Common use of Waivers, Modifications and Extensions; Subordination Clause in Contracts

Waivers, Modifications and Extensions; Subordination. In accordance with the servicing standard in SECTION 4.01(A), the Servicer shall collect all payments called for under the terms and provisions of the Home Loans. The Servicer in its discretion may waive or permit to be waived any penalty interest or any other fee or charge which the Servicer would be entitled to retain hereunder as servicing compensation and extend the Due Date on a Debt Instrument for a period (with respect to each payment as to which the Due Date is extended) not greater than 90 days after the initially scheduled Due Date for such payment. Notwithstanding anything in this Agreement to the contrary, the Servicer shall not permit any additional extension or modification with respect to any Home Loan other than that permitted by the immediately preceding sentence, unless the Home Loan is a Defaulted Home Loan. (See SECTION 4.10 hereof for a description of the recovery procedures for Defaulted Home Loans.) The Servicer may in its discretion enter in subordination agreements with respect to any Home Loan, PROVIDED that the Servicer determines, consistent with this Agreement and the Accepted Servicing Procedures, that the entering into of such subordination agreement is in the best interests of the Grantor Trust. The Servicer may grant a waiver or enter into a subordination agreement with respect to the refinancing of the indebtedness secured by a Superior Lien on the related Property, PROVIDED that the Obligor is in a better financial or cash flow position as a result of such refinancing, which may include a reduction in the Obligor's scheduled monthly payment on the indebtedness secured by such Superior Lien or the conversion of an adjustable rate loan into a new fixed rate loan. The Servicer shall notify the Master Servicer, the Grantor Trustee and the Indenture Trustee of any modification, waiver or amendment of any provision of any Home Loan and the date thereof, and shall deliver to the applicable Custodian for deposit in the related Grantor Trustee's Home Loan File, a true and correct copy or, if available, an original of the agreement relating to such modification, waiver or amendment promptly following the execution thereof.

Waivers, Modifications and Extensions; Subordination. In accordance Consistent with the servicing standard in SECTION 4.01(A)terms of this Agreement, the Servicer shall collect all payments called for under may waive, modify or vary any provision of any Home Loan or consent to the terms and provisions postponement of strict compliance with any such provision or in any manner grant indulgence to any Obligor if in the Servicer's reasonable determination such waiver, modification, postponement or indulgence is not materially adverse to the interests of the Home Loans. The Servicer Securityholders; provided, however, unless the Obligor is in its discretion may waive or permit to be waived any penalty interest or any other fee or charge which the Servicer would be entitled to retain hereunder as servicing compensation and extend the Due Date on a Debt Instrument for a period (default with respect to each payment as to which the Due Date is extended) not greater than 90 days after Home Loan, or such default is, in the initially scheduled Due Date for such payment. Notwithstanding anything in this Agreement to judgment of the contraryServicer, reasonably foreseeable, the Servicer shall may not permit any additional extension or modification with respect to any Home Loan other than that permitted by the immediately preceding sentence, unless would change the Home Loan is a Defaulted Interest Rate, defer (subject to the following paragraph) or forgive the payment of any principal or interest (unless in connection with the liquidation of the related Home Loan. (See SECTION 4.10 hereof for a description of ) or extend the recovery procedures for Defaulted Home Loans.) The Servicer may in its discretion enter in subordination agreements with respect to any final maturity date on the Home Loan, PROVIDED that the Servicer determines, consistent with this Agreement and the Accepted Servicing Procedures, that the entering into of such subordination agreement is in the best interests of the Grantor Trust. The Servicer may grant a waiver or enter into a subordination agreement with respect to the refinancing of the indebtedness secured by a Superior Lien on the related Mortgaged Property, PROVIDED provided that the Obligor is in a better financial or cash flow position as a result of such refinancing, which may include a reduction in the Obligor's scheduled monthly payment on the indebtedness secured by such Superior Lien or the conversion of an adjustable rate loan into a new fixed rate loanLien. The Servicer shall notify the Master Servicer, Issuer and the Grantor Trustee and the Indenture Trustee of any modification, waiver or amendment of any provision of any Home Loan and the date thereof, and shall deliver to the applicable Custodian Grantor Trustee for deposit in the related Grantor Trustee's Home Loan File, a true and correct copy or, if available, an original counterpart of the agreement relating to such modification, waiver or amendment promptly following the execution thereof. Notwithstanding the preceding provisions of this subsection (c), the Servicer may modify, vary or waive any defaulted Home Loan in a manner that in the reasonable judgment of the Servicer will be likely to maximize the net proceeds realizable from such defaulted Home Loan under the circumstances, including, without limitation, the deferment or forgiveness of any principal or interest payments due or to become due thereon; provided, however, that no such modification, waiver or variation of a Home Loan pursuant to this subsection (c) shall involve the execution by the related Obligor of a new Debt Instrument. The Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of each Home Loan and the related Debt Instrument and Mortgage. Consistent with the foregoing, the Servicer may in its discretion waive or permit to be waived any late payment charge, prepayment charge or assumption fee or any other fee or charge which the Servicer would be entitled to retain hereunder as Servicing Compensation and extend the due date for payments due on a Debt Instrument. The Servicer may, in a manner consistent with its servicing practices, permit an Obligor who is selling his principal residence and purchasing a new residence to substitute the new Mortgaged Property as collateral for the related Home Loan. In such circumstances, the Servicer acknowledges that it intends to, consistent with its servicing practices, generally require such Obligor to make a partial prepayment in reduction of the principal balance of the Home Loan to the extent that such Obligor has received proceeds from the sale of the prior residence that will not be applied to the purchase of the new residence.