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HomeMy WebLinkAbout09-0259Harvey Freedenberg I.D. No. 23152 Kimberly A. Selemba I.D. No. 93535 McNees Wallace & Nurick LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 232-8000 SUPERIOR MORTGAGE CORP., Plaintiff V. MARK E. HILBERT & ASSOCIATES, Defendant Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. OQ -- 025 CIVIL ACTION -LAW (210?C_7? NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 717-249-3166 800-990-9108 •41'1 tlxp ?? F '-? ??: ?? s pL (V? P'1 4=r; q James L. Goldsmith, Esquire Attorney I.D. No. 27115 Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 (717) 232-2766 (fax) joldsmith@caldwellkearns.com Attorneys for Defendant Mark E. Hilbert & Associates SUPERIOR MORTGAGE CORP., Plaintiff, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. MARK E. HILBERT & ASSOCIATES, Defendant NO. 09-259 CIVIL TERM CIVIL ACTION - LAW MOTION OF DEFENDANT, MARK E. HILBERT & ASSOCIATES. TO EXTEND CASE MANAGEMENT DEADLINES AND NOW, comes the Defendant, Mark E. Hilbert & Associates, by and through their attorneys, Caldwell & Kearns, and files the within Motion to Extend Case Management Deadlines and in support thereof avers the following: 1. Plaintiff, Superior Mortgage Corp. ("Plaintiff') commenced this action by filing a Complaint on January 20, 2009, against Defendant, Mark E. Hilbert & Associates ("Defendant"). 06241-019186223 2. On or about February 18, 2009, the undersigned entered his appearance on behalf of Defendant. Shortly thereafter, this matter was reassigned internally. 3. The undersigned has not participated in the defense of this action for almost three years. 4. Jeffrey McGuire, Esquire, previously of Caldwell & Kearns, had been actively handling this matter. Mr. McGuire has very recently departed from Caldwell & Kearns. 5. The undersigned has now resumed the defense of this action. 6. A brief review of the voluminous documents contained within the file reveals the necessity of additional discovery. 7. On December 6, 2011, this Honorable Court issued an Order setting forth case management deadlines. Specifically, discovery was ordered to be completed by January 27, 2012. 8. Due to the above-referenced sequence of events, defense counsel believes it will be impossible to comply with the current discovery deadline while effectively representing Defendant's best interests. 9. In addition, defense counsel is scheduled for several trials within the next few months. 10. No party to this action will be prejudiced by extending the case management deadlines. To the contrary, Defendant feels he will be prejudiced if the current deadlines are not extended. 11. Counsel for Plaintiff concurs with this request. 12. The parties will endeavor to formulate a mutually agreeable revised case 06241-019186223 management plan that accommodates the schedules of all counsel. 13. The parties have agreed to ask this Honorable Court for assistance if they are unable to promptly formulate a mutually agreeable revised case management plan. WHEREFORE, Defendant, Mark E. Hilbert & Associates, respectfully requests this Honorable Court grant this Motion to Extend Case Management Deadlines. Respectfully submitted, Date: ?. i By: Ja s L. Gold!prh ith Esquire rney I. D. No. 115 Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 (717) 232-2766 (fax) jgoldsmith@caldwellkearns.com Attorneys for Mark E. Hilbert & Associates 06241-0191186223 CERTIFICATE OF SERVICE AND NOW, this day of J-W , 2012, 1 hereby certify that I have served a copy of the within document on the following by depositing a true and correct copy of the same in the U.S. Mail at Harrisburg, Pennsylvania, postage prepaid, addressed to: Kimberly A. Selemba, Esquire McNees Wallace & Nurick, LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 By: 06241-0191186223 Harvey Freedenberg I.D. No. 23152 Kimberly A. Selemba I.D. No. 93535 McNees Wallace & Nurick LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 232-8000 SUPERIOR MORTGAGE CORP., Plaintiff V. MARK E. HILBERT & ASSOCIATES, Defendant Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. C !F- -259 Ctt; ( 7t-64 1 CIVIL ACTION - LAW COMPLAINT Plaintiff Superior Mortgage Corp., by and through its attorneys, McNees Wallace & Nurick LLC, hereby files this Complaint against Defendant Mark E. Hilbert & Associates and avers the following: The Parties 1 • Plaintiff Superior Mortgage Corp. ("Superior") is a New Jersey corporation with a principal place of business at 1395 Route 539, Tuckerton, New Jersey. Superior is licensed by the State of New Jersey Department of Banking and Insurance as a mortgage banker and broker. 2. Defendant Mark E. Hilbert & Associates ("Hilbert") is a business entity registered in the Commonwealth of Pennsylvania, having a principal place of business at 3607 Rosemont Avenue, Camp Hill, Pennsylvania 17011. Hilbert is a registered real estate appraiser in the State of Pennsylvania. Factual Background 3. James Trimmer ("Trimmer") was the owner of property located at 4467 York Road, New Oxford, Pennsylvania 17350 (the "Property"). 4. In or around the Fall of 2003, Trimmer contacted Superior in order to refinance the mortgage on the Property. 5. In furtherance of the refinancing of the mortgage on the Property, on or about November 20, 2003, Superior requested Hilbert to perform an appraisal of the Property. Attached hereto as Exhibit "A" is a true and correct copy of Superior's Request for Appraisal to Hilbert. 6. Upon information and belief, on or about December 1, 2003, Mark E. Hilbert and Robert I. Cassel, an employee of Hilbert's, conducted an inspection and appraisal of the Property for Superior. A true and correct copy of the Uniform Residential Appraisal Report for the Property ("Appraisal Report") completed b Y Hilbert and submitted to Superior is attached hereto as Exhibit "B." 7. In the Appraisal Report, Hilbert indicated that the Property was not a manufactured home. See Exhibit B, p. 1. 8. As a result of the appraisal of the Property, Hilbert appraised the Property to be $166,500.00 as of November the value of 25, 2003. See Exhibit B. 9. On or about December 1, 2003, after completing the appraisal of the Property, Hilbert signed an Appraiser's Certification, certifying that Robert Cassel personally inspected the Property and personally prepared all conclusions and opinions about the Property as set forth in the Appraisal Report. Appraiser's Certification is attached hereto as Exhibit "C." A true and correct copy of the -2- 10. As a result of the information contained in the Appraisal Report, which estimated the value of the Property to be $166,500.00, Superior agreed to refinance the Property for $148,500.00. A true and correct copy of the Note and Mortgage between Superior and Trimmer is attached hereto as Exhibit "D." 11. Superior relied upon the information contained in the Appraisal Report and the certifications contained in the Appraiser's Certification in agreeing to refinance the Property for $148,500.00. 12. Pursuant to the Note and Mortgage, Superior loaned Trimmer $148,500.00 to refinance the mortgage on the Property. See Exhibit D. 13. After distributing $148,500.00 to Trimmer pursuant to the Note and Mortgage, Superior sold the loan to GMAC Financial Services ("GMAC"). A true and correct copy of the Correspondent Agreement for Purchase and Sale of Residential Mortgage Loans between Superior and GMAC ("Correspondent Agreement") is attached hereto as Exhibit "E." 14. Pursuant to the terms of the Correspondent Agreement, Superior represented and warranted to GMAC that "each document furnished to [GMAC] is complete and accurate and contains no misleading information...." See Exhibit E, § 8131. 15. Under the terms of the Correspondent Agreement, Superior also represented and warranted that "in submitting applications or loan documentation to [GMAC], [Superior] shall not submit in any loan application package any false, fraudulent or erroneous information or statements, or omit any material fact necessary -3- to make any statement or information included in the loan application package true, accurate and understandable...." See Exhibit E, § 8B7. 16. Superior relied upon the information contained in the Appraisal Report and the certifications contained in the Appraiser's Certification in selling the mortgage loan for the Property to GMAC. 17. Upon information and belief, GMAC subsequently sold the mortgage loan for the Property to Fannie Mae. 18. On or about October 31, 2007, Fannie Mae informed GMAC that the loan for the Property was ineligible for delivery to Fannie Mae because the Property contained a manufactured home constructed prior to 1976. A true and correct copy of this October 31, 2007 notification of ineligibility is attached hereto as Exhibit "F." 19. On or about December 12, 2007, GMAC sent Superior a letter demandin that Superior repurchase the loan for the Property because Superior g breached the representations and warranties regarding the loan documentation contained within the Correspondent Agreement. A true and correct copy of GMAC's December 12, 2007 letter is attached hereto as Exhibit "G." 20. Because the Appraisal Report contained inaccurate and misleading information regarding the Property, namely, that the Property did not contain a manufactured home constructed prior to 1976 when, in fact, the Property did contain a manufactured home constructed prior to 1976, Superior was under an obligation to repurchase the Property. See Exhibit E, §§ 8B1 and 8B7. -4- 21. On or about February 29, 2008, Superior repurchased the Property from GMAC for $135,038.44. A true and correct copy of the confirmation of this transaction (the "Transaction Confirmation") is attached hereto as Exhibit "H." 22. On or about May 8, 2008, Superior sold the Property to Doris J. Geiman for $45,617.87. A true and correct copy of the Settlement Statement for Superior's sale of the Property to Geiman is attached hereto as Exhibit 'T" 23. Additionally, GMAC issued Superior a refund in the amount of $1,726.00, representing unearned insurance premiums on the Property. 24. As a result of Hilbert's error in the Appraisal Report, Superior has been damaged in the amount of $87,694.57, which represents the amount that Superior was required to pay to repurchase the Property from GMAC ($135,038.44) less the amount it received in return for the sale of the Property to Geiman ($45,617.87) and the amount it received from GMAC for refund of unearned insurance premiums ($1,726.00). COUNTI NEGLIGENCE 25. Superior incorporates herein by reference Paragraphs 1 through 24, above. 26. On or about November 20, 2003, Hilbert agreed to appraise the Property for Superior so that Superior could refinance the loan on the Property for Trimmer. 27. On or about December 1, 2003, Hilbert appraised the Property and completed the Appraisal Report. 28. In completing the Appraisal Report and appraising the value of the Property, Hilbert owed Superior a duty to ensure that the information contained within the Appraisal Report was accurate, reliable, and truthful. -5- 29. Superior relied upon the information contained in the Appraisal Report, namely that the Property did not contain a manufactured home built prior to 1976, in selling the loan to GMAC. 30. Hilbert breached its duty to Superior by providing Superior with an Appraisal Report that was inaccurate, unreliable, and contained false information. 31. Specifically, Hilbert breached its duty to Superior when it represented in the Appraisal Report that the Property did not contain a manufactured home when, in fact, the Property did contain a manufactured home. 32. As a direct and proximate result of Hilbert's negligence in providing inaccurate, unreliable and false information in the Appraisal Report, Superior was required to repurchase the Property from GMAC. 33. As a direct and proximate result of Hilbert's negligence in providing inaccurate, unreliable and false information in the Appraisal Report, Superior has suffered damages in the amount of $87,694.57, which represents the amount that Superior was required to pay to repurchase the Property from GMAC ($135,038.44) less the amount it received in return for the sale of the Property to Geiman ($45,617.87 and the amount it received from GMAC for refund of unearned insurance premiums ($1,726.00). -6- WHEREFORE Plaintiff Superior Mortgage Corp. demands judgment in its favor and against Defendant Mark Hilbert & Associates for an amount in excess of the jurisdictional amount requiring arbitration, together with interest, costs of suit, and such other relief as this Court deems just. McNEES WALLACE & NURICK LLC By Ift Harv y I.D. D. No. 23152 Kimberly A. Selemba I.D. No. 93535 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 232-8000 (717) 260-1740 Attorneys for plaintiff Superior Mortgage Corp. Dated: January --k, 2009 7- A Q Primary Residence E] Second Home ElInvestment Property No, of Unifn -I rvnR KU New Oxford, PA 17350 County: Adams 22. Due Data : t t O? 23. Type of Appraisal : Interior / Exterior 24. Contact for entry, if not same as borrower. Rp-minaf fAr e....r..:.??? JAMES TRIMMER ? 725 KOHLER MILL RD NEW OXFORD, PA 17350 (H) 717-624-4066 (B) 717-624-4066 1 U. Type of Loan O ConvenUonal D FHA VA E]FmHA Q First Mortgage 0 Second Mortgage 0 -1-ruFyosB O purchase Cash-Out Raft No Cash-Out Reft l3 03-743RI RESIDENTIAL APPRAISAL REPORT FIIaNe. 03-743R? aDb anal I, Runt b Hoar - - land Fin ch t k ang? ?S ? ra?? y AGES L® an LotaWOn ikon Subu 75% 25.75% Under 25% Dv eh of P 6596 E no lan*y ccursi la b t 096 o In process o Bills up Glamahrato ftopkl Stable Stow ? 10 2.41en+v 85 Low Owner ® ? Tertanl 200 80 "W* D96 To. Declining PmpMyvalues ? Inusasing ®Stetlle ? O....' m l ®h r;trm% Commtscbl 250 ®Vxatlg576) - 96 J oe aw Dohaand!suPplO SMnage 1 40V. L 20 1-M . g g mos. n Wn Note: Race and the rao1N CAMPOSHton of the neighborhood we not uppralsol factors. located slot the south side of York Road in Mount Pleasant Townsh i N,Wftrhtwd boewarles end ctaradtarlsucs: The sub eat s Adtttrm Court ,Penns Naftta. btment and rmsn0las, emplomant Stability. appeal to msrxat uc. t I allot! the mo"tobsky of the prided "In tie nelghr Factors That buhaod ear QaP Market condklans In the suhJecl nesghburlmod jheiuding support 'Of line above conclusions totaled la ,hetrena d property values. danend!supply, and metkell"a time n of and sales or flnanCl financin • • such as dale on coeyrellHvo Proper"' 'or sale in the neighborhood. da NMptlo^ ^Vlnrr mwricels. 