as Issuer
as Depositor
as Loan Originator and Servicer
as Indenture Trustee
MORTGAGE-BACKED NOTES
Page | ||||||||
ARTICLE I DEFINITIONS | 6 | |||||||
Section 1.01 | Definitions | 6 | ||||||
Section 1.02 | Other Definitional Provisions | 31 | ||||||
ARTICLE II CONVEYANCE OF THE TRUST ESTATE; ADDITIONAL NOTE PRINCIPAL BALANCES | 32 | |||||||
Section 2.01 | Conveyance of the Trust Estate; Additional Note Principal Balances | 32 | ||||||
Section 2.02 | Ownership and Possession of Loan Files | 33 | ||||||
Section 2.03 | Books and Records; Intention of the Parties | 34 | ||||||
Section 2.04 | Delivery of Loan Documents | 35 | ||||||
Section 2.05 | Acceptance by the Indenture Trustee of the Loans; Certain Substitutions and Repurchases; Certification by the Custodian | 35 | ||||||
Section 2.06 | Conditions to Transfer | 37 | ||||||
Section 2.07 | Termination of Revolving Period | 39 | ||||||
Section 2.08 | Correction of Errors | 40 | ||||||
ARTICLE III REPRESENTATIONS AND WARRANTIES | 40 | |||||||
Section 3.01 | Representations and Warranties of the Depositor | 40 | ||||||
Section 3.02 | Representations and Warranties of the Loan Originator | 42 | ||||||
Section 3.03 | Representations, Warranties and Covenants of the Servicer | 45 | ||||||
Section 3.04 | Reserved | 47 | ||||||
Section 3.05 | Representations and Warranties Regarding Loans | 47 | ||||||
Section 3.06 | Purchase and Substitution | 48 | ||||||
Section 3.07 | Dispositions | 50 | ||||||
Section 3.08 | Servicer Put; Servicer Call | 53 | ||||||
Section 3.09 | Modification of Underwriting Guidelines | 53 | ||||||
ARTICLE IV ADMINISTRATION AND SERVICING OF THE LOANS | 54 | |||||||
Section 4.01 | Servicer’s Servicing Obligations | 54 | ||||||
Section 4.02 | Financial Statements | 54 | ||||||
ARTICLE V ESTABLISHMENT OF TRUST ACCOUNTS; TRANSFER OBLIGATION | 55 | |||||||
Section 5.01 | Collection Account and Distribution Account | 55 | ||||||
Section 5.02 | Payments to Securityholders | 59 | ||||||
Section 5.03 | Trust Accounts; Trust Account Property | 60 | ||||||
Section 5.04 | Advance Account | 62 | ||||||
Section 5.05 | Transfer Obligation Account | 63 | ||||||
Section 5.06 | Transfer Obligation | 64 |
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Page | ||||||||
ARTICLE VI STATEMENTS AND REPORTS; SPECIFICATION OF TAX MATTERS | 65 | |||||||
Section 6.01 | Statements | 65 | ||||||
Section 6.02 | Specification of Certain Tax Matters | 68 | ||||||
Section 6.03 | Valuation of Loans, Hedge Value and Retained Securities Value; Market Value Agent | 68 | ||||||
ARTICLE VII HEDGING; FINANCIAL COVENANTS | 69 | |||||||
Section 7.01 | Hedging Instruments | 69 | ||||||
Section 7.02 | Financial Covenants | 70 | ||||||
ARTICLE VIII THE SERVICER | 71 | |||||||
Section 8.01 | Indemnification; Third Party Claims | 71 | ||||||
Section 8.02 | Merger or Consolidation of the Servicer | 73 | ||||||
Section 8.03 | Limitation on Liability of the Servicer and Others | 73 | ||||||
Section 8.04 | Servicer Not to Resign; Assignment | 73 | ||||||
Section 8.05 | Relationship of Servicer to Issuer and the Indenture Trustee | 74 | ||||||
Section 8.06 | Servicer May Own Securities | 74 | ||||||
Section 8.07 | Indemnification of the Indenture Trustee and the Noteholder Agent | 74 | ||||||
ARTICLE IX SERVICER EVENTS OF DEFAULT | 75 | |||||||
Section 9.01 | Servicer Events of Default | 75 | ||||||
Section 9.02 | Appointment of Successor | 77 | ||||||
Section 9.03 | Waiver of Defaults | 78 | ||||||
Section 9.04 | Accounting Upon Termination of Servicer | 78 | ||||||
ARTICLE X TERMINATION; PUT OPTION | 79 | |||||||
Section 10.01 | Termination | 79 | ||||||
Section 10.02 | Optional Termination | 79 | ||||||
Section 10.03 | Notice of Termination | 80 | ||||||
Section 10.04 | Put Option | 80 | ||||||
ARTICLE XI MISCELLANEOUS PROVISIONS | 80 | |||||||
Section 11.01 | Acts of Securityholders | 80 | ||||||
Section 11.02 | Amendment | 80 | ||||||
Section 11.03 | Recordation of Agreement | 81 | ||||||
Section 11.04 | Duration of Agreement | 81 | ||||||
