SECOND ADDENDUM TO SERVICING AGREEMENT

EX-10.31 30 dex1031.htm SECOND ADDENDUM TO SERVICING AGREEMENT Second Addendum to Servicing Agreement

Exhibit 10.31

SECOND ADDENDUM TO SERVICING AGREEMENT

This Second Addendum dated as of April 1, 2005 (the “Addendum”) is made to the Servicing Agreement dated as of August 21, 2001 and amended as of July 1, 2004 (the “Agreement”) by and between GMAC Mortgage Corporation (“GMACM” or “Servicer”), a Pennsylvania corporation with its principal office at 100 Witmer Road, Horsham, Pennsylvania 19044-0963 and GMAC Bank (the “Bank”), a federal savings bank with its principal office at 3710 Kennett Pike, Greenville, Delaware 19807.

Explanatory Statement

1. GMACM and the Bank have entered into the Agreement, whereby GMACM will service certain residential mortgage loans and lines of credits originated or acquired by the Bank.

2. GMACM and the Bank wish to amend Exhibit A to the Agreement as it applies to Servicing Compensation payable to GMACM for its Servicing Activities with respect to loans held for investment.

3. It is the intent of the Bank and GMACM that this Addendum comply with the requirements of Sections 23A and 23B of the Federal Reserve Act, the applicable provisions of the Home Owners Loan Act, and the implementing OTS regulations.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties hereto, intending to be legally bound, hereby agree as follows:

1. The capitalized terms used herein, unless otherwise defined, shall have the meanings set forth in the Agreement.

2. Exhibit A to the Agreement is hereby amended and replaced in its entirety by the Servicing Fee Schedule for Held for Investment Loans attached as Exhibit A hereto.

3. Any conflict between the provisions of this Addendum and those of the Agreement shall be resolved in favor of the provisions of this Addendum. Except as expressly set forth in this Addendum, no modification of the Agreement is made or intended to be made by this Addendum, and the Agreement, as amended by this Addendum, is confirmed and reaffirmed by GMACM and the Bank and shall be and remain in full force and effect.

IN WITNESS WHEREOF, each of the undersigned parties to this Addendum has caused this Addendum to be duly executed in its corporate name by one of its duly authorized officers, all as of the date first above written.

 

ATTEST:     GMAC MORTGAGE CORPORATION

 

     By:   
      William Maguire
    Its:    Senior Vice President

ATTEST:

     GMAC BANK
    By:   
      Peter A. Simon
    Its:    Senior Vice President

 

1. As defined in the GMACM service level template attached hereto.

Exhibit A

Servicing Fee Schedule for Held for Investment (HFI) Loans

 

Pricing    GMACB has chosen not to use the Private Label service offered by NLA, and consequently, the following prices are for servicing with GMACM branding. GMACB will be charged on a pass-thru basis for certain Firsts and on a sub-servicing invoice basis for certain HFI Firsts, HELs and HELOCs
Sub-servicing Program Set-up
Charge		    No Charge

Set Up Fee Per

Loan/Line

   
From GMACM    No Charge
From Other Parties   

Actual out-of-pocket expenses passed through to GMACB plus reasonable GMACM personnel

costs on a case-by-case basis.

Borrower Web Access    No Charge
Service Fee Per Loan/Line    Monthly service fee per product

 

  1) For first mortgage loans funded prior to July 1, 2004, classified as HFI and serviced under Investor # 50230 Block # 10003, and for first mortgages classified as HFS; there is no change from the practice of passing through net interest after deducting the applicable servicing fee (25.0 or 37.5 basis points per annum depending on the loan type) on the outstanding unpaid principal balance.

 

 

2)

For HEL – 16.18 basis points and HELOC – 23.43 basis points based on the daily average outstanding balance for the month, to be invoiced monthly effective July 1, 2004. All HEL and HELOC loans will be serviced using the “consumer/HELOC” service level process.1

 

 

3)

For first mortgage “Prime” loans funded subsequent to June 30, 2004, classified as HFI and serviced under newly established blocks (These will be communicated with the effective date announcement): 1.62 basis points per annum on the daily average outstanding balance for the month, to be invoiced monthly effective when announced on a date to be determined. All “Prime” loans will be serviced using the “Prime/Base” service level process.1

 

 

4)

For first mortgage “Alt-A” loans funded subsequent to March 1, 2005, classified as HFI and serviced under newly established blocks (these will be communicated with the effective date of the announcement): 2.00 basis points per annum on the daily average outstanding balance for the month, to be invoiced monthly effective when announced on a date to be determined. All “Alt-A” loans will be serviced using the “Alt-A/Enhanced” service level process.1

Daily average outstanding balances will be obtained from the servicing system for the affected investor/blocks. GMACM NLA will prepare the invoice and forward to GMAC Bank Accounting for approval by noon on the second business day of each month for information regarding the prior month.

