Common use of Liquidation of Mortgage Loans Clause in Contracts

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 five (5) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy, if applicable. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser or its designee in writing of the ServicerCompany's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner Purchaser or the Master Servicer its designee otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser or its designee with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser or its designee shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser or its designee directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser or its designee directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy, if applicable. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser or its designee in writing of the Servicer's Company’s intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner Purchaser or the Master Servicer its designee otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser or its designee with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser or its designee shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser or its designee directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser or its designee directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Seller shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Seller shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Seller shall notify the Master Servicer Purchaser in writing of the ServicerSeller's intention to do so, and the Servicer Seller shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 30 days beyond the expiration of any grace or cure period, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer Owner in writing of the Servicer's ’s intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer Owner objects to such action within 10 ten (10) Business Days of receiving such notice. In the event the Owner objects to such foreclosure action, the Servicer shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 4.3, and the Servicer’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to the Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.053.5) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such noticenotice and following such objection, the Company shall have no obligation to make Monthly Advances with respect to such Mortgage Loan. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such noticenotice and following such objection, the Company shall have no obligation to make Monthly Advances with respect to such Mortgage Loan. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event that the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Company shall determine how proceed, in the Servicer shall proceed best interest of the Purchaser, with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to Company shall proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer Company does not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 5.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1a) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2b) shall be consistent with Accepted Servicing Practices, (3c) is consistent with any related PMI Policy and (d) the Servicer Seller shall determine prudently to be in the best interest of Purchaser, provided, however, that the OwnerSeller shall deliver a notice to the applicable Mortgagor of the Seller's intent to foreclose (such notice, and (4a "Notice of Intent") is consistent with by the forty-fifth day of any related PMI Policy monetary delinquency or LPMI Policyat such time as permitted under applicable state law. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of no later than 90 days beyond the expiration of any grace or cure period, the Servicer Seller shall commence foreclosure proceedingsproceedings and provide notice thereof to the Purchaser in writing; provided that, the Seller may postpone such foreclosure proceedings until such payment is delinquent or any other default continues for a period of no later than 120 days beyond the expiration of any grace or cure period, if the Seller in its good faith business judgment reasonably believes that the postponement of such foreclosure proceedings is warranted and the Purchaser shall not suffer a material loss in connection with such postponement, provided that, prior to commencing foreclosure proceedingsthe Seller shall indemnify the Purchaser for any material loss that may result from such postponement, notwithstanding the Servicer shall notify the Master Servicer in writing of the ServicerSeller's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticegood faith business judgment. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration restoration, preservation or preservation inspection of any Mortgaged Property, unless it shall determine in its good faith business judgment, the Seller reasonably believes (a) that such preservation, restoration restoration, inspection and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.055.05) or through Insurance or Condemnation Proceeds (respecting which it shall have similar priority). Notwithstanding anything If the Seller determines not to make a Servicing Advance pursuant to the contrary contained hereinpreceding sentence, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in then the event Seller shall deliver an Officer's Certificate setting forth the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of reasons for such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofdetermination.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer Owner in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer Owner objects to such action within 10 three (3) Business Days of after receiving such notice. In the event the Owner objects to such foreclosure action, the Servicer shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Owner in the event of liquidation, and will be advanced by the Servicer. Upon completion of the inspectioninspection or review, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be is consistent with Accepted Servicing Practices, (3) the Practices and which Servicer shall determine prudently reasonably believes to be in the best interest of the OwnerOwner (including, and (4) is consistent with respect to each Second Lien Loan, in the case of any default on a related PMI Policy or LPMI Policysenior mortgage loan, the advancing of funds to correct such default). In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located) or earlier as determined by the Servicer, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer cause a Foreclosure Commencement in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeaccordance with Accepted Servicing Practices. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure or towards the correction of any default on the related senior mortgage loan will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). With respect to any Second Lien Loan, if the Servicer determines that no significant recovery is possible through foreclosure or other liquidation of the Mortgaged Property related to a Second Lien Loan for which the payments due thereon are past due, it shall charge off the related Second Lien Loan (each such Second Lien Loan, a “Charged-off Mortgage Loan”) at such time as such Second Lien Loan becomes 180 days past due. Once a Second Lien Loan becomes a Charged-off Mortgage Loan, the Servicer shall discontinue making Servicing Advances, the Servicer shall not be entitled to any additional servicing compensation, and the Servicer shall follow the procedures set forth in this paragraph. Any Charged-Off Mortgage Loans shall continue to be serviced by Servicer for the Owner using non-foreclosure collection procedures. The Servicer shall not be entitled to any Servicing Fees or reimbursement of expenses in connection with such Charged-Off Mortgage Loans except to the extent of funds available from the aggregate amount of recoveries on such Charged-Off Mortgage Loans which shall be paid to the Servicer to reimburse it for previously accrued Servicing Fees on any such Charged-Off Mortgage Loans. Any recoveries on such Charged-Off Mortgage Loans (net of accrued and unpaid Servicing Fees) will be treated as Liquidation Proceeds. The Servicer shall promptly obtain a BPO for any Mortgage Loan that is more than 90 days delinquent and shall continue to obtain a BPO no less than every six months thereafter with respect to any Mortgage Loan that continues to be delinquent. The results of any BPO shall be communicated to the Owner via a monthly report in mutually agreed upon format. The Servicer acknowledges and agrees that it shall take and initiate any legal actions with respect to any Mortgage Loans and REO Properties with the consent of the Owner, including, without limitation, any foreclosure actions, acceptance of deeds-in-lieu of foreclosure, short-sales, short refinancings or taking of an unsecured note in connection with a negotiated release of the lien of the Mortgage in order to facilitate a settlement with the related Mortgagor and any collection actions with respect to any Mortgage Loans or REO Properties on behalf of the Owner, but only in the name of the Servicer and without reference to the Owner. Except as otherwise required by law or with the consent of the Owner, under no circumstances shall any such action be taken in the name of, or with any reference to, the Owner. The Servicer shall provide prior written notice to the Owner if the Servicer is required by applicable law to take any legal actions with respect to the Mortgage Loan or REO Properties in the name of, or with reference to, the Owner. Owner agrees to provide all the documentation, appropriately recorded, if applicable, necessary for Servicer to initiate legal actions in its own name. Owner agrees to reimburse Servicer for any costs or expenses associated with assigning Mortgage Loans to Servicer or MERS as the case may be. Notwithstanding anything to the contrary contained herein, (a) all actions must be approved by the Owner relating to any Mortgaged Property that is determined to be contaminated by hazardous or toxic substances or wastes and (b), in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, inspector the Servicer shall cause such an environmental inspection or review the Mortgaged Property to be made by a qualified inspectorso inspected at the Owner’s expense. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After Notwithstanding anything to the contrary contained herein, after reviewing the environmental inspection report, the Master Servicer Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property; provided, that Servicer may determine in its sole discretion that it will not proceed with a foreclosure or acceptance of a deed in lieu of foreclosure with respect to a Mortgaged Property that has been determined to be contaminated by hazardous or toxic substances or wastes and with respect to which Servicer would be expected to take title in its own name. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 2.05 hereof. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 2.05 hereof. With respect to any Mortgage Loan that is collateralized by a Mortgaged Property and the Servicer is not proceeding to liquidation as a result of environmental contamination, the Servicer shall be entitled to be reimbursed for its Servicing Advances from amounts in the Custodial Account pursuant to Section 2.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Non-Agency Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Non-Agency Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently reasonably to be in the best interest of the Owner, and (4) is consistent Owner in accordance with any related PMI Policy or LPMI PolicyAccepted Servicing Practices. In the event that any payment due under any Non-Agency Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located) or earlier as determined by the Servicer, the Servicer shall commence foreclosure proceedings, provided that, prior is granted authority to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer effect Foreclosure Commencement in writing of the Servicer's intention accordance with and subject to do so, Exhibit 10 hereto and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeAccepted Servicing Practices. In such connection, the Servicer shall from its own shall, acting in accordance with Accepted Servicing Practices, advance on behalf of the Owner such funds make all as are necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Property securing a Non-Agency Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority)Loan. Notwithstanding anything herein to the contrary contained hereincontrary, in connection no Servicing Advance shall be required to be made hereunder with respect to a Non-Agency Mortgage Loan if such Servicing Advance would, if made, constitute a Nonrecoverable Advance. The determination by the Servicer that it has made a Nonrecoverable Advance with respect to a Non-Agency Mortgage Loan or that any proposed Servicing Advance with respect to a Non-Agency Mortgage Loan would constitute a Nonrecoverable Advance shall be evidenced by an Officers’ Certificate of the Servicer, delivered to the Owner, which details the reasons for such determination. The Servicer acknowledges and agrees that it shall take and initiate any legal actions with respect to any with respect to a Non-Agency Mortgage Loans and related REO Properties, including, without limitation, any foreclosure or actions, acceptance of a deed deeds in lieu of foreclosure, and any collection actions with respect to such Non-Agency Mortgage Loans or related REO Properties on behalf of the Owner, but only in the event name of the Servicer has reasonable cause or its nominee and without reference to believe that a Mortgaged Property is contaminated the Owner. Except as otherwise required by hazardous law or toxic substances or wasteswith the consent of the Owner, under no circumstances shall any such action be taken in the name of, or with any reference to, the Owner. The Servicer shall provide prior written notice to the Owner, if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property is required by applicable law to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed take any legal actions with respect to the Mortgaged Property. In Non-Agency Mortgage Loans or related REO Properties in the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous name of, or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosurereference to, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofOwner.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. Therefore, in connection therewith, the Servicer shall strictly comply with Accepted Servicing Practices. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 60 days or any other default continues for a period of 90 60 days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located), the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, proceedings in accordance with the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, Delinquency Collection Policies and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeProcedures. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, inspector the Servicer shall cause such an environmental inspection or review the Mortgaged Property to be made by a qualified inspectorso inspected. Upon completion of the inspection, the Servicer shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 2.05 hereof. In the event the Master Servicer Purchaser directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 2.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 5.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for it shall deem in its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently good faith business judgment to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodDepositors, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, Certificate Insurer and the Servicer shall notify Certificateholders and otherwise in accordance with the Master accepted second mortgage servicing practices of prudent lending institutions. The Servicer in writing accordance with the provisions of Section 5.10 shall foreclose upon or otherwise comparably effect the ownership in the name of the Servicer's intention Trustee for the benefit of the Certificateholders of Mortgaged Properties relating to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects defaulted Mortgage Loans as to such action within 10 Business Days which no satisfactory arrangements can be made for collection of receiving such notice. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, delinquent payments; provided, however, that the Servicer shall not be required obligated to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, foreclose in the event that the Servicer has Servicer, in its good faith reasonable cause to believe business judgment, determines that a Mortgaged Property is contaminated by hazardous or toxic substances or wastesit would not be in the best interests of the Depositors, or if the Owner Certificateholders or the Master Servicer otherwise requests Certificate Insurer, which judgment shall be evidenced by an environmental inspection Officer's Certificate delivered to the Trustee and the Certificate Insurer. In connection with such foreclosure or review of such Mortgaged Property to be conducted by a qualified inspectorother conversion, the Servicer shall cause such an environmental inspection exercise and use collection and foreclosure procedures with the same degree of care and skill as it would exercise or review to be made by a qualified inspectoruse under the circumstances in the conduct of its own affairs. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed Any amounts advanced in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated connection with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer other action shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all constitute "Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofAdvances."

