Properties listed with the following two logos are eligible: and

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1 PRODUCT DESCRIPTION 15 and 30 year Fixed Rate FNMA only Eligible properties must be owned by Fannie Mae (as a result of foreclosure or other similar action such as deed-in-lieu of foreclosure), sold by Fannie Mae to the borrower(s), and designated by Fannie Mae as eligible for a HomePath Renovation Mortgage. Must document the file with the appropriate pages printed from HomePath website showing that the property was eligible for HomePath Renovation financing. Printed property page must include the date and the following information: o The property address o The REO ID o Bedroom count o Eligible HomePath Renovation Mortgage logo(s): Properties listed with the following two logos are eligible: and Properties listed with only a HomePath Renovation logo are eligible: Properties listed with only a HomePath Mortgage logo are ineligible: Complete loan file (including credit and renovation documents) must be submitted to Correspondent lending for review prior to loan closing PRODUCT CODE CF15-HPR (15 year Fixed Rate Conforming Loan Amount) CF30-HPR (30 year Fixed Rate Conforming Loan Amount) CF30-HPRHP (30 year Fixed Rate Higher Priced Mortgage Loan) QUALIFYING RATE AND RATIOS Maximum qualifying ratios are determined by DU (not to exceed 50% DTI) TYPES OF FINANCING Purchase only All other financing types Ineligible Buydowns are ineligible MyCommunityMortgage (MCM) loans are ineligible MAX LOAN AMOUNT Conforming loan amounts only (Agency High Balance Loan Amounts are ineligible) Page 1 of 12 Rev. 2/28/14

2 LTV/CLTV Primary Residence o 1 Unit 660 FICO Score 75.01% - 95% LTV/CLTV NOTE: Maximum LTV/CLTV eligible up to 97% on DU 9.0 when delivered by April 30th and purchased by May 31, 2014 o Maximum CLTV eligible up to 105% if second mortgage is a Community Second 620 FICO Score <= 75% LTV/CLTV o 2 Unit 660 FICO Score <= 85% LTV/CLTV o 3-4 Unit 640 FICO Score <= 75% LTV/CLTV Second Home o 1-Unit 680 FICO Score 75.01% - 90% LTV/CLTV 620 FICO Score <= 75% LTV/CLTV Investment Property o 1-Unit 680 FICO Score 75.01% - 85% LTV/CLTV FL Condos FICO 65.01% - 75% LTV/CLTV 620 FICO Score <= 75% LTV/CLTV FL Condos FICO <= 65% LTV/CLTV o 2-4 Unit 660 FICO Score <= 75% LTV/CLTV LTV/CLTV calculation shall be the lesser of: o the "as completed" appraised value; or o the sum of the sales price of the property as evidenced by the sales contract between Fannie Mae and the buyer/borrower ("Contract Sales Price") and the total renovation costs (which include the renovation costs and all allowable fees and charges) SECONDARY FINANCING Permitted per FNMA guidelines and all Platinum Policies located in the Correspondent Seller Guide Refer to CLTV requirements above Page 2 of 12 Rev. 2/28/14

3 PROPERTY TYPES Eligible Properties o 1-4 unit properties o Condos and PUDs. Refer to Condo Review/Warranty section for additional information. Ineligible Properties o Co-ops and Condotels o Manufactured homes o Leaseholds o Loans held in the name of a trust CONDO REVIEW/WARRANTY FNMA project review for condominium or PUD projects not required Seller to warrant condo as Project Code V on FNMA Warranty Form and provide the following documents: o Provide documentation to support property is not a condotel o Master HOA Certificate of Insurance with the required hazard/liability/fidelity/flood insurance to ensure the proper coverage and policies will not expire within 30 days from the date of the subject loan. o Walls-in/H06 insurance in the amount of no less that 20% of the condo or attached PUDs appraised value The Uniform Underwriting and Transmittal Summary (1008) to be completed with Project Review Code V for condominium OR Project Review Code E for planned unit development (including detached PUDs). Maximum 20% concentration in any one project or subdivision Refer to State Restrictions section for additional requirements for Florida Condo projects OCCUPANCY Primary Residence Second Home o The property must be in a location so as to reasonably function as a second home. The property must be remote in either distance or time of travel from the Borrower's primary residence and be located in a recreational or resort area. (Such as mountains, oceanfront or desert). The Borrower may not own other residential property in the same geographic location as the subject property. Any property that is not a true second home must be underwritten to investment property guidelines Investment Property Page 3 of 12 Rev. 2/28/14

