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202404012 <br />(b) Mortgage Insurance Agreements. Mortgage Insurance reimburses Lender for certain losses <br />Lender may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the <br />Mortgage Insurance policy or coverage. <br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and <br />may enter into agreements with other parties that share or modify their risk, or reduce losses. These <br />agreements may require the mortgage insurer to make payments using any source of funds that the <br />mortgage insurer may have available (which may include funds obtained from Mortgage Insurance <br />premiums). <br />As a result of these agreements, Lender, another insurer, any reinsurer, any other entity, or any affiliate <br />of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be <br />characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing <br />or modifying the mortgage insurer's risk, or reducing losses. Any such agreements will not: (i) affect <br />the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan; <br />(ii) increase the amount Borrower will owe for Mortgage Insurance; (iii) entitle Borrower to any <br />refund; or (iv) affect the rights Borrower has, if any, with respect to the Mortgage Insurance under <br />the Homeowners Protection Act of 1998 (12 U.S.C. § 4901 et seq.), as it may be amended from time <br />to time, or any additional or successor federal legislation or regulation that governs the same subject <br />matter ("HPA"). These rights under the HPA may include the right to receive certain disclosures, to <br />request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated <br />automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at <br />the time of such cancellation or termination. <br />12. Assignment and Application of Miscellaneous Proceeds; Forfeiture. <br />(a) Assignment of Miscellaneous Proceeds. Borrower is unconditionally assigning the right to <br />receive all Miscellaneous Proceeds to Lender and agrees that such amounts will be paid to Lender. <br />(b) Application of Miscellaneous Proceeds upon Damage to Property. If the Property is damaged, <br />any Miscellaneous Proceeds will be applied to restoration or repair of the Property, if Lender deems <br />the restoration or repair to be economically feasible and Lender's security will not be lessened by such <br />restoration or repair. During such repair and restoration period, Lender will have the right to hold <br />such Miscellaneous Proceeds until Lender has had an opportunity to inspect the Property to ensure the <br />work has been completed to Lender's satisfaction (which may include satisfying Lender's minimum <br />eligibility requirements for persons repairing the Property, including, but not limited to, licensing, <br />bond, and insurance requirements) provided that such inspection must be undertaken promptly. Lender <br />may pay for the repairs and restoration in a single disbursement or in a series of progress payments <br />as the work is completed, depending on the size of the repair or restoration, the terms of the repair <br />agreement, and whether Borrower is in Default on the Loan. Lender may make such disbursements <br />directly to Borrower, to the person repairing or restoring the Property, or payable jointly to both. <br />Unless Lender and Borrower agree in writing or Applicable Law requires interest to be paid on such <br />Miscellaneous Proceeds, Lender will not be required to pay Borrower any interest or earnings on such <br />Miscellaneous Proceeds. If Lender deems the restoration or repair not to be economically feasible or <br />Lender's security would be lessened by such restoration or repair, the Miscellaneous Proceeds will be <br />applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if <br />any, paid to Borrower. Such Miscellaneous Proceeds will be applied in the order that Partial Payments <br />are applied in Section 2(b). <br />NEBRASKA -Single Family -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT <br />Wolters Kluwer Financial Services, Inc. <br />2024081524.1.0.5558-N20240219Y <br />XXXX131596 <br />Form 3028 07/2021 <br />02/2024 <br />Page 12 of 21 <br />