMF and RWT Holdings (the “New Century-RWT
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the New Century-RWT
Agreement.
(a) The
information set forth in the related Mortgage Loan Schedule, including any
diskette or other related data tapes sent to the Purchaser, is complete, true
and correct in all material respects the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(b) The
Mortgage creates a first lien or a first priority ownership interest in an
estate in fee simple in real property securing the related Mortgage
Note;
(c) All
payments due on or prior to the related Closing Date for such Mortgage Loan
have
been made as of the related Closing Date, the Mortgage Loan is not delinquent
in
payment more than 30 days and has not been dishonored; there are no material
defaults under the terms of the Mortgage Loan; the Company has not advanced
funds, or induced, solicited or knowingly received any advance of funds from
a
party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage
Loan; no payment with respect to each Mortgage Loan has been delinquent during
the preceding twelve-month period;
(d) All
taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing have been paid, or escrow funds have been established in an amount
sufficient to pay for every such escrowed item which remains unpaid and which
has been assessed but is not yet due and payable;
(e) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments, which have been recorded
to the extent any such recordation is required by law. No instrument of waiver,
alteration or modification has been executed, and no Mortgagor has been
released, in whole or in part, from the terms thereof except in connection
with
an assumption agreement and which assumption agreement is part of the Mortgage
File and the terms of which are reflected in the related Mortgage Loan Schedule;
the substance of any such waiver, alteration or modification has been approved
by the issuer of any related Primary Mortgage Insurance Policy and title
insurance policy, to the extent required by the related policies;
(f) The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense
of
usury, nor will the operation of any of the terms of the Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render the Mortgage Note
or
Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto; and the Mortgagor was not a debtor in any state
or federal bankruptcy or insolvency proceeding at the time the Mortgage Loan
was
originated;
(g) All
buildings or other customarily insured improvements upon the Mortgaged Property
are insured by a Qualified Insurer against loss by fire, hazards of extended
coverage and such other hazards in an amount representing coverage not less
than
the lesser of (i) the maximum insurable value of the improvements securing
such
Mortgage Loans, and (ii) the greater of (a) the outstanding principal balance
of
the Mortgage Loan, and (b) an amount such that the proceeds thereof shall be
sufficient to prevent the Mortgagor and/or the mortgagee from becoming a
co-insurer. All such standard hazard policies are in full force and effect
and
on the date of origination contained a standard mortgagee clause naming the
Company and its successors in interest and assigns as loss payee and such clause
is still in effect and all premiums due thereon have been paid. If required
by
the Flood Disaster Protection Act of 1973, as amended, the Mortgage Loan is
covered by a flood insurance policy meeting the requirements of the current
guidelines of the Federal Insurance Administration in an amount not less than
the amount required by the Flood Disaster Protection Act of 1973, as amended.
Such policy was issued by a Qualified Insurer. The Mortgage obligates the
Mortgagor there under to maintain all such insurance at the Mortgagor’s cost and
expense, and upon the Mortgagor’s failure to do so, authorizes the holder of the
Mortgage to maintain such insurance at the Mortgagor’s cost and expense and to
seek reimbursement therefore from the Mortgagor;
151
(h) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity, fair housing, or disclosure laws
applicable to the Mortgage Loan have been complied with in all material
respects;
(i) The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission. The
Company has not waived the performance by the Mortgagor of any action, if the
Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
in default, nor has the Company waived any default resulting from any action
or
inaction by the Mortgagor;
(j) The
related Mortgage is a valid, subsisting, enforceable and perfected first lien
on
the Mortgaged Property including all buildings on the Mortgaged Property and
all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems affixed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing securing the
Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note
do not contain any evidence of any security interest or other interest or right
thereto. Such lien is free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only
to
(1) the lien of non-delinquent current real property taxes and assessments
not
yet due and payable, (2) covenants, conditions and restrictions, rights of
way,
easements and other matters of the public record as of the date of recording
which are acceptable to mortgage lending institutions generally and either
(A)
which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and
(3) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates (1) a valid, subsisting, enforceable and perfected
first
lien and first priority security interest and on the property described therein,
and the Company has the full right to sell and assign the same to the
Purchaser;
(k) The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency,
moratorium, reorganization and other laws of general application affecting
the
rights of creditors and by general equitable principles and the Company has
taken all action necessary to transfer such rights of enforceability to the
Purchaser. All parties to the Mortgage Note and the Mortgage had the legal
capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage
Note and the Mortgage. The Mortgage Note and the Mortgage have been duly and
properly executed by such parties. No fraud, error, omission, misrepresentation,
negligence or similar occurrence with respect to a Mortgage Loan has taken
place
on the part of the Company or the Mortgagor, or, on the part of any other party
involved in the origination of the Mortgage Loan. The proceeds of the Mortgage
Loan have been fully disbursed and there is no requirement for future advances
thereunder (excepting therefrom HELOCs), and any and all requirements as to
completion of any on-site or off-site improvements and as to disbursements
of
any escrow funds therefore have been complied with. All costs, fees and expenses
incurred in making or closing the Mortgage Loan and the recording of the
Mortgage were paid or are in the process of being paid, and the Mortgagor is
not
entitled to any refund of any amounts paid or due under the Mortgage Note or
Mortgage;
152
(l) The
Company is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser
or its designee will be the owner of record of the Mortgage and the indebtedness
evidenced by the Mortgage Note, and upon the sale of the Mortgage Loan to the
Purchaser, the Company will retain the Servicing File in trust for the Purchaser
only for the purpose of interim servicing and supervising the interim servicing
of the Mortgage Loan. Immediately prior to the transfer and assignment to the
Purchaser on the related Closing Date, the Mortgage Loan, including the Mortgage
Note and the Mortgage, were not subject to an assignment or pledge, and the
Company had good and marketable title to and was the sole owner thereof and
had
full right to transfer and sell the Mortgage Loan to the Purchaser free and
clear of any encumbrance, equity, lien, pledge, charge, claim or security
interest and has the full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign the
Mortgage Loan pursuant to the New Century-RWT Agreement and following the sale
of the Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear
of any encumbrance, equity, participation interest, lien, pledge, charge, claim
or security interest. The Company intends to relinquish all rights to possess,
control and monitor the Mortgage Loan, except for the purposes of servicing
the
Mortgage Loan as set forth in the New Century-RWT Agreement. Either the
Mortgagor is a natural person or the Mortgagor is an inter-vivos trust
acceptable to Xxxxxx Xxx;
(m)
Each
Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Xxxxxx Xxx or
Xxxxxxx Mac, issued by a Qualified Insurer qualified to do business in the
jurisdiction where the Mortgaged Property is located, insuring (subject to
the
exceptions contained in (j)(1), (2) and (3) above) the Company, its successors
and assigns, as to the first priority lien of the Mortgage in the original
principal amount of the Mortgage Loan. Additionally, such policy affirmatively
insures ingress and egress to and from the Mortgaged Property. Where required
by
applicable state law or regulation, the Mortgagor has been given the opportunity
to choose the carrier of the required mortgage title insurance. The Company,
its
successors and assigns, are the sole insured of such lender’s title insurance
policy, such title insurance policy has been duly and validly endorsed to the
Purchaser or the assignment to the Purchaser of the Company’s interest therein
does not require the consent of or notification to the insurer and such lender’s
title insurance policy is in full force and effect and will be in full force
and
effect upon the consummation of the transactions contemplated by the New
Century-RWT Agreement and the related Purchase Price and Terms Letter. No claims
have been made under such lender’s title insurance policy, and no prior holder
of the related Mortgage, including the Company, has done, by act or omission,
anything which would impair the coverage of such lender’s title insurance
policy;
(n) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event permitting acceleration; and
neither the Company nor any prior mortgagee has waived any default, breach,
violation or event permitting acceleration;
(o) As
of the
related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and the Company has no notice
of
any rights outstanding that under law could give rise to such liens) affecting
the related Mortgaged Property which are or may be liens prior to or equal
to
the lien of the related Mortgage;
(p) All
improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries
and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances;
(q) The
Mortgage Loan was originated by or for the Originator. The Mortgage Loan
complies with all the terms, conditions and requirements of the Underwriting
Standards in effect at the time of origination of such Mortgage Loan. The
Mortgage Notes and Mortgages (exclusive of any riders) are on forms generally
acceptable to Xxxxxx Xxx or Xxxxxxx Mac. The Company is currently selling loans
to Xxxxxx Mae and/or Xxxxxxx Mac which are the same document forms as the
Mortgage Notes and Mortgages (inclusive of any riders). The Mortgage Loan bears
interest at the Mortgage Interest Rate set forth in the related Mortgage Loan
Schedule, and Monthly Payments under the Mortgage Note are due and payable
on
the first day of each month. The Mortgage contains the usual and enforceable
provisions of the originator at the time of origination for the acceleration
of
the payment of the unpaid principal amount of the Mortgage Loan if the related
Mortgaged Property is sold without the prior consent of the mortgagee
thereunder;
153
(r) As
of the
related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At
origination of the Mortgage Loan there was, and there currently is, no
proceeding pending for the total or partial condemnation of the Mortgaged
Property. The Company has no notice of any such condemnation proceedings
scheduled to commence at a future date;
(s) The
Mortgage and related Mortgage Note contain customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including (i) in the case of a Mortgage designated as a deed
of trust, by trustee’s sale, and (ii) otherwise by judicial foreclosure. To the
best of the Company’s knowledge, following the date of origination of the
Mortgage Loan, the Mortgaged Property has not been subject to any bankruptcy
proceeding or foreclosure proceeding and the Mortgagor has not filed for
protection under applicable bankruptcy laws. There is no homestead or other
exemption or right available to the Mortgagor or any other person which would
interfere with the right to sell the Mortgaged Property at a trustee’s sale or
the right to foreclose the Mortgage;
(t) The
Mortgage Note and Mortgage are on forms acceptable to Xxxxxx Mae or Xxxxxxx
Mac;
(u) If
the
Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified
if required under applicable law to act as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses
are or will become payable by the Purchaser to the trustee under the deed of
trust, except in connection with a trustee’s sale or attempted sale after
default by the Mortgagor;
(v) The
Mortgage File contains an appraisal of the related Mortgaged Property signed
prior to the final approval of the mortgage loan application by a Qualified
Appraiser, who had no interest, direct or indirect, in the Mortgaged Property
or
in any loan made on the security thereof, and whose compensation is not affected
by the approval or disapproval of the Mortgage Loan, and the appraisal and
appraiser both satisfy the requirements of Xxxxxx Mae or Xxxxxxx Mac and Title
XI of FIRREA and the regulations promulgated thereunder, all as in effect on
the
date the Mortgage Loan was originated. The appraisal is in a form acceptable
to
Xxxxxx Mae or Xxxxxxx Mac;
(w) All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (B) (1) organized under the laws of such state, or
(2)
qualified to do business in such state, or (3) federal savings and loan
associations or national banks or a Federal Home Loan Bank or savings bank
having principal offices in such state, or (4) not doing business in such
state;
(x)
As of
the related Closing Date, the related Mortgage Note is not and has not been
secured by any collateral except the lien of the corresponding Mortgage and
the
security interest of any applicable security agreement or chattel mortgage
referred to in (j) above and such collateral does not serve as security for
any
other obligation;
(y) The
Mortgagor has received all disclosure materials required by applicable law
with
respect to the making of such mortgage loans;
(z) The
Mortgage Loan does not contain “graduated payment” features and does not have a
shared appreciation or other contingent interest feature; no Mortgage Loan
contains any buydown provisions;
154
(aa) As
of the
related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor
is
not insolvent and the Company has no knowledge of any circumstances or condition
with respect to the Mortgage, the Mortgaged Property, the Mortgagor or the
Mortgagor’s credit standing that could reasonably be expected to cause investors
to regard the Mortgage Loan as an unacceptable investment, cause the Mortgage
Loan to become delinquent, or materially adversely affect the value or
marketability of the Mortgage Loan;
(bb) Each
Mortgage Loans has an original term to maturity of not more than 40 years with
interest payable in arrears on the first day of each month. Each Mortgage Note
requires a monthly payment, which is sufficient to fully amortize the unpaid
principal balance over the remaining term and to pay interest at the related
Mortgage Interest Rate. Notwithstanding the immediately preceding sentence
with
respect to Mortgage Loans with an initial “interest only” payment period, the
monthly payments due under the related Mortgage Note satisfy only the monthly
interest on the unpaid principal balance of the applicable Mortgage Loan. After
the initial “interest only” period, each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance
over
the remaining term and to pay interest at the related Mortgage Interest Rate.
In
any case, no Mortgage Loan contains terms or provisions which would result
in
negative amortization;
(cc) If
a
Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will be insured
as
to payment defaults by a Primary Mortgage Insurance Policy issued by a Qualified
Insurer. All provisions of such Primary Mortgage Insurance Policy have been
and
are being complied with, such policy is in full force and effect, and all
premiums due thereunder have been paid. No action, inaction, or event has
occurred and no state of facts exists that has, or will result in the exclusion
from, denial of, or defense to coverage. Any Mortgage Loan subject to a Primary
Mortgage Insurance Policy obligates the Mortgagor thereunder to maintain the
Primary Mortgage Insurance Policy and to pay all premiums and charges in
connection therewith. The mortgage interest rate for the Mortgage Loan as set
forth on the related Mortgage Loan Schedule is net of any such insurance
premium;
(dd) As
to any
Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage
is
in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;
(ee) The
Mortgaged Property is located in the state identified in the related Mortgage
Loan Schedule and consists of a single parcel of real property with a detached
single family residence erected thereon, or a townhouse, or a two-to four-family
dwelling, or an individual condominium unit in a condominium project, or an
individual unit in a planned unit development or a de minimis planned unit
development, provided, however, that no residence or dwelling is a single parcel
of real property with a cooperative housing corporation erected thereon or
a
mobile home. As of the date of origination, no portion of the Mortgaged Property
was used for commercial purposes, and since the date or origination no portion
of the Mortgaged Property has been used for commercial purposes;
(ff) Payments
of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan.
