MASTER AGREEMENT MA02373.2
This Master Agreement between Fannie Mae and
Crescent Bank and Trust Company
(“Lender”) governs the
sale by Lender, and the purchase by Fannie Mae, of eligible residential mortgage loans (the “Mortgages”). This
Master Agreement includes all of the terms and conditions described in all of the exhibits, attachments,
conversions, commitments and MBS Pool Purchase Contracts (“MBS Contracts”) attached or entered into as a
part of this Master Agreement. Additionally, the “Master Agreement Terms and Conditions” section of Fannie
Mae’s Selling Guide (the “Selling Guide”), which is incorporated into this Agreement by this reference, outlines
in more detail the general terms and conditions of the Master Agreement and MBS Contracts and contains a
complete description of the terms “Master Conversions” and “MBS Pricing Confirmations,” as well as other
related terms and instructions. The execution of this Master Agreement requires compliance with all provisions
and sections of this Master Agreement, including all Master Conversions, MBS Contracts, cash commitments,
exhibits and attachments to this Master Agreement.
To sell Mortgages under this Master Agreement, Lender and Fannie Mae must also enter into one or more
Master Conversions. In addition, depending on whether Lender will be delivering Mortgages under one of
Fannie Mae’s cash purchase programs (Negotiated or Standard) or under Fannie Mae’s MBS program, Lender
and Fannie Mae will also need to enter into the appropriate cash commitments or MBS Pricing Confirmations
for MBS Contracts.
Lender and Fannie Mae acknowledge that the Estimated Dollar Amount (as set forth on Exhibit 1) is an estimate
by the parties, as of the date of execution hereof, of anticipated Mortgage deliveries and such amount may
change over the term of this Master Agreement. Notwithstanding the fact that a Maximum Amount of Pool
Purchase Transactions for Delivery is set forth in each MBS Contract, the total amount to be sold shall be
governed by the applicable Master Conversions. The sum of the actual Mandatory Delivery Amounts (whether
one or more), as reflected in the Master Conversions, will reflect the actual volume of Mortgage deliveries
agreed to by the parties and will supersede any Estimated Dollar Amount set forth in Exhibit 1.
For this Master Agreement to become effective, Lender must execute and return to Fannie Mae a duplicate
original within ten business days of Lender’s receipt of this Master Agreement. Otherwise. Fannie Mae may, at
its option, declare this Master Agreement null and void.
Lender hereby confirms, by checking the appropriate section below, that:
It is not a federally-insured institution or an affiliate or subsidiary of a federally-insured institution.
It is a federally-insured institution or an affiliate or subsidiary of a federally-insured institution. If Lender has
checked this section, then Lender agrees to the representations and warranties described in the “Master
Agreement Terms and Conditions” section of the Selling Guide.
Master Agreement MA02373.2
MA - 1
Amendment 20
Sincerely,
F
ANNIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged, and accepted.
C
RESCENT
B
ANK
AND
T
RUST
C
OMPANY
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
12-11-02
Agreed, acknowledged, and accepted.
C
RESCENT
M
ORTGAGE
S
ERVICES
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
12-11-02
Master Agreement MA02373.2
MA - 2
Amendment 20
EXHIBIT 1
TO MASTER AGREEMENT MA02373.2
Lender Name
Crescent Bank and Trust Company
Lender Number
23227-000-4
Delivery Term:
Second
Effective Date of Delivery Term:
January 1, 2003
Expiration Date of Delivery Term:
June 30, 2003
Estimated Dollar Volume for
Delivery Term:
$175,000,000.00
(eligible for delivery only upon incremental conversions to Mandatory
Delivery Amounts under one or more Master Conversions)
Master Agreement MA02373.2
MA - 3
Amendment 20
MASTER AGREEMENT
Master Conversion for Crescent Bank and Trust Company
MA02373.2-01
Upon entering into this Master Conversion, Lender is obligated to sell to Fannie Mae, and Fannie Mae is
obligated to buy from Lender, Mortgages in the aggregate unpaid principal amount of the Mandatory Delivery
Amount stated below under any of the following programs: Fannie Mae’s MBS program, Negotiated Cash
Transactions or Standard Cash Transactions. Mortgages must be sold during the period commencing with the
Effective Date set forth below and ending with the Expiration Date set forth below (the “Conversion Period”)
and must meet all requirements set forth in the Master Agreement, as well as those set forth in the applicable
MBS Contracts (as described below). There must be a valid MBS Pricing Confirmation for each MBS Contract
below prior to Lender’s sale of any Mortgages under such MBS Contract.
Lender shall be deemed to have accepted the terms of this Master Conversion and all applicable MBS Pricing
Confirmations either (i) upon execution of the Master Agreement or Master Agreement amendment to which
this Master Conversion is attached, or (ii) if this Master Conversion is not attached to a Master Agreement
amendment, then upon delivery of any Mortgages under the MBS Contracts during the current Conversion
Period.
Master Agreement:
MA02373.2
Mandatory Delivery Amount:
$175,000,000.00, plus or minus 5%
Effective Date:
January 1, 2003
Expiration Date:
June 30, 2003
MBS Contracts:
A06303, A06304, A06305, A06808, A06809, A06810, A06811
Master Agreement MA02373.2
MA - 4
Amendment 20
VARIANCES
This Variances Attachment is attached to and made a part of the Master Agreement. Under this Master
Agreement, Lender may sell Mortgages originated in accordance with the following variances. Unless otherwise
specified, the following variances apply only to conventional, first lien Mortgages.
1.
With respect to any Variances in this “Variances” section that incorporate a table to describe eligibility of
Mortgages delivered under that Variance, the following definitions and restrictions apply to all such
Variances.
•
Mortgage products listed under “Eligible Products/Programs” are the only eligible mortgage
products and/or programs. A reference to “All Standard per Selling Guide” means only standard
mortgage products (e.g., FRM, ARM, 7-year balloon), and does not include any specially negotiated
products, community or affordable lending products, or products requiring special lender approval.
•
The loan purpose(s) listed under “Loan Purpose” (Purchase Money Mortgage, Cashout Refinance,
Limited Cashout Refinance) is/are the only eligible loan purpose for Mortgages delivered under the
Variance.
•
The property type(s) and number of units listed under “Dwelling Type” (e.g. Detached, Condo,
PUD) and “Units” (e.g. 1, 2, 3, 4) is/are the only eligible property types and number of units for
Mortgages delivered under the Variance.
•
The occupancy status listed under “Occupancy Status” (e.g. Owner, 2nd Home, or Investor) is/are
the only eligible occupancy status for Mortgages delivered under the Variance. “Owner” means
owner-occupied primary residence, “2nd Home” means second home, and “Investor” means an
investment property.
•
The LTV or CLTV listed in the “LTV” or “CLTV” column represent the maximum possible LTV or
CLTV for the Mortgages delivered under the Variance. A lower maximum LTV or CLTV may apply
depending on the loan products (e.g. ARM or balloon), if “All Standard per Selling Guide” has been
selected under “Eligible Products/Programs.”
2.
In the event that a Variance table references “Coop” as an eligible “Dwelling Type,” Lender must be
approved for delivery of cooperative share loans to Fannie Mae, per the Selling Guide.
3.
Any special feature code designated for the Variance is in addition to any other special feature codes that
may be required.
4.
If any column in the Variance table is blank, Lender must refer (a) first to the terms and conditions of that
Variance, and (b) then to the Selling Guide or the Guide to Underwriting with Desktop Underwriter®, as
applicable, both as amended from time to time.
Master Agreement MA02373.2
VAR Preamble - 1
VARIANCES
TABLE OF CONTENTS
VAR 1
Bulk Alt A Product FRM
VAR 2
Desktop Underwriter ‘Expanded Approval with Timely Payment Rewards
SM
’ Initiative
VAR 3
Relocation Mortgages Guidelines/Trailing Secondary Wage Earner Income
VAR 4
Other Automated Underwriting Systems
Master Agreement MA02373.2
VAR/TOC - 1
VAR 1 Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements described
as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be obtained.
Lender is not required to verify the reported income, but must verify the borrower’s assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1. Fannie
Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages
may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of Lender by offering to buy or accepting delivery of any
Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as
described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling Guide.
Master Agreement MA02373.2
VAR 1 - 1
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this
Variance. With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific
information with respect to the corresponding Mortgages being delivered will be completed and added to
this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income - No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1 -2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties. Condominiums
are also eligible. NO mobile homes or manufactured housing units.
Also, no excess acreage - value not to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets, but does not
want to deal will all regular documentation requirements, and for
borrowers who are changing jobs, between jobs, relocating, retiring, or
have recently become self-employed. All borrowers must meet credit
score requirements. No loans to builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report required for all loan
types. Plus, a review appraisal if the transaction is a refinance and the
LTV is greater than 75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
- Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit score of 700; 75%
with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65% with a credit score
of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit score of 700; 70%
with a credit score of 680.
2-unit: COR to 65% with a credit score of 700; 60% with a credit score
of 680.
- 2nd Homes
1-unit only; PMM & R/T Refi to 80% with a credit score of 720; 75%
with a credit score of 700; 70% with a credit score of 680; COR to 70%
with a credit score of 700; 65% with a credit score of 680.
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Reserves:
No assets are verified; reserves are not required.
Master Agreement MA02373.2
VAR 1 - 3
Credit Criteria:
Trade Lines
Three (3) rated trades
Credit History
24 Months
Credit Explanations
Not stated
Mortgage/Revolving/
No Foreclosures.
Installment
No Bankruptcies.
No 30-day lates on any mortgages in the past 24 months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the Application must
be sufficient to make the down payment.
Down Payment:
Assets are not verified; however, assets stated on the Application must
be sufficient to make the down payment.
Liquid assets (checking, savings, CD’s,
money market funds, etc.)
Assets are not verified; however, assets stated on the Application must
be sufficient to make the down payment.
Non-depository assets (stocks, bonds,
retirement funds, trust funds, etc.)
Assets are not verified; however, assets stated on the Application must
be sufficient to make the down payment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental
history
Required if mortgage history not on credit report. Rental history
verification not required.
Salaried/Wage Earner Employment
Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment
Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/
Balance Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS,
alimony, child support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and
overtime and bonus income
No verification. Stated income only.
Commission income and independent
contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
VAR 2 Desktop Underwriter ‘Expanded Approval with Timely Payment Rewards
SM
’ Initiative
September 2002
The following terms and conditions apply only to Mortgages originated and delivered to Fannie Mae pursuant to
the Desktop Underwriter® “Expanded Approval with Timely Payment Rewards
SM
” Initiative (hereinafter
referred to as “the Initiative”). Mortgages originated under the Initiative must have been submitted to the
Expanded Approval version of Desktop Underwriter for analysis.
Lender may deliver Mortgages originated under the Initiative in accordance with the following:
1.
Eligibility.
(a)
General.
Each Mortgage must comply with the requirements of the “Expanded Approval with Timely
Payment Rewards Lender Guide” (the “EA Lender Guide”), as may be amended from time to time,
as supplemented by the following specific provisions below. A breach of any of such eligibility
criteria shall be deemed to be a breach of warranty by Lender, as provided in the Selling Guide. The
EA Lender Guide may be accessed through eFannieMae.com, under “Mortgage Product
Information.”
(b)
Recommendation Levels.
(i)
Mortgages receiving an “EA-I/Eligible,” “EA-II/Eligible,” or “EA-III/Eligible”
recommendation in the Desktop Underwriter Underwriting Findings Report are eligible for
delivery in accordance with the terms hereof.
(ii)
Any Mortgage receiving a recommendation of “Refer W Caution/IV” is ineligible for delivery
to Fannie Mae.
(iii)
Generally, Mortgages that receive an “EA/Ineligible” recommendation are not deliverable to
Fannie Mae. If any such Mortgage meets the requirements of an applicable Product Variance or
a Community Lending Product Variance as described in Paragraph 4(b) below, or a negotiated
underwriting variance in the Master Agreement (“Underwriting Variance”) providing for
specific eligibility requirements, as described in Paragraph 4(a) below, then such Mortgages are
only deliverable in accordance with the provisions of Paragraph 4 below.
(c)
Product Eligibility.
See the EA Lender Guide for all product eligibility information.
(d)
Definitions.
As used herein, these terms have the following meanings:
(i)
“EA-I Mortgages” means Mortgages receiving a recommendation of “EA-I/Eligible” or “EA-
I/Ineligible,” only if an Underwriting Variance per Paragraph 4(a) is applicable.
Master Agreement MA02373.2
VAR 2 - 1
Amendment 20
(ii)
“EA-II Mortgages” means Mortgages receiving a recommendation of “EA-II/Eligible” or “EA-
II/Ineligible,” only if an Underwriting Variance per Paragraph 4(a) is applicable.
(iii)
“EA-III Mortgages” means Mortgages receiving a recommendation of “EA-III/Eligible” or
“EA-III/Ineligible,” only if an Underwriting Variance per Paragraph 4(a) is applicable.
2.
Limited Waiver of Warranties.
Mortgages receiving the “EA-I/Eligible,” “EA-II/Eligible,” and “EA-III/Eligible” recommendation in the
Desktop Underwriter Underwriting Findings Report are eligible for the “Limited Waiver of
Representations and Warranties,” as set forth in the Selling Guide, Part I, Chapter 2, Section 202.02,
provided that each such Mortgage:
(a)
is subject to all applicable requirements, restrictions, stipulations, and limitations specified in this
Master Agreement, the applicable Pool Purchase Contract and the Guide to Underwriting with
Desktop Underwriter, as amended from time to time (the “Desktop Underwriter Guide”), as modified
by this Agreement, which may include the purchase price or guaranty fee, any price adjustment, or
similar charge and the aggregate outstanding principal amount; and
(b)
meets all applicable product eligibility requirements.
3.
Timely Payment Rewards Feature.
Only fixed rate, fully amortizing, level payment EA-II Mortgages and EA-III Mortgages may be
originated with the Timely Payment Rewards feature, which includes an interest rate reduction provision,
subject to the following:
(a)
Such Mortgages must be delivered to Fannie Mae for cash.
(b)
The Mortgage must meet all applicable product eligibility requirements.
(c)
The Mortgage must be originated with the
Timely Payment Rewards Addendum to the Note
(Fannie
Mae Form 1410) (the “Addendum”) and the
Timely Payment Rewards Rider
to the Security
Instrument (Fannie Mae Form 1412) (the “Rider”).
(d)
The mortgagor must meet the eligibility criteria set forth in the Addendum and the Rider. The
Mortgage servicer will be responsible for complying with the provisions of the EA Lender Guide
relating to interest rate reduction, including evaluating the mortgagor’s payment history on the
second, third and/or fourth anniversary date of the scheduled due date of the first full installment
payment due under the Note (“Anniversary Date”) to determine if the mortgagor has met the
eligibility criteria for the interest rate reduction.
4.
Mortgages with Product Variances or Underwriting Variances.
(a)
Mortgages that receive an “EA/Ineligible” recommendation that were originated with Underwriting
Variances are only deliverable to Fannie Mae with Fannie Mae’s prior approval. Fannie Mae must
approve combining the Underwriting Variance with the
Master Agreement MA02373.2
VAR 2 - 2
Amendment 20
Initiative, even if the Underwriting Variance has been approved under this Master Agreement for
non-Initiative mortgages. The specific reason(s) for ineligibility must be permitted under the terms of
the Underwriting Variance. With Fannie Mae’s prior approval, Lender may deliver such Mortgages,
provided that such Mortgages:
(i)
are not eligible for the Limited Waiver of Warranties;
(ii)
must meet all of the terms of the Initiative specified herein and the terms applicable to the
Underwriting Variance;
(iii)
must be identified with the applicable special feature code for the Initiative
in addition to
any
special feature codes that may be applicable under the terms of the Underwriting Variance; and
(iv)
are subject to the applicable loan level price adjustments for the Initiative,
in addition to
any
loan level price adjustments that may be applicable under the terms of the Underwriting
Variance.
(b)
Certain Mortgages receiving any of the three levels of “EA/Eligible” recommendations or an
“EA/Ineligible” recommendation in Desktop Underwriter may also meet the requirements of a
product, initiative or pilot that is available to Lender under the terms of this Master Agreement (a
“Product Variance”). If the Product Variance is a Community Lending or affordable housing
initiative or pilot (a “Community Lending Product Variance”), then Lender may disregard the “EA”
recommendation and underwrite such Mortgage outside of Desktop Underwriter in accordance with
the provisions of the Community Lending Product Variance, provided that such Mortgages:
(i)
are not eligible for the Limited Waiver of Warranties;
(ii)
must meet all of the terms of the Community Lending Product Variance;
(iii)
must be identified only with the special feature codes applicable to the Community Lending
Product Variance (the special feature codes applicable to the Initiative shall not apply to such
Mortgages); and
(iv)
are subject to the pricing and any loan level price adjustments applicable to the Community
Lending Product Variance (the loan level price adjustments applicable to the Initiative shall not
apply to such Mortgages).
Mortgages receiving any of the three levels of “EA/Eligible” recommendations or an “EA/Ineligible”
recommendation in Desktop Underwriter that meet the requirements of a Product Variance that is
available to Lender under the terms of this Master Agreement, but that is not a Community Lending
Product Variance, may be delivered to Fannie Mae only with Fannie Mae’s prior approval.
(c)
Any variance for the waiver of any of Fannie Mae’s standard loan level price adjustments shall not
apply to Mortgages originated under the Initiative.
Master Agreement MA02373.2
VAR 2 - 3
Amendment 20
5.
Delivery and Pricing.
(a)
Loan Level Price Adjustments for MBS Delivery.
(i)
Each EA-I Mortgage or EA-II Mortgage delivered for MBS is subject to payment of the
applicable base guaranty fee, as set forth in the applicable MBS pool purchase contract, in
addition to payment of the applicable Initiative loan level price adjustment as shown below,
plus all other loan level price adjustments that may be applicable to such Mortgage.
Additionally, Lender shall identify all EA-I Mortgages and EA-II Mortgages at delivery with
the applicable Special Feature Code as shown below.
Risk Level
Initiative Loan Level
Price Adjustment
Special Feature
Code
EA-I Mortgages
1.50% (for all
Mortgages)
340
EA-II Mortgages
(without Timely
Payment Rewards only)
2.75% (for all
Mortgages)
341
(ii)
Lender must set up a bank account from which Fannie Mae can draft loan level price
adjustments in accordance with the requirements of the Selling Guide, as amended from time to
time.
(iii)
Delivery of Mortgages under the Initiative shall be subject to all applicable loan level price
adjustments as required by the Selling Guide and the Expanded Approval Eligibility Matrix, in
the Desktop Underwriter Guide, both as amended from time to time. In addition, Mortgages
under the Initiative are subject to the payment of the general Desktop Underwriter usage fees
outlined in the Desktop Underwriter Seller/Servicer Software License and Subscription
Agreement between Lender and Fannie Mae.
(iv)
Please note that any loan level price adjustment associated with the delivery and profile of
Mortgages underwritten through Desktop Underwriter are subject to change at any time during
the term of this Master Agreement. These changes will be reflected in the Desktop Underwriter
Guide or other written notice from Fannie Mae.
(v)
Mortgages described in Paragraph 5(b)(ii) below are not eligible for delivery for MBS.
(b)
Cash Execution.
(i)
All EA-I Mortgages, EA-II Mortgages and EA-III Mortgages are eligible for delivery for cash.
(ii)
The following Mortgages are eligible for delivery only for cash:
(A)
all EA-II Mortgages that include the Timely Payment Rewards feature; and
Master Agreement MA02373.2
VAR 2 - 4
Amendment 20
(B)
all EA-III Mortgages, whether or not such Mortgages include the Timely Payment
Rewards feature.
(iii)
In addition to the cash pricing described in subparagraph (iv) below, each Mortgage is subject
to the payment of all other loan level price adjustments that may be applicable to such
Mortgage. Lender shall identify all Mortgages at delivery with the applicable Special Feature
Code as shown below.
Risk Level
Special Feature Code
(for all Mortgages,
regardless of LTV)
EA-I Mortgages
340
EA-II Mortgages without Timely Payment
Rewards
341
EA-II Mortgages with Timely Payment
Rewards
459
EA-III Mortgages without Timely
Payment Rewards
342
EA-III Mortgages with Timely Payment
Rewards
376
(iv)
To obtain Fannie Mae cash pricing, Lender may go to eFanniemae.com and select
“eCommitting” under the Lending and Servicing menu or call the Cash Commitment Window
for separate commitments at 1-800-752-1080 and select Option 5. At delivery Lender must
advise the Cash Commitment Window:
(A)
that the subject commitment is for the Initiative, and
(B)
that the subject risk level is either I, II or III (indicate which one), and
(C)
if applicable, that the Mortgage includes the Timely Payment Rewards rate reduction
feature, and
(D)
of the applicable Special Feature Code(s) and all applicable loan level price adjustments
as required by the Selling Guide and the Expanded Approval Eligibility Matrix, in the
Desktop Underwriter Guide, both as amended from time to time; and
(E)
the applicable mortgage insurance level; and
(F)
of the mortgage term (10-year, 15-year, 20-year, or 30-year), and
(G)
of the mortgage product (fixed-rate mortgage or the applicable ARM plan), and
(H)
of the LTV of the Mortgage.
Master Agreement MA02373.2
VAR 2 - 5
Amendment 20
(v)
Delivery of Mortgages under the Initiative shall be subject to all applicable loan level price
adjustments as required by the Selling Guide and the Expanded Approval Eligibility Matrix, in
the Desktop Underwriter Guide, both as amended from time to time. In addition, Mortgages
under the Initiative are subject to the payment of the general Desktop Underwriter usage fees
outlined in the Desktop Underwriter Seller/Servicer Software License and Subscription
Agreement between Lender and Fannie Mae.
(vi)
Please note that the cash price and/or any other loan level price adjustment associated with the
delivery and profile of Mortgages underwritten through Desktop Underwriter are subject to
change at any time during the term of this Master Agreement. These changes will be reflected
in the Desktop Underwriter Guide or other written notice from Fannie Mae.
6.
General.
(a)
Mortgage Insurance.
(i)
The terms and conditions on which Fannie Mae has agreed to acquire the Mortgages originated
pursuant to the Initiative assume that additional mortgage insurance is obtainable for the
Mortgages after delivery of the Mortgages to Fannie Mae. Lender represents and warrants that
none of the Mortgages have been originated or serviced with fraud, misrepresentation, or
negligence, or with any act that is dishonest, criminal, or knowingly wrongful, that would (A)
cause a mortgage insurer to decline to insure a Mortgage, or (B) entitle a mortgage insurer to
deny a claim pursuant to a mortgage insurance policy exclusion to coverage encompassing
fraud, misrepresentation, negligence, or dishonest, criminal, or knowingly wrongful acts in
origination or servicing.
(ii)
A minimum of 35% mortgage insurance coverage is required for (A) all Mortgages with LTVs
greater than 95%, and (B) all Mortgages with LTVs of 90.01-95% originated using flexible
sources of funds for the down payment.
(iii)
Mortgages originated with mortgage insurance under the “Reduced MI” Coverage Option or
the “Lower-Cost MI” Coverage Option (all as described in the Selling Guide) are not eligible
for delivery under the Initiative.
(b)
Subordinate Financing.
Mortgages may be subject to subordinate financing in accordance with the EA Lender Guide.
Mortgages subject to subordinate financing are subject to any applicable loan level price
adjustments, in addition to any other loan level price adjustments that may apply.
(c)
Loan Level Price Adjustments.
All loan level price adjustments referenced herein will be equal to the percentage amount specified
multiplied by the issue date principal balance of the Mortgage, in the case of Mortgages delivered for
MBS and the delivery date principal balance, for mortgages delivered for cash.
Master Agreement MA02373.2
VAR 2 - 6
Amendment 20
(d)
Refinances.
Mortgages delivered to Fannie Mae under the Initiative are not eligible for subsequent refinancing
using any Fannie Mae Enhanced Streamlined Refinance process. In order for such mortgages to be
eligible for delivery to Fannie Mae, these cases must be submitted to Desktop Underwriter for credit
risk analysis.
(e)
Servicing.
Lender acknowledges that Lender is not approved to service Mortgages originated pursuant to the
Initiative and agrees to assign the servicing to an authorized servicer of Expanded Approval with
Timely Payment Rewards Mortgages at the time of delivery to Fannie Mae in accordance with the
provisions of the “EA Lender Guide,” as amended from time to time.
Master Agreement MA02373.2
VAR 2 - 7
Amendment 20
VAR3 Relocation Mortgage Guidelines/Trailing Secondary Wage Earner Income
Eligible Products /
Programs
Loan Purpose
Dwelling
Type
Units
Occupancy
Status
LTV
CLTV
FRM:
Purchase Money
Mortgage
Detached Condo
PUD
1
Owner
90
90
Parameters
Options/ Limitations
Minimum Credit Score
Standard per the Selling Guide and DU Guide to Underwriting
Loan Level Price
Adjustment
N/A
Foreclosure Loss Risk
Fannie Mae
Documentation
Mortgages must be originated using either full documentation for all information
related to the borrowers’ employment, income, and source of funds or Fannie
Mae’s TimeSaver alternative documentation program.
Delivery Limitations
50%
Interest Rate Buydowns
Mortgages subject to temporary buydowns are not permitted.
