Common use of Predatory Lending Clause in Contracts

Predatory Lending. Without limiting the generality of any of the other representations and warranties set forth herein: (1) No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable. (2) There is no Mortgage Loan that was originated (or modified) on or after October 1, 2002 and before March 7, 2003 which is secured by property located in the State of Georgia. There is no Mortgage Loan that was originated on or after March 7, 2003 that is a "high cost home loan" as defined under the Georgia Fair Lending Act. (3) No Mortgage Loan that was originated on or after January 1, 2005 is a "High Cost Home Loan" as defined in the Indiana Home Loan Practices Act (Ind. Code. Ann. Section 24-9); (4) Each Mortgage Loan descri▇▇▇ as a "Points and Fees Eligible Loan" on the applicable Mortgage Loan Schedule is in compliance with the anti-predatory lending eligibility for purchase requirements of Fannie Mae's Selling Guide and is in compliance with the ▇▇▇▇-predatory lending eligibility for purchase requirements of the Fannie Mae Lender Letter, LL03-00: Eligibility of Mortgages to ▇▇▇tgagors with Blemished Credit Records (04/11/00) other than the requirements regarding Escrow Accounts. No Points and Fees Eligible Loan Mortgagor was charged "points and fees" (whether or not financed) in an amount greater than (i) $1,000, or (ii) 5% of the principal amount of such Mortgage Loan, whichever is greater. For purposes of this representation, such 5% limitation is calculated in accordance with Fannie Mae's anti-predatory lending requirements as set ▇▇▇▇▇ in the Fannie Mae Guides and "points and fees" (x) include orig▇▇▇▇▇▇n, ▇nderwriting, broker and finder fees and charges that the mortgagee imposed as a condition of making the Mortgage Loan, whether they are paid to the mortgagee or a third party; and (y) exclude bona fide discount points, fees paid for actual services rendered in connection with the origination of the Mortgage Loan (such as attorneys' fees, notaries fees and fees paid for property appraisals, credit reports, surveys, title examinations and extracts, flood and tax certifications, and home inspections), the cost of mortgage insurance or credit-risk price adjustments, the costs of title, hazard, and flood insurance policies, state and local transfer taxes or fees, escrow deposits for the future payment of taxes and insurance premiums, and other miscellaneous fees and charges which miscellaneous fee and charges, in total, do not exceed 0.25% of the principal amount of such Mortgage Loan. (5) The Mortgagor was not encouraged or required to select a Mortgage Loan product offered by the Company which is a higher cost product designed for less creditworthy borrowers, unless at the time of the Mortgage Loan's origination, such Mortgagor did not qualify taking into account such facts as, without limitation, the Mortgage Loan's requirements and the Mortgagor's credit history, income, assets and liabilities and debt-to-income ratios for a lower-cost credit product then offered by the Company or any affiliate of the Company. If, at the time of loan application, the Mortgagor may have qualified for a lower-cost credit product then offered by any mortgage lending affiliate of the Company, the Company referred the Mortgagor's application to such affiliate for underwriting consideration. For a Mortgagor who seeks financing through the Company's higher-priced subprime lending channel, the Mortgagor was directed towards or offered the Company's standard mortgage line if the Mortgagor was able to qualify for one of the standard products; (6) The methodology used in underwriting the extension of credit for each Mortgage Loan does not rely on the extent of the Mortgagor's equity in the collateral as the principal determining factor in approving such extension of credit. The methodology employed objective criteria that related such facts as, without limitation, the Mortgagor's credit history, income, assets or liabilities, to the proposed mortgage payment and, based on such methodology, the Company made a reasonable determination that at the time of origination the Mortgagor had the ability to make timely payments on the Mortgage Loan. Such underwriting methodology confirmed that at the time of origination (application/approval) the Mortgagor had a reasonable ability to make timely payments on the Mortgage Loan; (7) With respect to any Mortgage Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) the Mortgage Loan provides some benefit to the borrower (e.g., a rate or fee reduction) in exchange for accepting such prepayment premium; (ii) prior to the Mortgage Loan's origination, the Mortgagor was offered the option of obtaining a mortgage loan that did not require payment of