Exhibit 99.1
EXECUTION COPY
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XXXXXXX XXXXX MORTGAGE LENDING, INC.,
SPONSOR
and
XXXXXXX XXXXX MORTGAGE INVESTORS, INC.,
PURCHASER
MORTGAGE LOAN SALE AND ASSIGNMENT AGREEMENT
Dated as of April 1, 2006
Xxxxxxx Xxxxx Mortgage Investors Trust
(Mortgage Pass-Through Certificates Series MLMI 2006-F1)
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MLMI 2006-F1
Mortgage Loan Sale and Assignment Agreement
THIS MORTGAGE LOAN SALE AND ASSIGNMENT AGREEMENT, dated as of April 1, 2006
(the "Agreement"), is executed by and between Xxxxxxx Xxxxx Mortgage Lending,
Inc. (the "Sponsor") and Xxxxxxx Xxxxx Mortgage Investors, Inc. (the
"Depositor").
All capitalized terms not defined herein shall have the same meanings
assigned to such terms in that certain Pooling and Servicing Agreement (the
"Pooling Agreement"), dated as of April 1, 2006, among the Depositor, Xxxxx
Fargo Bank, N.A., as trustee (the "Trustee"), and National City Mortgage Co., as
servicer and as responsible party (the "Company").
WITNESSETH:
WHEREAS, Xxxxxxx Xxxxx Bank, USA ("MLBUSA") acquired the mortgage loans set
forth on Schedule A attached hereto (the "Mortgage Loans") from the Company
pursuant to that certain Master Seller's Warranties and Servicing Agreement,
dated as of May 1, 2004, between MLBUSA and the Company, as amended (the
"Warranties and Servicing Agreement");
WHEREAS, MLBUSA assigned all of its right, title, interest and obligations
in, to and under the Warranties and Servicing Agreement to the Sponsor pursuant
to the Assignment, Assumption and Recognition Agreement, dated April 1, 2006,
between MLBUSA and the Sponsor, and acknowledged by the Company (the "Assignment
Agreement") (except for obligations that arise prior to the date hereof, which
were retained by MLBUSA).
WHEREAS, the Sponsor desires to sell, without recourse, all of its rights,
title and interest in the Mortgage Loans to the Depositor, to assign all of its
rights and interest under the Assignment Agreement and delegate all of its
obligations thereunder to the Depositor; and
WHEREAS, the Sponsor and the Depositor acknowledge and agree that the
Depositor will assign all of its rights and delegate all of its obligations
hereunder to the Trustee, and that each reference herein to the Depositor is
intended, unless otherwise specified, to mean the Depositor or the Trustee, as
assignee, whichever is the owner of the Mortgage Loans from time to time.
NOW, THEREFORE, in consideration of the mutual agreements herein set forth,
and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Sponsor and the Depositor agree as follows:
ARTICLE I
CONVEYANCE OF MORTGAGE LOANS
Section 1.01. Sale of Mortgage Loans. Concurrently with the execution and
delivery of this Agreement, the Sponsor does hereby transfer, assign, set over,
deposit with and otherwise convey to the Depositor, without recourse, subject to
Sections 1.03 and 1.04, all the right, title and interest of the Sponsor in and
to the Mortgage Loans identified on Schedule A hereto, having an aggregate
stated principal balance as of the Cut-off Date of approximately $226,864,854.
Such conveyance includes, without limitation, the right to all distributions of
principal and
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interest received on or with respect to the Mortgage Loans on or after April 1,
2006, other than payments of principal and interest due on or before such date,
and all such payments due after such date but received prior to such date and
intended by the related Mortgagors to be applied after such date, together with
all of the Sponsor's right, title and interest in and to each related account
and all amounts from time to time credited to and the proceeds of such account,
any REO Property and the proceeds thereof, the Sponsor's rights under any
Insurance Policies related to the Mortgage Loans, and the Sponsor's security
interest in any collateral pledged to secure the Mortgage Loans, including the
Mortgaged Properties.
