Correspondent Seller Eligibility & Documentation Requirements

(43) Prior Servicing. Each Loan has been serviced in all material respects in strict
compliance with those mortgage servicing practices of prudent mortgage lending
institutions which service mortgage loans of the same type as such Loan in the
jurisdiction where the related Mortgaged Property is located.
(44) No Default Under First Lien. With respect to each second lien Loan, the first
lien mortgage loan related thereto is in full force and effect, and there is no
default, breach, violation or event which would permit acceleration existing under
such first Mortgage or Note, and no event which, with the passage of time or with
notice and the expiration of any grace or cure period, would constitute a default,
breach, violation or event which would permit acceleration thereunder.
(45) No Predatory Lending. No predatory or deceptive lending practices,
including, without limitation, the extension of credit without regard to the ability
of the Obligor to repay and the extension of credit which has no apparent benefit
to the Obligor(s), were employed in the origination of the Loan.
(46) No Fraud. No error, omission, negligence, misrepresentation, fraud, identity
theft, or similar occurrence has taken place on the part of the Seller, the Obligor,
any third party originator of such Loan, or any other person or entity, including
without limitation, any appraiser, any builder or developer, or any other party
involved in the origination of the Loan or in the application of any insurance in
relation to such loan.
(47) Origination. The Loan was originated by (i) a savings and loan association,
savings bank, commercial bank, credit union, insurance company or similar
institution that is supervised and examined by a federal or state authority, or (ii) a
mortgagee approved by the Secretary of HUD pursuant to Section 203 or 211 of
the National Housing Act.
(48) Environmental Status. The Mortgaged Property is in compliance with all
applicable environmental laws pertaining to environmental hazards including,
without limitation, asbestos, radon and lead paint, and neither the Seller nor, to
the Seller’s knowledge, the related Obligor, has received any notice of any
violation or potential violation of such law. The Mortgaged Property is free of
contamination from hazardous substances, and no amount of any hazardous
substances has been disposed of or identified on or under the Mortgaged Property
in violation of any federal, state or municipal law, regulation or standard.
These representations and warranties are made at and as of the time of origination, transfer, and
conveyance of each Loan to Buyer, but Buyer’s rights with respect to the breach of these
representations shall continue after the purchase of the Loan by Buyer and after payment by
Buyer of the Purchase Price to Seller, and shall survive after any termination of the Agreement.
These representations and warranties are for the benefit of Buyer as well as the benefit of
Buyer’s successors and assigns.
USBCF Correspondent Flow Agreement (Rev. 031408-01) 11 of 11