Section 11.05 | Governing Law | 81 | ||||||
Section 11.06 | Notices | 82 | ||||||
Section 11.07 | Severability of Provisions | 82 | ||||||
Section 11.08 | No Partnership | 82 | ||||||
Section 11.09 | Counterparts | 83 |
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Page | ||||||||
Section 11.10 | Successors and Assigns | 83 | ||||||
Section 11.11 | Headings | 83 | ||||||
Section 11.12 | Actions of Securityholders | 83 | ||||||
Section 11.13 | Non-Petition Agreement | 83 | ||||||
Section 11.14 | Holders of the Securities | 84 | ||||||
Section 11.15 | Due Diligence Fees, Due Diligence | 84 | ||||||
Section 11.16 | No Reliance | 85 | ||||||
Section 11.17 | Confidential Information | 85 | ||||||
Section 11.18 | Conflicts | 86 | ||||||
Section 11.19 | Limitation on Liability | 86 | ||||||
Section 11.20 | No Agency | 87 |
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EXHIBITS |
EXHIBIT A Form of Notice of Additional Note Principal Balance |
EXHIBIT B Form of Servicer’s Remittance Report to Indenture Trustee |
EXHIBIT C Form of S&SA Assignment |
EXHIBIT D Loan Schedule |
EXHIBIT E Representations and Warranties Regarding the Loans |
EXHIBIT F Servicing Addendum |
EXHIBIT G Capital Adequacy Test |
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Section 1.02 | Other Definitional Provisions. |
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Section 2.01 | Conveyance of the Trust Estate; Additional Note Principal Balances. |
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Section 2.02 | Ownership and Possession of Loan Files. |
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Section 2.03 | Books and Records; Intention of the Parties. |
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Section 2.04 | Delivery of Loan Documents. |
Section 2.05 | Acceptance by the Indenture Trustee of the Loans; Certain Substitutions and Repurchases; Certification by the Custodian. |
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Section 2.06 | Conditions to Transfer. |
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Section 2.07 | Termination of Revolving Period. |
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Section 2.08 | Correction of Errors. |
Section 3.01 | Representations and Warranties of the Depositor. |
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Section 3.02 | Representations and Warranties of the Loan Originator. |
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Section 3.03 | Representations, Warranties and Covenants of the Servicer. |
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Section 3.04 | Reserved. |
Section 3.05 | Representations and Warranties Regarding Loans. |
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Section 3.06 | Purchase and Substitution. |
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Section 3.07 | Dispositions. |
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Section 3.08 | Servicer Put; Servicer Call. |
Section 3.09 | Modification of Underwriting Guidelines. |
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Section 4.01 | Servicer’s Servicing Obligations. |
Section 4.02 | Financial Statements. |
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Section 5.01 | Collection Account and Distribution Account. |
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Section 5.02 | Payments to Securityholders. |
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Section 5.03 | Trust Accounts; Trust Account Property. |
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Section 5.04 | Advance Account. |
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Section 5.05 | Transfer Obligation Account. |
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Section 5.06 | Transfer Obligation. |
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Section 6.01 | Statements. |
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Section 6.02 | Specification of Certain Tax Matters. |
Section 6.03 | Valuation of Loans, Hedge Value and Retained Securities Value; Market Value Agent. |
