Exhibit 99.12(a)
EXECUTION COPY
ASSIGNMENT AND RECOGNITION AGREEMENT
THIS ASSIGNMENT AND RECOGNITION AGREEMENT (this "Agreement"), dated
of January 1, 2006, is entered into among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., a
Delaware corporation (the "Assignee"), ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Mortgage Capital Inc.
(the "Assignor"), The Hemisphere National Bank, a national banking association
(the "Company"), and acknowledged by LaSalle Bank National Association, as
trustee (the "Trustee") of ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Mortgage Loan Trust 2006-1AR (the
"Trust"), and ▇▇▇▇▇ Fargo Bank, National Association, as master servicer (or
any successor master servicer, the "Master Servicer"):
For and in consideration of the sum of TEN DOLLARS ($10.00) and other
valuable consideration the receipt and sufficiency of which hereby are
acknowledged, and of the mutual covenants herein contained, the parties hereto
hereby agree as follows:
Assignment and Conveyance
1. The Assignor hereby conveys, sells, grants, transfers and assigns
to the Assignee all of the right, title and interest of the Assignor, as
purchaser, in, to and under and all obligations related to (a) those certain
Mortgage Loans listed on the schedule (the "Mortgage Loan Schedule") attached
hereto as Exhibit A (the "Mortgage Loans") and (b) except as described below,
that certain Mortgage Loan Sale and Servicing Agreement (the "Sale and
Servicing Agreement"), dated as of December 1, 2005, between the Assignor, as
purchaser (the "Purchaser"), and the Company, as seller, solely insofar as the
Sale and Servicing Agreement relates to the Mortgage Loans. For the avoidance
of doubt, all of the Mortgage Loans are "Servicing Retained" (as such term is
defined in the Sale and Servicing Agreement).
The Assignor specifically reserves and does not assign to the
Assignee hereunder any and all right, title and interest in, to and under and
any obligations of the Assignor with respect to (a) Subsection 7.05 of the
Sale and Servicing Agreement or (b) any mortgage loans subject to the Sale and
Servicing Agreement which are not the Mortgage Loans set forth on the Mortgage
Loan Schedule and are not the subject of this Agreement.
Recognition of the Company
2. From and after January 31, 2006 (the "Closing Date"), the Company
shall and does hereby recognize that the Assignee will transfer the Mortgage
Loans and assign its rights and obligations under the Sale and Servicing
Agreement (solely to the extent set forth herein) and this Agreement to the
Trust created pursuant to a Pooling and Servicing Agreement, dated as of
January 1, 2006 (the "Pooling Agreement"), among the Assignee, the Trustee and
▇▇▇▇▇ Fargo Bank, National Association, as master servicer and as securities
administrator. The Company hereby acknowledges and agrees that from and after
the Closing Date (i) the Trust will be the owner of the Mortgage Loans, (ii)
the Company shall look solely to the Trust for performance of any obligations
of the Assignor insofar as they relate to the Mortgage Loans, (iii) except as
provided in the preceding paragraph, the Trust (including the Trustee and the
Master Servicer acting on the Trust's behalf) shall have all the rights and
remedies available to the Assignor, insofar as they relate to the Mortgage
Loans,
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under the Sale and Servicing Agreement (as modified by Section 6 below),
including, without limitation, the enforcement of the document delivery
requirements set forth in Section 6 of the Sale and Servicing Agreement, and
shall be entitled to enforce all of the obligations of the Company thereunder
insofar as they relate to the Mortgage Loans, and (iv) all references to the
Purchaser, the Custodian or the Bailee under the Sale and Servicing Agreement
insofar as they relate to the Mortgage Loans, shall be deemed to refer to the
Trust (including the Trustee and the Master Servicer acting on the Trust's
behalf). Such rights will include, without limitation, the right to terminate
the Company, as servicer (in such capacity, the "Servicer"), under the Sale
and Servicing Agreement upon the occurrence of an event of default thereunder,
the right to receive all remittances required to be made by the Servicer under
the Sale and Servicing Agreement, the right to receive all monthly reports and
other data required to be delivered by the Servicer under the Sale and
Servicing Agreement, the right to examine the books and records of the
Servicer to the extent provided in the Sale and Servicing Agreement,
indemnification rights and the right to exercise certain rights of consent and
approval relating to actions taken by Assignor. Neither the Company nor the
Assignor shall amend or agree to amend, modify, waive, or otherwise alter any
of the terms or provisions of the Sale and Servicing Agreement which
amendment, modification, waiver or other alteration would in any way affect
the Mortgage Loans or the Company's performance under the Sale and Servicing
Agreement with respect to the Mortgage Loans without the prior written consent
of the Master Servicer. The Servicer shall make all distributions under the
Servicing Agreement to the Master Servicer by wire transfer of immediately
available funds to:
▇▇▇▇▇ Fargo Bank, National Association
ABA Number: ▇▇▇-▇▇▇-▇▇▇
Account Name: Corporate Trust Clearing
Account number: ▇▇▇▇▇▇▇▇▇▇
For further credit to: 50890500, MSM 2006-1AR
The Servicer shall deliver all reports required to be delivered under
the Servicing Agreement to the Master Servicer at the following address:
▇▇▇▇▇ Fargo Bank, National Association
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Client ▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇-▇▇▇
Office Number: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier: (▇▇▇) ▇▇▇-▇▇▇▇
Representations and Warranties of the Company
3. The Company warrants and represents to the Assignor, the Assignee,
the Master Servicer and the Trust as of the date hereof that:
(a) The Company is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its formation;
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(b) The Company has full power and authority to execute, deliver and
perform its obligations under this Agreement and has full power and
authority to perform its obligations under the Sale and Servicing
Agreement. The execution by the Company of this Agreement is in the
ordinary course of the Company's business and will not conflict with, or
result in a breach of, any of the terms, conditions or provisions of the
Company's charter or bylaws or any legal restriction, or any material
agreement or instrument to which the Company is now a party or by which
it is bound, or result in the violation of any law, rule, regulation,
order, judgment or decree to which the Company or its property is
subject. The execution, delivery and performance by the Company of this
Agreement have been duly authorized by all necessary corporate action on
part of the Company. This Agreement has been duly executed and delivered
by the Company, and, upon the due authorization, execution and delivery
by the Assignor, the Assignee, the Master Servicer and the Trust, will
constitute the valid and legally binding obligation of the Company,
enforceable against the Company in accordance with its terms except as
enforceability may be limited by bankruptcy, reorganization, insolvency,
moratorium or other similar laws now or hereafter in effect relating to
creditors' rights generally, and by general principles of equity
regardless of whether enforceability is considered in a proceeding in
equity or at law;
(c) No consent, approval, order or authorization of, or declaration,
filing or registration with, any governmental entity is required to be
obtained or made by the Company in connection with the execution,
delivery or performance by the Company of this Agreement; and
(d) There is no action, suit, proceeding or investigation pending or
threatened against the Company, before any court, administrative agency
or other tribunal, which would draw into question the validity of this
Agreement or the Sale and Servicing Agreement, or which, either in any
one instance or in the aggregate, would result in any material adverse
change in the ability of the Company to perform its obligations under
this Agreement or the Sale and Servicing Agreement, and the Company is
solvent.
4. (a) Pursuant to Section 15 of the Sale and Servicing Agreement,
the Company hereby represents and warrants, for the benefit of the Assignor,
the Assignee, the Master Servicer and the Trust, that the representations and
warranties set forth in Section 7.01 and Section 7.02 of the Sale and
Servicing Agreement with respect to the Mortgage Loans are true and correct as
of the date hereof as if such representations and warranties were made on the
date hereof unless otherwise specifically stated in such representations and
warranties.
(b) It is expressly understood and agreed by the parties hereto that
(i) this Agreement is executed and delivered by LaSalle Bank National
Association, not individually or personally but solely on behalf of the Trust,
as the assignee, in the exercise of the powers and authority conferred and
vested in it, as Trustee, pursuant to the Pooling and Servicing Agreement,
(ii) each of the representations, undertakings and agreements herein made on
the part of assignee is made and intended not as personal representations,
undertakings and agreements by LaSalle Bank National Association but is made
and intended for the purpose of binding only the Trust, (iii) nothing herein
contained shall be construed as creating any liability for LaSalle Bank
National Association, individually or personally, to perform any covenant
(either express
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or implied) contained herein and (iv) under no circumstances shall LaSalle
Bank National Association be personally liable for the payment of any
indebtedness or expenses of the Trust, or be liable for the breach or failure
of any obligation, representation, warranty or covenant made or undertaken by
the Trust under this Agreement and (v) all recourse for any payment liability
or other obligation of the Assignee shall be had solely to the assets of the
Trust.
