ASSIGNMENT AND ASSUMPTION AGREEMENT
ASSIGNMENT AND ASSUMPTION AGREEMENT, dated as of March 2, 2006, between Residential
Funding Corporation, a Delaware corporation ("RFC") and Residential Asset Mortgage Products,
Inc., a Delaware corporation (the "Company").
Recitals
A. RFC has entered into seller contracts ("Seller Contracts") with the
seller/servicers.
B. The Company wishes to purchase from RFC certain Mortgage Loans (as hereinafter
defined) originated pursuant to the Seller Contracts with respect thereto.
C. The Company, RFC, as master servicer, and U.S. Bank National Association, as
trustee (the "Trustee"), are entering into a Pooling and Servicing Agreement dated as of
February 1, 2006 (the "Pooling and Servicing Agreement"), pursuant to which the Trust
proposes to issue Mortgage Asset-Backed Pass-Through Certificates, Series 2006-NC2 (the
"Certificates") consisting of sixteen classes designated as Class A-1, Class X-0, Xxxxx X-0,
Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8,
Class M-9, Class B-1, Class SB, Class R-I and Class R-II Certificates representing
beneficial ownership interests in a trust fund consisting primarily of a pool of mortgage
loans identified in Exhibit G to the Pooling and Servicing Agreement (the "Mortgage Loans").
D. In connection with the purchase of the Mortgage Loans, the Company will assign
to or at the direction of RFC the Class SB, Class R-I and Class R-II Certificates
(collectively, the "Retained Certificates").
E. In connection with the purchase of the Mortgage Loans and the issuance of the
Certificates, RFC wishes to make certain representations and warranties to the Company and
to assign certain of its rights under the Seller Contracts to the Company, and the Company
wishes to assume certain of RFC's obligations under the Seller Contracts.
F. The Company and RFC intend that the conveyance by RFC to the Company of all
its right, title and interest in and to the Mortgage Loans pursuant to this Agreement shall
constitute a purchase and sale and not a loan.
NOW THEREFORE, in consideration of the recitals and the mutual promises herein and
other good and valuable consideration, the parties agree as follows:
1. All capitalized terms used but not defined herein shall have the meanings assigned
thereto in the Pooling and Servicing Agreement.
2. Concurrently with the execution and delivery hereof, RFC hereby assigns to the
Company without recourse all of its right, title and interest in and to the Mortgage Loans,
including all interest and principal received on or with respect to the Mortgage Loans after
the Cut-off Date (other than payments of principal and interest due on the Mortgage Loans in
January 2006). In consideration of such assignment, RFC will receive from the Company, in
immediately available funds, an amount equal to $741,862,439.64 and the Retained
Certificates. In connection with such assignment and at the Company's direction, RFC has in
respect of each Mortgage Loan endorsed the related Mortgage Note (other than any Destroyed
Mortgage Note) to the order of the Trustee and delivered an assignment of mortgage in
recordable form to the Trustee or its agent. A Destroyed Mortgage Note means a Mortgage Note
the original of which was permanently lost or destroyed.
The Company and RFC intend that the conveyance by RFC to the Company of all its
right, title and interest in and to the Mortgage Loans pursuant to this Section 2 shall be,
and shall be construed as, a sale of the Mortgage Loans by RFC to the Company. It is,
further, not intended that such conveyance be deemed to be a pledge of the Mortgage Loans by
RFC to the Company to secure a debt or other obligation of RFC. However, in the event that
the Mortgage Loans are held to be property of RFC, or if for any reason this Agreement is
held or deemed to create a security interest in the Mortgage Loans, then it is intended that
(a) this Agreement shall also be deemed to be a security agreement within the meaning of
Articles 8 and 9 of the Minnesota Uniform Commercial Code and the Uniform Commercial Code of
any other applicable jurisdiction; (b) the conveyance provided for in this Section shall be
deemed to be a grant by RFC to the Company of a security interest in all of RFC's right
(including the power to convey title thereto), title and interest, whether now owned or
hereafter acquired, in and to (A) the Mortgage Loans, including the Mortgage Notes, the
Mortgages, any related insurance policies and all other documents in the related Mortgage
Files, (B) all amounts payable pursuant to the Mortgage Loans in accordance with the terms
thereof and (C) any and all general intangibles, payment intangibles, accounts, chattel
paper, instruments, documents, money, deposit accounts, certificates of deposit, goods,
letters of credit, advices of credit and investment property and other property of whatever
kind or description now existing or hereafter acquired consisting of, arising from or
relating to any of the foregoing, and all proceeds of the conversion, voluntary or
involuntary, of the foregoing into cash, instruments, securities or other property,
including, without limitation, all amounts from time to time held or invested in the