5888tH are not featllfedttD essions, etc.): YES L9 NO Owners' formation for PUGS (>< appatodel • - Is me davetaperlwlldm In con Ap rt solo ltollu subject prolect NIA i f t I p mm roan ts o n rojec mber of un xe 1101121 nu t member d unhs In the sublect P(aJeu NIA _,,,,,._, pP tt t o AWoslmelo o roe c and r 11 m: Not Applicable Topogrophy a See Deed gmendors Comer Lot Ytts T Ice! for A on No Size SITS area 8 Atxes/Av nd description H hWa CommerrJel Nl Shape Ruda clan are ode cafe A csnan a Specific zoning iwss °nlammglG°nee gel ? Nazonkg ? - eR pramage LaDa'rA0 ZonmgconVilonce ® L0981 Average Vlaw use a Highest b Bloat Other on-aka Improvements TYPO ? public UUtitlas Rene Macadam ®1o0 AMP Street T I Private La+ds ci ft H Dlhwwavsurface eadem Nona a anent EIMIdty Apparent essmnanls aUer NOW ? Gas ? Nana ? FEMA Special Flood Hazard Area Yes No SWOW Private gawalk None C3 Water ? ? FE!AA Zone Map Doe 1 1 181 U sower ttvete street lights on 5:nuarv o. i None l here a no al nonconforming zoning, use, etc): e or Comments lopWrent adverse ossamen is, anaoachmer" special esswsmems, s11da ereos. Illega rnents or zonin that g L Would have a negative Im act on the value of the a anent adverse easements encroachments s ode[ asseas ll easements condl8ons and It hl of w OI racer ON T f0 art 60 however to neserva FOUNDATION I NSULA BASEMENT I EXTERIORDESCRIPTION GENEI.DESCRIpTION one A dation Block stab F Areasq.Ft. 1128 Rod C c d Calli oun No. of on ks O a one Esterlo Waal Vin cnw*m one ng % Finished Jdsl Wens Cncld Na of stales Type (ttetJArL) Detached Rod Sumfeca Rubber Basement Full tum SumpPumpNone i Af Ceding Wells Block Fleet O n um esign(Stok) Ranch G.H sADwnspts, Dampness No a D o crate None Floor O o Bn Wiludbu Pa Proposod ofts, Settlement N lid Ouuldefaary Yes a. e. Jyrs • Age (vra) $ ? ? Age g bet DI"In Den F. Rm, ??n Rot. Rm. Bodmooms 1 Botha Launar Other Area Ft. 1128 ROOMS Fo 1308 Baste 1.50 I 1 1 t L 2 5 Dam 1 s : 11306 S core Feel of Gross Lt Nee T Rooms: 3 Bed=--! deoemdrss • HEATING KITCHEN EQUIP. ATTIC . AMENITIES CARSTORAGE: 0 Norio ? N(ERIOR Mattxlals!ConWtWn INTERIOR e eV Type FF1,1 Reklgerma N. Fens yen Dr A Fuel V DB1? ' t W ? flmxAace1s11 Palo GOV. Conc. ® Ga,oge3+ ldcars Decx ? Attached Orgr St" s e V Ds?td h d Woodf Tr1m!F COOLING pstrvmsher scuttle e Dcad Poo, Front Q Bum•m kxv Vin IlAv aalhFWn O NDnO mind lasslAV DomWahscru Fi ? ? Pod Fame El Carpal r Co I Othe o l micro mw t4.Maa HD I Co Other Mlctntwava coax Finished Shed r v Additional loolureslspmlol energy efficient Hems. etc): No Melon t d radatton (physical, functbna4 and ustanmlt, rapaas naedtsd, quamY of cdna"actan remoddingleedhlans. s tla p Cmdawn at the Improremema. ..._ .r t .-tnmalnhsclescence. as ances. etc LAd,-wss onvlmnmenter condlOws (sac" as, but n of l l ited to- bhbz le Ora warent edvsanvkonme I cond{llons ihatYWOUId n m heel the There s no vIsI'do diate vicinity of the sdllJOtl property: of the act PAGE I OF 2 ,,. Vw Ii to s•n n..v. wwmsas+?s r...znoum .-r...N« 03-743R1 ORM RESIDENTI AL APPRAISAL REPORT n-A-7A3R1 f s re UNIF an Cost ......... ? . ESTIMATED SITE VALUE ..... sNe aloe, square toot rokutdlon end for 11U0, VA end FmHA, the NEW OF OF ESTIMMATED REPRODUCTION COST-NEW DAPROVEr 209 54 estl also remaking etonor* Ids of the paper* ll and , 1,308 Sq. Fr. e 1 64.38 D'"eeng 18.884 f 111x a re ro t c cost of {m r ve Hants the ars a U a Iota dors esmt 1128 5q• Fr. ® 3 9 OD0 Idenflal r Hobo . ci. ? .v, ts...•5. ..tl 9:866 ?- GaragalCsrpatt 1,408 Sq. Ft 9 s 28.31 r rerenrxd. - were , Total EstlrnNed Cost New ,. ' ' ' S 151963 -----^ E Sys: Edemel Est. RematMng - - PhWcM F.mUOnd I 121 Less $I Z. lea iaam 1 139 8 tlepacltled Vdue d Improvememe ................... -As-%- VeUe of Site Impratroments ......... . ..... • ... ' S Boo 177 600 Estimated Remelnin Economic Lice Ia 30-35 Years. INDICATED VALUE BY COST APPROACH • • • • • • • • • • ' .11 COMPARABLE NO. I COMPARAULE NO.2 COMPARAR E N0. s ITEM SUBIECT 402 Kohler School Road 1056 Hanover Road 107 Oak Ddve PA r f 4487 York Road o New NetV Oxford. PA Dare erdfat W,,1? SelosaFhon?n= 9 ft'e?lridr`•.1 - 65 DOM ---• 5 Above Gredo rr' so- sw lad' I*- tale ' 3 200' _1,000 6,3' 2.0 -1,0 2.00' -1.D00 4 .Ft. +5 SOC Room Count 6Q 7 3' + + 00 00 F Full S LM 1 308 F 180 x6,000 Full . sasernedRFYdshee Full Nona I Ii.nnlehad Fam1 Room •3 DOE Patch. Peon, Dour, rya Adlused Sales Price }y'tt -i r. qt l n'v1ti ` ' 1 } F Mat!- 4 1 °e .., s 188 500 1N6e : •A 9°o, o? Comaarado comments on Sales Comparlsm oncluding IIIe sublrit popertv's compeablUly to the nel=hborhood, etc 1 Fireolace M SU ° None Nona None NIA nd Date None WANIA a nabs NIA a Deed M.LS. -Courthouse Records M.L.S. • Courthouse Recordsotl tnaueted ty and ""5 d my pig salon d suloct and ten pwddes AnaltsK d any current agreamed d solo, oplatt at going of the sWkrt prtgan t, 1- ...at aF months. N is however ur Lenll _ sublect to a lease agreement with an I WA INOICATEO VALUE BY SALES CONIPAN550N APPROACH ................. . • • • • •N • 5Aa f Gloss Rat 1rEAtiv+ . • NIA -S INoICATED VALUE 6Y INCOME APPROACH Enlmdad Mankd Rant s a>dd su4ktittocdnpleldnPdPWssp°O? ghelapsas,eWeeUns.tsl?onSOrWS rsleobdew n a wlth t rovo a In n This apprelsal N moos "es Is sit are a end t tl e u ant assod I Caat4na dt APPS e r s order. Flnet Recondnenorc The market a mach relnhxced b the costa roach tae oat indlcaior of fetr market value. the fact that the seller Is or is not a a ortlon of the clash costs has no effect on lMs a ralsal. tMt Is Me subled of Ws r.pon. based on the above cmdtilota ant tho wna'?cav` n, 0*" The purpose d ads appretsal is to estYnets the market yatue d are reel propantY 619_ l• (Redid and falling conditions, and market value oellnloon"amaletedinthe attached freoae LGC Sy"ESUWEcT R F IMEaESTI"TETHEMARNETVALUE, ASDEFWW.OFTHEREAL O 1t? TTO ?0 •ASOF NOVember22003? wlicHis THE DATE OFINSPECTION ANDTHE E ®ad ? Old Not APPRAIS SUPERV N R 5 ale ark E. Hilb rt Impact Property 1 tr.i Nntwmtm/ 5•0 PC St PAGE 2 OF 2 t,ela.w:re•.w wt r,........r r...?.ea+,.w,.s....mewm+.rw Mark E. HSbert and Assoc. ADDENDL M DJMW Hone comments on sales Comparlson Subject is on wellfsepgc which Is typical of the neighborhood and does not adversely ImpaG rlarketab 11Y. The lack of storm sewers, curbs, guile and/or street lights is typical of the neighborhood and does not adversely impact marketability. The sublect Is over 30 years old, but has been Modemized as necessary and Is marketable In Its present condition. The effective age is significantly less the 30 years. It is noted the estimated land value exceeds 30% of the appraised. value. The land to value ratio is typical fo the neighborhood and is in line with the assessed values and comparable land sales in the market area. The higher then typical land to value redo is due to poslttve locallonal factors and does not have an adverse Impact on the sublecis marketability. it Is noted compared to a the subject. e The comparables chosen are the best aviailablee' It Is noted that comparable NOW. g bte vanes by more then $10.00 per sq. IL occurred over six months prior to the appraisal dale and Islam considered to be the beslava a I am unable to verify the insulation W factor. The presence of UREA-FORMALDEHYDE FOAM INSUIJormat about AnV could not be dotormined. If UFFI is present, the appraisal market value mane d or arsely gent Hand is assumed be accurate- Insulation stated on the appraisal was provided by Inspection, and does equipment to test for the presence of tsame. Of a future last shows nacceptablet t rvels of Rad nopresent rthe appraised The appraiser is not are of the market value may be adversely affected arvolded. Please be advised that in the market date analysis grid, bathrooms are adlusted for on the first fine and gross living arealroom count are adlusted together as a single adlustment on the second line. All comparable sales are sallied to the best of the appraiser's knowledge. Verification of settlement is with County and/or Reallar, IddedmrsPIdl 03-743R1 o__d r.i- n„rMd. PA - Fu0N003.743R1 Mark E. Hilbert and Ass-. - nder L u BUILDING SKETCH 10 I H - <1 ? trio ' a S I V? FRONT VIEW OF SUBJECT PROPERTY Appraised Date: November 25, 2003 Appraised Value: $180,500 REAR VIEW OF SUBJECT PROPERTY STREET SCENE anni:winnu COMPARABLE PROPERTY PHOTO ADDENDUM COMPARABLE SALE #1 402 Kohler School Road New Oxford, PA Sale Date: 5129/2003 Sale Price: S 159,900 COMPARABLE SALE #Z 1058 Hanover Road New Oxford, PA Sale Date: 713112003 Sale Price: S 180,000 COMPARABLE SALE #3 14T Oak Drive mew Oxtord, PA Sale Date:10IM2003 Sale Prka: $ 155,000 //op ? r a y'r i If1 3 ... w. I i ?i 0}743R1 fa No 03.743141 derive and open market Orly ","his Wics which a POP should brtn0 to a wmP awrsdpa•MT and i3eurmng the P9190 a not DMNITiON OF )AARK16T VALUE: 1301161. meet • cats as a Specified date and iM pesatnI d b0e bom ender as condaior19 tertuis,?• to ! (tlow. his fit* _ defm0bu Ise lhscero auamnsltea of acting PnrdeM1Y• ke We wag WlamoO of wen advised 4119C140 by undo. sHntalus- ah4 se0a fit tjWC41W mah'01, f2) troth p Poe n tnarkd: (4) Paymsd er under conduroes witcant l u tits 610 is 0owad ter "Posey W, U19 ePs lahyl his sails In hey lowest: (3} a rsasau "Vessels the namst s=Qc W *d with the and sack 'cling he oontdder of t anttpem•ers ampanDll Utsrato: acrd ( Wanted M "no is made at toga of ash in U.S. unaffected On _ spaaaf a aeative fmand n; or sates comas li", coosidaalatr fw file property sold orb. a sales coluessiota. Nosd)uNIMMs ere f19cedsarr for or aeakw imaf+eino bedilrabts sfnoe IN •Aditusitearts to tM comWrabt°s ^" M made la apat9al Utne opals "hick s a mail paid by se0•Il as a frPA d "thiton or taw is a Market areal ??? to 1119 Comp rabls PUPWIT rOsaMsbsntsadior>s. SWaeiaaestivainartaftD> ertraas"ton. Any aet4r pa'ti pwrle tatsa is g loon a ihkd PadY instillikM Wider that its not steady nwMed to the Dr but IN dotlaF amount d env corparaolq to {rnaraitq lams offered by sr cost d the Besndn0 Of concesstea by at•d on a medtankai ddhr for do0 based on the Awaben pvns t ad shooid/PPon,*°gi0"switaft er89SCh10" fnarCelamr'csS$ke'S STATEOAENT OF UWTING CONDITIONS AND APPRAISER'S CE" Sr-"TM in tss aPW? sepal is suged to the CONTINGENT tar'{ cerb(Catbn that appears AND UgAi'RNG CpptDITIONS: Ths apps tok" l c orrdit-, bsyrp appraised a Ills title to il. The lot manes of a legal aeon Uol affect Ahsr the pnpedY steed atabla and. 019111", wW ed render any opinbes abol the Gtr. It19 prvperq b om i. TM aPW> wU not be rssi at>t+raaef Issunwe That Ifr tglr Is good and mark on pm pbp d 1 birpa+def reepars011 oanwrsfdp ds and the sketch is ?i report 10 show spptaslMate mimroioas ? of Its stta hat ,,wMpd • skeldt in the aPPrs ppe ado* W do leader d to resat to vatntsep the pope", end a#andrq Ue eesrs eral EmetperuY Wppperemt ?9"ry (a Other data that ate pfovWsd by the Fed Narsd Area. because the 3. TM rppraaa tot sornrdtmd the A lwpM thy auhyed As is located to an idsohGsd Spacial fbod waces)•edhasnotedinMvno°0;efYeyll,adrpedelOthbddarfioOoR WPWW is nd a severer. on "01101, al of 00 fYeDs'lY to ouOSfloR Y01esa apedr <. The splay" Will Ad Oars Natrrsem w app- M r otnl bpcsus• he or ski rmde I Ippran Ito do wham been milebetashand pvcn19tds at Uae t»ch at Its apnea and beat use end Us ? ? ?? and 5, The awm3w bas estlmslsd the Mlle at the land In the ? errata must ad be used in w11"'c ton coattibul) y If". Thas"Oler?te vetusikKa of the tand an, an tmraW OaisYan w teed. altion, "m D'?ea d hazardea Mimi 6. ,be swe6er anal report MYwirers s mad proper reW sae d save Of duiinp ;? ylsr or that he OF she b•a.rrrs Ndds" tws now in the wasters. taco substance d, ) dbserMd derirtp this luspscl wl noel the apprssa has no azardou s 04 1• UNaa oth•nNssslatsd °1 ttp° tior weding No PF•119na of hazardous eaal•s. tonic C. untir i I. l lit"I inor miry i adverse envbonmentd ha ue gew that 1Mre.sfe n0 mch mnallons s IV any such s bstem wens cthat I the O the P? man or less valuable. wig not be rasport311" in . it* go-AWN of IM prppertY• The WNW . dilWm slit. 8ecwss the utdfeaan. do.) tbsl would asatta 19 rd.n0a to discover whsaher seder Coe quradets pfwartsrdiss _aapeis O1 &dvino a l.egn astnq that Might be ragwred tlr ePN?fapwl neat rat he penaidred as an tmworrrwrtlal asstssrrwmt condiuem flat do m W a'10Y ? argm luueeds sp{womm is not an OPrl nibs field of eevoawnsrdri dam pto"M. ataa, and rWistOes that We snpress•d In the spprarsd report Um samara IhM by at be Nye and pprrsd T to aopnuw daro not ssswas resporaibialy for the accuravy of such rtioa, esgm 1. The awaits diabed ills inlofe and coMidsn to be VP WIG ead beasvn Una to PioMs>foe+r Wile V.,e ww*tjrndwdbj dW PWW d for its the units" sta"W41 of !f. TM aPPMUW vin not disclase the eoraents Mine rPPralstd IePe1 eacepl as pravrda Appseatpraapp, WOW completion has boo Ms a Mr spWs? r/Pp1 end Valuation rsx?dusren for on eppraaat Ihaf is shod to sans d IM krVowa"f+wllbe Pew in a snsdutctiar rarsws. 9. The /pPi19err . rspails a egrbiormmnlm afslsspl nit k^ d In tee *Wmsd spat an Oiab,Wta the reldlsnwaserd"taeiMlanpalcWrdepacde Msipn+rltats,amtlowant- to to, TM appals must provide fis a Iwt pna spprayl Fallen (wKWOMI mPdusmss AboaIM veto. 0r rppaidher ser Is Is so sodalande4) to to +i arrye pae seer %so the borrower, the preps ty S /s aryl state or fadstallY stir prdasstoaal IpPrstsat eam us law a Ibe the *jut which ?uda?Wds Professional apprairW kt d Ill 00 t Az r" s MW480sa a its stiodessen uW asstWts Illy aprt4a0e a nshum.Matity d the Untied States or I a ryorttem smemos) app4M 6004111 ligWui m sr /nY dspertmad 090my. duaaliAton sedtoa at las report only to eda oollscllondso be abtanad betas eacrPl that ohs tanderlth•rd afar dsbitwde Its prop/r1T TM appehaf s arm m cwawA amd aPPro ecitt•earrssnl vn. AIM or Otter media- 'Areedl n. p kabai can Mom the awamee wAvyod by ew1ae?lm i>Ibdc tin advert aM4 t tsaboro "w". t•a ePra ps"i, ktw farm low 0.93 page 1 d2 Fradfe Mac Form 439 5.93 03-743R I FwLM-03'763Rt SERSCERTIFlCATION: 'The ApPtaiswharldeserdstfoeSthat troth APPRAU a VAMMum of M41 raved saus of popor moa srndy e W reMd au Ms rcbadtM wMed tnatlud xea sad have salad anslysta and have roads odopsr odj Am of when b'A'4 'hot" More I. 1 haw rasa Ia.owwldwa6oo In #0 Saba OoO?Peruo'h ilsmla a mnapphbM Properly K rb and. N a sronfwaat flora o e to theb}adprWertl ysNaFiwt• astllipt "'t o1lMcoarpiss ante h atimarR to inrsvaw sdj marlalt raacw4 to thm items MssiOtt1 ushsshl la reduce Itrs aWOSS? t a s a posh" ndp I have has to a nepsttee ail is inlet" to. w less tavorabN!bare the subiod ptoWtLY comyntrawo property says Pico daomnp-tk- deveiaWOSOt of the estimate of pmh ho'b.s Of 17 unpad on ntae ah4 the appraisal raper! and l betls+ e, to lh? lust of ray that have an (lam eone30we110n the laden . wtuthM4 saY sitlalfieanl telurwNha 2. IMrslakrerinto repoelareenriardcORw.l spprabal spat. 1 have not IatoraNN 1n1M apptarat •Ah Cn ats weed wpnledpe• but d aytwaetds and sdernalr7tt and earidvstoas. WM. un6t»ed. and pntoraaat eeel,rss. apmiioris. 