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Section 7.01 | Hedging Instruments. |
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Section 7.02 | Financial Covenants. |
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Section 8.01 | Indemnification; Third Party Claims. |
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Section 8.02 | Merger or Consolidation of the Servicer. |
Section 8.03 | Limitation on Liability of the Servicer and Others. |
Section 8.04 | Servicer Not to Resign; Assignment. |
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Section 8.05 | Relationship of Servicer to Issuer and the Indenture Trustee. |
Section 8.06 | Servicer May Own Securities. |
Section 8.07 | Indemnification of the Indenture Trustee and the Noteholder Agent. |
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Section 9.01 | Servicer Events of Default. |
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Section 9.02 | Appointment of Successor. |
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Section 9.03 | Waiver of Defaults. |
Section 9.04 | Accounting Upon Termination of Servicer. |
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Section 10.01 | Termination. |
Section 10.02 | Optional Termination. |
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Section 10.03 | Notice of Termination. |
Section 10.04 | Put Option. |
Section 11.01 | Acts of Securityholders. |
Section 11.02 | Amendment. |
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Section 11.03 | Recordation of Agreement. |
Section 11.04 | Duration of Agreement. |
Section 11.05 | Governing Law. |
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Section 11.06 | Notices. |
Section 11.07 | Severability of Provisions. |
Section 11.08 | No Partnership. |
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Section 11.09 | Counterparts. |
Section 11.10 | Successors and Assigns. |
Section 11.11 | Headings. |
Section 11.12 | Actions of Securityholders. |
Section 11.13 | Non-Petition Agreement. |
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Section 11.14 | Holders of the Securities. |
Section 11.15 | Due Diligence Fees, Due Diligence. |
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Section 11.16 | No Reliance. |
Section 11.17 | Confidential Information. |
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Section 11.18 | Conflicts. |
Section 11.19 | Limitation on Liability. |
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Section 11.20 | No Agency. |
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OPTION ONE OWNER TRUST 2005-6, | ||||||||
By: | Wilmington Trust Company not in its individual capacity but solely as Owner Trustee | |||||||
By: | ||||||||
Name: | ||||||||
Title: | ||||||||
OPTION ONE LOAN WAREHOUSE CORPORATION, as Depositor | ||||||||
By: | ||||||||
Name: | ||||||||
Title: | ||||||||
OPTION ONE MORTGAGE CORPORATION, as Loan Originator and Servicer | ||||||||
By: | ||||||||
Name: | ||||||||
Title: | ||||||||
WELLS FARGO BANK, N.A., as Indenture Trustee | ||||||||
By: | ||||||||
Name: | ||||||||
Title: |
[Date] |
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
Attention: Corporate Trust Administration
9062 Old Annapolis Road
Columbia, Maryland 21045
Attention: Option One Owner Trust 2005-6
745 Seventh Avenue
New York, New York 10019
Very truly yours, | ||||
OPTION ONE LOAN WAREHOUSE | ||||
CORPORATION | ||||
By: | ||||
Name: | ||||
Title: | ||||
A-1
Next | ||||||||||||||||
Investor | Pymt | Interest | P&I | Principal | ||||||||||||
Investor # | Category | Loan # | Loan # | Borrower Name | Date | Rate | Pymt | Balance | ||||||||
Pymt | ||||||||||||||||||||||||||||
Investor | Transaction | Due | Service | Net | Total | Principal | ||||||||||||||||||||||
Investor # | Category | Loan # | Loan # | Date | Paymt # | Date | Escrow | Principal | Interest | Fees | Interest | Deposit | Balance | Late Charges | ||||||||||||||
Next | ||||||||||||||||||||||||||||
Investor | Date | Interest | Service Fee | Pymt | Service | Net | Prepay | Total | ||||||||||||||||||||