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 4.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 4.1 and remains delinquent for a period of ninety (90) 30 days or any other default continues for a period of 90 30 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 ten (10) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.3, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner the Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.054.5) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 4.5 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 4.5 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 4.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, Purchaser and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 4.1 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.3, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.054.5) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 4.5 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 4.5 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do soso and shall provide such information regarding the Mortgage Loan as the Purchaser reasonably may request, and provided that the Servicer Company shall cease or not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days action. The Company shall follow any written directions of receiving the Purchaser with respect to the servicing of such noticeMortgage Loan, as long as such directions are in accordance with Accepted Servicing Practices and do not violate applicable law. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to 39 proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall first notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do soso and shall provide such information regarding the Mortgage Loan as the Purchaser may reasonably request, and provided that the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of receiving such notice. The Company shall follow any written directions of the Purchaser with respect to the servicing of such Mortgage Loan, as long as such directions do not violate applicable law. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do soso and shall provide such information regarding the Mortgage Loan as the Purchaser reasonably may request, and provided that the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of after receiving such notice. The Company shall follow any written directions of the Purchaser with respect to the servicing of such Mortgage Loan, as long as such directions are in accordance with Accepted Servicing Practices and do not violate applicable law. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) it shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently deem to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan remains delinquent for a period of forty-five (45) days, the Servicer shall order an inspection of the related Mortgaged Property and, except with respect to any Mortgage Loan for which the Servicer is not postponed pursuant to Section 4.01 and in the process of modifying or has modified the terms of such Mortgage Loan, if the Mortgage Loan remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodmore, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer proceedings in writing of the Servicer's intention to do so, accordance with Customary Servicing Procedures and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeguidelines set forth by Xxxxxx Xxx, Xxxxxxx Mac or FHFA, as applicable. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that . If the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation portion of any Mortgaged PropertyLiquidation Proceeds allocable as a recovery of interest on a related Mortgage Loan is less than the full amount of accrued and unpaid interest on such Mortgage Loan as of the date such proceeds are received, unless it then the applicable portion of the Servicing Fee with respect to such Mortgage Loan shall determine (a) that such preservation, restoration and/or foreclosure will increase be paid first and any amounts remaining thereafter shall be distributed to the proceeds of Owner. Upon liquidation of the any Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspectorLoan, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect notice thereof to the Mortgaged Property. In custodian appointed by the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofOwner.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyApplicable Requirements. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodIf foreclosure proceedings are commenced, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, subject to reimbursement in accordance with the terms of this Agreement, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will is reasonably expected to increase the proceeds of liquidation of the Mortgage Loan to the Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority)expenses. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, (a) the Servicer shall have no obligation to commence or continue foreclosure proceedings or obtain title to Mortgaged Property securing a Mortgage Loan as a result of or in lieu of foreclosure or otherwise if (i) such Mortgage Loan is subject to HOEPA or any regulations related thereto, (ii) such Mortgage Loan qualifies as a High Cost Loan under a state or local anti-predatory lending law or regulation, or (iii) the Servicer determines, in its reasonable judgment, that foreclosure and/or acquisition of title to Mortgaged Property would expose it or the Owner to material risk or liability pertaining to the acts, errors or omissions of the Originator or Prior Servicers and (b) in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if . If the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Owner. Upon completion of the inspectioninspection or review, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs and expenses associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereofthe terms of this Agreement. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances and Expenses made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofthe terms of this Agreement.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPolicy or any other primary mortgage guaranty insurance policies obtained and paid for by the Owner. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer shall commence foreclosure proceedingsproceedings and shall provide such information regarding the Mortgage Loan and such foreclosure as the Owner reasonably may request, provided that, prior to commencing foreclosure proceedings, that the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall cease or not commence foreclosure proceedings if the Master Servicer Owner objects to such action within 10 Business Days action. The Servicer shall follow any written directions of receiving the Owner with respect to the foreclosure proceedings of such noticeMortgage Loan, as long as such directions are in accordance with Accepted Servicing Practices and do not violate applicable law. In the event the Owner objects to such foreclosure action, the Servicer shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Owner. Upon completion of the inspectioninspection or review, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently reasonably to be in the best interest of the Owner, and (4) is consistent Owner in accordance with any related PMI Policy or LPMI PolicyAccepted Servicing Practices. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located) or earlier as determined by the Servicer, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer cause a Foreclosure Commencement in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeaccordance with Accepted Servicing Practices. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything herein to the contrary, no Servicing Advance shall be required to be made hereunder if such Servicing Advance would, if made, constitute a Nonrecoverable Advance. The determination by the Servicer that it has made a Nonrecoverable Advance or that any proposed Servicing Advance would constitute a Nonrecoverable Advance shall be evidenced by an Officers’ Certificate of the Servicer, delivered to the Owner which details the reasons for such determination. The Servicer acknowledges and agrees that it shall take and initiate any legal actions with respect to any Mortgage Loans and REO Properties, including, without limitation, any foreclosure actions, acceptance of deeds-in-lieu of foreclosure, and any collection actions with respect to any Mortgage Loans or REO Properties on behalf of the Owner, but only in the name of the Servicer or its nominee and without reference to the Owner. Except as otherwise required by law or with the consent of the Owner, under no circumstances shall any such action be taken in the name of, or with any reference to, the Owner. The Servicer shall provide prior written notice to the Owner if the Servicer is required by applicable law to take any legal actions with respect to the Mortgage Loan or REO Properties in the name of, or with reference to, the Owner. Notwithstanding the foregoing, all actions must be approved by the Owner relating to any Mortgaged Property that is determined to be contaminated by hazardous or toxic substances or wastes. With respect to any HOEPA Loan which is in default, but prior to the commencement of any loss mitigation procedures or foreclosure proceedings if a Loan is known to be a HOEPA Loan at time of commencement of such proceedings, the Servicer shall (A) review the related Mortgage File to determine whether or not the Mortgage File contains the disclosure documents required by HOEPA, whether or not such documents were executed by the related Mortgagor(s), and whether or not such documents were executed three or more days in advance of closing and (B) inform the Owner if such timely and executed disclosure documents are not in the Mortgage File. Further, prior to the commencement of any loss mitigation procedures with respect to a HOEPA Loan, the Servicer shall notify those servicing personnel involved in loss mitigation related to the Mortgage Loan as to whether or not any such disclosure documentation is defective or missing. In addition, once the Servicer determines to commence a foreclosure proceeding with respect to a HOEPA Loan, but prior to such commencement, the Servicer and its outside counsel shall review the Mortgage File to determine whether or not the requirements of HOEPA shall have been satisfied in connection with the origination, underwriting, servicing and sale of such HOEPA Loan, including whether or not required and accurate disclosures were made to and acknowledged by the related Mortgagor(s). Finally, the Servicer shall notify the Owner within 3 Business Days of receipt of notice by the Servicer’s proper servicing department if at any time the Mortgagor asserts a claim or defense based on HOEPA, whether in a written notice, as a defense to a foreclosure proceeding, or otherwise. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, inspector the Servicer shall cause such an environmental inspection or review the Mortgaged Property to be made by a qualified inspectorso inspected. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 2.05 hereof. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 2.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of after receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPolicy or any other primary mortgage guaranty insurance policies obtained and paid for by the Owner. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged PropertyProperty in excess of $2,000, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). The Servicer be responsible for all costs and expenses incurred by it in any such proceedings; provided, however, that it shall be entitled to reimbursement thereof from the related Mortgaged Property, as contemplated herein. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Owner. Upon completion of the inspectioninspection or review, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03. The Company shall notify the Purchaser in writing of the commencement of foreclosure proceedings. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner the Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). The Company shall use its best efforts to realize upon defaulted Mortgage Loans in such a manner as will maximize the receipt of principal and interest by the Purchaser, taking into account, among other things, the timing of foreclosure proceedings. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if upon the Owner or request of the Master Servicer otherwise requests Purchaser, the Company shall arrange for the preparation of an environmental inspection or review of report with respect to such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an inspector who regularly conducts environmental inspection or review to be made by a qualified inspectoraudits using customary industry standards. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event that the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company’s obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 5.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1a) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2b) shall be consistent with Accepted Servicing Practices, (3c) the Servicer Seller shall determine prudently to be in the best interest of the OwnerPurchaser, and (4d) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 5.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Seller shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Seller shall notify the Master Servicer Purchaser in writing of the Servicer's Seller’s intention to do so, and the Servicer Seller shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 5 Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.055.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.event