3, t stated in the OPP'"*'report ? wile bm onh to ?aotdin9rid and 1snAir9 ?od to tots roper!. and I have no pressM Or prospedwa w the aftow Intarasl io the P OPe tr that is the es a comptdoty. I" as t dlhor "than yertglly er ?ioow 10 the OdWS 4. 1 law no Prasehl at P"Pla id is in the trwissdwn. 1 did net 13251. h k rs Nie9 in the vldn67 of Ins with raspad la the paR' Pea oa the rea. cobs. atrpion. Sao. handi o 1ani is M f IM ihslow or ? vahm th tot WOSOI taPort b ProPe oft eetlmat0 01 tihxtat or rKCapants o1 the ..bid prepetlY w o1 the presard 0"" a prospecgw owners i her MY auhjed proPortY• and heitbet mY pur•at a laluts amgova+ott 5- I hove no present or antaaplatad future ihterssl to the wbls rty, d POP Y erlarrirh0lh,R,,,wbOdrdin pt*nttraPprsbod rritattdParty. p that te"rs the taus old r ont In order to real" Mfr to r,pact a pradetareeaOe vela at dbsdiOO m value encs M a sebaaqu eereenhum vshwim a 6. 1 was hot reqaired dhO cowl. Or the ne, i rapelt on a request the aeahl of do rata estimate, ft ottaimnsid of aspa 1 did net baea Ilia appraise al m "Or sapbrmaM for paAarmnip the OPPOtl"t cpnpwh km a and vak W,.rlhaacediOspproeoaspodka°I,ra Iron t Precaca that of Ilia aMea'>uL Of VICIG&W-al AM eeval M coMwmttr with roe 1lnUo,eas,ion and 111a1 wars in Place d 1haa11edieo . 1 a real"" t t palormed Ihla aPM Bond d yew hppr ' ltat hta astbtat6 o rrst Iod 1w the lipprabat 8bridards lsparbtts prvlatOO a1 Mass SWAIrds. wtddt due ad alY We w d adowat lo, a OettalslaM hHth efht with are arapbaa of 'be ro yebe ti aw rocano>•?t°nS°ct10n time ter aspostse in the O"A marmot is a ca tdhson m the 6n at d The 03taala t dWAOp°d sedbehdassteDotl Laasd as "mmal>? MN"be9 Chas acted in lta raiy?+b°tiOOd Y end he astww al all p a wtias . aded the nlwlOratid fatale as" of eba >nittlaad h advOw ao in the have amo for 1MSa a. I have perm" 4*P that I tiara wed of applow 1Mra. 1 haw sue Ooremeatad. - to the sppralml report. I wow ate vWkav of Na -Mud P -Poi'Iy of •Rdch t amp Tt ?i s made sab?ad 31111. of On sat 640 ww vat- to the steel that l tad.-IW avJa eordoms in ray saahsis'rt the eepdhst mvksgtm cf dw wI:iw POperty- ?vaarse aq easdol ahe sd+wva aO Hai r*part it l reHsd an nbns about the teat estate that Hers sal falh? or Pxotloa of the appraisal the #w 9. t personalty Prepared all oonOMsions and opt 'asks renal t1+am N the'Macwtba $010 Of this eappratsst ael oe adieiduhib a to pertwma by ot lm app to aka s don" 10 my two in aSsht"m from arty edes,19 the sp r P WL t t havvemach IrAW&al(s) hrss awle ec 3h vs rot ahMoaeed anYOno roDOtl iartilyeatairyhadhrdwl tadstoawapprsadnpOd.tnatab-nesm ?tYIwt 10 ,WK ayresao. Y an uuuabtssd it Charge ever, the appat.4 report. he a aha urnstes ER S CF WIFICA"- N • aupanOSOr1 ratipned Unit apNabd repay. 09'" whh tot 01lvw?t SUpERY AP and album t dk? Spa no apps N I be b. #W by 00 op raw. Oa 7 Mars. aad an ta>naC feraaoreas?'flOrtbaaPP?':. ads?awasalFOP°1' ADDRESS OF PROPERTY APPRAISED: AppfuUSER: 4467 York Road Now Oatord PA f t4 mat patsSgOSd' faa:•t?o?eett: a SrRe tieerae a: Eq*iti nowedCol*toeanaetk°'ee MWX E. Frleett 6 Assodama Frshldie flat F°na 439 6M gER (only ifra4UWadl SUPERNSORY APPRIN $,yrudhrr, Nears: ? t3atsSOptea gemterasatens or Sum U j?ertra E OMedf a66odtonccLw., w dr--- oo tech r.si? nK+?T Faro 1(164966 ?"'10 correc ' ?• 1 ci 0 C'ay'- 311 ? . j NOTE JANUARY 19, 2004 [Date] NEW CUMBERLAND [City] 4467 YORK RD, MOUNT PLEASANT TKP., PA 17350 [Property Address] TRIPMR LOAN K, 133-02244 KERS Ne 100058503120020872 PENNSYLVANXA [State] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay US. 5 148, 500.00 (this amount is called "Principal"), plus interest, to the order of the Lender. The Lender is SUPERIOR ROME MORTGAGE CORPORATION I will make all payments under this Note in the form of cash, check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 7.375 %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(13) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the 1ST day of each month beginning on MARCH 1, 2004 . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on FEBRUARY 1, 2034 , I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at 1395 ROUTE 539, TUCKERTON, NJ 08087 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S. $ 1,025.65 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. MULTISTATE FIXED RATE NOTE--Single Family-Fannie Mae/Freddle Mac UNIFORM INSTRUMENT Form 32001/01 DoCUCFAI (page t of 3 pages) DOCUCFA1.Vrx 1/04/2003 133-02244 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of 15 calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 5.000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly.payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Casts and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment' means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrwwr t describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of a ll sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. . MULTISTATE FIXED RATE NOTE-Single Family-Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Farm 3200 1/01 DOCUCFA2 (page 2 of 3 pages) D0CVCFA2.VTX 1/06/2003 133-02244 If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S) AND SEAL S) OF - E UNDERSIGNED C, t BORROWER'- 'JAMES E. TRIMMER - DATE - MULTISTATE FIXED RATE NOTE-Single Family-Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3200 1/01 boCUCFA3 (page 3 of 3 pages) o0cvcrA3.WX 1f04/2003 [Sign Original Only] Printed: 10/8/2004 1:35:57 PM MTGR 0600884405 1 111111111111 MTGR 0600884405 111111 1 1111111 Location: IMPA Investor Name: FNMA 774312 Borrower Name: TRIMMER J Pool #: HFS WH CORR CONV Closing Date: 02/10/2004 Funding Status: SOLD Imaged By: {sill! !mil 'il lti1 Ail Pl1 Imdae TD: ODo00pgji'Mat:'IM5:"4"6 Recorded0!/28/2 P 13 Fee Amt: 178.00 f InstrO 200400001760 Adams County. PA Pa4av 8 GochenaU60 Recorder of Dee( 13K3456Pa91 WHEN RECORDED RETURN TO: SUPERIOR ROME MORTGAGE CORPORATION /? 245 BELLEVUE AVENUE 6~ /11 O ti (7 ( 4A/ 11 HAMASONTONONTON, Na 08037 Q ( `7 [Space Above This Line For Recording Data] MORTGAGE TRINNLR WAR Nuz4siMs 133-02244 DEFINITIONS l4INs 100058503120020972 PIN ri:anp J31 PLRCLL 102 Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated JANUARY 19, 2004 together with all Riders to this document. (B) "Borrower" is JAMS E. TRIMMER AND SUSAN L. TRIMMER, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "MFRS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MFRS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MFRS. (D) "Lender" is SUPERIOR HOME MORTGAGE CORPORATION Lender is a CORPORATION organized and existing under the laws of NJ Lender's address is 518 BRIDGE STREET NEW CUMBERLAND, PA 17070 (E) "Note" means the promissory note signed by Borrower and dated JANUARY 19, 2004 The Note states that Borrower owes Lender ONE HUNDRED FORTY-EIGHT THOUSAND FIVE HUNDRED AND 00/100 Dollars (U.S. $ 148, 500.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than FEBRUARY 1, 2034 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." PENNSYLVANIA--Singlc Family--Fannie Mae(Freddie Mae UNIFORM INSTRUMENT Form 30391/01 (Page I of 12 pages) DOCUKPAI . ypGyatFA1pAlVTx 09/2012003 III{?II?IIL?I?II?I?IIIIIAIIiIiiItIUII?INII?ill??lli1111141 Image I0; 000000 61010 o p13 GEN BK3456 PG92 133-02244 (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (II) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: Second Home Rider n Adjustable Rate Rider ? Condominium Rider E] Balloon Rider Planned Unit Development Rider ? Biweekly Payment Rider n 1-4 Family Rider Other(s) [specify] (1) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (,1) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (I) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor In Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MFRS the following described property located in the COUNTY of ADAMS (Type of Recording Jurisdiction) (Name of Recording Jurisdiction) which currently has the address of 4467 YORK RD [Street] MOUNT PLEASANT TWP. , Pennsylvania 17350 ("Property Address"). [City] [Zip Code] LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF. PENNSYLVANIA-Single Family--Fannle Mae/Freddie Mac UNIFORM INSTRUMENT Form 30391/01 DOCUKPA2 (Page 2 of 12 pages) POCU"A2.VTX 00/26/2007 IIIINiIIG{N??I?II?I?I?II?l?NBlRlill?l?i?Vlllill Xmad9 I : 0000003 i it TVDe. GEN ptiae 3 of 13 BK 34 5 6, P093 133-02244 TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right; to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and Us Security instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section l5. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapphed funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance PENNSYLVANIA--Single Family--Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 30391/01 DOCUK.PA3 (Page 3 of 11 pages) UOCUXPA3. VTX 0912613003 IiI?iiiiNuIliIIililillillNa Image 10: 000000381012 7YDe: OEN Phas 4 of 13 BK 345 5'POQvr4 133-02244 required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase `covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fires, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be PENNSYLVANIA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 30391/01 nocuxeA4 (Page 4 of/ 2 pages) HOCUXPA4.VTX 09/21/200 111111111111111111111111111111111 IIMOe 16: 0000003.1013 TV00: OEM Pace 5 of 13 11K3456 AS 133-02244 maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shalt not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released PENNSYLVANIA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/O1 DOCUKPAS (Page 5 of 12 pages) v0Co"A5.VTX 09/26/2003 i?l>IIIV?IIf ?I?I?I?ININIi?lllhlll?llIIIIIIIiI?iINI Image 10: 00000 Palc`tg ofpi3 GEN BK3456 PG96 133-022 4 proceeds for such purposes. Lender may disburse- proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property„ Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process; Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. Borrower shall not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non- refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. PENNSYLVANIA--Single Family--Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 30391/01 DOCUKPA6 (Page 6 of] 1 pager) nocuxrjL$.Kx 09/36/2003 IIIII[II?IIfIIIi?II?lUlll?ll?l?lil?llllil?lli?l?llllililil Itntas ID: 000060033301015 ofo13 0EN sK3456 po97 133-02244 These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive. a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property inuncdiately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. PENNSYLVANIA-Single Family--Fannie MaelFreddie Mac UNIFORM INSTRUMENT Form 3039 1/01 pocvMPAI (Page 7 of 12 pages) DDCV"A9-VTA 09126/2007 iflllllf ?IU?IlUII?lIUII??II?I?UilU1?IIUf HUlI?1Nf Image 10: 000000301016 Yvoe: GEN PAge 6 of 13 13K3456 P098 133-02244 All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security PENNSYLVANIA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3039 1/01 UOCUKPA9 (Page 8 of 12 pages) VOCMAe.vrx 09/2612002 IN?uI?IN?I?Ilitll?l?ll?lllll?l?iil?INI?iQINNIINN Imaae 10: 000000391017 Tvue: GEN Pade 9 of 13 BK3456 P099. 133-02244 Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (e) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of. (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (e) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. PENNSYLVANIA--Single Family-Fannie MaelFreddle Mac UNIFORM INSTRUMENT Form 30391/01 Docu"A9 (Page 9 of) 2 pages) DDCUXPA9.VTX 09/2612003 I1N?u?l?ll?ll?II?IIq??IIINI?III??IfIIN1?l?ll?llll IWe ID: ooooooP§x6310 ofet3 gd BK3456 P400 133-02234 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). Lender shall notify Borrower of, among other things: (a) the default; (b) the action required to cure the default; (c) when the default must be cured; and (d) that failure to cure the default as specified may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property. Lender shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. If the default is not cured as specified, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, attorneys' fees and casts of title evidence to the extent permitted by Applicable Law. 23. Release. Upon payment of all sums secured by this Security Instrument, this Security Instrument and the estate conveyed shall terminate and become void. After such occurrence, Lender shall discharge and satisfy this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower, to the extent permitted by Applicable Law, waives and releases any error or defects in proceedings to enforce this Security Instrument, and hereby waives the benefit of any present or future laws providing for stay of execution, extension of time, exemption from attachment, levy and sale, and homestead exemption. 25. Reinstatement Period. Borrower's time to reinstate provided in Section 19 shall extend to one hour prior to the commencement of bidding at a sheriffs sale or other sale pursuant to this Security Instrument. 26. Purchase Money Mortgage. If any of the debt secured by this Security Instrument is lent to Borrower to acquire title to the Property, this Security Instrument shall be a purchase money mortgage. 27. Interest Rate After Judgment. Borrower agrees that the interest rate payable after a judgment is entered on the Note or in an action of mortgage foreclosure shall be the rate payable from time to time under the Note. PENNSYLVANIA--Single Fatuity--Fannie Mae/Freddle 11iae UNIFORM INSTRUMENT Form 30391/01 DDCUKrA10 (Page 10 of 12 pages) oocu"M.wx 09/3613003 I011111111111 IN1 1111111 N1 IWO ID: 000000391019 TVDS: GEN Q ''{{P649 11 of 13 BK3456 p0i01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants Instrument and in any Rider executed by Borro er and recorded with it. BORRO R - JA1MES( S. TRIMMER - DATE SUSAN L. 133-02244 contained in this Security PENNSYLVANIA--Single Family--Fannie Mae/Freddle Mac UNIFORM INSTRUMENT Form 3039 1/01 nocUKrnu (Page 11 ojl2pages) D0001QAX.VTR 09/2612003 Imade ID: 000O00P?g0202To e130EN BK3456P402 [Space Below This Line For Acknowledgme 133-02244 Commonwealth of County of ?C_ - 1 On this the 1 day of gJ?,1J?Qrv before me, n- V-D t7? 