Geographic Limitations
N/A
Additional Terms
Under the following conditions, a percentage of the average income for the previous two years of a “trailing
secondary wage earner” of a relocated employee (“borrower”) can be used for qualification purposes (the
“borrower” and “trailing secondary wage earner” may collectively be referred to as the “borrowers”.) A “trailing
secondary wage earner” is defined as a relative or domestic partner of the primary wage earner. A “relative” is
defined as the primary wage earner’s spouse, child, other dependent, or any other individual who is related by
blood, marriage, adoption, or legal guardianship. “Domestic partners” are defined as persons who share a
committed relationship showing financial interdependence and joint responsibility for each other’s common
welfare, are not related by blood, reside in the same household, and intend to reside together indefinitely.
Percent of Income
Maximum LTV
75%
80
%
50%
90
%
Conditions
(i)
Maximum allowable underwriting ratios are 28%/36%.
(ii)
The borrower must be relocating with the same employer or as a new hire with a company that provides
relocation benefits, and must be eligible to receive such benefits. (The Lender must retain (a) literature
produced by the employer describing the employer’s relocation program in detail and (b) evidence of the
borrower’s eligibility under the program in the individual Mortgage file.)
Master Agreement MA02373.2
VAR 3 - 1
(iii)
The “trailing secondary wage earner” must have been a salaried or commissioned employee who had been
employed in the same occupation for the two years immediately preceding the transfer, and must provide a
written statement that he or she intends to obtain employment in the new location. Income from a “trailing
secondary wage earner” who was self-employed may not be considered for qualifying purposes.)
(iv)
The borrowers must have cash reserves (after the purchase of the new home) equal to at least six months
of payments for all housing costs and other obligations (including installment and revolving debt). In
determining these reserves, housing costs include not only the cost of housing in the new area, but also any
payments that are being made on any unsold previous residence or investment properties (in instances
where such payments are not being paid by the employer of the borrower).
(v)
Lender must determine that the new location provides on-going opportunities for the “trailing secondary
wage earner” to obtain employment in his or her current occupation and must document the individual
Mortgage file accordingly.
Master Agreement MA02373.2
VAR 3 - 2
VAR 4 Other Automated Underwriting Systems
Fannie Mae recognizes that Lender may originate or purchase from third parties mortgages that have been
submitted for evaluation to an automated underwriting system (“AUS”) other than DU. Lender may deliver to
Fannie Mae mortgages processed through a third-party system in accordance with the provisions of this
Variance set forth below, provided that Lender acknowledges and agrees not to use these provisions in any
manner that would adversely select or harm Fannie Mae and:
(i)
The mortgages meet Fannie Mae’s eligibility requirements described in the Fannie Mae Selling Guide, as
modified by the Master Agreement, this Variance or the DU Guide, as any of the foregoing may be
amended from time to time.
(ii)
Such mortgages must receive a recommendation of “standard accept” (either full or streamlined
documentation levels) or “accept plus” from the other AUS.
(iii)
All data pertaining to the mortgage is complete and accurate, and all data on which the underwriting
decision recommended by the other AUS was based remain unchanged as of the closing date for such
mortgage.
(iv)
Such mortgages must be documented and closed in accordance with the requirements of the other AUS,
except with respect to the appraisal requirements, as provided in (xiii) below. Verification of all such data
is provided with the delivered mortgage loan file and such verification complies with the requirements of
the other AUS. Lender must take all appropriate action in response to the verification messages/approval
conditions that appear in the “findings” report that the other AUS produces with respect to the related
mortgage loan application prior to the closing of the mortgage, with proper documentation in the loan file.
Lender represents and warrants that copies of all reports generated by the other system will be included in
the loan file, and that Lender is not prohibited from providing such copies.
(v)
With the exception of mortgages that are otherwise eligible for delivery under the Master Agreement or
DU, mortgages receiving a recommendation of “standard accept” (either full or streamlined documentation
levels) or “accept plus” from the other AUS are not eligible for delivery under this Section if the
recommendation (1) includes a requirement for additional fees, credit enhancements, or other special
conditions, except as otherwise expressly provided in (ix) below, or (2) the mortgage insurance coverage
level obtained is lower than required per Fannie Mae’s Selling Guide, even if a reduced level of coverage
is permitted by the other AUS recommendation.
(vi)
Lender and Fannie Mae must mutually agree upon any AUS employed by Lender prior to the delivery of
such mortgages to Fannie Mae.
(vii)
For all mortgages, Lender must enter the borrower’s representative FICO credit score into the appropriate
data field when submitting the mortgage to Fannie Mae in accordance with the Fannie Mae Selling Guide.
(viii)
Except as otherwise provided herein, Lender makes all applicable selling representations and warranties as
required by the Fannie Mae Selling Guide and the Mortgage Selling and Servicing Contract by and
between Lender and Fannie Mae.
Master Agreement MA02373.2
VAR 4 - 1
Amendment 20
(ix)
The provisions of this Variance do not apply to any mortgage that is currently required by Fannie Mae to
be submitted to DU for evaluation (“DU-Only Products”) (e.g., Flexible Mortgages), and such mortgages
must be processed through DU and receive an acceptable recommendation in order to be eligible for
delivery to Fannie Mae, except as follows: if there is a mortgage product available in the other AUS that is
equivalent to a DU-Only Product (as determined by Fannie Mae), then such mortgage is eligible for
delivery to Fannie Mae, subject at delivery to the (1) payment of all loan level price adjustments or special
all-in yield pricing applicable to the equivalent DU-Only Product, and (2) identification by any special
feature code applicable to the equivalent DU-Only Product.
(x)
At delivery, Lender must:
(1)
identify all mortgages underwritten using an AUS other than DU in accordance with this Variance by
inserting the following Special Feature Code(s) on the Loan Schedule or Schedule of Mortgages, as
applicable: (A) “361” for all mortgages, and (B) any other special feature code loan that would be
required if the mortgage had been submitted to DU prior to delivery; and
(2)
pay all applicable loan level price adjustments required under Fannie Mae’s eligibility criteria.
(xi)
Lender shall continue to make all representations and warranties as if such underwriting documentation
complied with the requirements described in the Fannie Mae Selling Guide, as modified by the Master
Agreement or this Variance.
(xii)
Fannie Mae will analyze the credit risks associated with such mortgages and will provide Lender with the
results of this analysis. Upon request, Lender will provide to Fannie Mae any data or information relating
to the mortgages delivered to Fannie Mae that were processed through the other AUS, and Lender
represents and warrants that Lender is not prohibited from providing such data or information to Fannie
Mae. If Fannie Mae’s analysis indicates that a significant number of such Mortgages contained a high risk
of default, Lender and Fannie Mae will work together to identify and implement product or process
changes to reduce the number of such high risk mortgages expected to be delivered during the following
quarter (or, in lieu of product or process changes, Lender and Fannie Mae may discuss prospective price
adjustments to compensate Fannie Mae for the risks associated with such mortgages). If Fannie Mae and
Lender cannot agree on the appropriate actions to be taken during the following quarter to address high
risk mortgages, then Fannie Mae reserves the right to discontinue accepting such mortgages.
(xiii)
With respect to all mortgages underwritten using the other AUS, the property value must be supported by
a written appraisal, in spite of any specific finding by the other AUS that the property appraisal may be
waived or that a property inspection report may be obtained in lieu of an appraisal (i.e., Form 2075 or
equivalent form in the other AUS are not acceptable). The appraisal must conform to one of the following:
(i) an interior and exterior appraisal using the Desktop Underwriter Quantitative Analysis Appraisal
Report (Form 2055) or equivalent form in the other AUS; or (iii) a full appraisal performed in accordance
with the Fannie Mae Selling Guide.
Master Agreement MA02373.2
VAR 4 - 2
Amendment 20
SPECIAL REQUIREMENTS
This Special Requirements Attachment is attached to and made a part of the Master Agreement. Under this
Master Agreement, Lender may sell Mortgages originated in accordance with the following special
requirements. Unless otherwise specified, the following special requirements apply only to conventional, first
lien Mortgages.
TABLE OF CONTENTS
Part A.
Radian Secondary Market Coverage Policy
Part B.
Cross Default Provision
Part C.
GEMICO Supplemental Primary Secondary Market Policy
Master Agreement MA02373.2
SREQ/TOC -1
Part A. Radian Secondary Market Coverage Policy.
Lender may deliver conventional Mortgages to Fannie Mae that are covered by a Radian Guaranty Insurance
Corporation (“Radian”) Secondary Market Coverage Policy (“Secondary Market Policy”). Mortgages delivered
for coverage under this Policy are referred to as Secondary Market Coverage Mortgages (“SMC Mortgages”)
and may be delivered in accordance with the following:
1.
Eligible Products:
Eligible SMC Mortgages must be originated pursuant to standard Fannie Mae
guidelines, as may be amended by this Master Agreement, and are described as follows:
(a)
Eligible SMC Mortgages are limited to the following:
(i)
fixed-rate, level-payment, fully amortizing mortgages;
(ii)
all adjustable rate mortgages originated under Fannie Mae’s standard ARM plans;
(iii)
7- year balloon mortgages;
(iv)
Mortgages with LTVs of 95.01-100% that are Fannie Mae products that Lender is approved to
deliver under this Master Agreement and are approved for SMC;
(v)
Flexible Mortgages that receive an “Eligible” recommendation in Desktop Underwriter and are
otherwise eligible for SMC; and
(vi)
Relocation mortgages, credit union mortgages and such other mortgage products that may be
specifically approved in writing by Radian and are eligible pursuant to standard Fannie Mae
guidelines, as may be amended by this Master Agreement.
(b)
The following Mortgages are ineligible for SMC:
(i)
Mortgages originated under Fannie Mae’s Desktop Underwriter “Expanded Approval with
Timely Payment Rewards” Initiative.
(ii)
Any mortgage that receives an “A Minus” mortgage insurance premium rate from the mortgage
insurer.
2.
Eligible LTV and Primary Mortgage Insurance Coverages:
All SMC Mortgages must have obtained a
mortgage insurance premium rate from the mortgage insurer’s traditional (“A” paper) rate card, and meet
the following requirements:
(a) SMC Mortgages must have mortgage insurance coverage based on the loan-to-value ratio (“LTV”)
of such Mortgage equal to the greater of:
(i)
the minimum level applicable to the Mortgage as required by Fannie Mae, taking into account
any higher the mortgage insurance requirements applicable to any specific mortgage products
(e.g., Flexible Mortgages, etc.), which may be higher than for standard mortgage products, or
Master Agreement MA02373.2
SREQ - Radian Secondary Market Coverage Policy - 1
Amendment 20
(ii)
the minimum applicable SMC eligibility level set forth in Paragraph 2(b) below.
(b)
Notwithstanding any Fannie Mae minimum mortgage insurance requirements to the contrary,
Mortgages must have the following minimum mortgage insurance coverage in order to be eligible for
SMC:
(i)
12% for 80.01 -85% LTVs;
(ii)
17% for 85.01-90% LTVs;
(iii)
25% for 90.01 -95% LTVs; and
(iv)
30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a) above -- refer to
the specific product guidelines or terms and conditions for higher required MI coverage that
may be applicable.)
(v)
Note: Any Mortgage originated with mortgage insurance coverage lower than the minimum
coverage listed above in accordance with a Desktop Underwriter recommendation, either with
or without a loan level price adjustment, is ineligible for SMC.
(c)
Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00% that are originated with
mortgage insurance coverages, per the Selling Guide, that are lower than the required coverage levels
described in Paragraphs 2(a) and (b) above are ineligible for delivery as SMC Mortgages.
3.
Loan Level Price Adjustments:
For all SMC Mortgages, Lender must remit any appropriate loan-level
price adjustments or, if applicable, under an alternative all-in yield option (product-specific guaranty fee).
Under the all-in yield option, the SMC execution improvement will be deducted from the product-specific
guaranty fee.
4.
Seasoning Requirements:
No SMC Mortgage may have been originated more than 12 months prior to
delivery to Fannie Mae.
5.
Additional Requirements:
(a)
All SMC Mortgages delivered to Fannie Mae must be covered by standard Radian primary mortgage
insurance, which premiums must be paid in installments by the borrower (i.e. it may not be a single
premium payment or lender-paid).
(b)
If Fannie Mae is unable to obtain coverage under a satisfactory Radian Secondary Market Policy,
then Fannie Mae may discontinue purchasing SMC Mortgages under this Master Agreement ten days
after giving Lender notice.
(c)
Lender represents and warrants that no SMC Mortgage it delivers pursuant to this Master Agreement
at the time of acquisition by Fannie Mae is: (i) insured at rates other than standard borrower-paid
rates; (ii) included in a captive reinsurance arrangement with
Master Agreement MA02373.2
SREQ - Radian Secondary Market Coverage Policy - 2
Amendment 20
Radian, or covered by a GSE pool insurance policy issued by, Radian or some other Radian risk-
sharing plan; (iii) insured under a Radian “Life of Loan” policy; (iv) insured under any “A Minus”
premium rate plan, or (v) a UCC financed (i.e., non-real-property) Manufactured Housing Loan.
(d)
Each SMC Mortgage delivered to Fannie Mae under this Master Agreement must be originated using
the applicable Fannie Mae/Freddie Mac Uniform Security Instrument (with effective date on or after
01/01).
(e)
Lender will be permitted to deliver SMC Mortgages to Fannie Mae under this Master Agreement that
are eligible for coverage under the Radian Secondary Market Policy for the period commencing with
Lender’s first delivery of SMC Mortgages and ending on the expiration date of the Master
Agreement. Notwithstanding the foregoing, Fannie Mae may cease purchasing such SMC Mortgages
under this Master Agreement 60 days after giving Lender written notice of cessation.
(f)
Lender represents and warrants that: (i) it has a currently existing standard primary mortgage
insurance master policy with Radian and that it shall maintain such policy with Radian as long as it
continues to sell or service SMC Mortgages covered by the Radian Secondary Market Policy, or (ii)
concurrent with the sale of SMC Mortgages to Fannie Mae, it will transfer servicing to a servicer that
has a standard primary mortgage insurance master policy with Radian and that has agreed with
Fannie Mae to maintain such policy with Radian as long as it services SMC Mortgages covered by
the Radian Secondary Market Policy.
(g)
With respect to each SMC Mortgage, Lender must maintain in effect (subject to Fannie Mae’s
policies) the original certificate or electronic record evidencing coverage under its Radian standard
primary mortgage insurance master policy. Lender represents and warrants that any transfers of
servicing of SMC Mortgages covered by this provision shall only be to a servicer that has an existing
standard primary mortgage insurance master policy with Radian and Lender shall notify the
transferee that transferee will be obligated to Fannie Mae to maintain the original certificate number.
Furthermore, Lender must comply with all of the remittance and claim filing requirements related to
the Radian standard primary mortgage insurance master policy.
6.
Cash Delivery Procedures
: SMC Mortgages eligible for coverage under the Radian Secondary Market
Policy must be delivered under branch number 23227-003-9 or 24837-002-5 which will identify the
Mortgages as SMC Mortgages. The SMC Mortgages are being delivered to Fannie Mae on a negotiated
basis and therefore should not be committed through Desktop Trader®. Lender should use eCommitting to
commit SMC Mortgages for cash delivery, if available. If not, then Lender must call the Cash
Commitment Window at 1-800-752-1080 to deliver such SMC Mortgages and press selection #5,
Negotiated Pricing. Please notify the Commitment Analyst that Lender is delivering SMC Mortgages
covered by the Radian Secondary Market Coverage Policy.
7.
SMC Mortgages described in this Part of the Special Requirements section that are delivered for MBS
must be delivered under Pool Purchase Contract No(s).
A06743, A06303, A06304, A06305, A06809,
A06811, and A06901
.
Master Agreement MA02373.2
SREQ - Radian Secondary Market Coverage Policy - 3
Amendment 20
8.
Mortgages Ineligible for Secondary Market Policy Coverage:
In the event a mortgage delivered as an
SMC Mortgage is determined by Radian to be ineligible for Radian Secondary Market Policy coverage,
then Fannie Mae may require either that Lender immediately (i) repurchase such mortgage, or (ii) remit to
Fannie Mae an amount equal to the present value of the difference between the base guaranty fee under the
applicable Pool Purchase Contract referenced above and the base guaranty fee which would have been
applicable to the mortgage if delivered without coverage under the Radian Secondary Market Policy,
multiplied by the issue date principal balance of the mortgage.
Master Agreement MA02373.2
SREQ - Radian Secondary Market Coverage Policy - 4
Amendment 20
Part B. Cross Default Provision
This Special Requirements provision sets out in more detail the specific requirements for Crescent Bank and
Trust Company and Crescent Mortgage Services (defined individually and jointly as “Lender or Lenders”).
Fannie Mae and Crescent Bank and Trust Company and Crescent Mortgage Services acknowledge and agree
that Crescent Bank and Trust Company and Crescent Mortgage Services may deliver eligible Mortgages under
this Master Agreement subject to the following additional provisions:
•
For all provisions in this Master Agreement, all references to “Lender” shall be defined to include and
refer to both Crescent Bank and Trust Company and Crescent Mortgage Services, jointly and severally.
•
All eligible Mortgages which are sold and delivered to Fannie Mae by Crescent Bank and Trust Company
and Crescent Mortgage Services shall be delivered under the respective Seller/Servicer Numbers. For
example, Crescent Bank and Trust Company shall deliver eligible Mortgages under its Seller/Servicer
Number 23227-000-4 and Crescent Mortgage Services shall deliver eligible Mortgages under its
Seller/Servicer Number 24837-000-9.
•
Lenders acknowledge and agree that all of the eligible Mortgages delivered by either Lender shall not be
co-mingled or pooled with each other. All pools delivered pursuant to this Agreement must be Single
Lender pools, as defined in the Selling Guide. The delivery of Mortgages from either Lender are subject to
the same terms and conditions specified in this Agreement, including the same variances, if any, contained
herein.
•
Each Lender shall be jointly and severally liable to Fannie Mae for all representations and warranties
under this Agreement, their individual Fannie Mae Seller and Servicer Contracts and the Fannie Mae
Selling and Servicing Guides. The obligations of each Lender set forth herein and in the Selling and
Servicing Guides shall apply with regard to those pool documentation packages and eligible Mortgages
delivered by such Lender, and either Lender shall be jointly and severally liable for the failure of the other
Lender to meet is obligations as set forth herein and in the Guides, including, but not limited to the
obligation of each Lender to deliver the mandatory commitment amount.
Master Agreement MA02373.2
SREQ - Cross Default Provision - 1
Amendment 20
Part C. GEMICO Supplemental Primary Secondary Market Policy.
Lender may deliver conventional Mortgages to Fannie Mae that are covered by a GE Mortgage Insurance
Corporation (“GEMICO”) Supplemental Primary Secondary Market Policy (“Secondary Market Policy”).
Mortgages delivered for coverage under this Policy are referred to as Secondary Market Coverage Mortgages
(“SMC Mortgages”) and may be delivered in accordance with the following:
1.
Eligible Products
: Eligible SMC Mortgages must be originated pursuant to standard Fannie Mae
guidelines, as may be amended by this Master Agreement, and are described as follows:
(a)
Eligible SMC Mortgages are limited to the following:
(i)
fixed-rate level-payment, fully amortizing Mortgages;
(ii)
7-year balloon Mortgages;
(iii)
5/1 ARMs, 7/1 ARMs, and 10/1 ARMs (Fannie Mae’s standard ARM plans); or
(iv)
Mortgages with LTVs of 95.01-100% that are Fannie Mae products that Lender is approved to
deliver under this Master Agreement and are approved for SMC;
(v)
Flexible Mortgages that receive an “Eligible” recommendation in Desktop Underwriter and are
otherwise eligible for SMC; and
(vi)
such other mortgage products that may be specifically approved in writing by GEMICO and
are eligible pursuant to standard Fannie Mae guidelines, as may be amended by this Master
Agreement.
(b)
The following Mortgages are ineligible for SMC:
(i)
Mortgages originated under Fannie Mae’s Desktop Underwriter “Expanded Approval with
Timely Payment Rewards” Initiative.
(ii)
Any mortgage that receives an “A Minus” mortgage insurance premium rate from the mortgage
insurer.
2.
Eligible LTV and Primary Mortgage Insurance Coverages:
All SMC Mortgages must have obtained a
mortgage insurance premium rate from the mortgage insurer’s traditional (“A” paper) rate card, and meet
the following requirements:
(a) SMC Mortgages must have mortgage insurance coverage based on the loan-to-value ratio (“LTV”)
of such Mortgage equal to the greater of:
(i)
the minimum level applicable to the Mortgage as required by Fannie Mae, taking into account
any higher mortgage insurance requirements applicable to any specific mortgage products (e.g.,
Flexible Mortgages, etc.), which may be higher than for standard mortgage products; or
(ii)
the minimum applicable SMC eligibility level set forth in Paragraph 2(b) below.
Master Agreement MA02373.2
SREQ - GEMICO Supplemental Primary Secondary Market Policy 07/02 - 1
Amendment 20
(b)
Notwithstanding any Fannie Mae minimum mortgage insurance requirements to the contrary,
Mortgages must have the following minimum mortgage insurance coverage in order to be eligible for
SMC:
(i)
12% for 80.01-85% LTVs;
(ii)
17% for 85.01-90% LTVs;
(iii)
25% for 90.01-95% LTVs; and
(iv)
30% for 95.01-100% LTVs (must be eligible Mortgages, per Paragraph 1(a) above — refer to
the specific product guidelines or terms and conditions for any higher required MI coverage
that may be applicable.)
(v)
Note: Any Mortgage originated with mortgage insurance coverage lower than the minimum
coverage listed above in accordance with a Desktop Underwriter recommendation, either with
or without a loan level price adjustment, is ineligible for SMC.
(c)
Certain mortgages with terms of 20 years or less and LTVs of 80.01-90.00% that are originated with
mortgage insurance coverages, per the Selling Guide, that are lower than the required coverage
levels described in Paragraphs 2(a) and (b) above are ineligible for delivery as SMC Mortgages.
3.
Loan Level Price Adjustments:
For all SMC Mortgages, Lender must remit any appropriate loan-level
price adjustments or, if applicable, under an alternative all-in yield option (product-specific guaranty fee).
Under the all-in yield option, the SMC execution improvement will be deducted from the product-specific
guaranty fee.
4.
Seasoning Requirements:
No SMC Mortgage may have been originated more than 12 months prior to
delivery to Fannie Mae nor have been originated prior to September 1, 2001.
5.
Additional Requirements:
(a)
All SMC Mortgages delivered to Fannie Mae must be covered by standard GEMICO primary
mortgage insurance, which premiums must be paid in installments by the borrower under a single-
premium, annual premium, monthly premium or “zero monthly” payment plan. Premiums may not
be lender-paid.
(b)
If Fannie Mae is unable to obtain coverage under a satisfactory GEMICO Secondary Market Policy,
then Fannie Mae may discontinue purchasing SMC Mortgages under this Master Agreement ten days
after giving Lender notice.
(c)
Lender represents and warrants that no SMC Mortgage it delivers pursuant to this Master Agreement
at the time of acquisition by Fannie Mae is: (i) included in a captive reinsurance arrangement
between Lender and GEMICO, or covered by a GSE pool insurance policy issued by GEMICO or
some other GEMICO risk-sharing or profit sharing arrangement; (iii) insured under any GEMICO
“A Minus” or “Alt A” premium
Master Agreement MA02373.2
SREQ - GEMICO Supplemental Primary Secondary Market Policy 07/02 - 2
Amendment 20
rate plan, (iv) insured under any GEMICO policy with primary mortgage insurance premiums
pursuant to affinity rates, credit union rates or relocation rates, or (v) insured with GEMICO
discounted mortgage insurance rates.
(d)
Each SMC Mortgage delivered to Fannie Mae under this Master Agreement must be originated using
the applicable Fannie Mae/Freddie Mac Uniform Security Instrument (with effective date on or after
01/01).
(e)
Lender will be permitted to deliver SMC Mortgages to Fannie Mae under this Master Agreement that
are eligible for coverage under the GEMICO Secondary Market Policy for the period commencing
with Lender’s first delivery of SMC Mortgages and ending on the expiration date of the Master
Agreement. Notwithstanding the foregoing, Fannie Mae may cease purchasing such SMC Mortgages
under this Master Agreement 60 days after giving Lender written notice of cessation.
(f)
Lender represents and warrants that: (i) it has a currently existing standard primary mortgage
insurance master policy with GEMICO and that it shall maintain such policy with GEMICO as long
as it continues to sell or service SMC Mortgages covered by the GEMICO Secondary Market Policy,
or (ii) concurrent with the sale of SMC Mortgages to Fannie Mae, it will transfer servicing to a
servicer that has a standard primary mortgage insurance master policy with GEMICO and that has
agreed with Fannie Mae to maintain such policy with GEMICO as long as it services SMC
Mortgages covered by the GEMICO Secondary Market Policy.
(g)
With respect to each SMC Mortgage, Lender must maintain in effect (subject to Fannie Mae’s
policies) the original certificate or electronic record evidencing coverage under its GEMICO
standard primary mortgage insurance master policy. Lender represents and warrants that any
transfers of servicing of SMC Mortgages covered by this provision shall only be to a servicer that
has an existing standard primary mortgage insurance master policy with GEMICO and Lender shall
notify the transferee that transferee will be obligated to Fannie Mae to maintain the original
certificate number. Furthermore, Lender must comply with all of the remittance and claim filing
requirements related to the GEMICO standard primary mortgage insurance master policy.
6.
Cash Delivery Procedures:
SMC Mortgages eligible for coverage under the GEMICO Secondary
Market Policy must be delivered under branch number 23227-003-9 or 24837-002-5 which will identify
the Mortgages as SMC Mortgages. The SMC Mortgages are being delivered to Fannie Mae on a
negotiated basis and therefore should not be committed through Desktop Trader®. Lender should use
eCommitting to commit SMC Mortgages for cash delivery, if available. If not, then Lender must call the
Cash Commitment Window at 1-800-752-1080 to deliver such SMC Mortgages and press selection #5,
Negotiated Pricing. Please notify the Commitment Analyst that Lender is delivering SMC Mortgages
covered by the GEMICO Choice Coverage Secondary Market Policy.
