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EXHIBIT 10.128
[PREFERRED EQUITIES CORPORATION LETTERHEAD]
September 2, 1997
Mego Mortgage Corporation
0000 Xxxxxxxx Xxxxxx, 0xx Xxxxx
Xxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxx, Executive Vice President
Re: Loan Program Sub-Servicing Agreement (the "Agreement") dated as of
September 1, 1996 between Preferred Equities Corporation ("PEC") and Mego
Mortgage Corporation ("MMC")
Gentlemen:
This letter serves to confirm our agreement that the present monthly servicing
fee of one-twelfth (1/12) of one-half (1/2) of one percent (0.50%) as set forth
in Article 4 of the Agreement is hereby modified and amended to be one-twelfth
(1/12) of four tenths (4/10) of one percent (0.40%) of the outstanding principal
balance of all loans being serviced on the first day of the prior month. This
change is effective as of September 1, 1997. It is further agreed that upon the
later to occur of (i) January 1, 1998 or (ii) the first day of the month
following the month in which the aggregate principal balance of all loans being
serviced by PEC for MMC is equal to or exceeds $1,000,000,000, the monthly
servicing fee shall thereafter be one-twelfth (1/12) of thirty-five one
hundredths (35/100) of one percent (0.35%). Except as modified hereby, all other
terms and conditions of the Agreement shall remain in full force and effect.
Please sign a copy of this letter in the space indicated below to indicate your
acceptance and approval of the foregoing.
Very truly yours,
PREFERRED EQUITIES CORPORATION
By: /s/ XXXXXXXXX X. XXXXX
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Xxxxxxxxx X. Xxxxx, Executive Vice President
Accepted and approved as of this 2nd day of September, 1997.
MEGO MORTGAGE CORPORATION
By: /s/ XXXXX X. XXXXXX
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Xxxxx X. Xxxxxx, Executive Vice President