4? C-1 i 1 the undersigned officer, perso y appeared known to me (or satisfactorily proven) to be the person(s) whose name -) Cf!,,V%e_ subscribed to the within instrument and acknowledged that executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and official seal. NOTARIAL SEAL KATHLEEM KE110, Idl}I3ry f'UbIlC Title of Officer tdeW Cumberfatd Goro., ft'Mb,land Co. toy COITINSS100 &Pirn Dec. 5, 2006 My Commission Expires: CERTIFICATE OF RESIDENCE: I do hereby certify that the correct address of the within-named lender is 245 BELLEVUE AVENUE, HAMONTON, NJ 08037 witness my hand this 19TH day of JANUARY, 2004 Agent of Lender 66, (?S; PENNSYLVANIA-•5ingie Family--Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3039 1101 DOCUKPA12 (Page 11 of 12 pages) P0aMk0.VTY 0912612007 LEGAL DESCRIPTION -----------------------------------=-=== --------------"'---- IM600 TO: 0000W$01021 TV06: QEN PAC* 13 of 13 BK3456 PG103 ALL that following tract of land situate, lying and being in !fount Pleasant Township, Adams County, Pennsylvania, more particularly bounded, limited and described as follows, to wits BEGINNING at Lot No. 9; thence along the Lincoln Highway, South eighty-eight and one-half (88-1/2) degrees East, one hundred (I00) feet to a stake at a public alley; thence along said public alley, South two and one-half (2-1/2) degrees West, two hundred (200) feet to a stake at a sixteen (16) feet wide alley; thence along said last mentioned alley, North eighty-eight and one-half (88-1/2) degrees West, one hundred (100) feet to Lot No. 9; thence along Lot No. 9, North two and one-half (2-1/2) degrees rest, two hundred (200) feet to a stake at the Lincoln Highway, aforesaid, the place of BEGINNING. BEING the same premises which Gary F. Reaver, II, and Vivian Reaver, husband and wife, by their deed dated, -l 2004, and about to be recorded in the Office of ?tle Recorder of Deeds in and for Adams County, Pennsylvania, granted and conveyed unto James E. Trimmer and Susan L. Trimmer, husband and wife, Mortgagors herein. C GMAC Bank Wholesale ortgage Lending CORRESPONDENT AGREEMENT for Purchase and Sale of Residential Mortgage Loans 21st day of This Correspondent Agreement ("Agreement") is made and entered into as of the M 2002 , by and between GMAC Bank ("GMACB"), a federal savings bank, and mr; l rt age Corp ("Correspondent"). a T_-?ey (state) corporation. RECITALS This agreement is entered into with reference to and includes the following: A. GMACB is engaged, among other things, in the business of originating, purchasing and selling mortgage loans. GMACM operates its wholesale lending business on its own behalf and also in its capacity as a delivery agent for its affiliate, GMAC Mortgage Corporation, a Pennsylvania corporation ("GMACM"). As used below, GMACB shall refer to GMACB acting on its own behalf or as a delivery agent for its affiliates. B. Correspondent is engaged in the business of originating, processing,. closing, and selling residential mortgage loans. Correspondent, as applicable, is a mortgagee approved, and will remain approved, by the Federal Housing Administration of the Department of Housing and Urban Development ion (FHA), the Department of Veterans Affairs (VA), Federal National l Mortgage Assn atany (FannieMae), Federal Horne Loan . Mortgage Corporation (FHLMC), and/or governmental or quasi-governmental agency or insurer which is engaged in the mortgage lending industry. In the event that any other approval is required to be obtained in order to to obtain such approval. defined), Correspondent originate, tale whatever action isrequei service agrees to GMACB desires from time to time to purchase from Correspondent, and Correspondent desires to sell. one-to-four family, first and second lien residential. mortgage loans (individually, a "Loan") made to individual borrowers (individually, a "Borrower"), closed in Correspondents name, on a servicing released basis, and upon such terms and conditions as set forth in this Agreement and in the GMAC Bank Correspondent Lending Manual, product guidelines, rate sheets and written updates or bulletins provided by GMACB and amended time to time (collectively the "Correspondent Manual") which is made a part of this Agreement and Incorporated herein as if set forth at length. tn,consideration of the above recitals and the mutual covenants and promises contained herein, and intending to be legally bound, the parties do hereby agree as follows: Revised 02111/02 Page 1of11 1. TERM This Agreement shall be effective as. of , and shall continue until terminated by either party. (for GMACB use) 2. TERMINATION (a) This Agreement may be terminated by either party without penalty or cause upon 15 days' written notice to other party. Termination shall not affect the obligations of Correspondent with respect to Section 3(c), 3(g), fi, 7, S, 9, 11, 20 and the Confidentiality statement contained in Exhibit A of this Agreement. (b) In addition, GMACB shall have the right to terminate this Agreement immediately by notice in writing to Correspondent in the event of any of the following: i. Correspondent defaults in any of its obligations under this Agreement or any other agreements between Correspondent and GMACB or any of its affiliates, and such default is not cured within ten (10) business days after notice to Correspondent of such default; ii. Correspondent fails to deliver acceptable Loans to GMACB, under the terms and conditions of this Agreement and the Correspondent Manual; Of. Correspondent shall initiate or suffer any proceedings of insolvency or reorganization under the bankruptcy code, or other federal or state receivership laws, or make any common law assignment for the benefit of creditors, or be unable to pay its debts as the same become due; Iv. Correspondent assigns or attempts to assign ils rights and obligations hereunder, v. Correspondent by operation of law becomes unable to faithfully perform its duties pursuant to this Agreement; or vi. GMACB, or any of its affiliates, suffer any involuntary sale or execution upon any interest in any Loan purchased hereunder and such is the result of any act or omission on the part of Correspondent. (c) Termination shall not affect the obligations of Correspondent with respect to any event occurring before termination. However, termination of this Agreement, except under F .... Paragraph 2(a), shall be deemed to be for or with cause, and GMACB, at its option, shall have the right to cancel any open Loan. registration confirmation(s) or other- commitment agreements. (d) Correspondent agrees that in the event of a breach by Correspondent of this Agreement or any other agreement between GMACB, or any of its affillates, and to Correspondent, or upon the default of Correspondent under any instrument payable GMACB, or any of its affiliates, or upon failure of Correspondent to pay any. amounts due GMACB, or any of its affiliates, GMACB, or any of its affiliates, shall have the Immediate right to set-off from and against any amounts otherwise due or payable to Correspondent. Revised 02111102 Page 2 of 11 3. SERVICES OF CORRESPONDENT (a) Correspondent will assist prospective Borrowers in completing credit applications and such other documents in the form designated by GMACB and as GMACB may require for Loans which meet the then current underwriting standards and loan 'policies of GMACB, including the Correspondent Manual. Correspondent 011. promptly submit all information generated pursuant to such application to GMACB, or the applicable agency, for its review and approval. (b) 'WON DELEGATED UNDERWRITING" Correspondent may request approval to be authorized as a delegated underwriter. If such request is approved in writing by GMACB, Correspondent shall make credit commitments on behalf of GMACB, or its affiliate, under the terms specified in the written approval or an amendment to this Agreement, and in compliance with applicable law and the Correspondent Manual. Unless and until notified otherwise by GMACB in writing. Correspondent is NOT authorized as a delegated underwriter and must send all loans to GMACB or an authorized contract underwriting service for underwriting approval. Correspondent shall obtain real estate appraisals only from those appraisers, which are licensed or certified according to state law requirements. All appraisals must meet secondary market requirements and in addition satisfy all requirements mandated by state and federal law, including, without limitation, FIRREA, for the particular transaction (refer to Underwriting Section of the Correspondent Manual). (c) "DELEGATED UNDERWRITING" If GMACB authorizes a Correspondent in writing that such Correspondent is a delegated underwriter for certain programs, the correspondent will be authorized to make credit commitments on behalf of GMACB In compliance with applicable law and the Correspondent Manual. Loans in excess of $650,000 and sub-prime and high loan-to-value ("LTV") loans require exception approval and are underwritten at GMACB. ' (d) Correspondent, at its own expenseasd ha? additionalMtemsaslGMcredit data, ACB, fromtimelto statements, real estate information, time, may require. In addition, Correspondent, at its own expense, shall perform such other functions as GMACB may require to close, fund, and complete the Loan transaction. (e). Prior to purchase of the Loan by GMACB and attar purchase, if required, Correspondent agrees to execute such assignments.- endorsements,' or other documentation as necessary to transfer ownership of the Loan to GMACB and/or such other assignee as may be designated by GMACB, concurrent with the,dosing , of such Loan or as GMACB may otherwise direct. (f) Correspondent shall deliver to GMA b e time L earinod de?quir?edn in fheC?rrnde t Correspondent Manual. within the app p Manual and commitment confirmation. (g) If Correspondent fails to make proper and timely required delivery In connection with any registration or reservation ("registration'), the parties agree and acknowledge that GMACB, or any of its affiliates, will suffer damages, including, but not necessarily limited to, the decline in market value of the Loan, processing costs, investment losses, obligations to investors to whom a registered Loan has been committed, and legal costs Revised 02/11/02 Page 3 of 11 incurred as a result of non-delivery and enforcement of GMACB's rights. Correspondent shall be liable for all such damages and other damages incurred by GMACB, or any of its affiliates, in addition to any other rights, remedies or damages of GMACB at law, in equity or under this Agreement. in the (h) All Loans will be purchased in accordance with pricing and options effective provided written Correspondent Manual. Any change in pricing policy shall e y amendment of the Correspondent Manual or other written notice by GMACB to Correspondent. (I) All Loans which Correspondent desires to sell to GMACB, or any of its affiliates, under this Agreement must be registered with GMACI3 subject to any limitations in the Correspondent Manual. Following acceptance by GMACB, or any of its affiliates, of a registered Loan, Correspondent shall be obligated to deliver the Loan to very program a CB In accordance with the terms and conditions of the applicable Agreement. 4. OBLIGATIONS OF GMACB Subsequent to Loan purchase, GMACB may reverify appraisals, credit reports, and other information as it may determine necessary at GMACB's expense in order to assure itself of the correctness of information in each Loan file. 5. FEES Correspondent may retain, to the extent permitted by state, federal and local law and the requirements of the applicable investors, a processing fee, an origination fee and all lawful discounts collected in excess of the GMACB's quoted price. GMACB may withhold; set off, and apply any fees otherwise due and payable to Correspondent to any obligations of Correspondent to GMACB, or any of its affiliates. In no event shall any compensation be paid to Correspondent unless a loan is funded by GMACB or any of its complete Correspondent has and to withhold any fees or payments until the Loan file Is performed its obligations hereunder. 6. APPLICABILITY OF REPRESENTATIONS AND WARRANTIES Each Loan shall be subject to all representations and warranties specified in this Agreement, Including, without limitation, those in the Correspondent Manual, irrespective of the provisions of any other documents or conduct of the parties with respect thereto,, including without limitation, GMACWs examination of documents and flies. This Agreement shall exclusively govem the . ?..,?.. rights of the parties hereto despite the fact that the Loan Correspondent be subsequent to shall spree the Each representation and warranty herein and the purchase of a Loan and shall insure to the benefit of GMACB, its affiliates, successors and assigns. 7. CORRESPONDENT'S REPRESENTATIONS, WARRANTIES, AND COVENANTS REGARDING LOANS Correspondent makes to GMACB in connection with each Loan purchased by GMACB and with this Agreement, all of the representations, warranties, and covenants set forth In the Correspondent Manual and herein which representations, covenants and warranties shall be Revised 02111102 Page 4 of 11 true at the time of registration, at the time of delivery and which shall survive the purchase of unpaldto each Loan for so long as any amount each Loan by GMA eB remains and shall continue a effect due from the born 8. ADDITIONAL REPRESENTATIONS, WARRANTIES, AND COVENANTS A. Correspondent makes to GMACB, and its affiliates, in connection with this Agreement, all of the representations, warranties, and covenants set forth in the Correspondent Manual and Agreement. All Corr espondent's representations, covenants and warranties shall be true at the time of the execution hereof, as well as at the time of registration of each Loan, at the time of delivery and which shall survive the purchase of each Loan by GMACB, or any of its affiliates. 1. Correspondent is a corporation duty organized and validly existing in good standing in the jurisdiction of its chartering or Incorporation, and Correspondent and each of its directors, officers, agents, and employees have acquired and will, during the term of this Agreement, maintain all necessary licenses and qualifications to transact its business. Correspondent shall submit to GMACB copies of all such licenses as requested by GMACB. Into this corporate Agreement authority and to perform taken the transactions 2. Correspon den a to a enter necessary corporate ctions contemplated hereunder. 