Regulatory Payment definition
Regulatory Payment means (i) to the extent the Mortgage Loan Servicing Errors giving rise to the Regulatory Action occurs (A) before the Closing Date or (B) both before the Closing Date and during the 180-day period immediately after the Closing Date, 100% of all Losses (which shall include, for purposes of this definition, any reverse and reimbursement payments made by the Servicer of fees or other charges) based upon such Mortgage Loan Servicing Errors paid by the Servicer arising out of such Regulatory Action; (ii) to the extent the Mortgage Loan Servicing Errors giving rise to the Regulatory Action occurs both before the Closing Date and after the 180-day period immediately after the Closing Date, 50% of all Losses (which shall include, for purposes of this definition, any reverse and reimbursement payments made by the Servicer of fees or other charges) based upon such Mortgage Loan Servicing Errors paid by the Servicer arising out of such Regulatory Action; (iii) to the extent that a failure by the Servicer to maintain prior to the Closing Date any state or federal license required for the lawful operation of its mortgage loan servicing business prior to the Closing Date gives rise to the Regulatory Action, 100% of all Losses based upon such failure paid by the Servicer arising out of such Regulatory Action; and (iv) to the extent that a failure of the Servicer to maintain a physical presence in the State of Pennsylvania prior to the Closing Date gives rise to the Regulatory Action, 100% of all Losses based upon such failure paid by the Servicer arising out of such Regulatory Action; provided, however, that Regulatory Payments shall not include any Losses that arise out of any Customer Accommodation, Customer Reversal or Private Litigation.
Regulatory Payment has the meaning ascribed thereto in Section 13(b).