Residential Mortgage Loan Agreement

RESIDENTIAL MORTGAGE LOAN AGREEMENT

This Residential Mortgage Loan Agreement (the "Agreement") is made as of by and between Lender Name: , with a principal address at , and Borrower Name: , with a principal address at .

RECITALS

WHEREAS, Lender agrees to make and Borower agrees to borrow a residential mortgage loan upon the terms and subject to the conditions set forth in this Agreement;

WHEREAS, the loan will be secured by a mortgage, deed of trust, or similar security instrument encumbering the real property commonly known and addressed as , with the legal description set forth below;

WHEREAS, the parties desire to set forth their agreement concerning the principal amount, interest, repayment, security, remedies upon default, and other rights and obligations;

NOW, THEREFORE

In consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. LOAN

1.1 Principal Amount. Lender shall loan to Borrower the principal sum of $ (the "Loan"). The Loan shall be evidenced by a promissory note executed by Borrower and secured by a mortgage or deed of trust encumbering the Property.

2. INTEREST; TERM; PAYMENTS

2.1 Interest Rate. The unpaid principal balance of the Loan shall accrue interest at a rate equal to per annum, computed on the basis of a 365/365 day year or as otherwise provided in the Note.

2.2 Term and Payments. The Loan shall have a term of years. Borrower shall make monthly payments of principal and interest in the amount of $ , commencing on and thereafter on the day of each month. Payments shall be applied first to accrued interest, then to principal, and then to other charges in accordance with the Note and applicable law.

3. SECURITY INSTRUMENT

3.1 Grant of Security. As security for the prompt payment and performance of Borrower's obligations under the Note and this Agreement, Borrower hereby grants, bargains, conveys and mortgages to Lender a first priority security interest and lien in and to the real property described below (the "Property"), together with all improvements, fixtures, rights, easements and appurtenances.

3.2 Recording. Borrower shall execute and deliver such mortgage, deed of trust, or other security instrument as required by Lender for recording in the public land records of County, State of . Borrower shall promptly pay any recording fees and transfer taxes required by law.

4. BORROWER REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants to Lender that: (a) Borrower is the lawful owner of the Property and has full power and authority to grant the security interest; (b) there are no outstanding liens, judgments or encumbrances other than those disclosed in writing to Lender; (c) all information provided to Lender in connection with the Loan is true, complete and correct in all material respects; and (d) Borrower's execution, delivery and performance of this Agreement and the Security Instrument do not violate any agreement or legal obligation binding on Borrower.

5. BORROWER COVENANTS

Borrower covenants to: (a) maintain the Property in good repair and not commit or permit waste; (b) comply with all laws and regulations affecting the Property; (c) pay when due all taxes, assessments, and other charges affixed to or levied upon the Property, except to the extent paid by Lender pursuant to any escrow arrangement; and (d) keep the Property insured against loss by fire and other hazards in amounts and with insurers reasonably acceptable to Lender, naming Lender as mortgagee or loss payee as its interest may appear.

6. ESCROW

6.1 Escrow for Taxes and Insurance. Lender may, in its sole discretion and as required by law or underwriting guidelines, require an escrow account to collect and pay property taxes, insurance premiums, and other items customarily escrowed. To indicate escrow requirement: Escrow required

7. DEFAULT; REMEDIES

7.1 Events of Default. Each of the following shall constitute an Event of Default: (a) failure to make any payment when due under the Note or this Agreement; (b) failure to perform any covenant, agreement or obligation contained in the Note, this Agreement, or the Security Instrument; (c) Borrower's insolvency or commencement of bankruptcy proceedings; or (d) any representation or warranty by Borrower proving to have been false or misleading in any material respect when made.

7.2 Remedies. Upon the occurrence of an Event of Default, Lender shall have all rights and remedies provided under the Note, the Security Instrument and applicable law, including acceleration of the entire unpaid principal balance, foreclosure, entry upon the Property to protect Lender's interest, and collection of costs, expenses and reasonable attorneys' fees.

7.3 Default Interest. Upon default, at Lender's election and to the extent permitted by law, interest shall accrue on the unpaid principal balance at the default interest rate of per annum above the regular interest rate.

8. TAXES, INSURANCE, AND MAINTENANCE

Borrower shall pay all taxes and assessments on the Property and maintain hazard insurance as required by Lender. If Borrower fails to pay taxes or maintain insurance, Lender may pay such amounts or procure such insurance and charge Borrower for the cost, which shall become additional indebtedness secured by the Security Instrument.

9. PREPAYMENT

Borrower may prepay the Loan in whole or in part at any time without penalty unless a prepayment penalty is elected below. Prepayment shall be applied to accrued interest and then to principal. To indicate whether prepayment penalty applies: Prepayment permitted without penalty Prepayment penalty applies

10. LATE CHARGES

If any payment required under the Note is not paid within days after its due date, Borrower shall pay a late fee equal to $ or of the overdue amount, whichever is less, to the extent permitted by applicable law.

11. NOTICES

All notices required or permitted under this Agreement shall be in writing and shall be given to the addresses set forth below (or such other address as a party may designate by written notice). Notices shall be delivered by hand, nationally recognized overnight courier, certified mail (return receipt requested), or other method providing proof of delivery.

12. ASSIGNMENT

Lender may assign its rights and obligations under this Agreement and the Note without the consent of Borrower. Borrower may not assign its obligations under the Note or this Agreement without the prior written consent of Lender, except as otherwise permitted by applicable law or the Security Instrument.

13. GOVERNING LAW

This Agreement, the Note and the Security Instrument shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of law principles.

14. ENTIRE AGREEMENT; SEVERABILITY

This Agreement, together with the Note and the Security Instrument, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. If any provision of this Agreement is held invalid or unenforceable under applicable law, such provision shall be ineffective only to the extent of such invalidity and the remaining provisions shall remain in full force and effect.

15. AMENDMENT; WAIVER; COUNTERPARTS

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in a writing signed by the party against whom enforcement is sought. No waiver by any party of any breach or default shall operate as a waiver of any subsequent breach or default. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

16. ATTORNEYS' FEES AND COSTS

If either party brings any action to enforce the terms of this Agreement or collect any amounts due hereunder, the prevailing party shall be entitled to recover from the non-prevailing party all reasonable costs and expenses, including attorneys' fees, court costs and other related expenses, to the extent permitted by applicable law.

17. MISCELLANEOUS PROVISIONS

Time is of the essence with respect to Borrower's performance of its obligations under this Agreement. The headings used in this Agreement are for convenience only and shall not affect the interpretation of any provision hereof. All obligations of Borrower under this Agreement shall survive the expiration or termination of this Agreement to the extent necessary to enforce such obligations.

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