7.
SMC Mortgages described in this Part of the Special Requirements section that are delivered for MBS
must be delivered under Pool Purchase Contract No(s).
A06305, A06809, and A06811.
Master Agreement MA02373.2
SREQ - GEMICO Supplemental Primary Secondary Market Policy 07/02 - 3
Amendment 20
8.
Mortgages Ineligible for Secondary Market Policy Coverage:
In the event a mortgage delivered as an
SMC Mortgage is determined by GEMICO to be ineligible for GEMICO Secondary Market Policy
coverage, then Fannie Mae may require either that Lender immediately (i) repurchase such mortgage, or
(ii) remit to Fannie Mae an amount equal to the present value of the difference between the base guaranty
fee under the applicable Pool Purchase Contract referenced above and the base guaranty fee which would
have been applicable to the mortgage if delivered without coverage under the GEMICO Secondary Market
Policy, multiplied by the issue date principal balance of the mortgage.
Master Agreement MA02373.2
SREQ - GEMICO Supplemental Primary Secondary Market Policy 07/02 - 4
Amendment 20
FIXED-RATE PRODUCT ATTACHMENT
This Fixed-Rate Product Attachment for FHA/VA or conventional fixed-rate, level-payment residential
mortgage loans (“Fixed-Rate Mortgages”) is attached to and made a part of the Master Agreement.
Variances, Special Products, and Special Requirements Applicable to Fixed-Rate Mortgages
Please refer to the attachments under the “Variances” tab, the “Special Requirements” tab, the “Housing and
Community Development” tab, and the “HomeStyle” tab, as applicable, for eligibility for variances, special
products, and special requirements.
MBS Guaranty Fee and Buyup/Buydown Information
The guaranty fee due to Fannie Mae for any Mortgage sold under any MBS Contract shall be at the annual rate
specified in the applicable MBS Contract, payable monthly, after giving effect to any reduction of the guaranty
fee through use of the MBS Express remittance cycle, if applicable. In addition, the guaranty fee will be set
before giving effect to (i) any reduction of the guaranty fee through use of the rapid payment method of
remittances, if applicable, and (ii) any increases or decreases of the guaranty fee relating to any buyups or
buydowns of such fee, if applicable.
Lender must choose the applicable Buyup/Buydown Grid posting, “Early” or “Late,” by contacting its customer
account team in its lead regional office, prior to the “Early” grid posting. If Lender fails to notify its lead
regional office of its grid selection before the “Early” grid is posted, Fannie Mae will assume that Lender has
selected the “Early” posting grid. Lender’s grid selection will apply to all MBS pools that it sells under the same
MBS Contract. Ratios for products or note rates that are not included in the regular posting may be negotiated
through Lender’s lead regional office.
Master Agreement MA02373.2
FRM - 1
Contract No. A06303.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Crescent Mortgage Services
Lender Number: 23227-000-4
23227-003-9
24837-002-5
Eligible Products:
10- 15- 20- 25- and 30-year fixed-rate level-payment
mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$2,500,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 – March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
460 - MyCommunityMortgage, 481 - MCM Teacher
Suite Product, and Per Selling Guide, Guide to
Underwriting with Desktop Underwriter and applicable
attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Radian Secondary Market Coverage required.
MyCommunityMortgage: Community 97.
Pool Purchase Contract No. A06303.2
FRM - 1
Amendment 20
Contract No. A06303.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10-, 15-, 20-, 25- and 30-year fixed rate level-
payment mortgages
Earliest and Latest Issue Dates for Pools formed under
this Contract:
N/A *
Guaranty Fee:
20.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06303.2
FRM - 2
Amendment 20
Contract No. A06304.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Crescent Mortgage Services
Lender Number: 23227-000-4
23227-003-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$2,500,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 – March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
480 - MCM Community100 Plus, 481 - MCM Teacher
Suite Product, and Per Selling Guide, Guide to
Underwriting with Desktop Underwriter and applicable
attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
30-year Fixed-Rate Mortgages for MyCommunityMortgage: Community 100 Plus and Community
Solutions 100 with Radian Secondary Market Coverage.
Pool Purchase Contract No. A06304.2
FRM - 1
Amendment 20
Contract No. A06304.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed under
this Contract:
N/A *
Guaranty Fee:
25.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06304.2
FRM - 2
Amendment 20
Contract No. A06305.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Crescent Mortgage Services
Lender Number: 23227-000-4
23227-003-9
24837-002-5
Eligible Products:
20-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$2,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
January 1, 2003 – March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
361 - 3rd Autom U-Writng SYS, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
20-year Fixed-Rate Mortgages >80% LTV with Radian and GEMICO Secondary Market Coverage.
Pool Purchase Contract No. A06305.2
FRM - 1
Amendment 20
Contract No. A06305.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
20-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed under
this Contract:
N/A *
Guaranty Fee:
14.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06305.2
FRM - 2
Amendment 20
Contract No. A06808.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Crescent Mortgage Services
Lender Number: 23227-000-4
23227-003-9
24837-002-5
Eligible Products:
20-, 25-, and 30-year fixed-rate level-payment
mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$25,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
January 1, 2003 – March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
340 - Level I Expanded Approval, 341 - Level II
Expanded Approva, 342 - Level III Expanded
Approv, 361 - 3rd Autom U-Writng SYS 376 - Level
III TPR, 459 - Level II Timely Payment R, and Per
Selling Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
20-, 25-, and 30-year Fixed Rate Mortgages with LTVs <= 80%.
Pool Purchase Contract No. A06808.2
FRM - 1
Amendment 20
Contract No. A06808.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
20-, 25- and 30-year fixed-rate level-payment
mortgages
Earliest and Latest Issue Dates for Pools formed under
this Contract:
N/A *
Guaranty Fee:
15.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06808.2
FRM - 2
Amendment 20
Contract No. A06809.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Crescent Mortgage Services
Lender Number: 23227-000-4
23227-003-9
24837-002-5
Eligible Products:
20-, 25- and 30-year fixed-rate level-payment
mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$10,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
January 1, 2003 – March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
361 - 3rd Autom U-Writng SYS, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
20-, 25-, and 30-year Fixed Rate Mortgages with LTVs > 80% with Radian and GEMICO Secondary Marketing
Coverage.
Pool Purchase Contract No. A06809.2
FRM - 1
Amendment 20
Contract No. A06809.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
20-, 25- and 30-year fixed-rate level-payment
mortgages
Earliest and Latest Issue Dates for Pools formed under
this Contract:
N/A *
Guaranty Fee:
10.50 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06809.2
FRM - 2
Amendment 20
Contract No. A06810.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Crescent Mortgage Services
Lender Number: 23227-000-4
23227-003-9
24837-002-5
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$25,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
January 1, 2003 – March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
340 - Level I Expanded Approval, 341 - Level II
Expanded Approva, 342 - Level III Expanded
Approv, 361 - 3rd Autom U-Writng SYS, 376 - Level
III TPR, 459 - Level II Timely Payment R, and Per
Selling Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
10- and 15-Year Fixed Rate Mortgages with LTVs <= 80%.
Pool Purchase Contract No. A06810.2
FRM - 1
Amendment 20
Contract No. A06810.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed under
this Contract:
N/A *
Guaranty Fee:
13.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06810.2
FRM - 2
Amendment 20
Contract No. A06811.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Crescent Mortgage Services
Lender Number: 23227-000-4
23227-003-9
24837-002-5
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$10,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
January 1, 2003 – March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
361 - 3rd Autom U-Writng SYS, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
10- and 15-Year Fixed Rate Mortgages with LTVs > 80% with Radian and GEMICO Secondary Marketing
Coverage.
Pool Purchase Contract No. A06811.2
FRM - 1
Amendment 20
Contract No. A06811.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10- and 15-year fixed-rate level-payment
mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
N/A *
Guaranty Fee:
13.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06811.2
FRM - 2
Amendment 20
August 2002
Housing and Community Development
Index
These Housing and Community Development Terms and Conditions(s) are attached to and made a part of the
Master Agreement (the “Agreement”). The Lender and Fannie Mae agree that, except as provided below, all
other requirements of the Fannie Mae Selling and Servicing Guides shall be followed. Any provision specified
below may be amended by Fannie Mae’s issuance to Lender of an “Announcement of Approval.” Capitalized
terms used but not defined herein shall have the meanings set forth in the Agreement.
The appropriate Special Feature Code (“SFC”) as indicated below must be entered on the Schedule of
Mortgages (Form 2005) or Loan Schedule (Form 1068), as applicable.
Under this Master Agreement, Lender may deliver the following:
Special Initiatives
MyCommunityMortgage
SM
; Community 97
SM
Mortgages (SFC “460”) as described in the attached terms and
conditions.
MyCommunityMortgage
SM
; Community 100 Plus
SM
Mortgages (SFC “480”) as described in the attached terms
and conditions.
MyCommunityMortgage
SM
; Community Solutions
SM
100 Mortgages (SFC “481”) as described in the attached
terms and conditions.
Master Agreement MA02373.2
HCD - 1
August 2002
Fannie Mae
MyCommunityMortgage
SM
; Community 97
Terms and Conditions
The following terms and conditions apply to certain Mortgages (described below), which are eligible for
purchase for cash or MBS under Fannie Mae’s MyCommunityMortgage
SM
pilot (“MyCommunityMortgage”)
for the Community 97
SM
option. The term “Lender” refers to the Fannie Mae seller/servicer to which these
terms and conditions are being issued. Except as provided herein, all other requirements of the Selling Guide (as
updated) must be followed.
1.
Loan-to-Value Ratio
The maximum loan-to-value ratio (“LTV”) is 97%, or 90% if the property is a cooperative, which
percentage is calculated from the lower of the sales price or the appraised value of the property.
2.
Eligible Properties
Eligible properties are owner-occupied, principal residences that consist of one unit, including
manufactured housing and units in condominiums and planned unit developments (“PUDs”) and
cooperatives that conform with any related Fannie Mae requirements. With respect to units in
cooperatives, Lender must have received specific authority to deliver mortgages on cooperatives to Fannie
Mae. Both existing structures and new construction are eligible.
3.
Borrower Income
The borrower’s income may not exceed 100% of the median income that HUD publishes for the
property’s location, except for (i) higher income limits allowed for certain high-cost areas as specified in
the Selling Guide, and (ii) an income limit of 115% of the HUD-published median in nonmetropolitan
counties and (iii) borrower incomes imposed by other organizations (such as when a housing finance
agency or an employer provides down payment or closing cost assistance), as specified in the Selling
Guide.
Borrower income limitations are not applicable, however, in neighborhoods that qualify as
FannieNeighbors® locations; FannieNeighbors locations are specified in the Selling Guide. (A geocoding
service is currently available on Fannie Mae’s web site, www.efanniemae.com, to assist lenders in
determining whether a particular property is in an eligible FannieNeighbors area.)
4.
Eligible Mortgages
The Mortgage must be a conventional fixed-rate, fully amortizing mortgage with a term of 30 years or
less, or a 7/1 adjustable-rate mortgage (Fannie Mae Plans 750 or 751). In addition, 10/1 adjustable-rate
mortgages (Fannie Mae Plans 1423 and 1437) are permitted, but usage is subject to the limitation noted in
the Section below entitled, ”Pricing for Cash Deliveries.”
5.
Underwriting
Lender may underwrite the Mortgage through Desktop Underwriter (“DU”) using the Community Lending
product screens, by entering the Mortgage as a Fannie 97 Mortgage. If the DU finding is “
Approve/Eligible,” the waiver of representations and warranties as granted under DU is applicable for the
Mortgage, except that the requirement for mortgage insurance in Section 12 below (“Mortgage Insurance”)
is not modified irrespective of any DU message. If the DU finding
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 97-1
Amendment 20
is “Approve/Ineligible,” the waiver of representations and warranties as granted under DU is applicable,
except that Lender is responsible for determining that the Mortgage meets all the eligibility criteria for
Community 97 as specified in the eligibility matrix in
Attachment A
attached hereto. If the DU finding is
other than “Approve/Eligible” or “Approve/Ineligible,” or if there is an “Expanded Approval” finding of
any kind, manual (non-DU) underwriting is required. Furthermore, nontraditional credit histories will also
require manual underwriting. There will be no DU fee charged if the original DU submission of the
Mortgage is made through the Community Lending product screens.
For non-DU manual underwriting or manual underwriting that results from a DU finding other than
“Approve/Eligible” or “Approve/Ineligible,” in addition to the limitations or flexibilities specified herein,
MyCommunityMortgage allows the underwriting flexibilities of Fannie Mae’s community lending
guidelines, including Fannie Mae’s Community Home Buyer’s Program
SM
model, except that the
maximum underwriting ratio shall be 41 percent for the total-expenses-to-income ratio (“single
qualifying” ratio, rather than separate housing-expense-to-income and total-expenses-to-income ratios).
6.
Minimum Down Payment
The minimum down payment, the source of which must be from the borrower’s own funds and which is
calculated as a percentage of the sales price of the property, shall be the lesser of 1.00% or $500.00, except
for cooperatives for which the minimum down payment is 3.00%.
7.
Flexible Sources for Borrower Contribution and/or Closing Costs/Prepaids
Funds for the borrower’s down payment (except for funds required to be made from the borrower’s own
funds) and/or funds for closing costs and/or prepaid items may be obtained from the “sources of
borrower’s funds” as permitted under the Selling Guide, as well as any combination of the following
sources (and any amount of the borrower’s contribution in excess of the amount needed to pay closing
costs and/or prepaid items must be applied towards down payment):
1.
Gift from a relative (for purposes of MyCommunityMortgage, a relative is defined as the borrower’s
spouse, child, dependent, domestic partner, fiance, fiancee, or any other individual related to the
borrower by blood, marriage, adoption or legal guardianship).
2.
Unsecured loan or grant from a governmental entity, the borrower’s employer or a nonprofit
organization (including churches, but a credit union is not considered to be a nonprofit organization
for the purpose of this paragraph).
3.
Secured loan that complies with the terms for Community Seconds mortgages.
4.
The following sources may only be used for closing costs and/or prepaid items and may not be used
as funds for the borrower’s down payment:
•
Unsecured loan from Lender in accordance with the requirements below:
•
Lender may finance closing costs with personal (unsecured) loans, provided that the
applicable Fannie Mae regional office reviews and approves Lender’s unsecured loan
program in the context of Lender’s Community Reinvestment Act (“CRA”) and Home
Mortgage Disclosure Act (“HMDA”) efforts.
•
The interest rate to the borrower must not be greater than the note rate of the first
Mortgage, but the regional office may approve rates of up to two percentage points above
the first Mortgage rate. In all instances, credit card financing and loans from overdraft
protection on checking accounts are not permissible. In addition, Lender may not charge
a borrower in this scenario any origination fees, discount points, interest rate, or other
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 97-2
Amendment 20
fees greater than those charged to other high loan-to-value ratio customers.
•
Monthly payments for the personal loan must be taken into account in both the total
obligations-to-income ratio and the housing expense-to-income ratio. The unsecured loan
must be a fully amortizing term loan, with a fixed-rate and fixed-payments. (No variable-
rate, variable-payment, or balloon loans are permitted.)
•
Lender’s participation under this section must be specifically approved in advance by the
applicable regional office.
•
A copy of the unsecured loan documents must be placed in the loan file.
•
“Interested party” contribution, as permitted in accordance with the Selling Guide; provided,
however, such interested party contribution may not in any event exceed 3.00% of the lesser of
the sales price or appraised value of the property.
•
“Premium pricing” in accordance with the requirements below:
•
Lender may use the proceeds (referred to herein as the “Premium Pricing Proceeds”) that
result from the sale of the Mortgage at a premium, with an interest rate that is in excess of
the then-current market interest rate for like product.
•
The limitations contained in the Selling Guide relating to contributions by interested
parties shall not apply to the Premium Pricing Proceeds.
8.
Reserves
Where the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or
“Approve/Ineligible,” Lender must verify the availability of liquid assets only as directed by DU. For non-
DU manual underwriting or manual underwriting that results from a DU finding other than
“Approve/Eligible” or “Approve/Ineligible,” Lender need not verify that the borrower has any minimum
level of liquid assets in reserve at closing.
9.
Eligible Loan Purpose
All Mortgages must be originated simultaneously under (i) a purchase money transaction or (ii) a “no
cash-out” refinance transaction where the refinance mortgage is equal to the outstanding principal balance
of the existing first mortgage (except that the amount may be rounded up to the next $100 increment).
10.
Subordinate Financing
Subordinate financing must comply with the terms for Community Seconds® mortgages, except that the
requirement contained therein for a down payment from the borrower’s own funds shall be governed by
Section 6 above (“Minimum Down Payment”) for the particular option.
11.
Credit History
If the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or
“Approve/Ineligible,” Lender does not need to evaluate the borrower’s credit history as set forth below.
For non-DU manual underwriting, or manual underwriting that results from a DU finding of other than
“Approve/Eligible” or “Approve/Ineligible,” Lender must evaluate the borrower’s credit history using any
one of the four options set forth below:
(a)
Lender supplements its manual underwriting by obtaining a “representative” credit score (per the
Selling Guide) on the borrower that is not less than 600.
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 97-3
Amendment 20
(b)
Lender does not request a “representative” credit score on the borrower, but instead underwrites the
Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending
mortgages coupled with the development of an acceptable
traditional
credit profile (under Part X,
Section 304.01 of the Selling Guide), or if applicable, an acceptable
nontraditional
credit profile
(under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior
bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the
requirements of Part X, Section 803.02 of the Selling Guide.
(c)
Where Lender requests a “representative” credit score on the borrower, but the borrower has no
score due to no credit record with the repository, Lender underwrites the Mortgage using the
underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled
with the development of an acceptable
nontraditional
credit profile (under Part X, Section 304.02 of
the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his
or her credit history must have reestablished credit that satisfies the requirements of Part X, Section
803.02 of the Selling Guide.
(d)
Where Lender obtains a “representative” credit score on the borrower, but the score is less than 600,
Lender underwrites the Mortgage using any one of the three options set forth below; provided,
however, the borrower will not be eligible where eligibility could only be achieved by combining the
following options (for example, “extenuating circumstances” may not be used to compensate for
deficiencies upon application of the criteria for nontraditional credit history):
(1)
The borrower has an insufficient traditional credit history (as documented by reason codes
showing lack of credit accounts, accounts not opened long enough, or lack of usage as the
reasons for the low “representative” credit score), and Lender underwrites the Mortgage using
the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages
coupled with the development of an acceptable
nontraditional
credit profile (under Part X,
Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior
bankruptcy or foreclosure in his or her credit history must have reestablished credit that
satisfies the requirements of Part X, Section 803.02 of the Selling Guide.
(2)
Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling
Guide for Community Lending mortgages coupled with the development of an acceptable
traditional
credit profile (under Part X, Section 304.01 of the Selling Guide). Provided,
however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must
have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling
Guide.
(3)
The borrower’s credit history was heavily influenced by credit deficiencies that were the result
of a documented “extenuating circumstance,” and the borrower’s credit history has been
reestablished and meets the conditions specified in the Selling Guide for the reestablishment of
an acceptable credit history following an “extenuating circumstance” (under Part X, Section
803.02 of the Selling Guide).
In no circumstance may a nontraditional credit evaluation be used to offset derogatory credit.
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 97 - 4
Amendment 20
12.
Mortgage Insurance
MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will obtain “secondary
market coverage” (“SMC”) must also comply with the “secondary market policy” terms of the “Special
Requirements” section of this Master Agreement (“SMC Eligible Mortgages”). Lender must comply with
the eligibility requirements as determined by the applicable mortgage insurer. In addition, SMC Eligible
Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no.
A06303, and (ii) if delivered under Cash Delivery, must be delivered under seller/servicer branch no.
23227-003-9 or 24837-002-5. For SMC Eligible Mortgages, individual loan mortgage insurance providing
35% coverage is required on all Mortgages where the LTV is above 80%. SMC Eligible
MyCommunityMortgage Mortgages may be covered under “A Paper” or “A-Minus” mortgage insurance
premium rates as determined by the eligibility requirements of the applicable mortgage insurer.
Fannie Mae anticipates that all SMC Eligible Mortgages will be delivered for coverage under SMC.
Nevertheless, with respect to Mortgages that do not comply with the eligibility requirements of the
applicable mortgage insurer for such “secondary market policy” terms or that are not otherwise delivered
for coverage under SMC (collectively, “Non-SMC Mortgages”), individual loan mortgage insurance
coverage is required as follows:
•
LTV is 90.01% - 97.00%: 35%
•
LTV is 85.01% - 90.00%: 30%
•
LTV is 80.01% - 85.00%: 25%
Non-SMC Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase
Contract no. to be determined, and (ii) if delivered under Cash Delivery, must be delivered under
seller/servicer branch no. 23227-000-4 or 24837-000-9.
Note: SMC Eligible Mortgages and Non-SMC Mortgages may NOT be delivered under the same Pool
Purchase Contract (if delivered under MBS Delivery), or under the same seller/servicer branch no. (if
delivered under Cash Delivery). Nevertheless, SMC Eligible Mortgages may be delivered under the same
Pool Purchase Contract or the same seller/servicer branch no. used with non-MyCommunityMortgage
loans that comply with, and are delivered in connection with, the “secondary market policy” terms of the
“Special Requirements” section of this Master Agreement.
13.
Homebuyer Education
All first-time borrowers must complete homebuyer education according to the provisions of the Selling
Guide for prepurchase homebuyer education.
14.
Delinquency Counseling
For all borrowers, Lender must follow the requirements of the Selling Guide and the Servicing Guide for
postpurchase early delinquency counseling.
15.
Allocation
These terms and conditions do not contain a specific limitation on the aggregate principal amount of
Mortgages that Lender may deliver or a date (other than the applicable Expiration Date) by which Lender
must deliver the Mortgages. However, in order to be able to efficiently allocate the resources that Fannie
Mae has made available for this pilot, Fannie Mae may from time to time and at any time set a limit on the
aggregate principal amount of Mortgages that Lender may deliver or terminate Lender’s ability to deliver
Mortgages under this pilot. If, after giving consideration to the aggregate principal amount of Mortgages
that Lender has delivered and to the
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 97 - 5
Amendment 20
aggregate principal amount of commitments for such Mortgages that Lender has made, Fannie Mae elects
to set a limit or terminate Lender’s participation, Fannie Mae will give Lender at least 90 days prior
written notice of its intent to do so.
16.
Pricing for Cash Deliveries
Cash pricing is available through the MORNET Bulletin section of MORNET Manager. The MORNET
Bulletin for Cash Pricing is contained in the Secondary Marketing section (Fannie Mae Pricing; Cash
Pricing) of MORNET Manager. The selection is “MyCommunityMortgage Products.” The option for
pricing using “Secondary Market Coverage” must be selected for Mortgages delivered for coverage under
SMC, and the option for pricing using “standard” mortgage insurance must be selected for Non-SMC
Mortgages. Cash Pricing screens are available for 30-year fixed-rate mortgages and for 7/1 ARMs (Fannie
Mae Plans 750 and 751). For fixed-rate mortgages with terms of less than 30 years, Lender must contact
Fannie Mae’s Cash Commitment window at 1-800-752-1080, option #5 Negotiated Pricing, and obtain a
negotiated Cash Delivery commitment. For 10/1 ARMs (Fannie Mae Plans 1423 and 1437), screens are
not available, and Lender must contact Fannie Mae’s Cash Commitment window to obtain a negotiated
commitment.
18.
Special Feature Code
For all Mortgages originated under these terms and conditions, Lender is required to enter
Special
Feature Code “460”
on the Loan Schedule (Form 1068) or Schedule of Mortgages (Form 2005).
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 97 - 6
Amendment 20
ATTACHMENT A
MyCommunityMortgage Pilot Eligibility Matrix
Purpose
Occupancy
Other Property
Owned
Non-Occupant Co-
borrower
Units/Type
Maximum LTV
Maximum CLTV
Borrower Income
MM or No Cash-Out
Refinance (Existing
UPB of first mortgage
ounded to the nearest
$100)
Owner-Occupied
None
Not Allowed
One Unit*
97%**
105%
If borrower income
exceeds area median
income limitations,
verify
property is in a
FannieNeighbors
location through Fann
Mae’s geocoding
100%
2 Units
95%
service through
efanniemae.com
*
Includes condos, PUDs, manufactured housing. Coops allowed for Community 97 only. Provided, however,
where EEM guidelines used, no manufactured housing and no coops allowed.
**
90% for coops.
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 97 - 7
Amendment 20
August 2002
Fannie Mae
MyCommunityMortgage
SM
; Community 100 Plus
Terms and Conditions
The following terms and conditions apply to certain Mortgages (described below), which are eligible for
purchase for cash or MBS under Fannie Mae’s MyCommunityMortgage
SM
pilot (“MyCommunityMortgage”)
for the Community 100 Plus
SM
option. The term “Lender” refers to the Fannie Mae seller/servicer to which
these terms and conditions are being issued. Except as provided herein, all other requirements of the Selling
Guide (as updated) must be followed.
1.
Loan-to-Value Ratio
The maximum loan-to-value ratio (“LTV”) is 100%, which percentage is calculated from the lower of the
sales price or the appraised value of the property.
2.