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 4.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 4.1 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.3, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.054.5) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 4.5 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 4.5 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event that the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 ten (10) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer Company shall cause such an environmental inspection or review property to be made inspected by a qualified inspectorenvironmental consulting firm. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Seller shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Seller shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Seller shall notify the Master Servicer Purchaser in writing of the Servicer's Seller’s intention to do so, and the Servicer Seller shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Interim Servicer shall take such action as (1) the Interim Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Interim Servicer shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Interim Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Interim Servicer shall notify the Master Servicer Purchaser in writing of the Interim Servicer's ’s intention to do so, and the Interim Servicer shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In such connection, the Interim Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Interim Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof. Collection of Mortgage Loan Payments. Continuously from the date hereof until the principal and interest on all Mortgage Loans are paid in full, the Company shall proceed diligently to collect all payments due under each of the Mortgage Loans when the same shall become due and payable and shall take special care in ascertaining and estimating Escrow Payments and all other charges that will become due and payable with respect to the Mortgage Loan and the Mortgaged Property, to the end that the installments payable by the Mortgagors will be sufficient to pay such charges as and when they become due and payable. Establishment of and Deposits to Custodial Account. The Company shall segregate and hold all funds collected and received pursuant to a Mortgage Loan separate and apart from any of its own funds and general assets and shall establish and maintain one or more Custodial Accounts, in the form of time deposit or demand accounts, titled "Countrywide Home Loans, Inc. in trust for EMC Mortgage Corporation, as purchaser of Residential Adjustable Rate Mortgage Loans and various Mortgagors". The Custodial Account shall be established with a Qualified Depository acceptable to the Purchaser. Any funds deposited in the Custodial Account shall at all times be fully insured to the full extent permitted under applicable law. Funds deposited in the Custodial Account may be drawn on by the Company in accordance with Section 4.05. The creation of any Custodial Account shall be evidenced by a certification in the form of Exhibit D-1 hereto, in the case of an account established with the Company, or by a letter agreement in the form of Exhibit D-2 hereto, in the case of an account held by a depository other than the Company. A copy of such certification or letter agreement shall be furnished to the Purchaser and, upon request, to any subsequent Purchaser. The Company shall deposit in the Custodial Account within two Business Days of receipt, and retain therein, the following collections received by the Company and payments made by the Company after the related Cut-off Date, (other than payments of principal and interest due on or before the related Cut-off Date, or received by the Company prior to the related Cut-off Date but allocable to a period subsequent thereto or with respect to each LPMI Loan, in the amount of the LPMI Fee): all payments on account of principal on the Mortgage Loans, including all Principal Prepayments; all payments on account of interest on the Mortgage Loans adjusted to the Mortgage Loan Remittance Rate; all Liquidation Proceeds; all Insurance Proceeds including amounts required to be deposited pursuant to Section 4.10, Section 4.11, Section 4.14 and Section 4.15; all Condemnation Proceeds which are not applied to the restoration or repair of the Mortgaged Property or released to the Mortgagor in accordance with Section 4.14; any amount required to be deposited in the Custodial Account pursuant to Section 4.01, 4.09, 5.03, 6.01 or 6.02; any amounts payable in connection with the repurchase of any Mortgage Loan pursuant to Section 3.03, 3.05 or 3.07 and all amounts required to be deposited by the Company in connection with a shortfall in principal amount of any Qualified Substitute Mortgage Loan pursuant to Section 3.03; with respect to each Principal Prepayment in full or in part, the Prepayment Interest Shortfall Amount, if any, for the month of distribution. Such deposit shall be made from the Company's own funds, without reimbursement therefor up to a maximum amount per month of the Servicing Fee actually received for such month for the Mortgage Loans; any amounts required to be deposited by the Company pursuant to Section 4.11 in connection with the deductible clause in any blanket hazard insurance policy; and any amounts received with respect to or related to any REO Property and all REO Disposition Proceeds pursuant to Section 4.16. The foregoing requirements for deposit into the Custodial Account shall be exclusive, it being understood and agreed that, without limiting the generality of the foregoing, payments in the nature of late payment charges and assumption fees, to the extent permitted by Section 6.01, need not be deposited by the Company into the Custodial Account. Any interest paid on funds deposited in the Custodial Account by the depository institution shall accrue to the benefit of the Company and the Company shall be entitled to retain and withdraw such interest from the Custodial Account pursuant to Section 4.05.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 5.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1a) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2b) shall be consistent with Accepted Servicing Practices, (3c) the Servicer Company shall determine prudently to be in the best interest of the Owner, Purchaser and (4d) is consistent with any related PMI Policy or LPMI Policy, if applicable. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 5.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 3 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.055.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policyother applicable insurance or guaranty, if any. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer Company shall cause such an environmental inspection or review property to be made inspected by a qualified inspectorenvironmental consulting firm. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 4.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 4.1 and remains delinquent for a period of ninety (90) 30 days or any other default continues for a period of 90 30 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 ten (10) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.3, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner the Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.054.5) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 4.5 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 4.5 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do soso and shall provide such information regarding the Mortgage Loan as the Purchaser reasonably may request, and provided that the Servicer Company shall cease or not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days action. The Company shall follow any written directions of receiving the Purchaser with respect to the servicing of such noticeMortgage Loan, as long as such directions are in accordance with Accepted Servicing Practices and do not violate applicable law. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Interim Servicer shall take such action as (1) the Interim Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Interim Servicer shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Interim Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Interim Servicer shall notify the Master Servicer Purchaser in writing of the Interim Servicer's intention to do so, and the Interim Servicer shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In such connection, the Interim Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Interim Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 5.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) it shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently deem to be in the best interest interests of the Owner, and Certificate Insurer (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any if such Liquidated Mortgage Loan is a Pool I or Pool IV Mortgage Loan) and the Certificateholders, as the case may be. The Servicer shall foreclose upon or otherwise comparably effect the ownership in the name of the Trustee for the benefit of the Certificateholders, as the case may be, of Mortgaged Properties relating to defaulted Mortgage Loans as to which no satisfactory arrangements can be made for collection of delinquent payments in accordance with the provisions of Section 5.10 and, in the case of FHA Loans, for which a Claim is not postponed required to be submitted to the FHA pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days 5.15. In connection with such foreclosure or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodconversion, the Servicer shall commence exercise collection and foreclosure proceedingsprocedures with the same degree of care and skill in its exercise or use as it would exercise or use under the circumstances in the conduct of its own affairs. The Servicer shall take into account the existence of any hazardous substances, provided thathazardous wastes or solid wastes, prior to commencing foreclosure proceedingsas such terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Servicer shall notify the Master Servicer in writing Resource Conservation and Recovery Act of the Servicer's intention to do so1976, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connectionor other federal, the Servicer shall from its own funds make all necessary and proper Servicing Advancesstate or local environmental legislation, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that on a Mortgaged Property is contaminated by hazardous in determining whether to foreclose upon or toxic substances or wastes, or if otherwise comparably convert the Owner or the Master Servicer otherwise requests an environmental inspection or review ownership of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed Any amounts advanced in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated connection with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer other action shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all constitute "Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofAdvances."

