Document/Exhibit Description Pages Size
1: 8-K Current Report 6 30K
2: EX-4.1 Instrument Defining the Rights of Security Holders 293 1.00M
3: EX-99.1 Miscellaneous Exhibit 40 284K
12: EX-99.10 Miscellaneous Exhibit 6 22K
13: EX-99.11 Miscellaneous Exhibit 11 50K
14: EX-99.12 Miscellaneous Exhibit 11 47K
15: EX-99.13 Miscellaneous Exhibit 10 38K
4: EX-99.2 Miscellaneous Exhibit 6 25K
5: EX-99.3 Miscellaneous Exhibit 18 89K
6: EX-99.4 Miscellaneous Exhibit 34 133K
7: EX-99.5 Miscellaneous Exhibit 15 66K
8: EX-99.6 Miscellaneous Exhibit 2 13K
9: EX-99.7 Miscellaneous Exhibit 7 27K
10: EX-99.8 Miscellaneous Exhibit 13 54K
11: EX-99.9 Miscellaneous Exhibit 9 31K
Exhibit 99.12
RADIAN GUARANTY INC.
1601 Market Street - Philadelphia, PA 19103 - (215) 231-1000
MORTGAGE POOL INSURANCE POLICY
RADIAN GUARANTY INC., a Pennsylvania corporation, (a stock insurance company
herein called the "Company") agrees to pay to the insured identified below, in
consideration of the premium paid or to be paid as specified herein, the loss
sustained by reason of the default in payments by a Borrower on any
Residential Mortgage Agreement insured under this policy and listed in the
attached Schedule A, subject to the terms and conditions contained herein.
--------------------------------------------------------------------------------
Insured: The Bank of New York, as Trustee with respect to the Security,
located at 101 Barclay Street, New York, New York 10286,
Attention: Corporate Trust MBS
--------------------------------------------------------------------------------
Policy Number Issuance Date Effective Date of Policy
06-043223 July 28, 2006 July 1, 2006
--------------------------------------------------------------------------------
Premium Rates and Due On the Issuance Date, a one-time upfront premium
Dates: equal to $3,577,424 payable in immediately available
funds by wire transfer to the account specified by
the Company.
Total Initial Principal $444,402,838
Balances:
Aggregate Loss 7.00%.
Percentage:
Aggregate Loss Limit: $31,108,198
Deductible Percentage: 3.50%.
Deductible Amount: $15,554,099, which is equal to the Deductible
Percentage of the Total Initial Principal Balances
of the Residential Mortgage Agreements listed in the
attached Schedule A.
Aggregate Risk Amount $15,554,099
Security: CWABS Asset-Backed Certificates Trust 2006-13
Special Conditions: This is a second-loss policy. The Company will not
be obligated to pay any loss under this Policy
unless and until the Insured's losses have exceeded
the Deductible Amount. Claims for losses shall be
filed with the Company even if the Insured's losses
have not reached the Deductible Amount. If any claim
is denied by the Company, the related loss will not
be included in the total of the Insured's losses for
purposes of calculating whether such losses have
exceeded the Deductible Amount.
The Company shall not be liable for and this Policy
shall not apply to, extend to or cover any loss for
which a claim is made in connection with an act of
Fraud (including but not limited to any breach of a
representation or warranty contained in the attached
Exhibit A).
With respect to each Residential Mortgage Agreement
listed in the attached Schedule A, the Insured shall
comply with the requirements of Condition 6 herein
as a condition precedent to any obligation of the
Company under this Policy in respect thereof. The
failure of the Insured to comply with any of the
foregoing conditions precedent will give the Company
in its sole discretion, the right to declare any
liability or obligation under this Policy null and
void.
--------------------------------------------------------------------------------
CONDITIONS
1. Definitions
-----------
The terms set forth below shall have the specified meanings when used in
this Policy. Capitalized terms used and not defined in this Policy shall
have the respective meanings assigned to such terms in the Transaction
Agreements.