4 UNDERWRITING Loans must be underwritten through Desktop Underwriter (DU) and receive a DU Approve recommendation DU Approve/Ineligible recommendations are permitted if the only reason for ineligibility is one of the following: o LTV, CLTV, HCLTV greater than 95% for a 1-unit primary residence (permitted on DU 9.0 only when delivered by April 30th and purchased by May 31, 2014) o LTV greater than 75% for a 1-unit investment property o Property is a 2-4 unit investment property, provided the LTV/CLTV/HCLTV comply with the maximum stated in the LTV/CLTV section of these guides The following DU messages may be disregarded, if the loan complies with all HomePath Renovation Mortgage requirements: o Any message relating to amount of MI required o Any message requiring the Lender to verify the cost of improvements does not exceed 50% of the as-completed appraised value. See Renovation Requirements section for total cost allowed. o Any message that says the maximum allowable interested-party contribution has been exceeded on principal residence with LTV >90%, as long as it does not exceed 6% Manual underwriting or DU Refer recommendations are ineligible Purchase Agreement must include the HomePath Real Estate Purchase Addendum with paragraph 3 indicating that the agreement is contingent on Fannie Mae HomePath Renovation Mortgage financing from a participating lender. If this is not indicated and the borrower wants to use HomePath Renovation Mortgage financing, the borrower must work with their real estate agent to ensure the contract addendum is updated appropriately. FNMA Auction Sales must include the HomePath Real Estate Purchase Addendum (Auction). This addendum does not indicate financing type and can ONLY be used for FNMA Auction Sales. BORROWER ELIGIBILITY Permanent Resident Alien must provide Alien Registration Card (front and back) Non-Permanent Resident Alien must be a legal resident of the US and must provide eligible visa and unexpired passport CO-BORROWERS Non-occupant co-borrower allowed per FNMA guidelines o Primary Residence only o Max 95% LTV/CLTV o Occupant borrower must contribute a minimum of 5% own funds as down payment for loans greater than 80% LTV o Non-occupant co-borrower s income and liabilities are not used to qualify FICO Refer to LTV/CLTV section for minimum FICO score requirements Page 4 of 12 Rev. 2/28/14

5 CREDIT Must adhere to all FNMA guidelines and all Platinum Policies located in the Correspondent Seller Guide Non-traditional credit ineligible. All borrowers must have a FICO score Authorized User Accounts o Desktop Underwriter (DU) issues a message providing the name of the creditor and account number for each authorized user tradeline to easily identify these tradelines that require review in order to ensure the tradelines are an accurate reflection of the borrower's credit history. o In order to ensure the tradelines being reported are an accurate reflection of the borrower s credit history, the following must be established: The relationship of the borrower to the owner of the account, If the borrower uses the account, and If the borrower makes the payments on the account o If the authorized user tradeline belongs to another borrower on the loan or belongs to the borrower s spouse who is not on the loan, no further investigation is required. o If the borrower has several tradelines in good standing and only a minor number of authorized user accounts, the determination can be made that the authorized user accounts had minimal, if any, impact on the borrower s overall credit profile and the information reported on the credit report accurately reflects the borrower s credit history. o The Lender is required to make the determination of the impact of the authorized user accounts. The underwriter must note their determination on FNMA Form 1008 and include supporting documentation in the file, as applicable o If the Lender believes the authorized user tradelines are not an accurate reflection of the borrower s credit history, the DU recommendation is considered invalid Mortgage Delinquencies: o 1 or more 60, 90, 120, or 150 day late within last 12 months unacceptable Short Sales/Pre-foreclosure sales, Mortgage Re-Structure/Modification, and Deed-in-Lieu of foreclosure due to financial mismanagement and extenuating circumstances require: o 2 years seasoning with a maximum 80% LTV and credit must be re-established o 4 years seasoning with a maximum 90% LTV and credit must be re-established o 7 years seasoning required for Standard product guidelines Bankruptcy- Chapter 13: o 2 years from discharge date or 4 years from dismissal date and credit must be re-established Bankruptcy- Chapter 7: o 4 years from discharge or dismissal date and credit must be re-established o If more than one filing in last 7 years, a 5 year period is required to re-establish credit Foreclosure: o 7 year period from completion date required to re-establish credit Refer to State Restriction section of this guide for minimum FICO requirements on Florida Condos Page 5 of 12 Rev. 2/28/14

