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Mortgage Loan note. On a reverse Mortgage Loan, an EPD occurs when any groundfor acceleration of the debt occurs within the first six (6) months after Funding.h. Early Loan Pre-Payment. An early loan pre-payment (“Early Pre-Payment”) occurs.An Early Pre-Payment occurs when (i) a Mortgage Loan is paid off in full within thefirst six (6) months following loan closing or Funding, whichever is later; or (ii) whereB/C refinances the loan through a lender other than SWMC within six (6) months ofloan closing or Funding, whichever is later. Notwithstanding the foregoing, B/C isprohibited from directly or indirectly soliciting for a potential refinance any borroweron a Mortgage Loan that B/C sold to SWMC or causing any such borrower on aMortgage Loan that B/C sold to SWMC to be solicited by a third party for a potentialrefinance.i. Borrower/Applicant Claims. An applicant or borrower on any Mortgage Loan: (i)makes a claim to SWMC relating to any misrepresentation, misconduct or negligenceby B/C when the borrower was solicited or the Mortgage Loan was originated; and/or(ii) SWMC is named in any litigation relating to B/C’s or any guarantor’smisrepresentations, negligence or misconduct, or when a Mortgage Loan wasoriginated.6. REMEDIESa. Upon the occurrence of an Event of Default, SWMC may elect, at its sole discretion,any one or more of the following remedies:I. Cure. B/C may be required to cure the error.II.III.Repurchase. B/C agrees to repurchase the Mortgage Loan (or the mortgagedproperty, if title thereto is held by SWMC) at a price equal to the sum of (i)the then outstanding principal balance of the Mortgage Loan to berepurchased, plus (ii) accrued interest thereon at the mortgage interest ratefrom the date to which interest had last been paid through the date of suchrepurchase, plus (iii) the amount of any outstanding advances owed to anyservicer, plus (iv) SWMC’s reasonable and customary out-of-pocket expensesincurred by SWMC in transferring such Mortgage Loan, including, withoutlimitation, expenses incurred for maintenance and repairs, assessments, taxesand similar items, to the extent not paid out of an escrow account transferredby B/C to SWMC, plus (v) all lost profits suffered by SWMC in connection withthe Mortgage Loan repurchased, plus (vi) all costs and expenses incurred inthe enforcement of the Seller’s repurchase obligation hereunder and plus (vii)$2,000 as reimbursement for SWMC’s administrative expenses relating tosuch Mortgage Loan. All repurchases shall be completed within twenty (20)days following receipt of written notice from SWMC to repurchase.Indemnification. B/C agrees to indemnify and defend and hold SWMC, and itsofficers, directors, employees, employees, agents, shareholders,representatives, successors, assigns, agents and affiliates (collectively, the“Indemnitees”), harmless from and against, and shall reimburse theIndemnitees with respect to, any and all losses, damages, demands, claims,liabilities, costs and expenses, including reasonable attorneys’ fees, whetheror not a lawsuit is filed (collectively, “Losses”), of any nature or causewhatsoever, incurred by reason of or arising out of or in connection with: (A)an Event of Default; (B) an investigation undertaken by SWMC with respect toany document included as part of a Loan Application package or MortgageLoan; (C) a claim by an applicant or borrower resulting from SWMC’s failureor refusal to Fund a Mortgage Loan; (D) a claim by an applicant or borrowerarising out of B/C’s charging fees in excess of those allowed by ApplicableLaw, Fannie Mae (if applicable), Freddie Mac (if applicable) or an Investor; orInitials:________ BC App Ver. 7.7 10/06/2014 Page 14