A. "Policy" is this policy of insurance and all applications,
commitments, endorsements, schedules and exhibits relating hereto,
all of which are incorporated by reference herein.
B. "Schedule A" is the listing of Residential Mortgage Agreements
which are insured under this Policy.
C. "Insured" is the Person designated on the face of this Policy. The
Insured may contract with any other Person to perform the
Insured's obligations under this Policy.
D. "Person" is any individual, corporation, partnership, association
or other entity.
E. "Borrower" is the Person required to repay the debt obligation
created pursuant to a Residential Mortgage Agreement insured under
this Policy.
F. "Default" occurs when the Borrower becomes in arrears in an amount
equal to or greater than one (1) monthly principal and interest
payment due under the terms of the Residential Mortgage Agreement
or violates any other term or condition of the Residential
Mortgage Agreement which is a basis for a foreclosure action.
G. "Three (3) Months in Default" occurs when the Borrower becomes in
arrears in an amount equal to or greater than three (3) monthly
principal and interest payments due under the terms of the
Residential Mortgage Agreement.
H. "Residential Mortgage Agreement" is any note and any mortgage,
bond, deed of trust, or other instrument used in connection with
the Borrower's loan and evidencing a first lien or charge on
residential real property.
I. "Residential" is a type of building or condominium unit which is
designed for occupancy by not more than four families.
J. "Good and Merchantable Title" is title free and clear of all
liens, defects encumbrances, covenants, conditions, restrictions
and easements, including but not limited to rights of parties in
possession, except for:
(1) the lien of current general real estate taxes and other
public charges and assessments not yet due and payable; and
(2) easements for public utilities, covenants, conditions,
restrictions, rights of way, building restrictions, the
effect of building laws or regulations with which the
improvements on the property comply and other matters of
public record, which in any case do not impair the use of
the property and the improvements thereon for their intended
purposes: and
(3) tenants under leases approved in writing by the Insured;
and except for any other impediments which will not have an
adverse effect on the marketability of the title.
K. "Approved Sale" is (1) a sale of property acquired by the
Insured because of a Default by Borrower and to which the
Company has given prior approval, (2) a foreclosure or
trustee's sale of a property to a third party at a price
equal to or exceeding the maximum amount specified by the
Company to be bid by the Insured, (3) the acquisition of a
property by or approved by the insurer pursuant to a Primary
Policy, or (4) the acquisition of a property by the Company
pursuant to Condition 8D herein.
L. "Initial Principal Balance" is the unpaid principal balance
of a Residential Mortgage Agreement at the Effective Date as
listed on Schedule A.
M. "Total Initial Principal Balances" is the sum of the Initial
Principal Balances of all of the Residential Mortgage
Agreements listed in the attached Schedule A.
N. Total Amortized Principal Balances" is the sum of the unpaid
principal balances of the Residential Mortgage Agreements
listed in the attached Schedule A which were outstanding at
the beginning of the month.
O. "Security" is the bond(s), certificate(s), or other security
instrument(s) identified or referred to on the face of this
policy.
P. "Fraud" is any claim where fraud, error, omission,
misrepresentation, dishonesty, negligence or similar
occurrence with respect to any Residential Mortgage
Agreement has taken place on the part of a person, including
without limitation, any appraiser, any builder or developer,
or any other party involved in the origination or servicing
of the Residential Mortgage Agreement.
Q. "Qualified" means the Company is duly qualified under
applicable state laws as a mortgage guaranty insurance
company, duly authorized to write the insurance provided by
this Policy, and has a financial strength rating of not
lower than "Baa3" from Moody's and "BBB-" from S&P.
R. "Primary Mortgage Guaranty Insurance Policy" or "Primary
Policy" is a policy, certificate, or guarantee, issued with
respect to an individual Residential Mortgage Agreement
insured under this Policy, by a mortgage guaranty insurance
company or government agency or instrumentality which
provides coverage required by Condition 7 herein. The
existence of any and all such Primary Policies with respect
to individual Residential Mortgage Agreements is indicated
on Schedule A.