Investor # | Category | Loan # | Loan # | Paid | P&I Pymt | Rate | Rate | Date | Principal | Interest | Fees | Interest | Premium | Collected | ||||||||||||||
B-1
C-1
C-2
OPTION ONE LOAN WAREHOUSE CORPORATION, | ||||
as Depositor | ||||
By: | ||||
Name: | ||||
Title: | ||||
OPTION ONE OWNER TRUST 2005-6, | ||||
as Issuer | ||||
By: Wilmington Trust Company not in its individual capacity but solely as Owner Trustee | ||||
By: | ||||
Name: | ||||
Title: |
C-3
(1) | the Loan Originator’s Loan identifying number; | ||
(2) | the Mortgagor’s name and social security number; | ||
(3) | the street address of the Mortgaged Property, including the state and zip code; | ||
(4) | the Promissory Note date; | ||
(5) | the occupancy status of the Mortgaged Property and a code indicating whether the Mortgaged Property was represented by the Mortgagor as being owner-occupied on the date of origination; | ||
(6) | the type of Residential Dwelling constituting the Mortgaged Property; | ||
(7) | the months to maturity at origination, based on the original amortization schedule; | ||
(8) | the loan-to-value ratio at origination; | ||
(9) | the rate of interest in effect on the Transfer Cut-off Date; | ||
(10) | the date on which the first monthly payment was due, and, if different, the date on which monthly payments are due as of the Transfer Cut-off Date; | ||
(11) | the amount paid-through date and the next payment date; | ||
(12) | the stated maturity date; | ||
(13) | the amount of the monthly payment due at origination; | ||
(14) | the amount of the principal and interest payment due on the first due date after the Transfer Cut-off Date; | ||
(15) | the interest paid-through date; | ||
(16) | the last monthly payment date on which any portion of the monthly payment was applied to the reduction of principal; | ||
(17) | the original principal balance; | ||
(18) | the unpaid principal balance as of the close of business on the Transfer Cut-off Date; | ||
(19) | the unpaid principal balance as of the last day of the immediately preceding month; | ||
(20) | a code indicating whether the interest rate on the Loan is fixed or adjustable; | ||
(21) | if the Loan is an adjustable-rate loan, the initial adjustment date thereunder, including the look-back period; | ||
(22) | if the Loan is an adjustable-rate loan, the gross margin over the applicable interest rate index; | ||
(23) | a code indicating the purpose of the Loan, as indicated by the Mortgagor (i.e.,purchase financing, rate/term refinancing or cash-out refinancing); | ||
(24) | (if the Loan is an adjustable-rate loan, the maximum interest rate; | ||
(25) | if the Loan is an adjustable-rate loan, the minimum interest rate; | ||
(26) | if the Loan is an adjustable-rate loan, the index, [ARM code], adjustment frequency, spread and caps; |
D-1
(27) | the interest rate at origination; | ||
(28) | if the Loan is an adjustable-rate loan, the periodic rate cap and the maximum adjustment in the interest rate that may be made on the first adjustment date immediately following the Transfer Cut-off Date; | ||
(29) | a code indicating the documentation program (i.e.,full documentation, limited documentation or stated income); | ||
(30) | if the Loan is an adjustable-rate loan, the applicable interest rate index to which the gross margin is added, including the source of such index; | ||
(31) | if the Loan is an adjustable-rate loan, the first adjustment date thereunder to occur after the Transfer Cut-off Date; | ||
(32) | the risk grade; | ||
(33) | any risk upgrade; | ||
(34) | the appraised value of the Mortgaged Property at origination; | ||
(35) | if different from the appraised value, the dollar value of the review appraisal of the Mortgaged Property at origination; | ||
(36) | the sale price of the Mortgaged Property, if applicable; | ||
(37) | the product type code (e.g., 3/27, 2/28, balloon, etc.); | ||
(38) | a code indicating whether the Loan is a first-lien loan or a second-lien loan; | ||