Remedies for Breach of Representations and Warranties
5. The Company hereby acknowledges and agrees that the remedies
available to the Assignor, the Assignee, the Master Servicer and the Trust
(including the Trustee acting on the Trust's behalf) in connection with any
breach of the representations and warranties made by the Company set forth in
Sections 3 and 4 hereof shall be as set forth in Subsection 7.03 of the Sale
and Servicing Agreement as if they were set forth herein (including without
limitation the repurchase and indemnity obligations set forth therein).
Amendments to Sale and Servicing Agreement
6. The parties to this Agreement hereby agree to amend the Sale and
Servicing Agreement solely with respect to the Mortgage Loans as follows:
(a) The definition of "Servicing Fee Rate" in Section 1 of the Sale
and Servicing Agreement is hereby amended and restated in its entirety as
follows:
"Servicing Fee Rate: With respect to each Mortgage Loan, 0.25% per
annum."
(b) Subsection 11.19 of the Sale and Servicing Agreement is hereby
amended and restated in its entirety as follows:
"Annual Statement as to Compliance. (a) The Servicer shall
deliver to the Purchaser and Master Servicer, on or before
March 10th each year beginning March 10, 2007, an Officer's
Certificate stating that (a) a review of the activities of
the Servicer during the preceding calendar year and if
performance under this Agreement has been made under such
officer's supervision, and (b) to the best of such officer's
knowledge, based on such review, the Servicer has fulfilled
all its obligations under this Agreement throughout such
year, or, if there has been a default in the fulfillment of
any such obligation, specifying each such default known to
such officer and the nature and status thereof and the
action being taken by the Servicer to cure such default.
(b) For so long as the Mortgage Loans are being master
serviced by a master servicer in a securitization
transaction (the "Master Servicer"), by the later of March
10th or 30 days prior to the date on which the Form 10-K is
required to be filed with the SEC of each year (or if not a
Business Day, the immediately preceding Business Day), an
officer of the Servicer shall execute and deliver an
Officer's Certificate to the Master Servicer for the benefit
of such Master Servicer and its officers, directors and
affiliates, certifying as to the following matters:
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(i) Based on my knowledge, the information in the Annual
Statement of Compliance, the Annual Independent Public
Accountant's Servicing Report and all servicing reports,
officer's certificates and other information relating to the
servicing of the Mortgage Loans submitted to the Master
Servicer taken as a whole, does not contain any untrue
statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading as of the date of this certification;
(ii) Based on my knowledge, the servicing information
required to be provided to the Master Servicer by the
Servicer under this Servicing Agreement has been provided to
the Master Servicer;
(iii) I am responsible for reviewing the activities
performed by the Servicer under the Servicing Agreement and
based upon the review required by this Servicing Agreement,
and except as disclosed in the Annual Statement of
Compliance and the Annual Independent Public Accountant's
Servicing Report submitted to the Master Servicer, the
Servicer has, as of the date of this certification fulfilled
its obligations under this Servicing Agreement in all
material respects; and
(iv) I have disclosed to the Master Servicer all significant
deficiencies relating to the Servicer's compliance with the
minimum servicing standards in accordance with a review
conducted in compliance with the Uniform Single Attestation
Program for Mortgage Bankers or similar standard as set
forth in the Servicing Agreement.
For the avoidance of doubt, the above supercedes
any references to Exhibit 16 in Section 15 of the Sale and
Servicing Agreement. In the event that such reporting is
required on any date other than March 10th, then the Master
Servicer shall provide at least 30 days prior notice to the
Servicer.
(c) Subsection 13.01 (b) of the Sale and Servicing Agreement is
hereby amended and restated in its entirety as follows:
"failure by the Servicer to duly observe or perform, in any material
respect, any other covenants, obligations or agreements of the
Servicer as set forth in this Agreement (except as provided in
Subsection 34.07) which failure continues unremedied for a period of
sixty (60) days (or, in the case of (i) the annual statement of
compliance required under Subsection 11.19, (ii) the annual
independent public accountants' servicing report or attestation
required under Subsection 11.20, or (iii) the certification
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required under Section 15 in the form of Exhibit 16, five (5) days)
after the date on which written notice of such failure, requiring the
same to be remedied, shall have been given to the Servicer by the
Purchaser;"
(d) Section 14.02 of the Sale and Servicing Agreement is hereby
deleted.
(e) Subsection 34.03(d) of the Sale and Servicing Agreement is hereby
amended and restated in its entirety as follows:
"For the purpose of satisfying its reporting obligation under the
Exchange Act with respect to any class of asset-backed securities,
the Seller shall (or shall cause each Subservicer and Third-Party
Originator to) (i) promptly notify the Purchaser and any Depositor in
writing of (A) any material litigation or governmental proceedings
pending against the Seller, any Subservicer or any Third-Party
Originator, (B) any affiliations or relationships that develop
following the closing date of a Securitization Transaction between
the Seller, any Subservicer or any Third-Party Originator and any of
the parties specified in clause (D) of paragraph (a) of this Section
(and any other parties identified in writing by the requesting party)
with respect to such Securitization Transaction, (C) any Event of
Default under the terms of this Agreement or any Reconstitution
Agreement, (D) any merger, consolidation or sale of substantially all
of the assets of the Company, and (E) the Company's entry into an
agreement with a Subservicer to perform or assist in the performance
of any of the Company's obligations under this Agreement or any
Reconstitution Agreement and (ii) provide to the Purchaser and any
Depositor a description of such proceedings, affiliations or
relationships.
(f) Subsection 34.03(f) of the Sale and Servicing Agreement is hereby
amended and restated in its entirety as follows:
"In addition to such information as the Seller, as servicer, is
obligated to provide pursuant to other provisions of this Agreement,
if so requested by the Purchaser or any Depositor, the Seller shall
provide such information regarding the performance or servicing of
the Mortgage Loans as is reasonably required by the Purchaser or any
Depositor to permit the Purchaser or such Depositor to comply with
the provisions of Regulation AB relating to Static Pool Information
regarding the performance of the Mortgage Loans on the basis of the
Purchaser's or such Depositor's reasonable, good faith interpretation
of the requirements of Item 1105(a)(1)-(3) of Regulation AB
(including without limitation as to the format and content of such
Static Pool Information). Such information shall be provided
concurrently with the monthly reports otherwise required to be
delivered by the Servicer under this Agreement commencing with the
first such report due in connection with the applicable
Securitization Transaction."
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(g) The following paragraph is hereby incorporated into the Sale and
Servicing Agreement as new Subsections 34.03(g) and (h):
"(g) In addition to such information as the Company, as servicer, is
obligated to provide pursuant to other provisions of this Agreement,
not later than ten days prior to the deadline for the filing of any
distribution report on Form 10-D in respect of any Securitization
Transaction that includes any of the Mortgage Loans serviced by the
Company or any Subservicer, the Company or such Subservicer, as
applicable, shall, to the extent the Company or such Subservicer has
knowledge, provide to the party responsible for filing such report
(including, if applicable, the Master Servicer) notice of the
occurrence of any of the following events along with all information,
data, and materials related thereto as may be required to be included
in the related distribution report on Form 10-D (as specified in the
provisions of Regulation AB referenced below):
(i) any material modifications, extensions or waivers of
pool asset terms, fees, penalties or payments during the
distribution period or that have cumulatively become
material over time (Item 1121(a)(11) of Regulation AB);
(ii) material breaches of pool asset representations or
warranties or transaction covenants (Item 1121(a)(12) of
Regulation AB); and
(iii) information regarding new asset-backed securities
issuances backed by the same pool assets, any pool asset
changes (such as, additions, substitutions or repurchases),
and any material changes in origination, underwriting or
other criteria for acquisition or selection of pool assets
(Item 1121(a)(14) of Regulation AB).
(h) The Company shall provide to the Purchaser, any Master Servicer
and any Depositor, evidence of the authorization of the person
signing any certification or statement, copies or other evidence of
Fidelity Bond Insurance and Errors and Omission Insurance policy,
financial information and reports, and such other information related
to the Company or any Subservicer or the Company or such
Subservicer's performance hereunder."
(h) Subsections 34.04 and 34.05 are hereby amended to delete the date
"March 10th" and replace with the date "March 1st".
