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August 30, 2000
Chase Mortgage Finance Corporation
343 Thornall Street
Edison, New Jersey 08837
Re: Chase Mortgage Finance Corporation - Multi-Class
Mortgage Pass-Through Certificates, Series 2000-S7
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Ladies and Gentlemen:
We have acted as counsel for Chase Mortgage Finance Corporation (the "Company"),
in connection with the sale by the Company of approximately $133,001,841.63 in
aggregate principal amount of Multi-Class Mortgage Pass-Through Certificates,
Series 2000-S7 (the "Certificates"). The Certificates are issued under the terms
of a Pooling and Servicing Agreement (the "Pooling and Servicing Agreement")
dated as of August 1, 2000, by and among the Company, Chase Manhattan Mortgage
Corporation, as Servicer and Citibank, N.A., as Trustee. The Class A-1, Class
A-2, Class A-3, Class A-4, Class A-P and Class A-R Certificates will be
purchased by Greenwich Capital Markets, Inc. ("Greenwich Capital") for resale to
the public pursuant to an Underwriting Agreement dated August 24, 2000, and a
Terms Agreement dated August 24, 2000 (together, the "Greenwich Capital
Underwriting Agreement") each by and between the Company and Greenwich Capital;
the Class M, Class B-1 and Class B-2 Certificates will be purchased by Deutsche
Bank Securities Inc. ("Deutsche Bank" and, together with Greenwich Capital, the
"Underwriters") for resale to the public pursuant to an Underwriting Agreement
dated August 24, 2000, and a Terms Agreement dated August 24, 2000 (together,
the "Deutsche Bank Underwriting Agreement" and, together with the Greenwich
Capital Underwriting Agreement, the "Underwriting Agreements"), each by and
between the Company and Deutsche Bank. Capitalized terms used and not defined
herein have the meanings given to them in the Prospectus Supplement.
We have examined a signed copy of the Registration Statement on Form S-3 (No.
333-76801) filed by the Company with the Securities and Exchange Commission (the
"Commission") pursuant to the
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Chase Mortgage Finance Corporation
August 30, 2000
Page 2
Securities Act of 1933, as amended (the "1933 Act"), in the form in which it
initially became effective (the "Registration Statement") and as amended to the
date hereof, the Company's Prospectus (the "Prospectus") dated February 23,
2000, and the Prospectus Supplement (the "Prospectus Supplement") dated August
25, 2000, relating to the Offered Certificates. We also have examined the
originals or copies, certified or otherwise identified to our satisfaction, of
all such records of the Company and all such agreements, certificates of public
officials, certificates of officers or representatives of the Company and
others, and such other documents, certificates and records as we have deemed
necessary or appropriate as a basis for the opinions set forth herein,
including, without limitation, (i) the Restated Certificate of Incorporation of
the Company; (ii) the By-Laws of the Company; (iii) copies of certain unanimous
consents adopted by the Board of Directors of the Company authorizing the
issuance and sale of the Certificates and purchase of the Mortgage Loans; (iv)
the Pooling and Servicing Agreement; (v) the forms of the Class A Certificates,
the Class M Certificates and the Class B Certificates and (vi) the Underwriting
Agreements.
In our examination, we have assumed the genuineness of all signatures, the
authenticity of all documents submitted to us as originals, the conformity of
all documents submitted to us as certified or photostatic copies to the original
documents and the authenticity of such documents. We have assumed that any
documents executed by any party other than the Company are the legal, valid and
binding obligation of such party. As to any facts material to the opinions
expressed herein that we did not establish independently or verify, we have
relied upon the truth, accuracy and completeness of the statements and
representations of the Company, its officers and other representatives, the
Trustee and others. Whenever the phrase "to the best of our knowledge" or "of
which we are aware" is used herein, it refers in each case to the actual
knowledge of the attorneys of this firm involved in the representation of the
Company in this transaction.
We express no opinion as to the effect of the laws of any jurisdiction other
than the laws of the State of New York, the General Corporation Law of the State
of Delaware and the federal laws of the United States of America.
Based upon and subject to the foregoing, we are of the opinion that:
(i) The Certificates have been duly authorized and, when
executed and authenticated as specified in the Pooling and Servicing Agreement
and delivered and paid for, will be validly issued, fully paid, nonassessable
and entitled to the benefits of the Pooling and Servicing Agreement.
(ii) Assuming (a) ongoing compliance with all of the
provisions of the Pooling and Servicing Agreement and (b) the filing of
elections, in accordance with the Pooling and Servicing Agreement, to be treated
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Chase Mortgage Finance Corporation
August 30, 2000
Page 3
as a "real estate mortgage investment conduit" (a "REMIC") pursuant to Section
860D of the Internal Revenue Code of 1986, as amended (the "Code") for federal
income tax purposes, each of the Master REMIC and Subsidiary REMIC will qualify
as a REMIC as of the Closing Date and each will continue to qualify as a REMIC
for so long as each complies with amendments after the date hereof to any
applicable provisions of the Code and applicable Treasury Regulations.
We hereby consent to the filing of this opinion as an Exhibit to the
Registration Statement and to the reference to this firm in the Registration
Statement and the related prospectus under the heading "Legal Matters", without
admitting that we are "experts" within the meaning of the Act or the rules and
regulations of the Securities and Exchange Commission issued thereunder with
respect to any part of the Registration Statement including this Exhibit.
Very truly yours,
MORGAN, LEWIS & BOCKIUS LLP