6 ASSETS/RESERVES Must adhere to all FNMA guidelines and all Platinum Policies located in the Correspondent Seller Guide In addition to DU document requirements, a minimum of 30 days bank statement/print out is required For non-payroll/large deposits: If deposit is less than 25% of borrower s income and cannot be sourced (i.e. cash deposit, etc) an LOX from borrower is required and funds must be backed out from available assets submitted through DU. If deposit exceeds 25% of borrower s income, an LOX from borrower and the source of deposit is required. If source of deposit is not an eligible source of funds, the deposits must be backed out from available assets submitted through DU Gifts o Primary Residence 1 Unit: Minimum borrower contribution from the borrower s own funds is not required. All funds may come from a gift from an acceptable donor. Acceptable Donors are defined as: A relative, defined as the borrower s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; OR A fiance, fiancée, or domestic partner NOTE: Donor may not be, or have any affiliation with the Builder, Developer, Real Estate Agent, or any other interested party to the transaction. 2-4 Unit: Acceptable provided Borrower investment is met o Ineligible for Second Home and Investment Property Reserves o Primary Residence: 1 Unit: No minimum 2-4 Units: Minimum 6 months PITIA If either the borrower s primary residence is for sale, but the sale will not close before the Note Date of the Mortgage on the new primary residence, or the borrower is converting his/her primary residence to a second home or investment property; refer to Vacating Primary Residence Matrix located in the Correspondent Seller Guide. o Second Home: As determined by DU. Plus 2 months additional reserves required for each additional financed Second Home or Investment Property owned o Investment Property: As determined by DU. Plus 2 months additional reserves required for each additional financed Second Home or Investment Property owned Page 6 of 12 Rev. 2/28/14

7 INTERESTED PARTY CONTRIBUTIONS Primary Residence o Maximum 6% for LTV/CLTV > 75.01% o Maximum 9% for LTV/CLTV < =75% Second Home o Maximum 6% for LTV/CLTV > 75.01% o Maximum 9% for LTV/CLTV <= 75% Investment Property o Maximum 2% regardless of LTV/CLTV INCOME Must adhere to all FNMA guidelines and all Platinum Policies located in the Correspondent Seller Guide In addition to DU document requirements, provide a current paystub with year to date earnings, most recent year W2, initial completed and signed IRS Form 4506T and most recent year of validated tax transcripts. NOTE: If DU requires 2 years of income verification, then 2 most recent years of validated tax transcripts are required Projected income for a new job cannot be used to qualify. All borrowers must have YTD paystub prior to close. If any borrower is working for a temporary agency, a minimum of 24 months work history is required with the temporary agency in order to consider income for qualification Verbal Verification of Employment o Must be completed within 10 business days prior to note date for all salaried borrowers o Must be completed within 30 days prior to the note date for all self-employed borrowers o Borrowers in the military may provide a military Leave and Earnings Statement dated within 30 days prior to the note date in lieu of a verbal verification of employment NOTE: Platinum will re-verify prior to purchase If borrower is vacating their primary residence and converting it to an investment property and using rental income to qualify, refer to the Vacating Primary Residence Matrix for requirements Rental property acquired subsequent to the most recent tax year filing, provide the following to use rental income to qualify: o HUD-1, note, mortgage, or equivalent documentation to confirm purchase date o Copy of current lease o Three (3) consecutive months canceled checks or bank statements verifying receipt of rent Borrowers using rental income to qualify on subject property must obtain rent loss insurance. Rent loss insurance covers rent losses that are incurred during the period that the property is being rehabilitated following a casualty. The coverage must be for at least 6 months rent loss Page 7 of 12 Rev. 2/28/14