(i) Subsection 34.05(a)(iv) is hereby amended and restated in its
entirety as follows:
"deliver, and cause each Subservicer and subcontractor described in
clause (iii) above to deliver, to the Purchaser, any Depositor and
any other Person
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that will be responsible for signing the certification (a "Sarbanes
Certification") required by Rules 13a-14(d) and 15d-14(d) under the
Exchange Act (pursuant to Section 302 of the ▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act of
2002) on behalf of an asset-backed issuer with respect to a
Securitization Transaction a certification, signed by an appropriate
officer of the Seller, in the form attached hereto as Exhibit 16."
(j) The penultimate sentence of Subsection 34.06(a) is hereby amended
and restated in its entirety as follows:
"The Seller shall cause any Subservicer used by the Seller (or by any
Subservicer) for the benefit of the Purchaser and any Depositor to
comply with the provisions of this Section and with Subsections
34.02, 34.03(c), (e), (g) and (h), 34.04, 34.05 and 34.07 of this
Agreement to the same extent as if such Subservicer were the Seller,
and to provide the information required with respect to such
Subservicer under Subsection 34.03(d) of this Agreement."
(k) The last two lines of Subsection 34.06(b) are hereby amended and
restated as follows:
"...assessment of compliance and attestation, and the other
certifications required to be delivered..."
(l) Subsection 34.07 is hereby amended and restated in its entirety
as follows:
"Subsection 34.07 Indemnification; Remedies.
(a) The Seller shall indemnify the Purchaser, each affiliate of the
Purchaser, and each of the following parties participating in a
Securitization Transaction: each sponsor and issuing entity; each
Person responsible for the preparation, execution or filing of any
report required to be filed with the Commission with respect to such
Securitization Transaction, or for execution of a certification
pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act
with respect to such Securitization Transaction; each broker dealer
acting as underwriter, placement agent or initial purchaser, each
Person who controls any of such parties or the Depositor (within the
meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act); and the respective present and former directors,
officers, employees and agents of each of the foregoing and of the
Depositor (each, an "Indemnified Party"), and shall hold each of them
harmless from and against any losses, damages, penalties, fines,
forfeitures, legal fees and expenses and related costs, judgments,
and any other costs, fees and expenses that any of them may sustain
arising out of or based upon:
(i)(A) any untrue statement of a material fact contained or
alleged to be contained in any information, report,
certification,
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accountants' letter or other material provided in written or
electronic form under this Section 34 by or on behalf of the
Seller, or provided under this Section 34 by or on behalf of
any Subservicer, Subcontractor or Third-Party Originator
(collectively, the "Seller Information"), or a. the omission
or alleged omission to state in the Seller Information a
material fact required to be stated in the Seller
Information or necessary in order to make the statements
therein, in the light of the circumstances under which they
were made, not misleading; provided, by way of
clarification, that clause (B) of this paragraph shall be
construed solely by reference to the Seller Information and
not to any other information communicated in connection with
a sale or purchase of securities, without regard to whether
the Seller Information or any portion thereof is presented
together with or separately from such other information;
(ii) any failure by the Seller, any Subservicer, any
Subcontractor or any Third-Party Originator to deliver any
information, report, certification, accountants' letter or
other material when and as required, under this Section 34,
including any failure by the Seller to identify pursuant to
Subsection 34.06(b) any Subcontractor "participating in the
servicing function" within the meaning of Item 1122 of
Regulation AB;
(iii) any breach by the Seller of a representation or
warranty set forth in Subsection 34.02(a) or in a writing
furnished pursuant to Subsection 34.02(b) and made as of a
date prior to the closing date of the related Securitization
Transaction, to the extent that such breach is not cured by
such closing date, or any breach by the Seller of a
representation or warranty in a writing furnished pursuant
to Subsection 34.02(b) to the extent made as of a date
subsequent to such closing date; or
(iv) the negligence, bad faith or willful misconduct of the
Seller in connection with its obligation to deliver the
certifications and reports required by Section 34.03,
Section 34.04 or Section 34.05 hereof.
If the indemnification provided for herein is unavailable or
insufficient to hold harmless an Indemnified Party, then the Seller
agrees that it shall contribute to the amount paid or payable by such
Indemnified Party as a result of any claims, losses, damages or
liabilities incurred by such Indemnified Party in such proportion as
is appropriate to reflect the relative fault of such Indemnified
Party on the one hand and the Seller on the other.
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In the case of any failure of performance described in clause (a)(ii)
of this Section, the Seller shall promptly reimburse the Purchaser,
any Depositor, as applicable, and each Person responsible for the
preparation, execution or filing of any report required to be filed
with the Commission with respect to such Securitization Transaction,
or for execution of a certification pursuant to Rule 13a-14(d) or
Rule 15d-14(d) under the Exchange Act with respect to such
Securitization Transaction, for all costs reasonably incurred by each
such party in order to obtain the information, report, certification,
accountants' letter or other material not delivered as required by
the Seller, any Subservicer, any Subcontractor or any Third-Party
Originator.
This indemnification shall survive the termination of this Agreement
or the termination of any party to this Agreement.
(b) (i) Any failure by the Seller, any Subservicer, any
Subcontractor or any Third-Party Originator to deliver any
information, report, certification, accountants' letter or
other material when and as required under this Section 34,
or any breach by the Seller of a representation or warranty
set forth in Subsection 34.02(a) or in a writing furnished
pursuant to Subsection 34.02(b) and made as of a date prior
to the closing date of the related Securitization
Transaction, to the extent that such breach is not cured by
such closing date, or any breach by the Seller of a
representation or warranty in a writing furnished pursuant
to Subsection 34.02(b) to the extent made as of a date
subsequent to such closing date, shall, except as provided
in clause (ii) of this paragraph, immediately and
automatically, without notice or grace period, constitute an
Event of Default with respect to the Seller under this
Agreement and any applicable Reconstitution Agreement, and
shall entitle the Purchaser or Depositor, as applicable, in
its sole discretion to terminate the rights and obligations
of the Seller as servicer under this Agreement and/or any
applicable Reconstitution Agreement without payment
(notwithstanding anything in this Agreement or any
applicable Reconstitution Agreement to the contrary) of any
compensation to the Seller (and if the Seller is servicing
any of the Mortgage Loans in a Securitization Transaction,
shall entitle the Purchaser or Depositor, as applicable, in
its sole discretion to appoint a successor servicer
reasonably acceptable to any Master Servicer for such
Securitization Transaction); provided that to the extent
that any provision of this Agreement and/or any applicable
Reconstitution Agreement expressly provides for the survival
of certain rights or obligations following termination of
the Seller as servicer, such provision shall be given
effect.
(ii) Any failure by the Seller, any Subservicer or any
Subcontractor to deliver any information, report,
certification or
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accountants' letter when and as required under Subsection
34.04 or 34.05, including (except as provided below) any
failure by the Seller to identify pursuant to Subsection
34.06(b) any Subcontractor "participating in the servicing
function" within the meaning of Item 1122 of Regulation AB,
which continues unremedied for ten calendar days after the
date on which such information, report, certification or
accountants' letter was required to be delivered shall
constitute an Event of Default with respect to the Seller
under this Agreement and any applicable Reconstitution
Agreement, and shall entitle the Purchaser or Depositor, as
applicable, in its sole discretion to terminate the rights
and obligations of the Seller as servicer under this
Agreement and/or any applicable Reconstitution Agreement
without payment (notwithstanding anything in this Agreement
to the contrary) of any compensation to the Seller; provided
that to the extent that any provision of this Agreement
and/or any applicable Reconstitution Agreement expressly
provides for the survival of certain rights or obligations
following termination of the Seller as servicer, such
provision shall be given effect.
Neither the Purchaser nor any Depositor shall be entitled to
terminate the rights and obligations of the Seller pursuant
to this subparagraph (b)(ii) if a failure of the Seller to
identify a Subcontractor "participating in the servicing
function" within the meaning of Item 1122 of Regulation AB
was attributable solely to the role or functions of such
Subcontractor with respect to mortgage loans other than the
Mortgage Loans.
(iii) The Seller shall promptly reimburse the Purchaser (or
any designee of the Purchaser, such as a master servicer)
and any Depositor, as applicable, for all reasonable
expenses incurred by the Purchaser (or such designee) or
such Depositor, as such are incurred, in connection with the
termination of the Seller as servicer and the transfer of
servicing of the Mortgage Loans to a successor servicer. The
provisions of this paragraph shall not limit whatever rights
the Purchaser or any Depositor may have under other
provisions of this Agreement and/or any applicable
Reconstitution Agreement or otherwise, whether in equity or
at law, such as an action for damages, specific performance
or injunctive relief."