S. "Transaction Agreements" means the agreements related to the
Security, without regard to any amendments, supplements or
other modifications to which the Company has not given its
written consent.
T. "Servicer" means Countrywide Home Loans Servicing LP.
U. "Effective Date" means the effective date listed on the face
of this Policy.
V. "Originator" means Countrywide Home Loans, Inc.
2. Effective Date, Policy Period, Termination and Cancellation
-----------------------------------------------------------
The effective date of this Policy shall be the date specified on the
face hereof. This Policy shall continue in force (1) as to each
Residential Mortgage Agreement listed in the attached Schedule A, until
it has been paid in full, is no longer represented by the Security or is
otherwise liquidated or (2) until the Security is redeemed or otherwise
paid in full. If at any time the Company ceases to be Qualified, the
Insured may terminate this Policy upon written notice by it to the
Company, and thereupon no further premium shall be due under this
Policy. The Company shall use all diligent effort to remain qualified
under applicable state laws as a mortgage guaranty insurance company,
duly authorized to write the insurance provided by this
Policy. Except as provided in this Condition and Condition 3 herein,
there is no right of cancellation under this Policy.
3. Premiums
--------
A. The premium for this Policy shall be paid to the Company in the
manner and at the Premium Rates specified on the face hereof.
Failure to pay any installment of the premium within thirty (30)
days after receipt of notice from the Company that such
installment is due and unpaid will terminate the liability of the
Company with respect to the coverage contained in this Policy, and
the Policy thereupon shall be canceled. The Company will provide
the Insured with prior written notice mailed to the last known
address of the Insured at least thirty (30) days in advance of the
effective date of such cancellation. Except as otherwise provided
herein, there shall be no refund of premium under this Policy.
B. If the aggregate losses under this Policy reach the Aggregate Loss
Limit specified in Condition 8F herein, the total premium under
this Policy is due and shall remain due, provided, however, that
the premium shall continue to be calculated and paid in accordance
with Condition 3A above.
4. Assumptions
-----------
If a Residential Mortgage Agreement listed in Schedule A is assumed, the
coverage under this Policy shall remain in force if the original
Borrower is not released from personal liability. If the original
Borrower by an assumption is released from personal liability on a
Residential Mortgage Agreement listed in Schedule A, the liability of
the Company for coverage under this Policy as to such Residential
Mortgage Agreement shall terminate unless the Company approves the
assumption in writing. The Insured shall provide the Company with the
information and documentation required by the Company. The Company shall
not unreasonably withhold approval of an assumption.
5. Notice of Prepayments and Assumptions
-------------------------------------
Unless otherwise mutually agreed by the Insured and the Company, the
Insured shall each month provide the Company with: (1) a listing of
those Residential Mortgage Agreements which have been prepaid in full,
which have been assumed or as to which there have been losses, and (2) a
listing of those Residential Mortgage Agreements which are no longer
covered by Primary Mortgage Guaranty Insurance Policies pursuant to
Condition 7 herein.
6. Notice of Default
-----------------
Within fifteen (15) days after the Insured receives notice or otherwise
becomes aware that:
A. A Borrower is Three (3) Months in Default, as defined herein, or
B. Proceedings to acquire title to a Borrower's property have been
commenced,
whichever event occurs first, notice thereof shall be given to the
Company by the Insured upon the form furnished by the Company, provided,
however, that failure of the Company to furnish forms shall not relieve
the Insured of the obligation to give notice in any reasonable form
within the required time. Thereafter, the Insured shall report monthly
to the Company in summary form the status of the Borrower's account,
until a claim is submitted to the Company or until the Borrower is less
than Three (3) Months in Default. Notice of Default shall also be given
to the insurer of any Primary Policy in accordance with the terms and
conditions of such Primary Policy, but in no event later than the time
notice of Default is given to the Company under this Policy.