3. Correspondent, as applicable, is a mortgagee approved, and will remain approved, by the Federal Housing Administration of the Department of Housing and Urban Development (FHA), the Department of Veterans Affairs (VA), and/or any governmental or quasi-governmental agency or insurer which is engaged in the mortgage lending industry. 4. The execution and delivery of this Agreement by Correspondent and the obligations which it will perform hereunder do not, and will not, violate any provision of any law, rule, regulation. order, writ, judgment, Injunction, decree, determination, award or contract having applicability to Correspondent or the articles of incorporation or bylaws. of Correspondent. 5. This Agreement constitutes, when duly executed and delivered by Correspondent, a legal, valid, and binding obligation of Correspondent, enforceable against Correspondent according to its terms. 6. There are no actions, suits, or proceedings pending or threatened against or affecting Correspondent or the properties of the Correspondent before any court or governmental department, commtssIon, board, bureau, agency or instrumentality, domestic or foreign, which if determined adversely to Correspondent, would have a material adverse e e ww„ on the financial condition, properties, or operations of Correspondent or upon Correspondent's ability to perform is duties hereunder. 7. Correspondent agrees to make current audited financial statements available to GMACB upon request, and in any case, within ninety (90) days after the completion of each fiscal year of correspondent. GMACB will rely on these statements as part of its determination of whether to continue to purchase Loans under this Agreement. 8. Correspondent agrees it will not use for its own benefd or will not disclose to any person or entity confidenUal information relating to. GMACB which it has acquired or which it may acquire during the term of this Agreement, and shall comply with the terms and conditions contained in the Confidentiality Statement attached hereto as Exhibit A and made part of this Agreement. Revised 02111102 page 5 of 11 9. Correspondent has in full force and effect and will continue to maintain a Fidelity bond and an errors and omissions policy or policies or mortgage banker's blanket bond covering all its activities hereunder, with terms acceptable to FNMA and FHLMC and shall provide to GMACS, on an annual basis or as required by GMACB, satisfactory evidence thereof. B. To Correspondent's knowledge, as to each loan application or file, Correspondent represents and warrants to GMACB, and its affiliates, the following: 1. To Correspondent's knowledge, each document furnished to GMACB is complete and accurate and contains no misleading information, has been prepared and executed and copies delivered as required by law, and all signatures and initials therein are authorized and genuine; foreclosures 2. To the best of Correspondents knowledge, there is no bankruptcy or pending or threatened against any prospective Borrower; 3. For each Loan purchased, the Borrower shall have no claims or defenses to the oan y reason of any act or omission of Correspondent or its directors, officers, employees, agents or contractors; 4. Correspondent has no adverse information concerning the Borrower or the property securing such Loan that can reasonably be expected to cause any governmental, quasi- governmental or private institutional lender or mortgage Insurer to regard the transaction as an unacceptable credit risk, cause any approved Loan to become delinquent or adversely affect the value or marketability of the Loan. 5, All loan yin applications requirements GIof respects with the requirements of this Agreement and the to comply GMACB. 6. Correspondent has compiled with all applicable federal, state and local laws, rules, and regulations, including without limitation, the Truth-In-Lending Act and Regulation Z thereunder, the Fair Credit Reporting Act; the Equal Credit Opportunity Act and Regulation B thereunder, the Real Estate Settlement Procedures Act and Regulation X thereunder, and State and Federal Fair Lending and Fair Housing Regulations and all other applicable local, state and federal laws, rules and regulations. 7. Correspondent understands that GMACB intends to sell and/or securitize closed loans to investors in the secondary market. Correspondent represents and warrants that in submitting applications or loan documentation to GMACB, Correspondent shall not submit in any loan application package any false, fraudulent or erroneous information or statements, or omit any material fact necessary to make any statement or information included in the loan application package true, accurate and understandable, and shall immediately, upon learning of the existence of any false, fraudulent or erroneous information or statements, disclose such information to GMACB. For purpose of this warranty, the term "submit" shall mean (a) submitting a loan application package or loan • documentation to GMACB with false. fraudulent or erroneous Information, with actual knowledge thereto; (b) submitting a loan application package or loan documentation to GMACB with false, fraudulent or erroneous information after failing to follow standard practices and procedures prevalent in the mortgage banking industry which, if followed, would have led to the discovery or disclosure thereof, (c) submitting a loan application package or loan documentation to GMACB with false, fraudulent or erroneous information where such information was or should have been within the knowledge or control of Correspondent; or (d) submitting a loan application package or loan documentation to GMACB containing an appraisal that contains false; fraudulent or erroneous information where such information was or should have been within the knowledge or control of Correspondent. Revised 02/11102 Page 6 of 11 8. Correspondent understands that GMACB is fully committed to the principle and spirit of providing full access to mortgage credit for all persons, regardless of race, color, religion, national origin, sex, age, handicap, familial status or marital status, the fact that part or all of the applicant's income comes from public assistance or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act or any other prohibited basis (all such items individually referred to as a "Prohibited Basis"). Correspondent represents and warrants that it shall not reject an application because of the location and/or age of the subject property, or in the case of a loan applicant or prospective loan applicant, vary the terms of the application procedure or refuse to accept a loan application because of a Prohibited Basis. 9. With respect to each loan application package or loan documents delivered by Correspondent to GMACB for a loan intended to be insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs uncle), Correspondent represents and warrants that Correspondent: (A) applicable FHANA regulations to originate an FHA or VA home mortgage loan; (B) has fully complied with all requirements, standards and guidelines under applicable FHA or VA regulations, as amended from time to time, pertaining to loan origination; and (C) has taken no action or failed to take any action, the effect of which would prevent it or GMACB from obtaining FHA insurance or VA loan guaranty or which would at any time invalidate, in whole or In part, the FHA insurance oVA loan for purchase by any submitted FHANA loan application which is subsequently approved Y GMACB. 10. No loan application package or loan documentation submitted by Correspondent shall constitute a Loan transaction which would be subject to coverage under the Home Ownership and Equity Protection Act (HOEPA) or Section 32 of Regulation Z of the Truth-In-Lending Act or which would otherwise be considered a "high cost" loan under applicable state law. 9. INDEMNIFICATION AND REPURCHASE Correspondent acknowledges that GMACB, and its affiliates, shall have relied upon the representations and warranties expressed in this Agreement and the Correspondent Manual. All of Correspondent's representations and warranties are and shall be true and shall survive as provided in Paragraph 7 herein. No representation or warranty made by Correspondent In connection with the purchase of each Loan by GMACB, or any of its affiliates, contains any untrue statement of any material fad or fails to state any material, fact necessary to make such representation or warranty not misleading. In addition to any other remedies of GMACB set forth herein or in the Correspondent Manual, Correspondent shalt repurchase applicable Loans and shall indemnify and hold GMACB, and its affiliates, harmless from losses (including the loss of servicing rights), damages, deficiencies, cfalms or expenses (including reasonable attorneys' fees) incurred by GMACB, or any of its affiliates, to the extent required by and In accordance with the provisions of the Correspondent Manual. In addition to all other remedies available to it, GMACB, and its affiliates, shall be entitled to offset any amounts it owes Correspondent by any amounts Correspondent is required to pay to GMACB, or an of its affillates, under this section and the sections of the Correspondent Manual relating to Repurchase and Indemnification. The indemnity provided in this Section shall remain in full force and effect regardless of any investigation made by GMACB, or any of its affiliates, or its representatives or any cancellation of this Agreement, and shall survive this Agreement as to each Loan for so long as any amount due from the Borrower remains outstanding and unpaid. Revised 02/11/02 Page 7 of 11 Upon receipt of notice of claim covered by.any indemnity or other indemnity in this Agreement, whether such claim appears to be valid or not, Correspondent shall immediately assume the representation of GMACB, or any of its affiliates, and the defense of such claim at its own cost with counsel and ishalebe directly rresponsible C oar the payment o f any approved ettlement award r Correspondent judgment relating to such claim. 10, RELATIONSHIP OF PARTIES It is agreed that Correspondent and GMACB are not partners or joint ventures, but shall have the status of and act in all matters hereunder as independent contractors. Correspondent shall hold funds collected on account of any Loan in trust for GMACB. Correspondent is not an agent create, or modify C any right obligation, or liability and Is intended of GMACB to any person whatsoever. extinguish, or It Is expressly understood that, notwithstanding the execution of this Agreement and the covenants and agreements contained herein, GMACB may make Loans with or without the assistance of Correspondent and may use the services of other vendors or lenders; and Correspondent may sell mortgage loans to other lenders. 11. JURY WAIYERIATTORNEY FEES AND EXPENSES If any legal action or proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach or default in connection with any of the provisions of this Agreement, the successful or prevailing party shall be entitled to immediately recover from the other party, its costs, plus reasonable attorneys' fees incurred in such action(s) or proceeding(s) In addition to any other relief to which it may be entitled. Except as expressly provided hereunder to the contrary, each party shall bear its own costs and expenses Incurred in connection.with the preparation of this Agreement and the performance of the obligations contemplated hereby. and agree consequences, After consultation with counsel, and with a all su is shall be hea d by a GMACB hereby waive all rights to demand a jury trial judge only. 12. WAIVERSIREMEDIES CUMULATW E GMACB's delay or failure to enforce any provision of this Agreement shall not constitute a waiver of that provision or any other provision or agreement with Correspondent. - - All remedies afforded by this Agreement shalt be cumulative and in addition to all other remedies provided herein or afforded by law or in equity, 13. NOTICES All notices required under this Agreement shall be considered given (i) when deposited in the United States Mail. certified mail, return receipt requested, (ii) on the third business day after mailing via regular first class mail, or (iii) on the next business day after mailing by a nationally recognized overnight mail carrier, bearing sufficient postage and addressed as set forth below, unless another address is designated in writing: Revised 02/11/02 Page 8 of 11 To: GMAC Bank 37 10 Kennett Pike Greenville, DE 18907 Attn: Chief Operating Officer With Copies To, GMAC Bank 100 Witmer Road Horsham, PA 19044 Attn: Wholesale Mortgage Lending, Credit Risk Dept. And GMAC Residential Holding Corporation 100 Witmer Road Horsham, PA 19044 Attn: General Counsel 14. ASSIGNMENT Correspondent shall not assign this Agreement or any of its rights hereunder. Neither shall Correspondent delegate any duty hereunder without the prior written consent of GMACB. Correspondent acknowledges that GMACB may assign any or all of its right under this Agreement and/or the Related Documents to any of its affiliates upon ten (10) days notice to Correspondent. 15. BROKERAGE Each party represents and warrants that there are no claims for brokerage commissions or finder's tees in connection with the transactions contemplated by this Agreement. Each party agrees to exonerate, indemnify, and hold harmless the other in respect to any and all losses sustained by the other as a result of liability to any broker or finder on basis of any arrangement made on, behalf of such party. 16. CAPTIONS; DEFINED TERMS The captions of each section In this Agreement are Included for convenient reference of the the obligations of the parties. Terms parties and in noway are intended to define, limit, or Imply used with an initial capital letter which are defined in the Correspondent Manual and not otherwise defined herein shall have the meaning given them by the Correspondent Manual. 