The Mortgage Note is payable on the first day of each month. After the initial
“interest only” payment period, if any, the Mortgage Note in payable in equal
monthly installments of principal and interest, with interest calculated and
payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated
maturity date, over an original term of not more than thirty years from
commencement of amortization;
(gg) A
Mortgage Loan may be subject to a Prepayment Penalty as identified on the
Mortgage Loan Schedule, except that no Mortgage Loan contains any
Prepayment Penalty that extends beyond five years after the date of
origination;
(hh) As
of the
related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to
be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities;
155
(ii) If
the
Mortgaged Property is a condominium unit or a planned unit development (other
than a de minimis planned unit development), or stock in a cooperative housing
corporation, such condominium, cooperative or planned unit development project
meets the eligibility requirements of Xxxxxx Mae and Xxxxxxx Mac;
(jj)
There is
no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue;
there is no violation of any environmental law, rule or regulation with respect
to the Mortgaged Property; and nothing further remains to be done to satisfy
in
full all requirements of each such law, rule or regulation constituting a
prerequisite to use and enjoyment of said property;
(kk) The
Mortgagor has not notified the Company requesting relief under the
Servicemembers’ Civil Relief Act, formerly known as the Soldiers’ and Sailors’
Civil Relief Act of 1940, and the Company has no knowledge of any relief
requested or allowed to the Mortgagor under the Servicemembers’ Civil Relief
Act;
(ll) As
of the
related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged
Property;
(mm) No
action
has been taken or failed to be taken by the Company on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or
defense to coverage under any insurance policy related to a Mortgage Loan
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of
the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of the Company, or
for
any other reason under such coverage;
(nn) The
Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or similar institution which is supervised and examined
by a federal or state authority;
(oo) Each
Mortgage Loan that is secured by a leasheld interest conforms to the Xxxxxx
Xxx
requirements for mortgage loans secured by leasehold estates;
(pp) With
respect to any broker fees collected and paid on any of the Mortgage Loans,
all
broker fees have been properly assessed to the Mortgagor and no claims will
arise as to broker fees that are double charged and for which the Mortgagor
would be entitled to reimbursement;
(qq) With
respect to any Mortgage Loan as to which an affidavit has been delivered to
the
Purchaser certifying that the original Mortgage Note has been lost or destroyed
and not been replaced, if such Mortgage Loan is subsequently in default, the
enforcement of such Mortgage Loan will not be materially adversely affected
by
the absence of the original Mortgage Note;
(rr) Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3) of the Code if transferred to a REMIC on its startup date in exchange
for the regular or residual interests of the REMIC;
(ss) Except
as
provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and
required to be delivered on the related Closing Date have been delivered to
the
Purchaser or its designee all in compliance with the specific requirements
of
the New Century-RWT Agreement. With respect to each Mortgage Loan, the Company
is in possession of a complete Mortgage File and Servicing File except for
such
documents as have been delivered to the Purchaser or its designee;
(tt)
All
information supplied by, on behalf of, or concerning the Mortgagor is true,
accurate and complete and does not contain any statement that at the time
provided and as of the Closing Date is inaccurate or misleading in any material
respect;
156
(uu)
There
does not exist on the related Mortgage Property any hazardous substances,
hazardous wastes or solid wastes, as such terms are defined in the Comprehensive
Environmental Response Compensation and Liability Act, the Resource Conservation
and Recovery Act of 1976, or other federal, state or local environmental
legislation, that imposes an obligation upon the mortgagee to remediate such
hazardous substances; provided, that commonly used household items shall not
constitute “hazardous substances” for purposes of this subsection;
(vv) All
disclosure materials required by applicable law with respect to the making
of
fixed rate and adjustable rate mortgage loans have been received by the
borrower;
(ww) No
Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more
than
95%;
(xx) None
of
the Mortgage Loans are subject to the Home Ownership and Equity Protection
Act
of 1994 or any comparable state law;
(yy) None
of
the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;
(zz) Any
principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. With respect to a first lien Mortgage Loan, the lien
of
the Mortgage securing the consolidated principal amount is expressly insured
as
having first lien priority by a title insurance policy, an endorsement to the
policy insuring the mortgagee’s consolidated interest or by other title evidence
acceptable to Xxxxxx Mae and Xxxxxxx Mac. The consolidated principal amount
does
not exceed the original principal amount of the Mortgage Loan;
(aaa) Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
(bbb) No
Mortgage Loan is a Balloon Mortgage Loan;
(ccc) With
respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such
MIN
is accurately provided on the Mortgage Loan Schedule. The related assignment
of
Mortgage to MERS has been duly and properly recorded;
(ddd) With
respect to each MERS Mortgage Loan, the Company has not received any notice
of
liens or legal actions with respect to such Mortgage Loan and no such notices
have been electronically posted by MERS;
(eee) None
of
the Mortgaged
Properties are manufactured housing;
(fff) With
respect to each Mortgage Loan, the Company has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian
and Trans Union Credit Information Company, in accordance with the Fair Credit
Reporting Act and its implementing regulations;
(ggg) The
Originator has complied with all applicable anti-money laundering laws and
regulations, including without limitation the USA Patriot Act of 2001
(collectively, the “Anti-Money Laundering Laws”); the Originator has established
an anti-money laundering compliance program as required by the Anti-Money
Laundering Laws, has conducted the requisite due diligence in connection with
the origination of each Mortgage Loan for purposes of the Anti-Money Laundering
Laws, including with respect to the legitimacy of the applicable Mortgagor
and
the origin of the assets used by the said Mortgagor to purchase the property
in
question, and maintains, and will maintain, sufficient information to identify
the applicable Mortgagor for purposes of the Anti-Money Laundering
Laws;
(hhh) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
(iii) No
Mortgage Loan is “high cost” as defined by any applicable federal, state, or
local predatory or abusive lending law and no Mortgage Loan is a High Cost
Loan
or Covered Loan, as applicable as such terms are defined in the current Standard
& Poor’s LEVELS ® Glossary Revised, Appendix E. Any breach of this
representation shall be deemed to materially and adversely affect the value
of
the Mortgage Loan and shall require a repurchase of the affected Mortgage
Loan;
157
(jjj) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 that is a “high cost home loan” as
defined under the Georgia Fair Lending Act. Any breach of this representation
shall be deemed to materially and adversely affect the value of the Mortgage
Loan and shall require a repurchase of the affected Mortgage Loan;
(kkk) No
Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home
Ownership Act, which became effective November 27, 2003; and
(lll) There
were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
158
XXI.
|
Seller’s
Purchase, Warranties and Interim Servicing Agreement, dated as of
July 1,
2006, between Redwood Mortgage Funding, Inc. (“RMF”) and Guaranteed Rate,
Inc. (“Guaranteed Rate”) and an Assignment dated [January 15, 2007],
between RMF and RWT Holdings, as modified by the related Acknowledgements
(the “RWT-Guaranteed Rate
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the RWT-Guaranteed
Rate Agreement.
(a)
The
information set forth in the related Mortgage Loan Schedule, including any
diskette or other related data tapes sent to the Purchaser, is complete, true
and correct in all material respects and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(b)
The
Mortgage creates a first lien or a first priority ownership interest in an
estate in fee simple in real property securing the related Mortgage
Note;
(c)
All
payments due on or prior to the related Closing Date for such Mortgage Loan
have
been made as of the related Closing Date, the Mortgage Loan is not delinquent
in
payment more than 30 days and has not been dishonored; there are no material
defaults under the terms of the Mortgage Loan; RWT Holdings has not advanced
funds, or induced, solicited or knowingly received any advance of funds from
a
party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage
Loan; no payment with respect to each Mortgage Loan has been delinquent during
the preceding twelve-month period;
(d)
All
taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing have been paid, or escrow funds have been established in an amount
sufficient to pay for every such escrowed item which remains unpaid and which
has been assessed but is not yet due and payable;
(e)
The
terms of the Mortgage Note and the Mortgage have not been impaired, waived,
altered or modified in any respect, except by written instruments, which have
been recorded to the extent any such recordation is required by law. No
instrument of waiver, alteration or modification has been executed, and no
Mortgagor has been released, in whole or in part, from the terms thereof except
in connection with an assumption agreement and which assumption agreement is
part of the Mortgage File and the terms of which are reflected in the related
Mortgage Loan Schedule; the substance of any such waiver, alteration or
modification has been approved by the issuer of any related Primary Mortgage
Insurance Policy and title insurance policy, to the extent required by the
related policies;
(f)
The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense
of
usury, nor will the operation of any of the terms of the Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render the Mortgage Note
or
Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto; and the Mortgagor was not a debtor in any state
or federal bankruptcy or insolvency proceeding at the time the Mortgage Loan
was
originated;
(g)
All
buildings or other customarily insured improvements upon the Mortgaged Property
are insured by an insurer acceptable under the Xxxxxx Xxx Guides, against loss
by fire, hazards of extended coverage and such other hazards as are provided
for
in the Xxxxxx Mae Guides or by the Xxxxxxx Mac Guides, in an amount representing
coverage not less than the lesser of (i) the maximum insurable value of the
improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such
that
the proceeds thereof shall be sufficient to prevent the Mortgagor and/or the
mortgagee from becoming a co-insurer. All such standard hazard policies are
in
full force and effect and on the date of origination contained a standard
mortgagee clause naming the Company and its successors in interest and assigns
as loss payee and such clause is still in effect and all premiums due thereon
have been paid. If required by the Flood Disaster Protection Act of 1973, as
amended, the Mortgage Loan is covered by a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
which policy conforms to Xxxxxx Mae and Xxxxxxx Mac requirements, in an amount
not less than the amount required by the Flood Disaster Protection Act of 1973,
as amended. Such policy was issued by an insurer acceptable under Xxxxxx Mae
or
Xxxxxxx Mac guidelines. The Mortgage obligates the Mortgagor thereunder to
maintain all such insurance at the Mortgagor’s cost and expense, and upon the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain
such insurance at the Mortgagor’s cost and expense and to seek reimbursement
therefor from the Mortgagor;
159
(h)
Any
and all requirements of any federal, state or local law including, without
limitation,
usury, truth-in-lending, real estate settlement procedures, consumer credit
protection, equal
credit opportunity, fair housing, or disclosure laws applicable to the Mortgage
Loan have been
complied with in all material respects;
(i)
The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission. RWT
Holdings has not waived the performance by the Mortgagor of any action, if
the
Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
in default, nor has RWT Holdings waived any default resulting from any action
or
inaction by the Mortgagor;
(j)
The
related Mortgage is a valid, subsisting, enforceable and perfected first lien
on
the Mortgaged Property including all buildings on the Mortgaged Property and
all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems affixed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing securing the
Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note
do not contain any evidence of any security interest or other interest or right
thereto. Such lien is free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only
to
(1) the lien of non-delinquent current real property taxes and assessments
not
yet due and payable, (2) covenants, conditions and restrictions, rights of
way,
easements and other matters of the public record as of the date of recording
which are acceptable to mortgage lending institutions generally and either
(A)
which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and
(3) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates (1) a valid, subsisting, enforceable and perfected
first
lien and first priority security interest and on the property described therein,
and RWT Holdings has the full right to sell and assign the same to the
Purchaser;
(k)
The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency,
moratorium, reorganization and other laws of general application affecting
the
rights of creditors and by general equitable principles and RWT Holdings has
taken all action necessary to transfer such rights of enforceability to the
Purchaser. All parties to the Mortgage Note and the Mortgage had the legal
capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage
Note and the Mortgage. The Mortgage Note and the Mortgage have been duly and
properly executed by such parties. No fraud, error, omission, misrepresentation,
negligence or similar occurrence with respect to a Mortgage Loan has taken
place
on the part of RWT Holdings or the Mortgagor, or, on the part of any other
party
involved in the origination of the Mortgage Loan. The proceeds of the Mortgage
Loan have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor
have
been complied with. All costs, fees and expenses incurred in making or closing
the Mortgage Loan and the recording of the Mortgage were paid or are in the
process of being paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due under the Mortgage Note or Mortgage;
160
(l)
RWT
Holdings is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser
or its designee will be the owner of record of the Mortgage and the indebtedness
evidenced by the Mortgage Note, and upon the sale of the Mortgage Loan to the
Purchaser, the Company will retain the Servicing File in trust for the Purchaser
only for the purpose of interim servicing and supervising the interim servicing
of the Mortgage Loan. Immediately prior to the transfer and assignment to the
Purchaser on the related Closing Date, the Mortgage Loan, including the Mortgage
Note and the Mortgage, were not subject to an assignment or pledge, and RWT
Holdings had good and marketable title to and was the sole owner thereof and
had
full right to transfer and sell the Mortgage Loan to the Purchaser free and
clear of any encumbrance, equity, lien, pledge, charge, claim or security
interest and has the full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign the
Mortgage Loan pursuant to the RWT-Guaranteed Rate Agreement and following the
sale of the Mortgage Loan, the Purchaser will own such Mortgage Loan free and
clear of any encumbrance, equity, participation interest, lien, pledge, charge,
claim or security interest. The Company intends to relinquish all rights to
possess, control and monitor the Mortgage Loan, except for the purposes of
servicing the Mortgage Loan as set forth in the RWT-Guaranteed Rate Agreement.
Either the Mortgagor is a natural person or the Mortgagor is an inter-vivos
trust acceptable to Xxxxxx Mae;
(m)
Each
Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Xxxxxx Xxx or
Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac
and qualified to do business in the jurisdiction where the Mortgaged Property
is
located, insuring (subject to the exceptions contained in (j)(1), (2) and (3)
above) the Company, its successors and assigns, as to the first priority lien
of
the Mortgage in the original principal amount of the Mortgage Loan.
Additionally, such policy affirmatively insures ingress and egress to and from
the Mortgaged Property.
Where required by applicable state law or regulation, the Mortgagor has been
given the
opportunity to choose the carrier of the required mortgage title insurance.
The
Company, its successors
and assigns, are the sole insured of such lender’s title insurance policy, such
title insurance
policy has been duly and validly endorsed to the Purchaser or the assignment
to
the Purchaser
of the Company’s interest therein does not require the consent of or
notification to the insurer
and such lender’s title insurance policy is in full force and effect and will be
in full force and
effect upon the consummation of the transactions contemplated by the
RWT-Guaranteed Rate Agreement and the related Purchase Price and Terms Letter.
No claims have been made under such lender’s title insurance policy, and no
prior holder of the related Mortgage, including the Company, has done, by act
or
omission, anything which would impair the coverage of such lender’s title
insurance policy;
(n)
There
is no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice
and the expiration of any grace or cure period, would constitute a default,
breach, violation or event permitting acceleration; and neither RWT Holdings
nor
any prior mortgagee has waived any default, breach, violation or event
permitting acceleration;
(o)
As of
the related Closing Date, there are no mechanics’ or similar liens or claims
which have been filed for work, labor or material (and no rights outstanding
that under law could give rise to such liens) affecting the related Mortgaged
Property which are or may be liens prior to or equal to the lien of the related
Mortgage;
161
(p)
All
improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries
and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances;
(q)
The
Mortgage Loan was originated by or for the Company. The Mortgage Loan complies
with all the terms, conditions and requirements of the Company’s Underwriting
Standards in effect at the time of origination of such Mortgage Loan. The
Mortgage Notes and Mortgages
(exclusive of any riders) are on forms generally acceptable to Xxxxxx Xxx or
Xxxxxxx Mac.
The
Company is currently selling loans to Xxxxxx Mae and/or Xxxxxxx Mac which are
the same
document forms as the Mortgage Notes and Mortgages (inclusive of any riders).