Concurrently with the execution and delivery of this Agreement, the Sponsor
hereby assigns to the Depositor all of its rights and interest under the
Warranties and Service Agreement, other than any servicing rights retained
pursuant to the provisions of the Warranties and Servicing Agreement, to the
extent relating to the Mortgage Loans. Concurrently with the execution hereof,
the Depositor tenders the purchase price of $[intentionally omitted]. The
Depositor hereby accepts such assignment, and shall be entitled to exercise all
such rights of the Sponsor under the Warranties and Servicing Agreement, as if
the Depositor had been a party to such agreement.
Section 1.02. Delivery of Documents. In connection with such transfer and
assignment of the Mortgage Loans hereunder, the Sponsor does hereby deliver, or
cause to be delivered, to the Depositor (or its designee) the documents or
instruments with respect to each Mortgage Loan (each a "Mortgage File") so
transferred and assigned, as specified in the Warranties and Servicing
Agreement.
For Mortgage Loans (if any) that have been prepaid in full after the
Cut-off Date and prior to the Closing Date, the Sponsor, in lieu of delivering
the related Mortgage Files, herewith delivers to the Depositor an Officer's
Certificate, which shall include a statement to the effect that all amounts
received in connection with such prepayment that are required to be deposited in
the account maintained by the Company for such purpose have been so deposited.
Section 1.03. Review of Documentation. The Depositor, by execution and
delivery hereof, acknowledges receipt of the Mortgage Files pertaining to the
Mortgage Loans listed on the Mortgage Loan Schedule, subject to review thereof
by the Trustee, for the Mortgage Loans for the Depositor. The Trustee is
required to review, within 45 days following the Closing Date, each applicable
Mortgage File. If in the course of such review the Trustee identifies any
material defect, the Sponsor shall be obligated to cure such defect or to
repurchase the related Mortgage Loan from the Depositor (or, at the direction of
and on behalf of the Depositor, from the Trust Fund), or to substitute a
Replacement Mortgage Loan therefor, in each case to the same extent and in the
same manner as the Depositor is obligated to the Trustee and the Trust Fund
under the Pooling Agreement.
Section 1.04. Representations and Warranties of the Sponsor.
(a) The Sponsor hereby represents and warrants to the Depositor that as of
the date hereof that:
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(i) The Sponsor is a Delaware corporation duly organized, validly
existing and in good standing under the laws governing its creation and
existence and has full corporate power and authority to own its property,
to carry on its business as presently conducted, and to enter into and
perform its obligations under this Agreement;
(ii) The execution and delivery by the Sponsor of this Agreement have
been duly authorized by all necessary corporate action on the part of the
Sponsor; none of the execution and delivery of this Agreement, the
consummation of the transactions herein contemplated, or the compliance
with the provisions hereof will conflict with or result in a breach of, or
constitute a default under, any of the provisions of any law, governmental
rule, regulation, judgment, decree or order binding on the Sponsor or its
properties or the federal stock charter or bylaws of the Sponsor;
(iii) The execution, delivery and performance by the Sponsor of this
Agreement and the consummation of the transactions contemplated hereby do
not require the consent or approval of, the giving of notice to, the
registration with, or the taking of any other action in respect of, any
state, federal or other governmental authority or agency, except such as
has been obtained, given, effected or taken prior to the date hereof;
(iv) This Agreement has been duly executed and delivered by the
Sponsor and, assuming due authorization, execution and delivery by the
Depositor, constitutes a valid and binding obligation of the Sponsor
enforceable against it in accordance with its terms, except as such
enforceability may be subject to (A) applicable bankruptcy and insolvency
laws and other similar laws affecting the enforcement of the rights of
creditors generally and (B) general principles of equity regardless of
whether such enforcement is considered in a proceeding in equity or at law;
and
(v) There are no actions, suits or proceedings pending or, to the
knowledge of the Sponsor, threatened or likely to be asserted against or
affecting the Sponsor, before or by any court, administrative agency,
arbitrator or governmental body (A) with respect to any of the transactions
contemplated by this Agreement or (B) with respect to any other matter
which in the judgment of the Sponsor will be determined adversely to the
Sponsor and will if determined adversely to the Sponsor materially and
adversely affect it or its business, assets, operations or condition,
financial or otherwise, or adversely affect its ability to perform its
obligations under this Agreement.
