COMMITMENT
TOI'URCHASEFINANCIALINSTRUMENT
and
SERVICERPARTICIPATION
AGREEMENT
fOl'tl,e
HOMEAFFORDABLEMODWICATIONPROGRAMunder
the
EMERGENCYECONOMICSTABILIZATIONACTOF
2008
ThisCommitmenttoPurchaseFinancialInstrumentandServiceI'
Pal1icipation
Agreement(the"Commitment")
is
enteredinto
as
of
theEftectiveDate,
by
andbetweenFederalNationalMortgageAssociation,afederallycharteredcorporation,asfinancial
agent
of
tileUnitedStates("FannieMae"),andtheundersignedparty(,'Servicer
H
).
Capitalizedtermsused,butnotdefinedcontextually,shallhavethemeaningsascribedtotheminSection
12
below.
Recitals
WHEREAS,theU.S.Depm1mcnt
ofthc
TreasUl)'(the"TreasUl)''')hasestahlishedaHomeAffordableModificatiooProgram(the
"Program")
pursuanttosection
101
and109
ofthe
EmergencyEconomicStabilizationAct
of200S
(the"Act"),assection109
of
the
Act
has
beenamendedbysection7002
of
theAmericanRecoveryandReinvestment
Act
of2009;
WHEREAS,theProgramincludesloanmodificationandotherforeclosurepreventionservices;WHEREAS,FannieMaehasbeendesignatedbytheTreasUlY
as
a
financialagent
afthe
UnitedStates
in
connectionwiththeimplementation
of
theProgram;WHEREAS,FannieMae
will,
in
itscapacity
asa
financialagent
of
theUnitedStates,fulfilltheroles
of
administrator,recordkeeper
and
payingagentfortheProgram,and
in
conjunctiontherev·"ithmuststandardizeceltainmortgagemodificationandforeclosurepreventionpracticesandproceduresastheyrelatetotheProgram,consistentwiththeActandinaccordancewiththedirectivesof,andguidanceprovidedby,theTreasury;WHEREAS,FederalHomeLoanMortgageCorporation("FreddieMac")hasbeendesignatedbytheTreasuryasafinancial
agent
of
theUnitedStatesandwill,
in
itscapacityasafinancialagent
of
theUnitedStates,fultmacompliancerole
in
connectionwiththeProgram;
allrcferences
toFreddieMac
inthe
Agreementshall
bein
itscapacityascomplianceagent
of
theProgram;WHEREAS,allFannieMacandFreddieMacapprovedservicersarebeingdirectedthroughtheirrespectiveservicingguidesandbulletinstoimplementtheProgramwithrespecttomortgageloansowned,securitized,
or
guaranteedbyFannieMae
or
FreddieMac(the
HOSE
Loans");accordingly,thisAgreementdoes
not
applytotheOSELoans;WHEREAS,allotherservicel's,aswellasFannieMaeandFreddieMacapprovedservicers,thatwishtoparticipate
in
the
Pl'Ogram
with
respect
toloansthatare
not
aSE
Loans
(collectively,"ParticipatingServicers")
must
agree
tocertaintermsandconditionsrelatingtotherespectiverolesandresponsibilities
of
Programparticipantsandotherfinancialagents
of
thegovernment;andWHEREAS,ServicerwishestoparticipateintheProgramasaParticipatingServiceI'onthetermsandsubjecttotheconditionssetfOlthherein.Accordingly,inconsideration
of
tilerepresentations!warranties,andmutualagreementssetforthhereinandforothergoodandvaluableconsideration,thereceiptandsufficiency
of
whichareherebyacknowledged,FannieMaeandService!"agreeasfollows.
Agreement
l.
Services
A.
SubjecttoSectionI
D.C.,
ServiceI'shallperformtheloanmodificationandotherforeclosurepreventionservices(collectively,thc"Services")describedin(i)theFinancialInstrumentattachedheretoasExhibitA(the"FinancialInstrumenf');(ii)theProgramguidelinesandproceduresissued
by
theTreasury,including,withoutlimitation,thenetpresentvalueassessmentrequirements
of
theProgram(the"ProgramGuidelines");and
(iii)
anysupplementaldocumentation,instructions,bulletins,letters,directives,orothercommunications,including,butnotlimitedto,businesscontinuityrequirements,compliancerequirements,performancerequirementsandrelatedremedies,issuedbytheTreasury,FannieMae,orFreddieMac
in
ordertochange,orfurtherdescribeorclarifYthescopeof,therightsandduties
of
thePalticipatingSClvicers
in
connectionwiththeProgram(the"SupplementalDirectives"and,togetherwiththeProgramGuidelines,the"ProgramDocumentation").TheProgramDocumentation
will
beavailabletoallParticipatingServicersatwww.financialstability.gov.TheProgramDocumentation,asthesamemay
be
modified
or
amended
fi'ol11
timetotimeinaccordancewithSection
10
below,
is
herebyincorporatedintotheCommitment
by
thisreference.