such a premium, (iii) the prepayment premium was adequately disclosed to the Mortgagor pursuant to applicable state and federal law, and (iv) notwithstanding any state or federal law to the contrary, the Company shall not impose such prepayment premium in any instance where the Mortgage Loan is accelerated or paid off in connection with the workout of a delinquent mortgage or due to the Mortgagor's default, notwithstanding that the terms of the Mortgage Loan or state or federal law might permit the imposition of such prepayment premium; (8) All points and fees related to each Mortgage Loan were disclosed in writing to the Mortgagor in accordance with applicable state and federal law and regulation. No Mortgage Loan is a "high-cost" loan (or similar term, as used in the applicable statute or ordinance) within the meaning of the applicable anti-predatory lending laws (if any) of every jurisdiction (federal, state and local) in which the Mortgage Property is located. All points and fees related to each Mortgage Loan are accurately described on the Mortgage Loan Schedule. With respect to each Mortgage Loan identified as a "Points and Fees Eligible Loan" on the applicable Mortgage Loan Schedule, except in the case of a Mortgage Loan in an original principal amount of less than $60,000 which would have resulted in an unprofitable origination, no Mortgagor was charged "points and fees" (whether or not financed) in an amount greater than 5% of the principal amount of such Mortgage Loan, and such 5% limitation is calculated in accordance with Fannie Mae's anti-predatory lending requirement as set f▇▇▇▇ ▇n the Fannie Mae Selling Guide; (9) All fee▇ ▇▇▇ c▇▇▇ges (including finance charges) and whether or not financed, assessed, collected or to be collected in connection with the origination and servicing of each Mortgage Loan has been disclosed in writing to the Mortgagor in accordance with applicable state and federal law and regulation; and (10) The Company will transmit full-file credit reporting data for each Mortgage Loan pursuant to Fannie Mae Guide Announcement 95-19 and that for each Mo▇▇▇▇▇▇ Loan, the Company agrees it shall report one of the following statuses each month as follows: new origination, current, delinquent (30-, 60-, 90-days, etc.), foreclosed, or charged-off.

Predatory Lending. Without limiting the generality of any of the other representations and warranties set forth herein: (1) No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable. (2) There is no Mortgage Loan that was originated (or modified) on or after October 1, 2002 and before March 7, 2003 which is secured by property located in the State of Georgia. There is no Mortgage Loan that was originated on or after March 7, 2003 that is a "“high cost home loan" ” as defined under the Georgia Fair Lending Act. (3) No Mortgage Loan that was originated on or after January 1, 2005 is a "“High Cost Home Loan" ” as defined in the Indiana Home Loan Practices Act (Ind. Code. Ann▇▇▇. Section 24-9); (4) Each Mortgage Loan descri▇▇▇ described as a "“Points and Fees Eligible Loan" ” on the applicable Mortgage Loan Schedule is in compliance with the anti-predatory lending eligibility for purchase requirements of Fannie ▇▇▇▇▇▇ Mae's ’s Selling Guide and is in compliance with the ▇▇▇▇-predatory anti-predatory lending eligibility for purchase requirements of the Fannie ▇▇▇▇▇▇ Mae Lender Letter, LL03-00: Eligibility of Mortgages to ▇▇▇tgagors Mortgagors with Blemished Credit Records (04/11/00) other than the requirements regarding Escrow Accounts. No Points and Fees Eligible Loan Mortgagor was charged "“points and fees" ” (whether or not financed) in an amount greater than (i) $1,000, or (ii) 5% of the principal amount of such Mortgage Loan, whichever is greater. For purposes of this representation, such 5% limitation is calculated in accordance with Fannie ▇▇▇▇▇▇ Mae's ’s anti-predatory lending requirements as set forth in the ▇▇▇▇▇▇ in the Fannie Mae Guides and "“points and fees" ” (x) include orig▇▇▇▇▇▇norigination, ▇nderwritingunderwriting, broker and finder fees and charges that the mortgagee imposed as a condition of making the Mortgage Loan, whether they are paid to the mortgagee or a third party; and (y) exclude bona fide discount points, fees paid for actual services rendered in connection with the origination of the Mortgage Loan (such as attorneys' ’ fees, notaries fees and fees paid for property appraisals, credit reports, surveys, title examinations and extracts, flood and tax certifications, and home inspections), the cost of mortgage insurance or credit-risk price adjustments, the costs of title, hazard, and flood insurance policies, state and local transfer taxes or fees, escrow deposits for the future payment of taxes and insurance