The Mortgage Loan bears interest at the Mortgage Interest Rate set forth in
the
related Mortgage Loan
Schedule, and Monthly Payments under the Mortgage Note are due and payable
on
the first day
of
each month. The Mortgage contains the usual and enforceable provisions of the
originator at the time of origination for the acceleration of the payment of
the
unpaid principal amount of the Mortgage Loan if the related Mortgaged Property
is sold without the prior consent of the mortgagee thereunder;
(r)
As of
the related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At
origination of the Mortgage Loan there was, and there currently is, no
proceeding pending for the total or partial condemnation of the Mortgaged
Property. There have not been any condemnation proceedings with respect to
the
Mortgaged Property and there are no such proceedings scheduled to commence
at a
future date;
(s)
The
Mortgage and related Mortgage Note contain customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including
(i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale,
and (ii) otherwise
by judicial foreclosure. Following the date of origination of the Mortgage
Loan,
the Mortgaged
Property has not been subject to any bankruptcy proceeding or foreclosure
proceeding and the Mortgagor has not filed for protection under applicable
bankruptcy laws. There is no homestead or other exemption or right available
to
the Mortgagor or any other person which would interfere with the right to sell
the Mortgaged Property at a trustee’s sale or the right to foreclose the
Mortgage;
(t)
The
Mortgage Note and Mortgage are on forms acceptable to Xxxxxx Mae or Xxxxxxx
Mac;
(u)
If
the Mortgage constitutes a deed of trust, a trustee, authorized and duly
qualified if required under applicable law to act as such, has been properly
designated and currently so serves and is named in the Mortgage, and no fees
or
expenses are or will become payable by the Purchaser to the trustee under the
deed of trust, except in connection with a trustee’s sale or attempted sale
after default by the Mortgagor;
(v)
The
Mortgage File contains an appraisal of the related Mortgaged Property signed
prior to the final approval of the mortgage loan application by a Qualified
Appraiser, who had no interest, direct or indirect, in the Mortgaged Property
or
in any loan made on the security thereof, and whose compensation is not affected
by the approval or disapproval of the Mortgage Loan, and the appraisal and
appraiser both satisfy the requirements of Xxxxxx Mae or Xxxxxxx Mac and Title
XI of FIRREA and the regulations promulgated thereunder, all as in effect on
the
date the Mortgage Loan was originated. The appraisal is in a form acceptable
to
Xxxxxx Mae or Xxxxxxx Mac;
162
(w)
All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (B) (1) organized under the laws of such state, or
(2)
qualified to do business in such state, or (3) federal savings and loan
associations or national banks or a Federal Home Loan Bank or savings bank
having principal offices in such state, or (4) not doing business in such
state;
(x)
As of
the related Closing Date, the related Mortgage Note is not and has not been
secured by any collateral except the lien of the corresponding Mortgage and
the
security interest of any applicable security agreement or chattel mortgage
referred to in (j) above and such collateral does not serve as security for
any
other obligation;
(y)
The
Mortgagor has received all disclosure materials required by applicable law
with
respect to the making of such mortgage loans;
(z)
The
Mortgage Loan does not contain “graduated payment” features and does
not
have
a shared appreciation or other contingent interest feature; no Mortgage Loan
contains any
buydown provisions;
(aa)
As
of the related Closing Date, the Mortgagor is not in bankruptcy and the
Mortgagor is not insolvent and RWT Holdings has no knowledge of any
circumstances or condition with respect to the Mortgage, the Mortgaged Property,
the Mortgagor or the Mortgagor’s credit standing that could reasonably be
expected to cause investors to regard the Mortgage Loan as an unacceptable
investment, cause the Mortgage Loan to become delinquent, or materially
adversely affect the value or marketability of the Mortgage Loan;
(bb)
The
Mortgage Loans have an original term to maturity of not more than 40 years
with
interest payable in arrears on the first day of each month. Each Mortgage Note
requires a monthly payment, which is sufficient to fully amortize the unpaid
principal balance over the remaining term and to pay interest at the related
Mortgage Interest Rate. Notwithstanding the immediately preceding sentence
with
respect to Mortgage Loans with an initial “interest only” payment period, the
monthly payments due under the related Mortgage Note satisfy only the monthly
interest on the unpaid principal balance of the applicable Mortgage Loan. After
the initial “interest only” period, each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance
over
the remaining term and to pay interest at the related Mortgage Interest Rate.
In
any case, no Mortgage Loan contains terms or provisions which would result
in
negative amortization;
(cc)
If a
Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Xxxxxx Mae Guides and will be
insured as to payment defaults by a Primary Mortgage Insurance Policy issued
by
a Qualified Insurer. All provisions of such Primary Mortgage Insurance Policy
have been and are being complied with, such policy is in full force and effect,
and all premiums due thereunder have been paid. No action, inaction, or event
has occurred and no state of facts exists that has, or will result in the
exclusion from, denial of, or defense to coverage. Any Mortgage Loan subject
to
a Primary Mortgage Insurance Policy obligates the Mortgagor thereunder to
maintain the Primary Mortgage Insurance Policy and to pay all premiums and
charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of any such
insurance premium. No Mortgage Loan is subject to a lender-paid mortgage
insurance policy;
(dd)
As
to any Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of
Mortgage is in recordable form and is acceptable for recording under the laws
of
the jurisdiction in which the Mortgaged Property is located;
(ee)
The
Mortgaged Property is located in the state identified in the related Mortgage
Loan Schedule and consists of a single parcel of real property with a detached
single family residence erected thereon, or a townhouse, or a two-to four-family
dwelling, or an individual condominium unit in a condominium project, or an
individual unit in a planned unit development or a de minimis planned unit
development, provided, however, that no residence or dwelling is a single parcel
of real property with a cooperative housing corporation erected thereon, or
a
mobile home. As of the date of origination, no portion of the Mortgaged Property
was used for commercial purposes, and since the date or origination no portion
of the Mortgaged Property has been used for commercial purposes;
163
(ff)
Payments of principal and/or interest on the Mortgage Loan commenced no more
than sixty (60) days after the funds were disbursed in connection with the
Mortgage Loan. The Mortgage Note is payable on the first day of each month.
After the initial “interest only” payment period, if any, the Mortgage Note in
payable in equal monthly installments of principal and interest, with interest
calculated and payable in arrears, sufficient to amortize the Mortgage
Loan
fully by the stated maturity date, over an original term of not more than thirty
years from commencement
of amortization;
(gg)
The
Mortgage Loans may be subject to a Prepayment Penalty as identified on the
Mortgage Loan Schedule, except that no Mortgage Loan contains any
Prepayment Penalty that extends beyond five years after the date of
origination;
(hh)
As
of the related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to
be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities;
(ii)
If
the Mortgaged Property is a condominium unit or a planned unit development
(other than a de minimis planned unit development), or stock in a cooperative
housing corporation, such condominium, cooperative or planned unit development
project meets the eligibility requirements of Xxxxxx Xxx and Xxxxxxx
Mac;
(jj)
There is no pending action or proceeding directly involving the Mortgaged
Property in which compliance with any environmental law, rule or regulation
is
an issue; there is no violation of any environmental law, rule or regulation
with respect to the Mortgaged Property; and
nothing further remains to be done to satisfy in full all requirements of each
such law, rule or regulation
constituting a prerequisite to use and enjoyment of said property;
(kk)
The
Mortgagor has not notified RWT Holdings requesting relief under the
Servicemembers’ Civil Relief Act, formerly known as the Soldiers’ and Sailors’
Civil Relief Act of
1940,
and RWT Holdings has no knowledge of any relief requested or allowed to the
Mortgagor under
the
Servicemembers’ Civil Relief Act;
(ll)
As
of the related Closing Date, no Mortgage Loan was in construction or
rehabilitation status or has facilitated the trade-in or exchange of a Mortgaged
Property;
(mm)
No
action has been taken or failed to be taken by RWT Holdings on or prior to
the
Closing Date which has resulted or will result in an exclusion from, denial
of,
or defense to coverage under any insurance policy related to a Mortgage Loan
(including, without limitation, any
exclusions, denials or defenses which would limit or reduce the availability
of
the timely payment
of the full amount of the loss otherwise due thereunder to the insured) whether
arising out
of
actions, representations, errors, omissions, negligence, or fraud of RWT
Holdings, or for any other
reason under such coverage;
164
(nn)
The
Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or similar institution which is supervised and examined
by a federal or state authority;
(oo)
No
Mortgaged Property is subject to a ground lease;
(pp)
With
respect to any broker fees collected and paid on any of the Mortgage Loans,
all
broker fees have been properly assessed to the Mortgagor and no claims will
arise as to broker fees that are double charged and for which the Mortgagor
would be entitled to reimbursement;
(qq)
With
respect to any Mortgage Loan as to which an affidavit has been delivered to
the
Purchaser certifying that the original Mortgage Note has been lost or destroyed
and not been replaced, if such Mortgage Loan is subsequently in default, the
enforcement of such Mortgage Loan will not be materially adversely affected
by
the absence of the original Mortgage Note;
(rr)
Each
Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A)
of
the Code and Treasury Regulations Section 1.860G-2(a)(1);
(ss)
Except as provided in Section 2.07, the Mortgage Note, the Mortgage, the
Assignment of Mortgage and the other Mortgage Loan Documents set forth in
Exhibit A-1 to the Agreement and required to be delivered on the related Closing
Date have been delivered to the Purchaser or its designee all in compliance
with
the specific requirements of the RWT-Guaranteed Rate Agreement. With respect
to
each Mortgage Loan, the Company is in possession of a complete Mortgage File
and
Servicing File except for such documents as have been delivered to the Purchaser
or its designee;
(tt)
All
information supplied by, on behalf of, or concerning the Mortgagor is
true,
accurate and complete and does not contain any statement that at the time
provided and as of
the
Closing Date is or will be inaccurate or misleading in any material
respect;
(uu)
There does not exist on the related Mortgage Property any hazardous substances,
hazardous wastes or solid wastes, as such terms are defined in the Comprehensive
Environmental Response Compensation and Liability Act, the Resource Conservation
and Recovery Act of 1976, or other federal, state or local environmental
legislation;
(vv)
All
disclosure materials required by applicable law with respect to the making
of
fixed rate and adjustable rate mortgage loans have been received by the
borrower;
(ww)
No
Mortgage Loan had a Loan-to-Value Ratio at the time of origination of
more
than
95%;
(xx)
None
of the Mortgage Loans are subject to the Home Ownership and Equity Protection
Act of 1994 or any comparable state law;
(yy)
None
of the proceeds of the Mortgage Loan were used to finance single premium
credit
insurance policies;
(zz)
Any
principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having first lien priority by a title
insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Xxxxxx Xxx and
Xxxxxxx Mac. The consolidated principal amount does not exceed the original
principal amount of the Mortgage Loan;
165
(aaa)
Interest on each Mortgage Loan is calculated on the basis of a 360-day year
consisting of twelve 30-day months;
(bbb)
No
Mortgage Loan is a Balloon Mortgage Loan;
(ccc)
With respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and
such MIN is accurately provided on the Mortgage Loan Schedule. The related
assignment of Mortgage to MERS has been duly and properly recorded;
(ddd)
With respect to each MERS Mortgage Loan, RWT Holdings has not received any
notice of liens or legal actions with respect to such Mortgage Loan and no
such
notices have been electronically posted by MERS;
(eee)
None of the Mortgaged Properties are manufactured housing;
(fff)
With respect to each Mortgage Loan, the Company has fully and accurately
furnished complete information on the related borrower credit files to Equifax,
Experian and Trans Union Credit Information Company, in accordance with the
Fair
Credit Reporting Act and its implementing regulations;
(ggg)
The
Company has complied with all applicable anti-money laundering laws and
regulations, including without limitation the USA Patriot Act of 2001
(collectively, the “Anti-Money Laundering Laws”); and the Company has
established an anti-money laundering compliance program as required by the
Anti-Money Laundering Laws;
(hhh)
Each Mortgage Loan at the time it was made complied in all material respects
with applicable local, state, and federal laws, including, but not limited
to,
all applicable predatory and abusive lending laws;
(iii)
No
Mortgage Loan is a High Cost or Covered Loan, as applicable and no mortgage
loan
is a “high cost” or “covered” mortgage loan, as applicable (as such terms are
defined in the then current Standard and Poor’s LEVELS Glossary which is now
Version 6.0, Appendix E). No Mortgage Loan is in violation of any applicable
federal, state, or local predatory or abusive lending law. Any breach of this
representation shall be deemed to materially and adversely affect the value
of
the Mortgage Loan and shall require a repurchase of the affected Mortgage
Loan;
(jjj)
No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act. Any breach of this representation
shall be deemed to materially and adversely
affect the value of the Mortgage Loan and shall require a repurchase of the
affected Mortgage
Loan;
(kkk)
No
Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
Home Ownership Act, which became effective November 27, 2003; and
(lll)
There were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
166
XXII.
|
Seller’s
Purchase, Warranties and Interim Servicing Agreement, dated as of
September 28, 2006, between Redwood Mortgage Funding, Inc. (“RMF”) and
Xxxx Financial, LLC (“Xxxx Financial”) and an Assignment dated [January
15], 2007, between RMF and RWT Holdings, as modified by the related
Acknowledgements (the “RWT-Xxxx Financial
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the RWT-Xxxx Financial
Agreement.
(a) The
information set forth in the related Mortgage Loan Schedule, including any
diskette or other related data tapes sent to the Purchaser, is complete, true
and correct in all material respects and the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(b) The
Mortgage creates a first lien or a first priority ownership interest in an
estate in fee simple in real property securing the related Mortgage
Note;
(c) All
payments due on or prior to the related Closing Date for such Mortgage Loan
have
been made as of the related Closing Date, the Mortgage Loan is not delinquent
in
payment more than 30 days and has not been dishonored; there are no material
defaults under the terms of the Mortgage Loan; RWT Holdings has not advanced
funds, or induced, solicited or knowingly received any advance of funds from
a
party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage
Loan; no payment with respect to each Mortgage Loan has been delinquent during
the preceding twelve-month period;
(d) All
taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing have been paid, or escrow funds have been established in an amount
sufficient to pay for every such escrowed item which remains unpaid and which
has been assessed but is not yet due and payable;
(e) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments, which have been recorded
to the extent any such recordation is required by law. No instrument of waiver,
alteration or modification has been executed, and no Mortgagor has been
released, in whole or in part, from the terms thereof except in connection
with
an assumption agreement and which assumption agreement is part of the Mortgage
File and the terms of which are reflected in the related Mortgage Loan Schedule;
the substance of any such waiver, alteration or modification has been approved
by the issuer of any related Primary Mortgage Insurance Policy and title
insurance policy, to the extent required by the related policies;
(f) The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense
of
usury, nor will the operation of any of the terms of the Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render the Mortgage Note
or
Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto; and the Mortgagor was not a debtor in any state
or federal bankruptcy or insolvency proceeding at the time the Mortgage Loan
was
originated;
167
(g) All
buildings or other customarily insured improvements upon the Mortgaged Property
are insured by an insurer acceptable under the Xxxxxx Xxx Guides, against loss
by fire, hazards of extended coverage and such other hazards as are provided
for
in the Xxxxxx Mae Guides or by the Xxxxxxx Mac Guides, in an amount representing
coverage not less than the lesser of (i) the maximum insurable value of the
improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such
that
the proceeds thereof shall be sufficient to prevent the Mortgagor and/or the
mortgagee from becoming a co-insurer. All such standard hazard policies are in
full force and effect and on the date of origination contained a standard
mortgagee clause naming the Company and its successors in interest and assigns
as loss payee and such clause is still in effect and all premiums due thereon
have been paid. If required by the Flood Disaster Protection Act of 1973, as
amended, the Mortgage Loan is covered by a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
which policy conforms to Xxxxxx Mae and Xxxxxxx Mac requirements, in an amount
not less than the amount required by the Flood Disaster Protection Act of 1973,
as amended. Such policy was issued by an insurer acceptable under Xxxxxx Mae
or
Xxxxxxx Mac guidelines. The Mortgage obligates the Mortgagor thereunder to
maintain all such insurance at the Mortgagor’s cost and expense, and upon the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain
such insurance at the Mortgagor’s cost and expense and to seek reimbursement
therefor from the Mortgagor;
(h) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity, fair housing, or disclosure laws
applicable to the Mortgage Loan have been complied with in all material
respects;
(i) The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission. RWT
Holdings has not waived the performance by the Mortgagor of any action, if
the
Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
in default, nor has RWT Holdings waived any default resulting from any action
or
inaction by the Mortgagor;
(j) The
related Mortgage is a valid, subsisting, enforceable and perfected first lien
on
the Mortgaged Property including all buildings on the Mortgaged Property and
all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems affixed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing securing the
Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note
do not contain any evidence of any security interest or other interest or right
thereto. Such lien is free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only
to
(1) the lien of non-delinquent current real property taxes and assessments
not
yet due and payable, (2) covenants, conditions and restrictions, rights of
way,
easements and other matters of the public record as of the date of recording
which are acceptable to mortgage lending institutions generally and either
(A)
which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and
(3) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates (1) a valid, subsisting, enforceable and perfected
first
lien and first priority security interest and on the property described therein,
and RWT Holdings has the full right to sell and assign the same to the
Purchaser;
168
(k) The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency,
moratorium, reorganization and other laws of general application affecting
the
rights of creditors and by general equitable principles and RWT Holdings has
taken all action necessary to transfer such rights of enforceability to the
Purchaser. All parties to the Mortgage Note and the Mortgage had the legal
capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage
Note and the Mortgage. The Mortgage Note and the Mortgage have been duly and
properly executed by such parties. No fraud, error, omission, misrepresentation,
negligence or similar occurrence with respect to a Mortgage Loan has taken
place
on the part of RWT Holdings or the Mortgagor, or, on the part of any other
party
involved in the origination of the Mortgage Loan. The proceeds of the Mortgage
Loan have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor
have
been complied with. All costs, fees and expenses incurred in making or closing
the Mortgage Loan and the recording of the Mortgage were paid or are in the
process of being paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due under the Mortgage Note or Mortgage;
(l) RWT
Holdings is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser
or its designee will be the owner of record of the Mortgage and the indebtedness
evidenced by the Mortgage Note, and upon the sale of the Mortgage Loan to the
Purchaser, the Company will retain the Servicing File in trust for the Purchaser
only for the purpose of interim servicing and supervising the interim servicing
of the Mortgage Loan. Immediately prior to the transfer and assignment to the
Purchaser on the related Closing Date, the Mortgage Loan, including the Mortgage
Note and the Mortgage, were not subject to an assignment or pledge, and RWT
Holdings had good and marketable title to and was the sole owner thereof and
had
full right to transfer and sell the Mortgage Loan to the Purchaser free and
clear of any encumbrance, equity, lien, pledge, charge, claim or security
interest (except for the Company’s warehouse lenders in the ordinary course of
business where any such encumbrance, equity, lien, pledge, charge, claim or
security interest by the Company’s warehouse lenders shall be released on the
related Closing Date), and has the full right and authority subject to no
interest or participation of, or agreement with, any other party, to sell and
assign the Mortgage Loan pursuant to the RWT-Xxxx Financial Agreement and
following the sale of the Mortgage Loan, the Purchaser will own such Mortgage
Loan free and clear of any encumbrance, equity, participation interest, lien,
pledge, charge, claim or security interest. The Company intends to relinquish
all rights to possess, control and monitor the Mortgage Loan, except for the
purposes of servicing the Mortgage Loan as set forth in the RWT-Xxxx Financial
Agreement. Either the Mortgagor is a natural person or the Mortgagor is an
inter-vivos trust acceptable to Xxxxxx Mae;
169
(m) Each
Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Xxxxxx Xxx or
Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac
and qualified to do business in the jurisdiction where the Mortgaged Property
is
located, insuring (subject to the exceptions contained in (j)(1), (2) and (3)
above) RWT Holdings, its successors and assigns, as to the first priority lien
of the Mortgage in the original principal amount of the Mortgage Loan.
