Escrow Payment Requirements

Each Mortgage Loan shall provide for the monthly collection of Escrow Payments to the maximum extent permitted (except that the collection of Escrow Payments for hazard insurance premiums is not required) by the Real Estate Settlement Procedures Act, as amended, along with the monthly installment of interest and principal. The Escrow Payments shall be held in trust for the benefit of Borrower, Seller and MHMFA, in an account in a bank or trust company, savings bank, national banking association, savings and loanassociation, cooperative bank, or credit union (which may be the Seller) insured to the fullest extent legally possible. In the case of default of any Escrow Payment due, the Mortgage Loan shall provide that, with or without notice or demand of the Borrower, the Seller shall pay the amount due on property taxes, mortgage insurance premiums, or other applicable assessments. Such payments shallbe a lienon the mortgaged property added to the amount of the Mortgage Loan and payable on demand with interest (at the rate applicable under the Mortgage Loan) from the time of payment.