B.
Servicer'srepresentationsandwarranties,andacknowledgement
of
andagreementtofulfill
01'
satisfycertaindutiesandobligations,withrespecttoitsparticipation
in
theProgramandundertheAgreementaresetforthintheFinancialInstrument.Servicer'scertificationas
to
itscontinuingcompliancewith,andthetruthandaccuracyof,therepresentationsandwarrantiesset
fOlih
intheFinancialInstrumentwillbeprovidedannuallyintheformattachedheretoasExhibitB(the"AnnualCertification"),beginningonJune
1,2010
andagainonJuneI
of
eachyearthereafterduringtheTerm(asdefinedbelow).
C.
Therecitalsset
fOlih
abovearcherebyincorporatedhereinbythisreference.
2.
Authority
and
Agl'eementto
Participate
in
Program
A.
Servicershall
perfOl'l11
theServicesforallmortgageloansitsservices,whetheritservicessuchmOltgageloansforitsownaccount
01'
fortheaccount
of
anotherpatty,includinganyholders
of
mOltgage-backedsecurities(eachsuchotherparty,an"Investor").ServiceI'shaltusereasonableeffortstoremoveallprohibitions
01'
impedimentstoitsauthority,andusereasonableeffortstoobtainallthirdpartyconsentsandwaiversthatarerequired,bycontractorlaw,inordertoeffectuateanymodification
of
amOltgageloanundertheProgram.
B.
Notwithstandingsubsection
A.,
if(x)
ServiceI'
is
unabletoobtainallnecessaryconsentsandwaiversformodifYingamortgageloan,or(y)thepoolingandservicingagreementorothersimilarservicingcontractgoverningServicer'sservicing
of
amortgageloanprohibitsServiceI'fromperformingtheServices
for
thatmortgageloan,ServiceI'shallnotberequiredtoperformtheServiceswithrespecttothatmortgageloanandshallnotreceiveallorany
p011ion
of
thePurchasePrice(asdefinedbelow)otherwisepayablewithrespecttosuchloan.
C.
Notwithstandinganything
to
thecontrarycontainedherein,theAgreementdoesnotapplytoGSELoans.SCl'vicersarcdirectedtotheservicingguidesandbulletinsissuedbyFannieMaeandFreddieMac,respectively,concerningtheProgram
a<;
appliedtoGSELoans.
D.
Scrviccl"Sperformance
of
theServicesandimplementation
ofthe
Program
shaHbe
subject
to
reviewbyFreddieMacanditsagentsanddesigneesasmorefullysetfOith
in
theAgreement.3.SetVI';I'rel'equlsiteto
Payment
ServicerwillprovidetoFannieMae:(a)thesetupinformationrequiredbytheProgramDocumentationandanyancillaryoradministrativeinfonnationrequested
by
FannieMae
in
ordertoprocessServicer'spa11icipationinthe
Pl'Ogram
asaParticipatingServiceI'onorbeforetheEffectiveDate
of
theCommitment;and(b)thedataelements
for
eachmortgageeligible
-2-
fortheProgramasandwhendescribedintheProgramDocumentationandtheFinancialInstrument.PurchasePricepayments
will
notberemittedpmsuant
to
Section4withrespect
to
anymodifiedmortgageforwhichtherequireddataelementshavenotbeenprovided.
4.
AgreementtoPurchaseFinancial
Instrument;Payment
of
PurchasePrice
A.
FannieMae,initscapacity
as
afinancialagent
of
theUnitedStates,agreestopmchase,andServiceragrees
to
sell
to
FannieMae,insuchcapacity,theFinancialInstrumentthat
is
executedanddeliveredbyServicer
to
FannieMae
in
theformattachedheretoasExhibitA,inconsiderationforthepaymentbyFannieMae,asagent,
of
thePurchasePrice(definedbelow),TheconditionsprecedenttothepaymentbyFannieMae
of
thePurchasePriceare:(a)theexecutionanddeiivery
of
theCommitmentandtheFinancialInstrumentbyServiceI'toFannieMacj(b)theexecutionanddeliverybyFannieMae
of
theCommitmenttoService!';(c)thedelivery
of
copies
afthe
fullyexecutedCommitmentandFinancialInstrumenttoTreasuryontheEffectiveDate;(d)theperformancebyServicer
of
theServicesdescribed
in
theAgreement,
in
accordancewiththetermsandconditionsthereof,tothereasonablesatisfaction
of
FanuieMaeandFreddieMac;
and
(e)thesatisfactionbyServicer
of
suchotherobligationsasare
set
fOl1h
in
theAgreement.