8 APPRAISAL REQUIREMENTS Must adhere to all FNMA guidelines and all Platinum Policies located in the Correspondent Seller Guide An "as completed" interior and exterior appraisal is required from a certified general or state certified appraiser Rent schedule on FNMA Form 1007 required on 1-unit investment property or FNMA Form 216 on all 2-4 unit properties required; regardless if rental income is used to qualify The appraisal is required to include a description of proposed repairs as well as the construction proposal and cost estimate. Appraisal to be completed subject to completion of repairs. Utilities are required to be on when the appraiser inspects the property. If utilities cannot be turned on, due to a needed repair, the file must be documented with that information and reason why from appraiser or realtor and reason verified by FNMA REO asset manager HOME INSPECTION Home inspection or equivalent to document property has been inspected, systems tested, health and safety items and that local code are addressed is required and provided to the appraiser. The cost of the home inspection or equivalent can be financed by the Borrower. MORTGAGE INSURANCE N/A MAX PROPERTIES Borrower allowed up to 4 financed properties including subject property or $2 million whichever is less. Platinum limits its exposure to a maximum of 2 total properties (includes all properties with Platinum on any program) HIGHER PRICE MORTGAGE GUIDELINES (CF30-HPRHP) Must be locked under Product Code: CF30-HRPHP (30 year only) Higher-Priced Mortgage Loan Disclosure must be signed as part of the application documents Must pass all High Cost tests, including but not limited to Agency, City, County, State & Federal Validation of the borrower s ability to repay through verification of income, liabilities and assets in accordance with full documentation requirements Escrow Waivers are not allowed regardless of LTV. Escrow account must be established. STATE RESTRICTIONS Florida Condos o Investment Condos-reduce the max LTV by 10% (refer to notations in LTV/CLTV section) o New or newly converted condos within the last 3 years are ineligible RENOVATION AMOUNT Total Cost: The total renovation costs may not exceed the lesser of: o 35% of the "as completed" appraised value or o $35,000 Total Cost includes all rehabilitation costs such as labor and materials, contingency reserve, permits, inspections, title update/datedown and other documented fees such as: fee for review of construction contract, fees for processing draws, etc. RENOVATION PERIOD Completion Date: The renovations must be completed within 6 months of the closing date. Page 8 of 12 Rev. 2/28/14

9 RENOVATION IMPROVEMENTS CONSTRUCTION PROPOSAL AND COST ESTIMATE Specific types of home improvements that a borrower may finance are not specifically limited, but all improvements must be permanently affixed to the property and add value. Improvements are limited to light-to-moderate renovations. No gut rehabs. Habitability issues must be completed and included in renovation amount Eligible repairs can include interior and exterior repairs and cosmetic improvements such as fences, decks, repair of existing pool, floors and finishes. Structural repairs are allowable as long as the total cost complies with all HomePath Renovation requirements Code violations including existing unpermitted additions/conversions are to be remedied and/or become permitted as part of renovation funds. All improvements included in the renovation escrow must be completed by a contractor. Do it yourself repairs intended to be completed by the borrowers are not eligible for financing within the loan transaction. The repairs and improvements must meet any local codes and ordinances and the contractor must obtain all required permits prior to the start of work. When the security property is a unit in a condominium/attached PUD project, the project must be one for which the proposed renovation work is permissible under the bylaws of the owners' association or one for which the owners' association has given written approval for the renovation work. The renovation work for a condominium unit must be limited to the interior of the unit (including the installation of fire walls in the attic) The construction proposal and cost estimate provided by the contractor must: o itemize the specific work that the contractor agrees to perform for the borrower o state the agreed-upon cost of the renovation o identify any subcontractors and suppliers, if required by locale o be reviewed to ensure the planned work meets all program and repair eligibility requirements o be provided to appraiser for inclusion in the appraisal report CONSTRUCTION CONTRACT Contractor and Borrower to complete and execute HomePath Renovation_Homeowner-Contractor Agreement This contract which must be executed by both the contractor and the borrower, and require the contractor to: o complete the work in compliance with the contract and all applicable government regulations (such as building codes and zoning regulations) o obtain the necessary building permits (including a certificate of occupancy, if required) o provide for appropriate remedies for resolving disputes (including an agreement to indemnify the borrower for all property losses or damage caused by the contractor's employees or subcontractors). Page 9 of 12 Rev. 2/28/14

10 CONTRACTOR REQUIREMENTS Contractors must be registered, licensed, or certified based on local municipal or state regulations Contractors must have all required and adequate insurance coverage ( such as all-risk, public liability, workmen's compensation, and automobile liability) A borrower must choose his or her own contractor to perform the needed renovation. The lender may not choose the contractor or refer the borrower to any one specific contractor. Contractor cannot be related to borrower. Borrowers may utilize more than one contractor provided that all requirements related to the contractors have been met for each one. Maximum of 2-3 specialized contractors allowed. Contractor(s) to complete a W-9 Form Contractor(s) to complete HomePath Renovation Contractor Questionnaire or a comparable document. Contractor(s) to be reviewed by lender to determine the contractor is qualified and experienced, has all appropriate credentials required by the state, is financially able to perform the duties necessary to complete the renovation work in a timely manner, and agrees to indemnify the borrower for all property losses or damages caused by its employee or subcontractors. CONTINGENCY RESERVE A contingency reserve equal to 10% of the total costs of the repairs and renovation work must be established and funded to cover required unforeseen repairs and deficiencies that are discovered during the renovation. The contingency reserve must be considered as part of the total renovation costs. The contingency reserve may be released only if required, necessary, and unforeseen repairs or deficiencies and discovered during the renovation. Unused contingency funds must be used to reduce the outstanding balance of the renovation mortgage or used to fund additional improvements after all of the renovation work has been completed and the certification of completion has been obtained. REHABILITATION/ REPAIR DISBURSEMENT PROCESS RELEASES FROM THE ESCROW ACCOUNT AT CLOSING The only allowable costs that can be released at closing are for permits and home/consultant inspection. These costs can be released with the appropriate documentation in the form of a paid receipt or an invoice that is to be paid. Releases for repairs cannot be done until evidence is received that all required permits have been obtained and inspection of the completed work has been done PERMITS: Prior to the start of work and prior to the release of any escrow funds, building permits for all aspects of the renovation project must be in place. If permits are not required by the local jurisdiction, a certification or other documentation stating no permits are required for the project must be obtained in lieu of the permit. Page 10 of 12 Rev. 2/28/14