(m) The following paragraph is hereby incorporated into the Sale and
Servicing Agreement as new Section 35:
"Third Party Beneficiary. For purposes of this Agreement, including
but not limited to Subsections 11.19 and 11.20, any Master Servicer shall
be considered a third
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party beneficiary to this Agreement entitled to all the rights and
benefits accruing to any Master Servicer herein as if it were a direct
party to this Agreement."
(n) Exhibit 9 to the Sale and Servicing Agreement is hereby replaced
in its entirety with the Amended and Restated Exhibit 9 attached to this
Agreement as Exhibit II.
(o) Exhibits 16 to the Sale and Servicing Agreement is hereby
replaced in its entirety with Exhibit A-1 to this Agreement.
Notices
7. Any notices or other communications permitted or required under
the Sale and Servicing Agreement to be made to the Company, Assignor,
Assignee, and the Trustee shall be made in accordance with the terms of the
Sale and Servicing Agreement and shall be sent to the Assignee and Trustee as
follows:
In the case of Assignor:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Mortgage Capital Inc.
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Mortgage Loan Trust 2006-1AR
With a copy to:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated
▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: General Counsel's Office
In the case of Assignee:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Mortgage Loan Trust 2006-1AR
12
In the case of the Trustee:
LaSalle Bank National Association
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Global Securities and Trust Services MSM 2006-1AR
In the case of the Company, as Seller:
The Hemisphere National Bank
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
With a copy to:
The Hemisphere National Bank
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇, Esq.
In the case of the Company, as Servicer:
The Hemisphere National Bank
▇▇▇▇ ▇. ▇. ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇▇▇
With copies to:
The Hemisphere National Bank
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
The Hemisphere National Bank
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇, Esq.
or to such other address as may hereafter be furnished by Assignee and the
Trustee to the parties in accordance with the provisions of the Sale and
Servicing Agreement.
Miscellaneous
8. This Agreement shall be construed in accordance with accordance
with the laws of the State of New York to the extent such laws are not
preempted by federal law, without
13
giving effect to the conflict of laws provisions of the laws of the State of
New York, and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance therewith.
9. No term or provision of this Agreement may be waived or modified
unless such waiver or modification is in writing and signed by the party
against whom such waiver or modification is sought to be enforced, with the
prior written consent of the Master Servicer and the Trustee.
10. This Agreement shall inure to the benefit of the successors and
assigns of the parties hereto, including the Master Servicer and the Trust
(including the Trustee acting on the Trust's behalf). Any entity into which
Assignor, Assignee, Master Servicer or Company may be merged or consolidated
shall, without the requirement for any further writing, be deemed Assignor,
Assignee, Master Servicer or Company, respectively, hereunder.
11. Each of this Agreement and the Sale and Servicing Agreement shall
survive the conveyance of the Mortgage Loans and the assignment of the Sale
and Servicing Agreement (to the extent assigned hereunder) by Assignor to
Assignee and by Assignee to the Trust and nothing contained herein shall
supersede or amend the terms of the Sale and Servicing Agreement.
12. This Agreement may be executed simultaneously in any number of
counterparts. Each counterpart shall be deemed to be an original and all such
counterparts shall constitute one and the same instrument.
13. In the event that any provision of this Agreement conflicts with
any provision of the Sale and Servicing Agreement with respect to the Mortgage
Loans, the terms of this Agreement shall control.
14. Capitalized terms used in this Agreement (including the exhibits
hereto) but not defined in this Agreement shall have the meanings given to
such terms in the Sale and Servicing Agreement or, if not defined therein, in
the Pooling and Servicing Agreement. In the event that the definition of a
capitalized term in the Sale and Servicing Agreement conflicts with the
definition of that capitalized term in the Pooling and Servicing Agreement,
the definition in the Pooling and Servicing Agreement shall control.
14
IN WITNESS WHEREOF, the parties hereto have executed this Assignment
the day and year first above written.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ MORTGAGE CAPITAL INC.
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Executive Director
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CAPITAL I INC.
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Vice President
THE HEMISPHERE NATIONAL BANK
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Title: President
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
Title: Senior Managing Director
15
Acknowledged and Agreed:
▇▇▇▇▇ FARGO BANK, NATIONAL
ASSOCIATION, as Master Servicer
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Assistant Vice President
LASALLE BANK NATIONAL ASSOCIATION,
as Trustee of ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Mortgage Loan Trust 2006-1AR
By: /s/ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
------------------------------------
Name: ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Title: Assistant Vice President
16
EXHIBIT I
Mortgage Loan Schedule
[see Schedule A to Pooling and Servicing Agreement]
EXH. I-1
Exhibit IIA: Standard File Layout - Delinquency Reporting
-------------------------------------- -------------------------------------------------- --------- -------------
Column/Header Name Description Decimal Format
Comment
-------------------------------------- -------------------------------------------------- --------- -------------
SERVICER_LOAN_NBR A unique number assigned to a loan by the
Servicer. This may be different than the
LOAN_NBR
-------------------------------------- -------------------------------------------------- --------- -------------
LOAN_NBR A unique identifier assigned to each loan by the
originator.
-------------------------------------- -------------------------------------------------- --------- -------------
CLIENT_NBR Servicer Client Number
-------------------------------------- -------------------------------------------------- --------- -------------
SERV_INVESTOR_NBR Contains a unique number as assigned by
an external servicer to identify a
group of loans in their system.
-------------------------------------- -------------------------------------------------- --------- -------------
BORROWER_FIRST_NAME First Name of the Borrower.
-------------------------------------- -------------------------------------------------- --------- -------------
BORROWER_LAST_NAME Last name of the borrower.
-------------------------------------- -------------------------------------------------- --------- -------------
▇▇▇▇_▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Name and Number of Property
-------------------------------------- -------------------------------------------------- --------- -------------
PROP_STATE The state where the property located.
-------------------------------------- -------------------------------------------------- --------- -------------
PROP_ZIP Zip code where the property is located.
-------------------------------------- -------------------------------------------------- --------- -------------
BORR_NEXT_PAY_DUE_DATE The date that the borrower's next
payment is due MM/DD/YYYY to the
servicer at the end of processing
cycle, as reported by Servicer.
-------------------------------------- -------------------------------------------------- --------- -------------
LOAN_TYPE Loan Type (i.e. FHA, VA, Conv)
-------------------------------------- -------------------------------------------------- --------- -------------
BANKRUPTCY_FILED_DATE The date a particular bankruptcy claim was filed. MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
BANKRUPTCY_CHAPTER_CODE The chapter under which the bankruptcy was filed.
-------------------------------------- -------------------------------------------------- --------- -------------
BANKRUPTCY_CASE_NBR The case number assigned by the court to the
bankruptcy filing.
-------------------------------------- -------------------------------------------------- --------- -------------
POST_PETITION_DUE_DATE The payment due date once the bankruptcy has MM/DD/YYYY
been approved by the courts
-------------------------------------- -------------------------------------------------- --------- -------------
BANKRUPTCY_DCHRG_DISM_DATE The Date The Loan Is Removed From Bankruptcy. MM/DD/YYYY
Either by Dismissal, Discharged and/or a Motion
For Relief Was Granted.
-------------------------------------- -------------------------------------------------- --------- -------------
LOSS_MIT_APPR_DATE The Date The Loss Mitigation Was Approved By The MM/DD/YYYY
Servicer
-------------------------------------- -------------------------------------------------- --------- -------------
LOSS_MIT_TYPE The Type Of Loss Mitigation Approved For A Loan
Such As;
-------------------------------------- -------------------------------------------------- --------- -------------
LOSS_MIT_EST_COMP_DATE The Date The Loss Mitigation /Plan Is Scheduled MM/DD/YYYY
To End/Close
-------------------------------------- -------------------------------------------------- --------- -------------
LOSS_MIT_ACT_COMP_DATE The Date The Loss Mitigation Is Actually MM/DD/YYYY
Completed
-------------------------------------- -------------------------------------------------- --------- -------------
FRCLSR_APPROVED_DATE The date DA Admin sends a letter to the
servicer MM/DD/YYYY with instructions
to begin foreclosure proceedings.