 

Firsts (Prime)

   Firsts (Alt-A)   HEL   HELOC

1.62 bps/annum

   2.00 bps/annum   16.18 bps/annum   23.43 bps/annum

 

Ancillary Income

   
Line Fees and Late Charges    For account of GMACB

Principal and Interest Float

    For account of GMACB (P&I receipts are passed to GMACB on an actual basis as received)
Escrow and Interest Float    For account of GMACM (T&I value is given to GMACM)

 

1. As defined in the GMACM service level template attached hereto.

Servicing Activity Fees    For account of GMACM (e.g. payoff statements, fax fees) if paid by the Borrower.

Optional Products

    Revenue of non-banking products retained by GMACM

Customer Prepayment Fees

    For account of GMACB
De-Boarding Fee Per Loan for HFI assets sold to a third party    Actual out-of-pocket expenses passed through to GMACB plus reasonable GMACM personnel costs

Service Level Template For HFI Loans

 

#

        

Service Level Name

   

Specific Measure Definition

   

Prime Base

   

Alt-A/Enhanced

   

Sub Prime

   

Consumer/HELOC

   

Sp Serv/Aggressive

   

Comments

           

Commitment

   

Commitment

   

Commitment

   

Commitment

   

Commitment

   
1    Boarding Default Data    Data Entry    Data loaded within x days of data delivery    100% in 7 business days    100% in 7 business days          100% in 7 business days   
2    Collections    Welcome Call    available,% made within # of days    Not Applicable    Not Applicable    100% within 10 days (post boarding)    Not Applicable    100% within 10 days upon receipt of data   
3    Collections    Outbound Call Starts    First delinquency day for contact    Per Freddie Mac Early Indicator Score, Day 17    Per Freddie Mac Early Indicator Score, Day 8    Day 5    Day 2    Day 2    EI scoring model driven
4    Collections    Outbound Call Attempts    # of attempts in 30 day delinquency cycle    4 attempts, 30 days    4 attempts, 30 days    10 attempts, 30 days    10 attempts, 30 days    Daily    Prime, Alt-A, sub-prime are EI driven, Consumer are FICO driven
6    Collections    Outbound Penetration Rate    % of loans with attempted contact from eligibility date    95% within 30 days of eligibility date    95% within 30 days of eligibility date    95% within 5 days of eligibility date    95% within 5 days of eligibility date    95% daily    score, campaigns can start between day 2 and day 31
7    Collections    Failed Promise of Payment Recontact Date    # of days between fail date and recontact attempt date    not to exceed 10 days    not to exceed 10 days    Daily    Daily    Daily    Promises to pay and repayment plans
8    Correspondence    Late Charge Notices Sent    % notified of late charge assessed per month    95% per month    95% per month          95% per month   
9    Correspondence    Intent to Foreclose/ Breach Letter    % notified by x day of delinquency    95% by 63rd day of delinquency    95% by 32nd day of delinquency    95% by 32nd day of delinquency    95% by 63rd day of delinquency    95% by 32nd day of delinquency   
10    Correspondence    Breach Letter Expiration Notice    % sent by x day of delinquency    95% by 95th day of delinquency    95% sent 30 days after breach expiration    95% sent 30 days after breach expiration    Not Applicable    95% sent 30 days after breach expiration   
11    Property Inspections    Initial Inspection    % completed by x day of delinquency    95% by 45th day of delinquency    95% by 45th day of delinquency          95% by 45th day of delinquency   
12    Property Inspections    Subsequent Inspections    % completed monthly until resolution    Per FNMA Guides    Per FNMA Guides          95% per month   
13    Property Valuations    Initial BPO ordered    % ordered by x day of delinquency    95% by 65th day of delinquency    95% by 65th day of delinquency          95% by 65th day of delinquency   
14    Property Valuations    Subsequent BPOs    % ordered every 6 months    95% once every 6 months    95% once every 6 months          95% once every 6 months   
15    Foreclosure    Referral to Attorney    % completed within x days of breach expiration    95% within 15 days    95% within 15 days          95% within 15 days   
16    Foreclosure    Timeline Guidelines    % completed within Freddie Mac or Insurer guidelines    90%    90%          95%   