B.
Solely
in
itscapacityasthefinancialagent
of
theUnitcdStates,andsubjecttosubsectionC.below,FannieMaeshall:(i)remitcompensationpaymentstoServicer;(ii)remitincentivepaymentstoServiceI'fortheaccount
of
ServiceI'andforthecredit
of
borrowersundertheirrespectivemOl1gageloanobligations;and(iii)remitpaymentstoServiceI'fortheaccount
of
Investors,
in
eachcase
in
accordancewiththeProgramDocumentation(allsuchpayments,collectively,the"PUl'chasePrice");allpaymentsremittedtoServiceI'forthecredit
of
borrowersor
for
theaccount
of
InvestorsundertheProgramDocumentationshallbeappliedbyServiceI'totheborrowers'respectivemot1gageloanobligations,orremittedbyServiceI'toInvestors,asrequiredbytheProgramDocumentation.FannieMaeshallhave
no
liability
to
ServiceI'withrespecttothepayment
of
thePurchasePrice,unlessanduntil:(a)ServiceI'andallotherinterestedpartieshavesatisfiedall
p r e ~ r e q u i s i t e s
setforthhereinandintheProgramDocumentationrelatingtotheProgrampaymentstmcturc,including,butnotlimitedto,thedelivery
of
alldataelementsrequiredbySection3
of
thisCommitment;and(b)theTreasmyhasprovidedfundstoFannieMae
for
remittance
to
Servicer,togetherwithwrittendirectiontoremitthefundstoServicerinaccordancewiththeProgramDocumentation.
C.
ThePurchasePrice
will
bepaidtoServiceI'byFannieMaeasthefinancialagent
of
theUnitedStates
as
andwhendescribedhereinandintheProgmlnDocumentation
in
consideration
foJ'
theexecutionanddelivery
of
theFinancialInstrumentbyServiceI'onorbeforetheEffectiveDate
oftlle
Agrcement,uponthesatisfaction
of
theconditionsprecedenttopaymentdescribedinsubsections
A.
and
B.
above.
D.
Thevalue
of
theAgreement
is
limitedto$2,699,720,000.00(thc"ProgramPal1icipationCap").Accordingly,theaggregatePurchasePricepayabletoServiceI'undertheAgreementmaynotexceedtheamount
of
theProgramParticipationCap.Foreachloanmodificationthatbccomeseffective,theaggregateremainingPmchasePriceavailabletobepaidtoServiceI'undertheAgreement
will
be
reducedbythemaximumPurchasePricepotentiallypayablewithrespect
to
thatloanmodification.
In
theeventthePurchasePriceactuallypaidwithrespecttothatloanmodification
is
lessthanthemaximumPurchasePricepotentiallypayable,theaggregateremainingPurchasePriceavailableto
be
paidtoServicerundertheAgreement
wiJI
beincreasedbythedifferencebetweensuchamounts.Notwithstandingtheforegoing,noagreementswithborrowersintendedtoresultinnewloanmodificationswillbeeffectedundertheAgreement,and
no
payments
wiII
bemadewithrespecttoanynewloanmodificationsfrolllandaflerthedateonwhichtheaggregatePurchasePricepaidorpayabletoServiceI'undertheAgreementequalstheProgramParticipationCap.Treasurymay.fi'omtimetotimeinitssolediscretion,adjusttheamount
of
theProgramParticipationCap.Servicer
will
benotified
of
alladjustmentstotheProgramPaliicipationCapinwriting
by
FannieMae.
E.
Servicershallmaintaincompleteandaccuraterecordsof,andsuppol1ingdocumentationfor,theborrowerpayment,including,butnotlimitedto,PITIA(principal,interest,taxes,insurance(includinghomeowner'sinsuranceandhazardandfloodinsurance)andhomeowner'sassociationand/orcondofees),anddelinquencyinfol1nationanddataprovidedtoFannieMaeregardingeachagreementrelatingtoatrialmodificationperiodandeachloanmodificationagreementexecutedunderthe
-3-
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JP Morgan Chase Bank N.A. Servicer Participation Agreement - Commitment to Purchase Financial Instrument and Servicer Participation Agreement from: Federal National Mortgage Association cc: US Department of Treasury, Frederick Selby, Mark Seiler, Dawn A. Patterson, John Anderson, Nancy Fleetwood, Laurie Maggiano, Ari Brandes, Andrew Ganahl, Gary Grippo, Charles Andreatta, TARP Accounting
JPMorgan Chase Bank, N.A. ("Servicer"), Molly Sheehan
Assignor and Federal National Mortgage Association FANNIE MAE parties to a Commitment to Purchase Financial Instrument and Servicers'Participation Agreement
& acknowledges that Fannie Mae and Freddie Mac may …
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