-------------------------------------- -------------------------------------------------- --------- -------------
ATTORNEY_REFERRAL_DATE Date File Was Referred To Attorney to Pursue MM/DD/YYYY
Foreclosure
-------------------------------------- -------------------------------------------------- --------- -------------
FIRST_LEGAL_DATE Notice of 1st legal filed by an Attorney in a MM/DD/YYYY
Foreclosure Action
-------------------------------------- -------------------------------------------------- --------- -------------
FRCLSR_SALE_EXPECTED_DATE The date by which a foreclosure sale is expected MM/DD/YYYY
to occur.
-------------------------------------- -------------------------------------------------- --------- -------------
FRCLSR_SALE_DATE The actual date of the foreclosure sale. MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
FRCLSR_SALE_AMT The amount a property sold for at the 2 No commas(,)
foreclosure sale. or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
EVICTION_START_DATE The date the servicer initiates eviction of the MM/DD/YYYY
borrower.
-------------------------------------- -------------------------------------------------- --------- -------------
EVICTION_COMPLETED_DATE The date the court revokes legal
possession of MM/DD/YYYY the property
from the borrower.
-------------------------------------- -------------------------------------------------- --------- -------------
LIST_PRICE The price at which an REO property is marketed. 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
LIST_DATE The date an REO property is listed at a MM/DD/YYYY
particular price.
-------------------------------------- -------------------------------------------------- --------- -------------
OFFER_AMT The dollar value of an offer for an REO property. 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
OFFER_DATE_TIME The date an offer is received by DA Admin or by MM/DD/YYYY
the Servicer.
-------------------------------------- -------------------------------------------------- --------- -------------
REO_CLOSING_DATE The date the REO sale of the property is MM/DD/YYYY
scheduled to close.
-------------------------------------- -------------------------------------------------- --------- -------------
REO_ACTUAL_CLOSING_DATE Actual Date Of REO Sale MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
OCCUPANT_CODE Classification of how the property is occupied.
-------------------------------------- -------------------------------------------------- --------- -------------
PROP_CONDITION_CODE A code that indicates the condition of the
property.
-------------------------------------- -------------------------------------------------- --------- -------------
-------------------------------------- -------------------------------------------------- --------- -------------
PROP_INSPECTION_DATE The date a property inspection is performed. MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
APPRAISAL_DATE The date the appraisal was done. MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
CURR_PROP_VAL The current "as is" value of the property based 2
on brokers price opinion or appraisal.
-------------------------------------- -------------------------------------------------- --------- -------------
REPAIRED_PROP_VAL The amount the property would be worth if 2
repairs are completed pursuant to a broker's
price opinion or appraisal.
-------------------------------------- -------------------------------------------------- --------- -------------
If applicable:
--------------
-------------------------------------- -------------------------------------------------- --------- -------------
DELINQ_STATUS_CODE FNMA Code Describing Status of Loan
-------------------------------------- -------------------------------------------------- --------- -------------
DELINQ_REASON_CODE The circumstances which caused a
borrower to stop paying on a loan. Code
indicates the reason why the loan is in
default for this cycle.
-------------------------------------- -------------------------------------------------- --------- -------------
MI_CLAIM_FILED_DATE Date Mortgage Insurance Claim Was Filed With MM/DD/YYYY
Mortgage Insurance Company.
-------------------------------------- -------------------------------------------------- --------- -------------
MI_CLAIM_AMT Amount of Mortgage Insurance Claim Filed No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
MI_CLAIM_PAID_DATE Date Mortgage Insurance Company Disbursed Claim MM/DD/YYYY
Payment
-------------------------------------- -------------------------------------------------- --------- -------------
MI_CLAIM_AMT_PAID Amount Mortgage Insurance Company Paid On Claim 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
POOL_CLAIM_FILED_DATE Date Claim Was Filed With Pool Insurance Company MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
POOL_CLAIM_AMT Amount of Claim Filed With Pool Insurance Company 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
POOL_CLAIM_PAID_DATE Date Claim Was Settled and The Check Was Issued MM/DD/YYYY
By The Pool Insurer
-------------------------------------- -------------------------------------------------- --------- -------------
POOL_CLAIM_AMT_PAID Amount Paid On Claim By Pool Insurance Company 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
FHA_PART_A_CLAIM_FILED_DATE Date FHA Part A Claim Was Filed With HUD MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
FHA_PART_A_CLAIM_AMT Amount of FHA Part A Claim Filed 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
FHA_PART_A_CLAIM_PAID_DATE Date HUD Disbursed Part A Claim Payment MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
FHA_PART_A_CLAIM_PAID_AMT Amount HUD Paid on Part A Claim 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
FHA_PART_B_CLAIM_FILED_DATE Date FHA Part B Claim Was Filed With HUD MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
FHA_PART_B_CLAIM_AMT Amount of FHA Part B Claim Filed 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
FHA_PART_B_CLAIM_PAID_DATE Date HUD Disbursed Part B Claim Payment MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
FHA_PART_B_CLAIM_PAID_AMT Amount HUD Paid on Part B Claim 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
VA_CLAIM_FILED_DATE Date VA Claim Was Filed With the Veterans Admin MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
VA_CLAIM_PAID_DATE Date Veterans Admin. Disbursed VA Claim Payment MM/DD/YYYY
-------------------------------------- -------------------------------------------------- --------- -------------
VA_CLAIM_PAID_AMT Amount Veterans Admin. Paid on VA Claim 2 No commas(,)
or dollar
signs ($)
-------------------------------------- -------------------------------------------------- --------- -------------
2
Exhibit IIB: Standard File Codes - Delinquency Reporting
The Loss Mit Type field should show the approved Loss Mitigation Code as
follows:
o ASUM- Approved Assumption
o BAP- Borrower Assistance Program
o CO- Charge Off
o DIL- Deed-in-Lieu
o FFA- Formal Forbearance Agreement
o MOD- Loan Modification
o PRE- Pre-Sale
o SS- Short Sale
o MISC- Anything else approved by the PMI or Pool Insurer
NOTE: ▇▇▇▇▇ Fargo Bank will accept alternative Loss Mitigation Types to those
above, provided that they are consistent with industry standards. If Loss
Mitigation Types other than those above are used, the Servicer must supply
▇▇▇▇▇ Fargo Bank with a description of each of the Loss Mitigation Types prior
to sending the file.