premiums, and other miscellaneous fees and charges which miscellaneous fee and charges, in total, do not exceed 0.25% of the principal amount of such Mortgage Loan. (5) The Mortgagor was not encouraged or required to select a Mortgage Loan product offered by the Company which is a higher cost product designed for less creditworthy borrowers, unless at the time of the Mortgage Loan's ’s origination, such Mortgagor did not qualify taking into account such facts as, without limitation, the Mortgage Loan's ’s requirements and the Mortgagor's ’s credit history, income, assets and liabilities and debt-to-income ratios for a lower-cost credit product then offered by the Company or any affiliate of the Company. If, at the time of loan application, the Mortgagor may have qualified for a lower-cost credit product then offered by any mortgage lending affiliate of the Company, the Company referred the Mortgagor's ’s application to such affiliate for underwriting consideration. For a Mortgagor who seeks financing through the Company's ’s higher-priced subprime lending channel, the Mortgagor was directed towards or offered the Company's ’s standard mortgage line if the Mortgagor was able to qualify for one of the standard products; (6) The methodology used in underwriting the extension of credit for each Mortgage Loan does not rely on the extent of the Mortgagor's ’s equity in the collateral as the principal determining factor in approving such extension of credit. The methodology employed objective criteria that related such facts as, without limitation, the Mortgagor's ’s credit history, income, assets or liabilities, to the proposed mortgage payment and, based on such methodology, the Company made a reasonable determination that at the time of origination the Mortgagor had the ability to make timely payments on the Mortgage Loan. Such underwriting methodology confirmed that at the time of origination (application/approval) the Mortgagor had a reasonable ability to make timely payments on the Mortgage Loan; (7) With respect to any Mortgage Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) the Mortgage Loan provides some benefit to the borrower (e.g., a rate or fee reduction) in exchange for accepting such prepayment premium; (ii) prior to the Mortgage Loan's ’s origination, the Mortgagor was offered the option of obtaining a mortgage loan that did not require payment of such a premium, (iii) the prepayment premium was adequately disclosed to the Mortgagor pursuant to applicable state and federal law, and (iv) notwithstanding any state or federal law to the contrary, the Company shall not impose such prepayment premium in any instance where the Mortgage Loan is accelerated or paid off in connection with the workout of a delinquent mortgage or due to the Mortgagor's ’s default, notwithstanding that the terms of the Mortgage Loan or state or federal law might permit the imposition of such prepayment premium; (8) All points and fees related to each Mortgage Loan were disclosed in writing to the Mortgagor in accordance with applicable state and federal law and regulation. No Mortgage Loan is a "“high-cost" ” loan (or similar term, as used in the applicable statute or ordinance) within the meaning of the applicable anti-predatory lending laws (if any) of every jurisdiction (federal, state and local) in which the Mortgage Property is located. All points and fees related to each Mortgage Loan are accurately described on the Mortgage Loan Schedule. With respect to each Mortgage Loan identified as a "“Points and Fees Eligible Loan" ” on the applicable Mortgage Loan Schedule, except in the case of a Mortgage Loan in an original principal amount of less than $60,000 which would have resulted in an unprofitable origination, no Mortgagor was charged "“points and fees" ” (whether or not financed) in an amount greater than 5% of the principal amount of such Mortgage Loan, and such 5% limitation is calculated in accordance with Fannie ▇▇▇▇▇▇ Mae's ’s anti-predatory lending requirement as set fforth in the ▇▇▇▇▇▇ ▇n the Fannie Mae Selling Guide; (9) All fee▇ ▇▇▇ c▇▇▇ges fees and charges (including finance charges) and whether or not financed, assessed, collected or to be collected in connection with the origination and servicing of each Mortgage Loan has been disclosed in writing to the Mortgagor in accordance with applicable state and federal law and regulation; and (10) The Company will transmit full-file credit reporting data for each Mortgage Loan pursuant to Fannie Mae ▇▇▇▇▇▇ ▇▇▇ Guide Announcement 95-19 and that for each Mo▇▇▇▇▇▇ Mortgage Loan, the Company agrees it shall report one of the following statuses each month as follows: new origination, current, delinquent (30-, 60-, 90-days, etc.), foreclosed, or charged-off.