(39) | if the Loan is a second-lien loan, the outstanding principal balance of the first lien on the date of origination of such Loan and the monthly payment and maturity date of the first-lien loan; | ||
(40) | if the Loan is a second-lien loan, the combined loan-to-value ratio of such Loan and the first lien to which it is subject, as of the origination date of such Loan; | ||
(41) | whether such Loan is 30 days or more Delinquent; | ||
(42) | the prepayment penalty code; | ||
(43) | the prepayment penalty term; | ||
(44) | the late charge; | ||
(45) | the rounding code (next highest or nearest 0.125%); | ||
(46) | the applicable loan grade and the Mortgagor’s FICO score, if any; and | ||
(47) | the Mortgagor’s debt-to-income ratio. |
D-2
Start | length/ | End | ||||||||||||||||
Field | Pos | width | Pos | Dec | Definition | |||||||||||||
Loanidp | 1 | 13 | 13 | 0 | Previous loan number/(Old loan number or Investor loan number) | |||||||||||||
Lname | 14 | 35 | 48 | 0 | Primary borrower’s name/(Last, First Middle) | |||||||||||||
Casenum | 49 | 13 | 61 | 0 | FHA or VA case number | |||||||||||||
Closed | 62 | 6 | 67 | 0 | Date the loan closed/(mmddyy) | |||||||||||||
Firstdue | 68 | 6 | 73 | 0 | Date first pymt on loan was due/(mmddyy) | |||||||||||||
Issuer | 74 | 4 | 77 | 0 | User defined issuer code/(leave blank —pad with spaces) | |||||||||||||
Loanid | 78 | 13 | 90 | 0 | Loan number/(Servicer loan number) | |||||||||||||
Maturity | 91 | 6 | 96 | 0 | Maturity date of the loan/(mmddyy) | |||||||||||||
Rate | 97 | 9 | 105 | 0 | Interest rate on note/(X 1000 to remove decimal (7.125% is 7125) | |||||||||||||
Lnamount | 10611 | 116 | 0 | Original loan amount/(X 100 to remove decimal (100000.00 is 1000000) | ||||||||||||||
PI | 11710 | 126 | 0 | Orig principal plus interest/(X 100 to remove decimal (1000.00 is 100000) | ||||||||||||||
Poolnum | 12710 | 136 | 0 | Pool number/(Agency pool number or private investor code — CPI) | ||||||||||||||
State | 1372 | 138 | 0 | Property State abbreviation/(e.g., NY) | ||||||||||||||
City | 13915 | 153 | 0 | Property City | ||||||||||||||
Zip | 1545 | 158 | 0 | Property Zip code | ||||||||||||||
Address | 15935 | 193 | 0 | Property address/(Number and street name) | ||||||||||||||
Sid | 19423 | 216 | 0 | Barcode ID(leave blank —pad with spaces) | ||||||||||||||
Armadj | 2176 | 222 | 0 | 1st Adjustment Date(mmddyy) | ||||||||||||||
Armconv | 2231 | 223 | 0 | Convertible Account(Y/N) | ||||||||||||||
Armround | 2246 | 229 | 0 | Percent Rounded(X 100000 to remove decimal (7.12500% is 712500) | ||||||||||||||
Armacap | 2305 | 234 | 0 | Annual Cap(X 1000 to remove decimal (10.125% is 10125) | ||||||||||||||
Armlcap | 2355 | 239 | 0 | Lifetime Cap(X 1000 to remove decimal (10.125% is 10125) | ||||||||||||||
Armmargin | 2404 | 243 | 0 | Margin(X 1000 to remove decimal (7.125% is 7125) |
D-3
Start | length/ | End | ||||||||||||||||
Field | Pos | width | Pos | Dec | Definition | |||||||||||||
Armfloor | 2445 | 248 | 0 | Floor(X 1000 to remove decimal (10.125% is 10125) | ||||||||||||||
Mersmin | 24918 | 266 | 0 | Mers Min | ||||||||||||||
Mersflag | 2671 | 267 | 0 | Mersflag | ||||||||||||||
Filler | 268 | 33 | 300 | 0 | Filler field/(Pad with spaces) |
D-4
E-1
E-2
E-3
E-4
E-5
E-6
E-7
E-8
F-1
F-2
F-3
F-4
F-5
F-6
F-7
F-8
F-9
F-10
F-11
F-12
F-13
F-14
HRB TEST | Balance Sheet | Required Capital | ||||||||||
Unrestricted Cash and Equivalents | 0 | % | ||||||||||
Restricted Cash | 0 | % | ||||||||||
Loans Held for Sale | 9 | % | ||||||||||
Servicing Advances | 10 | % | ||||||||||
Beneficial Interests in trusts | 10 | % | ||||||||||
Subprime Mortgage NIM Residual Interest | 60 | % | ||||||||||
Real Estate Held for Sale | 10 | % | ||||||||||
Furniture and Equipment | 0 | % | ||||||||||
Mortgage Servicing Rights | 25 | % | ||||||||||
Prepaid Expenses and Other Assets | 10 | % | ||||||||||
Accrued interest receivable | 10 | % | ||||||||||
Receivable from H&R Block | 0 | % | ||||||||||
Intangibles and goodwill | 100 | % | ||||||||||
Deferred Tax Assets | 10 | % | ||||||||||
Derivative Assets | 10 | % | ||||||||||
Total Required Capital |
F-15