Certificate Account or the Custodial Account, whether in the form of cash, instruments,
securities or other property; (c) the possession by the Trustee, the Custodian or any other
agent of the Trustee of Mortgage Notes or such other items of property as constitute
instruments, money, negotiable documents or chattel paper shall be deemed to be "possession
by the secured party", or possession by a purchaser or a person designated by him, for
purposes of perfecting the security interest pursuant to the Minnesota Uniform Commercial
Code and the Uniform Commercial Code of any other applicable jurisdiction (including,
without limitation, Section 9-305, 8-313 or 8-321 thereof); and (d) notifications to persons
holding such property, and acknowledgments, receipts or confirmations from persons holding
such property, shall be deemed notifications to, or acknowledgments, receipts or
confirmations from, financial intermediaries, bailees or agents (as applicable) of the
Trustee for the purpose of perfecting such security interest under applicable law. RFC
shall, to the extent consistent with this Agreement, take such reasonable actions as may be
necessary to ensure that, if this Agreement were deemed to create a security interest in the
Mortgage Loans and the other property described above, 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. Without limiting the generality
of the foregoing, RFC shall prepare and deliver to the Company no less than 15 days prior to
any filing date, and the Company shall file, or shall cause to be filed, at the expense of
RFC, all filings necessary to maintain the effectiveness of any original filings necessary
under the Uniform Commercial Code as in effect in any jurisdiction to perfect the Company's
security interest in or lien on the Mortgage Loans including without limitation
(x) continuation statements and (y) such other statements as may be occasioned by (1) any
change of name of RFC or the Company, (2) any change of location of the state of formation,
place of business or the chief executive office of RFC, or (3) any transfer of any interest
of RFC in any Mortgage Loan.
3. Concurrently with the execution and delivery hereof, the Company hereby assigns to or
at the direction of RFC without recourse all of its right, title and interest in and to the
Retained Certificates as part of the consideration payable to RFC by the Company pursuant to
this Agreement.
4. RFC represents and warrants to the Company, with respect to each Mortgage Loan that
on the date of execution hereof (or, if otherwise specified below, as of the date so
specified),
(a) The information set forth in the Mortgage Loan Schedule for such Mortgage Loans is
true and correct in all material respects as of the date or dates respecting which
such information is furnished;
(b) 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);
(c) Immediately prior to the conveyance of the Mortgage Loans to the Trustee, RFC had
good title to, and was the sole owner of, each Mortgage Loan free and clear of any
pledge, lien, encumbrance or security interest (other than rights to servicing and
related compensation) and such conveyance validly transfers ownership of the Mortgage
Loans to the Trustee free and clear of any pledge, lien, encumbrance or security
interest;
(d) Each Mortgage Note constitutes a legal, valid and binding obligation of the Mortgagor
enforceable in accordance with its terms except as limited by bankruptcy, insolvency
or other similar laws affecting generally the enforcement of creditors' rights;
(e) To the best of RFC's knowledge as of the Cut-off Date, and except as noted in (h)
below, there is no default, breach, violation or event of acceleration existing under
the terms of any Mortgage Note or Mortgage and no event which, with notice and
expiration of any grace or cure period, would constitute a default, breach, violation
or event of acceleration under the terms of any Mortgage Note or Mortgage, and no
such default, breach, violation or event of acceleration has been waived by RFC or by
any other entity involved in servicing a Mortgage Loan;
(f) To the best of RFC's knowledge as of the Cut-off Date, none of the Mortgage Loans
with Loan-to-Value Ratios at origination in excess of 80% will be insured by a
Primary Insurance Policy covering the amount of such Mortgage Loan in excess of 75%;
(g) The related Mortgagor is not currently in bankruptcy proceedings with respect to any
of the Mortgage Loans;
(h) As of the Cut-Off Date none of the Mortgage Loans are 30 to 59 days Delinquent in
payment of principal and interest and none of the Mortgage Loans are 60 or more days
Delinquent in payment of principal and interest;
(i) None of the Mortgage Loans are Buy-Down Mortgage Loans;
(j) To the best of RFC's knowledge, there is no delinquent tax or assessment lien against
any related Mortgaged Property;
(k) No Mortgagor has any valid right of offset, defense or counterclaim as to the related
Mortgage Note or Mortgage, except as may be provided under the Servicemembers Civil
Relief Act;
(l) No Mortgage Loan provides for payments that are subject to reduction by withholding
taxes levied by any foreign (non-United States) sovereign government;