7. Primary Policies
----------------
As a condition precedent to payment of any loss as may be determined to
be due under this Policy, the Insured shall maintain any Primary Policy
which was in forces as of the Effective Date of this Policy and which is
not cancelable under the terms of the related Residential Mortgage
Agreement or applicable law.
8. Loss Computation and Conditions
-------------------------------
A. Advances - In the event of Default, it shall be a condition
precedent to payment of a claim on any Residential Mortgage
Agreement that the Insured advance: (1) hazard insurance premiums,
(2) real estate property taxes, (3) property protection and
preservation expenses, (4) property sales expenses, and (5)
foreclosure costs (including court costs and reasonable attorneys
fees), in each case to the extent not constituting Nonrecoverable
Servicing Advances.
B. Restoration - In the event of Default, if there is any physical
loss or damage to the property from any cause, whether by
accidental means or otherwise, it shall be a condition precedent
to payment of a claim on the Residential Mortgage Agreement that
the Insured restore the property to its condition at the time of
the issuance of this Policy, reasonable wear and tear excepted.
C. Computation of Loss - Subject to the requirement of a Primary
Policy pursuant to Condition 7 herein, the Deductible Amount and
the Aggregate Loss Limit contained in Condition 8F below, the
amount of loss payable to the Insured on each individual claim
shall be:
the total of:
(1) the amount of the unpaid principal balance at the time of an
Approved Sale of the property,
(2) subject to Condition 9C herein, the amount of the
accumulated delinquent interest computed to the date of
claim settlement at the Residential Mortgage Agreement rate
of interest, and
(3) the amount of advances made by the Insured under Condition
8A above,
less:
(4) the net proceeds upon an Approved Sale of the property.
(5) any amount received by the Insured pursuant to any
applicable Primary Policy as required by Condition 7 herein.
D. Loss Payment Option - Subject to the requirement of a Primary
Policy pursuant to Condition 7 herein, the exhaustion of the
Deductible Amount and the Aggregate Loss Limit contained in
Condition 8F below, in lieu of paying the loss determined by the
computation in Condition 8C above, the Company may, at its option,
pay the Insured the total of the amounts under clauses (1), (2)
and (3) of Condition 8C above, less any amount received by the
Insured pursuant to any applicable Primary Policy as required by
Condition 7 herein. As a condition precedent to the payment of any
sum under this loss payment option, the Insured shall provide the
Company with Good and Merchantable Title to the property. Within
thirty (30) days after the property is sold by the Company, the
Company shall give written notice to the Insured of the net amount
received for such sale.
E. Discharge of Obligation - Any claim payment by the Company
pursuant to Condition 8C above or loss payment pursuant to
Condition 8D above shall be a full and final discharge of its
obligation with respect to such claim or loss under the terms of
this Policy.
F. Aggregate Loss Limit - Notwithstanding the provisions of
Conditions 8C and 8D above, the Aggregate Loss Limit of the
Company under this Policy is equal to the Aggregate Loss
Percentage of the Total Initial Principal Balances of the
Residential Mortgage Agreements listed in the attached Schedule,
as indicated and subject to the Special Condition on the face of
this Policy. The aggregate losses are the sum of losses paid by
the Company pursuant to Condition 8C or 8D above, reduced by any
net amount the Company receives upon disposal of any property and
by any other reimbursement that the Company receives for such
losses. When the aggregate losses paid by the Company under this
Policy reach an amount equal to the Aggregate Loss Limit, the
liability of the Company to pay any additional claims for loss
ceases until the aggregate losses are reduced to an amount below
the Aggregate Loss Limit.
G. Aggregate Risk Amount - The Aggregate Risk Amount of the Company
under this Policy is equal to the Aggregate Loss Limit less the
Deductible Amount. The Aggregate Risk Amount is the maximum
aggregate amount the Company will pay under this Policy. When
payments by the Company have exceeded the Aggregate Risk Amount
the liability of the Company to pay any additional claims for loss
ceases.