The Occupant Code field should show the current status of the property code as
follows:
o Mortgagor
o Tenant
o Unknown
o Vacant
The Property Condition field should show the last reported condition of the
property as follows:
o Damaged
o Excellent
o Fair
o Gone
o Good
o Poor
o Special Hazard
o Unknown
The FNMA Delinquent Reason Code field should show the Reason for Delinquency
as follows:
-------------------- ----------------------------------------------
Delinquency Code Delinquency Description
-------------------- ----------------------------------------------
001 FNMA-Death of principal mortgagor
-------------------- ----------------------------------------------
002 FNMA-Illness of principal mortgagor
-------------------- ----------------------------------------------
003 FNMA-Illness of mortgagor's family member
-------------------- ----------------------------------------------
004 FNMA-Death of mortgagor's family member
-------------------- ----------------------------------------------
005 FNMA-Marital difficulties
-------------------- ----------------------------------------------
006 FNMA-Curtailment of income
-------------------- ----------------------------------------------
007 FNMA-Excessive Obligation
-------------------- ----------------------------------------------
008 FNMA-Abandonment of property
-------------------- ----------------------------------------------
009 FNMA-Distant employee transfer
-------------------- ----------------------------------------------
3
-------------------- ----------------------------------------------
011 FNMA-Property problem
-------------------- ----------------------------------------------
012 FNMA-Inability to sell property
-------------------- ----------------------------------------------
013 FNMA-Inability to rent property
-------------------- ----------------------------------------------
014 FNMA-Military Service
-------------------- ----------------------------------------------
015 FNMA-Other
-------------------- ----------------------------------------------
016 FNMA-Unemployment
-------------------- ----------------------------------------------
017 FNMA-Business failure
-------------------- ----------------------------------------------
019 FNMA-Casualty loss
-------------------- ----------------------------------------------
022 FNMA-Energy environment costs
-------------------- ----------------------------------------------
023 FNMA-Servicing problems
-------------------- ----------------------------------------------
026 FNMA-Payment adjustment
-------------------- ----------------------------------------------
027 FNMA-Payment dispute
-------------------- ----------------------------------------------
029 FNMA-Transfer of ownership pending
-------------------- ----------------------------------------------
030 FNMA-Fraud
-------------------- ----------------------------------------------
031 FNMA-Unable to contact borrower
-------------------- ----------------------------------------------
INC FNMA-Incarceration
-------------------- ----------------------------------------------
The FNMA Delinquent Status Code field should show the Status of Default as
follows:
-------------------- ---------------------------------------------
Status Code Status Description
-------------------- ---------------------------------------------
09 Forbearance
-------------------- ---------------------------------------------
17 Pre-foreclosure Sale Closing Plan Accepted
-------------------- ---------------------------------------------
24 Government Seizure
-------------------- ---------------------------------------------
26 Refinance
-------------------- ---------------------------------------------
27 Assumption
-------------------- ---------------------------------------------
28 Modification
-------------------- ---------------------------------------------
29 Charge-Off
-------------------- ---------------------------------------------
30 Third Party Sale
-------------------- ---------------------------------------------
31 Probate
-------------------- ---------------------------------------------
32 Military Indulgence
-------------------- ---------------------------------------------
43 Foreclosure Started
-------------------- ---------------------------------------------
44 Deed-in-Lieu Started
-------------------- ---------------------------------------------
49 Assignment Completed
-------------------- ---------------------------------------------
61 Second Lien Considerations
-------------------- ---------------------------------------------
62 Veteran's Affairs-No Bid
-------------------- ---------------------------------------------
63 Veteran's Affairs-Refund
-------------------- ---------------------------------------------
64 Veteran's Affairs-Buydown
-------------------- ---------------------------------------------
65 Chapter 7 Bankruptcy
-------------------- ---------------------------------------------
66 Chapter 11 Bankruptcy
-------------------- ---------------------------------------------
67 Chapter 13 Bankruptcy
-------------------- ---------------------------------------------
4
Exhibit IIC: Standard File Layout - Master Servicing
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
Column Name Description Decimal Format Comment Max
Size
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SER_INVESTOR_NBR A value assigned by the Servicer to Text up to 10 digits 20
define a group of loans.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
LOAN_NBR A unique identifier assigned to each Text up to 10 digits 10
loan by the investor.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SERVICER_LOAN_NBR A unique number assigned to a loan by Text up to 10 digits 10
the Servicer. This may be different
than the LOAN_NBR.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
BORROWER_NAME The borrower name as received in the Maximum length of 30 (Last, First) 30
file. It is not separated by first and
last name.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SCHED_PAY_AMT Scheduled monthly principal and 2 No commas(,) or dollar signs ($) 11
scheduled interest payment that a
borrower is expected to pay, P&I
constant.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
NOTE_INT_RATE The loan interest rate as reported by 4 Max length of 6 6
the Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
NET_INT_RATE The loan gross interest rate less the 4 Max length of 6 6
service fee rate as reported by the
Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SERV_FEE_RATE The servicer's fee rate for a loan as 4 Max length of 6 6
reported by the Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SERV_FEE_AMT The servicer's fee amount for a loan as 2 No commas(,) or dollar signs ($) 11
reported by the Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
NEW_PAY_AMT The new loan payment amount as reported 2 No commas(,) or dollar signs ($) 11
by the Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
NEW_LOAN_RATE The new loan rate as reported by the 4 Max length of 6 6
Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
ARM_INDEX_RATE The index the Servicer is using to 4 Max length of 6 6
calculate a forecasted rate.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
ACTL_BEG_PRIN_BAL The borrower's actual principal balance 2 No commas(,) or dollar signs ($) 11
at the beginning of the processing cycle.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
ACTL_END_PRIN_BAL The borrower's actual principal balance 2 No commas(,) or dollar signs ($) 11
at the end of the processing cycle.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
BORR_NEXT_PAY_DUE_DATE The date at the end of processing cycle MM/DD/YYYY 10
that the borrower's next payment is due
to the Servicer, as reported by Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SERV_CURT_AMT_1 The first curtailment amount to be 2 No commas(,) or dollar signs ($) 11
applied.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SERV_CURT_DATE_1 The curtailment date associated with the MM/DD/YYYY 10
first curtailment amount.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
CURT_ADJ_ AMT_1 The curtailment interest on the first 2 No commas(,) or dollar signs ($) 11
curtailment amount, if applicable.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SERV_CURT_AMT_2 The second curtailment amount to be 2 No commas(,) or dollar signs ($) 11
applied.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SERV_CURT_DATE_2 The curtailment date associated with the MM/DD/YYYY 10
second curtailment amount.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
CURT_ADJ_ AMT_2 The curtailment interest on the second 2 No commas(,) or dollar signs ($) 11
curtailment amount, if applicable.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SERV_CURT_AMT_3 The third curtailment amount to be 2 No commas(,) or dollar signs ($) 11
applied.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SERV_CURT_DATE_3 The curtailment date associated with the MM/DD/YYYY 10
third curtailment amount.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
CURT_ADJ_AMT_3 The curtailment interest on the third 2 No commas(,) or dollar signs ($) 11
curtailment amount, if applicable.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
PIF_AMT The loan "paid in full" amount as 2 No commas(,) or dollar signs ($) 11
reported by the Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
PIF_DATE The paid in full date as reported by the MM/DD/YYYY 10
Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
ACTION_CODE The standard FNMA numeric code used to Action Code Key: 15=Bankruptcy, 2
indicate the default/delinquent status of a 30=Foreclosure, , 60=PIF,
particular loan. 63=Substitution,
65=Repurchase,70=REO
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
INT_ADJ_AMT The amount of the interest adjustment as 2 No commas(,) or dollar signs ($) 11
reported by the Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SOLDIER_SAILOR_ADJ_AMT The Soldier and Sailor Adjustment 2 No commas(,) or dollar signs ($) 11
amount, if applicable.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
NON_ADV_LOAN_AMT The Non Recoverable Loan Amount, if 2 No commas(,) or dollar signs ($) 11
applicable.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
LOAN_LOSS_AMT The amount the Servicer is passing as a 2 No commas(,) or dollar signs ($) 11
loss, if applicable.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SCHED_BEG_PRIN_BAL The scheduled outstanding principal 2 No commas(,) or dollar signs ($) 11
amount due at the beginning of the cycle
date to be passed through to investors.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SCHED_END_PRIN_BAL The scheduled principal balance due to 2 No commas(,) or dollar signs ($) 11
investors at the end of a processing
cycle.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SCHED_PRIN_AMT The scheduled principal amount as 2 No commas(,) or dollar signs ($) 11
reported by the Servicer for the current
cycle -- only applicable for Scheduled/
Scheduled Loans.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
SCHED_NET_INT The scheduled gross interest amount less 2 No commas(,) or dollar signs ($) 11
the service fee amount for the current
cycle as reported by the Servicer -- only
applicable for Scheduled/Scheduled Loans.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
ACTL_PRIN_AMT The actual principal amount collected by 2 No commas(,) or dollar signs ($) 11
the Servicer for the current reporting
cycle -- only applicable for
Actual/Actual Loans.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
ACTL_NET_INT The actual gross interest amount less 2 No commas(,) or dollar signs ($) 11
the service fee amount for the current
reporting cycle as reported by the Servicer
-- only applicable for Actual/Actual Loans.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
PREPAY_PENALTY_ AMT The penalty amount received when a 2 No commas(,) or dollar signs ($) 11
borrower prepays on his loan as reported
by the Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
2
PREPAY_PENALTY_ WAIVED The prepayment penalty amount for the 2 No commas(,) or dollar signs ($) 11
loan waived by the servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
MOD_DATE The Effective Payment Date of the MM/DD/YYYY 10
Modification for the loan.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
MOD_TYPE The Modification Type. Varchar - value can be alpha or 30
numeric
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
DELINQ_P&I_ADVANCE_AMT The current outstanding principal and 2 No commas(,) or dollar signs ($) 11
interest advances made by Servicer.
------------------------------- ------------------------------------------ ------- ------------------------------------ -------
3
Exhibit IID : Calculation of Realized Loss/Gain Form 332- Instruction Sheet
NOTE: Do not net or combine items. Show all expenses individually and
all credits as separate line items. Claim packages are due on the
remittance report date. Late submissions may result in claims not
being passed until the following month. The Servicer is responsible to
remit all funds pending loss approval and /or resolution of any
disputed items.
1.
2. The numbers on the 332 form correspond with the numbers listed
below.
Liquidation and Acquisition Expenses:
1. The Actual Unpaid Principal Balance of the Mortgage Loan. For
documentation, an Amortization Schedule from date of default
through liquidation breaking out the net interest and servicing
fees advanced is required.