(m) (1) The proceeds of each Mortgage Loan have been fully disbursed and (2) to the best
of RFC's knowledge, 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 (including any escrow funds held to
make Monthly Payments pending completion of such improvements) have been complied
with. All costs, fees and expenses incurred in making, closing or recording the
Mortgage Loans were paid;
(n) To the best of RFC's knowledge, with respect to each Mortgage Loan, there are no
mechanics' liens or claims for work, labor or material affecting any Mortgaged
Property which are or may be a lien prior to, or equal with, the lien of the related
Mortgage, except such liens that are insured or indemnified against by a title
insurance policy;
(o) With respect to each Mortgage Loan, a policy of title insurance was effective as of
the closing of each Mortgage Loan, is valid and binding, and remains in full force
and effect, unless the Mortgaged Properties are located in the State of Iowa and an
attorney's certificate has been provided;
(p) Each Mortgaged Property is free of damage and in good repair, no notice of
condemnation has been given with respect thereto and RFC knows of nothing involving
any Mortgaged Property that could reasonably be expected to materially adversely
affect the value or marketability of any Mortgaged Property;
(q) Each Mortgage contains customary and enforceable provisions which render the rights
and remedies of the holder adequate to realize the benefits of the security against
the Mortgaged Property, including (i) in the case of a Mortgage that is a deed of
trust, by trustee's sale, or (ii) by judicial foreclosure or, if applicable, non
judicial foreclosure, and to the best of RFC's knowledge, there is no homestead or
other exemption available to the Mortgagor that would interfere with such right to
sell at a trustee's sale or right to foreclosure, subject in each case to applicable
federal and state laws and judicial precedents with respect to bankruptcy and right
of redemption;
(r) To the best of RFC's knowledge, with respect to each Mortgage that is a deed of
trust, a trustee duly qualified under applicable law to serve as such is properly
named, designated and serving, and except in connection with a trustee's sale after
default by a Mortgagor, no fees or expenses are payable by the seller or RFC to the
trustee under any Mortgage that is a deed of trust;
(s) If the improvements securing a Mortgage Loan are located in a federal designated
special flood hazard area, flood insurance in the amount required under the Program
Guide covers such Mortgaged Property (either by coverage under the federal flood
insurance program or by coverage from private insurers);
(t) To the extent an appraisal was made on a Mortgage Loan, the appraisal was made by an
appraiser who meets the minimum qualifications for appraisers as specified in the
Program Guide;
(u) Each Mortgage Loan is covered by a standard hazard insurance policy;
(v) If any of the Mortgage Loans are secured by a leasehold interest, with respect to
each leasehold interest: the use of leasehold estates for residential properties is
an accepted practice in the area where the related Mortgaged Property is located;
residential property in such area consisting of leasehold estates is readily
marketable; the lease is recorded and no party is in any way in breach of any
provision of such lease; the leasehold is in full force and effect and is not subject
to any prior lien or encumbrance by which the leasehold could be terminated or
subject to any charge or penalty (other than with respect to any junior lien Mortgage
Loans); and the remaining term of the lease does not terminate less than ten years
after the maturity date of such Mortgage Loan;
(w) To the best of RFC's knowledge, any escrow arrangements established with respect to
any Mortgage Loan are in compliance with all applicable local, state and federal laws
and are in compliance with the terms of the related Mortgage Note;
(x) None of the Mortgage Loans in the mortgage pool are loans that, under applicable
state or local law in effect at the time of origination of the loan, are referred to
as (1) "high-cost" or "covered" loans or (2) any other similar designation if the law
imposes greater restrictions or additional legal liability for residential mortgage
loans with high interest rates, points and/or fees;
(y) None of the proceeds for the Mortgage Loans were used to finance the purchase of
single premium credit insurance policies;
(z) None of the Mortgage Loans contain prepayment penalties that extend beyond three
years after the date of origination;
(aa) None of the Mortgage Loans are subject to the Homeownership Act;
(bb) 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 anti-predatory lending laws;
(cc) No Mortgage Loan was originated on or after October 1, 2002 and before March 7, 2003,
which is secured by property located in the State of Georgia;
(dd) No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as such terms
are defined in Appendix E of the Standard & Poor's Glossary For File Format For
LEVELS(R)Version 5.6c Revised (attached hereto as Exhibit 1);
(ee) Each Mortgage Loan listed on the attached Schedule B has an original term to maturity