9. Submission and Payment of Claims
--------------------------------
A. Claims with Primary Policy - If a Primary Policy is required on a
Residential Mortgage Agreement pursuant to Condition 7 herein, it
shall be a condition precedent to submission and payment of a
claim on such Residential Mortgage Agreement under this Policy
that the Insured first submit and settle any and all claims for
loss under the Primary Policy. If the Insured negotiates a claim
settlement on a basis other than on conditions stated in the
Primary Policy, the Insured must obtain the consent of the Company
to such settlement. A claim for loss may be filed with the Company
on the appropriate form provided by the Company within sixty (60)
days after any and all claim(s) for loss have been settled and
paid under the Primary Policy or within sixty (60) days after the
Insured has conveyed title to the property pursuant to an Approved
Sale, whichever occurs later, and shall be accompanied by such
documents and other information as are reasonably requested by the
Company. The Company shall not unreasonably withhold the approval
necessary for such an Approved Sale. The Company is not liable
under this Policy for any amount(s) of claims for losses under a
Primary Policy
B. Claims without a Primary Policy - Unless otherwise mutually
agreed, a claim for loss may be filed with the Company on the
appropriate form provided by the Company within sixty (60) days
after the Insured has conveyed title to the property pursuant to
an Approved Sale and shall be accompanied by such documents and
other information as are reasonably requested by the Company. The
Company shall not unreasonably withhold the approval necessary for
such an Approved Sale.
C. Failure to File - Failure to file a claim for loss within sixty
(60) days after a claim could first be filed under Condition 9A or
9B above shall be deemed an election by the Insured to waive any
rights to claim payment under the terms of this Policy.
D. Loss Payments - Any payment of loss required to be made to the
Insured with respect to any claim shall be payable within sixty
(60) days after receipt by the Company of such claim, provided
that, if the Company shall within twenty (20) days after the
filing of the claim request additional information necessary to
complete its review of the claim, then the sixty (60) day period
shall be suspended until the Company receives the requested
information.
10. Where Notice is Given
---------------------
All notices, claims, tenders, reports and other data required to be
submitted to the Company by the Insured shall be mailed postpaid to:
Claims Department, Radian Guaranty Inc., 1601 Market Street,
Philadelphia, Pennsylvania 19103. The Company may change this address by
giving written notice to the Insured. All notices to the Insured shall
be mailed postpaid to it at its address shown on the face of this
Policy.
11. To Whom Provisions Applicable
-----------------------------
The provisions of this Policy shall inure to the benefit of and be
binding upon the Company, the Insured, and any of their respective
successors and assigns.
12. Suit
----
No suit or action on this Policy for recovery of any claim shall be
sustained in any court of law or equity unless all material conditions
of this Policy have been complied with, except that a condition may be
specifically waived by the Company in writing. A suit against the
Company must be commenced within three (3) years after the loss can be
determined.
13. Waiver of Conditions
--------------------
No condition of the Policy, amendment or endorsement thereto shall be
deemed waived, altered or otherwise compromised unless stated in writing
and duly executed. Each of the conditions of this Policy is severable,
and a waiver, alteration or compromise of one condition shall not be
construed as a waiver, alteration or compromise of any other condition.
14. Servicer Reports
----------------
In addition to any reporting requirements specified in this Policy, the
Servicer agrees to forward to the Company any monthly report that is
required to be delivered to the Trustee, within five (5) business days
of receipt.
15. Conflict with Laws
------------------
Any provision of this Policy which is in conflict with the laws of the
jurisdiction in which it is effective is hereby amended to conform with
the minimum requirements of such laws.
16. Governing Law
-------------
This Policy shall be governed by and construed in accordance with the
internal laws of the Commonwealth of Pennsylvania.
IN WITNESS WHEREOF, The Company has caused its Corporate Seal to be
hereto affixed and these presents to be signed by its duly authorized officer.
RADIAN GUARANTY INC.