2. The Total Interest Due less the aggregate amount of servicing
fee that would have been earned if all delinquent payments had
been made as agreed. For documentation, an Amortization Schedule
from date of default through liquidation breaking out the net
interest and servicing fees advanced is required.
3. Accrued Servicing Fees based upon the Scheduled Principal
Balance of the Mortgage Loan as calculated on a monthly basis.
For documentation, an Amortization Schedule from date of default
through liquidation breaking out the net interest and servicing
fees advanced is required.
4-12. Complete as applicable. Required documentation:
* For taxes and insurance advances - see page 2 of 332 form -
breakdown required showing period of coverage, base tax,
interest, penalty. Advances prior to default require evidence of
servicer efforts to recover advances.
* For escrow advances - complete payment history (to
calculate advances from last positive escrow balance forward)
* Other expenses - copies of corporate advance history showing
all payments
* REO repairs > $1500 require explanation
* REO repairs >$3000 require evidence of at least 2 bids.
* Short Sale or Charge Off require P&L supporting the decision
and WFB's approved Officer Certificate * Unusual or extraordinary
items may require further documentation.
13. The total of lines 1 through 12. 3. Credits:
14-21.Complete as applicable. Required documentation:
* Copy of the HUD 1 from the REO sale. If a 3rd Party Sale,
bid instructions and Escrow Agent / Attorney
Letter of Proceeds Breakdown.
* Copy of EOB for any MI or gov't guarantee
* All other credits need to be clearly defined on the 332 form
22. The total of lines 14 through 21.
Please Note: For HUD/VA loans, use line (18a) for Part A/Initial
proceeds and line (18b) for Part B/Supplemental
proceeds.
EXH. II 1
Total Realized Loss (or Amount of Any Gain)
-------------------------------------------
23. The total derived from subtracting line 22 from 13. If the
amount represents a realized gain, show the amount in
parenthesis ( ).
EXH. II 2
Exhibit IIE: Calculation of Realized Loss/Gain Form 332
Prepared by: __________________ Date: _______________
Phone: ______________________ Email Address:_____________________
---------------------- ------------------------ -----------------------------
Servicer Loan No. Servicer Name Servicer Address
---------------------- ------------------------ -----------------------------
▇▇▇▇▇ FARGO BANK, N.A. Loan No._____________________________
Borrower's Name: ___________________________________________________
Property Address: __________________________________________________
Liquidation Type: REO Sale 3rd Party Sale Short Sale Charge Off
Was this loan granted a Bankruptcy deficiency or cramdown Yes No
If "Yes", provide deficiency or cramdown amount __________________________________
Liquidation and Acquisition Expenses:
(1) Actual Unpaid Principal Balance of Mortgage Loan $______________ (1)
(2) Interest accrued at Net Rate ________________ (2)
(3) Accrued Servicing Fees ________________ (3)
(4) Attorney's Fees ________________ (4)
(5) Taxes (see page 2) ________________ (5)
(6) Property Maintenance ________________ (6)
(7) MI/Hazard Insurance Premiums (see page 2) ________________ (7)
(8) Utility Expenses ________________ (8)
(9) Appraisal/BPO ________________ (9)
(10) Property Inspections ________________ (10)
(11) FC Costs/Other Legal Expenses ________________ (11)
(12) Other (itemize) ________________ (12)
Cash for Keys__________________________ ________________ (12)
HOA/Condo Fees_________________________ ________________ (12)
_______________________________________ ________________ (12)
Total Expenses $_______________ (13)
Credits:
(14) Escrow Balance $_______________ (14)
(15) HIP Refund ________________ (15)
(16) Rental Receipts ________________ (16)
(17) Hazard Loss Proceeds ________________ (17)
(18) Primary Mortgage Insurance / Gov't Insurance ________________ (18a)
HUD Part A
HUD Part B ________________ (18b)
EXH. II-3
(19) Pool Insurance Proceeds ________________ (19)
(20) Proceeds from Sale of Acquired Property ________________ (20)
(21) Other (itemize) ________________ (21)
__________________________________________ ________________ (21)
Total Credits $_______________ (22)
Total Realized Loss (or Amount of Gain) $_______________ (23)
EXH. II-4
Escrow Disbursement Detail
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Type Date Paid Period of Total Paid Base Penalties Interest
(Tax /Ins.) Coverage Amount
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EXHIBIT A-1
FORM OF ANNUAL CERTIFICATION
Re: The [ ] agreement dated as of [ ], 200[ ] (the "Agreement"),
among [IDENTIFY PARTIES]
I, ________________________________, the _____________________ of Wachovia
Mortgage Corporation, certify to [the Purchaser], [the Depositor], and the
[Master Servicer] [Securities Administrator] [Trustee], and their officers,
with the knowledge and intent that they will rely upon this certification,
that:
(1) I have reviewed the servicer compliance statement of the Company
provided in accordance with Item 1123 of Regulation AB (the "Compliance
Statement"), the report on assessment of the Company's compliance with the
servicing criteria set forth in Item 1122(d) of Regulation AB and identified
as the responsibility of the Company on Exhibit B to the Regulation AB
Compliance Addendum to the Agreement (the "Servicing Criteria"), provided in
accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act of 1934,
as amended (the "Exchange Act") and Item 1122 of Regulation AB (the "Servicing
Assessment"), the registered public accounting firm's attestation report
provided in accordance with Rules 13a-18 and 15d-18 under the Exchange Act and
Section 1122(b) of Regulation AB (the "Attestation Report"), and all servicing
reports, officer's certificates and other information relating to the
servicing of the Mortgage Loans by the Company during 200[ ] that were
delivered by the Company to the [Depositor] [Master Servicer] [Securities
Administrator] [Trustee] pursuant to the Agreement (collectively, the "Company
Servicing Information");
(2) Based on my knowledge, the Company Servicing Information, taken as a
whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in the light of
the circumstances under which such statements were made, not misleading with
respect to the period of time covered by the Company Servicing Information;
(3) Based on my knowledge, all of the Company Servicing Information
required to be provided by the Company under the Agreement has been provided
to the [Depositor] [Master Servicer] [Securities Administrator] [Trustee];
(4) I am responsible for reviewing the activities performed by the Company
as servicer under the Agreement, and based on my knowledge and the compliance
review conducted in preparing the Compliance Statement and except as disclosed
in the Compliance Statement, the Servicing Assessment or the Attestation
Report, the Company has fulfilled its obligations under the Agreement in all
material respects; and
(5) The Compliance Statement required to be delivered by the Company
pursuant to the Agreement, and the Servicing Assessment and Attestation Report
required to be provided by the Company and by any Subservicer and
Subcontractor pursuant to the Agreement, have been provided to the [Depositor]
[Master Servicer]. Any material instances of noncompliance described in such
reports have been disclosed to the [Depositor] [Master Servicer]. Any material
instance of noncompliance with the Servicing Criteria has been disclosed in
such reports.
EXH. A-1-1
Date: __________________________________________
By: __________________________________________
Name:
Title:
EXH. ▇-▇-▇
▇▇▇▇▇▇▇ ▇-▇
SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE
The assessment of compliance to be delivered by [the Company] [Name of
Subservicer] shall address, at a minimum, the criteria identified as below as
"Applicable Servicing Criteria";
-------------------------------------------------------------------------------------------------
Servicing Criteria Applicable
Servicing
Criteria
-------------------------------------------------------------------------------------------------
Reference Criteria
-------------------------------------------------------------------------------------------------
General Servicing Considerations
-------------------------------------------------------------------------------------------------
Policies and procedures are instituted to monitor any X
performance or other triggers and events of default in
1122(d)(1)(i) accordance with the transaction agreements.
-------------------------------------------------------------------------------------------------
If any material servicing activities are outsourced to X
third parties, policies and procedures are instituted to
monitor the third party's performance and compliance with
1122(d)(1)(ii) such servicing activities.
-------------------------------------------------------------------------------------------------
Any requirements in the transaction agreements to maintain
1122(d)(1)(iii) a back-up servicer for the mortgage loans are maintained.
-------------------------------------------------------------------------------------------------
A fidelity bond and errors and omissions policy is in X
effect on the party participating in the servicing function
throughout the reporting period in the amount of coverage
required by and otherwise in accordance with the terms of
1122(d)(1)(iv) the transaction agreements.