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently reasonably to be in the best interest of the Owner, and (4) is consistent Owner in accordance with any related PMI Policy or LPMI PolicyAccepted Servicing Practices. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located) or earlier as determined by the Servicer, the Servicer shall commence foreclosure proceedings, provided that, prior is granted authority to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer effect Foreclosure Commencement in writing of the Servicer's intention accordance with and subject to do so, Exhibit 17 hereto and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeAccepted Servicing Practices. In such connection, the Servicer shall from its own shall, acting in accordance with Accepted Servicing Practices, advance on behalf of the Owner such funds make all as are necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything herein to the contrary contained hereincontrary, in connection no Servicing Advance shall be required to be made hereunder if such Servicing Advance would, if made, constitute a Nonrecoverable Advance. The determination by the Servicer that it has made a Nonrecoverable Advance or that any proposed Servicing Advance would constitute a Nonrecoverable Advance shall be evidenced by an Officers’ Certificate of the Servicer, delivered to the Owner, which details the reasons for such determination. The Servicer acknowledges and agrees that it shall take and initiate any legal actions with a respect to any Mortgage Loans and REO Properties, including, without limitation, any foreclosure or actions, acceptance of a deed deeds in lieu of foreclosure, and any collection actions with respect to any Mortgage Loans or REO Properties on behalf of the Owner, but only in the event name of the Servicer has reasonable cause or its nominee and without reference to believe that a Mortgaged Property is contaminated the Owner. Except as otherwise required by hazardous law or toxic substances or wasteswith the consent of the Owner, under no circumstances shall any such action be taken in the name of, or with any reference to, the Owner. The Servicer shall provide prior written notice to the Owner, if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property is required by applicable law to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed take any legal actions with respect to the Mortgaged Property. In Mortgage Loan or REO Properties in the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous name of, or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosurereference to, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofOwner.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently reasonably to be in the best interest of the Owner, and (4) is consistent Owner in accordance with any related PMI Policy or LPMI PolicyAccepted Servicing Practices. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located) or earlier as determined by the Servicer, the Servicer shall commence foreclosure proceedings, provided that, prior is granted authority to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer effect Foreclosure Commencement in writing of the Servicer's intention accordance with and subject to do so, Exhibit 10 hereto and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeAccepted Servicing Practices. In such connection, the Servicer shall from its own shall, acting in accordance with Accepted Servicing Practices, advance on behalf of the Owner such funds make all as are necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything herein to the contrary contained hereincontrary, in connection no Servicing Advance shall be required to be made hereunder if such Servicing Advance would, if made, constitute a Nonrecoverable Advance. The determination by the Servicer that it has made a Nonrecoverable Advance or that any proposed Servicing Advance would constitute a Nonrecoverable Advance shall be evidenced by an Officers’ Certificate of the Servicer, delivered to the Owner, which details the reasons for such determination. The Servicer acknowledges and agrees that it shall take and initiate any legal actions with a respect to any Mortgage Loans and REO Properties, including, without limitation, any foreclosure or actions, acceptance of a deed deeds in lieu of foreclosure, and any collection actions with respect to any Mortgage Loans or REO Properties on behalf of the Owner, but only in the event name of the Servicer has reasonable cause or its nominee and without reference to believe that a Mortgaged Property is contaminated the Owner. Except as otherwise required by hazardous law or toxic substances or wasteswith the consent of the Owner, under no circumstances shall any such action be taken in the name of, or with any reference to, the Owner. The Servicer shall provide prior written notice to the Owner, if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property is required by applicable law to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed take any legal actions with respect to the Mortgaged Property. In Mortgage Loan or REO Properties in the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous name of, or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosurereference to, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofOwner.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Seller shall determine prudently to be in the best interest of the Owner, Purchaser and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 60 days or any other default continues for a period of 90 60 days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located), the Servicer Seller shall commence foreclosure proceedingsproceedings in accordance with the Fannie Mae Guides, provided that, prior to commencing foreclosure proceedingsprocexxxxxx, the Servicer xxe Seller shall notify the Master Servicer Purchaser in writing of the ServicerSeller's intention to do so, and the Servicer Seller shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 ten (10) Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Seller has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, inspector the Servicer Seller shall cause such an environmental inspection or review the Mortgaged Property to be made by a qualified inspectorso inspected at the Purchaser's expense. Upon completion of the inspection, the Servicer Seller shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Seller shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Seller to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Seller shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerSeller, the Servicer Seller shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 2.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Seller not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Seller shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 2.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 4.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 4.1 and remains delinquent for a period of ninety (90) 30 days or any other default continues for a period of 90 30 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser reasonably objects to such action within 10 ten (10) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.3, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner the Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.054.5) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 4.5 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 4.5 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety Foreclosure or comparable proceedings shall be initiated within one hundred twenty (90120) days of default for Mortgaged Properties for which no satisfactory arrangements can be made for collection of delinquent payments unless prevented by statutory limitations or any states whose bankruptcy laws prohibit such actions within such timeframe. The Company shall use its best efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Purchaser, taking into account, among other default continues for a period of 90 days beyond the expiration of any grace or cure periodthings, the Servicer shall commence timing of foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, and/or Insurance Proceeds, or if the Liquidation Proceeds and/or Insurance Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Seller shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Seller shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Seller shall notify the Master Servicer Purchaser in writing of the Servicer's Seller’s intention to do so, and the Servicer Seller shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 5 Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Seller shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Seller shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged PropertyProperty or Cooperative Unit, as applicable, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be is consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any first lien Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located) or earlier as determined by the Servicer, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer cause a Foreclosure Commencement in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeaccordance with Accepted Servicing Practices. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Servicer shall charge off a second lien Mortgage Loan in accordance with the charge off policy as directed by the Owner. In the event a second lien Mortgage Loan is not charged-off, Servicer shall proceed with a Foreclosure Commencement on such Mortgage Loan. As it relates to any Charged-Off Mortgage Loan, should Servicer determine that any amounts charged-off can be recovered, Servicer shall pursue the recovery of such amounts and will be entitled to the recovery fee specified in the related Term Sheet. As it relates to any Charged-Off Mortgage Loan, Servicer will be reimbursed for all Servicing Advances six months after date on which the second lien Mortgage Loans is charged-off. Should Servicer determine that any amounts charged-off can be recovered, Servicer shall pursue recovery of such amounts and Servicer will be entitled to the recovery fee specified in the related Term Sheet, from the amounts collected. If requested by Owner, and provided that a mutually acceptable system access agreement is executed by the parties, the Servicer shall provide the Owner with access to its online mortgage loan servicing data system (the “Data System”) during business hours (generally, Monday through Friday, between 7 a.m. and 9 p.m. EST, and Saturday between 8 a.m. and 2 p.m. EST) with respect to the Mortgage Loans. Owner shall be responsible for all costs associated with such access. The Servicer acknowledges and agrees that it shall take and initiate any legal actions with respect to any Mortgage Loans and REO Properties, including, without limitation, any foreclosure actions, acceptance of deeds-in-lieu of foreclosure, and any collection actions with respect to any Mortgage Loans or REO Properties on behalf of the Owner, but only in the name of the Servicer and without reference to the Owner. Except as otherwise required by law or with the consent of the Owner, under no circumstances shall any such action be taken in the name of, or with any reference to, the Owner. The Servicer shall provide prior written notice to the Owner if the Servicer is required by applicable law to take any legal actions with respect to the Mortgage Loan or REO Properties in the name of, or with reference to, the Owner. Owner agrees to provide all the documentation, appropriately recorded, if applicable, necessary for Servicer to initiate legal actions in its own name. Owner agrees to reimburse Servicer for any costs or expenses associated with assigning Mortgage Loans to Servicer or MERS as the case may be. Notwithstanding anything to the contrary contained herein, (a) all actions must be approved by the Owner relating to any Mortgaged Property that is determined to be contaminated by hazardous or toxic substances or wastes and (b) in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, inspector the Servicer shall cause such an environmental inspection or review the Mortgaged Property to be made by a qualified inspectorso inspected at the Owner’s expense. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After Notwithstanding anything to the contrary contained herein, after reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall in accordance with Accepted Servicing Practices proceed with respect to the Mortgaged Property; provided, that Servicer may determine in its sole discretion that it will not proceed with a foreclosure or acceptance of a deed in lieu of foreclosure with respect to a Mortgaged Property that has been determined to be contaminated by hazardous or toxic substances or wastes and with respect to which Servicer would be expected to take title in its own name. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 2.05 hereof. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 2.05 hereof. With respect to any Mortgage Loan that is collateralized by a Mortgaged Property and the Servicer is not proceeding to liquidation as a result of environmental contamination, the Servicer shall be entitled to be reimbursed for its Servicing Advances from amounts in the Custodial Account pursuant to Section 2.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do soso and shall provide such information regarding the Mortgage Loan as the Purchaser reasonably may request, and provided that the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of after receiving such notice. The Company shall follow any written directions of the Purchaser with respect to the servicing of such Mortgage Loan, as long as such directions are in accordance with Accepted Servicing Practices and do not violate applicable law. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located), the Servicer shall commence foreclosure proceedingsproceedings in accordance with the FNMA Guides, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer Purchaser in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 ten (10) Business Days of receiving such noticenotice or, if the provisions of the next two paragraphs apply, in any event without the prior written consent of Purchaser. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting in respect of which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting in respect of which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review the Mortgaged Property to be made by a qualified inspectorso inspected at the expense of the Purchaser. Upon completion of the inspection, the Servicer shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof2.05 hereof and to the extent amounts in the Custodial Account are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed by the Purchaser for such deficiencies (upon presentation of evidence of such deficiency). In the event the Master Servicer Purchaser directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 2.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and and, not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and shall provide such information regarding the Servicer Mortgage Loan as the Purchaser reasonably may request, provided that the Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of after receiving such notice. The Company shall follow any written directions of the Purchaser with respect to the servicing of such Mortgage Loan, as long as such directions are in accordance with Accepted Servicing Practices and do not violate applicable law. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and shall provide such information regarding the Servicer Mortgage Loan as the Purchaser reasonably may request, provided that the Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of after receiving such notice. The Company shall follow any written directions of the Purchaser with respect to the servicing of such Mortgage Loan, as long as such directions are in accordance with Accepted Servicing Practices and do not violate applicable law. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In The Company, on behalf of the event Purchaser, may also, in its sole and exclusive discretion, as an alternative to foreclosure, sell defaulted Mortgage Loans at fair market value to third-parties, if the Company believes, in its sole and exclusive discretion, that such sale would maximize proceeds to the Purchaser (on a present value basis) with respect to each such Mortgage Loan. Notwithstanding any payment due under any Mortgage Loan is not postponed pursuant other provision in this Agreement or otherwise, the Company shall have no liability to Section 4.01 and remains delinquent for a period of ninety (90) days the Purchaser or any other party for the Company's determination hereunder. Foreclosure or comparable proceedings shall be initiated within one hundred twenty (120) days after default continues with respect to Mortgaged Properties for a period which no satisfactory arrangements can be made for collection of 90 days beyond delinquent payments unless prevented by statutory limitations or states whose bankruptcy laws prohibit such actions within such timeframe. The Company shall use its best efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the expiration receipt of any grace or cure periodprincipal and interest by the Purchaser, taking into account, among other things, the Servicer shall commence timing of foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, and/or Insurance Proceeds, or if the Liquidation Proceeds and/or Insurance Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently reasonably to be in the best interest of the Owner, and (4) is consistent Owner in accordance with any related PMI Policy or LPMI PolicyAccepted Servicing Practices. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located) or earlier as determined by the Servicer, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the cause a Foreclosure Commencement in accordance with Accepted Servicing Practices. Servicer shall notify the Master Servicer Owner in writing in the monthly report as set forth on Exhibit 1 of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeForeclosure Commencement. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged PropertyProperty in excess of $2,000.00, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything herein to the contrary, no Servicing Advance shall be required to be made hereunder if such Servicing Advance would, if made, constitute a Nonrecoverable Advance. The determination by the Servicer that it has made a Nonrecoverable Advance or that any proposed Servicing Advance would constitute a Nonrecoverable Advance shall be evidenced by an Officers’ Certificate of the Servicer, delivered to the Owner which details the reasons for such determination. The Servicer acknowledges and agrees that it shall take and initiate any legal actions with respect to any Mortgage Loans and REO Properties, including, without limitation, any foreclosure actions, acceptance of deeds-in-lieu of foreclosure, and any collection actions with respect to any Mortgage Loans or REO Properties on behalf of the Owner, but only in the name of the Servicer or its nominee and without reference to the Owner. Except as otherwise required by law or with the consent of the Owner, under no circumstances shall any such action be taken in the name of, or with any reference to, the Owner. The Servicer shall provide prior written notice to the Owner if the Servicer is required by applicable law to take any legal actions with respect to the Mortgage Loan or REO Properties in the name of, or with reference to, the Owner. Notwithstanding the foregoing, all actions must be approved by the Owner relating to any Mortgaged Property that is determined to be contaminated by hazardous or toxic substances or wastes. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, inspector the Servicer shall cause such an environmental inspection or review the Mortgaged Property to be made by a qualified inspectorso inspected. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 2.05 hereof. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 2.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety ninetieth (90) days or any other default continues for a period of 90 ninetieth (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects ninetieth (90th) day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event that the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of receiving such notice. In the event that the Purchaser objects to such foreclosure action, to the extent consistent with, with respect to the Non-Conventional Mortgage Loans, FHA, VA or RHS guidelines or the Servicing Guides, as applicable, or with respect to Conventional Mortgage Loans, Section 5.03, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, ; provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner the Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event that the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event that (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event that the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer proceedings and shall notify the Master Servicer Purchaser in writing of when such foreclosure commenced. In the Servicer's intention event the Purchaser objects to do sosuch foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 4.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1a) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2b) shall be consistent with Accepted Servicing Practices, (3c) the Servicer shall determine prudently to be in the best interest of the OwnerTrustee, and (4d) is consistent with any related PMI Policy or LPMI PPMI Policy. In Foreclosure or comparable proceedings shall be initiated within 120 days of default for Mortgaged Properties for which no satisfactory arrangements can be made for collection of delinquent payments unless prevented by statutory limitations or states whose bankruptcy laws prohibit such actions within such timeframe. The Servicer shall use its best efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 receipt of principal and remains delinquent for a period of ninety (90) days or any interest by the Trustee, taking into account, among other default continues for a period of 90 days beyond the expiration of any grace or cure periodthings, the Servicer shall commence timing of foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (ax) that such preservation, restoration and/or foreclosure will increase the net proceeds of liquidation of the Mortgage Loan to Owner Trustee after reimbursement to itself for such expenses and (by) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.054.6) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Trustee otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Trustee. Upon completion of the inspectioninspection or review, the Servicer shall promptly provide the Owner Trustee with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Trustee shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Trustee directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds and/or Insurance Proceeds, or if the Liquidation Proceeds and/or Insurance Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 4.6 hereof. In the event the Master Servicer Trustee directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 4.6 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with not in violation of any related PMI Policy or LPMI PPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety Foreclosure or comparable proceedings shall be initiated within one hundred twenty (90120) days of default for Mortgaged Properties for which no satisfactory arrangements can be made for collection of delinquent payments unless prevented by statutory limitations or any states whose bankruptcy laws prohibit such actions within such timeframe. The Company shall, in accordance with Accepted Servicing Practices, realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Purchaser, taking into account, among other default continues for a period of 90 days beyond the expiration of any grace or cure periodthings, the Servicer shall commence timing of foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the net proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses Purchaser and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.054.06) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review shall be borne by the Purchaser. If the Company has to advance its own funds for such environmental report, such advance shall be made by deemed a qualified inspectorServicing Advance payable through withdrawal from the Custodial Account or reimbursement from the Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. The Purchaser shall provide its determination to the Company within five (5) Business Days upon receipt of such environmental inspection report. If the Purchaser fails to provide its determination to the Company within such time period, the Company shall use its best judgment, in consideration of Accepted Servicing Practices, to make its own determination on how to proceed. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds and/or Insurance Proceeds, or if the Liquidation Proceeds and/or Insurance Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 4.06 hereof. If funds in the Custodial Account are insufficient to fully reimburse the Company, the Purchaser shall reimburse the Company within ten (10) Business Days upon receipt of an invoice from the Company. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 4.06 hereof. If funds in the Custodial Account are insufficient to fully reimburse the Company, the Purchaser shall reimburse the Company within ten (10) Business Days upon receipt of an invoice from the Company.

Liquidation of Mortgage Loans. In the event that If any payment due under any First Lien Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event if the Mortgagor fails to perform any other covenant or obligation under the First Lien Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) it shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently deem to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that If any payment due under any First Lien Mortgage Loan is remains delinquent for such period as provided in the Servicing Guidelines, Seller shall commence foreclosure proceedings in accordance with those Servicing Guidelines, unless otherwise directed by Purchaser. Seller shall not postponed pursuant sell any such First Lien Mortgage Loan unless Seller has first obtained the consent of Purchaser. Purchaser may instruct Seller to Section 4.01 and commence foreclosure proceedings on any First Lien Mortgage Loan for which any payment remains delinquent for a period of ninety (90) 120 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer shall commence more. If Seller has commenced foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer it shall promptly notify the Master Servicer in writing Purchaser and thereafter periodically advise Purchaser of the Servicer's intention to do so, and status of the Servicer shall not commence foreclosure proceedings if and follow Purchaser’s instructions in connection therewith. Whether in connection with the Master Servicer objects to such action within 10 Business Days foreclosure of receiving such notice. In such connectiona Mortgage Loan or otherwise, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall Seller is not be required to expend make a Servicing Advance unless Seller determines in the exercise of its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) good faith reasonable judgment that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will Servicing Advance would ultimately be recoverable by it either through from Liquidation Proceeds, Insurance Proceeds, REO Disposition Proceeds or Condemnation Proceeds (respecting with respect to each of which it Seller shall have the priority described in Section 4.05 for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priorityAccount). Notwithstanding anything If the portion of any Liquidation Proceeds or REO Disposition Proceeds allocable as a recovery of interest on any First Lien Mortgage Loan is less than the full amount of accrued and unpaid interest on such First Lien Mortgage Loan as of the date such proceeds are received, then the Servicing Fees and Servicing Advances shall be paid first to Seller, and any amounts remaining thereafter shall be distributed to Purchaser. Within fifteen (15) days of receiving a monthly remittance report from Seller indicating (i) that a payment due under any Second Lien Mortgage Loan is delinquent and remains delinquent for a period of thirty (30) days beyond the contrary contained hereinexpiration of any grace or cure period therefor; or (ii) that any other default under a Second Lien Mortgage Loan continues for a period of sixty (60) days beyond the expiration of any grace or cure period therefor, Purchaser shall notify Seller in connection with a writing to commence foreclosure or acceptance of proceedings, including accepting a deed in lieu of foreclosure. In no event, in shall Seller ever be required to fund any amounts necessary to satisfy any liens superior to the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion lien of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect Mortgage being foreclosed or to clear title to the related Mortgaged Property. In Prior to the event (a) the environmental inspection report indicates time such funds are needed, Purchaser shall provide Seller with all funds needed to pay off prior lien holders and to clear title. Upon request therefor, Purchaser shall promptly reimburse Seller for all other funds of an incidental nature that Seller expends or incurs in connection with such foreclosure, including Seller’s fees, expenses and attorneys fees. Upon Purchaser’s acquisition of the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with through foreclosure or acceptance of a deed in lieu of foreclosure, or upon failure of Seller to receive written direction of Purchaser to commence foreclosure within fifteen (15) days after Purchaser receives its monthly remittance report from Seller indicating a sixty (60) day default, Seller shall not thereafter have any obligation or liability to Purchaser, or to any other Person, for or on account of such Mortgage Loan or such Mortgaged Property, including the Servicer collection of any indebtedness due under the Mortgage Loan. Purchaser, however, shall be reimbursed promptly reimburse Seller for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made expenses incurred by Seller with respect to the Mortgage Property and the related Mortgage Loan, including without limitation any unreimbursed Servicing Advances, unpaid Servicing Fees and reasonable attorneys fees. Once responsibility for a Mortgaged Property from the Custodial Account is transferred to Purchaser pursuant to Section 4.05 hereofthe provisions of this section, Purchaser shall have no right to transfer it back to Seller.