17. ENTIRE AGREEMENT The exhibits attached hereto or material referred to In this Agreement, Including the Correspondent Manual, are incorporated by reference into this Agreement. To the extent there are differences between requirements as stated in the Correspondent Manual and as stated in this Agreement, the provisions of this Agreement shall control. This Agreement, the Correspondent Manual and the material referred to herein or therein or executed concurrently herewith constitute the entire Agreement and supersede any and all prior agreements, representations, and understandings of the parties, written or oral. No addendum, supplement, Revised 02111102 Page 9 of 11 modification or amendment of this Agreement shall be binding unless executed in writing by both parties hereto, however amendments to the Correspondent Manual shall be effective, as provided in Paragraph 13 above, upon their electronic or physical distribution date to Correspondent. Notwithstanding the foregoing, amendments to the Correspondent Manual relating to pricing and underwriting shall not apply to Loans which were registered prior to the electronic or physical distribution of such amendments to Correspondent. 18. SEVERABILITY In the event that any provision of this Agreement conflicts with applicable law, such conflict shall not affect the other provisions of this Agreement which can be given effect without the conflicting provisions, and to this end the provisions of this Agreement are declared to be severable. 19. NOTICE TO BORROWERS Correspondent shall mail notice of transfer of servicing to the Borrower of each Loan as required by federal law (RESPA). Such notice shall be in a form acceptable by GMACB. Such notice shall be - sent through the United States Mail, first class postage prepaid at the Correspondent's expense. 20. SOLICITATJON A. Neither Correspondent nor any affiliate of Correspondent shall solicit any Borrower of a Loan for the sale or renewal of insurance with respect to such Loan. B. Neither Correspondent nor any affiliate of Correspondent shall, during the remaining term of any of the Loans, take any action to personally, by telephone, by mail or otherwise, solicit the refinancing or prepayment of the Loans by the Borrowers, in whole or in part, or otherwise solicit the Borrowers for any purpose, without the prior written consent and approval of GMACB. C. Notwithstanding anything contained herein to the contrary, for purposes of this Agreement, solicitation shall not be deemed to include general advertisements directed to the public at large and contained in newspapers or other broadcast media. 21. GOVERNING LAW AND VENUE, an ,? This Agreement shalt be governed by and construed in accordance with the laws of the State of Delaware. Venue for any action arising out of relating to this Agreement, including the formation, validity, or interpretation thereof and the performance or breach thereof, shall be only in the State of Delaware. Each party consents that any State or Federal Court in the State of Delaware otherwise having jurisdiction shall also have jurisdiction of the parties. Revised 02111/02 Page 10 of 11 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. GMAC13 Superior ' tKartgege Corp °_(Corpor tion Name) By' Name d): •,'Stephen M. Curs , Title• President (SEAL) r .y+t:lti 1+ T 1 ! ^ ?iiks"f• ??C4R L e F { ,y r y / Revised 02/11/02 Page 11 of 11 GMAC Bank Whole Mortgage Lending EXHIBIT A CONFIDENTIALITY STATEMENT Correspondent agrees that any information and documents that are famished by GMACB for the purposes of performing the Services listed in Section 3 of the Agreement for itself or as agent for GMACM, or which are produced or are otherwise furnished to or come to Correspondent's attention are proprietary and shall be used only for the purposes of the Agreement. This information may include, without limitation: the terms of the Agreement, technicaspecifications ' and operating services and cnuals, services of products binations and information concerning current, future, or proposed products and services; product and services descriptions; financial information; infformati and tatted to mergers or acquisitions; passwords and security procedures; computer programs, documentation; GMACB, or any of its affiliates' customers and/or prospective client lists, Mortgage Loan files, and all other information relating in any way to the GMACB customer and/or prospective client and printouts; records; policies, practices and procedures; and any or all other information, data or materials relating to the business, trade secrets and technology, customers, clients, employees, business affairs, affiliates, subsidiaries and the affiliates of GMACB's parent organization (all of the foregoing collectively referred to as 'Information). Correspondent shall maintain the Information in confidence and maintain a secure system for its storage and handling. Correspondent further agrees to (a) restrict disclosure of Inforrnation solely to disclose any Information perso to who need to know the Information to perform under the Agreement, (b) not any third party or copy Information without GMACB's, or any of its affiliates, prior written approval , and (c) inform those third parties and other persons who receive Information of the confidential nature of the information and obtain their agreement to abide by the obligations set forth herein. The obligations imposed under the Agreement shall not apply to Information that is (a) made public by GMACB, or any of its affiliates, (b) rightfully becomes generally available to the public, (c) rightfully received from a third person having the legal right to disclose the Information free of any obligation of confidence. In the event that Correspondent. or any of its partners or employees, become legally compelled (by deposition, interrogatory, request for documents, subpoena, civil or criminal investigative demand or similar proper or to disclose that Information, ayoseekaadprotectiv orderror person shall other appropriate prior GMACB with prompt remedy. Correspondent acknowledges and agrees that any breach or threatened breach of any of the provisions of this Confidentiality Statement will result in Immediate and irreparable harm to GMACB, or any of its affiliates, and that any remedies, at law in such event will be inadequate. Correspondent agrees that such breach, whether threatened or actual, will give GMACB the right to terminate this Agreement immediately and obtain injunctive relief to restrain such disclosure or use. This right shall, however, be in addition to and not in lieu of any other remedles'at law or In equity. Upon termination of the Agreement, all copies of the information (including all electronic Imaging of the Information) will either be destroyed or returned to GMACB immediately upon request Correspondent agrees that it will not retain any copy, summary or extract of the Information or any related work papers rtification on any storage medium whatsoever. Upon request. Correspondent have been satisfied in c el N twithsfrom an appropriate officer that the requirements of this paragraph anything to the contrary contained herein, GMACB shall in no event have any obligation hereunder to destroy Mortgage Loan files or any documents related thereto. The provisions of this Confidentiality Statement shall survive the termination or expiration of the Agreement. Revised 02111/02 1 of 1 r 0 ` , . Page 1 of 3 Repurchase REO Loan Initial 4"tification WILL THOMPSON VICE PRESIDENT GMAC MORTGAGE, LLC 1100 VIRGINIA DRIVE, POST OFFICE BOX 8300 FT. WASHINGTON, PA 19034 Date of Notification: October 31, 2007 Action Requested: Remove This Loan From Our REO Inventory Note: Please remit the current amount due using Special Remittance Code 315 - Repurchase Proceeds. Refer to our Servicing Guide for specific instructions. Loan Information: additional loan details.) f Fannie Mae Loan No: or 1694959581 (See last page of letter Servicer Loan Number: JA0 ? TRIMMER Borrower(s): Property Address: 4467 YORK RD NEW OXFORD, PA 17350-9404 GMAC MORTGAGE, LLC Seller Name: 126660006 Seller No: GMAC MORTGAGE, LLC Servicer Name: Servicer No: 126660006 Brdked0riginator: NA Unable to Market REO Status: ted: Amount requested is subject to change daily. Amount Reques Findings. uhome nit bu t am a permanent chassis and Ineligible Property: The subject was a manufactured guidelines define a manufactured home as any ct was built on a permanent attached to a permanent foundation system. The subject foundation. Therefre, property the subject is steel chassis, which was attached to a permanent Fannie Mae' guidelines. F ?g?and defined as a manufactured home for the purposes publdicrreFederal cords, the Home subject was built in our guidelines require manufa r HUD m hos to in me 1built safety Standards established by 1973. Consequently, the loan was ineligible for del'roery to Fannie Mae' i an on tnation file. the subject property, Nate: As of the date of this fetter, we have not review {? a ?gili?fty the Therefore, if documentation is provided that supports - subsequent issues may be discovered in the future. fanniemae.com/QAS/control?actionResource=showReviewLe..• - 11/1/2007. https:l/guarantytechnology.e... . •-. Repurchase RLO Loan Initial 'tiftcation Page Z of 3 Fannie Mae Contacts: Underwriting Consultant: nae.com Underwriting Director: s.com la submitted than via Q eS3or by contacting Your Responses with additional informatiomay be Underwriting Consultant, if they are submitted , 2007. htt s:/lguarantytechnol0gy:efajmiem3e.qom/QA.S/control?actionRcsour?e=showReviewLe:?;,:,.11/1/20U7. .:::. P Page 3 of 3 11 . Repurchase REO Loan Initial ??'tification Additional Loan Information Fannie Mae Loan Number: 1694959681 Servicer Loan Number: 600884405 Borrower(s): JAMES E. TRIMMER Property Address: 4467 YORK RD NEW OXFORD, PA 17350-9404 Review Type: Post Foreclosure Review LTV: 90.00% CLTV: 90.000/0 HCLTV: NA Product: EA2 Occupancy: Principal Loan Purpose: NA Manufactured Property Type= AUS: DU Recommendation: NA Contract Number: P08584 Closing Date: 01/1912004 LPI Date: 0610112006 No Flood Insurance - Not a Special Flood Hazard Area Property; DU k Level 2 Loans; Desktop Ri s Special Feature Code Refer with Caution (Expanded Approval) iter Loan (Seller Did Not Submit to DU); Correspondent Third- d (s): erwr Un Party Origination; Cash-Out Refinance; Origination Appraiser: NA /2 esoµrcc=shovrRevz ae.. gwLe? ; .. oan-/QAS/coniro],2ac#onR ... . _ , : hops://gUara.i?tyteGhiiOlOgy: . G GMAC ResCap December 12, 2007 Patricia A. Colacicco Superior Mortgage Corp. 854 South White Horse Pike, Suite 1 Hammonton, NJ 08037 Re: Trimmer, James GMACM # 600884405 SMC# 133-02244 Dear Ms. Colacicco, Fannie Mae GMAC Mortgage Company, LLC to repurchase the subject loan. Resider i LLC Funding Company, LLC ("GMAC-RFC"), and/or GMAC Bank, and/or GMAC Mortgage, (collectively "GMACM") determined there is a breach of the representation and warranties regarding the subject loan that requires your attention. Transaction The loan closed on January 19, 2004 Audit Flndin s See attached investor findings. -Status The loan is currently due for July 1, 2006• Re resentatlons and Warranties igs hve on the investment quality of the subject estsaepurchaseiof this oar This repurchase request is Due to the material impact thesMfire iu GMAC-RFC, on behalf of GMAC q in accordance with the representations and warranties outlined in the Correspondent Agreement and Correspondent Manual. Resolution Process Repurchase funds or a written appeal with supporting documentation is due GMAC-RFC on or before December 27, 2007. If you agree with our findings and need repurchase figures and procedures or if you have any questions regarding the resolution of this matter, please contact me. 3 Si?cereiy, Cheryl Ste r Repurchase Account Manager Cheryl.stever@gmacrfc.com 952-979-2768 CC: Jason Kitch GMAC ResCap One Meridian Crossings suite 100 Minneapotis; MN 55429 952.657.7000 gmacrescap.com 0 Page 1 of 1 Enhanced Wire System Enhanced Wire System Transaction - FedWlre ID: 946 bank confirmed Status: Transaction No: 20080600020900 20080229L1LPBM60000048 Reference Info: 3100210730 (MAIN) Wire from, ERIOR MORTGAGE CORPORATION Ordering Customer: SUP 1395 RT 539 SUITE 2A TUCKERTON,NJ 08087 Account with institution: ' 0 1201467 BANK, NA s bank) (beneftclary EGG HARBOR TOWNSHIP, NJ Beneficiary customer: 2100018728719 GMAC Mortgage, LLC 1100 Virginia Drive Port Washington, PA 19034 Amount: $135038.44 Value date: 2/29/2008 Remittance Info: Reference for Beneficiary: att: M Simons Our Reference: // 600884405 2000 on 2/29/2008 8:46:10 AM Created by: 7000 on 2/29/2008 11:58:28 AM Approved by: 7000 on 2/29/2008 11:58:49 AM Submitted by: System Ref: 32319753 Back Print 3/21/2008 10:43:28 AM ET h s://www.stlnnb.blilk.com/vvke/view.asp?RegType=X&ID-946&BaokURLP=Transacti... 3/2112008 ttp U.9. DEPARTMW OF NOUBINO 6 URBAN DRV"PMBNT SETTLEMENT STATEMENT OMB No. 2602.0265 W04 pdggmlRlW,l062 (GEIMANDQRM I GEIMNNOMM 14) M. ITEMS R ? uen w a • . - - %) 11 1 ¦ Idrv 1 d¦ri Kam d..? - RvMm s ao.uul 008 ?- 3 1 $' 3 0 ru C3 ° fl; v w w A ." L, M R C a K a 0 I N v sQ z r d d o m ? A sa nm v ?° S ? S N i?.?p/ryxunlMiclaN? 1.1. DNA?anletl4 r w 0 N 0 0 a >.? C V N' 4 O $ C 01 to a (n m n 0 g 8 j a z 0 a cn 0 +-? rn m m F I A w M z n m x r F+ w 0 ro 0 VERIFICATION 4904, relating to unswom falsification to Subject to the penalties of 18 Pa. C.S. § Assistant General Counsel authorities, 1, Patrick M. Gannon, hereby certify that I am the and am authorized to make this verification on behalf of of Superior Mortgage Corp., rta e Corp. I have reviewed the foregoing and that the facts set forth Superior Mo g 9 therein are true and correct to the best of my knowledge, information and belief. Superior Mortga a orp. By: Patrick M. Cannon Dated: December 19, 2008 C. crz) Y /_ _ W C) -rt - j i y' J r -4 SHERIFF'S RETURN - REGULAR" CASE NO: 2009-00259 P ?.; COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SUPERIOR MORTGAGE CORP VS MARK E HILBERT & ASSOCIATES MICHAEL BARRICK Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTTrR MARK E HILBERT & ASSOCIATES DEFENDANT Sheriff or Deputy Sheriff of was served upon the at 2027:00 HOURS, on the 27th day of January , 2009 at 3607 RnfiRMnNT A17PNTTTP CAMP HILL, PA 17011 MARK E HILBERT by handing to ADULT IN CHARGE a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 18.00 Service 9.00 Postage .56 Surcharge 10.00 R. Thomas Kline .00 37.56 01/28/2009 MCNEES WALLACE NURICK Sworn and Subscibed to By. before me this day Depu Sheriff , of A.D. mom .rrw+ { . cn -rta c " . I "\ James L. Goldsmith, Esquire Attorney I.D. No. 27115 Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 (717) 232-2766 (fax) jgoldsmith@caldwellkearns.com Attorneys for Defendant Mark E. Hilbert & Associates SUPERIOR MORTGAGE CORP., Plaintiff, V. MARK E. HILBERT & ASSOCIATES, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : NO. 09-259 CIVIL TERM CIVIL ACTION - LAW PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: James L. Goldsmith, Esquire, hereby enters his appearance as counsel on behalf of Defendant Mark E. Hilbert & Associates in the above-captioned matter. Respectfully submitted, Date: February 17, 2009 By: , Ja s L. Golds ith, E quire orney I.D. N . 