Eligible Properties
Eligible properties are owner-occupied, principal residences that consist of one unit, including
manufactured housing and units in condominiums and planned unit developments (“PUDs”) that conform
with any related Fannie Mae requirements. Both existing structures and new construction are eligible, but
coops are ineligible.
3.
Borrower Income
The borrower’s income may not exceed 100% of the median income that HUD publishes for the
property’s location, except for (i) higher income limits allowed for certain high-cost areas as specified in
the Selling Guide, and (ii) an income limit of 115% of the HUD-published median in nonmetropolitan
counties and (iii) borrower incomes imposed by other organizations (such as when a housing finance
agency or an employer provides down payment or closing cost assistance), as specified in the Selling
Guide.
Borrower income limitations are not applicable, however, in neighborhoods that qualify as
FannieNeighbors” locations; FannieNeighbors locations are specified in the Selling Guide. (A geocoding
service is currently available on Fannie Mae’s web site, www.efanniemae.com, to assist lenders in
determining whether a particular property is in an eligible FannieNeighbors area.)
4.
Eligible Mortgages
The Mortgage must be a conventional fixed-rate, fully amortizing mortgage with a term of 30 years or
less, or a 7/1 adjustable-rate mortgage (Fannie Mae Plans 750 or 751). In addition, 10/1 adjustable-rate
mortgages (Fannie Mae Plans 1423 and 1437) are permitted, but usage is subject to the limitation noted in
the Section below entitled, “Pricing for Cash Deliveries.”
5.
Underwriting
Lender may underwrite the Mortgage through Desktop Underwriter (“DU”) using the Community Lending
product screens, by entering the Mortgage as a Fannie 97 mortgage. If the DU finding is
“Approve/Eligible,” the waiver of representations and warranties as granted under DU is applicable for the
Mortgage, except that the requirement for mortgage insurance in Section 12 (“Mortgage Insurance”)
below is not modified irrespective of any DU message. If the DU finding is “Approve/Ineligible,” the
waiver of representations and warranties as granted under DU is
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 100 Plus - 1
Amendment 20
applicable, except that Lender is responsible for determining that the Mortgage meets all the eligibility
criteria for Community 100 Plus as specified in the eligibility matrix in
Attachment A
attached hereto. If
the DU finding is other than “Approve/Eligible” or “Approve/Ineligible,” or if there is an “Expanded
Approval” finding of any kind, manual (non-DU) underwriting is required. Furthermore, nontraditional
credit histories will also require manual underwriting. There will be no DU fee charged if the original DU
submission of the Mortgage is made through the Community Lending product screens.
For non-DU manual underwriting or manual underwriting that results from a DU finding other than
“Approve/Eligible” or “Approve/Ineligible,” in addition to the limitations or flexibilities specified herein,
MyCommunityMortgage allows the underwriting flexibilities of Fannie Mae’s community lending
guidelines, including Fannie Mae’s Community Home Buyer’s ProgramSM model, except that the
maximum underwriting ratio shall be 41 percent for the total-expenses-to-income ratio (“single
qualifying” ratio, rather than separate housing-expense-to-income and total-expenses-to-income ratios).
6.
Minimum Borrower Contribution
The minimum required contribution by the borrower to the transaction, the source of which must be from
the borrower’s own funds and which is calculated as a percentage of the sales price of the property, shall
be the lesser of 1.00% or $500.00. These funds may be used for closing costs, prepaid items, and/or down
payment, if desired.
7.
Sources for Closing Costs/Prepaids
Funding in addition to the minimum borrower contribution may be obtained from the “sources of
borrower’s funds” as permitted under the Selling Guide, as well as any combination of the following
sources:
1.
Gift from a relative (for purposes of MyCommunityMortgage, a relative is defined as the borrower’s
spouse, child, dependent, domestic partner, fiance, fiancee, or any other individual related to the
borrower by blood, marriage, adoption or legal guardianship).
2.
Unsecured loan or grant from a governmental entity, the borrower’s employer or a nonprofit
organization (including churches, but a credit union is not considered to be a nonprofit organization
for the purpose of this paragraph).
3.
Secured loan that complies with the terms for Community Seconds mortgages.
4.
The following sources may only be used for closing costs and/or prepaid items and may not be used
as funds for the borrower’s down payment:
•
Unsecured loan from Lender in accordance with the requirements below:
•
Lender may finance closing costs with personal (unsecured) loans, provided that the
applicable Fannie Mae regional office reviews and approves Lender’s unsecured loan
program in the context of Lender’s Community Reinvestment Act (“CRA”) and Home
Mortgage Disclosure Act (“HMDA”) efforts.
•
The interest rate to the borrower must not be greater than the note rate of the first
Mortgage, but the regional office may approve rates of up to two percentage points above
the first Mortgage rate. In all instances, credit card financing and loans from overdraft
protection on checking accounts are not permissible. In addition, Lender may not charge
a borrower in this scenario any origination fees, discount points, interest rate, or other
fees greater than those charged to other high loan-to-value ratio customers.
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 100 Plus - 2
Amendment 20
•
Monthly payments for the personal loan must be taken into account in both the total
obligations-to-income ratio and the housing expense-to-income ratio. The unsecured loan
must be a fully amortizing term loan, with a fixed-rate and fixed-payments. (No variable-
rate, variable-payment, or balloon loans are permitted.)
•
Lender’s participation under this section must be specifically approved in advance by the
applicable regional office.
•
A copy of the unsecured loan documents must be placed in the loan file.
•
“Interested party” contribution, as permitted in accordance with the Selling Guide; provided,
however, such interested party contribution may not in any event exceed 3.00% of the lesser of
the sales price or appraised value of the property. If an interested party contribution in any
amount is provided, the Mortgage is ineligible for delivery to Fannie Mae for MBS where the
LTV is 100%; in such cases, Mortgages would only be eligible for cash delivery. Where the
LTV is 100%, Lender represents and warrants that no Mortgage will be delivered for MBS to
Fannie Mae if there is any interested party contribution. If the LTV is less than 100%, and an
interested party contribution is utilized, Lender shall add the LTV to the interested party
contribution, as a percentage, to determine MBS delivery eligibility. For example:
•
An LTV of 98% plus an interested party contribution of 3% would equal 101%, making
the loan ineligible for MBS delivery.
•
An LTV of 98% plus an interested party contribution of 2% would equal 100%, making
the loan eligible for MBS delivery.
•
“Premium pricing” in accordance with the requirements below:
•
Lender may use the proceeds (referred to herein as the “Premium Pricing Proceeds”) that
result from the sale of the Mortgage at a premium, with an interest rate that is in excess of
the then-current market interest rate for like product.
•
The limitations contained in the Selling Guide relating to contributions by interested
parties shall not apply to the Premium Pricing Proceeds.
8.
Reserves
Where the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or
“Approve/Ineligible,” Lender must verify the availability of liquid assets as directed by DU. For non-DU
manual underwriting or manual underwriting that results from a DU finding other than “Approve/Eligible”
or “Approve/Ineligible,” Lender need not verify that the borrower has any minimum level of liquid assets
in reserve at closing.
9.
Eligible Loan Purpose
All Mortgages must be originated simultaneously under (i) a purchase money transaction or (ii) a “no
cash-out” refinance transaction where the refinance mortgage is equal to the outstanding principal balance
of the existing first mortgage (except that the amount may be rounded up to the next $100 increment).
10.
Subordinate Financing
Subordinate financing must comply with the terms for Community Seconds® mortgages, except that the
requirement contained therein for a down payment from the borrower’s own funds shall be governed by
Section 6 above (entitled “Minimum Borrower Contribution”) for the particular option.
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 100 Plus - 3
Amendment 20
11.
Credit History
If the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or
“Approve/Ineligible,” Lender does not need to evaluate the borrower’s credit history as set forth below.
For non-DU manual underwriting, or manual underwriting that results from a DU finding of other than
“Approve/Eligible” or “Approve/Ineligible,” Lender must evaluate the borrower’s credit history using any
one of the four options set forth below:
(a)
Lender supplements its manual underwriting by obtaining a “representative” credit score (per the
Selling Guide) on the borrower that is not less than 620.
(b)
Lender does not request a “representative” credit score on the borrower, but instead underwrites the
Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending
mortgages coupled with the development of an acceptable
traditional
credit profile (under Part X,
Section 304.01 of the Selling Guide), or if applicable, an acceptable
nontraditional
credit profile
(under Part X, Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior
bankruptcy or foreclosure in his or her credit history must have reestablished credit that satisfies the
requirements of Part X, Section 803.02 of the Selling Guide.
(c)
Where Lender requests a “representative” credit score on the borrower, but the borrower has no
score due to no credit record with the repository, Lender underwrites the Mortgage using the
underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled
with the development of an acceptable
nontraditional
credit profile (under Part X, Section 304.02 of
the Selling Guide). Provided, however, a borrower who has a prior bankruptcy or foreclosure in his
or her credit history must have reestablished credit that satisfies the requirements of Part X, Section
803.02 of the Selling Guide.
(d)
Where Lender obtains a “representative” credit score on the borrower, but the score is less than 620,
Lender underwrites the Mortgage using any one of the three options set forth below; provided,
however, the borrower will not be eligible where eligibility could only be achieved by combining the
following options (for example, “extenuating circumstances” may not be used to compensate for
deficiencies upon application of the criteria for nontraditional credit history):
(1)
The borrower has an insufficient traditional credit history (as documented by reason codes
showing lack of credit accounts, accounts not opened long enough, or lack of usage as the
reasons for the low “representative” credit score), and Lender underwrites the Mortgage using
the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages
coupled with the development of an acceptable
nontraditional
credit profile (under Part X,
Section 304.02 of the Selling Guide). Provided, however, a borrower who has a prior
bankruptcy or foreclosure in his or her credit history must have reestablished credit that
satisfies the requirements of Part X, Section 803.02 of the Selling Guide.
(2)
Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling
Guide for Community Lending mortgages coupled with the development of an acceptable
traditional
credit profile (under Part X, Section 304.01 of the Selling Guide). Provided,
however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must
have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling
Guide.
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 100 Plus - 4
Amendment 20
(3)
The borrower’s credit history was heavily influenced by credit deficiencies that were the result
of a documented “extenuating circumstance,” and the borrower’s credit history has been
reestablished and meets the conditions specified in the Selling Guide for the reestablishment of
an acceptable credit history following an “extenuating circumstance” (under Part X, Section
803.02 of the Selling Guide).
In no circumstance may a nontraditional credit evaluation be used to offset derogatory credit.
12.
Mortgage Insurance
MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will obtain “secondary
market coverage” (“SMC”) must also comply with the “secondary market policy” terms of the “Special
Requirements” section of this Master Agreement (“SMC Eligible Mortgages”). Lender must comply with
the eligibility requirements as determined by the applicable mortgage insurer. In addition, SMC Eligible
Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no.
A06304, and (ii) if delivered under Cash Delivery, must be delivered under seller/servicer branch no.
23227-003-9 or 24837-002-5. For SMC Eligible Mortgages, individual loan mortgage insurance providing
35% coverage is required on all Mortgages where the LTV is above 80%. SMC Eligible
MyCommunityMortgage Mortgages may be covered under “A Paper” or “A-Minus” mortgage insurance
premium rates as determined by the eligibility requirements of the applicable mortgage insurer.
Fannie Mae anticipates that all SMC Eligible Mortgages will be delivered for coverage under SMC.
Nevertheless, with respect to Mortgages that do not comply with the eligibility requirements of the
applicable mortgage insurer for such “secondary market policy” terms or that it not otherwise delivered for
coverage under SMC (collectively, “Non-SMC Mortgages”), individual loan mortgage insurance coverage
is required as follows:
•
LTV is 90.01% - 100.00%: 35%
•
LTV is 85.01% - 90.00%: 30%
•
LTV is 80.01% - 85.00%: 25%
Non-SMC Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase
Contract no. to be determined, and (ii) if delivered under Cash Delivery, must be delivered under
seller/servicer branch no. 23227-000-4 or 24837-000-9.
Note: SMC Eligible Mortgages and Non-SMC Mortgages may NOT be delivered under the same Pool
Purchase Contract (if delivered under MBS Delivery), or under the same seller/servicer branch no. (if
delivered under Cash Delivery). Nevertheless, SMC Eligible Mortgages may be delivered under the same
Pool Purchase Contract or the same seller/servicer branch no. used with non-MyCommunityMortgage
loans that comply with, and are delivered in connection with, the “secondary market policy” terms of the
“Special Requirements” section of this Master Agreement.
The Lender is responsible for determining applicable state requirements relating to mortgage insurance
availability for Mortgages having LTVs over 97%. If the specified mortgage insurance coverage is not
available with respect to any mortgage, then such mortgage is ineligible for delivery to Fannie Mae.
13.
Homebuyer Education
All first-time borrowers must complete homebuyer education according to the provisions of the Selling
Guide for prepurchase homebuyer education.
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 100 Plus - 5
Amendment 20
14.
Delinquency Counseling
For all borrowers, Lender must follow the requirements of the Selling Guide and the Servicing Guide for
postpurchase early delinquency counseling.
15.
Allocation
These terms and conditions do not contain a specific limitation on the aggregate principal amount of
Mortgages that Lender may deliver or a date (other than the applicable Expiration Date) by which Lender
must deliver the Mortgages. However, in order to be able to efficiently allocate the resources that Fannie
Mae has made available for this pilot, Fannie Mae may from time to time and at any time set a limit on the
aggregate principal amount of Mortgages that Lender may deliver or terminate Lender’s ability to deliver
Mortgages under this pilot. If, after giving consideration to the aggregate principal amount of Mortgages
that Lender has delivered and to the aggregate principal amount of commitments for such Mortgages that
Lender has made, Fannie Mae elects to set a limit or terminate Lender’s participation, Fannie Mae will
give Lender at least 90 days prior written notice of its intent to do so.
16.
Pricing for Cash Deliveries
Cash pricing is available through the MORNET Bulletin section of MORNET Manager. The MORNET
Bulletin for Cash Pricing is contained in the Secondary Marketing section (Fannie Mae Pricing; Cash
Pricing) of MORNET Manager. The selection is “MyCommunityMortgage Products.” The option for
pricing using “Secondary Market Coverage” must be selected for Mortgages delivered for coverage under
SMC, and the option for pricing using “standard” mortgage insurance must be selected for Non-SMC
Mortgages. Cash Pricing screens are available for 30-year fixed-rate mortgages and for 7/1 ARMs (Fannie
Mae Plans 750 and 751). For fixed-rate mortgages with terms of less than 30 years, Lender must contact
Fannie Mae’s Cash Commitment window at 1-800-752-1080, option #5 Negotiated Pricing, and obtain a
negotiated Cash Delivery commitment. For 10/1 ARMs (Fannie Mae Plans 1423 and 1437), screens are
not available, and Lender must contact Fannie Mae’s Cash Commitment window to obtain a negotiated
commitment.
17.
Special Feature Code
For all Mortgages originated under these terms and conditions, Lender is required to enter
Special
Feature Code “480”
on the Loan Schedule (Form 1068) or Schedule of Mortgages (Form 2005).
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 100 Plus - 6
Amendment 20
ATTACHMENT A
MyCommunityMortgage Pilot Eligibility Matrix
Purpose
Occupancy
Other Property
Owned
Non-Occupant Co-
borrower
Units/Type
Maximum LTV
Maximum CLTV
Borrower Income
MM or No Cash-Out
Refinance (Existing
UPB of first mortgage
ounded to the nearest
$100)
Owner-Occupied
None
Not Allowed
97%**
105%
If borrower income
exceeds area median
income limitations,
verify
property is in a
FannieNeighbors
location through Fann
Mae’s geocoding
service through
efanniemae.com
One Unit*
100%
2 Units
95%
*
Includes condos, PUDs, manufactured housing. Coops allowed for Community 97 only. Provided, however,
where EEM guidelines used, no manufactured housing and no coops allowed.
**
90% for coops
Master Agreement MA02373.2
HCD - MyCommunityMortgage - Community 100 Plus - 7
Amendment 20
August 2002
Fannie Mae
MyCommunityMortgage
SM
; Community Solutions 100
SM
Terms and Conditions
The following terms and conditions apply to certain Mortgages (described below), which are eligible for
purchase for cash or MBS under Fannie Mae’s MyCommunityMortgage
SM
pilot (“MyCommunityMortgage”)
for the Community Solutions
SM
100 product. The term “Lender” refers to the Fannie Mae seller/servicer to
which these terms and conditions are being issued. Except as provided herein, all other requirements of the
Selling Guide (as updated) must be followed.
1.
Borrower Eligibility
Community Solutions 100 offers “Teacher A+,” “Safety 1st” and “HealthCare Worker+” borrower
options, as described below. In the case of co-borrowers, Community Solutions is available if at least one
of the co-borrowers qualifies under one of the Teacher A+, Safety 1st or HealthCare Worker+ borrower
options described below.
To be eligible for Teacher A+, the borrower must be:
a)
a full time employee at the elementary or secondary education level in a public or private school (in
any capacity, including but not limited to teacher, administrator, librarian, counselor, administrative
support and custodial staff) who is either (i) state certified, (ii) in the process of becoming state
certified, or (iii) employed by a school that is recognized by a state or accredited by a state or
regional accrediting association; or
b)
a full time teacher or administrator at the elementary or secondary education levels working at a
federal, state, county, or municipal education agency and who is either state certified or in the
process of becoming state certified.
To be eligible for Safety 1st, the borrower must be:
a)
a full-time sworn employee of a police department, sheriff’s office, corrections department, or other
law enforcement agency which is a part of or administered by the federal government, a state, a
county, a city, or other political subdivision of a state, a commission created by an interstate
compact, a university, a hospital, a utility or an airport or port authority who is responsible for the
prevention and detection of crime, the enforcement of the penal, traffic or highway laws or the
incarceration or detention of offenders; or
b)
a full-time sworn member of a local, state, or federal fire department or agency and be responsible
for at least one of the following: fire suppression, emergency medical response and patient care, fire
and injury prevention, arson investigation, hazardous materials incident response and management,
and/or response to acts of terrorism.
To be eligible for HealthCare Worker+, the borrower must:
(a)
be a full-time employee of an employer that offers its employees an employer-assisted housing
benefit (“EAH”--an employee benefit designed to assist in the employee’s housing needs, and may
involve a grant, a loan, shared appreciation, monthly payment assistance, counseling or otherwise);
provided, however, the borrower need not be a participant in the employer’s EAH, and
Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community Solutions 100 - 1
Amendment 20
(b)
be employed by that employer in one of the following positions:
1.
registered nurse (RN), licensed practical nurse (LPN) or licensed vocational nurse (LVN); or
2.
nursing assistant who is (i) certified, licensed or accredited by the applicable state agency or
has successfully completed training mandated by the applicable state agency, and (ii)
designated as a certified nursing assistant (CNA), advanced unlicensed assistant (AUA) or
unlicensed assistive personnel (UAP); or
3.
physician’s assistant or medical technician, technologist or therapist who is certified, licensed
or accredited by the applicable state agency or has successfully completed training mandated
by the applicable state agency; or
4.
licensed pharmacist or pharmacy technician who is certified, licensed or accredited by the
applicable state agency.
(For purposes of Community Solutions 100, “state” includes any state of the United States, the District of
Columbia, or the Commonwealth of Puerto Rico.)
2.
Loan-to-Value Ratio
The maximum loan-to-value ratio (“LTV”) is 100%, which percentage is calculated from the lower of the
sales price or the appraised value of the property.
3.
Eligible Properties
Eligible properties are owner-occupied, principal residences that consist of one unit, including
manufactured housing and units in condominiums and planned unit developments (“PUDs”) that conform
with any related Fannie Mae requirements. Both existing structures and new construction are eligible, but
cooperatives are ineligible.
4.
Borrower Income
The borrower’s income may not exceed 100% of the median income that HUD publishes for the
property’s location, except for (i) higher income limits allowed for certain high-cost areas as specified in
the Selling Guide, and (ii) an income limit of 115% of the HUD-published median in nonmetropolitan
counties and (iii) borrower incomes imposed by other organizations (such as when a housing finance
agency or an employer provides down payment or closing cost assistance), as specified in the Selling
Guide.
Borrower income limitations are not applicable, however, in neighborhoods that qualify as
FannieNeighbors® locations; FannieNeighbors locations are specified in the Selling Guide. (A geocoding
service is currently available on Fannie Mae’s web site, www.efanniemae.com, to assist lenders in
determining whether a particular property is in an eligible FannieNeighbors area.)
5.
Eligible Mortgages
The Mortgage must be a conventional fixed-rate, fully amortizing mortgage with a term of 30 years or
less, or 7/1 or 10/1 adjustable-rate mortgage (Fannie Mae Plans 750, 751, 1423 or 1437) -“Eligible
ARMs”.
6.
Underwriting
Lender may underwrite the Mortgage through Desktop Underwriter (“DU”) using the Community Lending
product screens, by entering the Mortgage as a Fannie 97 mortgage. If the DU finding is
“Approve/Eligible,” the waiver of representations and warranties as granted under DU is
Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community Solutions 100 - 2
Amendment 20
applicable for the Mortgage, except that the requirement for individual-loan mortgage insurance as
provided herein below is not modified irrespective of any DU message. If the DU finding is
“Approve/Ineligible,” the waiver of representations and warranties as granted under DU is applicable,
except that Lender is responsible for determining that the Mortgage meets all the eligibility criteria for
Community Solutions 100 as specified in the eligibility matrix in Attachment A hereto. If the DU finding
is other than “Approve/Eligible” or “Approve/Ineligible,” or if there is an “Expanded Approval” finding of
any kind, manual (non-DU) underwriting is required. Furthermore, nontraditional credit histories will also
require manual underwriting. There will be no DU fee charged if the original DU submission of the
Mortgage is made through the Community Lending product screens.
For non-DU manual underwriting or manual underwriting that results from a DU finding other than
“Approve/Eligible” or “Approve/Ineligible,” in addition to the limitations or flexibilities specified herein,
MyCommunityMortgage allows the underwriting flexibilities of Fannie Mae’s community lending
guidelines, including Fannie Mae’s Community Home Buyer’s ProgramSM model, except that the
maximum underwriting ratio shall be 45 percent for the total-expenses-to-income ratio (“single
qualifying” ratio, rather than separate housing-expense-to-income and total-expenses-to-income ratios),
except where there is a temporary interest rate buydown (the temporary interest rate buydown must
comply with the guidelines contained in the section below entitled “Buydowns”), and in that situation, the
maximum single qualifying ratio shall be 43 percent.
7.
Part-Time and Overtime Income
Overtime and part-time income can be used to qualify the borrower if the employer verifies that the
borrower has received such income for the last 12 months and indicates that the overtime and/or part-time
income will in all probability continue. Lender must develop an average of overtime and/or part-time
income over the last 12 months to determine the amount of income that can be considered in evaluating
the borrower’s qualifications.
8.
Minimum Borrower Contribution from the Borrower’s Own Funds
The minimum required contribution by the borrower to the transaction, the source of which must be from
the borrower’s own funds and which is calculated as a percentage of the sales price of the property, shall
be the lesser of 1.00% or $500.00. These funds may be used for closing costs, prepaid items, and/or down
payment, if desired.
9.
Sources for Closing Costs/Prepaids
Funding in addition to the minimum borrower contribution may be obtained from the “sources of
borrower’s funds” as permitted under the Selling Guide, as well as any combination of the following
sources:
a)
Gift from a relative (for purposes of these terms and conditions, a relative is defined as the
borrower’s spouse, child, dependent, domestic partner, fiancé, fiancée, or any other individual
related to the borrower by blood, marriage, adoption or legal guardianship).
b)
Unsecured loan or grant from a governmental entity, the borrower’s employer or a nonprofit
organization (including churches, but a credit union is not considered to be a nonprofit organization
for the purpose of this paragraph).
c)
Secured loan that complies with the terms for Community Seconds mortgages.
d)
The following sources may only be used for closing costs and/or prepaid items and may not be used
as funds for the borrower’s down payment:
Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community Solutions 100 - 3
Amendment 20
•
Unsecured loan from Lender in accordance with the requirements below:
•
Lender may finance closing costs with personal (unsecured) loans, provided that the
applicable Fannie Mae regional office reviews and approves Lender’s unsecured loan
program in the context of Lender’s Community Reinvestment Act (“CRA”) and Home
Mortgage Disclosure Act (“HMDA”) efforts.
•
The interest rate to the borrower must not be greater than the note rate of the first
Mortgage, but the regional office may approve rates of up to two percentage points above
the first Mortgage rate. In all instances, credit card financing and loans from overdraft
protection on checking accounts are not permissible. In addition, Lender may not charge
a borrower in this scenario any origination fees, discount points, interest rate, or other
fees greater than those charged to other high loan-to-value ratio customers.
•
Monthly payments for the personal loan must be taken into account in both the total
obligations-to-income ratio and the housing expense-to-income ratio. The unsecured loan
must be a fully amortizing term loan, with a fixed-rate and fixed-payments. (No variable-
rate, variable-payment, or balloon loans are permitted.)
•
Lender’s participation under this section must be specifically approved in advance by the
applicable regional office.
•
A copy of the unsecured loan documents must be placed in the loan file.
•
“Interested party” contribution, as permitted in accordance with the Selling Guide; provided,
however, such interested party contribution may not in any event exceed 3.00% of the lesser of
the sales price or appraised value of the property. If an interested party contribution in any
amount is provided, the Mortgage is ineligible for delivery to Fannie Mae for MBS where the
LTV is 100%; in such cases, Mortgages would only be eligible for cash delivery. Where the
LTV is 100%, Lender represents and warrants that no Mortgage will be delivered for MBS to
Fannie Mae if there is any interested party contribution. If the LTV is less than 100%, and an
interested party contribution is utilized, Lender shall add the LTV to the interested party
contribution, as a percentage, to determine MBS delivery eligibility. For example:
•
An LTV of 98% plus an interested party contribution of 3% would equal 101%, making
the loan ineligible for MBS delivery.
