Common use of Return Requirements Clause in Contracts

Return Requirements. In underwriting a Mortgage Loan, the Manager will model the economic return to the Company and the borrower to determine whether the loan is economically feasible. The Manager is not required to establish minimum debt service coverage ratios, but shall underwrite to a "market" debt service coverage ratio in evaluating the viability of refinancing of a loan. With respect to MBS, the Manager shall utilize bond models (including those of AMRESCO, Charter Research and dealers), as appropriate, to project potentials for delinquency, prepayment and extension and to project losses and returns prior to pricing of transactions.