By: /s / Elizabeth A. Maffey
------------------------
Name: Elizabeth A. Maffey
Title: Senior Vice President
SCHEDULE A
Residential Mortgage Agreements Insured by the Policy
-----------------------------------------------------
[On file with the Trustee.]
EXHIBIT A
---------
Representations and Warranties
------------------------------
A. The description of each Residential Mortgage Agreement in the attached
Schedule A submitted to the Company by the Originator is true and
accurate in all material respects. This information shall be deemed to
be incorporated herein by this reference as if set forth in full. The
Residential Mortgage Agreements have been submitted to the Company and
are attached as Schedule A hereto.
B. The property identified as the security for each Residential Mortgage
Agreement listed in Schedule A consists of real property improved by a
residential one-to four-family dwelling located in the United States of
America.
C. The original appraised value of the property securing each Residential
Mortgage Agreement listed in the attached Schedule A as of the
origination of each loan is accurately set forth in Schedule A.
D. The original principal balance of each Residential Mortgage Agreement
listed in Schedule A is accurately set forth on such Schedule A.
E. A credit report with FICO score (or equivalent approved by the Company)
was obtained and utilized in the underwriting of each Residential
Mortgage Agreement listed in Schedule A. This FICO score (or equivalent
approved by the Company) is accurately set forth on the Schedule. This
FICO score is the middle of three (3) scores, or the lower of two (2)
scores if only two (2) scores were available.
F. Each Residential Mortgage Agreement listed in the attached Schedule A
was underwritten at the time it was originated in a manner materially
consistent with the Originator's underwriting guidelines (the
"Underwriting Guidelines"). Any material change to the Underwriting
Guidelines requires the Company's written approval prior to submission
of loans.
G. Each Residential Mortgage Agreement listed in the attached Schedule A is
secured by a first mortgage lien on a Residential property.
H. As of the Effective Date of this Policy, each Residential Mortgage
Agreement listed in the attached Schedule A is not thirty (30) days or
more past due as of July 1, 2006 on a scheduled payment. For the
avoidance of doubt, a Residential Mortgage Agreement is considered
current as of the Effective Date if the customer is due for the June 1,
2006 or later scheduled payment.
I. Each Residential Mortgage Agreement listed in the attached Schedule A
will be serviced by the Servicer in a manner materially consistent with
the Servicer's servicing guidelines. The Servicer will exercise the same
care for each Residential Mortgage Agreement listed in Schedule A that
it customarily employs and exercises in servicing and administering
mortgage loans for its own account. Any transfer of servicing to a
counterparty other than the Servicer requires the Company's prior
written approval.
J. The Insured will pay all applicable premium taxes on Residential
Mortgage Agreements listed in Schedule A where the related properties
are located in the State of Kentucky or West Virginia.
K. Each Residential Mortgage Agreement listed in Schedule A was originated
in compliance with all applicable laws and regulations.
L. None of the Residential Mortgage Agreements listed in the attached
Schedule A is secured by a manufactured home.
Notwithstanding any investigation by the Company, the representations
and warranties set forth above are material inducements to the Company
to extend mortgage insurance coverage on the Residential Mortgage
Agreements listed in Schedule A. The Company has relied on and shall
continue to rely upon the accuracy and completeness of each of the above
representations and warranties. The Insured agrees that the Company
shall not be liable for and this Policy shall not apply, extend to or
cover any loan (s) whose terms do not satisfy each of the criteria set
forth above. Notwithstanding any contrary or otherwise inconsistent
provision of the Policy or any other document, agreement or instrument,
the above representations and warranties shall survive the issuance of
this Policy and shall continue in full force and effect throughout the
term of this Policy.
Dates Referenced Herein and Documents Incorporated by Reference
| Referenced-On Page |
|---|
| This ‘8-K’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| Filed on: | | 8/11/06 |
| For Period End: | | 7/28/06 | | 1 | | | | | 8-K |
| | 7/1/06 | | 1 | | 10 |
| | 6/1/06 | | 10 |
| List all Filings |
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