Additionally, such policy affirmatively insures ingress and egress to and from
the Mortgaged Property. Where required by applicable state law or regulation,
the Mortgagor has been given the opportunity to choose the carrier of the
required mortgage title insurance. RWT Holdings, its successors and assigns,
are
the sole insured of such lender’s title insurance policy, such title insurance
policy has been duly and validly endorsed to the Purchaser or the assignment
to
the Purchaser of RWT Holdings’ interest therein does not require the consent of
or notification to the insurer and such lender’s title insurance policy is in
full force and effect and will be in full force and effect upon the consummation
of the transactions contemplated by the RWT-Xxxx Financial Agreement and the
related Purchase Price and Terms Letter. No claims have been made under such
lender’s title insurance policy, and no prior holder of the related Mortgage,
including RWT Holdings, has done, by act or omission, anything which would
impair the coverage of such lender’s title insurance policy;
(n) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event permitting acceleration; and
neither RWT Holdings nor any prior mortgagee has waived any default, breach,
violation or event permitting acceleration;
(o) As
of the
related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights outstanding that
under law could give rise to such liens) affecting the related Mortgaged
Property which are or may be liens prior to or equal to the lien of the related
Mortgage;
(p) All
improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries
and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances;
(q)The
Mortgage Loan was originated by or for the Company. The Mortgage Loan complies
with all the terms, conditions and requirements of the Company’s Underwriting
Standards in effect at the time of origination of such Mortgage Loan. The
Mortgage Notes and Mortgages (exclusive of any riders) are on forms generally
acceptable to Xxxxxx Xxx or Xxxxxxx Mac. The Company is approved to sell loans
to Xxxxxx Mae and/or Xxxxxxx Mac. The Mortgage Loan bears interest at the
Mortgage Interest Rate set forth in the related Mortgage Loan Schedule, and
Monthly Payments under the Mortgage Note are due and payable on the first day
of
each month. The Mortgage contains the usual and enforceable provisions of the
originator at the time of origination for the acceleration of the payment of
the
unpaid principal amount of the Mortgage Loan if the related Mortgaged Property
is sold without the prior consent of the mortgagee thereunder;
170
(r) As
of the
related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At
origination of the Mortgage Loan there was, and there currently is, no
proceeding pending for the total or partial condemnation of the Mortgaged
Property. There have not been any condemnation proceedings with respect to
the
Mortgaged Property and there are no such proceedings scheduled to commence
at a
future date;
(s) The
Mortgage and related Mortgage Note contain customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including (i) in the case of a Mortgage designated as a deed
of trust, by trustee’s sale, and (ii) otherwise by judicial foreclosure.
Following the date of origination of the Mortgage Loan, the Mortgaged Property
has not been subject to any bankruptcy proceeding or foreclosure proceeding
and
the Mortgagor has not filed for protection under applicable bankruptcy laws.
There is no homestead or other exemption or right available to the Mortgagor
or
any other person which would interfere with the right to sell the Mortgaged
Property at a trustee’s sale or the right to foreclose the
Mortgage;
(t) The
Mortgage Note and Mortgage are on forms acceptable to Xxxxxx Mae or Xxxxxxx
Mac;
(u)If
the
Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified
if required under applicable law to act as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses
are or will become payable by the Purchaser to the trustee under the deed of
trust, except in connection with a trustee’s sale or attempted sale after
default by the Mortgagor;
(v) The
Mortgage File contains an appraisal of the related Mortgaged Property signed
prior to the final approval of the mortgage loan application by a Qualified
Appraiser, who had no interest, direct or indirect, in the Mortgaged Property
or
in any loan made on the security thereof, and whose compensation is not affected
by the approval or disapproval of the Mortgage Loan, and the appraisal and
appraiser both satisfy the requirements of Xxxxxx Mae or Xxxxxxx Mac and Title
XI of FIRREA and the regulations promulgated thereunder, all as in effect on
the
date the Mortgage Loan was originated. The appraisal is in a form acceptable
to
Xxxxxx Mae or Xxxxxxx Mac;
(w)All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (B) (1) organized under the laws of such state, or
(2)
qualified to do business in such state, or (3) federal savings and loan
associations or national banks or a Federal Home Loan Bank or savings bank
having principal offices in such state, or (4) not doing business in such
state;
171
(x) As
of the
related Closing Date, the related Mortgage Note is not and has not been secured
by any collateral except the lien of the corresponding Mortgage and the security
interest of any applicable security agreement or chattel mortgage referred
to in
(j) above and such collateral does not serve as security for any other
obligation;
(y) The
Mortgagor has received all disclosure materials required by applicable law
with
respect to the making of such mortgage loans;
(z) The
Mortgage Loan does not contain “graduated payment” features and does not have a
shared appreciation or other contingent interest feature; no Mortgage Loan
contains any buydown provisions;
(aa) As
of the
related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor
is
not insolvent and RWT Holdings has no knowledge of any circumstances or
condition with respect to the Mortgage, the Mortgaged Property, the Mortgagor
or
the Mortgagor’s credit standing that could reasonably be expected to cause
investors to regard the Mortgage Loan as an unacceptable investment, cause
the
Mortgage Loan to become delinquent, or materially adversely affect the value
or
marketability of the Mortgage Loan;
(bb) The
Mortgage Loans have an original term to maturity of not more than 40 years
with
interest payable in arrears on the first day of each month. Each Mortgage Note
requires a monthly payment, which is sufficient to fully amortize the unpaid
principal balance over the remaining term and to pay interest at the related
Mortgage Interest Rate. Notwithstanding the immediately preceding sentence
with
respect to Mortgage Loans with an initial “interest only” payment period, the
monthly payments due under the related Mortgage Note satisfy only the monthly
interest on the unpaid principal balance of the applicable Mortgage Loan. After
the initial “interest only” period, each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance
over
the remaining term and to pay interest at the related Mortgage Interest Rate.
In
any case, no Mortgage Loan contains terms or provisions which would result
in
negative amortization;
(cc) If
a
Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Xxxxxx Mae Guides and will be
insured as to payment defaults by a Primary Mortgage Insurance Policy issued
by
a Qualified Insurer. All provisions of such Primary Mortgage Insurance Policy
have been and are being complied with, such policy is in full force and effect,
and all premiums due thereunder have been paid. No action, inaction, or event
has occurred and no state of facts exists that has, or will result in the
exclusion from, denial of, or defense to coverage. Any Mortgage Loan subject
to
a Primary Mortgage Insurance Policy obligates the Mortgagor thereunder to
maintain the Primary Mortgage Insurance Policy and to pay all premiums and
charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of any such
insurance premium. No Mortgage Loan is subject to a lender-paid mortgage
insurance policy. The Purchaser will not terminate any primary mortgage
insurance policy which has been reinsured by Company’s captive, except as
legally required; and, if the servicing rights have been sold, the Purchaser
will use its best efforts to have the servicer not so terminate such policy,
except as legally required;
172
(dd) As
to any
Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage
is
in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;
(ee) The
Mortgaged Property is located in the state identified in the related Mortgage
Loan Schedule and consists of a single parcel of real property with a detached
single family residence erected thereon, or a townhouse, or a two-to four-family
dwelling, or an individual condominium unit in a condominium project, or an
individual unit in a planned unit development or a de minimis planned unit
development, provided, however, that no residence or dwelling is a single parcel
of real property with a cooperative housing corporation erected thereon, or
a
mobile home. As of the date of origination, no portion of the Mortgaged Property
was used for commercial purposes, and since the date or origination no portion
of the Mortgaged Property has been used for commercial purposes;
(ff) Payments
of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan.
The Mortgage Note is payable on the first day of each month. After the initial
“interest only” payment period, if any, the Mortgage Note in payable in equal
monthly installments of principal and interest, with interest calculated and
payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated
maturity date, over an original term of not more than thirty years from
commencement of amortization;
(gg) The
Mortgage Loans may be subject to a Prepayment Penalty as identified on the
Mortgage Loan Schedule, except that no Mortgage Loan contains any
Prepayment Penalty that extends beyond five years after the date of
origination;
(hh) As
of the
related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to
be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities;
(ii) If
the
Mortgaged Property is a condominium unit or a planned unit development (other
than a de minimis planned unit development), or stock in a cooperative housing
corporation, such condominium, cooperative or planned unit development project
meets the eligibility requirements of Xxxxxx Xxx and Xxxxxxx Mac;
(jj) There
is
no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue;
and, to the best knowledge of RWT Holdings, there is no violation of any
environmental law, rule or regulation with respect to the Mortgaged Property;
and nothing further remains to be done to satisfy in full all requirements
of
each such law, rule or regulation constituting a prerequisite to use and
enjoyment of said property;
173
(kk) The
Mortgagor has not notified RWT Holdings requesting relief under the
Servicemembers’ Civil Relief Act, formerly known as the Soldiers’ and Sailors’
Civil Relief Act of 1940, and RWT Holdings has no knowledge of any relief
requested or allowed to the Mortgagor under the Servicemembers’ Civil Relief
Act;
(ll) As
of the
related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged
Property;
(mm) No
action
has been taken or failed to be taken by RWT Holdings on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or
defense to coverage under any insurance policy related to a Mortgage Loan
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of
the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of RWT Holdings, or
for
any other reason under such coverage;
(nn) The
Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or similar institution which is supervised and examined
by a federal or state authority;
(oo) Each
Mortgage Loan that is secured by a leasehold interest conforms to the FNMA
requirements for mortgage loans secured by leasehold estates;
(pp) With
respect to any broker fees collected and paid on any of the Mortgage Loans,
all
broker fees have been properly assessed to the Mortgagor and no claims will
arise as to broker fees that are double charged and for which the Mortgagor
would be entitled to reimbursement;
(qq) With
respect to any Mortgage Loan as to which an affidavit has been delivered to
the
Purchaser certifying that the original Mortgage Note has been lost or destroyed
and not been replaced, if such Mortgage Loan is subsequently in default, the
enforcement of such Mortgage Loan will not be materially adversely affected
by
the absence of the original Mortgage Note;
(rr) Each
Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A)
of
the Code and Treasury Regulations Section 1.860G-2(a)(1);
174
(ss) Except
as
provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and
required to be delivered on the related Closing Date have been delivered to
the
Purchaser or its designee all in compliance with the specific requirements
of
the RWT-Xxxx Financial Agreement. With respect to each Mortgage Loan, the
Company is in possession of a complete Mortgage File and Servicing File except
for such documents as have been delivered to the Purchaser or its
designee;
(tt) All
information supplied by, on behalf of, or concerning the Mortgagor is true,
accurate and complete and does not contain any statement that at the time
provided and as of the Closing Date is or will be inaccurate or misleading
in
any material respect;
(uu) To
the
best of knowledge of RWT Holdings, there does not exist on the related Mortgage
Property any hazardous substances, hazardous wastes or solid wastes, as such
terms are defined in the Comprehensive Environmental Response Compensation
and
Liability Act, the Resource Conservation and Recovery Act of 1976, or other
federal, state or local environmental legislation;
(vv) All
disclosure materials required by applicable law with respect to the making
of
fixed rate and adjustable rate mortgage loans have been received by the
borrower;
(ww) No
Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more
than
95%;
(xx) None
of
the Mortgage Loans are subject to the Home Ownership and Equity Protection
Act
of 1994 or any comparable state law;
(yy) None
of
the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;
(zz) Any
principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having first lien priority by a title
insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Xxxxxx Mae and
Xxxxxxx Mac. The consolidated principal amount does not exceed the original
principal amount of the Mortgage Loan;
(aaa) Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
175
(bbb) No
Mortgage Loan is a Balloon Mortgage Loan;
(ccc) With
respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such
MIN
is accurately provided on the Mortgage Loan Schedule. The related assignment
of
Mortgage to MERS has been duly and properly recorded;
(ddd) With
respect to each MERS Mortgage Loan, RWT Holdings has not received any notice
of
liens or legal actions with respect to such Mortgage Loan and no such notices
have been electronically posted by MERS;
(eee) No
Mortgaged
Property is Manufactured Housing;
(fff) Reserved;
(ggg) The
Company has complied with all applicable anti-money laundering laws and
regulations, including without limitation the USA Patriot Act of 2001
(collectively, the “Anti-Money Laundering Laws”); and the Company has
established an anti-money laundering compliance program as required by the
Anti-Money Laundering Laws;
(hhh) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
(iii) No
Mortgage Loan is a High Cost Loan or Covered Loan, as applicable and no mortgage
loan is a “high cost” or “covered” mortgage loan, as applicable (as such terms
are defined in the then current Standard and Poor’s LEVELS Glossary which is now
Version 6.0, Appendix E). No Mortgage Loan is in violation of any applicable
federal, state, or local predatory or abusive lending law. Any breach of this
representation shall be deemed to materially and adversely affect the value
of
the Mortgage Loan and shall require a repurchase of the affected Mortgage
Loan;
(jjj) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act. Any breach of this representation
shall be deemed to materially and adversely affect the value of the Mortgage
Loan and shall require a repurchase of the affected Mortgage Loan;
(kkk) No
Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home
Ownership Act, which became effective November 27, 2003; and
176
(lll)
There were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
177
XXIII.
|
Seller’s
Purchase, Warranties and Interim Servicing Agreement, dated as of
June 1,
2006 by and between Redwood Mortgage Funding Inc. (“RMF”) and Provident
Funding Associates, LLP (“Provident”), and an Assignment dated [January
15], 2007, between RMF and RWT Holdings (together, the “Provident-RWT
Agreement”).
