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Mortgage Loan Participation Agreement

 

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Title:

Mortgage Loan Participation Agreement

Entities:

Freddie Mac; Mortgageit Holdings, Inc.; Federal National Mortgage Association

Date:

2004

Size:

88KB total

Price:

$39

ID:

#1455902

 

 

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MORTGAGE LOAN PARTICIPATION AGREEMENT

 

PARTICIPANT:

 

UBS WARBURG REAL ESTATE SECURITIES INC.

 

 

 

ADDRESS:

 

1285 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10019
ATTENTION: GEORGE A. MANGIARACINA
TELEPHONE:  (212) 713-3734
ATTENTION:  ROBERT CARPENTER
TELEPHONE:  (212) 713-8749

 

 

 

SELLER:

 

MORTGAGEIT, INC.

 

 

 

ADDRESS:

 

33 MAIDEN LANE
NEW YORK, NY 10038
ATTENTION:MIKE ZIGROSSI

 

 

 

DATE OF AGREEMENT:

 

DECEMBER 1, 2003

 



 

TABLE OF CONTENTS

 

Section 1.

Definitions.

2

 

 

 

Section 2.

Procedures for Purchases of Participation Certificates.

9

 

 

 

Section 3.

Issuance of Securities.

9

 

 

 

Section 4.

Servicing of the Mortgage Loans.

12

 

 

 

Section 5.

Takeout Commitments

14

 

 

 

Section 6.

Transfers of Participation Certificates and Securities by Participant

14

 

 

 

Section 7.

Record Title to Mortgage Loans; Intent of Parties; Security Interest.

15

 

 

 

Section 8.

Representations and Warranties.

15

 

 

 

Section 9.

Covenants of Seller

20

 

 

 

Section 10.

Confidentiality

24

 

 

 

Section 11.

Term

24

 

 

 

Section 12.

Exclusive Benefit of Parties; Assignment

24

 

 

 

Section 13.

Amendments; Waivers; Cumulative Rights

24

 

 

 

Section 14.

Execution in Counterparts

24

 

 

 

Section 15.

Effect of Invalidity of Provisions

24

 

 

 

Section 16.

Governing Law

25

 

 

 

Section 17.

Notices

25

 

 

 

Section 18.

Entire Agreement

25

 

 

 

Section 19.

Costs of Enforcement

25

 

 

 

Section 20.

Consent to Service

25

 

 

 

Section 21.

Submission to Jurisdiction; Waivers.

25

 

 

 

Section 22.

Construction

26

 

i



 

Exhibit A

Participation Certificate

 

 

 

 

Exhibit B

Trade Assignment

 

 

 

 

Exhibit C

Document List

 

 

 

 

Exhibit D

Warehouse Lenders Release

 

 

 

 

Exhibit E

Assignment

 

 

 

 

Exhibit F

Authorized Signatories

 

 

 

 

Exhibit G

Form of Opinion

 

 

 

 

Exhibit H

UCC-1 Financing Statement

 

 

 

 

Annex A

Sellers Delivery Instructions

 

 

ii



 

MORTGAGE LOAN PARTICIPATION AGREEMENT

 

Mortgage Loan Participation Agreement (Agreement), dated as of the date set forth on the cover page hereof, between UBS WARBURG REAL ESTATE SECURITIES INC.  (Participant) and the Seller whose name is set forth on the cover page hereof (Seller).

 

PRELIMINARY STATEMENT

 

Seller desires to sell to Participant from time to time Participation Certificates evidencing a 100% undivided ownership interest in certain Mortgage Loans eligible in the aggregate to back Securities with the terms described in related Take-Out Commitments.

 

Participant desires and may in its sole discretion purchase such Participation Certificates from Seller in accordance with the terms and conditions set forth in this Agreement.  Seller, subject to the terms hereof, will cause (a) Mortgage Loans evidenced by a Participation Certificate to back a GNMA Security issued by Seller and guaranteed by GNMA, a FNMA Security issued and guaranteed by FNMA or a FHLMC Security issued and guaranteed by FHLMC and (b) Delivery of such GNMA Security, FNMA Security or FHLMC Security by GNMA, FNMA or FHLMC to Participant or its designee, which GNMA Security, FNMA Security or FHLMC Security will be purchased by a Takeout Investor.

 

Participants willingness to purchase any Participation Certificate evidencing particular Mortgage Loans is based on Participants expectation, in reliance upon Sellers representations and warranties herein, that such Mortgage Loans in the aggregate, constitute a pool or pools of mortgage loans that are eligible to back a Security and that the Security, in the amount and with the terms described in the related Take-Out Commitment, will be issued and Participant will receive Delivery thereof within the time period agreed upon between Participant and Seller and reflected in the terms of such Participation Certificate.

 

The amount of the Purchase Price and the Performance Fee to be paid by Participant to Seller with respect to each Participation Certificate will be calculated on the expectation of Participant, based upon the representations and warranties of the Seller herein, that Participant will receive Delivery of the Security to be backed by the Mortgage Loans evidenced by the Participation Certificate purchased by Participant on the specified Anticipated Delivery Date and that failure to receive such Delivery will result in a material decrease in the market value of the Participation Certificate and the underlying Mortgage Loans considered as a whole.  During the period from the purchase of a Participation Certificate to Delivery of the related Security, Participant expects to rely entirely upon Seller to service the Mortgage Loans evidenced by the applicable Participation Certificate, it being acknowledged that the continued effectiveness of Sellers Agency Approvals during such period constitutes an essential factor in the calculation by Participant of the Purchase Price and the Performance Fee paid to Seller for the related Participation Certificate and that loss of such Agency Approvals by Seller would result in a material decrease in the market value of the Participation Certificate and the underlying Mortgage Loans considered as a whole.


 

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