(vi) The Sponsor (A) currently operates or actively participates in an
on-going and active program or business to make periodic purchases of
mortgage loans from originators or other Sponsors, with a portion of the
proceeds generated by such program or business being used to purchase
mortgages made to borrowers who are: low-income families (families with
incomes of 80% or less of area median income) living in low-income areas (a
census tract or block numbering area in which the median income does not
exceed 80% of the area median income) and/or very low-income families
(families with incomes of 60% or less of area median income), and (B)
agrees that Xxxxxxx Mac for a period of two (2) years following the date of
this Agreement may contact the Sponsor to confirm that it continues to
operate or actively participate in the mortgage program or
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business and to obtain other nonproprietary information about the Sponsor's
activities that may assist Xxxxxxx Mac in completing its regulatory
reporting requirements. The Sponsor must make reasonable efforts to provide
such information to Xxxxxxx Mac.
(b) The representations and warranties of the Company with respect to each
Mortgage Loan contained in the Warranties and Servicing Agreement were made as
of the date of the transfer of each such Mortgage Loan to the Depositor. To the
extent that any fact, condition or event with respect to a Mortgage Loan
constitutes a breach of both (i) a representation or warranty of the Company
under the Warranties and Servicing Agreement and (ii) a representation or
warranty of the Sponsor under this Agreement, the sole right or remedy of the
Depositor with respect to a breach by the sponsor of such representation and
warranty (other than a breach by the Sponsor of the representations and
warranties made pursuant to Sections 1.04(b)(vi) and 1.04(b)(vii)) shall be the
right to enforce the obligations of the Company under any applicable
representation or warranty made by it. The representations made by the Sponsor
pursuant to Sections 1.04(b)(vi) and 1.04(b)(vii) shall be direct obligations of
the Sponsor. The Depositor acknowledges and agrees that the representations and
warranties of the Sponsor in this Section 1.04(b) (other than the
representations and warranties made pursuant to Sections 1.04(b)(vi) and
1.04(b)(vii)) are applicable only to facts, conditions or events that do not
constitute a breach of any representation or warranty made by the Company in the
Warranties and Servicing Agreement. The Sponsor shall have no obligations or
liability with respect to any breach of a representation or warranty made by it
with respect to the Mortgage Loans if the fact, condition or event constituting
such breach also constitutes a breach of a representation or warranty made by
the Company in the Warranties and Servicing Agreement, without regard to whether
the Company fulfills its contractual obligations in respect of such
representation or warranty; provided, however, that if the Company fulfills its
obligations under the provisions of the Warranties and Servicing Agreement by
substituting for the affected Mortgage Loan a mortgage loan that is not a
Replacement Mortgage Loan, the Sponsor shall, in exchange for such substitute
mortgage loan, provide the Depositor (a) with the applicable Purchase Price for
the affected Mortgage Loan or (b) within the two-year period following the
Closing Date, with a Qualified Substitute Mortgage Loan for such affected
Mortgage Loan. Subject to the foregoing, the Sponsor represents and warrants
upon delivery of the Mortgage Loans to the Depositor hereunder, as to each
Mortgage Loan, that as of April 1, 1006:
(i) The information set forth with respect to the Mortgage Loans on
the Mortgage Loan Schedule provides an accurate listing of the Mortgage
Loans, and the information with respect to each Mortgage Loan on the
Mortgage Loan Schedule is true and correct in all material respects at the
date or dates respecting which such information is given;
(ii) As of the Closing Date, no Mortgage Loan is in foreclosure;
(iii) As of the Closing Date, each Mortgage Loan is a "qualified
mortgage" within the meaning of Section 860G of the Code (as determined
without regard to Treas. Reg. Section 1.860G-2(a)(3) or any similar rule
that treats a defective obligation as a qualified mortgage for a temporary
period);
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(iv) As of the Closing Date, no Mortgage Loan provides for interest
other than at either (x) a single fixed rate in effect throughout the term
of the Mortgage Loan or (y) a "variable rate" (within the meaning of Treas.