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the Provident-RWT
Agreement.
(a) The
information set forth in the related Mortgage Loan Schedule, including any
diskette or other related data tapes sent to the Purchaser, is complete, true
and correct in all material respects and the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(b) The
Mortgage creates a first lien or a first priority ownership interest in an
estate in fee simple in real property securing the related Mortgage
Note;
(c) All
payments due on or prior to the related Closing Date for such Mortgage Loan
have
been made as of the related Closing Date, the Mortgage Loan is not delinquent
in
payment more than 30 days and has not been dishonored; there are no material
defaults under the terms of the Mortgage Loan; the Company has not advanced
funds, or induced, solicited or knowingly received any advance of funds from
a
party other than the owner of the Mortgaged Property subject to the Mortgage,
directly or indirectly, for the payment of any amount required by the Mortgage
Loan; no payment with respect to each Mortgage Loan has been delinquent during
the preceding twelve-month period;
(d) All
taxes, governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing have been paid, or escrow funds have been established in an amount
sufficient to pay for every such escrowed item which remains unpaid and which
has been assessed but is not yet due and payable;
(e) The
terms
of the Mortgage Note and the Mortgage have not been impaired, waived, altered
or
modified in any respect, except by written instruments, which have been recorded
to the extent any such recordation is required by law. No instrument of waiver,
alteration or modification has been executed, and no Mortgagor has been
released, in whole or in part, from the terms thereof except in connection
with
an assumption agreement and which assumption agreement is part of the Mortgage
File and the terms of which are reflected in the related Mortgage Loan Schedule;
the substance of any such waiver, alteration or modification has been approved
by the issuer of any related Primary Mortgage Insurance Policy and title
insurance policy, to the extent required by the related policies;
178
(f) The
Mortgage Note and the Mortgage are not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense
of
usury, nor will the operation of any of the terms of the Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render the Mortgage Note
or
Mortgage unenforceable, in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto; and the Mortgagor was not a debtor in any state
or federal bankruptcy or insolvency proceeding at the time the Mortgage Loan
was
originated;
(g) All
buildings or other customarily insured improvements upon the Mortgaged Property
are insured by an insurer acceptable under the Xxxxxx Xxx Guides, against loss
by fire, hazards of extended coverage and such other hazards as are provided
for
in the Xxxxxx Mae Guides or by the Xxxxxxx Mac Guides, in an amount representing
coverage not less than the lesser of (i) the maximum insurable value of the
improvements securing such Mortgage Loans, and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan, and (b) an amount such
that
the proceeds thereof shall be sufficient to prevent the Mortgagor and/or the
mortgagee from becoming a co-insurer. All such standard hazard policies are
in
full force and effect and on the date of origination contained a standard
mortgagee clause naming the Company and its successors in interest and assigns
as loss payee and such clause is still in effect and all premiums due thereon
have been paid. If required by the Flood Disaster Protection Act of 1973, as
amended, the Mortgage Loan is covered by a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
which policy conforms to Xxxxxx Mae and Xxxxxxx Mac requirements, in an amount
not less than the amount required by the Flood Disaster Protection Act of 1973,
as amended. Such policy was issued by an insurer acceptable under Xxxxxx Mae
or
Xxxxxxx Mac guidelines. The Mortgage obligates the Mortgagor thereunder to
maintain all such insurance at the Mortgagor’s cost and expense, and upon the
Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain
such insurance at the Mortgagor’s cost and expense and to seek reimbursement
therefor from the Mortgagor;
(h) Any
and
all requirements of any federal, state or local law including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer
credit protection, equal credit opportunity, fair housing, or disclosure laws
applicable to the Mortgage Loan have been complied with in all material
respects;
(i) The
Mortgage has not been satisfied, canceled or subordinated, in whole or in part,
or rescinded, and the Mortgaged Property has not been released from the lien
of
the Mortgage, in whole or in part nor has any instrument been executed that
would effect any such release, cancellation, subordination or rescission. The
Company has not waived the performance by the Mortgagor of any action, if the
Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
in default, nor has the Company waived any default resulting from any action
or
inaction by the Mortgagor;
(j) The
related Mortgage is a valid, subsisting, enforceable and perfected first lien
on
the Mortgaged Property including all buildings on the Mortgaged Property and
all
installations and mechanical, electrical, plumbing, heating and air conditioning
systems affixed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing securing the
Mortgage Note’s original principal balance. The Mortgage and the Mortgage Note
do not contain any evidence of any security interest or other interest or right
thereto. Such lien is free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only
to
(1) the lien of non-delinquent current real property taxes and assessments
not
yet due and payable, (2) covenants, conditions and restrictions, rights of
way,
easements and other matters of the public record as of the date of recording
which are acceptable to mortgage lending institutions generally and either
(A)
which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and
(3) other matters to which like properties are commonly subject which do not
materially interfere with the benefits of the security intended to be provided
by the Mortgage or the use, enjoyment, value or marketability of the related
Mortgaged Property. Any security agreement, chattel mortgage or equivalent
document related to and delivered in connection with the Mortgage Loan
establishes and creates (1) a valid, subsisting, enforceable and perfected
first
lien and first priority security interest and on the property described therein,
and the Company has the full right to sell and assign the same to the
Purchaser;
179
(k) The
Mortgage Note and the related Mortgage are original and genuine and each is
the
legal, valid and binding obligation of the maker thereof, enforceable in all
respects in accordance with its terms subject to bankruptcy, insolvency,
moratorium, reorganization and other laws of general application affecting
the
rights of creditors and by general equitable principles and the Company has
taken all action necessary to transfer such rights of enforceability to the
Purchaser. All parties to the Mortgage Note and the Mortgage had the legal
capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage
Note and the Mortgage. The Mortgage Note and the Mortgage have been duly and
properly executed by such parties. No fraud, error, omission, misrepresentation,
negligence or similar occurrence with respect to a Mortgage Loan has taken
place
on the part of the Company or the Mortgagor, or, on the part of any other party
involved in the origination of the Mortgage Loan. The proceeds of the Mortgage
Loan have been fully disbursed and there is no requirement for future advances
thereunder, and any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor
have
been complied with. All costs, fees and expenses incurred in making or closing
the Mortgage Loan and the recording of the Mortgage were paid or are in the
process of being paid, and the Mortgagor is not entitled to any refund of any
amounts paid or due under the Mortgage Note or Mortgage;
(l) The
Company is the sole owner of record and holder of the Mortgage Loan and the
indebtedness evidenced by the Mortgage Note, and upon recordation the Purchaser
or its designee will be the owner of record of the Mortgage and the indebtedness
evidenced by the Mortgage Note, and upon the sale of the Mortgage Loan to the
Purchaser, the Company will retain the Servicing File in trust for the Purchaser
only for the purpose of interim servicing and supervising the interim servicing
of the Mortgage Loan. Immediately prior to the transfer and assignment to the
Purchaser on the related Closing Date, the Mortgage Loan, including the Mortgage
Note and the Mortgage, were not subject to an assignment or pledge, and the
Company had good and marketable title to and was the sole owner thereof and
had
full right to transfer and sell the Mortgage Loan to the Purchaser free and
clear of any encumbrance, equity, lien, pledge, charge, claim or security
interest and has the full right and authority subject to no interest or
participation of, or agreement with, any other party, to sell and assign the
Mortgage Loan pursuant to the Provident-RWT Agreement and following the sale
of
the Mortgage Loan, the Purchaser will own such Mortgage Loan free and clear
of
any encumbrance, equity, participation interest, lien, pledge, charge, claim
or
security interest. The Company intends to relinquish all rights to possess,
control and monitor the Mortgage Loan, except for the purposes of servicing
the
Mortgage Loan as set forth in the Provident-RWT Agreement. Either the Mortgagor
is a natural person or the Mortgagor is an inter-vivos trust acceptable to
Xxxxxx Mae;
(m)
Each
Mortgage Loan is covered by an ALTA lender’s title insurance policy or other
generally acceptable form of policy or insurance acceptable to Xxxxxx Xxx or
Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac
and qualified to do business in the jurisdiction where the Mortgaged Property
is
located, insuring (subject to the exceptions contained in (j)(1), (2) and (3)
above) the Company, its successors and assigns, as to the first priority lien
of
the Mortgage in the original principal amount of the Mortgage Loan.
Additionally, such policy affirmatively insures ingress and egress to and from
the Mortgaged Property. Where required by applicable state law or regulation,
the Mortgagor has been given the opportunity to choose the carrier of the
required mortgage title insurance. The Company, its successors and assigns,
are
the sole insured of such lender’s title insurance policy, such title insurance
policy has been duly and validly endorsed to the Purchaser or the assignment
to
the Purchaser of the Company’s interest therein does not require the consent of
or notification to the insurer and such lender’s title insurance policy is in
full force and effect and will be in full force and effect upon the consummation
of the transactions contemplated by the Provident-RWT Agreement and the related
Purchase Price and Terms Letter. No claims have been made under such lender’s
title insurance policy, and no prior holder of the related Mortgage, including
the Company, has done, by act or omission, anything which would impair the
coverage of such lender’s title insurance policy;
180
(n) There
is
no default, breach, violation or event of acceleration existing under the
Mortgage or the related Mortgage Note and no event which, with the passage
of
time or with notice and the expiration of any grace or cure period, would
constitute a default, breach, violation or event permitting acceleration; and
neither the Company nor any prior mortgagee has waived any default, breach,
violation or event permitting acceleration;
(o) As
of the
related Closing Date, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights outstanding that
under law could give rise to such liens) affecting the related Mortgaged
Property which are or may be liens prior to or equal to the lien of the related
Mortgage;
(p) All
improvements subject to the Mortgage which were considered in determining the
Appraised Value of the Mortgaged Property lie wholly within the boundaries
and
building restriction lines of the Mortgaged Property (and wholly within the
project with respect to a condominium unit) and no improvements on adjoining
properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to in clause (m) above and all
improvements on the property comply with all applicable zoning and subdivision
laws and ordinances;
(q) The
Mortgage Loan was originated by or for the Company. The Mortgage Loan complies
with all the terms, conditions and requirements of the Company’s Underwriting
Standards in effect at the time of origination of such Mortgage Loan. The
Mortgage Notes and Mortgages (exclusive of any riders) are on forms generally
acceptable to Xxxxxx Xxx or Xxxxxxx Mac. The Company is currently selling loans
to Xxxxxx Mae and/or Xxxxxxx Mac which are the same document forms as the
Mortgage Notes and Mortgages (inclusive of any riders). The Mortgage Loan bears
interest at the Mortgage Interest Rate set forth in the related Mortgage Loan
Schedule, and Monthly Payments under the Mortgage Note are due and payable
on
the first day of each month. The Mortgage contains the usual and enforceable
provisions of the originator at the time of origination for the acceleration
of
the payment of the unpaid principal amount of the Mortgage Loan if the related
Mortgaged Property is sold without the prior consent of the mortgagee
thereunder;
(r) As
of the
related Closing Date, the Mortgaged Property is not subject to any material
damage by waste, fire, earthquake, windstorm, flood or other casualty. At
origination of the Mortgage Loan there was, and there currently is, no
proceeding pending for the total or partial condemnation of the Mortgaged
Property. There have not been any condemnation proceedings with respect to
the
Mortgaged Property and there are no such proceedings scheduled to commence
at a
future date;
(s) The
Mortgage and related Mortgage Note contain customary and enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including (i) in the case of a Mortgage designated as a deed
of trust, by trustee’s sale, and (ii) otherwise by judicial foreclosure.
Following the date of origination of the Mortgage Loan, the Mortgaged Property
has not been subject to any bankruptcy proceeding or foreclosure proceeding
and
the Mortgagor has not filed for protection under applicable bankruptcy laws.
There is no homestead or other exemption or right available to the Mortgagor
or
any other person which would interfere with the right to sell the Mortgaged
Property at a trustee’s sale or the right to foreclose the
Mortgage;
181
(t) The
Mortgage Note and Mortgage are on forms acceptable to Xxxxxx Mae or Xxxxxxx
Mac;
(u) If
the
Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified
if required under applicable law to act as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses
are or will become payable by the Purchaser to the trustee under the deed of
trust, except in connection with a trustee’s sale or attempted sale after
default by the Mortgagor;
(v) The
Mortgage File contains an appraisal of the related Mortgaged Property signed
prior to the final approval of the mortgage loan application by a Qualified
Appraiser, who had no interest, direct or indirect, in the Mortgaged Property
or
in any loan made on the security thereof, and whose compensation is not affected
by the approval or disapproval of the Mortgage Loan, and the appraisal and
appraiser both satisfy the requirements of Xxxxxx Mae or Xxxxxxx Mac and Title
XI of FIRREA and the regulations promulgated thereunder, all as in effect on
the
date the Mortgage Loan was originated. The appraisal is in a form acceptable
to
Xxxxxx Mae or Xxxxxxx Mac;
(w) All
parties which have had any interest in the Mortgage, whether as mortgagee,
assignee, pledgee or otherwise, are (or, during the period in which they held
and disposed of such interest, were) (A) in compliance with any and all
applicable licensing requirements of the laws of the state wherein the Mortgaged
Property is located, and (B) (1) organized under the laws of such state, or
(2)
qualified to do business in such state, or (3) federal savings and loan
associations or national banks or a Federal Home Loan Bank or savings bank
having principal offices in such state, or (4) not doing business in such
state;
(x)
As of
the related Closing Date, the related Mortgage Note is not and has not been
secured by any collateral except the lien of the corresponding Mortgage and
the
security interest of any applicable security agreement or chattel mortgage
referred to in (j) above and such collateral does not serve as security for
any
other obligation;
(y) The
Mortgagor has received all disclosure materials required by applicable law
with
respect to the making of such mortgage loans;
(z) The
Mortgage Loan does not contain “graduated payment” features and does not have a
shared appreciation or other contingent interest feature; no Mortgage Loan
contains any buydown provisions;
(aa) As
of the
related Closing Date, the Mortgagor is not in bankruptcy and the Mortgagor
is
not insolvent and the Company has no knowledge of any circumstances or condition
with respect to the Mortgage, the Mortgaged Property, the Mortgagor or the
Mortgagor’s credit standing that could reasonably be expected to cause investors
to regard the Mortgage Loan as an unacceptable investment, cause the Mortgage
Loan to become delinquent, or materially adversely affect the value or
marketability of the Mortgage Loan;
(bb) The
Mortgage Loans have an original term to maturity of not more than 40 years
with
interest payable in arrears on the first day of each month. Each Mortgage Note
requires a monthly payment, which is sufficient to fully amortize the unpaid
principal balance over the remaining term and to pay interest at the related
Mortgage Interest Rate. Notwithstanding the immediately preceding sentence
with
respect to Mortgage Loans with an initial “interest only” payment period, the
monthly payments due under the related Mortgage Note satisfy only the monthly
interest on the unpaid principal balance of the applicable Mortgage Loan. After
the initial “interest only” period, each Mortgage Note requires a monthly
payment, which is sufficient to fully amortize the unpaid principal balance
over
the remaining term and to pay interest at the related Mortgage Interest Rate.