271 Caldwell & Kearn C. 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 (717) 232-2766 (fax) jgoldsmith@caldwellkearns.com Attorneys for Mark E. Hilbert & Associates. CERTIFICATE OF SERVICE AND NOW, this day of February, 2009, 1 hereby certify that I have served a copy of the within document on the following by depositing a true and correct copy of the same in the U.S. Mail at Harrisburg, Pennsylvania, postage prepaid, addressed to: Harvey Freedenberg, Esquire McNees Wallace & Nurick, LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108 By: 06241-019/144617 ` tai ? : r> r "'tea ' gip- t + James L. Goldsmith, Esquire Attorney I.D. No. 27115 Karen W. Miller, Esquire Attorney I.D. No. 200037 Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 (717) 232-2766 (fax) old mith «%caldwellkearns.coni kinillcr;' i catd?c llkearns.corn Attorneys for Mark E. Hilbert & Associates SUPERIOR MORTGAGE CORP., Plaintiff V. MARK E. HILBERT & ASSOCIATES, Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 09-259 Civil Term : CIVIL ACTION -LAW NOTICE TO PLEAD TO: Superior Mortgage Corp. c/o Harvey Freedenberg, Esquire Kimberly A. Selemba, Esquire McNees Wallace & Nurick LLC 100 Pine Street P. O. Box 1166 Harrisburg, PA 17108-1166 YOU ARE HEREBY NOTIFIED that the New Matter set forth herein contain averments against you to which you are required to respond within twenty (20) days after service thereof. Failure by you to do so may constitute an admission. Respectfully submitted, Dat???? 401 By: i At ey I. D. # I,V5 aren W. Miller, Esquire Attorney I. D. #200037 Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110-1533 (717) 232-7661 Attorney for Defendant, Mark E. Hilbert & Associates James L. Goldsmith, Esquire Attorney I.D. No. 27115 Karen W. Miller, Esquire Attorney I.D. No. 200037 Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 (717) 232-2766 (fax) i Lyoldsmith<<r:-:caldwel lkeanis.com kmi1ler6c .calclwellkearns.coni Attorneys for Mark E. Hilbert & Associates SUPERIOR MORTGAGE CORP., IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 09-259 Civil Tenn MARK E. HILBERT & ASSOCIATES, CIVIL ACTION -LAW Defendant ANSWER WITH NEW MATTER OF DEFENDANT MARK E. HILBERT & ASSOCIATES AND NOW, comes the Defendant Mark E. Hilbert & Associates, by and through its attorneys, Caldwell & Kearns, and files the within Answer with New Matter; and in support thereof, avers the following: 1. Denied. After reasonable investigation, Defendant Mark E. Hilbert & Associates, ("Hilbert"), is without knowledge or information sufficient to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied with strict proof thereof demanded by time of trial. 2. Denied as stated. Defendant Mark E. Hilbert & Associates is a business entity registered in the Commonwealth of Pennsylvania, having a principal place of business of 905 Eric Avenue, Mechanicsburg, Pennsylvania, 17055. By way of further answer, Mark E. Hilbert, 2 is the sole proprietor of Mark E. Hilbert & Associates and is a registered real estate appraiser in the Commonwealth of Pennsylvania. 3. Denied. After reasonable investigation, Defendant Hilbert is without knowledge or information sufficient to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied with strict proof thereof demanded by time of trial. 4. Denied. After reasonable investigation, Defendant' Hilbert is without knowledge or information sufficient to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied with strict proof thereof demanded by time of trial. 5. Denied. The Request for Appraisal, attached as Exhibit "A" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 6. Denied. The Uniform Residential Appraisal Report for the Property, attached as Exhibit "B" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 7. Denied. The Uniform Residential Appraisal Report for the Property, attached as Exhibit "B" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 8. Denied. The Uniform Residential Appraisal Report for the Property, attached as Exhibit "B" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 3 9. Denied. The Appraiser's Certification, attached as Exhibit "C" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 10. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. By way of further answer, the Note and Mortgage, attached as Exhibit "D" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 11. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. 12. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. By way of further answer, the Note and Mortgage, attached as Exhibit "D" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 13. Denied. Answering Defendant is without sufficient knowledge or information to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied, with strict proof thereof demanded at time of trial. By way of further answer, the Correspondent Agreement for Purchase and Sale of Residential Mortgage Loans, attached as Exhibit "E" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 4 14. Denied. The Correspondent Agreement for Purchase and Sale of Residential Mortgage Loans, attached as Exhibit "E" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 15. Denied. The Correspondent Agreement for Purchase and Sale of Residential Mortgage Loans, attached as Exhibit "E" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 16. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. 17. Denied. Answering Defendant is without sufficient knowledge or information to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied, with strict proof thereof demanded at time of trial. 18. Denied. Answering Defendant is without sufficient knowledge or information to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied, with strict proof thereof demanded at time of trial. By way of further answer, the October 31, 2007 notification of ineligibility, attached as Exhibit "F" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 19. Denied. GMAC's December 12, 2007 letter, attached as Exhibit "G" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 5 20. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. By way of further answer, the Correspondent Agreement, attached as Exhibit "E" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 21. Denied. Answering Defendant is without sufficient knowledge or information to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied, with strict proof demanded by time of trial. By way of further answer, the Transaction Confirmation, attached as Exhibit "H" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 22. Denied. Answering Defendant is without sufficient knowledge or information to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied, with strict proof demanded by time of trial. By way of further answer, the Settlement Statement, attached as Exhibit "I" to Plaintiffs Complaint, is a document which speaks for itself and any attempts by Plaintiff to characterize or interpret the same are specifically denied, with strict proof thereof demanded at time of trial. 23. Denied. Answering Defendant is without sufficient knowledge or information to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied, with strict proof demanded by time of trial. 24. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. 6 COUNT I NEGLIGENCE 25. Paragraph 25 does not contain factual averments; therefore, no response is deemed necessary. 26. Admitted. 27. Denied as stated. An employee of Defendant Hilbert, Robert Cassel, inspected and appraised the property, with Mark E. Hilbert signing the Appraisal Certification. 28. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. 29. Denied. Answering Defendant is without sufficient knowledge or information to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied, with strict proof demanded by time of trial. By way of further answer, the averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. 30. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. 31. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. 32. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. By way of further answer, Answering Defendant is without sufficient knowledge or information to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied, with strict proof thereof demanded at time of trial. 7 33. Denied. The averments of this paragraph are comprised of conclusions of law to which no response is deemed necessary, and strict proof thereof is demanded at time of trial. By way of further answer, Answering Defendant is without sufficient knowledge or information to form a belief as to the truth or accuracy of the averments of this paragraph, and the same are hereby denied, with strict proof thereof demanded at time of trial. WHEREFORE, Answering Defendant, Mark E. Hilbert & Associates, respectfully requests that this Honorable Court dismiss this Complaint, and enter judgment in its favor and against the Plaintiff without cost to it, but together with such costs, expenses and attorney's fees as authorized by law and that this Court deems necessary, just and appropriate under the circumstances. NEW MATTER 34. Paragraphs 1 through 33 above are incorporated herein by reference. 35. On or about December 1, 2003, Robert Cassel, an independent contractor, conducted an inspection and appraisal of the property for Plaintiff. 36. Pursuant to Mr. Cassel's appraisal, the home was valued at $166,500.00. 37. During the inspection and appraisal, it was determined that a stick built addition had been built onto the home. 38. The Uniform Residential Appraisal report was completed by Mr. Cassel and reviewed by Mark Hilbert, who relied upon Mr. Cassel's first-hand knowledge and inspection of the property. 39. Plaintiff refinanced the property. 8 40. Subsequent to the refinancing of the subject property, Plaintiff sold the mortgage loan to GMAC Financial Services ("GMAC"), who, in turn, attempted to sell the mortgage loan to Fannie Mae. 41. Upon information and belief, in or about the summer of 2006, the property owner defaulted on the mortgage loan. 42. During Fannie Mae's purchase proceedings, Fannie Mae discovered the property was a manufactured home, which led Fannie Mae to refuse to purchase the mortgage loan from GMAC. 43. On or about December 12, 2007, GMAC informed Plaintiff of Plaintiffs obligation to repurchase the mortgage on the property. 44. On or about February 28, 2008, Plaintiff repurchased the subject property from GMAC for $135,038.44. 45. On or about May 8, 2008, Plaintiff sold the property to a third party for $45,617.87. 46. Plaintiff suffered damages as a result of the depressed economic market and other market conditions, and not as a result of any act or failure to act by Answering Defendant or any agent or employee of Answering Defendant. 47. The valuation of the subject appraisal was accurate. 48. The value of the subject property was not effected by the alleged inaccurate and/or misleading information as averred by Plaintiff. 49. Plaintiff voluntarily purchased the property and/or loan and was not obligated to do so. 50. Plaintiff was not physically harmed by any act of Answering Defendant. 51. The property was not harmed by any act or omission of Answering Defendant. 9 52. Plaintiffs cause of action maybe barred in whole or in part by the applicable statute of limitations. 53. Plaintiffs causes of action may be barred in whole or in part by the doctrine of accord and satisfaction. 54. Plaintiffs causes of action may be barred in whole or in part by the doctrine of release. 55. Plaintiffs causes of action may be barred in whole or in part by the doctrine of waiver and/or estoppel. 56. Plaintiffs causes of action may be barred in whole or in part by the Statute of Frauds. 57. Plaintiffs causes of action may be barred in whole or in part by the Parol Evidence Rule. 58. Plaintiff failed to state a cause of action upon which relief may be granted under any theory of law. 59. Plaintiffs causes of action may be barred in whole or in part by the terms and conditions of the Appraiser's Certification. 60. Plaintiffs causes of action may be barred in whole or in part by assumption of the risks. 61. Plaintiffs causes of action may be barred in whole or in part by the doctrine of contributory negligence. 62. Plaintiffs causes of action may be barred in whole or in part by the economic loss doctrine. 63. Plaintiffs causes of action may be barred in whole or in part by the gist of the action doctrine. 10 64. Plaintiffs ability to recover damages may be barred by their failure to mitigate damages. 65. Plaintiffs causes of action may be barred in whole or in part by the merger doctrine. 66. Plaintiffs claims for recoverable damages are contrary to the laws of the Commonwealth of Pennsylvania. 67. If Plaintiff has sustained damages as alleged in its Complaint, which damages are specifically denied, then the damages were caused by the acts or omissions of entities or individuals over which Answering Defendant had no control, or no legal duty to control. WHEREFORE, Answering Defendant Mark E. Hilbert & Associates respectfully requests that this Honorable Court dismiss this Complaint, and enter judgment in its favor and against the Plaintiff without costs to it, but together with such costs, expenses and attorney's fees as authorized by law and that this Court deems necessary, just and appropriate under the circumstances. Respectfully submitted, Dated: Y'Vs-- ©f 06241-019/146843 CALDWELL & KEARNS B,y: J es L. s th, Esquire Attorne D. 7115 Karen filler, Esquire Attorney I.D. #200037 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 Attorneys for Defendant Mark E. Hilbert & Associates 11 VERIFICATION I, Mark E. Hilbert, sole proprietor of Mark E. Hilbert & Associates, verify that the averments in this document are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. 