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 ten (10) Business Days of receiving such notice. In The Company's obligation to make such connection, Monthly Advances shall terminate upon delivery by the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that Company to the Servicer shall not be required to expend its own funds Purchaser of a Certificate of Nonrecoverable Advance in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). form set forth in Exhibit M. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or inspection, a review of such Mortgaged Property to shall be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) that the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) wastes, the Master Servicer directs the Servicer to Company shall not proceed with foreclosure or acceptance of a deed in lieu of foreclosure, and the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made advanced by the Company as a qualified inspectorServicing Advance reimbursable in accordance with Section 4.05. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 three (3) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer b)the Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policyother applicable insurance or guaranty, if any. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, howeverthat the Company shall obtain the prior written consent of the Purchaser or the Master Servicer prior to making any Servicing Advance of $5,000 or more, and provided further, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests requests, an environmental inspection or review of such Mortgaged Property to shall be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection upon completion of the inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 4(a) is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Seller shall determine prudently to be in the best interest of the Owner, Purchaser and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 4(a) and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Seller shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.054(e)) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Company shall determine how proceed, in the Servicer shall proceed best interest of the Purchaser, with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to Company shall proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer Company does not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. (i) In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 30 days beyond the expiration of any grace or cure period, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer Owner in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer Owner objects to such action within 10 ten (10) Business Days of receiving such notice. In the event the Owner objects to such foreclosure action, the Servicer shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 4.3, and the Servicer's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to the Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.053.5) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1a) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2b) shall be consistent with Accepted Servicing Practices, Practices and (3c) the Servicer Seller shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Seller shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Seller shall notify the Master Servicer Purchaser in writing of the ServicerSeller's intention to do so, and the Servicer Seller shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 4.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, and (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPurchaser. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 4.1 and remains delinquent for a period of ninety (90) 30 days or any other default continues for a period of 90 30 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the Servicer's Company’s intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 ten (10) Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.3, and the Company’s obligation to make such Monthly Advances shall terminate on the 90th day after (i) the date on which the Mortgage Loan became 30 days delinquent, in the case of delinquency, or (ii) the 30th day beyond the expiration of any grace or cure period for any other default during which such default continues. For the avoidance of doubt, a scheduled payment becomes 30 days delinquent if it is not received by the open of business on the second Due Date following the Due Date therefor. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner the Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.054.5) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 4.5 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 4.5 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Seller shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Seller shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Seller shall notify the Master Servicer Purchaser in writing of the ServicerSeller's intention to do so, and the Servicer Seller shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company’s obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyPolicy or any other primary mortgage guaranty insurance policies obtained and paid for by the Owner. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Owner. Upon completion of the inspectioninspection or review, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing PracticesApplicable Requirements. Servicer shall, only with the prior written consent of the related Owner, foreclose upon or otherwise comparably convert the ownership of such Mortgaged Properties as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments of the related Mortgage Loans pursuant to Section 2.1. If Servicer determines that it is prohibited by Applicable Law from commencing foreclosure proceedings, Servicer shall notify the related Owner no later than three (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyBusiness Days following such determination. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodIf foreclosure proceedings are commenced, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, subject to reimbursement in accordance with the terms of this Agreement, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will is reasonably expected to increase the proceeds of liquidation of the Mortgage Loan to Owner the Owners after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority)expenses. Notwithstanding anything to the contrary contained herein, in connection with the servicing of any Delinquent Mortgage Loan which (i) is subject to HOEPA or any regulations related thereto, (ii) qualifies as a High Cost Loan under a state or local anti-predatory lending law or regulation or (iii) the related Owner otherwise identifies to the Servicer, the Servicer shall not, without the prior approval of the Owner, commence or continue any collection or loss mitigation activities with respect to such Mortgage Loan, including without limitation, the commencement or continuation of any foreclosure proceedings or acceptance other proceedings to obtain title to Mortgaged Property securing a Mortgage Loan as a result of a deed or in lieu of foreclosureforeclosure or otherwise, the delivery of letters or notices to the related Mortgagor, the communication with any Mortgagor (whether by email, letter, telephone, facsimile or otherwise) or any other pre-foreclosure postures or activities. To the extent that any such activities are approved by the Owner, the Servicer shall act in strict compliance with the Owner’s written instructions (provided such instructions are made in accordance with Applicable Requirements), including, without limitation, employing any telephone scripts or other forms provided by the Owner or approved by the Owner in writing in connection with any communication with the Mortgagor. In the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if Servicer shall promptly notify the Owners. If the related Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made by deemed a qualified inspectorServicing Advance. Upon completion of the inspectioninspection or review, the Servicer shall promptly provide the Owner Owners with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer related Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer related Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs and expenses associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereofthe terms of this Agreement. In the event the Master Servicer related Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances and Expenses made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofthe terms of this Agreement. With respect to any Mortgage Loan, if the related Owner instructs the Servicer in writing, the Servicer shall charge off the related Mortgage Loan on the date indicated by such Owner in its instructions (such date, a “Charge Off Date”; and each such Mortgage Loan, a “Charged Off Mortgage Loan”).

Liquidation of Mortgage Loans. The Servicer shall use its best efforts, consistent with the procedures that the Servicer would use in servicing loans for its own account, to foreclose upon or otherwise comparably convert the ownership of such Mortgaged Properties as come into and continue in default and as to which no satisfactory arrangements can be made for collection of delinquent payments pursuant to Section 2.01. The Servicer shall use its best efforts to realize upon defaulted Mortgage Loans in such a manner as will maximize the receipt of principal and interest by the Purchaser, taking into account, among other things, the timing of foreclosure proceedings. The foregoing is subject to the provisions that, in any case in which Mortgaged Property shall have suffered damage, the Servicer shall not be required to expend its own funds toward the restoration of such property unless it shall determine in its discretion (i) that such restoration will increase the proceeds of liquidation of the related Mortgage Loan to the Purchaser after reimbursement to itself for such expenses, and (ii) that such expenses will be recoverable by the Servicer through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer shall commence foreclosure proceedings, provided that, that prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer Purchaser in writing of the Servicer's ’s intention to do so, and the . The Servicer shall not commence notify the Purchaser in writing of the commencement of foreclosure proceedings if on a monthly basis no later than the Master Servicer objects to such action within 10 fifth Business Days Day of receiving such noticeeach month. In such connection, the Servicer shall from its own funds make be responsible for all necessary costs and proper Servicing Advances, expenses incurred by it in any such proceedings; provided, however, that it shall be entitled to reimbursement thereof from the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any related Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase as contemplated in Section 2.05. Notwithstanding the proceeds of liquidation generality of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspectorpreceding paragraph, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of take the inspection, following steps at approximately the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed time intervals indicated below with respect to each Mortgagor for which there is a delinquency until such time as such Mortgagor is current with all payments due under the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.Mortgage Loan:

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer Company shall notify the Master Servicer Purchaser in writing of the ServicerCompany's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 Business Days of receiving such notice. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03. The Company shall notify the Purchaser in writing of the commencement of foreclosure proceedings. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in excess of $2,000 in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner the Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). The Company shall use its best efforts to realize upon defaulted Mortgage Loans in such a manner as will maximize the receipt of principal and interest by the Purchaser, taking into account, among other things, the timing of foreclosure proceedings. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if upon the Owner or request of the Master Servicer otherwise requests Purchaser, the Company shall arrange for the preparation of an environmental inspection or review of report with respect to such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an inspector who regularly conducts environmental inspection or review to be made by a qualified inspectoraudits using customary industry standards. Upon completion of the inspection, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such <PAGE> failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior . In the event the Purchaser objects to commencing such foreclosure proceedingsaction, the Servicer Company shall notify the Master Servicer in writing of the Servicer's intention not be required to do somake Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Non-Agency Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Non-Agency Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently reasonably to be in the best interest of the Owner, and (4) is consistent Owner in accordance with any related PMI Policy or LPMI PolicyAccepted Servicing Practices. In the event that any payment due under any Non-Agency Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located) or earlier as determined by the Servicer, the Servicer shall commence foreclosure proceedings, provided that, prior is granted authority to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer effect Foreclosure Commencement in writing of the Servicer's intention accordance with and subject to do so, Exhibit 10 hereto and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeAccepted Servicing Practices. In such connection, the Servicer shall from its own shall, acting in accordance with Accepted Servicing Practices, advance on behalf of the Owner such funds make all as are necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Property securing a Non-Agency Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority)Loan. Notwithstanding anything herein to the contrary contained hereincontrary, in connection no Servicing Advance shall be required to be made hereunder with respect to a Non-Agency Mortgage Loan if such Servicing Advance would, if made, constitute a Nonrecoverable Advance. The determination by the Servicer that it has made a Nonrecoverable Advance with respect to a Non-Agency Mortgage Loan or that any proposed Servicing Advance with respect to a Non-Agency Mortgage Loan would constitute a Nonrecoverable Advance shall be evidenced by an Officers’ Certificate of the Servicer, delivered to the Owner, which details the reasons for such determination. The Servicer acknowledges and agrees that it shall take and initiate any legal actions with respect to any with respect to a Non-Agency Mortgage Loans and related REO Properties, including, without limitation, any foreclosure or actions, acceptance of a deed deeds in lieu of foreclosure, and any collection actions with respect to such Non-Agency Mortgage Loans or related REO Properties on behalf of the Owner, but only in the event name of the Servicer has reasonable cause or its nominee and without reference to believe that a Mortgaged Property is contaminated the Owner. Except as otherwise required by hazardous law or toxic substances or wasteswith the consent of the Owner, under no circumstances shall any such action be taken in the name of, or with any reference to, the Owner. The Servicer shall provide prior written notice to the Owner, if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property is required by Applicable Law to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed take any legal actions with respect to the Mortgaged Property. In Non-Agency Mortgage Loans or related REO Properties in the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous name of, or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosurereference to, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofOwner.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). The Company acknowledges and agrees that it shall take and initiate any legal actions with respect to any Mortgage Loans and REO Properties, including, without limitation, any foreclosure actions, acceptance of deeds-in-lieu of foreclosure, and any collection actions with respect to any Mortgage Loans or REO Properties on behalf of the Purchaser, but only in the name of the Company and without reference to the Purchaser. Except as otherwise required by law or with the consent of the Purchaser, under no circumstances shall any such action be taken in the name of, or with any reference to, the Purchaser. The Company shall provide prior written notice to the Purchaser if the Company is required by applicable law to take any legal actions with respect to the Mortgage Loan or REO Properties in the name of, or with reference to, the Purchaser. Notwithstanding the foregoing, all actions must be approved by the Purchaser relating to any Mortgaged Property that is determined to be contaminated by hazardous or toxic substances or wastes. Notwithstanding Company's representation set forth in Section 3.02(tt), in the event that any Mortgage Loan is a HOEPA Loan which is in default, but prior to the commencement of any loss mitigation procedures or foreclosure proceedings, the Company shall (A) review the related Mortgage File to determine whether or not the Mortgage File contains the disclosure documents required by HOEPA, whether or not such documents were executed by the related Mortgagor(s), and whether or not such documents were executed three or more days in advance of closing and (B) inform the Purchaser if such timely and executed disclosure documents are not in the Servicing File. Further, prior to the commencement of any loss mitigation procedures with respect to any such HOEPA Loan, the Company shall notify those servicing personnel involved in loss mitigation related to the Mortgage Loan as to whether or not any such disclosure documentation is defective or missing. In addition, once the Company determines to commence a foreclosure proceeding with respect to any such HOEPA Loan, but prior to such commencement, the Company and its outside counsel shall review the Mortgage File to determine whether or not the requirements of HOEPA shall have been satisfied in connection with the origination, underwriting, servicing and sale of such HOEPA Loan, including whether or not required and accurate disclosures were made to and acknowledged by the related Mortgagor(s). Finally, the Company shall notify the Purchaser within 3 Business Days if at any time the Mortgagor asserts a claim or defense based on HOEPA, whether in a written notice, as a defense to a foreclosure proceeding, or otherwise. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently to be in the best interest of the Owner, and (4) is consistent with any related PMI Policy or LPMI PolicyApplicable Requirements. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodIf foreclosure proceedings are commenced, the Servicer shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, subject to reimbursement in accordance with the terms of this Agreement, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will is reasonably expected to increase the proceeds of liquidation of the Mortgage Loan to the Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority)expenses. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, (a) the Servicer shall have no obligation to commence or continue foreclosure proceedings or obtain title to Mortgaged Property securing a Mortgage Loan as a result of or in lieu of foreclosure or otherwise if (i) such Mortgage Loan is subject to HOEPA or any regulations related thereto, (ii) such Mortgage Loan qualifies as a High Cost Loan under a state or local anti-predatory lending law or regulation, or (iii) the Servicer determines, in its reasonable judgment, that foreclosure and/or acquisition of title to Mortgaged Property would expose it to material risk or liability pertaining to the acts, errors or omissions of the Originator or Prior Servicers and (b) in the event the Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if . If the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Owner. Upon completion of the inspectioninspection or review, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Owner shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Owner directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs and expenses associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereofthe terms of this Agreement. In the event the Master Servicer Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofthe terms of this Agreement.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) 90 days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall (a) act in the best interests of the Purchaser, (b) commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, that the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer Company shall not commence foreclosure proceedings if it receives a written notice from the Master Servicer Purchaser objecting to such action, no later than the third Business Day prior to such commencement and (c) respond to reasonable inquiries of the Purchaser with respect to the Mortgage Loan or related REO Property. Furthermore, the Purchaser may instruct the Company to commence foreclosure proceedings on any Mortgage Loan for which any payment remains delinquent for a period of 120 days or more and shall periodically advise the Purchaser, upon receipt of written request, of the status of such foreclosure proceedings and shall follow the Purchaser’s instruction in connection therewith. In the event the Purchaser objects to such action within 10 Business Days of receiving foreclosure action, the Company shall cease foreclosure actions and shall not be required to make Monthly Advances with respect to such noticeMortgage Loan, pursuant to Section 5.03, and the Company's obligation to make such Monthly Advances shall terminate on the 90th day referred to above. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. (a) In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure period, the Servicer Company shall commence foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer . The Company shall notify the Master Servicer Purchaser in writing of the Servicer's intention commencement of foreclosure proceedings. The Company shall use its best efforts to do sorealize upon defaulted Mortgage Loans in such a manner as will maximize the receipt of principal and interest by the Purchaser, taking into account, among other things, the timing of foreclosure proceedings. In the event the Purchaser objects to such foreclosure action, the Company shall not be required to make Monthly Advances with respect to such Mortgage Loan, pursuant to Section 5.03, and the Servicer Company's obligation to make such Monthly Advances shall not commence foreclosure proceedings if terminate on the Master Servicer objects 90th day referred to such action within 10 Business Days of receiving such noticeabove. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). The foregoing is subject to the provisions that, in any case in which Mortgaged Property shall have suffered damage, the Company shall not be required to expend its own funds toward the restoration of such property in excess of $2,000 unless it shall determine in its discretion (i) that such restoration will increase the proceeds of liquidation of the related Mortgage Loan to Purchaser after reimbursement to itself for such expenses, and (ii) that such expenses will be recoverable by the Company through Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated herein. In the event that any payment due under any Mortgage Loan is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Company shall take such action as it shall deem to be in the best interest of the Purchaser. Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 5.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) it shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently deem to be in the best interest interests of the Owner, and Certificate Insurer (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any if such Liquidated Mortgage Loan is a Pool I or Pool II Mortgage Loan) and the Certificateholders, as the case may be. The Servicer shall foreclose upon or otherwise comparably effect the ownership in the name of the Trustee for the benefit of the Certificateholders, as the case may be, of Mortgaged Properties relating to defaulted Mortgage Loans as to which no satisfactory arrangements can be made for collection of delinquent payments in accordance with the provisions of Section 5.10 and, in the case of FHA Loans, for which a Claim is not postponed required to be submitted to the FHA pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days 5.15. In connection with such foreclosure or any other default continues for a period of 90 days beyond the expiration of any grace or cure periodconversion, the Servicer shall commence exercise collection and foreclosure proceedingsprocedures with the same degree of care and skill in its exercise or use as it would exercise or use under the circumstances in the conduct of its own affairs. The Servicer shall take into account the existence of any hazardous substances, provided thathazardous wastes or solid wastes, prior to commencing foreclosure proceedingsas such terms are defined in the Comprehensive Environmental Response Compensation and Liability Act, the Servicer shall notify the Master Servicer in writing Resource Conservation and Recovery Act of the Servicer's intention to do so1976, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connectionor other federal, the Servicer shall from its own funds make all necessary and proper Servicing Advancesstate or local environmental legislation, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that on a Mortgaged Property is contaminated by hazardous in determining whether to foreclose upon or toxic substances or wastes, or if otherwise comparably convert the Owner or the Master Servicer otherwise requests an environmental inspection or review ownership of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed Any amounts advanced in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated connection with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer other action shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all constitute "Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofAdvances."