•
An LTV of 98% plus an interested party contribution of 2% would equal 100%, making
the loan eligible for MBS delivery.
•
“Premium pricing” in accordance with the requirements below:
•
Lender may use the proceeds (referred to herein as the “Premium Pricing Proceeds”) that
result from the sale of the Mortgage at a premium, with an interest rate that is in excess of
the then-current market interest rate for like product.
•
The limitations contained in the Selling Guide relating to contributions by interested
parties shall not apply to the Premium Pricing Proceeds.
10.
Reserves
Where the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or
“Approve/Ineligible,” Lender must verify the availability of liquid assets as directed by DU. For non-DU
manual underwriting or manual underwriting that results from a DU finding other than “Approve/Eligible”
or “Approve/Ineligible,” Lender must verify that the
Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community Solutions 100 - 4
Amendment 20
borrower has sufficient liquid assets in reserve at closing equal to at least one mortgage payment, and such
reserve may include funds received by the borrower as a gift (gifts for purposes of such reserve include
funds received from a relative or from a church, municipality, employer, or nonprofit organization).
11.
Buydowns
A temporary interest rate buydown not to exceed one-half of one percent for the first three years of the
Mortgage is permitted. Borrower will be underwritten at the bought-down interest rate. The buydown must
otherwise meet the requirements of the Guides, including the allowance for buydown funds to come from
any source or combination of sources (including Lender, foundations, places of worship, labor unions,
employers or their designees, public agencies and nonprofits).
12.
Eligible Loan Purpose
All Mortgages must be originated simultaneously under (i) a purchase money transaction or (ii) a “no
cash-out” refinance transaction where the refinance mortgage is equal to the outstanding principal balance
of the existing first mortgage (except that the amount may be rounded up to the next $100 increment).
13.
Subordinate Financing
Subordinate financing must comply with the terms for Community Seconds mortgages, except that the
requirement contained therein for a down payment from the borrower’s own funds shall be governed by
Section 8 above (entitled “Minimum Borrower Contribution”) for the particular option.
14.
Credit History
If the Mortgage is underwritten through DU, and the DU finding is either “Approve/Eligible” or
“Approve/Ineligible,” Lender does not need to evaluate the borrower’s credit history as set forth below.
For non-DU manual underwriting, or manual underwriting that results from a DU finding of other than
“Approve/Eligible” or “Approve/Ineligible,” Lender must evaluate the borrower’s credit history using any
one of the four options set forth below:
(a)
Lender supplements its manual underwriting by obtaining a “representative” credit score on the
borrower that is not less than 620.
(b)
Lender does not request a “representative” credit score on the borrower, but instead underwrites the
Mortgage using the underwriting guidelines set forth in the Selling Guide for Community Lending
mortgages coupled with the development of:
(1)
an acceptable
traditional
credit profile (under Part X, Section 304.01 of the Selling Guide), or
(2)
when the borrower does not have the type of credit that is traditionally reported to a credit
repository, an acceptable
nontraditional
credit profile (under Part X, Section 304.02 of the
Selling Guide), or
(3)
when the borrower has not yet established a credit history or does not have sufficient credit
documentation to meet the requirements for nontraditional credit, an acceptable “enhanced
credit evaluation” for a
nontraditional limited
credit profile (“enhanced credit evaluation” for
nontraditional limited credit requires both of the following: (i) 12 months rental history with no
delinquencies, and (ii) no delinquencies in the past 12 months for other trade lines, if any).
Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community Solutions 100 - 5
Amendment 20
Provided, however, in all of these cases, a borrower who has a prior bankruptcy or foreclosure in his
or her credit history must have reestablished credit that satisfies the requirements of Part X, Section
803.02 of the Selling Guide.
(c)
Where Lender requests a “representative” credit score on the borrower, but the borrower has no
score due to no credit record with the repository, Lender underwrites the Mortgage using the
underwriting guidelines set forth in the Selling Guide for Community Lending mortgages coupled
with the development of:
(1)
an acceptable
nontraditional
credit profile (under Part X, Section 304.02 of the Selling Guide),
or
(2)
when the borrower has not yet established a credit history or does not have sufficient credit
documentation to meet the requirements for nontraditional credit, an acceptable “enhanced
credit evaluation” for a
nontraditional limited
credit profile (“enhanced credit evaluation” for
nontraditional limited credit requires both of the following: (i) 12 months rental history with no
delinquencies, and (ii) no delinquencies in the past 12 months for other trade lines, if any).
Provided, however, in both of these cases, a borrower who has a prior bankruptcy or foreclosure in
his or her credit history must have reestablished credit that satisfies the requirements of Part X,
Section 803.02 of the Selling Guide.
(d)
Where Lender obtains a “representative” credit score on the borrower, but the score is less than 620,
Lender underwrites the Mortgage using any one of the three options set forth below; provided,
however, the borrower will not be eligible where eligibility could only be achieved by combining the
following options (for example, “extenuating circumstances” may not be used to compensate for
deficiencies upon application of the criteria for nontraditional credit history):
(1)
The borrower has an insufficient traditional credit history (as documented by reason codes
showing lack of credit accounts, accounts not opened long enough, or lack of usage as the
reasons for the low “representative” credit score), and Lender underwrites the Mortgage using
the underwriting guidelines set forth in the Selling Guide for Community Lending mortgages
coupled with the development of
(aa)
an acceptable
nontraditional
credit profile (under Part X, Section 304.02 of the Selling
Guide), or
(bb)
when the borrower has not yet established a credit history or does not have sufficient
credit documentation to meet the requirements for nontraditional credit, an acceptable
“enhanced credit evaluation” for a
nontraditional limited
credit profile (“enhanced credit
evaluation” for nontraditional limited credit requires both of the following: (i) 12 months
rental history with no delinquencies, and (ii) no delinquencies in the past 12 months for
other trade lines, if any). Provided, however, in both of these cases, a borrower who has a
prior bankruptcy or foreclosure in his or her credit history must have reestablished credit
that satisfies the requirements of Part X, Section 803.02 of the Selling Guide.
(2)
Lender underwrites the Mortgage using the underwriting guidelines set forth in the Selling
Guide for Community Lending mortgages coupled with the development of an acceptable
traditional
credit profile (under Part X, Section 304.01 of the Selling Guide). Provided,
however, a borrower who has a prior bankruptcy or foreclosure in his or her credit history must
have reestablished credit that satisfies the requirements of Part X, Section 803.02 of the Selling
Guide.
Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community Solutions 100 - 6
Amendment 20
(3)
The borrower’s credit history was heavily influenced by credit deficiencies that were the result
of a documented “extenuating circumstance,” and the borrower’s credit history has been
reestablished and meets the conditions specified in the Selling Guide for the reestablishment of
an acceptable credit history following an “extenuating circumstance” (under Part X, Section
803.02 of the Selling Guide).
In no circumstance may a nontraditional credit evaluation be used to offset derogatory credit.
15.
Mortgage Insurance
MyCommunityMortgage Mortgages delivered hereunder for which Fannie Mae will obtain “secondary
market coverage” (“SMC”) must also comply with the “secondary market policy” terms of the “Special
Requirements” section of this Master Agreement (“SMC Eligible Mortgages”). Lender must comply with
the eligibility requirements as determined by the applicable mortgage insurer. In addition, SMC Eligible
Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase Contract no.
A06304, and (ii) if delivered under Cash Delivery, must be delivered under seller/servicer branch no.
23227-003-9 or 24837-002-5. For SMC Eligible Mortgages, individual loan mortgage insurance providing
35% coverage is required on all Mortgages where the LTV is above 80%. SMC Eligible
MyCommunityMortgage Mortgages may be covered under “A Paper” or “A-Minus” mortgage insurance
premium rates as determined by the eligibility requirements of the applicable mortgage insurer.
Fannie Mae anticipates that all SMC Eligible Mortgages will be delivered for coverage under SMC.
Nevertheless, with respect to Mortgages that do not comply with the eligibility requirements of the
applicable mortgage insurer for such “secondary market policy” terms or that are not otherwise delivered
for coverage under SMC (collectively, “Non-SMC Mortgages”), individual loan mortgage insurance
coverage is required as follows:
•
LTV is 90.01% - 100.00%: 35%
•
LTV is 85.01% - 90.00%: 30%
•
LTV is 80.01% - 85.00%: 25%
Non-SMC Mortgages, (i) if delivered under MBS Delivery, must be delivered under Pool Purchase
Contract no. to be determined, and (ii) if delivered under Cash Delivery, must be delivered under
seller/servicer branch no. 23227-000-4 or 24837-000-9.
Note: SMC Eligible Mortgages and Non-SMC Mortgages may NOT be delivered under the same Pool
Purchase Contract (if delivered under MBS Delivery), or under the same seller/servicer branch no. (if
delivered under Cash Delivery). Nevertheless, SMC Eligible Mortgages may be delivered under the same
Pool Purchase Contract or the same seller/servicer branch no. used with non-MyCommunityMortgage
loans that comply with, and are delivered in connection with, the “secondary market policy” terms of the
“Special Requirements” section of this Master Agreement.
The Lender is responsible for determining applicable state requirements relating to mortgage insurance
availability for Mortgages having LTVs over 97%. If the specified mortgage insurance coverage is not
available with respect to any mortgage, then such mortgage is ineligible for delivery to Fannie Mae.
16.
Homebuyer Education
All first-time borrowers must complete homebuyer education according to the provisions of the Selling
Guide for prepurchase homebuyer education.
Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community Solutions 100 - 7
Amendment 20
17.
Delinquency Counseling
For all borrowers, Lender must follow the requirements of the Selling Guide and the Servicing Guide for
postpurchase early delinquency counseling.
18.
Allocation
These terms and conditions do not contain a specific limitation on the aggregate principal amount of
Mortgages that Lender may deliver or a date (other than the applicable Expiration Date) by which Lender
must deliver the Mortgages. However, in order to be able to efficiently allocate the resources that Fannie
Mae has made available for this pilot, Fannie Mae may from time to time and at any time set a limit on the
aggregate principal amount of Mortgages that Lender may deliver or terminate Lender’s ability to deliver
Mortgages under this pilot. If, after giving consideration to the aggregate principal amount of Mortgages
that Lender has delivered and to the aggregate principal amount of commitments for such Mortgages that
Lender has made, Fannie Mae elects to set a limit or terminate Lender’s participation, Fannie Mae will
give Lender at least 90 days prior written notice of its intent to do so.
19.
Pricing for Cash Deliveries
Cash pricing is available through the MORNET Bulletin section of MORNET Manager. The MORNET
Bulletin for Cash Pricing is contained in the Secondary Marketing section (Fannie Mae Pricing; Cash
Pricing) of MORNET Manager. The selection is “MyCommunityMortgage Products.” The option for
pricing using “Secondary Market Coverage” must be selected for Mortgages delivered for coverage under
SMC, and the option for pricing using “standard” mortgage insurance must be selected for Non-SMC
Mortgages. Cash Pricing screens are available for 30-year fixed-rate mortgages and for Eligible ARMs.
For fixed-rate mortgages with terms of less than 30 years, Lender must contact Fannie Mae’s Cash
Commitment window at 1-800-752-1080, option #5 Negotiated Pricing, and obtain a negotiated Cash
Delivery commitment.
20.
Special Feature Code
For all Mortgages originated under these terms and conditions, Lender is required to enter
Special
Feature Code “481”
on the Loan Schedule (Form 1068) or Schedule of Mortgages (Form 2005). For
Cash
deliveries, the Loan Schedule must be transmitted electronically through the MORNET Cash Delivery
System”. For MBS deliveries, the Schedule of Mortgages must be submitted through the MORNET MBS
Pool Submission System®.
Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community Solutions 100 - 8
Amendment 20
ATTACHMENT A
MyCommunityMortgage Pilot Community Solutions 97, Community Solutions 100, and Community
Solutions 2-Family Products Eligibility Matrix
ose
Occupancy
Other Property
Owned
Non-Occupant Co-
borrower
Units
Maximum LTV
Maximum CLTV
Borrower Income
Subor
Fina
No Cash
nance
PB of first
unded to
t $100)
Owner-Occupied
None
Not Allowed
One Unit
97% (90% for
cooperatives)
105%
If borrower income
exceeds area median
income limitations,
verify property is in a
FannieNeighbors
location through Fannie
Mae’s geocoding
service through
efanniemae.com
Must meet
Sec
guid
100%
2 Units
95%
Master Agreement MA02373.2
HCD - MyCommunityMortgage; Community Solutions 100 - 9
Amendment 20
[LETTERHEAD OF FANNIEMAE]
December 5, 2002
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285 115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 21
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Variance – Replace page VAR 1 – 1 through VAR 1 – 4 Amendment 20 (dated 12/5/2002) with
VAR 1 – 1 through VAR 1 – 8 Amendment 21 (dated 12/5/2002) behind the Variances tab.
•
New Variance – (a) Replace page VAR/TOC – 1 Amendment 20 (dated 12/5/2002) with VAR/TOC – 1
Amendment 21 (dated 12/5/2002) behind the
Variances
tab. (b) Insert pages VAR 5 – 1 through VAR 5 –
5 (dated 12/5/2002) behind the
Variances
tab
.
•
Modified Pool Purchase Contracts
(a)
A06302 – Replace pages FRM – 1 and FRM – 2 (dated 11/14/2002) with pages FRM – 1 and FRM –
2 (dated 12/5/2002) behind the
Fixed-Rate
tab.
(b)
A06743 – Replace pages FRM – 1 and FRM – 2 (dated 11/14/2002) with pages FRM – 1 and FRM –
2 (dated 12/5/2002) behind the
Fixed-Rate
tab.
Master Agreement MA02373.2
LE - 1
Amendment 21
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate
original of this Letter Agreement to
Diane Stokes
at Fannie Mae within ten business days of the date this Letter
Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this
Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter
Agreement null and void.
Sincerely,
F
ANNIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and accepted.
C
RESCENT
B
ANK AND
T
RUST
C
OMPANY
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
12-11-02
Agreed, acknowledged and accepted.
C
RESCENT
M
ORTGAGE
S
ERVICES
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
12-11-02
Master Agreement MA02373.2
LE - 2
Amendment 21
VARIANCES
TABLE OF CONTENTS
VAR 1
Bulk Alt A Product FRM
VAR 2
Desktop Underwriter ‘Expanded Approval with Timely Payment Rewards
SM
’ Initiative
VAR 3
Relocation Mortgages Guidelines/Trailing Secondary Wage Earner Income
VAR 4
Other Automated Underwriting Systems
VAR 5
Use of Other Automated Underwriting System (‘AUS’) For Certain Mortgages To Be Delivered No
Later Than December 31, 2002
Master Agreement MA02373.2
VAR TOC - 1
Amendment 21
VAR
1
Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements
described as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s
assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain
mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of Lender by offering to buy or accepting delivery of
any Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as
described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling Guide.
Master Agreement MA02373.2
VAR 1 - 1
Amendment 21
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific information
with respect to the corresponding Mortgages being delivered will be completed and added to this
Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 21
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage –
value not to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets,
but does not want to deal will all regular documentation
requirements, and for borrowers who are changing jobs,
between jobs, relocating, retiring, or have recently
become self-employed. All borrowers must meet credit
score requirements. No loans to builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report
required for all loan types. Plus, a review appraisal if the
transaction is a refinance and the LTV is greater than
75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit
score of 700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65%
with a credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit
score of 700; 70% with a credit score of 680.
• 2nd Homes
2-unit: COR to 65% with a credit score of 700; 60%
with a credit score of 680.
Master Agreement MA02373.2
VAR 1 - 3
Amendment 21
1-unit only; PMM & R/T Refi to 80% with a credit
score of 720; 75% with a credit score of 700; 70% with
a credit score of 680; COR to 70% with a credit score of
700; 65% with a credit score of 680.
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Trade Lines
Three (3) rated trades
Credit History
24 Months
Credit Explanations
Not stated
Mortgage/Revolving/
No Foreclosures.
Installment
No Bankruptcies.
No 30-day lates on any mortgages in the past 24 months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Liquid assets (checking, savings, CD’s, money
market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Non-depository assets (stocks, bonds, retirement
funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report. Rental
history verification not required.
Salaried/Wage Earner Employment Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/Balance Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony, child
support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and overtime and
bonus income
No verification. Stated income only.
Commission income and independent contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 21
December 2002 30 Year FRM
Bulk Mortgage Delivery Addendum
Maximum Volume: $12,242,510.00
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 21
December 2002 30 Year FRM
Schedule A
Profile Summary
Count
:
71
Volume
:
$ 12,242,510.00
WAC
:
6.5
WA OLTV
:
73.6
WA CLTV
:
73.6
WA State RTerm
:
359
WA Calc RTerm
:
0
WA Seas
:
3
Pct Full/Alt Doc
:
0.00
%
Pct Low/No Doc
:
100.00
%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 21
December 2002 30 Year FRM
Schedule B
Lender Loan Numbers
Non-SMC
1000982817
1001014172
1000939353
1000956985
1000959526
1001063773
1001029675
1001035326
1001009446
1000950848
1000965747
1000889905
1000990638
1000999571
1001017936
1000989697
1000978328
1001036845
1001006418
1000986164
1000973287
1000997864
1000976850
1001036662
1001044013
1001058815
1001041530
1000905982
1001013539
1000935781
1000926996
1000999159
1000997898
1000997757
1001017555
1001012127
1000936417
1000904365
1000955698
1001016839
Master Agreement MA02373.2
VAR 1 - 7
Amendment 21
1000994416
1001046489
1000940229
1001014073
1000998466
1001007788
1000953297
1000988129
1000999258
1001036704
1000991099
SMC
1000853166
1000988988
1001016862
1000979631
1001013596
1001008737
1001020120
1001030194
1000968683
1001049798
1001014594
1001029709
1000997179
1001051992
1001010030
1001038056
1001045366
1001016995
1000721074
1000947646
Master Agreement MA02373.2
VAR 1 - 8
Amendment 21
VAR 5
Use of Other Automated Underwriting System (‘AUS’) For Certain Mortgages To Be
Delivered No Later Than December 31, 2002
Lender may deliver the 74 (2-4 unit) mortgage loans identified in the attached Schedule “A” having an
aggregate outstanding principal balance not to exceed $12,548,152 that were originated pursuant to the
following terms and conditions (the “Mortgages”).
Fannie Mae recognizes that the Mortgages were submitted for evaluation to an automated underwriting system
(“AUS”) other than DU. Lender may deliver the Mortgages to Fannie Mae in accordance with the provisions of
this Variance, provided that Lender acknowledges and agrees not to use these provisions in any manner that
would adversely select or harm Fannie Mae and:
1.
The Mortgages meet Fannie Mae’s eligibility requirements described in the Fannie Mae Selling Guide, as
modified by the Master Agreement or the DU Guide, as any of the foregoing may be amended from time
to time.
2.
Such Mortgages must receive a recommendation of “standard accept” (either full or streamlined
documentation levels) or “accept plus” from the other AUS.
3.
All data pertaining to the Mortgage is complete and accurate, and all data on which the underwriting
decision recommended by the other AUS was based remain unchanged as of the closing date for such
Mortgage.
4.
Such Mortgages must be documented and closed in accordance with the requirements of the other AUS,
except with respect to the appraisal requirements, as provided in Paragraph 13 below. Verification of all
such data is provided with the delivered Mortgage loan file and such verification complies with the
requirements of the other AUS. Lender must take all appropriate action in response to the verification
messages/approval conditions that appear in the “findings” report that the other AUS produces with
respect to the related Mortgage loan application prior to the closing of the Mortgage, with proper
documentation in the loan file. Lender represents and warrants that copies of all reports generated by the
other system will be included in the loan file, and that Lender is not prohibited from providing such
copies.
5.
With the exception of Mortgages that are otherwise eligible for delivery under the Master Agreement or
DU, Mortgages receiving a recommendation of “standard accept” (either full or streamlined
documentation levels) or “accept plus” from the other AUS are not eligible for delivery under this
Variance if the recommendation (a) includes a requirement for additional fees, credit enhancements, or
other special conditions, except as otherwise expressly provided in Paragraph 9 below, or (b) the
mortgage insurance coverage level obtained is lower than required per Fannie Mae’s Selling Guide, even
if a reduced level of coverage is permitted by the other AUS recommendation.
6.
Lender and Fannie Mae must mutually agree upon any AUS employed by Lender prior to the delivery of
such Mortgages to Fannie Mae.
7.
For all Mortgages, Lender must enter the borrower’s representative FICO credit score into the appropriate
data field when submitting the Mortgage to Fannie Mae in accordance with the Fannie Mae Selling
Guide.
Master Agreement MA02373.2
VAR 5 - 1
Amendment 21
8.
Except as otherwise provided herein, Lender makes all applicable selling representations and warranties as
required by the Fannie Mae Selling Guide and the Mortgage Selling and Servicing Contract by and
between Lender and Fannie Mae.
9.
The provisions of this Variance do not apply to any mortgage that is currently required by Fannie Mae to
be submitted to DU for evaluation (“DU-Only Products”) (e.g., Flexible Mortgages), and such mortgages
must be processed through DU and receive an acceptable recommendation in order to be eligible for
delivery to Fannie Mae, except as follows: if there is a Mortgage product available in the other AUS that is
equivalent to a DU-Only Product (as determined by Fannie Mae), then such Mortgage is eligible for
delivery to Fannie Mae, subject at delivery to the (a) payment of all loan level price adjustments or special
all-in yield pricing applicable to the equivalent DU-Only Product, and (b) identification by any special
feature code applicable to the equivalent DU-Only Product.
10.
At delivery, Lender must:
(a)
identify all Mortgages underwritten using an AUS other than DU in accordance with this Variance
by inserting the following Special Feature Code(s) on the Loan Schedule or Schedule of Mortgages,
as applicable: (i) “361” for all Mortgages, and (ii) any other special feature code loan that would be
required if the Mortgage had been submitted to DU prior to delivery; and
(b)
pay all applicable loan level price adjustments required under Fannie Mae’s eligibility criteria.
11.
For Mortgages meeting the requirements set forth in this Variance, Fannie Mae will not require Lender to
warrant that the Mortgage complies with the Fannie Mae Selling Guide’s requirements with regard to the
application of underwriting judgment used by the AUS as it pertains to the borrower’s creditworthiness,
provided the information that the other AUS used to reach its decision was not inaccurate or fraudulent.
12.
Fannie Mae will analyze the credit risks associated with such Mortgages and will provide Lender with the
results of this analysis. If this analysis contains any credit score data or other consumer credit data under
the FCRA, it is being provided to Lender as Fannie Mae’s agent for the limited purpose of reviewing such
Mortgages to determine their conformance with Fannie Mae’s requirements. Upon request, Lender will
provide to Fannie Mae any data or information relating to the Mortgages delivered to Fannie Mae that
were processed through the other AUS, and Lender represents and warrants that Lender is not prohibited
from providing such data or information to Fannie Mae. If Fannie Mae’s analysis indicates that a
significant number of such Mortgages contained a high risk of default, Lender and Fannie Mae will work
together to identify and implement product or process changes to reduce the number of such high risk
Mortgages expected to be delivered during the following quarter (or, in lieu of product or process changes,
Lender and Fannie Mae may discuss prospective price adjustments to compensate Fannie Mae for the risks
associated with such Mortgages). If Fannie Mae and Lender cannot agree on the appropriate actions to be
taken during the following quarter to address high risk Mortgages, then Fannie Mae reserves the right to
discontinue accepting such Mortgages.
Master Agreement MA02373.2
VAR 5 - 2
Amendment 21
13.
With respect to all Mortgages underwritten using the other AUS, the property value must be supported by
an interior and exterior appraisal performed using the Desktop Underwriter Quantitative Analysis
Appraisal Report (Form 2055) in accordance with the requirements in the DU Guide, regardless of the
finding by the other AUS. If a Mortgage is not eligible for Form 2055, per the DU Guide, then a full
appraisal in accordance with the Fannie Mae Selling Guide is required.
14.
If Fannie Mae determines that Lender is using these provisions in any manner that is adversely selecting or
harming Fannie Mae, then Fannie Mae may terminate Lender’s ability to deliver Mortgages underwritten
by the other AUS upon 90-days notice.
15.
Mortgages underwritten using the other AUS may only be delivered to Fannie Mae through December 31,
2002.
Master Agreement MA02373.2
VAR 5 - 3
Amendment 21
Schedule “A”
Schedule of Mortgage Loans
1000944569
1000951853
1000955946
1000961258
1000966992
1000969418
1000974228
1000978633
1000988020
1000994531
1000995280
1000999506
1000999605
1001002284
1001002573
1001003662
1001003688
1001003886
1001006103
1001006111
1001007945
1001011400
1001011418
1001012770
1001013570
1001016813
1001018652
1001022605
1001022654
1001024312
1001027091
1001027273
1001027521
1001027935
1001028032
1001029154
1001029683
1001030244
1001031713
1001032422
1001033503
1001033842
Master Agreement MA02373.2
VAR 5 - 4
Amendment 21
1001034402
1001036530
1001036886
1001036902
1001036936
1001037058
1001037538
1001037918
1001037942
1001039187
1001040417
1001040524
1001040573
1001040771
1001040854
1001041951
1001044633
1001046083
1001046281
1001048238
1001051141
1001051414
1001053253
1001053410
1001064144
1001066180
1001066834
1001069507
1001069838
1001071784
1001081502
1001088275
Master Agreement MA02373.2
VAR 5 - 5
Amendment 21
Contract No. A06302.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$: 40,400,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
December 1, 2002 - December 1, 2002
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Crescent Credit Plus Fixed-Rate Mortgage Product.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06302.2
FRM - 1
Amendment 21
Contract No. A06302.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
December 1, 2002 - December 1, 2002
Guaranty Fee:
41.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
Pool Purchase Contract No. A06302.2
FRM - 2
Amendment 21
Contract No. A06743.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$25,500,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
December 1, 2002 - December 1, 2002
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide,
Guide to Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06743.2
FRM - 1
Amendment 21
Contract No. A06743.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
December 1, 2002
Guaranty Fee:
35.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06743.2
FRM - 2
Amendment 21
[LETTERHEAD OF FANNIEMAE]
December 18, 2002
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285 115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 22
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 21 (dated 12/15/2002) with pages VAR
1 – 1 through VAR 1 – 11 (dated 12/18/2002) behind the
Variances
tab.
