Common use of Product Support Services Clause in Contracts

Product Support Services. Services: Product Support consists of the following services provided by PMC to the Company (whether or not the Company incurs these costs or similar costs directly): • Loan control and completion (LCC) – post-closing functions here include reconciling the HUD1 received from closing agents to the cash dispersed on the loan reconciling the tax and insurance escrows if appropriate, the submissions for insurance with HUD for GNMA insured loans and loan pools, certain compliance monitoring activities, verification of recorded deeds and title insurance policies etc. • Pricing – functions here include establishing the rate and fees for the borrowers established at the time of the rate lock commitment based on then current market conditions and profit expectations, performance of competitive surveys and market data gathering efforts to verify the competitiveness of pricing, determination of price concessions and implementation of concession policies etc. • Loan sales – functions here include the aggregation of loans into pools based on appropriate characteristics, determination of best execution decisions, gathering loans files, performance of due diligences, and shipping of files, management of GSE agency and mortgage loan investor relationships etc. • Product development – functions include development of loan program parameters, program design to comply with investor requirements, design integration of new programs to company processes, communication of new programs and related requirements etc. • Credit risk management – includes providing access to PMC’s automated underwriting systems, monitoring of loan quality, monitoring of compliance with documentation standards, monitoring performance of loans to assess underwriting and pricing effectiveness etc. • Mail print center – includes collection and copying of documents in connection with processing of the Company’s loan applications and loan closing packages. • Operational strategy department – includes development, processing and reporting on client survey results, office of the president for customer satisfaction and recovery, etc. • Mail away program – includes the cost of program to allow borrowers to sign loan documents in the presence of a notary rather than a closing agent etc.

Product Support Services. Services: Product Support consists of the following services provided by PMC to the Company (not including the Small Corps and whether or not the Company incurs these costs or similar costs directly): • · Loan control and completion (LCC) – - post-closing functions here include reconciling the HUD1 received from closing agents to the cash dispersed on the loan reconciling the tax and insurance escrows if appropriate, the submissions for insurance with HUD for GNMA insured loans and loan pools, certain compliance monitoring activities, verification of recorded deeds and title insurance policies etc. • · Pricing – - functions here include establishing the rate and fees for the borrowers established at the time of the rate lock commitment based on then current market conditions and profit expectations, performance of competitive surveys and market data gathering efforts to verify the competitiveness of pricing, determination of price concessions and implementation of concession policies etc. • · Loan sales – - functions here include the aggregation of loans into pools based on appropriate characteristics, determination of best execution decisions, gathering loans files, performance of due diligences, and shipping of files, management of GSE agency and mortgage loan investor relationships etc. • · Product development – - functions include development of loan program parameters, program design to comply with investor requirements, design integration of new programs to company processes, communication of new programs and related requirements etc. • · Credit risk management – - includes providing access to PMC’s 's automated underwriting systems, monitoring of loan quality, monitoring of compliance with documentation standards, monitoring performance of loans to assess underwriting and pricing effectiveness etc. • · Mail print center – - includes collection and copying of documents in connection with processing of the Company’s 's loan applications and loan closing packages. • · Operational strategy department – - includes development, processing and reporting on client survey results, office of the president for customer satisfaction and recovery, etc. • Mail away program – · Document Review Center - includes the cost of program finalizing loan processing and preparation of closing documents. Fees: Fees will be based on the fair value of services provided, based on actual costs incurred by PMC plus a profit margin of [***]. On or before January 1 of each year, PMC will provide the Company with a forecast of estimated per loan costs, inclusive of profit margin, for Production Support Services (Forecast Fees) for the upcoming calendar year. Forecast Fees for the services will be billed on a monthly basis. During the last month of each calendar quarter, PMC will analyze Forecast Fees billed for the calendar year to allow borrowers date, inclusive of profit margin, compare those fees to sign the actual costs incurred by PMC for the calendar year to date plus remainder of year forecast (Current Forecast Costs), and reconcile the two. In the event the Forecast Fees billed are greater than the Current Forecast Costs, [***]. In the event Current Forecast Costs are greater than Forecast Fees billed, [***]. Appropriate adjustments will be made to the Forecast Fees on a going forward basis based on the results of this analysis. [***]. For every year after 2006, the annual per loan documents Production Support Services fees to be charged shall not exceed the 2006 levels adjusted upward by the greater of three percent (3%) annualized or the cumulative change in Consumer Price Index (CPI) from 2006 to the presence calendar year being evaluated without the written consent of a notary rather than a closing agent etc.the PHH Home Loans Board of Advisors. Forecast and Actual Fees for 20051 and Forecast Fees for 2006 for Production Support Services will be as follows: Production Support Fees Forecast Actual Forecast 2006 2005 Fees 2005 Fees Fees ($ per loan) ($ per loan) ($ per loan) Fees for Total loans [***] Fees for First Mortgage Loans [***] [***] Fees for Piggy-Back Second [***] [***] Mortgages 1 Effective as of Launch Date [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES ACT OF 1934, AS AMENDED. EXHIBIT 6.1