of 360 months and an original amortization term of 480 months;
(ff) The information set forth in the Mortgage Loan Schedule with respect to prepayment
penalties is complete, true and correct in all material respects at the date or dates
on which such information is furnished respecting with such information is furnished,
and each prepayment penalty is permissible and enforceable in accordance with its
terms upon the mortgagor's full and voluntary principal prepayment under applicable
law, except to the extent that: (1) the enforceability thereof may be limited by
bankruptcy, insolvency, moratorium, receivership and other similar laws relating to
creditors' rights; (2) the collectability thereof may be limited due to acceleration
in connection with a foreclosure or other involuntary prepayment; or (3) subsequent
changes in applicable law may limit or prohibit enforceability thereof under
applicable law;
(gg) Each Mortgage Loan and prepayment penalty associated with the Mortgage Loan at
origination complied in all material respects with applicable local, state and
federal laws, including, without limitation, usury, equal credit opportunity, real
estate settlement procedures, truth-in-lending and disclosure laws, and the
consummation of the transactions contemplated hereby will not involve the violation
of any such laws; and
(hh) To the best of RFC's knowledge, the Subservicer for each Mortgage Loan has accurately
and fully reported its borrower credit files to each of the Credit Repositories in a
timely manner.
Upon discovery by RFC or upon notice from the Company or the Trustee of a breach of
the foregoing representations and warranties in respect of any Mortgage Loan, or upon the
occurrence of a Repurchase Event as described in Section 5 below, which materially and
adversely affects the interests of any holders of the Certificates or the Company in such
Mortgage Loan (notice of which shall be given to the Company by RFC, if it discovers the
same), RFC shall, within 90 days after the earlier of its discovery or receipt of notice
thereof, either cure such breach or Repurchase Event in all material respects or, except as
otherwise provided in Section 2.04 of the Pooling and Servicing Agreement, either (i)
purchase such Mortgage Loan from the Trustee or the Company, as the case may be, at a price
equal to the Purchase Price for such Mortgage Loan or (ii) substitute a Qualified Substitute
Mortgage Loan or Loans for such Mortgage Loan in the manner and subject to the limitations
set forth in Section 2.04 of the Pooling and Servicing Agreement. If the breach of
representation and warranty that gave rise to the obligation to repurchase or substitute a
Mortgage Loan pursuant to this Section 4 was the representation and warranty set forth in
clause (bb) of this Section 4, then RFC shall pay to the Trust Fund, concurrently with and
in addition to the remedies provided in the preceding sentence, an amount equal to any
liability, penalty or expense that was actually incurred and paid out of or on behalf of the
Trust Fund, and that directly resulted from such breach, or if incurred and paid by the
Trust Fund thereafter, concurrently with such payment. Notwithstanding the foregoing, RFC
shall not be required to cure breaches, Repurchase Events or purchase or substitute for
Mortgage Loans as provided above if the substance of such breach or Repurchase Event also
constitutes fraud in the origination of the Mortgage Loan.
5. With respect to each Mortgage Loan, a repurchase event ("Repurchase Event") shall
have occurred if one or both of the following occur: (A) it is discovered that, as of the
date hereof, the related Mortgage was not a valid first lien (or second lien, with respect
to junior lien Mortgage Loans) on the related Mortgaged Property subject only to (i) the
lien of real property taxes and assessments not yet due and payable, (ii) covenants,
conditions, and restrictions, rights of way, easements and other matters of public record as
of the date of recording of such Mortgage and such other permissible title exceptions as are
listed in the Program Guide, (iii) other matters to which like properties are commonly
subject which do not materially adversely affect the value, use, enjoyment or marketability
of the Mortgaged Property and (iv) with respect to junior lien Mortgage Loans, the senior
mortgage loan thereon or (B) it is discovered that, as of the time of its origination and as
of the date of execution hereof, the Mortgage Loan did not comply in all material respects
with all applicable local, state and federal laws. In addition, with respect to any Mortgage
Loan listed on the attached Schedule A with respect to which any document or documents
constituting a part of the Mortgage File are missing or defective in any material respect,
if such Mortgage Loan subsequently is in default and the enforcement thereof or of the
related Mortgage is materially and adversely affected by the absence or defectiveness of any
such document or documents, a Repurchase Event shall be deemed to have occurred and RFC will
be obligated to repurchase or substitute for such Mortgage Loan in the manner set forth in
Section 4 above.