•
Modified Pool Purchase Contract Numbers –
(a)
A06302 – Replace page FRM – 1 (dated 12/5/2002) with page FRM – 1 (dated 12/18/2002) behind
the
Fixed-Rate
tab.
(a)
A06724 – Replace pages FRM – 1 and FRM – 2 (dated 11/22/2002) with pages FRM – 1 and FRM –
2 (dated 12/18/2002) behind the
Fixed-Rate
tab.
(b)
A06743 – Replace pages FRM – 1 (dated 12/5/2002) with page FRM – 1 (dated 12/18/2002) behind
the
Fixed-Rate
tab.
Master Agreement MA02373.2
LE - 1
Amendment 22
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate
original of this Letter Agreement to
Diane Stokes
at Fannie Mae within ten business days of the date this Letter
Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this
Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter
Agreement null and void.
Sincerely,
F
ANNIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and accepted.
C
RESCENT
B
ANK AND
T
RUST
C
OMPANY
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
12-20-02
Master Agreement MA02373.2
LE - 2
Amendment 22
VAR 1
Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements described
as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1. Fannie
Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages
may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of Lender by offering to buy or accepting delivery of any
Mortgages. A breach of any of Fannie
Master Agreement MA02373.2
VAR 1 - 1
Amendment 22
Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a
breach of warranty by Lender, as provided in the Selling Guide.
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific information
with respect to the corresponding Mortgages being delivered will be completed and added to this
Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 22
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage –
value not to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets,
but does not want to deal will all regular documentation
requirements, and for borrowers who are changing jobs,
between jobs, relocating, retiring, or have recently
become self-employed. All borrowers must meet credit
score requirements. No loans to builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report
required for all loan types. Plus, a review appraisal if the
transaction is a refinance and the LTV is greater than
75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit
score of 700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65%
with a credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit
score of 700; 70% with a credit score of 680.
2-unit: COR to 65% with a credit score of 700; 60%
with a credit score of 680.
• 2nd Homes
1-unit only; PMM & R/T Refi to 80% with a credit
score of 720; 75% with a credit score of 700; 70% with
a credit score of 680; COR to 70% with a credit score of
700; 65% with a credit score of 680.
Master Agreement MA02373.2
VAR 1 - 3
Amendment 22
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Trade Lines
Three (3) rated trades
Credit History
24 Months
Credit Explanations
Not stated
Mortgage/Revolving/
No Foreclosures.
Installment
No Bankruptcies.
No 30-day lates on any mortgages in the past 24
months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Liquid assets (checking, savings, CD’s, money
market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Non-depository assets (stocks, bonds, retirement
funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report.
Rental history verification not required.
Salaried/Wage Earner Employment Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/Balance Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony, child
support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and overtime and
bonus income
No verification. Stated income only.
Commission income and independent contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 22
December 2002 30-Year FRM
Bulk Mortgage Delivery Addendum
Maximum Volume: $6,151,875.00
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 22
December 2002 30 Year FRM
Schedule A
Portfolio Summary
30-year Fixed-Rate with SMC
Count
:
12
Volume
:
$
1,801,735.00
WAC
:
6.6
WA OLTV
:
88.9
WA CLTV
:
88.9
WA MTMLTV
:
88.9
WA State RTerm
:
360
WA Calc RTerm
:
0
WA Seas
:
1
Pct Full/Alt Doc
:
0.00
%
Pct Low/No Doc
:
100.00
%
30-year Fixed-Rate Non-SMC
Count
:
29
Volume
:
$
4,350,140.00
WAC
:
6.4
WA OLTV
:
69.9
WA CLTV
:
69.9
WA MTMLTV
:
69.9
WA State RTerm
:
360
WA Calc RTerm
:
0
WA Seas
:
1
Pct Full/Alt Doc
:
0.00
%
Pct Low/No Doc
:
100.00
%
Pct Approved
:
96.56
%
Pct Referred
:
0.00
%
Pct RWC
:
3.44
%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 22
December 2002 30 Year FRM
Schedule B
Lender Loan Numbers
30-year with SMC
1001085768
1000853620
1001019130
1001020666
1001017894
1001050549
1001032836
1001060381
1001062312
1001097193
1000791333
1000992220
30-year non-SMC
1001073269
1001041415
1001049020
1001036316
1001054822
1001008232
1001014545
1001004215
1001027802
1000990711
1000984623
1001035995
1001050655
1001053022
1001058633
1001013042
1001061173
1001057551
1001052107
1001038395
1000990836
1001016219
1001059227
1001026614
1001051786
1001040441
1001036266
1001045960
1001067832
Master Agreement MA02373.2
VAR 1 - 7
Amendment 22
December 2002 15-Year FRM
Bulk Mortgage Delivery Addendum
Maximum Volume: $4,133,100.00
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 8
Amendment 22
December 2002 15-Year FRM
Schedule A
Portfolio Summary
Count
:
32
Volume
:
$
4,133,100.00
WAC
:
5.9
WA OLTV
:
61.2
WA CLTV
:
61.2
WA MTMLTV
:
61.2
WA State RTerm
:
180
WA Calc RTerm
:
0
WA Seas
:
1
Pct Full/Alt Doc
:
0.00
%
Pct Low/No Doc
:
100.00
%
Pct Approved
:
100.00
%
Pct Referred
:
0.00
%
Pct RWC
:
0.00
%
Master Agreement MA02373.2
VAR 1 - 9
Amendment 22
December 2002 15-Year FRM
Schedule B
Lender Loan Numbers
1001023843
1000982015
1000992808
1000863777
1001071479
1001071354
1001062452
1001038312
1001031754
1001032133
1001033040
1001051026
1001011160
1001031333
1001036498
1001016193
1001042470
1001046869
1001045630
1001050440
1001026309
1001090362
1001064334
1001057056
1001070372
1001041373
1000995967
1001009321
1000957686
1001042645
1001047784
1001047537
Master Agreement MA02373.2
VAR 1 - 10
Amendment 22
Contract No. A06302.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-003-9
Crescent Mortgage Services
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$144,900,550.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
December 1, 2002 – December 1, 2002
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A
No Ratio, 444 - Flow Alt-A NINA, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Crescent Credit Plus Fixed-Rate Mortgage Product.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06302.2
FRM - 1
Amendment 22
Contract No. A06724.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-003-9
Crescent Mortgage Services
24837-002-5
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$14,400,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
December 1, 2002 - December 1, 2002
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
Per Selling Guide, Guide to Underwriting with
Desktop Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Pool Purchase Contract No. A06724.2
FRM - 1
Amendment 22
Contract No. A06724.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
N/A *
Guaranty Fee:
25.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
*
If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06724.2
FRM - 2
Amendment 22
Contract No. A06743.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-003-9
Crescent Mortgage Services
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$29,500,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
December 1, 2002 - December 1, 2002
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A
No Ratio, 444 - Flow Alt-A NINA, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06743.2
FRM - 1
Amendment 22
[LETTERHEAD OF FANNIEMAE]
January 7, 2003
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285 115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 23
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Variance – Replace pages VAR 1 – 11 (dated 12/18/2002) with pages VAR 1 – 11 (dated
1/7/2003) behind the
Variances
tab.
•
Modified Pool Purchase Contracts –
(a)
A06302 – Replace pages FRM – 1 and FRM – 2 (dated 12/18/2002) with pages FRM – 1 and
FRM – 2 (dated 1/7/2003) behind the
Fixed-Rate
tab.
(b)
A06724 – Replace pages FRM – 1 and FRM – 2 (dated 12/18/2002) with pages FRM – 1 and
FRM – 2 (dated 1/7/2003) behind the
Fixed-Rate
tab.
(c)
A06743 – Replace pages FRM – 1 and FRM – 2 (dated 12/18/2002) with pages FRM – 1 and
FRM – 2 (dated 1/7/2003) behind the
Fixed-Rate
tab.
(d)
A06808 – Replace pages FRM – 1 and FRM – 2 (dated 12/5/2002) with pages FRM – 1 and FRM
– 2 (dated 1/7/2003) behind the
Fixed-Rate
tab.
Master Agreement MA02373.2
LE - 1
Amendment 23
(e)
A06810 – Replace pages FRM – 1 and FRM – 2 (dated 12/5/2002) with pages FRM – 1 and FRM
– 2 (dated 1/7/2003) behind the
Fixed-Rate
tab.
(f)
A06901 – Replace pages FRM – 1 and FRM – 2 (dated 11/22/2002) with pages FRM – 1 and
FRM – 2 (dated 1/7/2003) behind the
Fixed-Rate
tab.
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate
original of this Letter Agreement to
Diane Stokes
at Fannie Mae within ten business days of the date this Letter
Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this
Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter
Agreement null and void.
Sincerely,
F
ANNIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and accepted.
C
RESCENT
B
ANK
AND
T
RUST
C
OMPANY
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
1-8-03
Master Agreement MA02373.2
LE - 2
Amendment 23
VAR
1
Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements described
as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (‘‘Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1. Fannie
Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages
may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of
Master Agreement MA02373.2
VAR 1 - 1
Amendment 23
Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s
underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of
warranty by Lender, as provided in the Selling Guide.
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific information
with respect to the corresponding Mortgages being delivered will be completed and added to this
Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 23
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage –
value not to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets,
but does not want to deal will all regular documentation
requirements, and for borrowers who are changing jobs,
between jobs, relocating, retiring, or have recently
become self-employed. All borrowers must meet credit
score requirements. No loans to builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report
required for all loan types. Plus, a review appraisal if
the transaction is a refinance and the LTV is greater
than 75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit
score of 700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65%
with a credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit
score of 700; 70% with a credit score of 680.
2-unit: COR to 65% with a credit score of 700; 60%
with a credit score of 680.
• 2nd Homes
1-unit only; PMM & R/T Refi to 80% with a credit
score of 720; 75% with a credit score of 700; 70% with
a credit score of 680; COR to 70% with a credit score of
700; 65% with a credit score of 680.
Master Agreement MA02373.2
VAR 1 - 3
Amendment 23
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Trade Lines
Three (3) rated trades
Credit History
24 Months
Credit Explanations
Not stated
Mortgage/Revolving/
No Foreclosures.
Installment
No Bankruptcies
No 30-day lates on any mortgages in the past 24
months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Liquid assets (checking, savings, CD’s, money
market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Non-depository assets (stocks, bonds, retirement
funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report.
Rental history verification not required.
Salaried/Wage Earner Employment Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/Balance Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony, child
support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and overtime and
bonus income
No verification. Stated income only.
Commission income and independent contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 23
January 2003 30-Year FRM
Bulk Mortgage Delivery Addendum
Maximum Volume: $11,370,730
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 23
January 2003 30 Year FRM
Schedule A
Portfolio Summary
30-year Fixed-Rate
Count
:
68
Volume
:
$ 11,370,730.00
WAC
:
6.4
WA OLTV
:
76.0
WA CLTV
:
76.0
WA State RTerm
:
360
WA Calc RTerm
:
0
WA Seas
:
0
Pct Full/Alt Doc
:
0.00
%
Pct Low/No Doc
:
100.00
%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 23
January 2003 30 Year FRM
Schedule B
Lender Loan Numbers
1001001039
1001003415
1000952455
1000979383
1000962306
1001043692
1001051406
1001042835
1001040052
1001063641
1001055902
1001028461
1001019825
1000903516
1000696730
1001092285
1001076692
1001079969
1001068616
1001072279
1001071370
1001085008
1001105582
1001066990
1001067295
1001079456
1001001161
1001065828
1001064821
1001075264
1001114592
1001074622
1001065794
1001087533
1001098704
1001031762
1001027067
1001106945
1001071990
1001080405
Master Agreement MA02373.2
VAR 1 - 7
Amendment 23
1001020880
1001113248
1001000676
1001056785
1001107414
1001075249
1000999126
1001130267
1001082179
1001053063
1001072014
1001070455
1001069499
1001104163
1001100922
1001038437
1000972727
1001084027
1001064458
1001068814
1001079316
1001074887
1001064474
1001067709
1001032273
1001044807
1000974798
1001070034
Master Agreement MA02373.2
VAR 1 - 8
Amendment 23
January 2003 15-Year FRM
Bulk Mortgage Delivery Addendum
Maximum Volume: $3,967,800
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 9
Amendment 23
January 2003 15-Year FRM
Schedule A
Portfolio Summary
Count
:
26
Volume
:
$
3,967,800.00
WAC
:
5.7
WA OLTV
:
63.2
WA CLTV
:
63.2
WA State RTerm
:
180
WA Calc RTerm
:
0
WA Seas
:
1
Pct Full/Alt Doc
:
0.00
%
Pct Low/No Doc
:
100.00
%
Master Agreement MA02373.2
VAR 1 - 10
Amendment 23
January 2003 15-Year FRM
Schedule B
Lender Loan Numbers
1000997294
1001064045
1001064052
1001062361
1001062429
1001079530
1001069242
1001088945
1001101128
1001077096
1001027307
1001037165
1001061264
1001084126
1001061835
1000926137
1001061843
1000998482
1001047123
1001053089
1001065950
1001063625
1001093382
1001077393
1001068319
1000998698
Master Agreement MA02373.2
VAR 1 - 11
Amendment 23
Contract No. A06302.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
24837-000-9
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$155,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide,
Guide to Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Crescent Credit Plus Fixed-Rate Mortgage Product.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06302.2
FRM - 1
Amendment 23
Contract No. A06302.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Guaranty Fee:
41.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06302.2
FRM - 2
Amendment 23
Contract No. A06724.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
24837-000-9
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$19,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
Per Selling Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Pool Purchase Contract No. A06724.2
FRM - 1
Amendment 23
Contract No. A06724.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Guaranty Fee:
27.50 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06724.2
FRM - 2
Amendment 23
Contract No. A06743.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$32,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide,
Guide to Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06743.2
FRM - 1
Amendment 23
Contract No. A06743.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Guaranty Fee:
35.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06743.2
FRM - 2
Amendment 23
Contract No. A06808.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
24837-000-9
Eligible Products:
20-, 25- and 30-year fixed-rate level-payment
mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$42,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
340 - Level I Expanded Approval, 341 - Level II
Expanded Approva, 342 - Level III Expanded Approv,
361 - 3rd Autom U-Writng SYS, 376 - Level III TPR,
459 - Level II Timely Payment R, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
20-, 25-, and 30-year Fixed Rate Mortgages with LTVs <= 80%.
Pool Purchase Contract No. A06808.2
FRM - 1
Amendment 23
Contract No. A06808.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
20-, 25- and 30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
N/A *
Guaranty Fee:
15.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06808.2
FRM - 2
Amendment 23
Contract No. A06810.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
24837-000-9
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$25,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
340 - Level I Expanded Approval, 341 - Level II
Expanded Approva, 342 - Level III Expanded Approv,
361 - 3rd Autom U-Writng SYS, 376 - Level III TPR,
459 - Level II Timely Payment R, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
10- and 15-Year Fixed Rate Mortgages with LTVs <= 80%.
Pool Purchase Contract No. A06810.2
FRM - 1
Amendment 23
Contract No. A06810.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
N/A *
Guaranty Fee:
13.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06810.2
FRM - 2
Amendment 23
Contract No. A06901.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$5,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
281 - Financed Prem Opt LTV 90, 361 - 3rd Autom U-
Writng SYS, 442 - Flow Alt-A Stated Income, 443 -
Flow Alt-A No Ratio, 444 - Flow Alt-A NINA, and Per
Selling Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Mortgages delivered under this contract are eligible for Radian Secondary Market Coverage.
Pool Purchase Contract No. A06901.2
FRM - 1
Amendment 23
Contract No. A06901.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
N/A *
Guaranty Fee:
24.50 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
* If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06901.2
FRM - 2
Amendment 23
[LETTERHEAD OF FANNIEMAE]
January 15, 2003
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285 115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 24
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Variances – Replace pages VAR 1 – 1 through VAR 1 – 11 (dated 1/7/2003) with pages VAR 1
– 1 through VAR 1 – 8 (dated 1/15/2003) behind the Variances tab.
•
Modified Pool Purchase Contracts –
(a)
A06302 – Replace pages FRM – 1 and FRM – 2 (dated 1/7/2003) with pages FRM – 1
and FRM – 2 (dated 1/15/2003) behind the
Fixed-Rate
tab.
(b)
A06743 – Replace pages FRM – 1 and FRM – 2 (dated 1/7/2003) with pages FRM – 1
and FRM – 2 (dated 1/15/2003) behind the
Fixed-Rate
tab.
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate
original of this Letter Agreement to
Diane Stokes
at Fannie Mae within ten
Master Agreement MA02373.2
LE - 1
Amendment 24
business days of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not receive an
executed duplicate original of this Letter Agreement from the Lender within ten business days, Fannie Mae
may, at its option, declare this Letter Agreement null and void.
Sincerely,
F
ANNIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and accepted.
C
RESCENT
B
ANK AND
T
RUST
C
OMPANY
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
1-12-03
Master Agreement MA02373.2
LE - 2
Amendment 24
VAR 1 Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements described
as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1. Fannie
Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages
may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of
Master Agreement MA02373.2
VAR 1 - 1
Amendment 24
Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s
underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of
warranty by Lender, as provided in the Selling Guide.
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific information
with respect to the corresponding Mortgages being delivered will be completed and added to this
Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 24
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage – value not
to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets, but does
not want to deal will all regular documentation requirements,
and for borrowers who are changing jobs, between jobs,
relocating, retiring, or have recently become self-employed. All
borrowers must meet credit score requirements. No loans to
builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report required for
all loan types. Plus, a review appraisal if the transaction is a
refinance and the LTV is greater than 75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit score of
700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65% with a
credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit score of
700; 70% with a credit score of 680.
• 2nd Homes
2-unit: COR to 65% with a credit score of 700; 60% with a
credit score of 680.
1-unit only; PMM & R/T Refi to 80% with a credit score of 720;
75% with a credit score of 700; 70% with a credit score of 680;
COR to 70% with a credit score of 700; 65% with a credit score
of 680.
Master Agreement MA02373.2
VAR 1 - 3
Amendment 24
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Trade Lines
Three (3) rated trades
Credit History
24 Months
Credit Explanations
Not stated
Mortgage/Revolving/
No Foreclosures.
Installment
No Bankruptcies.
No 30-day lates on any mortgages in the past 24 months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down payment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down payment.
Liquid assets (checking, savings, CD’s,
money market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down payment.
Non-depository assets (stocks, bonds,
retirement funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down payment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report. Rental
history verification not required.
Salaried/Wage Earner Employment
Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment
Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/Balance
Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony,
child support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and
overtime and bonus income
No verification. Stated income only.
Commission income and independent
contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 24
January 2003 Second Deal 30-Year FRM
Bulk Mortgage Delivery Addendum
Maximum Volume: $10,118,840
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 24
January 2003 Second Deal 30 Year FRM
Schedule A
Portfolio Summary
30-year Fixed-Rate
Count
:
59
Volume
:
$10,118,840.00
WAC
:
6.4
WA OLTV
:
74.8
WA CLTV
:
74.8
WA State RTerm
:
359
WA Calc RTerm
:
0
WA Seas
:
2
Pet Full/Alt Doc
:
0.00%
Pct Low/No Doc
:
100.00%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 24
January 2003 30 Year FRM
Schedule B
Lender Loan Numbers with
&
without SMC
Loan Number
UPB
1000999761
96,000.00
1001005600
177,000.00
1001026895
200,000.00
1001034535
100,068.00
1001064904
264,200.00
1001070471
190,700.00
1001070505
121,000.00
1001074812
202,500.00
1001076650
211,000.00
1001077799
140,000.00
1001081296
147,000.00
1001081585
151,300.00
1001085735
215,400.00
1001086329
125,000.00
1001089026
149,200.00
1001091113
80,000.00
1001094273
119,000.00
1001097144
228,000.00
1001097524
181,000.00
1001098357
150,000.00
1001099488
238,400.00
1001101342
157,000.00
1001101904
247,000.00
1001105871
188,000.00
1001107380
229,250.00
1001110129
173,000.00
1001112521
240,000.00
1001113404
145,600.00
1001113800
118,000.00
1001114410
190,000.00
1001115615
240,000.00
1001116019
290,000.00
1001116761
235,000.00
1001117843
148,000.00
1001118106
83,350.00
1001122629
127,000.00
1001124807
83,000.00
1001126711
100,000.00
1001127008
211,400.00
1001128857
157,000.00
Master Agreement MA02373.2
VAR 1 - 7
Amendment 24
1001131463
220,400.00
1001135787
107,200.00
1001135928
252,122.00
1001137254
130,000.00
1001143153
204,000.00
1001149788
87,500.00
1000915403
157,000.00
1001092384
165,750.00
1001055936
103,500.00
1001058302
205,000.00
1001106135
143,100.00
1001106457
313,200.00
1001109295
79,200.00
1001113677
161,500.00
1001116712
270,000.00
1001129707
211,500.00
1001139227
76,500.00
1001142445
175,000.00
1001153228
207,000.00
Master Agreement MA02373.2
VAR 1 - 8
Amendment 24
Contract No. A06302.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$163,500,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide,
Guide to Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Crescent Credit Plus Fixed-Rate Mortgage Product.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06302.2
FRM - 1
Amendment 24
Contract No. A06302.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30 year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Guaranty Fee:
41.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06302.2
FRM - 2
Amendment 24
Contract No. A06743.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$32,500,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide,
Guide to Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06743.2
FRM - 1
Amendment 24
Contract No. A06743.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
January 1, 2003 - January 1, 2003
Guaranty Fee:
35.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06743.2
FRM - 2
Amendment 24
[LETTERHEAD OF FANNIEMAE]
January 21, 2003
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285 115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 25
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 8 (dated 1/15/2003) with pages VAR 1 –
1 through VAR 1 – 1 through VAR 1 – 7 (dated 1/21/2003) behind the
Variances
tab.
•
Modified Pool Purchase Contract Number A06724 – Replace page FRM – 1 (dated 1/7/2003) with page
FRM – 1 (dated 1/21/2003) behind the
Fixed-Rate
tab.
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate
original of this Letter Agreement to
Diane Stokes
at Fannie Mae
Master Agreement MA02373.2
LE - 1
Amendment 25
within ten business days of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not
receive an executed duplicate original of this Letter Agreement from the Lender within ten business days,
Fannie Mae may, at its option, declare this Letter Agreement null and void.
Sincerely,
F
ANNIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and accepted.
C
RESCENT
B
ANK
AND
T
RUST
C
OMPANY
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
1-24-03
Master Agreement MA02373.2
LE - 2
Amendment 25
VAR 1 Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements described
as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1. Fannie
Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages
may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of Lender by offering to buy or accepting delivery of any
Mortgages. A breach of any of Fannie
Master Agreement MA02373.2
VAR 1 - 1
Amendment 25
Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a
breach of warranty by Lender, as provided in the Selling Guide.
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific information
with respect to the corresponding Mortgages being delivered will be completed and added to this
Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 25
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage – value not
to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets, but does
not want to deal will all regular documentation requirements,
and for borrowers who are changing jobs, between jobs,
relocating, retiring, or have recently become self-employed. All
borrowers must meet credit score requirements. No loans to
builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report required for
all loan types. Plus, a review appraisal if the transaction is a
refinance and the LTV is greater than 75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit score of
700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65% with a
credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit score of
700; 70% with a credit score of 680.
2-unit: COR to 65% with a credit score of 700; 60% with a
credit score of 680.
• 2nd Homes
1-unit only; PMM & R/T Refi to 80% with a credit score of 720;
75% with a credit score of 700; 70% with a credit score of 680;
COR to 70% with a credit score of 700; 65% with a credit score
of 680.
Master Agreement MA02373.2
VAR 1 - 3
Amendment 25
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Trade Lines
Three (3) rated trades
Credit History
24 Months
Credit Explanations
Not stated
Mortgage/Revolving/
No Foreclosures.
Installment
No Bankruptcies.
No 30-day lates on any mortgages in the past 24 months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down payment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down payment.
Liquid assets (checking, savings, CD’s,
money market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down payment.
Non-depository assets (stocks, bonds,
retirement funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down payment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report. Rental
history verification not required.
Salaried/Wage Earner Employment
Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment
Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/Balance
Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony,
child support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and
overtime and bonus income
No verification. Stated income only.