17    Foreclosure    Title Delay Resolution    % of delays resolved within x days unless documentation for delay written    95% in 60 days    95% in 60 days          95% in 60 days   
18    Foreclosure    Assignment Delays Resolution    % of delays resolved within x days unless documentation for delay written    95% in 60 days    95% in 60 days          95% in 60 days   
19    Bankruptcy    Loading new Bankruptcies    % loaded within x days of detection    95% in 2 business days    95% in 2 business days          95% in 2 business days   
20    Bankruptcy    Proof of Claim Referral    % referred to attorney    95% referred in 15 business days of detection    95% referred in 15 business days of detection          95% referred in 15 business days of detection   
21    Bankruptcy    Chapter 7 Motion for Relief    % referred to attorney    95% referred in 15 business days of assignment to bankruptcy processor    95% referred in 15 business days of assignment to bankruptcy processor          95% referred in 15 business days of assignment to bankruptcy processor   
22    Bankruptcy    Chapter 13 Motion for Relief    % referred to attorney    95% at earliest date, not to exceed 90 days past post petition due date    95% at earliest date, not to exceed 90 days past post petition due date          95% at earliest date, not to exceed 90 days past post petition due date   
23    Bankruptcy    Referral for Next Appropriate Action (Foreclosure, Collection, Loss Mitigation)    % referred for next action    95% in 3 business days    95% in 3 business days          95% in 3 business days   
24    Bankruptcy    Receipt of Chapter 13 Proposed Plans    % reviewed/objected to by confirmation date    95%    95%          95%   
25    Loss Mitigation    Solicitation Attempts    # of solicitation attempts per month, commencing x    2 calling attempts per month after foreclosure referral    2 calling attempts per month after foreclosure referral, solicitation card mailed at Day-90    2 calling attempts per month after foreclosure referral, solicitation card mailed at Day-60    2 calling attempts per month after Day-120    2 calling attempts per month after foreclosure referral, solicitation card mailed at Day-60   
26    Loss Mitigation    Follow-up Packages Sent    % called within x business days    95% within 15 business days    95% within 10 business days    95% within 10 business days    95% within 10 business days    95% within 10 business days    -
27    Loss Mitigation    Follow-up on Repayment Plans    % follow-end up x days prior to plan due date    95% within 10 days of plan due date    95% within 10 days of plan due date    95% within 10 days of plan due date    95% within 10 days of plan due date    95% within 10 days of plan due date   
28    Loss Mitigation    Equity Evaluation    # of completed evaluations by Day 120    Not Applicable    Not Applicable    90% by the 120th day of default    90% by the 120th day of default    90% by the 120th day of default   
29    REO    Marketing-Available for Sale to List       30 days 95% rolling average    30 days 95% rolling average          30 days 95% rolling average   
30    REO    Marketing-List Date to Sale       120 days 95% rolling average    120 days 95% rolling average          120 days 95% rolling average   
31    REO    Marketing-Executed contract to close date       45 days 95% rolling average    45 days 95% rolling average          45 days 95% rolling average   
32    REO    Cash Proceeds-Sales Price to Market Value       97% average    97% average          97% average   
33    REO    less Closing Costs and Concessions to Market Value       87% average    87% average          87% average   
34    Post Sale    Claim to Insurer    % within x days of disposition    95% within 30 days    95% within 30 days          95% within 30 days   
35    Post Sale    Claim to Investor    % within x days of disposition    95% within 30 days    95% within 30 days          95% within 30 days   
36    Post Sale    Liquidation Reports    % within x days of disposition    95% within days    95% within 5 days          95% within 5 days   
37    Cash Posting    Posting of Funds (Forbearance and Bankruptcy plans)    % within x business days    95% in 2 business days    95% in 2 business days          95% in 2 business days   
38    Lien Release and Subordinations    Subordinations    % completed in x business days    95% within 15 business days    95% within 12 business days          95% within 10 business days