6. Concurrently with the execution and delivery hereof, RFC hereby assigns to the
Company, and the Company hereby assumes, all of RFC's rights and obligations under the
Seller Contracts with respect to the Mortgage Loans to be serviced under the Pooling and
Servicing Agreement, insofar as such rights and obligations relate to (a) any
representations and warranties regarding a Mortgage Loan made by a Seller under any Seller
Contract and any remedies available under the Seller Contract for a breach of any such
representations and warranties if (i) the substance of such breach also constitutes fraud in
the origination of the Mortgage Loan or (ii) the representation and warranty relates to the
absence of toxic materials or other environmental hazards that could affect the Mortgaged
Property, or (b) the Seller's obligation to deliver to RFC the documents required to be
contained in the Mortgage File and any rights and remedies available to RFC under the Seller
Contract in respect of such obligation or in the event of a breach of such obligation;
provided that, notwithstanding the assignment and assumption hereunder, RFC shall have the
concurrent right to exercise remedies and pursue indemnification upon a breach by a Seller
under any Seller Contract of any of its representations and warranties and RFC shall
exercise reasonable efforts to enforce a Seller's obligation to purchase a Mortgage Loan
from the Company in accordance with the time frame described in the Program Guide. If the
Company or RFC asserts that it is not required to cure breaches or to purchase or substitute
for Mortgage Loans under the Pooling and Servicing Agreement because the substance of the
breach also constitutes fraud in the origination of any Mortgage Loan, then the substance of
the related breach shall automatically be deemed to constitute fraud in the origination of a
Mortgage Loan for purposes of clause (i) of this Section 6; provided, however, that if the
related Seller provides RFC with reasonable evidence that the substance of such breach does
not constitute fraud, then it shall no longer be deemed to constitute fraud in the
origination of a Mortgage Loan for purposes of clause (i) of this Section 6.
7. This Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective successors and assigns, and no other person shall have any right or
obligation hereunder.
8. RFC, as master servicer under the Pooling and Servicing Agreement (the "Master
Servicer"), shall not waive (or permit a sub-servicer to waive) any Prepayment Charge
unless: (i) the enforceability thereof shall have been limited by bankruptcy, insolvency,
moratorium, receivership and other similar laws relating to creditors' rights generally,
(ii) the enforcement thereof is illegal, or any local, state or federal agency has
threatened legal action if the prepayment penalty is enforced, (iii) the collectability
thereof shall have been limited due to acceleration in connection with a foreclosure or
other involuntary payment or (iv) such waiver is standard and customary in servicing similar
Mortgage Loans and relates to a default or a reasonably foreseeable default and would, in
the reasonable judgment of the Master Servicer, maximize recovery of total proceeds taking
into account the value of such Prepayment Charge and the related Mortgage Loan. In no event
will the Master Servicer waive a Prepayment Charge in connection with a refinancing of a
Mortgage Loan that is not related to a default or a reasonably foreseeable default. If a
Prepayment Charge is waived, but does not meet the standards described above, then the
Master Servicer is required to pay the amount of such waived Prepayment Charge to the holder
of the Class SB Certificates at the time that the amount prepaid on the related Mortgage
Loan is required to be deposited into the Custodial Account. Notwithstanding any other
provisions of this Agreement, any payments made by the Master Servicer in respect of any
waived Prepayment Charges pursuant to this Section shall be deemed to be paid outside of the
Trust Fund and not part of any REMIC.
9. This Agreement will be governed by and construed in accordance with the laws of the
State of New York, without regard to the conflict of law principles thereof, other than
Sections 5-1401 and 5-1402 of the New York General Obligations Law.
[SIGNATURES BEGIN ON FOLLOWING PAGE]
IN WITNESS WHEREOF, the parties have entered into this Assignment and Assumption
Agreement as of the date first above written.