Commission income and independent
contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 25
January 2003 Third Deal 15-Year FRM
Bulk Mortgage Delivery Addendum
Maximum Volume: $2,442,700
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 25
January 2003 Third Deal 15 Year FRM
Schedule A
Portfolio Summary
15-year Fixed-Rate
Count
:
18
Volume
:
$
2,442,700.00
WAC
:
5.8
WA OLTV
:
63.6
WA CLTV
:
63.6
WA State RTerm
:
180
WA Calc RTerm
:
0
WA Seas
:
1
Pct Full/Alt Doc
:
0.00%
Pct Low/No Doc
:
100.00%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 25
January 2003 15 Year FRM
Schedule B
Lender Loan Numbers without SMC
1001063013
182,000.00
1000949642
123,500.00
1001147584
100,200.00
1001033123
87,000.00
1001114519
235,000.00
1001065976
132,000.00
1001084399
53,000.00
1001088473
101,000.00
1001050291
150,000.00
1001130846
125,000.00
1001141900
170,000.00
1001095932
135,000.00
1001119914
166,000.00
1001118650
170,000.00
1001106978
65,000.00
1001067162
257,000.00
1001096252
52,000.00
1001087152
139,000.00
Master Agreement MA02373.2
VAR 1 - 7
Amendment 25
Contract No. A06724.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
24837-000-9
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$21,500,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
January 1, 2003 - January 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
Per Selling Guide, Guide to Underwriting with
Desktop Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Pool Purchase Contract No. A06724.2
FRM - 1
Amendment 25
[LETTERHEAD OF FANNIEMAE]
February 10, 2003
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285 115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 26
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 8 (dated 1/15/2003) with pages VAR 1 –
1 through VAR 1 – 12 (dated 2/11/2003) behind the
Variances
tab.
•
Add Pool Purchase Contract Numbers –
(a)
A06302 – Replace pages FRM – 1 and FRM – 2 (dated 1/15/2003) with pages FRM – 1 and FRM –
2 (dated 2/11/2003) behind the
Fixed-Rate
tab.
(b)
A06724 – Replace pages FRM – 1 and FRM – 2 (dated 1/7/2003) with pages FRM – 1 and FRM – 2
(dated 2/11/2003) behind the
Fixed-Rate
tab.
(c)
A06743 – Replace pages FRM – 1 and FRM – 2 (dated 1/15/2003) with pages FRM – 1 and FRM –
2 (dated 2/11 /2003) behind the
Fixed-Rate
tab.
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a
Master Agreement MA02373.2
LE - 1
Amendment 26
duly-executed duplicate original of this Letter Agreement to
Diane Stokes
at Fannie Mae within ten business
days of the date this Letter Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed
duplicate original of this Letter Agreement from the Lender within ten business days, Fannie Mae may, at its
option, declare this Letter Agreement null and void.
Sincerely,
F
ANNIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and
accepted.
C
RESCENT
B
ANK AND
T
RUST
C
OMPANY
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
2-12-03
Master Agreement MA02373.2
LE - 2
Amendment 26
VAR 1
Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements
described as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s
assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income
and assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify
reported income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this
Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products
are described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1.
Fannie Mae reserves the right to review all mortgages offered for sale by Lender, and although certain
mortgages may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such
mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that Fannie Mae does not waive
any of such representations and warranties of Lender by offering to buy or accepting delivery of any
Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as
described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling
Guide.
Master Agreement MA02373.2
VAR 1 - 1
Amendment 26
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract A06302, A06743, and A06724 (fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the
Mortgages has been originated or serviced with fraud, misrepresentation, or negligence, or with
any act that is dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer
to decline to insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a
mortgage insurance policy exclusion to coverage encompassing fraud, misrepresentation,
negligence, or dishonest, criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific
information with respect to the corresponding Mortgages being delivered will be completed and added
to this Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 26
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage –
value not to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets, but
does not want to deal will all regular documentation
requirements, and for borrowers who are changing jobs,
between jobs, relocating, retiring, or have recently become
self-employed. All borrowers must meet credit score
requirements. No loans to builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report required
for all loan types. Plus, a review appraisal if the
transaction is a refinance and the LTV is greater than 75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit score
of 700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65% with a
credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit score
of 700; 70% with a credit score of 680.
2-unit: COR to 65% with a credit score of 700; 60% with a
credit score of 680.
• 2nd Homes
1-unit only; PMM & R/T Refi to 80% with a credit score
of 720; 75% with a credit score of 700; 70% with a credit
score of 680; COR to 70% with a credit score of 700; 65%
with a credit score of 680.
Master Agreement MA02373.2
VAR 1 - 3
Amendment 26
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Trade Lines
Three (3) rated trades
Credit History
24 Months
Credit Explanations
Not stated
Mortgage/Revolving/
No Foreclosures.
Installment
No Bankruptcies.
No 30-day lates on any mortgages in the past 24 months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the downpayment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the downpayment.
Liquid assets (checking, savings, CD’s, money
market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the downpayment.
Non-depository assets (stocks, bonds,
retirement funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the downpayment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report. Rental
history verification not required.
Salaried/Wage Earner Employment
Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment
Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/Balance Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony, child
support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and overtime
and bonus income
No verification. Stated income only.
Commission income and independent
contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 26
February 2003 First Deal 15-Year FRM without SMC
Bulk Mortgage Delivery Addendum
Maximum Volume: $4,700,000
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A-1” unless the Mortgage
doesn’t meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar
acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described
in Profile Summary set forth in Schedule “A-1” and as identified on Schedule “B-1”. The term “CLTV” used in
Schedule “A-1” and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the
loan-to-value ratio based upon the issue date principal balance of each Mortgage and the original appraised
value of the property securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 26
February 2003 First Deal 15 Year FRM without SMC
Schedule A-1
Portfolio Summary
15-year Fixed-Rate
Count
:
34
Volume
:
$
4,738,285
WAC
:
5.7
WA OLTV
:
61.8
WA CLTV
:
61.8
WA State RTerm
:
179
WA Calc RTerm
:
0
WA Seas
:
2
Pct Full/Alt Doc
:
0.0
%
Pct Low/No Doc
:
100
%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 26
February 2003 15 Year FRM
Schedule B-1
Lender Loan Numbers without SMC
1001058310
1001003654
1001104296
1001128998
1001075413
1001095304
1001085446
1001186749
1001140282
1001142049
1001142023
1001139169
1001163540
1001137023
1001135332
1001141454
1001121548
1001121282
1001108024
1001098589
1001094380
1001178480
1001176120
1001070927
1001091022
1001152527
1001152584
1001152550
1001159555
1001148822
1001148913
1001165263
1001123296
1001144755
Master Agreement MA02373.2
VAR 1 - 7
Amendment 26
February 2003 First Deal 30-Year FRM with & without SMC
Bulk Mortgage Delivery Addendum
Maximum Volume: $13,900,000
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A-2” unless the Mortgage
doesn’t meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar
acceptable reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described
in Profile Summary set forth in Schedule “A-2” and as identified on Schedule “B-2” for loans without SMC and
Schedule “B-3” for loans with SMC. The term “CLTV” used in Schedule “A-2” and this Contract is the
“Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio based upon the issue
date principal balance of each Mortgage and the original appraised value of the property securing each such
Mortgage.
Master Agreement MA02373.2
VAR 1 - 8
Amendment 26
February 2003 First Deal 30 Year FRM with & without SMC
Schedule A-2
Portfolio Summary
30-year Fixed-Rate
Count
:
80
Volume
:
$
13,971,608
WAC
:
6.3
WA OLTV
:
70.5
WA CLTV
:
70.5
WA State RTerm
:
359
WA Calc RTerm
:
0
WA Seas
:
2
Pct Full/Alt Doc
:
0.00
Pct Low/No Doc
:
100%
Master Agreement MA02373.2
VAR 1 - 9
Amendment 26
February 2003 30 Year FRM
Schedule B-2
Lender Loan Numbers without SMC
1001102407
1001123353
1001113883
1001113420
1001079787
1001095106
1000960722
1000959435
1000662286
1001168960
1001168762
1001186178
1001142247
1001147659
1001149317
1001148038
1001135357
1001137510
1001160801
1001160769
1001163953
1001164563
1001146206
1001145299
1001139425
1001128535
1001146966
1001110996
1001114089
1001094398
1001094992
1000965754
1001061355
1001068996
1001066552
1001044336
1000929313
1001178134
1001188471
1001184538
Master Agreement MA02373.2
VAR 1 - 10
Amendment 26
1001100187
1001100294
1001103082
1001114204
1001115540
1001108701
1001107679
1001087897
1001152808
1001152998
1001149549
1001166014
1001167277
1001128782
1001126166
1001128006
1001130531
1001130861
1001130788
1001120722
1001119872
1001125622
1001143070
1001144789
1001133840
1001138138
1001136488
1001137114
Master Agreement MA02373.2
VAR 1 - 11
Amendment 26
February 2003 30 year FRM
Schedule B-3
Lender Loan Numbers with SMC
1001100096
1001147352
1001131646
1001159951
1001127321
1001085800
1001108362
1001178399
1000982122
1001084803
1001156494
1001141546
Master Agreement MA02373.2
VAR 1 - 12
Amendment 26
Contract No. A06302.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$175,400,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
February 1, 2003 – February 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A
No Ratio, 444 - Flow Alt-A NINA, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Crescent Credit Plus Fixed-Rate Mortgage Product.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06302.2
FRM - 1
Amendment 26
Contract No. A06302.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed under
this Contract:
February 1, 2003 – February 1, 2003
Guaranty Fee:
41.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
Pool Purchase Contract No. A06302.2
FRM - 2
Amendment 26
Contract No. A06724.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$26,200,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed under
this Contract:
February 1, 2003 – February 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
Per Selling Guide, Guide to Underwriting with
Desktop Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Pool Purchase Contract No. A06724.2
FRM - 1
Amendment 26
Contract No. A06724.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools
formed under this Contract:
February 1, 2003 - February 1, 2003
Guaranty Fee:
26.00 Basis Points
Buyup/Buydown Grid:
Early (see additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
Pool Purchase Contract No. A06724.2
FRM - 2
Amendment 26
Contract No. A06743.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase
Transactions for Delivery during First
Delivery Term:
$34,600,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools
formed under this Contract:
February 1, 2003 – February 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide,
Guide to Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06743.2
FRM - 1
Amendment 26
Contract No. A06743.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools
formed under this Contract:
February 1, 2003 – February 1, 2003
Guaranty Fee:
35.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06743.2
FRM - 2
Amendment 26
[LETTERHEAD OF FANNIEMAE]
February 19, 2003
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285
115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 27
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Variances – Replace page VAR 1 – 1 through 12 (dated 2/11/2003) with pages VAR 1 – 1
through 8 (dated 2/19/2003) under the Variance Tab.
•
Modified Pool Purchase Contracts –
1.
Replace Pool Purchase Contract No. A06302, pages FRM – 1 through 2 (dated 2/11/2003)
with pages FRM - 1 through 2 (dated 2/19/2003) under the Fixed-Rate Tab.
2.
Replace Pool Purchase Contract No. A06724, page FRM – 1 (dated 2/11/2003) with page
FRM - 1 (dated 2/19/2003) under the Fixed-Rate Tab.
3.
Replace Pool Purchase Contract No. A06743, pages FRM – 1 through 2 (dated 2/11/2003)
with pages FRM - 1 through 2 (dated 2/19/2003) under the Fixed-Rate Tab.
Master Agreement MA02373.2
LE - 1
Amendment 27
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate
original of this Letter Agreement to
Diane Stokes
at Fannie Mae within ten business days of the date this Letter
Agreement is executed by Fannie Mae.
If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the Lender within
ten business days, Fannie Mae may, at its option, declare this Letter Agreement null and void.
Sincerely,
F
ANNIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and accepted.
C
RESCENT
B
ANK AND
T
RUST
C
OMPANY
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
2-21-03
Master Agreement MA02373.2
LE - 2
Amendment 27
VAR 1
Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements described
as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income, ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1. Fannie
Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages
may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of Lender by offering to buy or accepting delivery of any
Mortgages. A breach of any of Fannie
Master Agreement MA02373.2
VAR 1 - 1
Amendment 27
Mae’s underwriting criteria or any modification thereof, as described herein, shall be deemed to be a
breach of warranty by Lender, as provided in the Selling Guide.
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract
A06302,
A06743,
and
A06724
(fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific information
with respect to the corresponding Mortgages being delivered will be completed and added to this
Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 27
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage –
value not to exceed 33% of total.
Geographic Limitations
None.
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets,
but does not want to deal will all regular documentation
requirements, and for borrowers who are changing jobs,
between jobs, relocating, retiring, or have recently
become self-employed. All borrowers must meet credit
score requirements. No loans to builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report
required for all loan types. Plus, a review appraisal if
the transaction is a refinance and the LTV is greater
than 75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit
score of 700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65%
with a credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit
score of 700; 70% with a credit score of 680.
2-unit: COR to 65% with a credit score of 700; 60%
with a credit score of 680.
• 2nd Homes
1-unit only; PMM & R/T Refi to 80% with a credit
score of 720; 75% with a credit score of 700; 70% with
a credit score of 680; COR to 70% with a credit score of
700; 65% with a credit score of 680.
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Master Agreement MA02373.2
VAR 1 - 3
Amendment 27
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Trade lines
Three (3) rated trades
Credit History
24 months
Credit Explanations
Not stated
Mortgage/Revolving/
No Foreclosures.
Installment
No Bankruptcies.
No 30-day lates on any mortgages in the past 24
months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Liquid assets (checking, savings, CD’s, money
market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Non-depository assets (stocks, bonds, retirement
funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report.
Rental history verification not required.
Salaried/Wage Earner Employment Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/Balance Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony, child
support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and overtime and
bonus income
No verification. Stated income only.
Commission income and independent contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 27
February 2003 Second Deal 15-and 30 Year FRM with and without SMC
Bulk Mortgage Delivery Addendum
Maximum Volume: $8,287,366
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 27
February 2003 Second Deal 15- and 30-Year FRM with and without SMC
Schedule A
Portfolio Summary
15- and 30-year Fixed-Rate
Count
:
49
Volume
:
$
8,287,366.00
WAC
:
6.1
WA OLTV
:
70.0
WA CLTV
:
70.0
WA MTMLTV
:
70.0
WA State RTerm
:
309
WA Calc RTerm
:
0
WA Seas
:
1
Pct Full/Alt Doc
:
0.00
%
Pct Low/No Doc
:
100.00
%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 27
February 2003 Second Deal 15- and 30-Year FRM with and without SMC
Schedule B
Lender Loan Numbers
15-year Non SMC
1001142478
1001195351
1001162344
1001182862
1001171907
1001177680
1001205044
1001209731
1000950509
1001207875
1001205317
1001205283
1001152147
1001145109
1001156411
1001161148
30-year SMC
1001127453
1001160843
1001177052
1001084266
1001198926
1001169927
1001153053
Master Agreement MA02373.2
VAR 1 - 7
Amendment 27
30-year Non SMC
1001159530
1001086253
1000750552
1001198835
1001198728
1001190014
1001157088
1001158698
1001147980
1001184264
1001203726
1001204278
1001213592
1001083185
1001115474
1001175155
1001188414
1001182664
1001181732
1001148772
1001151305
1001147493
1001147196
1001146578
1001165750
1001157906
Master Agreement MA02373.2
VAR 1 - 8
Amendment 27
Contract No. A06302.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30 year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$180,400,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for
February 1, 2003 - February 1, 2003
Pools formed under this Contract:
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Crescent Credit Plus Fixed-Rate Mortgage Product.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06302.2
FRM - 1
Amendment 27
Contract No. A06302.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30 year fixed-rate level-payment mortgages
Earliest and Latest Dates for Pools
formed under this Contract:
February 1, 2003 - February 1, 2003
Guaranty Fee:
41.50 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
Pool Purchase Contract No. A06302.2
FRM - 2
Amendment 27
Contract No. A06724.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
10, 15 year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term:
$28,200,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for
Pools formed under this Contract:
February 1, 2003 - February 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
Per Selling Guide, Guide to Underwriting with
Desktop Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Pool Purchase Contract No. A06724.2
FRM - 1
Amendment 27
Contract No. A06743.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30 year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase
Transactions for Delivery during
First Delivery Term:
$36,100,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for
Pools formed under this Contract:
February 1, 2003 - February 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06743.2
FRM - 1
Amendment 27
Contract No. A06743.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30 - year fixed-rate level-payment mortgages
Earliest and Latest Dates for Pools
formed under this Contract:
February 1, 2003 - February 1, 2003
Guaranty Fee:
35.50 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
Pool Purchase Contract No. A06743.2
FRM - 2
Amendment 27
[LETTERHEAD OF FANNIEMAE]
March 7, 2003
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285 115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 28
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Master Conversion – Replace page MA – 4 (dated 2/5/2002) with page MA – 4 (dated
3/7/2003).
•
Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 8 (dated 2/19/2003) with pages VAR 1 –
1 through VAR 1 – 8 (dated 3/7/2003) behind the
Variances
tab.
•
Modified Pool Purchase Contracts A06302 and A06743 – Replace pages FRM – 1 and FRM - 2 (dated
2/19/2003) with pages FRM – 1 and FRM – 2 (dated 3/7/2003) behind the
Fixed-Rate
tab.
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate
original of this Letter Agreement to
Diane Stokes
at Fannie Mae within ten business days of the date this Letter
Agreement is executed by Fannie Mae. If Fannie Mae does not
Master Agreement MA02373.2
LE - 1
Amendment 28
receive an executed duplicate original of this Letter Agreement from the Lender within ten business days,
Fannie Mae may, at its option, declare this Letter Agreement null and void.
Sincerely,
F
ANNIE
M
AE
By:
/s/ M
AC
S
MITH FOR
D
AVID
B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and accepted.
C
RESCENT
B
ANK
AND
T
RUST
C
OMPANY
By:
/s/P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
3-10-03
Master Agreement MA02373.2
LE - 2
Amendment 28
MASTER AGREEMENT
Master Conversion for Crescent Bank and Trust Company
MA02373.2-05
Upon entering into this Master Conversion, Lender is obligated to sell to Fannie Mae, and Fannie Mae is
obligated to buy from Lender, Mortgages in the aggregate unpaid principal amount of the Mandatory Delivery
Amount stated below under any of the following programs: Fannie Mae’s MBS program, Negotiated Cash
Transactions or Standard Cash Transactions. Mortgages must be sold during the period commencing with the
Effective Date set forth below and ending with the Expiration Date set forth below (the “Conversion Period”)
and must meet all requirements set forth in the Master Agreement, as well as those set forth in the applicable
MBS Contracts (as described below). There must be a valid MBS Pricing Confirmation for each MBS Contract
below prior to Lender’s sale of any Mortgages under such MBS Contract.
Lender shall be deemed to have accepted the terms of this Master Conversion and all applicable MBS Pricing
Confirmations either (i) upon execution of the Master Agreement or Master Agreement amendment to which
this Master Conversion is attached, or (ii) if this Master Conversion is not attached to a Master Agreement
amendment, then upon delivery of any Mortgages under the MBS Contracts during the current Conversion
Period.
Master Agreement:
MA02373.2
Mandatory Delivery Amount:
$224,000,000.00, plus or minus 5%
Effective Date:
January 1, 2003
Expiration Date:
June 30, 2003
MBS Contracts:
A06302, A06304, A06305, A06808, A06809,
A06810m
A06811 and A06743
Master Agreement MA02373.2
MA - 4
Amendment 28
VAR 1
Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements described
as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s
assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with, Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1. Fannie
Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages
may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of
Master Agreement MA02373.2
VAR 1 - 1
Amendment 28
Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s
underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of
warranty by Lender, as provided in the Selling Guide.
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract
A06302, A06743, and A06724
(fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific information
with respect to the corresponding Mortgages being delivered will be completed and added to this
Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 28
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage –
value not to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets,
but does not want to deal will all regular documentation
requirements, and for borrowers who are changing jobs,
between jobs, relocating, retiring, or have recently
become self-employed. All borrowers must meet credit
score requirements. No loans to builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report
required for all loan types. Plus, a review appraisal if
the transaction is a refinance and the LTV is greater
than 75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit
score of 700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65%
with a credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit
score of 700; 70% with a credit score of 680.
2-unit: COR to 65% with a credit score of 700; 60%
with a credit score of 680.
• 2nd Homes
1-unit only; PMM & R/T Refi to 80% with a credit
score of 720; 75% with a credit score of 700; 70% with
a credit score of 680; COR to 70% with a credit score of
700; 65% with a credit score of 680.
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Master Agreement MA02373.2
VAR 1 - 3
Amendment 28
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Trade Lines
Three (3) rated trades
Credit History
24 Months
Credit Explanations
Not stated
Mortgage/Revolving/
No Foreclosures.
Installment
No Bankruptcies.
No 30-day lates on any mortgages in the past 24
months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Liquid assets (checking, savings, CD’s, money
market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Non-depository assets (stocks, bonds, retirement
funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report.
Rental history verification not required.
Salaried/Wage Earner Employment Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/Balance Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony, child
support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and overtime and
bonus income
No verification. Stated income only.
Commission income and independent contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 28
March 2003 30-Year FRM Deal with and without SMC
Bulk Mortgage Delivery Addendum
Maximum Volume: $8,762,120.00
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 28
March 2003 30-Year FRM Deal with and without SMC
Schedule A
Portfolio Summary
30-year Fixed-Rate
Count
:
52
Volume
:
$
8,762,120.00
WAC
:
6.3
WA OLTV
:
73.1
WA CLTV
:
73.1
WA MTMLTV
:
73.1
WA State RTerm
:
360
WA Calc RTerm
:
0
WA Seas
:
1
Pct Full/Alt Doc—:
:
0.00%
Pct Low/No Doc
:
100.00%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 28
March 2003 30-Year FRM Deal with and without SMC
Schedule B
Lender Loan Numbers
SMC:
1001145091
1001223872
1001225182
1001234796
1001222247
1001221256
1001245529
1001148731
1001177573
1001168697
Non-SMC:
1001163458
1001152014
1001149010
1001173176
1001178282
1001109659
1001009669
1001222221
1001227691
1001227659
1001228749
1001228459
1001241148
1001188216
1001187069
1001208485
1001204617
1001200110
1001205333
1001233913
1001210788
1001231768
1001241981
1001238805
1001142163
1001150018
Master Agreement MA02373.2
VAR 1 - 7
Amendment 28
1001178787
1001170487
1001252541
1001249836
1001223187
1001235819
1001164175
1001153681
1001205192
1001209491
1001216470
1001214939
1001214905
1001178589
1001180577
1001186277
Master Agreement MA02373.2
VAR 1 - 8
Amendment 28
Contract No. A06302.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$188,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
0
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Crescent Credit Plus Fixed-Rate Mortgage Product.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06302.2
FRM - 1
Amendment 28
Contract No. A06302.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Guaranty Fee:
41.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
Pool Purchase Contract No. A06302.2
FRM - 2
Amendment 28
Contract No. A06743.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions for
Delivery during First Delivery Term:
$38,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the
current Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling
Guide, Guide to Underwriting with Desktop
Underwriter and applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06743.2
FRM - 1
Amendment 28
Contract No. A06743.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Guaranty Fee:
35.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
Pool Purchase Contract No. A06743.2
FRM - 2
Amendment 28
[LETTERHEAD OF FANNIEMAE]
March 11, 2003
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285
115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 29
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Master Agreement – Replace pages MA – 3 and MA – 4 (dated 12/5/2002) with pages MA – 3
and MA – 4 (dated 3/11/2003).
•
Modified Variance – Replace pages VAR 1 – 1 through 8 (dated 2/19/2003) with pages VAR 1 – 1
through 7 (dated 3/11/2003) under the Variance Tab.
•
Modified Pool Purchase Contracts –
1.
Replace Pool Purchase Contract No. A06724, pages FRM – 1 (dated 2/19/2003) and FRM – 2
(dated 2/11/2003) with pages FRM – 1 through 2 (dated 3/11/2003) under the Fixed-Rate Tab.
2.
Replace Pool Purchase Contract No. A06901, pages FRM – 1 through 2 (dated 1/7/2003) with
pages FRM – 1 through 2 (dated 3/11/2003) under the Fixed-Rate Tab.
Master Agreement MA02373.2
LE - 1
Amendment 29
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate
original of this Letter Agreement to
Diane Stokes
at Fannie Mae within ten business days of the date this Letter
Agreement is executed by Fannie Mae.
If Fannie Mae does not receive an executed duplicate original of this Letter Agreement from the Lender within
ten business days, Fannie Mae may, at its option, declare this Letter Agreement null and void.
Sincerely,
F
ANNIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and accepted.
C
RESCENT
B
ANK
AND
T
RUST
C
OMPANY
By:
/s/ P
ARTHIV
J. D
AVE
Name:
PARTHIV J. DAVE
Title:
V.P.
Date:
3-17-03
Master Agreement MA02373.2
LE - 2
Amendment 29
EXHIBIT 1
TO MASTER AGREEMENT MA02373.2
Lender Name
Crescent Bank and Trust Company
Lender Number
23227-000-4
Delivery Term:
Second
Effective Date of Delivery Term:
August 1, 2001
Expiration Date of Delivery Term:
June 30, 2003
Estimated Dollar Volume for Delivery Term:
$440,000,000.00 (eligible for delivery only upon
incremental conversions to Mandatory Delivery
Amounts under one or more Master Conversions)
Master Agreement MA02373.2
MA - 3
Amendment 29
MASTER AGREEMENT
Master Conversion for Crescent Bank and Trust Company
MA02373.2-02
Upon entering into this Master Conversion, Lender is obligated to sell to Fannie Mae, and Fannie Mae is
obligated to buy from Lender, Mortgages in the aggregate unpaid principal amount of the Mandatory Delivery
Amount stated below under any of the following programs: Fannie Mae’s MBS program, Negotiated Cash
Transactions or Standard Cash Transactions. Mortgages must be sold during the period commencing with the
Effective Date set forth below and ending with the Expiration Date set forth below (the “Conversion Period”)
and must meet all requirements set forth in the Master Agreement, as well as those set forth in the applicable
MBS Contracts (as described below). There must be a valid MBS Pricing Confirmation for each MBS Contract
below prior to Lender’s sale of any Mortgages under such MBS Contract.