11 DRAW REQUESTS & DISBURSEMENTS DRAW REQUESTS & DISBURSEMENTS: Funds may be released after the work is inspected by appraiser/approved inspector. Advances for repairs are not permitted. Paid receipts or cancelled checks are required to reimburse the borrower or contractor for paid allowable costs that are financed in the renovation escrow after the service has been provided. Draw requests are made by completing an Escrow Disbursement form along with all supporting documentation. Original signatures from the borrower(s), the contractor and the Lender s underwriter or authorized agent/employee are required on the Draw Request Form or equivalent form prior to each release. Draw requests will be reviewed upon receipt. If any corrections or additional documentation is needed to approve the draw, Correspondent Lending will contact the lender. Upon receipt of complete draw documentation, checks will be processed in 24 to 48 hours. All of the disbursement checks are sent to the Lender for distribution to the appropriate parties. TITLE UPDATE: An endorsement to the title policy extending the effective date through the completion of the renovation and assuring first lien position is required to be provided by lender for final disbursement. RENOVATION COMPLETION Following completion of the renovation work, obtain a certification of completion from the inspector stating that the renovation was completed in accordance with the construction contract. The certification must be documented on Fannie Mae's HomePath Renovation Completion Form. The contractor and the borrower must also complete, sign, and deliver the form. Appraisal Update and/or Completion Report-FNMA Form 1004D completed by original appraiser after renovation complete is required. Concurrent with the last disbursement of funds, a title update through the date the renovation was completed is required, thus ensuring the continuance of first lien priority and the absence of any mechanics' or materialmen's liens is required to be provided by the lender for final disbursement. Must obtain a certification regarding the adequacy of the property insurance following completion of the renovation. The certification must confirm that the coverage has been increased, if necessary, to comply with Fannie Mae's standard hazard and flood insurance requirements. RENOVATION RELATED FEES Applicable Renovation Fees charged: o Draw management fee. This is calculated as 1.50% of the portion of the mortgage allocated to the rehabilitation, or $500, whichever is greater, and included in the rehab costs and mortgage calculation. o Title Update fee(s) to be included in the rehab costs and mortgage calculation. The title update is ordered by the lender and is required before the final disbursement is made and any interim draws, as required by locality o Inspection fees from original Appraiser for final inspection and any interim draws to be included in the rehab costs and mortgage calculation. The charge is the customary fee for the area. o Home/consultant Inspection may be included in the rehab costs and mortgage calculation. The charge is the customary fee for the area. DU DATA ENTRY REQUIREMENTS Renovation costs (amount from Line C.2 of Maximum Mortgage Worksheet) must be entered in Line b of Section VII (Details of Transaction) of the loan application Exception: For 2-4 unit investment properties, the sum of the sales price and renovation costs must be entered in Line a of Section VII (Details of Transaction) of the loan application Page 11 of 12 Rev. 2/28/14

12 RENOVATION DOCUMENTS HomePath Renovation Contractor Questionnaire HomePath Renovation Homeowner-Contractor Agreement W-9 Form HomePath Renovation Maximum Mortgage Worksheet HomePath Renovation Loan Agreement HomePath Renovation Completion Form Appraisal Update and/or Completion Report FNMA Form 1004D SPECIAL FEATURE CODES HomePath Renovation Mortgage: SFC 058 Community Second: SFC118 LTV above 80% with NO MI Required: MI98 NOTE: SFC and MI Code must be listed in comments section on 1008 PRICING/RATES/LOCKS Refer to the Platinum Correspondent website for daily pricing and pricing policies. Page 12 of 12 Rev. 2/28/14