RESIDENTIAL FUNDING CORPORATION
By:...............................................
Name: Xxxxxx Xxxxxx
Title: Associate
RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC.
By:...............................................
Name: Xxxxxx Xxxxxx
Title: Vice President
SCHEDULE A
Schedule of Mortgage Loans with Defective Mortgage Files
(see attached)
SCHEDULE B
Schedule of Mortgage Loans described in Section 4(ee)
EXHIBIT 1
REVISED JULY 11, 0000
XXXXXXXX X - STANDARD & POOR'S PREDATORY LENDING CATEGORIES
Standard & Poor's has categorized loans governed by anti-predatory lending laws in the
Jurisdictions listed below into three categories based upon a combination of factors that
include (a) the risk exposure associated with the assignee liability and (b) the tests and
thresholds set forth in those laws. Note that certain loans classified by the relevant
statute as Covered are included in Standard & Poor's High Cost Loan Category because they
included thresholds and tests that are typical of what is generally considered High Cost by
the industry.
STANDARD & POOR'S HIGH COST LOAN CATEGORIZATION
------------------------------------------------------------------------------------------------
---------------------------------------- --------------------------
State/Jurisdiction Name of Anti-Predatory Lending Category under
Applicable
Anti-Predatory Lending
Law/Effective Date Law
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Arkansas Arkansas Home Loan Protection Act, High Cost Home Loan
Ark. Code Xxx.ss.ss.00-00-000 et seq.
Effective July 16, 2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Cleveland Heights, OH Ordinance No. 72-2003 (PSH), Mun. Code Covered Loan
ss.ss.757.01 et seq.
Effective June 2, 2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Colorado Consumer Equity Protection, Colo. Covered Loan
Stat. Xxx.ss.ss.5-3.5-101 et seq.
Effective for covered loans offered or
entered into on or after January 1,
2003. Other provisions of the Act took
effect on June 7, 2002
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Connecticut Connecticut Abusive Home Loan Lending High Cost Home Loan
Practices Act, Conn. Gen. Xxxx.xx.xx.
36a-746 et seq.
Effective October 1, 2001
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
District of Columbia Home Loan Protection Act, D.C. Xxxxxx.xx. Covered Loan
26-1151.01 et seq.
Effective for loans closed on or after
January 28, 2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Florida Fair Lending Act, Fla. Stat. Xxx.xx.xx. High Cost Home Loan
494.0078 et seq.
Effective October 2, 2002
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Georgia (Oct. 1, 0000 - Xxxxxxx Xxxx Xxxxxxx Xxx, Xx. Code High Cost Home Loan
Mar. 6, 2003) Xxx.ss.ss.7-6A-1 et seq.
Effective October 1, 2002 - March 6,
2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Georgia as amended (Mar. Georgia Fair Lending Act, Ga. Code High Cost Home Loan
7, 2003 - current) Xxx.ss.ss.7-6A-1 et seq.
Effective for loans closed on or after
March 7, 2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
HOEPA Section 32 Home Ownership and Equity Protection High Cost Loan
Act of 1994, 15 U.S.C.ss.1639, 12
C.F.R.ss.ss.226.32 and 226.34
Effective October 1, 1995, amendments
October 1, 2002
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Illinois High Risk Home Loan Act, Ill. Comp. High Risk Home Loan
Stat. tit. 815,ss.ss.137/5 et seq.
Effective January 1, 2004 (prior to
this date, regulations under
Residential Mortgage License Act
effective from May 14, 2001)
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Kansas Consumer Credit Code, Kan. Stat. Xxx. High Loan to Value
ss.ss.16a-1-101 et seq. Consumer Loan (xx.xx.
16a-3-207) and;
Sections 16a-1-301 and 16a-3-207
became effective April 14, 1999;
Section 16a-3-308a became effective
July 1, 1999
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
High APR Consumer Loan
(id.ss.16a-3-308a)
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Kentucky 2003 KY H.B. 287 - High Cost Home Loan High Cost Home Loan
Act, Ky. Rev. Stat.ss.ss.360.100 et seq.
Effective June 24, 2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Maine Truth in Lending, Me. Rev. Stat. tit. High Rate High Fee
9-A,ss.ss.8-101 et seq. Mortgage
Effective November 29, 1995 and as
amended from time to time
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Massachusetts Part 40 and Part 32, 209 X.X.X.xx.xx. High Cost Home Loan
32.00 et seq. and 209 C.M.R.ss.ss.40.01
et seq.