Lender shall be deemed to have accepted the terms of this Master Conversion and all applicable MBS Pricing
Confirmations either (i) upon execution of the Master Agreement or Master Agreement amendment to which
this Master Conversion is attached, or (ii) if this Master Conversion is not attached to a Master Agreement
amendment, then upon delivery of any Mortgages under the MBS Contracts during the current Conversion
Period.
Master Agreement:
MA02373.2
Mandatory Delivery Amount:
$230,000,000.00, plus or minus 5%
Effective Date
January 1, 2003
Expiration Date:
June 30, 2003
MBS Contracts:
A06302, A06303, A06304, A06305, A06724, A06743,
A06808, A06809, A06810, A06811, A06901, AW6306
Master Agreement MA02373.2
MA - 4
Amendment 29
VAR 1
Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements described
as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/ Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/ Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1. Fannie
Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages
may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
Master Agreement MA02373.2
VAR 1 - 1
Amendment 29
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of Lender by offering to buy or accepting delivery of any
Mortgages. A breach of any of Fannie Mae’s underwriting criteria or any modification thereof, as
described herein, shall be deemed to be a breach of warranty by Lender, as provided in the Selling Guide.
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract
A06302, A06743, and A06724
(fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific information
with respect to the corresponding Mortgages being delivered will be completed and added to this Variance,
and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 29
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple, 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage –
value not to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets,
but does not want to deal will all regular documentation
requirements, and for borrowers who are changing jobs,
between jobs, relocating, retiring, or have recently
become self-employed. All borrowers must meet credit
score requirements. No loans to builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report
required for all loan types. Plus, a review appraisal if
the transaction is a refinance and the LTV is greater
than 75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit
score of 700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65%
with a credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit
score of 700; 70% with a credit score of 680.
2-unit: COR to 65% with a credit score of 700; 60%
with a credit score of 680.
• 2nd Homes
1-unit only; PMM & R/T Refi to 80% with a credit
score of 720; 75% with a credit score of 700; 70% with
a credit score of 680; COR to 70% with a credit score of
700; 65% with a credit score of 680.
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Trade Lines
Three (3) rated trades
Credit History
24 Months
Credit Explanations
Not stated
Master Agreement MA02373.2
VAR 1 - 3
Amendment 29
Mortgage/Revolving/ Installment
No Foreclosures.
No Bankruptcies.
No 30-day dates on any mortgages in the past 24
months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Liquid assets (checking, savings, CD’s, money
market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Non-depository assets (stocks, bonds, retirement
funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the
downpayment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report.
Rental history verification not required.
Salaried/Wage Earner Employment Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/Balance Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony, child
support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and overtime and
bonus income
No verification. Stated income only.
Commission income and independent contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 29
March 2003 30-Year FRM Deal with and without SMC
Bulk Mortgage Delivery Addendum
Maximum Volume: $5,608,100.00
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 29
March 2003 15-Year FRM Deal with and without SMC
Schedule A
Portfolio Summary
15-year Fixed-Rate
Count
:
35
Volume
:
$
5,608,100.00
WAC
:
5.6
WA OLTV
:
62.9
WA CLTV
:
62.9
WA MTMLTV
:
62.9
WA State RTerm
:
180
WA Calc RTerm
:
0
WA Seas
:
1
Pct Full/Alt Doc
:
0.00
%
Pct Low/No Doc
:
100.00
%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 29
March 2003 15-Year FRM Deal with and without SMC
Schedule B
Lender Loan Numbers
Non-SMC
1001094463
1001182326
1001113917
1000916195
1001226685
1001198918
1001188042
1001215613
1001223864
1001208394
1001251519
1001230513
1001240462
1001230463
1001252509
1001246097
1001151750
1001149416
1001168838
1001117116
1001213253
1001216132
1001224169
1001228079
1001228038
1001223492
1001184587
1001201407
1001202421
1001198173
1001203502
SMC:
1001246055
1001187689
1001124484
1001187440
Master Agreement MA02373.2
VAR 1 - 7
Amendment 29
Contract No. A06724.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
10, 15 year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$33,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
361 - 3rd Autom U-Writng SYS, 442 - Flow Alt-A
Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow
Alt-A NINA, and Per Selling Guide, Guide to
Underwriting with Desktop Underwriter and applicable
attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Pool Purchase Contract No. A06724.2
FRM - 1
Amendment 29
Contract No. A06724.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10, 15 year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Guaranty Fee:
27.50 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06724.2
FRM - 2
Amendment 29
Contract No. A06901.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
10, 15 year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$5,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
361 - 3rd Autom U-Writng SYS, 442 - Flow Alt-A
Stated Income, 443 - Flow Alt-A No Ratio, 444 - Flow
Alt-A NINA, and Per Selling Guide, Guide to
Underwriting with Desktop Underwriter and applicable
attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Mortgages delivered under this contract are eligible for Radian Secondary Market Coverage.
Pool Purchase Contract No. A06901.2
FRM - 1
Amendment 29
Contract No. A06901.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10, 15 year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools
formed under this Contract:
N/ A *
Guaranty Fee:
24.50 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty
Fee and Buyup/Buydown Information in the
Preamble section.)
*
If no Earliest and Latest Issue Dates are specified in this MBS Pricing Confirmation, the above Guaranty Fee
only applies to the Conversion Period according to the current Master Conversion. The Guaranty Fee is subject
to change either after the Latest Issue Date, if one is specified above, or on the expiration of the current
Conversion Period, to an amount agreed upon by Fannie Mae and Lender. If no Latest Issue Date is specified in
this MBS Pricing Confirmation, then (a) if there is a change to the Guaranty Fee applicable to the next
Conversion Period, a revised MBS Pricing Confirmation for this Contract will be sent to Lender; or (b) if there
is no change to the Guaranty Fee, this MBS Pricing Confirmation will remain in effect until the expiration of the
next Conversion Period, when the Guaranty Fee will again be subject to change upon agreement of the parties.
Pool Purchase Contract No. A06901.2
FRM - 2
Amendment 29
[LETTERHEAD OF FANNIEMAE]
March 19, 2003
Mr. Michael P. Leddy
Executive Vice President (Crescent Mortgage)
Crescent Bank and Trust Company
South Terraces, Suite 285 115 Perimeter Center Place
Atlanta, GA 30346
Subject
Master Agreement No:
MA02373.2
Master Agreement Amendment No.:
Amendment 30
Lender No.:
23227-000-4
Dear Mr. Leddy:
By execution of this Letter Agreement, Fannie Mae (“Fannie Mae”) and
Crescent Bank and Trust Company
(the “Lender”) agree to amend the above-referenced Master Agreement and Contract (if applicable). The
amended terms and conditions are set forth in the amended pages to the Master Agreement and (if applicable)
the Contract attached to this Letter Agreement. The attachments should be inserted into the Lender’s Master
Agreement binder as described below. Capitalized terms used but not defined in this Letter Agreement shall
have the meanings set forth in the Master Agreement.
For your convenience, we have summarized the amended terms and conditions below. However, the summary
set forth below is for reference purposes only. The Lender and Fannie Mae shall rely solely on the attached
amended pages for a complete description of the amended terms and conditions.
The amended terms and conditions:
•
Modified Master Agreement, Exhibit 1 and Master Conversion – Replace pages MA – 3 and MA – 4
(dated 3/11/2003) with pages MA – 3 and MA – 4 (dated 3/19/2003).
•
Modified Variance – Replace pages VAR 1 – 1 through VAR 1 – 7 (dated 3/11/2003) with pages VAR 1 –
1 through VAR 1 – 8 (dated 3/19/2003) behind the
Variances
tab.
•
Modified Pool Purchase Contracts –
(a)
A06302 – Replace pages FRM – 1 and FRM – 2 (dated 3/7/2003) with pages FRM – 1 and FRM – 2
(dated 3/19/2003) behind the
Fixed-Rate
tab.
(b)
A06724 – Replace pages FRM – 1 and FRM – 2 (dated 2/19/2003 and 2/11/2003, respectively) with
pages FRM – 1 and FRM – 2 (dated 3/19/2003) behind the
Fixed-Rate
tab.
(c)
A06743 – Replace pages FRM – 1 and FRM – 2 (dated 3/7/2003) with pages FRM – 1 and FRM – 2
(dated 3/19/2003) behind the
Fixed-Rate
tab.
Master Agreement MA02373.2
LE - 1
Amendment 30
By execution of this Letter Agreement, Fannie Mae and the Lender agree to and accept the amended terms and
conditions as set forth in the attachments to this Letter Agreement. The effective date of the amendments is the
date of execution of this Letter Agreement by the Lender. The Lender shall return a duly-executed duplicate
original of this Letter Agreement to
Diane Stokes
at Fannie Mae within ten business days of the date this Letter
Agreement is executed by Fannie Mae. If Fannie Mae does not receive an executed duplicate original of this
Letter Agreement from the Lender within ten business days, Fannie Mae may, at its option, declare this Letter
Agreement null and void.
Sincerely,
F
ANINIE
M
AE
By:
/s/ D
AVID
A. B
OWLES
David A. Bowles
Customer Account Manager
Agreed, acknowledged and accepted.
C
RESCENT
B
ANK AND
T
RUST
C
OMPANY
By:
/s/ M
ICHAEL
P. L
EDDY
Name:
Michael P. Leddy
Title:
EVP
Date:
3-21-03
Master Agreement MA02373.2
LE - 2
Amendment 30
EXHlBIT 1
TO MASTER AGREEMENT MA02373.2
Lender Name
Crescent Bank and Trust Company
Lender Number
23227-000-4
Delivery Term:
Second
Effective Date of Delivery Term:
August 1, 2001
Expiration Date of Delivery Term:
June 30, 2003
Estimated Dollar Volume for Delivery Term:
$447,000,000.00
(eligible for delivery only upon incremental conversions
to Mandatory Delivery Amounts under one or more
Master Conversions)
Master Agreement MA02373.2
MA - 3
Amendment 30
MASTER AGREEMENT
Master Conversion for Crescent Bank and Trust Company
MA02373.2-05
Upon entering into this Master Conversion, Lender is obligated to sell to Fannie Mae, and Fannie Mae is
obligated to buy from Lender, Mortgages in the aggregate unpaid principal amount of the Mandatory Delivery
Amount stated below under any of the following programs: Fannie Mae’s MBS program, Negotiated Cash
Transactions or Standard Cash Transactions. Mortgages must be sold during the period commencing with the
Effective Date set forth below and ending with the Expiration Date set forth below (the “Conversion Period”)
and must meet all requirements set forth in the Master Agreement, as well as those set forth in the applicable
MBS Contracts (as described below). There must be a valid MBS Pricing Confirmation for each MBS Contract
below prior to Lender’s sale of any Mortgages under such MBS Contract.
Lender shall be deemed to have accepted the terms of this Master Conversion and all applicable MBS Pricing
Confirmations either (i) upon execution of the Master Agreement or Master Agreement amendment to which
this Master Conversion is attached, or (ii) if this Master Conversion is not attached to a Master Agreement
amendment, then upon delivery of any Mortgages under the MBS Contracts during the current Conversion
Period.
Master Agreement:
MA02373.2
Mandatory Delivery Amount:
$237,000,000.00, plus or minus 5%
Effective Date:
January 1, 2003
Expiration Date:
June 30, 2003
MBS Contracts:
A06302, A06304, A06305, A06808, A06809, A06810,
A06811, A06724 and A06743
Master Agreement MA02373.2
MA - 4
Amendment 30
VAR 1
Bulk ALT A Product
1.
Lender may sell to Fannie Mae a loan package containing mortgages (“Mortgages”) that may have been
originated with certain variances to Fannie Mae’s underwriting and documentation requirements described
as one of the following Alt A products:
(a)
“Stated Income,” (SFC “442”) which is defined as: the borrower reports income on the Uniform
Residential Loan Application (Form 1003) and a verbal Verification of Employment may be
obtained. Lender is not required to verify the reported income, but must verify the borrower’s
assets.
(b)
“No Ratio,” (SFC “443”) which is defined as: the borrower does not report income on the Uniform
Residential Loan Application (Form 1003), so therefore no debt-to-income ratios are calculated.
Lender is not required to verify the borrower’s income, but must verify the borrower’s assets.
(c)
“No Income/No Asset” (‘NINA’) (SFC “444”) which is defined as: the borrower does not report
either income or assets on the Uniform Residential Loan Application (Form 1003). Lender is not
required to verify the borrower’s income or assets.
(d)
“Full/Alternative Documentation (SFC “512”) which is defined as: the borrower reports income and
assets on the Uniform Residential Loan Application (Form 1003) and Lender must verify reported
income and assets.
Lender must document the Mortgage file with a statement describing the Mortgage either as a Stated
Income, a No Ratio, a NINA, or a Full/Alternative Documentation Alt A product.
2.
Lender must provide the borrower’s FICO credit score at delivery of each Mortgage under this Variance.
3.
Eligible products include fixed-rate, first-lien, fully amortizing mortgages.
4.
Lender’s underwriting guidelines for origination of Stated Income, No Ratio, or NINA Alt A products are
described in Attachment 1 (“Lender’s Underwriting Guidelines”). Notwithstanding any contrary
provisions contained in Lender’s Underwriting Guidelines, the only Mortgages eligible for delivery to
Fannie Mae are those Mortgages that are originated in accordance with Lender’s guidelines for Stated
Income, No Ratio, or NINA Alt A products described in Lender’s Underwriting Guidelines and meet
Fannie Mae’s general eligibility criteria, as modified by the applicable provisions of Attachment 1. Fannie
Mae reserves the right to review all mortgages offered for sale by Lender, and although certain mortgages
may meet Underwriting Guidelines, Fannie Mae is not obligated to buy all of such mortgages.
5.
Lender represents and warrants that all information concerning the Mortgages submitted by Lender to
Fannie Mae in electronic format or otherwise is true, accurate, and complete. Notwithstanding the
accuracy of the information submitted by Lender, Lender represents and warrants that all Mortgages
comply with Lender’s Underwriting Guidelines. Lender acknowledges that that Fannie Mae does not
waive any of such representations and warranties of
Master Agreement MA02373.2
VAR 1 - 1
Amendment 30
Lender by offering to buy or accepting delivery of any Mortgages. A breach of any of Fannie Mae’s
underwriting criteria or any modification thereof, as described herein, shall be deemed to be a breach of
warranty by Lender, as provided in the Selling Guide.
6.
All Stated Income, No Ratio, or NINA Mortgages must be delivered to Fannie Mae under Pool Purchase
Contract
A06302, A06743,
and
A06724
(fixed-rate Mortgages). FOR CASH: under Fannie Mae’s
Negotiated Transactions for cash purchase.
7.
With respect to all Mortgages sold and delivered to Fannie Mae pursuant to this Variance:
(a)
Lender represents and warrants that the Mortgages comply with all applicable representations and
warranties as set forth in the Selling Guide, and Lender makes all selling warranties with respect to
the Mortgages, except as otherwise expressly provided in this Variance.
(b)
Lender acknowledges that the terms and conditions on which Fannie Mae has agreed to acquire the
Mortgages assume that pool or primary mortgage insurance is obtainable for the Mortgages after
delivery of the Mortgages to Fannie Mae. Lender represents and warrants that none of the Mortgages
has been originated or serviced with fraud, misrepresentation, or negligence, or with any act that is
dishonest, criminal, or knowingly wrongful, that would (1) cause a mortgage insurer to decline to
insure a Mortgage, or (2) entitle a mortgage insurer to deny a claim pursuant to a mortgage insurance
policy exclusion to coverage encompassing fraud, misrepresentation, negligence, or dishonest,
criminal, or knowingly wrongful acts in origination or servicing.
(c)
These representations and warranties survive purchase of and payment for the Mortgage, apply to
each Mortgage, and inure to the benefit of Fannie Mae, its successors and assigns.
8.
Fannie Mae and Lender agree that multiple bulk mortgage deliveries may be made under this Variance.
With respect to each such delivery, a Bulk Mortgage Delivery Addendum containing specific information
with respect to the corresponding Mortgages being delivered will be completed and added to this
Variance, and shall become a part of this Variance and this Master Agreement for all purposes.
Master Agreement MA02373.2
VAR 1 - 2
Amendment 30
Attachment 1
Lender’s Underwriting Guidelines Approved by Fannie Mae
Mortgages may contain only the following variances to Fannie Mae’s underwriting and documentation
guidelines:
Crescent Mortgage’s Credit Plus Program
No Income – No Ratios/No Asset Verifications
No Income
No Ratios / No Asset Verification
Program Type
PMM, R/T Refi, COR
Product Type
FRM only
Amortization Terms
15- and 30- year
Eligible Units
1-2 unit properties
Eligible Properties
Fee Simple; 1-2 unit attached and detached properties.
Condominiums are also eligible. NO mobile homes or
manufactured housing units. Also, no excess acreage –
value not to exceed 33% of total.
Geographic Limitations
None
Occupancy Status
Owner Occupied and 2nd Homes
Borrower Eligibility
Designed for the borrower who has income and assets,
but does not want to deal will all regular documentation
requirements, and for borrowers who are changing jobs,
between jobs, relocating, retiring, or have recently
become self-employed. All borrowers must meet credit
score requirements. No loans to builders or developers.
Appraisal
New full Uniformed Residential Appraisal Report
required for all loan types. Plus, a review appraisal if
the transaction is a refinance and the LTV is greater
than 75%.
Mortgage Insurance
Standard mortgage insurance required.
Maximum LTVs and Credit Scores:
• Owner Occupied:
1-unit: PMM & R/T Refi to 90% LTV with a credit
score of 700; 75% with a credit score of 680.
1-unit: COR to 70% with a credit score of 700; 65%
with a credit score of 680.
2-unit: PMM & R/T Refi to 85% LTV with a credit
score of 700; 70% with a credit score of 680.
2-unit: COR to 65% with a credit score of 700; 60%
with a credit score of 680.
• 2nd Homes
1-unit only; PMM & R/T Refi to 80% with a credit
score of 720; 75% with a credit score of 700; 70% with
a credit score of 680; COR to 70% with a credit score of
700; 65% with a credit score of 680.
Secondary Financing
No Subordinate financing allowed on new loan.
Credit Report
Three In-file merged credit report.
Qualifying Debt Ratios:
Ratios are not considered.
Master Agreement MA02373.2
VAR 1 - 3
Amendment 30
Reserves:
No assets are verified; reserves are not required.
Credit Criteria:
Three (3) rated trades
Trade Lines
24 Months
Credit History
Not stated
Credit Explanations
No Foreclosures.
Mortgage/Revolving/
No Bankruptcies.
Installment
No 30-day dates on any mortgages in the past 24
months.
Credit Report Letter of Explanation
Not required as this product is credit score driven.
Sale Proceeds
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Down Payment:
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Liquid assets (checking, savings, CD’s, money
market funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Non-depository assets (stocks, bonds, retirement
funds, trust funds, etc.)
Assets are not verified; however, assets stated on the
Application must be sufficient to make the down
payment.
Seller contributions
Per Fannie Guides.
Gift Funds
No gifts allowed.
Verification of mortgage or rental history
Required if mortgage history not on credit report.
Rental history verification not required.
Salaried/Wage Earner Employment Verification
No verification. Stated income/employment only.
Self-Employed Income/Employment Verification
No verification. Stated income only. No 4506 required.
Self-employed Profit & Loss/ Balance Sheet
Income verification is not required. No 4506 required.
Other Income: Retirement, SS, alimony, child
support, etc.
No verification. Stated income only.
No Income
No Ratios / No Asset Verification
Salary or hourly wage earnings and overtime and
bonus income
No verification. Stated income only.
Commission income and independent contractor
No verification. Stated income only.
Master Agreement MA02373.2
VAR 1 - 4
Amendment 30
March 2003 PART 2 15 and 30-Year FRM Deal with and without SMC
Bulk Mortgage Delivery Addendum
Maximum Volume: $6,879,740
Lender shall deliver the Mortgages described in the Profile Summary Schedule “A” unless the Mortgage doesn’t
meet Lender’s Underwriting Guidelines or it pays off, becomes delinquent, falls out for similar acceptable
reasons prior to the delivery date. Lender represents and warrants that the Mortgages are as described in Profile
Summary set forth in Schedule “A” and as identified on Schedule “B”. The term “CLTV” used in Schedule “A”
and this Contract is the “Current Loan-to-Value Ratio”. “Current Loan-to-Value Ratio” is the loan-to-value ratio
based upon the issue date principal balance of each Mortgage and the original appraised value of the property
securing each such Mortgage.
Master Agreement MA02373.2
VAR 1 - 5
Amendment 30
March 2003 PART 2 15- and 30-Year FRM Deal with and without SMC
Schedule A
Portfolio Summary
Count
:
47
Volume
:
$6,879,740.00
WAC
:
6.2
WA OLTV
:
71.0
WA CLTV
:
71.0
WA MTMLTV
:
71.0
WA State RTerm
:
337
WA Calc RTerm
:
0
WA Seas
:
1
Pct Full/Alt Doc
:
0.00%
Pct Low/No Doc
:
100.00%
Master Agreement MA02373.2
VAR 1 - 6
Amendment 30
March 2003 PART 2 15- and 30-Year FRM Deal with and without SMC
Schedule B
Lender Loan Numbers
30 Year Non-SMC
1001170818
1001245636
1001234754
1001240322
1001247087
1001253945
1001215282
1001231420
1001221090
1001223211
1001270279
1001255650
1001246170
1001234150
1001217593
1001230695
1001157740
1001139946
1001058849
1001048394
1001270048
1001211513
1001213329
1001214921
1001255841
1001256542
1001242559
30 Year SMC
1001243136
1001237914
1001260957
1001210135
1001226594
1001298668
1001246451
1001229770
1001173325
1001196656
1001246006
Master Agreement MA02373.2
VAR 1 - 7
Amendment 30
15 Year Non-SMC
1001243813
1001208881
1001275633
1001203643
1001237716
1001115516
1001269859
1001259744
1001223799
Master Agreement MA02373.2
VAR 1 - 8
Amendment 30
Contract No. A06302.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$192,400,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide,
Guide to Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Crescent Credit Plus Fixed-Rate Mortgage Product.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06302.2
FRM - 1
Amendment 30
Contract No. A06302.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Guaranty Fee:
41.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06302.2
FRM - 2
Amendment 30
Contract No. A06724.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$34,000,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide,
Guide to Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Pool Purchase Contract No. A06724.2
FRM - 1
Amendment 30
Contract No. A06724.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
10- and 15-year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Guaranty Fee:
26.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06724.2
FRM - 2
Amendment 30
Contract No. A06743.2
FIXED-RATE MORTGAGE POOL PURCHASE CONTRACT
WITH PRICING CONFIRMATION
MASTER AGREEMENT MA02373.2
Lender:
Crescent Bank and Trust Company
Lender Number: 23227-000-4
Crescent Mortgage Services
23227-000-4
Crescent Mortgage Services
23227-003-9
24837-000-9
24837-002-5
Eligible Products:
30-year fixed-rate level-payment mortgages
Maximum Amount of Pool Purchase Transactions
for Delivery during First Delivery Term:
$39,600,000.00 (See current Master Conversion for
actual volume eligible for delivery during the current
Conversion Period.)
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Servicing Option:
Special
Mortgage Type:
Conventional
Remittance Cycle:
Standard
Seasoning Requirements:
Current
Special Feature Codes:
442 - Flow Alt-A Stated Income, 443 - Flow Alt-A No
Ratio, 444 - Flow Alt-A NINA, and Per Selling Guide,
Guide to Underwriting with Desktop Underwriter and
applicable attachments.
Additional Terms:
See MBS Pricing Confirmation(s) attached hereto and incorporated herein.
Pool contract price adjustment is waived.
Lender is allowed a maximum buyup to 22.50 basis points with the expectation that Lender will manage
deliveries to a weighted average buyup of 16.00 basis points.
Radian Secondary Market Coverage required. Crescent Credit Plus Fixed-Rate Mortgage Product > 80% LTV.
See Schedule “A” August 2002 for eligible loans, which is attached to the Bulk Alt A Product - FRM Variance.
Lender represents and warrants that all such Mortgages meet standard Fannie Mae guidelines or the Alt-A
guidelines incorporated in this Master Agreement.
Pool Purchase Contract No. A06743.2
FRM - 1
Amendment 30
Contract No. A06743.2
MBS Pricing Confirmation for Crescent Bank and Trust Company
MA02373.2
As a condition to Lender’s sale of Mortgages under this MBS Contract at the pricing specified below, there must
be a current Master Conversion. The current Master Conversion governs Lender’s ability to sell Mortgages
under the Master Agreement, notwithstanding any date specified as the “Latest Issue Date” on Page 1 of this
MBS Contract or below.
Eligible Products:
30 year fixed-rate level-payment mortgages
Earliest and Latest Issue Dates for Pools formed
under this Contract:
March 1, 2003 - March 1, 2003
Guaranty Fee:
35.00 Basis Points
Buyup/Buydown Grid:
Early (See additional terms in the MBS Guaranty Fee
and Buyup/Buydown Information in the Preamble
section.)
Pool Purchase Contract No. A06743.2
FRM - 2
Amendment 30