4904, relating to unsworn falsification to authorities. Date: 0 06241-019/146843 rk E. Hilbert CERTIFICATE OF SERVICE AND NOW, this day of 2009, I hereby certify that I have served a copy of the within document on the following by depositing a true and correct copy of the same in the U.S. Mail at Harrisburg, Pennsylvania, postage prepaid, addressed to: Harvey Freedenberg, Esquire Kimberly A. Selemba, Esquire McNees Wallace & Nurick LLC 100 Pine Street P. O. Box 1166 Harrisburg, PA 17108-1166 By: T,?l.? C 2009 A R I G hIll I I: 2 VN Harvey Freedenberg I.D. No. 23152 Kimberly A. Selemba I.D. No. 93535 McNees Wallace & Nurick LLC Attorneys for Plaintiff 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 232-8000 SUPERIOR MORTGAGE CORP., Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA V. MARK E. HILBERT & ASSOCIATES, Defendant NO. 09-259 Civil Term CIVIL ACTION -LAW REPLY TO NEW MATTER Plaintiff Superior Mortgage Corp. ("Superior"), by and through its attorneys, McNees Wallace & Nurick LLC, hereby files this Reply to the New Matter asserted by Defendant Mark E. Hilbert & Associates. 34. Superior incorporates herein by reference Paragraphs 1 through 33 of its Complaint. 35. Admitted in part and denied in part. It is admitted that Robert Cassel conducted an inspection and appraisal of property located at 4467 York Road, New Oxford, Pennsylvania 17350 (the "Property") on or around December 1, 2003. After reasonable investigation, Superior is without knowledge or information sufficient to form a belief as to the truth of the remaining averments of this paragraph and, therefore, denies these averments. 36. Admitted. 37. Denied. After reasonable investigation, Superior is without knowledge or information sufficient to form a belief as to the truth of these averments and, therefore, denies these averments. By way of further answer, the Uniform Residential Appraisal Report is a document that speaks for itself. 38. Admitted in part and denied in part. It is admitted that Mr. Cassel completed a Uniform Residential Appraisal Report. It is also admitted that Mark Hilbert reviewed the Report and signed an Appraiser's Certification, certifying that Robert Cassel personally inspected the Property and personally prepared all conclusions and opinions about the Property as set forth in the Appraisal Report. See Exhibit C to Complaint. After reasonable investigation, Superior is without knowledge or information sufficient to form a belief as to the truth of the remaining averments of this paragraph and, therefore, denies these remaining averments. 39. Denied as stated. As a result of the information contained in the Uniform Residential Appraisal Report, which estimated the value of the Property to be $166,500.00, Superior agreed to and did refinance the Property for $148,500.00. See Exhibit D to the Complaint. 40. Denied as stated. Subsequent to the refinancing of the Property, Plaintiff sold the mortgage loan for the Property to GMAC. Upon information and belief, GMAC subsequently sold the mortgage loan for the Property to Fannie Mae. 41. Admitted, upon information and belief. 42. Denied as stated. On or about October 31, 2007, Fannie Mae informed GMAC that the loan for the Property was ineligible for delivery to Fannie Mae because -2- the Property contained a manufactured home constructed prior to 1976. See Exhibit F to Complaint. 43. Admitted. By way of further answer, see Exhibit G to Complaint. 44. Admitted. By way of further answer, see Exhibit H to Complaint. 45. Admitted. By way of further answer, see Exhibit I to Complaint. 46. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. It is denied that Superior suffered damages as a result of a depressed economic market or any other market conditions. To the contrary, as a direct and proximate result of Hilbert's negligence in providing inaccurate, unreliable and false information in the Appraisal Report, Superior has suffered damages in the amount of $87,694.57, which represents the amount that Superior was required to pay to repurchase the Property from GMAC ($135,038.44) less the amount it received in return for the sale of the Property to Geiman ($45,617.87) and the amount it received from GMAC for refund of unearned insurance premiums ($1,726.00). 47. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. It is denied that the valuation of the Property in the appraisal was accurate. To the contrary, the valuation of the Property did not take into account the fact that the home on the Property was a manufactured home that was constructed prior to 1976. -3- 48. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. It is denied that the value of the Property was not affected by the inaccurate and misleading information contained in the Appraisal Report. To the contrary, the valuation of the Property did not take into account the fact that the home on the Property was a manufactured home that was constructed prior to 1976. 49. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. It is denied that Superior voluntarily purchased the Property and/or loan and was not obligated to do so. To the contrary, because the Appraisal Report contained inaccurate and misleading information regarding the Property, namely, that the Property did not contain a manufactured home constructed prior to 1976 when, in fact, the Property did contain a manufactured home constructed prior to 1976, Superior was obligated to repurchase the loan from GMAC. See Exhibit E to Complaint, §§ 8131 and 8137. 50. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied, with strict proof demanded at time of trial. 51. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. It is denied that the Property was not harmed -4- by any act or omission of Hilbert. To the contrary, as a direct and proximate result of Hilbert's negligence, the Property was not fairly and accurately appraised at its true value. 52. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 53. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 54. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 55. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 56. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the -5- averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 57. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 58. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 59. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 60. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 61. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. -6- 62. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 63. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 64. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 65. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 66. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the averments of this paragraph are denied. Strict proof thereof is demanded at the time of trial. 67. Denied. The averments of this paragraph constitute conclusions of law to which no response is required. To the extent a response is deemed required, the -7- averments of this paragraph are denied. It is denied that Superior's damages were caused by the acts or omissions of entities or individuals over which Hilbert had no control. To the contrary, as a direct and proximate result of Hilbert's negligence in providing inaccurate, unreliable and false information in the Appraisal Report, Superior has suffered damages in the amount of $87,694.57, which represents the amount that Superior was required to pay to repurchase the Property from GMAC ($135,038.44) less the amount it received in return for the sale of the Property to Geiman ($45,617.87) and the amount it received from GMAC for refund of unearned insurance premiums ($1,726.00). WHEREFORE Plaintiff Superior Mortgage Corp. demands judgment in its favor and against Defendant Mark Hilbert & Associates for an amount in excess of the jurisdictional amount requiring arbitration, together with interest, costs of suit, and such other relief as this Court deems just. McNEES WALLACE & NURICK LLC By AU^- Hey Freedenberg I.D. No. 23152 Kimberly A. Selemba I.D. No. 93535 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 232-8000 (717) 260-1740 Attorneys for Plaintiff Superior Mortgage Corp. Dated: April 24, 2009 -8- VERIFICATION Subject to the penalties of 18 Pa. C.S. §4904, relating to unswom falsification to authorities, I, Patrick M. Cannon, hereby certify that I am the Assistant General Counsel of Superior Mortgage Corp., and am authorized to make this verification on behalf of Superior Mortgage Corp. I have reviewed the foregoing and that the facts set forth therein are true and correct to the best of my knowledge, information and belief. Superior Mortgage Corp. By: Pq k M. C,4 Aj, / o Dated: April d ?-, 2009 CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a true and correct copy of the foregoing document was served via first class mail, postage prepaid, upon the following: James L. Goldsmith, Esquire Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110 Kimberl A. Selemba Attorneys for Plaintiff Superior Mortgage Corp. Dated: April 24, 2009 OF THE 2 APR 27 P!H 12: 1 1 ?? i ^f 11 ??j James L. Goldsmith, Esquire Attorney I.D. No. 27115 Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 (717) 232-2766 (fax) joldsmith@caldwellkearns.com Attorneys for Defendant Mark E. Hilbert & Associates SUPERIOR MORTGAGE CORP., Plaintiff, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. MARK E. HILBERT & ASSOCIATES, Defendant NO. 09-259 CIVIL TERM CIVIL ACTION - LAW MOTION OF DEFENDANT. MARK E. HILBERT & ASSOCIATES. TO EXTEND CASE MANAGEMENT DEADLINES AND NOW, comes the Defendant, Mark E. Hilbert & Associates, by and through their attorneys, Caldwell & Kearns, and files the within Motion to Extend Case Management Deadlines and in support thereof avers the following: 1. Plaintiff, Superior Mortgage Corp. ("Plaintiff') commenced this action by filing a Complaint on January 20, 2009, against Defendant, Mark E. Hilbert & Associates ("Defendant") 06241-019' 186223 2. On or about February 18, 2009, the undersigned entered his appearance on behalf of Defendant. Shortly thereafter, this matter was reassigned internally. 3. The undersigned has not participated in the defense of this action for almost three years. 4. Jeffrey McGuire, Esquire, previously of Caldwell & Kearns, had been actively handling this matter. Mr. McGuire has very recently departed from Caldwell & Kearns. 5. The undersigned has now resumed the defense of this action. 6. A brief review of the voluminous documents contained within the file reveals the necessity of additional discovery. 7. On December 6, 2011, this Honorable Court issued an Order setting forth case management deadlines. Specifically, discovery was ordered to be completed by January 27, 2012. 8. Due to the above-referenced sequence of events, defense counsel believes it will be impossible to comply with the current discovery deadline while effectively representing Defendant's best interests. 9. In addition, defense counsel is scheduled for several trials within the next few months. 10. No party to this action will be prejudiced by extending the case management deadlines. To the contrary, Defendant feels he will be prejudiced if the current deadlines are not extended. 11. Counsel for Plaintiff concurs with this request. 12. The parties will endeavor to formulate a mutually agreeable revised case 06241-019186223 management plan that accommodates the schedules of all counsel. 13. The parties have agreed to ask this Honorable Court for assistance if they are unable to promptly formulate a mutually agreeable revised case management plan. WHEREFORE, Defendant, Mark E. Hilbert & Associates, respectfully requests this Honorable Court grant this Motion to Extend Case Management Deadlines. Respectfully submitted, Date: By: Ja s L. Golds th Esquire rney I. D. 4o.01 15 Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 (717) 232-2766 (fax) jgoldsmith@caldwellkearns.com Attorneys for Mark E. Hilbert & Associates 06241-019'186223 CERTIFICATE OF SERVICE AND NOW, this day of J-W , 2012, 1 hereby certify that I have served a copy of the within document on the following by depositing a true and correct copy of the same in the U.S. Mail at Harrisburg, Pennsylvania, postage prepaid, addressed to: Kimberly A. Selemba, Esquire McNees Wallace & Nurick, LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 By: 06241-019/186223 SUPERIOR MORTGAGE CORP., IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 09-259 Civil Term MARK E. C-) HILBERT & ASSOCIATES, :CIVIL ACTION -LAW -03 Defendant z ORDER < r•? this 2 n? day of 2012, upon agreement 0ge AND NOW <= , ?- 4 r.; parties, it is hereby ORDERED and DECREED as follows: 1. All discovery shall be completed by July 2, 2012. 2. Plaintiffs expert reports shall be due no later than August 1, 2012. 3. Defendant's expert reports shall be due no later than August 16, 2012. 4. Plaintiffs supplemental reports shall be due no later than August 30, 2012. 5. Any dispositive motions shall be due no later than September 14, 2012. 6. This matter may be listed by either party for the first Civil Trial Term of 2013. BY THE COURT: yk ?, U, P I Distribution: ? Kimberly A. Selemba, Esquire, McNees Wallace & Nurick LLC, 100 Pine Street, P.O. Box 1166, Harrisburg, PA 17108-1166 ? David J. Evenhuis, Esquire, Caldwell & Kearns, P.C., 3631 North Front Street, Harrisburg, PA 17110 Ved ,y t FIL c t ,_ r� Mu TAR" 2013S p 92 pM is 314 Harvey Freedenberg CUMBERLAND COUNTY I.D. No. 23152 pENNSYLVANIA Kimberly A. Selemba I.D. No. 93535 McNees Wallace & Nurick LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 232-8000 Attorneys for Plaintiff SUPERIOR MORTGAGE CORP., IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 09-259 Civil Term MARK E. HILBERT & ASSOCIATES, CIVIL ACTION — LAW Defendant PRAECIPE TO DISCONTINUE TO THE PROTHONOTARY: Please mark the above-captioned matter as settled and discontinued with prejudice. McNEES WALLACE & NURICK LLC By Harvey reedenberg I.D. No. 23152 Kimberly A. Selemba I.D. No. 93535 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 232-8000 (717) 260-1740 Dated: September 11, 2013 Attorneys for Plaintiff CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a true and correct copy of the foregoing document was served via first class mail, postage prepaid, upon the following: David J. Evenhuis, Esquire Caldwell & Kearns, P.C. 3631 North Front Street Harrisburg, PA 17110 Q Kimberly k Selem a Attorneys for Plaintiff Dated: September 11, 2013