In
any case, no Mortgage Loan contains terms or provisions which would result
in
negative amortization;
182
(cc) If
a
Mortgage Loan has an LTV greater than 80%, the Mortgage Loan will have mortgage
insurance in accordance with the terms of the Xxxxxx Mae Guides and will be
insured as to payment defaults by a Primary Mortgage Insurance Policy issued
by
a Qualified Insurer. All provisions of such Primary Mortgage Insurance Policy
have been and are being complied with, such policy is in full force and effect,
and all premiums due thereunder have been paid. No action, inaction, or event
has occurred and no state of facts exists that has, or will result in the
exclusion from, denial of, or defense to coverage. Any Mortgage Loan subject
to
a Primary Mortgage Insurance Policy obligates the Mortgagor thereunder to
maintain the Primary Mortgage Insurance Policy and to pay all premiums and
charges in connection therewith. The mortgage interest rate for the Mortgage
Loan as set forth on the related Mortgage Loan Schedule is net of any such
insurance premium. No Mortgage Loan is subject to a lender-paid mortgage
insurance policy;
(dd) As
to any
Mortgage Loan which is not a MERS Mortgage Loan, the Assignment of Mortgage
is
in recordable form and is acceptable for recording under the laws of the
jurisdiction in which the Mortgaged Property is located;
(ee) The
Mortgaged Property is located in the state identified in the related Mortgage
Loan Schedule and consists of a single parcel of real property with a detached
single family residence erected thereon, or a townhouse, or a two-to four-family
dwelling, or an individual condominium unit in a condominium project, or an
individual unit in a planned unit development or a de minimis planned unit
development, provided, however, that no residence or dwelling is a single parcel
of real property with a cooperative housing corporation erected thereon, or
a
mobile home. As of the date of origination, no portion of the Mortgaged Property
was used for commercial purposes, and since the date or origination no portion
of the Mortgaged Property has been used for commercial purposes;
(ff) Payments
of principal and/or interest on the Mortgage Loan commenced no more than sixty
(60) days after the funds were disbursed in connection with the Mortgage Loan.
The Mortgage Note is payable on the first day of each month. After the initial
“interest only” payment period, if any, the Mortgage Note in payable in equal
monthly installments of principal and interest, with interest calculated and
payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated
maturity date, over an original term of not more than thirty years from
commencement of amortization;
(gg) The
Mortgage Loans may be subject to a Prepayment Penalty as identified on the
Mortgage Loan Schedule, except that no Mortgage Loan contains any
Prepayment Penalty that extends beyond five years after the date of
origination;
(hh) As
of the
related Closing Date, the Mortgaged Property is lawfully occupied under
applicable law, and all inspections, licenses and certificates required to
be
made or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates, have
been made or obtained from the appropriate authorities;
183
(ii) If
the
Mortgaged Property is a condominium unit or a planned unit development (other
than a de minimis planned unit development), or stock in a cooperative housing
corporation, such condominium, cooperative or planned unit development project
meets the eligibility requirements of Xxxxxx Xxx and Xxxxxxx Mac;
(jj)
There is
no pending action or proceeding directly involving the Mortgaged Property in
which compliance with any environmental law, rule or regulation is an issue;
there is no violation of any environmental law, rule or regulation with respect
to the Mortgaged Property; and nothing further remains to be done to satisfy
in
full all requirements of each such law, rule or regulation constituting a
prerequisite to use and enjoyment of said property;
(kk) The
Mortgagor has not notified the Company requesting relief under the
Servicemembers’ Civil Relief Act, formerly known as the Soldiers’ and Sailors’
Civil Relief Act of 1940, and the Company has no knowledge of any relief
requested or allowed to the Mortgagor under the Servicemembers’ Civil Relief
Act;
(ll) As
of the
related Closing Date, no Mortgage Loan was in construction or rehabilitation
status or has facilitated the trade-in or exchange of a Mortgaged
Property;
(mm) No
action
has been taken or failed to be taken by the Company on or prior to the Closing
Date which has resulted or will result in an exclusion from, denial of, or
defense to coverage under any insurance policy related to a Mortgage Loan
(including, without limitation, any exclusions, denials or defenses which would
limit or reduce the availability of the timely payment of the full amount of
the
loss otherwise due thereunder to the insured) whether arising out of actions,
representations, errors, omissions, negligence, or fraud of the Company, or
for
any other reason under such coverage;
(nn) The
Mortgage Loan was originated by a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit
union, insurance company or similar institution which is supervised and examined
by a federal or state authority;
(oo) No
Mortgaged Property is subject to a ground lease;
(pp) With
respect to any broker fees collected and paid on any of the Mortgage Loans,
all
broker fees have been properly assessed to the Mortgagor and no claims will
arise as to broker fees that are double charged and for which the Mortgagor
would be entitled to reimbursement;
184
(qq) With
respect to any Mortgage Loan as to which an affidavit has been delivered to
the
Purchaser certifying that the original Mortgage Note has been lost or destroyed
and not been replaced, if such Mortgage Loan is subsequently in default, the
enforcement of such Mortgage Loan will not be materially adversely affected
by
the absence of the original Mortgage Note;
(rr) Each
Mortgage Loan constitutes a qualified mortgage under Section 860G(a)(3)(A)
of
the Code and Treasury Regulations Section 1.860G-2(a)(1);
(ss)
Except
as provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment
of
Mortgage and the other Mortgage Loan Documents set forth in Exhibit A-1 and
required to be delivered on the related Closing Date have been delivered to
the
Purchaser or its designee all in compliance with the specific requirements
of
the Provident-RWT Agreement. With respect to each Mortgage Loan, the Company
is
in possession of a complete Mortgage File and Servicing File except for such
documents as have been delivered to the Purchaser or its
designee;
(tt)
All
information supplied by, on behalf of, or concerning the Mortgagor is true,
accurate and complete and does not contain any statement that at the time
provided and as of the Closing Date is or will be inaccurate or misleading
in
any material respect;
(uu)
There
does not exist on the related Mortgage Property any hazardous substances,
hazardous wastes or solid wastes, as such terms are defined in the Comprehensive
Environmental Response Compensation and Liability Act, the Resource Conservation
and Recovery Act of 1976, or other federal, state or local environmental
legislation;
(vv) All
disclosure materials required by applicable law with respect to the making
of
fixed rate and adjustable rate mortgage loans have been received by the
borrower;
(ww) No
Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more
than
95%;
(xx) None
of
the Mortgage Loans are subject to the Home Ownership and Equity Protection
Act
of 1994 or any comparable state law;
(yy) None
of
the proceeds of the Mortgage Loan were used to finance single-premium credit
insurance policies;
(zz) Any
principal advances made to the Mortgagor prior to the Closing Date have been
consolidated with the outstanding principal amount secured by the Mortgage,
and
the secured principal amount, as consolidated, bears a single interest rate
and
single repayment term. The lien of the Mortgage securing the consolidated
principal amount is expressly insured as having first lien priority by a title
insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Xxxxxx Xxx and
Xxxxxxx Mac. The consolidated principal amount does not exceed the original
principal amount of the Mortgage Loan;
185
(aaa) Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of
twelve 30-day months;
(bbb) No
Mortgage Loan is a Balloon Mortgage Loan;
(ccc) With
respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and such
MIN
is accurately provided on the Mortgage Loan Schedule. The related assignment
of
Mortgage to MERS has been duly and properly recorded;
(ddd) With
respect to each MERS Mortgage Loan, the Company has not received any notice
of
liens or legal actions with respect to such Mortgage Loan and no such notices
have been electronically posted by MERS;
(eee) None
of
the Mortgaged
Properties are manufactured housing;
(fff) With
respect to each Mortgage Loan, the Company has fully and accurately furnished
complete information on the related borrower credit files to Equifax, Experian
and Trans Union Credit Information Company, in accordance with the Fair Credit
Reporting Act and its implementing regulations;
(ggg) The
Company has complied with all applicable anti-money laundering laws and
regulations, including without limitation the USA Patriot Act of 2001
(collectively, the “Anti-Money Laundering Laws”); and the Company has
established an anti-money laundering compliance program as required by the
Anti-Money Laundering Laws;
(hhh) Each
Mortgage Loan at the time it was made complied in all material respects with
applicable local, state, and federal laws, including, but not limited to, all
applicable predatory and abusive lending laws;
(iii) No
Mortgage Loan is a High Cost Loan or Covered Loan, as applicable, and no
Mortgage Loan is a High Cost Loan or Covered Loan, as applicable as such terms
are defined in the current Standard & Poor’s LEVELS ® Glossary Revised,
Appendix E. No Mortgage Loan is in violation of any applicable federal, state,
or local predatory or abusive lending law. Any breach of this representation
shall be deemed to materially and adversely affect the value of the Mortgage
Loan and shall require a repurchase of the affected Mortgage
Loan;
(jjj) No
Mortgage Loan was originated on or after October 1, 2002 and prior to March
7,
2003, which is secured by property located in the State of Georgia. No Mortgage
Loan was originated on or after March 7, 2003 which is a “high cost home loan”
as defined under the Georgia Fair Lending Act. Any breach of this representation
shall be deemed to materially and adversely affect the value of the Mortgage
Loan and shall require a repurchase of the affected Mortgage Loan;
186
(kkk) No
Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home
Ownership Act, which became effective November 27, 2003; and
(lll) There
were no
adverse selection procedures used in selecting the Mortgage Loan from among
the
residential mortgage loans which were available for inclusion in the Mortgage
Loans.
187
XXIV. |
With
respect to Mortgage Loans purchased under the Seller’s Warranties and
Servicing Agreement, dated as of May 1, 2007 by and between
Redwood Trust,
Inc. and Xxxxx Fargo Bank, N.A. (the "Redwood-Xxxxx Fargo
Agreement")
|
With
respect to each Mortgage Loan, RWT Holdings hereby makes the following
representations and warranties. Such representations and warranties speak as
of
the Closing Date with respect to the Mortgage Loans (as such capitalized terms
are defined in the Pooling and Servicing Agreement), unless otherwise indicated.
Capitalized terms are as defined in this Schedule A or in the Redwood-Xxxxx
Fargo Agreement.
(a) Mortgage
Loans as Described.
The
information set forth in the Mortgage Loan Schedules attached hereto as
Exhibit
A
and Exhibit A-1 and the information contained on the respective Data
Files
delivered to the Purchaser are true and correct; provided that the Company
makes
no
representation or warranty as to the accuracy of Unverified Information;
and
the
information provided to the rating agencies, including the loan level detail,
is
true and correct according to the rating agency requirements;
(b) Payments
Current.
All
payments required to be made up to the Cut-off Date for the Mortgage Loan
under
the
terms of the Mortgage Note have been made and credited. No payment under
any
Mortgage Loan has been thirty (30) days delinquent more than one (1)
time
within twelve (12) months prior to the Closing Date;
(c) No
Outstanding Charges.
There
are
no defaults in complying with the terms of the Mortgages, and all taxes,
governmental
assessments, insurance premiums, leasehold payments, water, sewer
and
municipal charges, which previously became due and owing have been paid,
or
an escrow of funds has been established in an amount sufficient to pay for
every
such item which remains unpaid and which has been assessed but is not yet
due
and
payable. The Company has not advanced funds, or induced, or solicited
directly
or indirectly, the payment of any amount required under the Mortgage
Loan,
except for interest accruing from the date of the Mortgage Note or date of
disbursement
of the Mortgage Loan proceeds, whichever is later, to the day which precedes
by one month the Due Date of the first installment of principal and interest;
(d) Original
Terms Unmodified.
The
terms
of the Mortgage Note and Mortgage have not been impaired, waived, altered
or modified in any respect, except by a written instrument which has been
recorded
or registered with the MERS System, if necessary, to protect the interests
of the Purchaser and is retained by the Company in the Retained Mortgage
File; and the related Mortgage Note which has been delivered to the Custodian.
The substance of any such waiver, alteration or modification has been
approved
by the issuer of any related PMI Policy and the title insurer, to the
extent
required by the policy, and its terms are reflected on the related Mortgage
Loan
Schedule. No Mortgagor has been released, in whole or in part, except in
connection
with an assumption agreement approved by the issuer of any related PMI
Policy and the title insurer, to the extent required by the policy, and which
assumption
agreement is part of the Custodial Mortgage File delivered to the Custodian
and the terms of which are reflected in the related Mortgage Loan Schedule;
(e) No
Defenses.
The
Mortgage Loan is not subject to any right of rescission, set-off, counterclaim
or
defense, including without limitation the defense of usury, nor will the
operation
of any of the terms of the Mortgage Note or the Mortgage, or the exercise
of any right thereunder, render either the Mortgage Note or the Mortgage
unenforceable,
in whole or in part, or subject to any right of rescission, set-off,
counterclaim
or defense, including without limitation the defense of usury, and no
such
right of rescission, set-off, counterclaim or defense has been asserted with
respect
thereto;
(f) No
Satisfaction of Mortgage.
The
Mortgage has not been satisfied, canceled, subordinated or rescinded, in
whole
or
in part, and the Mortgaged Property has not been released from the lien
of
the
Mortgage, in whole or in part, nor has any instrument been executed that
would
effect any such satisfaction, release, cancellation, subordination or
rescission;
(g) Validity
of Mortgage Documents.
The
Mortgage Note and the Mortgage and related documents are genuine, and
each
is
the legal, valid and binding obligation of the maker thereof enforceable in
accordance
with its terms. All parties to the Mortgage Note and the Mortgage had
legal
capacity to enter into the Mortgage Loan and to execute and deliver the
Mortgage
Note and the Mortgage, and the Mortgage Note and the Mortgage have been
duly
and properly executed by such parties. The Company has reviewed all documents
constituting the Retained Mortgage File and Custodial Mortgage File and
has
made such inquiries as it deems necessary to make and confirm the accuracy
of the representations set forth herein;
With
respect to each Cooperative Loan, the Mortgage Note, the Mortgage, the
Pledge
Agreement, and related documents are genuine, and each is the legal, valid
and
binding obligation of the maker thereof enforceable in accordance with its
terms.
All parties to the Mortgage Note, the Mortgage, the Pledge Agreement,
the
Proprietary Lease, the Stock Power, Recognition Agreement and the Assignment
of Proprietary Lease had legal capacity to enter into the Mortgage Loan
and
to execute and deliver such documents, and such documents have been duly
and
properly executed by such parties;
(h) No
Fraud.
No
error,
omission, misrepresentation, negligence, fraud or similar occurrence
with
respect to a Mortgage Loan has taken place on the part of the Company, or
the
Mortgagor (except with respect to the accuracy of Unverified Information),
or
to
the
best of the Company’s knowledge, any appraiser, any builder, or any developer,
or any other party involved in the origination of the Mortgage Loan or
in
the
application of any insurance in relation to such Mortgage Loan;
2
(i) Compliance
with Applicable Laws.
Any
and
all requirements of any federal, state or local law including, without
limitation,
usury, truth-in-lending, real estate settlement procedures, consumer
credit
protection and privacy, equal credit opportunity, disclosure or predatory
and
abusive lending laws applicable to the Mortgage Loan have been complied
with.
All
inspections, licenses and certificates required to be made or issued with
respect
to all occupied portions of the Mortgaged Property and, with respect to the
use
and
occupancy of the same, including, but not limited to, certificates of
occupancy
and fire underwriting certificates, have been made or obtained from the
appropriate authorities;
(j) Location
and Type of Mortgaged Property.
The
Mortgaged Property is located in the state identified in the related Mortgage
Loan
Schedule and consists of a contiguous parcel of real property with a
detached
single family residence erected thereon, or a two- to four-family dwelling,
or an individual condominium unit in a condominium project, or a Cooperative
Apartment, or an individual unit in a planned unit development or a townhouse,
provided, however, that any condominium project or planned unit development
shall conform to the applicable Xxxxxx Mae or Xxxxxxx Mac requirements,
the Company Underwriting Guidelines (other than the exception identified
for Exception Mortgage Loans) or the Third-Party Underwriting Guidelines,
as applicable, regarding such dwellings, and no residence or dwelling
is
a
mobile home or manufactured dwelling. As of the respective appraisal date
for
each
Mortgaged Property, any Mortgaged Property being used for commercial
purposes
conforms to the Company Underwriting Guidelines (other than the exception
identified for Exception Mortgage Loans) or the Third-Party Underwriting
Guidelines, as applicable and, to the best of the Company’s knowledge,
since the date of such appraisal, no portion of the Mortgaged Property
was
being
used for commercial purposes outside of the Company Underwriting Guidelines
(other than the exception identified for Exception Mortgage Loans) or
the
Third-Party Underwriting Guidelines, as applicable;
(k) Valid
First Lien.