Reg. Section 1.860G-1(a)(3)) in effect throughout the term of the Mortgage
Loan;
(v) As of the Closing Date, the Sponsor would not, based on the
delinquency status of the Mortgage Loans, institute foreclosure proceedings
with respect to any of the Mortgage Loans prior to the next scheduled
payment for such Mortgage Loan;
(vi) None of the Mortgage Loans are "high cost" as defined by
applicable predatory and abusive lending laws; 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(R) Glossary which is as of date hereof
Version 5.6(d) Revised, Appendix E); and
(vii) Each Mortgage Loan at the time it was made complied with all
applicable local, state and federal lending laws, including, but not
limited to, all applicable predatory and abusive lending laws.
It is understood and agreed that the representations and warranties set
forth in Section 1.04(b) herein shall survive delivery of the Mortgage Files and
the Assignment of Mortgage of each Mortgage Loan to the Depositor. Upon
discovery by either the Sponsor or the Depositor of a breach of any of the
foregoing representations and warranties that adversely and materially affects
the value of the related Mortgage Loan, and, that does not also constitute a
breach of a representation or warranty of the Companies in the Warranties and
Servicing Agreement, the party discovering such breach shall give prompt written
notice to the other party. Within 60 days of the discovery of any such breach,
the Sponsor shall either (a) cure such breach in all material respects, (b)
repurchase such Mortgage Loan or any property acquired in respect thereof from
the Depositor at the applicable Purchase Price or (c) within the two-year period
following the Closing Date, substitute a Replacement Mortgage Loan for the
affected Mortgage Loan. The Sponsor indemnifies and holds the Trust Fund, the
Trustee, the Depositor, the Servicer and each Holder harmless against any and
all taxes, claims, losses, penalties, fines, forfeitures, reasonable legal fees
and related costs, judgments and any other costs, fees and expenses that the
Trust Fund, the Trustee, the Depositor, the Servicer, the Responsible Party and
any Holder may sustain in connection with any actions of the Sponsor relating to
a repurchase of a Mortgage Loan other than in compliance with the terms of the
Pooling Agreement and this Agreement, to the extent that any such action causes
(i) any federal or state tax to be imposed on the Trust Fund or any REMIC
provided for in the Pooling Agreement, including without limitation, any federal
tax imposed on "prohibited transactions" under Section 860F(a)(1) of the Code or
on "contributions after the startup date" under Section 860(d)(1) of the Code,
or (ii) any REMIC created in the Pooling Agreement to fail to qualify as a REMIC
at any time that any Certificate is outstanding.
Section 1.05. Grant Clause. It is intended that the conveyance of the
Sponsor's right, title and interest in and to Mortgage Loans and other property
conveyed pursuant to this Agreement shall constitute, and shall be construed as,
a sale of such property and not a grant of a security interest to secure a loan.
However, if such conveyance is deemed to be in respect of a loan, it is intended
that: (i) the rights and obligations of the parties shall be established
pursuant to the terms of this Agreement; (ii) the Sponsor hereby grants to the
Depositor a first priority
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security interest in all of the Sponsor's right, title and interest in, to and
under, whether now owned or hereafter acquired, such Mortgage Loans and other
property; and (iii) this Agreement shall constitute a security agreement under
applicable law.
Section 1.06. Assignment by Depositor. The Depositor shall have the right,
upon notice to but without the consent of the Sponsor, to assign, in whole or in
part, its interest under this Agreement with respect to the Mortgage Loans to
the Trustee, and the Trustee then shall succeed to all rights of the Depositor
under this Agreement. All references to the Depositor in this Agreement shall be
deemed to include its assignee or designee, specifically including the Trustee.
ARTICLE II
MISCELLANEOUS PROVISIONS
Section 2.01. Binding Nature of Agreement; Assignment. This Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.
