Definitions

The following terms as used in the MHMFA Loan Participation Program shall have the following meanings: Adjusted Rate. Ten percent of the Conventional Rate established by MHMFA at the time Bonds are sold. The Adjusted Rate when applied to the outstanding principal of the Mortgage Loan provides Seller with a conventional rate of return on the ten percent of the Mortgage Loan owned by Seller. Applicant. A Mortgage Lender that has applied for a Commitment Amount. Bonds. Shall mean any bonds authorized by a MHMFA Resolution, issued pursuant to a series resolution and used to fund Loan Participations under this Commitment Application. Borrower(s). Shall mean, when used with respect to a Mortgage Loan, the obligor on such Mortgage Loan, including an obligor by way of assumption. Closing Date. The date, with respect to any Mortgage Loan, upon which such Mortgage Loan was closed by the Seller. Commitment Amount. The amountoffunds committed by MHMFA to a Mortgage Lender in a Notice of Acceptance, which may not exceed the amount requested by the Mortgage Lender on the Commitment Application. Commitment Application. The application by which Seller offered to enter into the Loan Participation Agreement. Commitment Fee(s). Shall be one half of one percent of the Commitment Amount. Conventional Mortgage Loan. A Mortgage Loan which is not insured by FHA mortgage insurance or guaranteed by VA. Conventional Rate. Shall be established by MHMFA no lower than the average of the rates on regular mortgages in five Massachusetts cities as published by the FederalReserve Bank of Boston in the latest issue of New England Economic Indicators published prior to the sale of Bonds. Delivery Period. Shall begin upon execution by MHMFA of the Loan Participation Agreement and end nine months thereafter. Loan Participations equal to at least 30% of the Commitment Amount are to be delivered within 90 days of such execution, at least 60% within 180 days, and the balance within 270 days. Eligibility Guide. Shall mean the guide contained in the Operations Manual, as it may be amended from time to time by MHMFA, containing requirements for Mortgage Lenders originating and servicing Mortgage Loans in which MHMFA purchases Loan Participations. 10.01: continued Escrow Payments. Payments required to be made under the terms ofa Mortgage LoanbyBorrower and to be paid into an escrow account to cover all taxes, specialassessments and mortgage insurance premiums. FHA. Shall mean the Federal Housing Administration (Department of Housing and Urban Development). FHA Mortgage Loan. Shall mean a Mortgage Loan insured by FHA under the provisions of the National Housing Act, as now and hereafter amended. (See 761 CMR 21.31). FHLMC. Federal Home Loan Mortgage Corporation. FNMA. Federal National Mortgage Association. Loan File. A file maintained by the Seller or Servicer which contains all loan documents and information required by the MHMFA Operations Manual. LoanParticipation. Shallmeanthe MHMFA's ownership interest in a Mortgage Loan, not to exceed 90% of the total outstanding principal amount of the Mortgage Loan. LoanParticipationAgreement. Shall mean that agreement entered into by MHMFA and a Mortgage Lender whereby MHMFA agrees to purchase from the Mortgage Lender Loan Participations in a specified amount. Loan Participation Certificate. The instrument used for the conveyance of a Loan Participation to MHMFA. LoanParticipationCommitment Obligation. Shall mean the obligation of MHMFA to purchase Loan Participations pursuant to a Loan Participation Agreement with a Mortgage Lender. Loan Participation Number. Anidentificationnumber assigned by MHMFA to each Loan Participation purchased. Loan Participation Submission. Those documents required by 761 CMR 21.65 to be submitted to MHMFA prior to purchase of a Loan Participation. Loan Servicing Agreement. An agreement between MHMFA and a Servicerunderwhichthe Servicer agrees to service Mortgage Loans. MHMFA. Massachusetts Home Mortgage Finance Agency. MHMFA Maximum Interest Rate. The MHMFA Minimum Interest Rate plus the Adjusted Rate. MHMFA Minimum Interest Rate. The MHMFA Required Rate plus the Servicing Fee. MHMFA Required Rate. The yield on the Bonds issued by MHMFA plusafactor to cover MHMFA operating costs, times (x) 90%. Mortgage Interest Rate. The rate of interest borne by a Mortgage Loan. Mortgage Lender. Any bank, mortgage broker, mortgage lender or mortgage banker, trust company, savings bank, credit union, national banking association, federal savings and loan association, or building and loan association maintaining an office in the Commonwealth, or any insurance company authorized to transact business in the Commonwealth. 10.01: continued Mortgage Loan. A Conventional, FHA, or VA mortgage in which a Loan Participation is sold or offered for sale to MHMFA on the security of a first lien on real estate, on which there is located a one-to-four unit residential structure or condominium unit, subject only to liens of taxes or assessments which are not delinquent, building restrictions or other restrictive covenants, conditions, or easements which do not materially affect the security of the Mortgage Loan. The maturity of such Mortgage Loan shall be no less than 20 years and no more than 30 years after the Closing Date. Neighborhood Preservation Area or NPA. Anareaorneighborhooddesignated as such by MHMFA. Notice of Acceptance. The notice from MHMFA to the Applicant of acceptance of the Commitment Application. Operations Manual. The MHMFA document containing the Eligibility Guide, the Seller's Guide and the Servicer's Guide. Purchase Date. The date upon which MHMFA shall purchase LoanParticipations fromSeller under the Loan Participation Agreement. Such date shall be the last business day of the month. Seller. A Mortgage Lender which has sold or intends to sell Loan Participations to MHMFA. Seller's Guide. The guide contained in the Operations Manual, as it may be amended from time to time by MHMFA, containing the rules governing the delivery of Loan Participations to MHMFA. Service Area. The area in which a Mortgage Lender conducts its primary home mortgage lending activities. Servicer. A Mortgage Lender which is qualified and has agreed, under a Loan Servicing Agreement, to service Mortgage Loans. Servicer's Guide. The guide contained in the Operations Manual, as it may be amended fromtime to time by MHMFA, containing the rules governing the servicing of Mortgage Loans. Servicing Fee. An annual fee equal to three eighths of one percent of the outstanding principal balance of the Mortgage Loan. Trustee. Shall mean the bank or trust company appointed as trustee under the MHMFA bond resolution. VA. Veterans Administration. VA Mortgage Loan. Any Mortgage Loan guaranteed by the VA under the provisions of the Servicemen's Readjustment Act of 1944, or Chapter 37 of title 38 of the United States Code, as now and hereafter amended. Value of Property. Shall mean (a) in the case of a Mortgage Loan for the purchase of a one-to-four unit structure (no rehabilitation costs included), the purchase price or the appraised value whichever is less or (b) in the case of a Mortgage Loan part or all of which is financing rehabilitation costs, the estimated appraised value at the completion of the proposed improvements.