-------------------------------------------------------------------------------------------------
Cash Collection and Administration
-------------------------------------------------------------------------------------------------
Payments on mortgage loans are deposited into the X
appropriate custodial bank accounts and related bank
clearing accounts no more than two business days following
receipt, or such other number of days specified in the
1122(d)(2)(i) transaction agreements.
-------------------------------------------------------------------------------------------------
Disbursements made via wire transfer on behalf of an X
obligor or to an investor are made only by authorized
1122(d)(2)(ii) personnel.
-------------------------------------------------------------------------------------------------
Advances of funds or guarantees regarding collections, cash
X flows or distributions, and any interest or other fees
charged for such advances, are made, reviewed and approved
1122(d)(2)(iii) as specified in the transaction agreements.
-------------------------------------------------------------------------------------------------
The related accounts for the transaction, such as cash
reserve accounts or accounts established as a form of
overcollateralization, are separately maintained (e.g., X
with respect to commingling of cash) as set forth in the
1122(d)(2)(iv) transaction agreements.
-------------------------------------------------------------------------------------------------
EXH. B-1-1
-------------------------------------------------------------------------------------------------
Servicing Criteria Applicable
Servicing
Criteria
-------------------------------------------------------------------------------------------------
Reference Criteria
-------------------------------------------------------------------------------------------------
Each custodial account is maintained at a federally insured X
depository institution as set forth in the transaction
agreements. For purposes of this criterion, "federally
insured depository institution" with respect to a foreign
financial institution means a foreign financial institution
that meets the requirements of Rule 13k-1 (b)(1) of the
1122(d)(2)(v) Securities Exchange Act.
-------------------------------------------------------------------------------------------------
Unissued checks are safeguarded so as to prevent X
1122(d)(2)(vi) unauthorized access.
-------------------------------------------------------------------------------------------------
Reconciliations are prepared on a monthly basis for all X
asset-backed securities related bank accounts, including
custodial accounts and related bank clearing accounts.
These reconciliations are (A) mathematically accurate; (B)
prepared within 30 calendar days after the bank statement
cutoff date, or such other number of days specified in the
transaction agreements; (C) reviewed and approved by
someone other than the person who prepared the
reconciliation; and (D) contain explanations for reconciling
items. These reconciling items are resolved within 90
calendar days of their original identification, or such
other number of days specified in the transaction agreements.
1122(d)(2)(vii)
-------------------------------------------------------------------------------------------------
Investor Remittances and Reporting
-------------------------------------------------------------------------------------------------
Reports to investors, including those to be filed with the
Commission, are maintained in accordance with the
transaction agreements and applicable Commission
requirements. Specifically, such reports (A) are prepared
in accordance with timeframes and other terms set forth in
the transaction agreements; (B) provide information
calculated in accordance with the terms specified in the
transaction agreements; (C) are filed with the Commission
as required by its rules and regulations; and (D) agree
with investors' or the trustee's records as to the total
unpaid principal balance and number of mortgage loans
serviced by the Servicer.
1122(d)(3)(i)
-------------------------------------------------------------------------------------------------
Amounts due to investors are allocated and remitted in
accordance with timeframes, distribution priority and other
1122(d)(3)(ii) terms set forth in the transaction agreements.
-------------------------------------------------------------------------------------------------
Disbursements made to an investor are posted within two
business days to the Servicer's investor records, or such
other number of days specified in the transaction
1122(d)(3)(iii) agreements.
-------------------------------------------------------------------------------------------------
Amounts remitted to investors per the investor reports
agree with cancelled checks, or other form of payment, or
1122(d)(3)(iv) custodial bank statements.
-------------------------------------------------------------------------------------------------
EXH. B-1-2
-------------------------------------------------------------------------------------------------
Servicing Criteria Applicable
Servicing
Criteria
-------------------------------------------------------------------------------------------------
Reference Criteria
-------------------------------------------------------------------------------------------------
Pool Asset Administration
-------------------------------------------------------------------------------------------------
Collateral or security on mortgage loans is maintained as X
required by the transaction agreements or related mortgage
1122(d)(4)(i) loan documents.
-------------------------------------------------------------------------------------------------
Mortgage loan and related documents are safeguarded as X
1122(d)(4)(ii) required by the transaction agreements
-------------------------------------------------------------------------------------------------
Any additions, removals or substitutions to the asset pool
are made, reviewed and approved in accordance with any
1122(d)(4)(iii) conditions or requirements in the transaction agreements.
-------------------------------------------------------------------------------------------------
Payments on mortgage loans, including any payoffs, made in X
accordance with the related mortgage loan documents are
posted to the Servicer's obligor records maintained no more
than two business days after receipt, or such other number
of days specified in the transaction agreements, and
allocated to principal, interest or other items (e.g.,
escrow) in accordance with the related mortgage loan
1122(d)(4)(iv) documents.
-------------------------------------------------------------------------------------------------
The Servicer's records regarding the mortgage loans agree X
with the Servicer's records with respect to an obligor's
1122(d)(4)(v) unpaid principal balance.
-------------------------------------------------------------------------------------------------
Changes with respect to the terms or status of an obligor's X
mortgage loans (e.g., loan modifications or re-agings)
are made, reviewed and approved by authorized personnel in
accordance with the transaction agreements and related pool
1122(d)(4)(vi) asset documents.
-------------------------------------------------------------------------------------------------
Loss mitigation or recovery actions (e.g., forbearance X
plans, modifications and deeds in lieu of foreclosure,
foreclosures and repossessions, as applicable) are
initiated, conducted and
concluded in accordance with the timeframes or other
1122(d)(4)(vii) requirements established by the transaction agreements.
-------------------------------------------------------------------------------------------------
Records documenting collection efforts are maintained X
during the period a mortgage loan is delinquent in
accordance with the transaction agreements. Such records
are maintained on at least a monthly basis, or such other
period specified in the transaction agreements, and
describe the entity's activities in monitoring delinquent
mortgage loans including, for example, phone calls, letters
and payment rescheduling plans in cases where delinquency
1122(d)(4)(viii) is deemed temporary (e.g., illness or unemployment).
-------------------------------------------------------------------------------------------------
▇▇▇. ▇-▇-▇
-------------------------------------------------------------------------------------------------
Servicing Criteria Applicable
Servicing
Criteria
-------------------------------------------------------------------------------------------------
Reference Criteria
-------------------------------------------------------------------------------------------------
Adjustments to interest rates or rates of return for X
mortgage loans with variable rates are computed based on
1122( d)( 4 )(ix) the related mortgage loan documents.
-------------------------------------------------------------------------------------------------
Regarding any funds held in trust for an obligor (such as X
escrow accounts): (A) such funds are analyzed, in
accordance with the obligor's mortgage loan documents, on
at least an annual basis, or such other period specified in
the transaction agreements; (B) interest on such funds is
paid, or credited, to obligors in accordance with
applicable mortgage loan documents and state laws; and
(C) such funds are returned to the obligor within 30
calendar days of full repayment of the related mortgage
loans, or such other number of days specified in the
1122( d)( 4 )(x) transaction agreements.
-------------------------------------------------------------------------------------------------
Payments made on behalf of an obligor (such as tax or X
insurance payments) are made on or before the related
penalty or expiration dates, as indicated on the
appropriate bills or notices for such payments, provided
that such support has been received by the servicer at
least 30 calendar days prior to these dates, or such other
number of days specified in the transaction agreements.
1122( d)( 4 )(xi)
-------------------------------------------------------------------------------------------------
Any late payment penalties in connection with any payment X
to be made on behalf of an obligor are paid from the
servicer's funds and not charged to the obligor, unless the
1122(d)(4)(xii) late payment was due to the obligor's error or omission.
-------------------------------------------------------------------------------------------------
Disbursements made on behalf of an obligor are posted X
within two business days to the obligor's records
maintained by the servicer, or such other number of days
1122(d)(4)(xiii) specified in the transaction agreements.
-------------------------------------------------------------------------------------------------
Delinquencies, charge-offs and uncollectible accounts are X
recognized and recorded in accordance with the transaction
1122(d)(4)(xiv) agreements.
-------------------------------------------------------------------------------------------------
Any external enhancement or other support, identified in
Item 1114(a)(1) through (3) or Item 1115 of Regulation AB,
1122(d)(4)(xv) is maintained as set forth in the transaction agreements.
-------------------------------------------------------------------------------------------------
EXH. B-1-4
[THE HEMISPHERE NATIONAL BANK] [NAME OF
SUBSERVICER]
Date: _______________________________________
By: _______________________________________
Name:
Title:
▇▇▇. ▇-▇-▇