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iii. Best Effort/Mandatory Commitments; Pair-Off Fees. This Agreementcontemplates the parties entering into “Mandatory” or “Best Effort”Commitments. Unless specified to be a Mandatory Commitment, Commitmentsshall be deemed to be Best Efforts Commitments.A. Mandatory Commitments are not borrower- or property-specific. B/C agreesto pay a pair-off fee on the under-delivery or non-delivery of Mortgage Loanssubject to a Mandatory Commitment if the current market is higher than thecurrent Commitment price. The pair-off fee shall be calculated as set forth inthe applicable Guide.B. Best Effort Commitments are borrower- and property-specific, and B/C shalluse its best efforts and exercise good faith and fair dealing in delivering LoanApplications and/or related Mortgage Loans. B/C agrees to pay a non-deliverypair-off fee to SWMC in the event that B/C fails to deliver a Mortgage Loansubject to a Best Effort Commitment that has closed on or before the ninetieth(90 th ) day after the Commitment expiration date. In all other cases, B/C shallnot be responsible for a pair-off fee for non-delivery of a Mortgage Loansubject to a Best Effort Commitment. The pair-off fee shall be calculated asset forth in the applicable Guide.C. In no event shall B/C be entitled to recover any amounts for negative marketmovement pair-offs.b. Statement Of Broker/Correspondent Fees. Prior to preparation of Mortgage Loandocuments by SWMC, B/C agrees to provide to SWMC a written statement of all loanfees, points, and other expenses to be charged to borrowers in addition to SWMC’slocked-in interest rate, fees, points and other loan related fees and expenses. Thisstatement shall also identify any loan fees or expenses previously paid to B/C outsideof closing (POC). All fees which are paid to B/C by SWMC, the closing settlementagent or the borrower and which are required by RESPA to be shown on the HUD-1Settlement Statement must be identified on the statement required by thissubdivision. SWMC reserves the right to further limit the fees paid to B/C for any ofthe loan programs offered by SWMC. Such limitations shall be noted in the Guides.No origination fee shall exceed any limits imposed by, nor have any feature orcharacteristics forbidden by, applicable FHA, Fannie Mae or Investor requirementsand applicable federal, state or local laws, rules and regulations. The parties agreethat, notwithstanding any provisions in the Agreement to the contrary, thecompensation paid to B/C shall not be greater than the “reasonable value” of thegoods, facilities and other services provided by B/C.c. Appraisals. B/C shall order and obtain appraisals for Loan Application packagesprovided to SWMC. All such appraisals must strictly comply with all appraisalstandards, policies and procedures of SWMC, FHA (for FHA insured loans), FannieMae, Freddie Mac as well as those set forth in the FIRREA and in the UniformStandards of Professional Appraisal Standards. Appraisals are subject to SWMC’sreview and approval. All appraisers must be on HUD’s approved appraiser list, whichSWMC reserves the right to modify at any time. Appraisals ordered or submitted byB/C may not be prepared by any person or entity related to or affiliated with B/C,any of its owners, officers or employees.d. Appointment Of Trustee. If loan documents are prepared by the B/C, theappointment of trustees under any trust deeds or deeds of trust shall be subject tothe approval of SWMC.e. Conduct Of Closings And Fundings. All closings shall be conducted in accordancewith and subject to SWMC’s written closing instructions and conditions, on formsInitials:________ BC App Ver. 7.7 10/06/2014 Page 8