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 4.1 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1a) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2b) shall be consistent with Accepted Servicing Practices, (3c) the Servicer shall determine prudently to be in the best interest of the OwnerCertificateholders, and (4d) is consistent with any related PMI Policy or LPMI PPMI Policy. In With respect to any defaulted Mortgage Loan, the event that any payment due under any Servicer shall have the right to review the status of the related forbearance plan and, subject to the second paragraph of Section 4.3, may modify such forbearance plan; including, extending the Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent repayment date for a period of ninety (90) days up to one year or any other default continues for a period of 90 days beyond reducing the expiration of any grace or cure period, the Servicer shall commence foreclosure proceedings, provided that, prior Mortgage Rate up to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice50 basis points. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance other conversion, the Servicer shall exercise such rights and powers vested in it hereunder and use the same degree of care and skill in its exercise as prudent mortgage servicers would exercise or use under the circumstances in the conduct of their own affairs and consistent with applicable regulations and the Accepted Servicing Practices, including, without limitation, advancing funds for the payment of taxes and insurance premiums with respect to first lien Mortgage Loans. Notwithstanding the foregoing provisions of this Section 4.2, with respect to any Mortgage Loan as to which the Servicer has received actual notice of, or has actual knowledge of, the presence of any toxic or hazardous substance on the related Mortgaged Property, the Servicer shall not (i) obtain title to such Mortgaged Property as a deed result of or in lieu of foreclosureforeclosure or otherwise, in the event the Servicer has reasonable cause to believe that a or (ii) otherwise acquire possession of, or take any other action with respect to, such Mortgaged Property is contaminated by hazardous if, as a result of any such action, the Trust Fund or toxic substances or wastesthe Trustee would be considered to hold title to, to be a mortgagee-in-possession of, or if the Owner to be an owner or the Master Servicer otherwise requests an environmental inspection or review operator of such Mortgaged Property within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to be conducted time, or any comparable law, unless the Servicer has also previously determined, based on its reasonable judgment and a prudent report prepared by a qualified inspectorPerson who regularly conducts environmental audits using customary industry standards, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.that:

Liquidation of Mortgage Loans. In the event that any payment due under any Non-Agency Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Non-Agency Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently reasonably to be in the best interest of the Owner, and (4) is consistent Owner in accordance with any related PMI Policy or LPMI PolicyAccepted Servicing Practices. In the event that any payment due under any Non-Agency Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety (90) days or any other default continues for a period of 90 ninety (90) days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located) or earlier as determined by the Servicer, the Servicer shall commence foreclosure proceedings, provided that, prior is granted authority to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer effect Foreclosure Commencement in writing of the Servicer's intention accordance with and subject to do so, Exhibit 10 hereto and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such noticeAccepted Servicing Practices. In such connection, the Servicer shall from its own shall, acting in accordance with Accepted Servicing Practices, advance on behalf of the Owner such funds make all as are necessary and proper Servicing Advances, provided, however, that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Property securing a Non-Agency Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority)Loan. Notwithstanding anything herein to the contrary contained hereincontrary, in connection no Servicing Advance shall be required to be made hereunder with respect to a Non-Agency Mortgage Loan if such Servicing Advance would, if made, constitute a Nonrecoverable Advance. The determination by the Servicer that it has made a Nonrecoverable Advance with respect to a Non-Agency Mortgage Loan or that any proposed Servicing Advance with respect to a Non-Agency Mortgage Loan would constitute a Nonrecoverable Advance shall be evidenced by an Officers’ Certificate of the Servicer, delivered to the Owner, which details the reasons for such determination. The Servicer acknowledges and agrees that it shall take and initiate any legal actions with respect to any with respect to a Non-Agency Mortgage Loans and related REO Properties, including, without limitation, any foreclosure or actions, acceptance of a deed deeds in lieu of foreclosure, and any collection actions with respect to such Non-Agency Mortgage Loans or related REO Properties on behalf of the Owner, but only in the event name of the Servicer has reasonable cause or its nominee and without reference to believe that a Mortgaged Property is contaminated the Owner. Except as otherwise required by hazardous law or toxic substances or wasteswith the consent of the Owner, under no circumstances shall any such action be taken in the name of, or with any reference to, the Owner. The Servicer shall provide prior written notice to the Owner, if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property is required by applicable law to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspector. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed take any legal actions with respect to the Mortgaged Property. In Non-Agency Mortgage Loans or related REO Properties in the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous name of, or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosurereference to, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereofOwner. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.NY1 8630204v.6

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer shall take such action as (1) the Servicer would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) it shall be consistent with Accepted Servicing Practices, (3) the Servicer shall determine prudently deem to be in the best interest of the OwnerPurchaser. The Purchaser shall have the sole option to elect to have the management and disposition of any Mortgage Loan that becomes delinquent for a period of ninety (90) days or more performed by the Servicer, or to transfer the servicing to any other entity engaged by the Purchaser, in which case such Mortgage Loan shall be service transferred to such other entity and (4) is consistent with any related PMI Policy or LPMI Policyno longer subject to this Agreement. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 remains delinquent for a period of forty-five (45) days, the Servicer shall order an inspection of the related Mortgaged Property and if the Mortgage Loan remains delinquent for a period of ninety (90) days or more and remains subject to this Agreement, the Servicer shall commence foreclosure proceedings in accordance with Accepted Servicing Practices; provided that, the Servicer may postpone such foreclosure proceedings until such payment is delinquent or any other default continues for a period of 90 no later than 120 days beyond the expiration of any grace or cure period, if the Servicer in its good faith business judgment reasonably believes that the postponement of such foreclosure proceedings is warranted and the Purchaser shall commence foreclosure proceedings, not suffer a material loss in connection with such postponement; provided further that, prior to commencing foreclosure proceedings, the Servicer shall notify indemnify the Master Servicer in writing of Purchaser for any material loss that may result from such postponement, notwithstanding the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice’s good faith business judgment. In such connection, the Servicer shall from its own funds make all necessary and proper Servicing Advances, provided, however, Advances through final disposition but only to the extent that the Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained hereindetermine, in connection with a foreclosure or acceptance its good faith judgment, that the amount of a deed in lieu of foreclosure, in the event the Servicer has reasonable cause to believe that a Mortgaged Property proposed Servicing Advance is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, the Servicer shall cause such an environmental inspection or review to be made by a qualified inspectortypically recoverable. Upon completion of the inspection, the Servicer shall promptly provide the Owner with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer shall determine how the Servicer shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer directs the Servicer to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer directs the Servicer not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made in accordance with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereofthis Agreement.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the Owner, Purchaser and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 and remains delinquent for a period of ninety Foreclosure or comparable proceedings shall be initiated within one hundred twenty (90120) days of default for Mortgaged Properties for which no satisfactory arrangements can be made for collection of delinquent payments unless prevented by statutory limitations or any states whose bankruptcy laws prohibit such actions within such timeframe. The Company shall use its best efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest by the Purchaser, taking into account, among other default continues for a period of 90 days beyond the expiration of any grace or cure periodthings, the Servicer shall commence timing of foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, ; provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the net proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds and/or Insurance Proceeds, or if the Liquidation Proceeds and/or Insurance Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Company shall take such action as (1) the Servicer Company would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Company shall determine prudently to be in the best interest of the OwnerPurchaser, and (4) is consistent with any related PMI Policy or LPMI Policy. In The Company, on behalf of the event Purchaser, may also, in its sole and exclusive discretion, as an alternative to foreclosure, sell defaulted Mortgage Loans at fair market value to third-parties, if the Company believes, in its sole and exclusive discretion, that such sale would maximize proceeds to the Purchaser (on a present value basis) with respect to each such Mortgage Loan. Notwithstanding any payment due under any Mortgage Loan is not postponed pursuant other provision in this Agreement or otherwise, the Company shall have no liability to Section 4.01 and remains delinquent for a period of ninety (90) days the Purchaser or any other party for the Company's determination hereunder. Foreclosure or comparable proceedings shall be initiated within 120 days after default continues with respect to Mortgaged Properties for a period which no satisfactory arrangements can be made for collection of 90 days beyond delinquent payments unless prevented by statutory limitations or states whose bankruptcy laws prohibit such actions within such timeframe. The Company shall use its best efforts to realize upon defaulted Mortgage Loans in such manner as will maximize the expiration receipt of any grace or cure periodprincipal and interest by the Purchaser, taking into account, among other things, the Servicer shall commence timing of foreclosure proceedings, provided that, prior to commencing foreclosure proceedings, the Servicer shall notify the Master Servicer in writing of the Servicer's intention to do so, and the Servicer shall not commence foreclosure proceedings if the Master Servicer objects to such action within 10 Business Days of receiving such notice. In such connection, the Servicer Company shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Company shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Company has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property Property, such an inspection or review is to be conducted by a qualified inspector, the Servicer shall cause . The cost for such an environmental inspection or review to shall be made borne by a qualified inspectorthe Purchaser. Upon completion of the inspectioninspection or review, the Servicer Company shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Company shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Company to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, and/or Insurance Proceeds, or if the Liquidation Proceeds and/or Insurance Proceeds are insufficient to fully reimburse the ServicerCompany, the Servicer Company shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Company not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Company shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 hereof.

Liquidation of Mortgage Loans. In the event that any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 2.01 is not paid when the same becomes due and payable, or in the event the Mortgagor fails to perform any other covenant or obligation under the Mortgage Loan and such failure continues beyond any applicable grace period, the Servicer Seller shall take such action as (1) the Servicer Seller would take under similar circumstances with respect to a similar mortgage loan held for its own account for investment, (2) shall be consistent with Accepted Servicing Practices, (3) the Servicer Seller shall determine prudently to be in the best interest of the Owner, Purchaser and (4) is consistent with any related PMI Policy or LPMI Policy. In the event that any payment due under any Mortgage Loan is not postponed pursuant to Section 4.01 2.01 and remains delinquent for a period of ninety (90) 60 days or any other default continues for a period of 90 60 days beyond the expiration of any grace or cure periodperiod (or such other period as is required by law in the jurisdiction where the related Mortgaged Property is located), the Servicer Seller shall commence foreclosure proceedingsproceedings in accordance with the Fannie Mae Guides, provided that, prior to commencing foreclosure proceedingsproceexxxxx, the Servicer xxx Seller shall notify the Master Servicer Purchaser in writing of the ServicerSeller's intention to do so, and the Servicer Seller shall not commence foreclosure proceedings if the Master Servicer Purchaser objects to such action within 10 ten (10) Business Days of receiving such notice. In such connection, the Servicer Seller shall from its own funds make all necessary and proper Servicing Advances, provided, however, that the Servicer Seller shall not be required to expend its own funds in connection with any foreclosure or towards the restoration or preservation of any Mortgaged Property, unless it shall determine (a) that such preservation, restoration and/or foreclosure will increase the proceeds of liquidation of the Mortgage Loan to Owner Purchaser after reimbursement to itself for such expenses and (b) that such expenses will be recoverable by it either through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Custodial Account pursuant to Section 4.052.05) or through Insurance Proceeds (respecting which it shall have similar priority). Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or acceptance of a deed in lieu of foreclosure, in the event the Servicer Seller has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Owner or the Master Servicer Purchaser otherwise requests an environmental inspection or review of such Mortgaged Property to be conducted by a qualified inspector, inspector the Servicer Seller shall cause such an environmental inspection or review the Mortgaged Property to be made by a qualified inspectorso inspected at the Purchaser's expense. Upon completion of the inspection, the Servicer Seller shall promptly provide the Owner Purchaser with a written report of the environmental inspection. After reviewing the environmental inspection report, the Master Servicer Purchaser shall determine how the Servicer Seller shall proceed with respect to the Mortgaged Property. In the event (a) the environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous or toxic substances or wastes and (b) the Master Servicer Purchaser directs the Servicer Seller to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Seller shall be reimbursed for all reasonable costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if the Liquidation Proceeds are insufficient to fully reimburse the ServicerSeller, the Servicer Seller shall be entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 2.05 hereof. In the event the Master Servicer Purchaser directs the Servicer Seller not to proceed with foreclosure or acceptance of a deed in lieu of foreclosure, the Servicer Seller shall be reimbursed for all Servicing Advances made with respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05 2.05 hereof.