The
Mortgage is a valid, subsisting and enforceable first lien on the Mortgaged
Property,
including all buildings on the Mortgaged Property and all installations
and
mechanical, electrical, plumbing, heating and air conditioning systems
located
in or annexed to such buildings, and all additions, alterations and replacements
made at any time with respect to the foregoing. The lien of the Mortgage
is subject only to:
(1) |
the
lien of current real property taxes and assessments not yet due and
payable;
|
(2) |
covenants,
conditions and restrictions, rights of way, easements and other
matters
of the public record as of the date of recording acceptable to
mortgage
lending institutions generally and specifically referred to in the
lender's
title insurance policy delivered to the originator of the Mortgage
Loan
and (i) referred to or otherwise considered in the appraisal made
for
the
originator of the Mortgage Loan and (ii) which do not adversely affect
the
Appraised Value of the Mortgaged Property set forth in such appraisal;
and
|
3
(3) |
other
matters to which like properties are commonly subject which do not
materially
interfere with the benefits of the security intended to be provided
by the mortgage or the use, enjoyment, value or marketability of
the
related Mortgaged Property.
|
Any
security agreement, chattel mortgage or equivalent document related to and
delivered
in connection with the Mortgage Loan establishes and creates a valid,
subsisting
and enforceable first lien and first priority security interest on the
property
described therein and the Company has full right to sell and assign
the
same
to
the Purchaser;
With
respect to each Cooperative Loan, each Pledge Agreement creates a valid,
enforceable
and subsisting first security interest in the Cooperative Shares and
Proprietary
Lease, subject only to (i) the lien of the related Cooperative for unpaid
assessments
representing the Mortgagor’s pro rata share of the Cooperative’s payments
for its blanket mortgage, current and future real property taxes, insurance
premiums, maintenance fees and other assessments to which like collateral
is commonly subject and (ii) other matters to which like collateral is
commonly
subject which do not materially interfere with the benefits of the security
intended to be provided by the Pledge Agreement; provided, however, that
the
appurtenant Proprietary Lease may be subordinated or otherwise subject
to
the
lien of any mortgage on the Project;
(l)
Full
Disbursement of Proceeds.
The
proceeds of the Mortgage Loan have been fully disbursed, except for escrows
established
or created due to seasonal weather conditions, and there is no requirement
for future advances thereunder. All costs, fees and expenses incurred
in
making
or closing the Mortgage Loan and the recording of the Mortgage were paid,
and
the Mortgagor is not entitled to any refund of any amounts paid or due
under
the
Mortgage Note or Mortgage;
(m) Consolidation
of Future Advances.
Any
future advances made prior to the Cut-off Date, have been consolidated with
the
outstanding principal amount secured by the Mortgage, and the secured
principal
amount, as consolidated, bears a single interest rate and single repayment
term reflected on the related Mortgage Loan Schedule. The lien of the
Mortgage
securing the consolidated principal amount is expressly insured as having
first lien priority by a title insurance policy, an endorsement to the policy
insuring
the mortgagee’s consolidated interest or by other title evidence acceptable
to Xxxxxx Mae or Xxxxxxx Mac; the consolidated principal amount does
not
exceed the original principal amount of the Mortgage Loan; the Company
shall
not
make future advances after the Cut-off Date;
(n) Ownership.
The
Company is the sole owner of record and holder of the Mortgage Loan and
the
related Mortgage Note and the Mortgage are not assigned or pledged, and the
Company
has good and marketable title thereto and has full right and authority to
transfer
and sell the Mortgage Loan to the Purchaser. The Company is transferring
the Mortgage Loan free and clear of any and all encumbrances, liens,
pledges,
equities, participation interests, claims, charges or security interests of
any
nature encumbering such Mortgage Loan;
4
(o) Origination/Doing
Business.
The
Mortgage Loan was originated by a savings and loan association, a savings
bank,
a
commercial bank, a credit union, an insurance company, or similar institution
that is supervised and examined by a federal or state authority or by a
mortgagee
approved by the Secretary of Housing and Urban Development pursuant
to Sections 203 and 211 of the National Housing Act. All parties which
have
had
any interest in the Mortgage Loan, whether as mortgagee, assignee, pledgee
or otherwise, are (or, during the period in which they held and disposed
of
such
interest, were) (1) in compliance with any and all applicable licensing
requirements
of the laws of the state wherein the Mortgaged Property is located, and
(2)
organized under the laws of such state, or (3) qualified to do business in
such
state, or (4) federal savings and loan associations or national banks having
principal
offices in such state, or (5) not doing business in such state;
(p) LTV,
PMI Policy.
No
Mortgage Loan has an LTV greater than 95%. Except as set forth on the
related
Data File, each Mortgage Loan with an LTV greater than 80% at the time
of
origination, a portion of the unpaid principal balance of the Mortgage Loan
is
and
will
be insured as to payment defaults by a PMI Policy. If the Mortgage Loan
is
insured by a PMI Policy which is not an LPMI Policy, the coverage will remain
in
place
until (i) the LTV decreases to 78% or (ii) the PMI Policy is otherwise
terminated
pursuant to the Homeowners Protection Act of 1998, 12 USC §4901, et
seq.
All provisions of such PMI Policy or LPMI Policy have been and are being
complied with, such policy is in full force and effect, and all premiums due
thereunder
have been paid. The Qualified Insurer has a claims paying ability acceptable
to Xxxxxx Mae or Xxxxxxx Mac. Any Mortgage Loan subject to a PMI Policy
or
LPMI Policy obligates the Mortgagor or the Company to maintain the PMI
Policy or LPMI Policy, as applicable, and to pay all premiums and charges
in
connection therewith. The Mortgage Interest Rate for the Mortgage Loan as
set
forth
on the related Mortgage Loan Schedule is net of any such insurance premium;
(q) Title
Insurance.
The
Mortgage Loan is covered by an ALTA lender's title insurance policy (or in
the
case
of any Mortgage Loan secured by a Mortgaged Property located in a jurisdiction
where such policies are generally not available, an opinion of counsel
of
the
type customarily rendered in such jurisdiction in lieu of title insurance)
or
other
generally acceptable form of policy of insurance acceptable to Xxxxxx Xxx
or
Xxxxxxx Mac, issued by a title insurer acceptable to Xxxxxx Mae or Xxxxxxx
Mac
and
qualified to do business in the jurisdiction where the Mortgaged Property is
located,
insuring the Company, its successors and assigns, as to the first priority
lien
of
the Mortgage in the original principal amount of the Mortgage Loan, subject
only to the exceptions contained in clauses (1), (2) and (3) of subclause
(k)
of
this Section 3.02, and against any loss by reason of the invalidity or
unenforceability
of the lien resulting from the provisions of the Mortgage providing
for adjustment to the Mortgage Interest Rate and Monthly Payment. The
Company is the sole insured of such lender's title insurance policy, and such
lender's
title insurance policy is in full force and effect and will be in force and
effect
upon the consummation of the transactions contemplated by the Redwood-Xxxxx
Fargo Agreement. No claims have been made under such lender's title insurance
policy, and
no
prior holder of the Mortgage, including the Company, has done, by act or
omission,
anything which would impair the coverage of such lender's title insurance
policy;
5
(r) No
Defaults.
There
is
no default, breach, violation or event of acceleration existing under the
Mortgage
or the Mortgage Note and no event which, with the passage of time or
with
notice and the expiration of any grace or cure period, would constitute a
default,
breach, violation or event of acceleration, and neither the Company nor
its
predecessors have waived any default, breach, violation or event of acceleration;
(s) No
Mechanics' Liens.
There
are
no mechanics' or similar liens or claims which have been filed for work,
labor
or
material (and no rights are outstanding that under the law could give rise
to
such
liens) affecting the related Mortgaged Property which are or may be liens
prior
to,
or equal or coordinate with, the lien of the related Mortgage which are
not
insured against by the title insurance policy referenced in subclause (q) of
Section 3.02 of the Redwood-Xxxxx Fargo Agreement;
(t) Location
of Improvements; No Encroachments.
Except
as
insured against by the title insurance policy referenced in subclause (q)
of
Section 3.02 of the Redwood-Xxxxx Fargo Agreement, all improvements which were
considered in determining the Appraised Value of the Mortgaged Property lay
wholly within the boundaries and building restriction lines of the Mortgaged
Property and no improvements on adjoining properties encroach upon the Mortgaged
Property. No improvement located on or being part of the Mortgaged Property
is
in violation of any applicable zoning law or regulation;
(u) Payment
Terms.
Except
with respect to the Interest Only Mortgage Loans, principal payments
commenced
no more than sixty (60) days after the funds were disbursed to the Mortgagor
in connection with the Mortgage Loan. Except with respect to the Interest
Only Mortgage Loans, each Mortgage Loan is payable in equal monthly installments
of principal and interest, with interest calculated and payable in arrears,
sufficient to amortize the Mortgage Loan fully by the stated maturity date
set
forth
in the Mortgage Note over an original term to maturity of not more than
thirty
(30) years. As to each Adjustable Rate Mortgage Loan on each applicable
Adjustment
Date, the Mortgage Interest Rate will be adjusted to equal the sum of
the
Index
plus the applicable Gross Margin, rounded up or down to the nearest multiple
of 0.125% indicated by the Mortgage Note; provided that the Mortgage
Interest
Rate will not increase or decrease by more than the Periodic Interest Rate
Cap
on
any Adjustment Date, and will in no event exceed the Maximum Mortgage
Interest Rate or be lower than the Minimum Mortgage Interest Rate listed
on
the Mortgage Note for such Mortgage Loan. As to each Adjustable Rate
Mortgage
Loan that is not an Interest Only Mortgage Loan, each Mortgage Note requires
a monthly payment which is sufficient, during the period prior to the first
adjustment
to the Mortgage Interest Rate, to fully amortize the outstanding principal
balance as of the first day of such period over the then remaining term of
such
Mortgage Note and to pay interest at the related Mortgage Interest Rate.
With
respect to each Interest Only Mortgage Loan, the interest-only period shall
not
exceed fifteen (15) years (or such other period specified on the related Data
File)
and
following the expiration of such interest-only period, the remaining
Monthly
Payments shall be sufficient to fully amortize the original principal
balance
over the remaining term of the Mortgage Loan and to pay interest at the
related
Mortgage Interest Rate. As to each Adjustable Rate Mortgage Loan, if the
related
Mortgage Interest Rate changes on an Adjustment Date or, with respect to
an
Interest Only Mortgage Loan, on an Adjustment Date following the related
interest-only
period, the then outstanding principal balance will be reamortized over
the
remaining life of such Mortgage Loan. No Adjustable Rate Mortgage Loan
contains terms or provisions which would result in negative
amortization;
6
(v) Customary
Provisions.
The
Mortgage and related Mortgage Note contain customary and enforceable
provisions
such as to render the rights and remedies of the holder thereof adequate for
the
realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (i) in the case of a Mortgage designated as a
deed
of trust, by trustee's sale, and (ii) otherwise by judicial foreclosure. There
is no homestead or other exemption available to a Mortgagor which would
interfere with the right to sell the Mortgaged Property at a trustee's sale
or
the right to foreclose the Mortgage;
(w) Occupancy
of the Mortgaged Property.
As
of the
date of origination, the Mortgaged Property was lawfully occupied under
applicable law;
(x) No
Additional Collateral.
Except
in
the case of a Pledged Asset Mortgage Loan and as indicated on the related
Data File, the Mortgage Note is not and has not been secured by any collateral,
pledged account or other security except the lien of the corresponding
Mortgage
and the security interest of any applicable security agreement or chattel
mortgage
referred to in subclause (k) of Section 3.02 of the Redwood-Xxxxx Fargo
Agreement;
(y) Deeds
of Trust.
In
the
event the Mortgage constitutes a deed of trust, a trustee, duly qualified
under
applicable law to serve as such, has been properly designated and currently
so
serves
and is named in the Mortgage, and no fees or expenses are or will become
payable by the mortgagee to the trustee under the deed of trust, except in
connection
with a trustee's sale after default by the Mortgagor;
(z) Acceptable
Investment.
The
Company has no knowledge of any circumstances or conditions with respect
to
the
Mortgage Loan, the Mortgaged Property, the Mortgagor or the Mortgagor's
credit
standing that can reasonably be expected to cause private institutional
investors
to regard the Mortgage Loan as an unacceptable investment, cause the
Mortgage
Loan to become delinquent, or adversely affect the value or marketability
of the Mortgage Loan;
7
(aa) Transfer
of Mortgage Loans.
If
the
Mortgage Loan is not a MERS Mortgage Loan, the Assignment of Mortgage,
upon the insertion of the name of the assignee and recording information,
is in recordable form and is acceptable for recording under the laws
of
the
jurisdiction in which the Mortgaged Property is located;
(bb) Mortgaged
Property Undamaged.
The
Mortgaged Property is undamaged by waste, fire, earthquake or earth movement,
windstorm, flood, tornado or other casualty so as to affect adversely the value
of the Mortgaged Property as security for the Mortgage Loan or the use for
which
the premises were intended;
(cc) Collection
Practices; Escrow Deposits.
The
origination, servicing and collection practices used with respect to the
Mortgage Loan have been in accordance with Accepted Servicing Practices, and
have been in all material respects legal and proper. With respect to escrow
deposits and Escrow Payments, all such payments are in the possession of the
Company and there exist no deficiencies in connection therewith for which
customary arrangements for repayment thereof have not been made. All Escrow
Payments have been collected in full compliance with state and federal law.
No
escrow deposits or Escrow Payments or other charges or payments due the Company
have been capitalized under the Mortgage Note;
(dd) No
Condemnation.
There
is
no proceeding pending or to the best of the Company’s knowledge threatened
for the total or partial condemnation of the related Mortgaged Property;
(ee) The
Appraisal.
The
Servicing File for each Mortgage Loan includes an appraisal of the related
Mortgaged
Property. As to each Time$aver® Mortgage Loan, the appraisal may be
from
the original of the existing Company-serviced loan, which was refinanced
via
such
Time$aver® Mortgage Loan. The appraisal was conducted by an appraiser
who had no interest, direct or indirect, in the Mortgaged Property or in
any
loan
made on the security thereof; and whose compensation is not affected by
the
approval or disapproval of the Mortgage Loan, and the appraisal and the
appraiser
both satisfy the applicable requirements of Title XI of the Financial
Institution
Reform, Recovery, and Enforcement Act of 1989 and the regulations promulgated
thereunder, all as in effect on the date the Mortgage Loan was originated;
(ff) Insurance.
