Pennsylvania Pooling and Servicing Agreement contemplating the sale of mortgage loans to Trustee for inclusion in the Trust Fund by the company

• Category: Real Estate - Mortgages and Deeds of Trust
• State: Multi-State
• Control #: US-EG-9219
• Format: Word; Rich Text

Description

Pooling and Servicing Agreement between MLCC Mortgage Investors, Inc., Merrill Lynch Credit Corporation and Bankers Trust Company of California, NA contemplating the sale of mortgage loans to Trustee for inclusion in the Trust Fund by the company dated A Pennsylvania Pooling and Servicing Agreement (PSA) is a legal document that outlines the terms and conditions for the sale and servicing of mortgage loans by a company to a Trustee for inclusion in a Trust Fund. This agreement is commonly used in the securitization of mortgage loans, where the loans are bundled together and sold to investors in the form of mortgage-backed securities. The main purpose of a PSA is to establish the rights and responsibilities of all parties involved in the securitization process, including the company originating the loans, the Trustee responsible for managing the Trust Fund, and the investors who purchase the mortgage-backed securities. The PSA ensures that all parties adhere to the agreed-upon terms to protect the interests of investors and maintain compliance with legal and regulatory requirements. The Pennsylvania Pooling and Servicing Agreement typically includes the following key provisions: 1. Loan Pool: The PSA specifies the mortgage loans that will be included in the Trust Fund, along with the criteria for loan eligibility (e.g., credit score, loan-to-value ratio, occupancy status). It may also define various loan categories, such as fixed-rate loans, adjustable-rate loans, or government-backed loans, depending on the specific agreement. 2. Transfer of Mortgage Loans: The agreement outlines the process and requirements for transferring the mortgage loans from the company to the Trustee. This includes the delivery of loan documents, endorsements, and other necessary paperwork. 3. Servicing Rights: The PSA details the rights and obligations of the company or a designated loan service to collect loan payments, handle borrower inquiries, and manage loan administration on behalf of the Trustee and investors. It will also highlight requirements related to the reserve accounts for escrow, late payments, and default servicing. 4. Cash Flow Allocation: The agreement defines how the cash flows generated from the mortgage loans (e.g., principal and interest payments) will be allocated among the various tranches of the mortgage-backed securities issued by the Trust Fund. It also specifies any waterfall structures, priority of payments, and distribution methodologies. 5. Representations and Warranties: PSA includes representations and warranties made by the company regarding the characteristics and quality of the mortgage loans being sold, as well as any ongoing obligations to repurchase or substitute loans that do not meet the agreed-upon criteria. 6. Events of Default and Remedies: The agreement outlines the events that could lead to a default under the PSA, such as non-compliance with representations, failure to remit cash flows, or bankruptcy. It specifies the rights and remedies available to the Trustee and investors in the case of default, including potential termination of the agreement. Different types of Pennsylvania Pooling and Servicing Agreements contemplating the sale of mortgage loans to a Trustee for inclusion in a Trust Fund may be customized based on the specific asset-backed securities transactions or the preferences and requirements of the parties involved. These variations can include specific provisions related to loan types, geographic regions, or specific underwriting criteria and risk factors. However, the general structure and purpose of the PSA remain consistent across different types and variations.

A Pennsylvania Pooling and Servicing Agreement (PSA) is a legal document that outlines the terms and conditions for the sale and servicing of mortgage loans by a company to a Trustee for inclusion in a Trust Fund. This agreement is commonly used in the securitization of mortgage loans, where the loans are bundled together and sold to investors in the form of mortgage-backed securities. The main purpose of a PSA is to establish the rights and responsibilities of all parties involved in the securitization process, including the company originating the loans, the Trustee responsible for managing the Trust Fund, and the investors who purchase the mortgage-backed securities. The PSA ensures that all parties adhere to the agreed-upon terms to protect the interests of investors and maintain compliance with legal and regulatory requirements. The Pennsylvania Pooling and Servicing Agreement typically includes the following key provisions: 1. Loan Pool: The PSA specifies the mortgage loans that will be included in the Trust Fund, along with the criteria for loan eligibility (e.g., credit score, loan-to-value ratio, occupancy status). It may also define various loan categories, such as fixed-rate loans, adjustable-rate loans, or government-backed loans, depending on the specific agreement. 2. Transfer of Mortgage Loans: The agreement outlines the process and requirements for transferring the mortgage loans from the company to the Trustee. This includes the delivery of loan documents, endorsements, and other necessary paperwork. 3. Servicing Rights: The PSA details the rights and obligations of the company or a designated loan service to collect loan payments, handle borrower inquiries, and manage loan administration on behalf of the Trustee and investors. It will also highlight requirements related to the reserve accounts for escrow, late payments, and default servicing. 4. Cash Flow Allocation: The agreement defines how the cash flows generated from the mortgage loans (e.g., principal and interest payments) will be allocated among the various tranches of the mortgage-backed securities issued by the Trust Fund. It also specifies any waterfall structures, priority of payments, and distribution methodologies. 5. Representations and Warranties: PSA includes representations and warranties made by the company regarding the characteristics and quality of the mortgage loans being sold, as well as any ongoing obligations to repurchase or substitute loans that do not meet the agreed-upon criteria. 6. Events of Default and Remedies: The agreement outlines the events that could lead to a default under the PSA, such as non-compliance with representations, failure to remit cash flows, or bankruptcy. It specifies the rights and remedies available to the Trustee and investors in the case of default, including potential termination of the agreement. Different types of Pennsylvania Pooling and Servicing Agreements contemplating the sale of mortgage loans to a Trustee for inclusion in a Trust Fund may be customized based on the specific asset-backed securities transactions or the preferences and requirements of the parties involved. These variations can include specific provisions related to loan types, geographic regions, or specific underwriting criteria and risk factors. However, the general structure and purpose of the PSA remain consistent across different types and variations.