Section 2.02. Entire Agreement. This Agreement contains the entire
agreement and understanding among the parties hereto with respect to the subject
matter hereof, and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or written,
of any nature whatsoever with respect to the subject matter hereof. The express
terms hereof control and supersede any course of performance and/or usage of the
trade inconsistent with any of the terms hereof.
Section 2.03. Amendment. This Agreement may be amended from time to time by
the Sponsor and the Depositor, without notice to or the consent of any of the
Holders, (i) to cure any ambiguity or correct any mistake, (ii) to cause the
provisions herein to conform to or be consistent with or in furtherance of the
statements made with respect to the Certificates, the Trust Fund, the Pooling
Agreement or this Agreement in the Offering Document, as defined in the Pooling
Agreement; or to correct or supplement any provision herein which may be
inconsistent with any other provisions herein, (iii) to make any other
provisions with respect to matters or questions arising under this Agreement or
(iv) to modify, alter, amend, add to or rescind any of the terms or provisions
to the extent necessary or desirable to comply with any requirements imposed by
the Code and the REMIC Provisions. No such amendment effected pursuant to clause
(iii) of the preceding sentence shall adversely affect in any material respect
the interests of any Holder. Any such amendment shall be deemed not to adversely
affect in any material respect any Holder, if the Trustee receives written
confirmation from each Rating Agency that such amendment will not cause such
Rating Agency to reduce the then current rating assigned to the Certificates
(and any Opinion of Counsel requested by the Trustee in connection with any such
amendment may rely expressly on such confirmation as the basis therefor).
(a) This Agreement may also be amended from time to time by the Sponsor and
the Depositor with the consent of the Holders of not less than 66-2/3% of the
Class Principal Amount (or Percentage Interest) of each Class of Certificates
affected thereby for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this
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Agreement or of modifying in any manner the rights of the Holders; provided,
however, that no such amendment may (i) reduce in any manner the amount of, or
delay the timing of, payments received on Mortgage Loans which are required to
be distributed on any Certificate without the consent of the Holder of such
Certificate or (ii) reduce the aforesaid percentages of Class Principal Amount
(or Percentage Interest) of Certificates of each Class, the Holders of which are
required to consent to any such amendment without the consent of the Holders of
100% of the Class Principal Amount (or Percentage Interest) of each Class of
Certificates affected thereby. For purposes of this paragraph, references to
"Holder" or "Holders" shall be deemed to include, in the case of any Class of
Book-Entry Certificates, the related Certificate Owners.
(b) It shall not be necessary for the consent of Holders under this Section
2.03 to approve the particular form of any proposed amendment, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents and of evidencing the authorization of the execution
thereof by Holders shall be subject to such reasonable regulations as the
Trustee may prescribe.
Section 2.04. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES APPLIED IN NEW YORK.
Section 2.05. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement.
Section 2.06. Indulgences; No Waivers. Neither the failure nor any delay on
the part of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party asserted to have granted such waiver.
Section 2.07. Headings Not to Affect Interpretation. The headings contained
in this Agreement are for convenience of reference only, and they shall not be
used in the interpretation hereof.
Section 2.08. Benefits of Agreement. Nothing in this Agreement, express or
implied, shall give to any Person, other than the parties to this Agreement and
their successors hereunder, any benefit or any legal or equitable right, power,
remedy or claim under this Agreement.
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Section 2.09. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, and all of which
together shall constitute one and the same instrument.
[SIGNATURE PAGE IMMEDIATELY FOLLOWS]
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IN WITNESS WHEREOF, the Sponsor and the Depositor have caused their names
to be signed hereto by their respective duly authorized officers as of the date
first above written.
XXXXXXX XXXXX MORTGAGE LENDING, INC.
By:
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Name:
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Title:
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XXXXXXX XXXXX MORTGAGE INVESTORS, INC.
By:
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Name:
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Title:
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SCHEDULE A
MORTGAGE LOAN SCHEDULE
On file at the offices of:
Dechert LLP
Xxxx Centre
0000 Xxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000-0000
Attn: Xxxxxx X. Xxxxxxx
Telephone: (000) 000-0000
Telecopier: (000) 000-0000