The
Mortgaged Property securing each Mortgage Loan is insured by an insurer
acceptable
to Xxxxxx Mae or Xxxxxxx Mac against loss by fire and such hazards as
are
covered under a standard extended coverage endorsement and such other hazards
as
are customary in the area where the Mortgaged Property is located pursuant
to
insurance policies conforming to the requirements of Section 4.10, in an amount
which is at least equal to the lesser of (i) 100% of the insurable value, on
a
replacement cost basis, of the improvements on the related Mortgaged Property
and (ii) the greater of (a) the outstanding principal balance of the Mortgage
Loan or (b) an amount such that the proceeds of such insurance shall be
sufficient to prevent the application to the Mortgagor or the loss payee of
any
coinsurance clause under the policy. If the Mortgaged Property is a condominium
unit, it is included under the coverage afforded by a blanket policy for the
project. If the improvements on the Mortgaged Property are in an area identified
in the Federal Register by the Federal Emergency Management Agency as having
special flood hazards, a flood insurance policy meeting the requirements of
the
current
guidelines of the Federal Insurance Administration is in effect with a generally
acceptable insurance carrier, in an amount representing coverage not less than
the least of (A) the outstanding principal balance of the Mortgage Loan, (B)
the
full insurable value and (C) the maximum amount of insurance which was available
under the Flood Disaster Protection Act of 1973, as amended. All individual
insurance policies contain a standard mortgagee clause naming the Company and
its successors and assigns as mortgagee, and all premiums thereon have been
paid. The Mortgage obligates the Mortgagor thereunder to maintain a hazard
insurance policy at the Mortgagor's cost and expense, and on the Mortgagor's
failure to do so, authorizes the holder of the Mortgage to obtain and maintain
such insurance at such Mortgagor's cost and expense, and to seek reimbursement
therefor from the Mortgagor. The hazard insurance policy is the valid and
binding obligation of the insurer, is in full force and effect, and will be
in
full force and effect and inure to the benefit of the Purchaser upon the
consummation of the transactions contemplated by the Redwood-Xxxxx Fargo
Agreement. The Company has not acted or failed to act so as to impair the
coverage of any such insurance policy or the validity, binding effect and
enforceability thereof;
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(gg) Servicemembers
Civil Relief Act.
The
Mortgagor has not notified the Company, and the Company has no knowledge
of any relief requested or allowed to the Mortgagor under the Servicemembers
Civil Relief Act, as amended;
(hh) No
Balloon Payments, Graduated Payments or Contingent Interests.
The
Mortgage Loan is not a graduated payment mortgage loan and the Mortgage
Loan
does
not have a shared appreciation or other contingent interest feature. No
Mortgage
Loan has a balloon payment feature;
(ii) No
Construction Loans.
No
Mortgage Loan was made in connection with (i) the construction or rehabilitation
of a Mortgage Property or (ii) facilitating the trade-in or exchange of a
Mortgaged Property other than a construction-to-permanent loan which has
converted to a permanent Mortgage Loan;
(jj) Underwriting.
(i) |
Each
Company Mortgage Loan was underwritten in accordance with the Company
Underwriting Guidelines;
|
(ii) |
Each
Third-Party Mortgage Loan was underwritten in accordance with the
Third-Party
Underwriting Guidelines;
|
(iii) |
Each
Exception Mortgage Loan was underwritten in accordance with the
Company
Underwriting Guidelines; and
|
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(iv) |
Each
Mortgage Note and Mortgage are on forms acceptable to Xxxxxxx Mac
or Xxxxxx Mae;
|
(kk) No
Bankruptcy.
No
Mortgagor was a debtor in any state or federal bankruptcy or insolvency
proceeding
at the time the Mortgage Loan was originated and as of the Closing Date,
the
Company has not received notice that any Mortgagor is a debtor under
any
state
or federal bankruptcy or insolvency proceeding;
(ll) The
Mortgagor.
The
Mortgagor is one or more natural Persons and/or an Illinois land trust or a
“living
trust” and such “living trust” is in compliance with the Company Underwriting
Guidelines (other than the exception identified for Exception Mortgage Loans)
or
the Third-Party Underwriting Guidelines, as applicable;
(mm) Interest
Calculation.
Interest
on each Mortgage Loan is calculated on the basis of a 360-day year consisting
of twelve 30-day months;
(nn) Environmental
Status.
There
is
no pending action or proceeding directly involving the Mortgaged Property
of which the Company is aware in which compliance with any environmental law,
rule or regulation is an issue; and to the best of the Company’s knowledge,
nothing further remains to be done to satisfy in full all requirements of each
such law, rule or regulation constituting a prerequisite to the use and
enjoyment of the Mortgaged Property;
(oo) No
High Cost Loans.
No
Mortgage Loan is a High Cost Loan or Covered Loan;
(pp) Anti-Money
Laundering Laws.
The
Company has complied with all applicable anti-money laundering laws and
regulations,
including without limitation the USA Patriot ACT of 2001 (collectively, the
“Anti-Money Laundering Laws”); the Company has established an anti-money
laundering compliance program as required by the Anti-Money Laundering Laws,
has
conducted the requisite due diligence in connection with the origination of
each
Mortgage Loan for purposes of the Anti-Money Laundering Laws, including with
respect to the identity of the applicable Mortgagor and the origin of assets
used by the said Mortgagor to purchase the related Mortgaged Property, and
maintains sufficient information to identify the applicable Mortgagor for
purposes of the Anti-Money Laundering Laws;
(qq) Single
Premium Credit Life Insurance.
No
Mortgagor was required to purchase any single premium credit insurance policy
(e.g. life, disability, accident, unemployment or health insurance product)
or
debt cancellation agreement as a condition of obtaining the extension of credit.
No Mortgagor obtained a prepaid single premium credit insurance policy (e.g.
life, disability, accident, unemployment or health insurance product) as
part of the origination of the Mortgage Loan. No proceeds from any Mortgage
Loan
were used to purchase single premium credit insurance policies or debt
cancellation agreements as part of the origination of, or as a condition to
closing, such Mortgage Loan;
10
(rr) Buydown
Mortgage Loans.
With
respect to each Mortgage Loan that is a Buydown Mortgage Loan:
(i) |
On
or before the date of origination of such Mortgage Loan, the Company
and
the Mortgagor, or the Company, the Mortgagor and the seller of the
Mortgaged Property or a third party entered into a Buydown Agreement.
The
Buydown Agreement provides that the seller of the Mortgaged Property
(or
third party) shall deliver to the Company temporary Buydown Funds
in an
amount equal to the aggregate undiscounted amount of payments that,
when
added to the amount the Mortgagor on such Mortgage Loan is obligated
to
pay on each Due Date in accordance with the terms of the Buydown
Agreement, is equal to the full scheduled Monthly Payment due on
such
Mortgage Loan. The temporary Buydown Funds enable the Mortgagor to
qualify
for the Buydown Mortgage Loan. The effective interest rate of a Buydown
Mortgage Loan if less than the interest rate set forth in the related
Mortgage Note will increase within the Buydown
Period as provided in the related Buydown Agreement so that the effective
interest rate will be equal to the interest rate as set forth in
the
related Mortgage Note. The Buydown Mortgage Loan satisfies the
requirements of the Company Underwriting Guidelines (other than the
exception identified for Exception Mortgage Loans) or the Third-Party
Underwriting Guidelines, as
applicable;
|
(ii) |
The
Mortgage and Mortgage Note reflect the permanent payment terms
rather
than the payment terms of the Buydown Agreement. The Buydown Agreement
provides for the payment by the Mortgagor of the full amount of the
Monthly Payment on any Due Date that the Buydown Funds are available.
The
Buydown Funds were not used to reduce the original principal balance
of
the Mortgage Loan or to increase the Appraised Value of the Mortgage
Property when calculating the Loan-to-Value Ratios for purposes of
the
Agreement and, if the Buydown Funds were provided by the Company
and if
required under the Company Underwriting Guidelines (other than the
exception identified for Exception Mortgage Loans) or the Third-Party
Underwriting Guidelines, as applicable, the terms of the Buydown
Agreement
were disclosed to the appraiser of the Mortgaged
Property;
|
(iii) | The Buydown Funds may not be refunded to the Mortgagor unless the Mortgagor makes a principal payment for the outstanding balance of the Mortgage Loan; |
(iv) | As of the date of origination of the Mortgage Loan, the provisions of the related Buydown Agreement complied with the requirements of the Company Underwriting Guidelines (other than the exception identified for Exception Mortgage Loans) or the Third-Party Underwriting Guidelines, as applicable, regarding buydown agreements; |
(ss) Cooperative
Loans.
With
respect to each Cooperative Loan:
(i) | The Cooperative Shares are held by a Person as a tenant-stockholder in a Cooperative. Each original UCC financing statement, continuation statement or other governmental filing or recordation necessary to create or preserve the perfection and priority of the first lien and security interest in the Cooperative Loan and Proprietary Lease has been timely and properly made. Any security agreement, chattel mortgage or equivalent document related to the Cooperative Loan and delivered to Purchaser or its designee establishes in Purchaser a valid and subsisting perfected first lien on and security interest in the Mortgaged Property described therein, and Purchaser has full right to sell and assign the same. The Proprietary Lease term expires no less than five years after the Mortgage Loan term or such other term acceptable to Xxxxxx Xxx, Xxxxxxx Mac, the Company Underwriting Guidelines (other than the exception identified for Exception Mortgage Loans) or the Third-Party Underwriting Guidelines, as applicable; |
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(ii) | A Cooperative Lien Search has been made by a company competent to make the same which company is acceptable to Xxxxxx Mae or Xxxxxxx Mac and qualified to do business in the jurisdiction where the Cooperative is located; |
(iii)
|
(a)
The term of the related Proprietary Lease is not less than the terms
of
the Cooperative Loan; (b) there is no provision in any Proprietary
Lease
which requires the Mortgagor to offer for sale the Cooperative Shares
owned by such Mortgagor first to the Cooperative; (c) there is no
prohibition in any Proprietary Lease against pledging the Cooperative
Shares or assigning the Proprietary Lease; (d) the Cooperative has
been
created and exists in full compliance with the requirements for
residential cooperatives in the jurisdiction in which the Project
is
located and qualifies as a cooperative housing corporation under
Section
216 of the Code; (e) the Recognition Agreement is on a form published
by
Aztech Document Services, Inc. or includes similar provisions; and
(f) the
Cooperative has good and marketable title to the Project, and owns
the
Project either in fee simple or under a leasehold that complies with
the
requirements of the Xxxxxx Mae guidelines, Xxxxxxx Mac guidelines,
the
Company Underwriting Guidelines (other than the exception identified
for
Exception Mortgage Loans) or the Third-Party Underwriting Guidelines,
as
applicable; such title is free and clear of any adverse liens or
encumbrances, except the lien of any blanket
mortgage;
|
(iv)
|
The Company has the right under the terms of the Mortgage Note, Pledge Agreement and Recognition Agreement to pay any maintenance charges or assessments owed by the Mortgagor; and |
(v)
|
Each Stock Power (i) has all signatures guaranteed or (ii) if all signatures are not guaranteed, then such Cooperative Shares will be transferred by the stock transfer agent of the Cooperative if the Company undertakes to convert the ownership of the collateral securing the related Cooperative Loan; |
(tt) Delivery
of Custodial Mortgage Files.
The
Mortgage Note, Assignment of Mortgage and any other documents required
to
be
delivered by the Company have been delivered to the Custodian in accordance
with
the Redwood-Xxxxx Fargo Agreement. The Company is in possession of a complete,
true and accurate Retained Mortgage File in compliance with Exhibit C, except
for such documents the originals of which have been delivered to the Custodian
or for such documents where the originals of which have been sent for
recordation;
(uu) Credit
Reporting.
With
respect to each Mortgage Loan, the Company has furnished complete information
on the related borrower credit files to Equifax, Experian and Trans Union
Credit Information Company, in accordance with the Fair Credit Reporting
Act
and
its implementing regulations;
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(vv) Contents
of Retained Mortgage File.
The
Retained Mortgage File contains the Mortgage Loan Documents listed as
items
6
through 12 of Exhibit C attached to the Redwood-Xxxxx Fargo Agreement, except
for such documents where the originals of which have been sent for
recordation;
(ww) Pledged
Asset Mortgage Loan.
With
respect to a Pledged Asset Mortgage Loan:
(i) |
The
Pledge Holder has a rating of at least “AA” (or the equivalent) or
better
from at least two Rating Agencies and the Pledge Holder is obligated
to
give the beneficiary of each Letter of Credit at least sixty (60)
days
notice of any non-renewal of any Letter of
Credit;
|
(ii) | With respect to each Pledged Asset Mortgage Loan, the Company is the named beneficiary and no Person has drawn any funds against such Letter of Credit; |
(iii) | Each Letter of Credit is for an amount at least equal to an LTV of 20% of the lower of the purchase price or the Appraised Value of the related Mortgaged Property; |
(iv) | As of the Closing Date, the Company has complied with all the requirements of any Letter of Credit, and each Letter of Credit is a valid and enforceable obligation of the Pledge Holder; |
(v) | The Company has the right to draw on each Letter of Credit if the related Pledged Asset Mortgage Loan becomes ninety (90) days or more delinquent and to apply such proceeds as a partial prepayment thereon; |
(vi) | The Company has not received notice of any non-renewal of any Letter of Credit; |
(vii) | Upon a default by the Pledge Holder, the Company will have a perfected first priority security interest in the assets pledged to secure the Letter of Credit and has the right to obtain possession thereof and the right to liquidate such assets and apply the proceeds thereof to prepay the related Pledged Asset Mortgage Loan; and |
(viii)
|
The Letter of Credit is required to be in effect (either for its original term or through renewal) until such time as all amounts owed under the related Pledged Asset Mortgage Loan by the related Mortgagor are less than 80% of the lesser of the Purchase Price or the Appraised Value of the related Mortgaged Property; |
(xx) Indiana.
There
is
no Mortgage Loan that was originated on or after January 1, 2005, which
is
a
“high cost home loan” as defined under the Indiana Home Loan Practices Act
(I.C.
24-9); and
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(yy) Leasehold
Estate.
With
respect to each Mortgage Loan secured in whole or in part by the interest of
the
Mortgagor as a lessee under a ground lease of the related Mortgaged Property
(a
“Ground Lease”) and not by a fee interest in such Mortgaged
Property:
(i) | The Mortgagor is the owner of a valid and subsisting interest as tenant under the Ground Lease; |
(ii) | The Ground Lease is in full force and effect; |
(iii) | The Mortgagor is not in default under any provision of the lease; |
(iv)
|
The
lessor under the Ground Lease is not in default under any of the
terms or
provisions thereof on the part of the lessor to be observed or
performed;
|
(v) | The term of the Ground Lease exceeds the maturity date of the related Mortgage Loan by at least five (5) years; |
(vi) | The Mortgagee under the Mortgage Loan is given at least sixty (60) days’ notice of any default and an opportunity to cure any defaults under the Ground Lease or to take over the Mortgagor’s rights under the Ground Lease; |
(vii) | The Ground Lease does not contain any default provisions that could result in forfeiture or termination of the Ground Lease except for non-payment of the Ground Lease or a court order; |
(viii)
|
The
Ground Lease provides that the leasehold can be transferred, mortgaged
and
sublet an unlimited number of times either without restriction or
on
payment of a reasonable fee and delivery of reasonable documentation
to
the lessor;
|
(ix) |
The
Ground Lease or a memorandum thereof has been recorded and by its
terms
permits the leasehold estate to be mortgaged;
and
|
(x)
|
The execution, delivery and performance of the Mortgage do not require consent (other than those consents which have been obtained and are in full force and effect) under, and will not contravene any provision of or cause a default under, the Ground Lease. |
(zz) Prepayment
Penalty.
No
Mortgage Loan contains prepayment penalties that extend beyond five years after
the date of origination;
(aaa) Qualified
Mortgage Loan.
Each
Mortgage Loan would be a “qualified mortgage” within the meaning of Section
860G(a)(3)(A) of the Code and Treasury Regulations Section 1.860G-2(a)(1) if
transferred to a REMIC on its startup date in exchange for the regular or
residual interests of the REMIC; and
(bbb) No
Adverse Selection.
There
were no adverse selection procedures used in selecting the Mortgage
Loan
from among the residential mortgage loans which were available for
inclusion in the Mortgage Loans.
|
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