Effective March 22, 2001 and amended
from time to time
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Nevada Assembly Xxxx No. 284, Nev. Rev. Stat. Home Loan
ss.ss.598D.010 et seq.
Effective October 1, 2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
New Jersey New Jersey Home Ownership Security Act High Cost Home Loan
of 2002, N.J. Rev. Stat.ss.ss.46:10B-22
et seq.
Effective for loans closed on or after
November 27, 2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
New Mexico Home Loan Protection Act, N.M. Rev. High Cost Home Loan
Stat.ss.ss.58-21A-1 et seq.
Effective as of January 1, 2004;
Revised as of February 26, 2004
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
New York N.Y. Banking Law Article 6-l High Cost Home Loan
Effective for applications made on or
after April 1, 2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
North Carolina Restrictions and Limitations on High High Cost Home Loan
Cost Home Loans, N.C. Gen. Xxxx.xx.xx.
24-1.1E et seq.
Effective July 1, 2000; amended
October 1, 2003 (adding open-end lines
of credit)
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Ohio H.B. 386 (codified in various sections Covered Loan
of the Ohio Code), Ohio Rev. Code Xxx.
ss.ss.1349.25 et seq.
Effective May 24, 2002
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Oklahoma Consumer Credit Code (codified in Subsection 10 Mortgage
various sections of Title 14A)
Effective July 1, 2000; amended
effective January 1, 2004
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
South Carolina South Carolina High Cost and Consumer High Cost Home Loan
Home Loans Act, S.C. Code Xxx.xx.xx.
37-23-10 et seq.
Effective for loans taken on or after
January 1, 2004
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
West Virginia West Virginia Residential Mortgage West Virginia Mortgage
Lender, Broker and Servicer Act, W. Loan Act Loan
Va. Code Xxx.ss.ss.31-17-1 et seq.
Effective June 5, 2002
---------------------------- ---------------------------------------- --------------------------
STANDARD & POOR'S COVERED LOAN CATEGORIZATION
---------------------------- ---------------------------------------- --------------------------
State/Jurisdiction Name of Anti-Predatory Lending Category under
Applicable
Anti-Predatory Lending
Law/Effective Date Law
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Georgia (Oct. 1, 2002 - Georgia Fair Lending Act, Ga. Code Covered Loan
Mar. 6, 2003) Xxx.ss.ss.7-6A-1 et seq.
Effective October 1, 2002 - March 6,
2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
New Jersey New Jersey Home Ownership Security Act Covered Home Loan
of 2002, N.J. Rev. Stat.ss.ss.46:10B-22
et seq.
Effective November 27, 2003 - July 5,
2004
---------------------------- ---------------------------------------- --------------------------
STANDARD & POOR'S HOME LOAN CATEGORIZATION
------------------------------------------------------------------------------------------------
---------------------------- ---------------------------------------- --------------------------
State/Jurisdiction Name of Anti-Predatory Lending Category under
Applicable
Anti-Predatory Lending
Law/Effective Date Law
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
Georgia (Oct. 1, 2002 - Georgia Fair Lending Act, Ga. Code Home Loan
Mar. 6, 2003) Xxx.ss.ss.7-6A-1 et seq.
Effective October 1, 2002 - March 6,
2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
New Jersey New Jersey Home Ownership Security Act Home Loan
of 2002, N.J. Rev. Stat.ss.ss.46:10B-22
et seq.
Effective for loans closed on or after
November 27, 2003
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
New Mexico Home Loan Protection Act, N.M. Rev. Home Loan
Stat.ss.ss.58-21A-1 et seq.
Effective as of January 1, 2004;
Revised as of February 26, 2004
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
North Carolina Restrictions and Limitations on High Consumer Home Loan
Cost Home Loans, N.C. Gen. Xxxx.xx.xx.
24-1.1E et seq.
Effective July 1, 2000; amended
October 1, 2003 (adding open-end lines
of credit)
---------------------------- ---------------------------------------- --------------------------
---------------------------- ---------------------------------------- --------------------------
South Carolina South Carolina High Cost and Consumer Consumer Home Loan
Home Loans Act, S.C. Code Xxx.xx.xx.
37-23-10 et seq.
Effective for loans taken on or after
January 1, 2004
---------------------------- ---------------------------------------- --------------------------
