Appendix I-07 Form Master Agreement for Participation Accounting

GINNIE MAE 5500.3, REV. 1

Master Agreement for
Participation Accounting

D

Initial

U.S. Department of Housing
Nation Mortgage Association

Renewal

Issuer ID Number

The Issuer:

D
D

The Issuer shall perform the monitoring and accounting of pooled Participations designated in a
Schedule of Pooled Participations and Mortgages, (form HUD-11706H) for each issue of
Ginnie Mae-guaranteed mortgage-backed securities (H MBS).
The Issuer shall contract with only one third party (a Participation Agent) to perform all
monitoring and accounting activities related to pooled Participations as designated in a form
HUD-1 1 706H. Issuer’s contract with the Participation Agent is set forth below. The Issuer
agrees to monitor and evaluate the work of the Participation Agent and correct any findings or
results from any reviews.

The Issuer agrees that the Participations designated on each form HUD-11706H are to be
monitored and accounted for, whether by the Issuer or by its Participation Agent, in accordance
with the requirements set forth in the Ginnie Mae Mortgage-Backed Securities Guide. The Issuer
agrees to be responsible and liable for the monitoring and accounting for the Participations,
including any acts or omissions of its Participation Agent in connection therewith. The Issuer has
in place a quality control plan for monitoring and accounting for the Participations.
By
Nameof Issuer
d
—..I

Date

Itie

The Issuer and the Participation Agent: (if applicable)

The Agreement, dated this
a
Commonwealth of
Agent).

day of__________ 20
is by and between the Issuer and
duly formed pursuant to the laws of the State or
having a principal office at
(Participation
,

,

Whereas, the Issuer proposes to issue mortgage-backed securities guaranteed by the Government
National Mortgage Association (Ginnie Mae) pursuant to Section 306(g) of the National Housing Act;

Whereas, these securities will be based on and backed by all pools of Participations identified in the
records of Ginnie Mae by the Issuer’s ID Number and related to home equity conversion mortgages
(HECMs);

Whereas, the parties to this Agreement desire to set forth the terms and conditions for the monitoring

Date: 12/16/2013

I

Appendix 1-7

Gnsmm TvL 5500.3, REV. 1

and accounting for the Participations pooled under the Ginnie Mae Mortgage-Backed Securities
Program.
Now, therefore, in consideration of the mutual undertakings expressed in this Agreement, the parties
agree as follows:
1. The Issuer shall originate or acquire HECM 7. Upon representation to the Participation Agent
by Ginnie Mae that an Issuer default has
loans insured by the Federal Housing
Administration (FHA) pursuant to Section 255
occurred under a Guaranty Agreement
of the National Housing Act. The Issuer shall
between the Issuer and Ginnie Mae, the
create separate Participations in each HECM
Participation Agent shall comply with all Ginnie
loan in the original principal amount and with
Mae demands, including, but notlimited to, the
the terms identified and described in the form
delivery to Ginnie Mae or i1esignee of all
HUD-11706H.
records in the ParticipatioYAgent’s custody,
pertaining to Mortgages or Participations
2. For each HECM loan, the Issuer shall timely
designated
in the form HUD-11706H. Such
notify the Participation Agent of the original
demands
be in Ginnie Mae’s sole
shall
principal balance of the loan and accruals to
discretion.
the loan, as necessary, for the Participation
Agent to monitor and account for the 8. If, following such a default, Ginnie Mae elects
to assume or transfer the duties and
Participations.
obligations of the Issuer and elects to continue
3. The Participation Agent shall maintain a
services of the Participation Agent, the
the
current database indexed to cross-reference
Agent agrees to continue its
Participation
the Pool Numbers, Participation Numbers,
for Ginnie Mae for a
obligations
herein
Issuer Loan Numbers, Ginnie Mae Loan
reasonable
time
on
the same terms and
Numbers and FHA Case Numbers.
conditions set forth in this Agreement,
4. The Participation Agent shall establish such
provided that under no circumstance shall
internal controls, standards and procedures
Ginnie Mae be obligated to pay any
necessary to monitor and account for
compensation or fee for the holding or release
Participations in accordance with the
of any Participation records related to any
requirements in the Ginnie Mae MortgageHECM loan during such reasonable period. If,
Backed Securities Guide, asmended from
however, Ginnie Mae elects to terminate this
time to time. (the “Guide”) \7
Agreement, the Issuer’s Participation Agent
shall comply with this election to terminate
5. At any reasonable time,”the Participation
without charge to Ginnie Mae.
Agent shall make available, for examination
and audit by representatives of the Issuer or 9. Consideration for services to be performed by
Ginnie Mae, all records in its custody
the Participation Agent under this Agreement
pertaining to the Mortgages or Participations
be:
shall
designated in the form HUD-1 1706H.
6. Issuer and Participation Agent both agree that
this Agreement is subject to and subordinate
to the Guaranty Agreement between the Issuer
and Ginnie Mae. This Agreement is for the
benefit of, and fully enforceable by, Ginnie
Mae.
The Participation Agent agrees to
comply with the terms of the Guaranty
Agreement and the Guide.

Date: 12/16/2013

2

The Issuer is responsible for paying any
compensation or fees to the Participation
Agent. Except as provided in paragraph 8,
Ginnie Mae has no obligation to pay any
compensation or fee to the Participation
Agent.

Appendix 1-7

GINME MAE 5500.3, REV. 1

In Witness Whereof the parties duly execute this Agreement on the date reflected above:
Name of Issuer

Attest: (Signature and Title)

(Authorized Signature and Title)
Attest: (Signature and Title)

Name of Participation Agent
(Authorized Signature and Title)

Date: 12/16/2013

3

Appendix 1-7

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