SPECIALTY LENDING MATRICES. CONTACT INFORMATION:

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1 SPECIALTY LENDING MATRICES CONTACT INFORMATION: Pricing: Loan Registration: Guideline Support: Wholesale Support Desk: Revised

2 BANK STATEMENT PROGRAM CODE PROGRAM DESCRIPTION PG # Gbox 12 & 24 Months Bank Statements 5000-ELITE-24BS 90% LTV Purchase/RT 5000-ELITE-12BS 700 MIN FICO For Program 1-14 Gbox 12 Months Bank Statements PLUS BS 80% LTV Purchase/RT up to $2.5 Million 680 MIN FICO For Program 1-13 Gbox 24 Months Bank Statements BS 90% LTV Purchase/RT up to $1.5 Million 660 MIN FICO For Program 1-14 Gbox Non-Prime 24 Months Bank Statements BS-NP 24 Months From Housing Event 580 MIN FICO For Program 1-12 INVESTOR PROGRAM CODE PROGRAM DESCRIPTION PG # Gbox No Ratio & No Reserves Program 5000-INV-PP 75% LTV up to $1 Million 640 MIN FICO For Program 1-11 Gbox Qualify on Rental Survey 5000-INV-DTI-PP 80% LTV Purchase/RT up to $1 Million 620 MIN FICO for Program 1-14 FOREIGN NATIONAL PROGRAM CODE PROGRAM DESCRIPTION PG # Gbox Foreign National Program 5000-FN 75% LTV up to $1 Million Interest Only Available 1-9 Gbox Foreign National No Ratio Program 5000-INV-FN-PP 75% LTV up to $1 Million Interest Only Available 1-11 Gbox Foreign National Qualify on Rental Survey 5000-INV-DTI-FN 75% LTV Purchase/RT up to $1.5 Million Interest Only Available 1-14 Revised Specialty Lending Matrices Index FULL DOC HOUSING EVENT/NON-PRIME PROGRAM CODE PROGRAM DESCRIPTION PG # Gbox Full Doc 5000-ELITE-FD 90% LTV Purchase/RT 680 MIN FICO For Program 1-12 Gbox Non-Prime Full Doc 5000-NP 95% LTV Purchase/RT up to $1.5 Million 24 Months From Foreclosure, Short Sale & BK 1-13 Gbox Non-Prime Recent Housing - Full Doc 5000-RH 85% LTV Purchase/RT up to $1.5 Million One Day Out of Housing Event 1-13 Gbox Non-Prime 1 Year Tax Returns - Full Doc YR 85% LTV Purchase up to $2 Million 660 MIN FICO For Program 1-11 Gbox Written Verification of Employment 5000-WVOE 80% LTV Purchase/RT up to $3 Million 620 MIN FICO For Program 1-11 ASSET UTILIZATION PROGRAM CODE PROGRAM DESCRIPTION PG # Gbox Asset Utilization Program 5000-AU 75% LTV Purchase up to $1 Million 680 MIN FICO For Program 1-8 ITIN PROGRAM CODE PROGRAM DESCRIPTION PG # Gbox No Social Security Plan Program 5000-ITIN 90% LTV Purchase up to $300,000 Owner Occupied Purchase/RT/Cash Out ND MORTGAGE PROGRAM CODE PROGRAM DESCRIPTION PG # TD-24BS TD-FD Gbox 2 ND Mortgage - 24 Months Bank Statements 85% CLTV; Loan amounts up to $500, MIN FICO For Program Gbox 2 ND Mortgage Full Doc 85% CLTV; Loan amounts up to $500, MIN FICO For Program

3 5000-ELITE-24BS 5000-ELITE-12BS PRODUCT DESCRIPTION 12 and 24 MONTH BANK STATEMENTS 90% LTV PURCHASE / RATE & TERM REFINANCES UP TO $2,500,000 Primary Residence & Second Home Purchase & R/T Credit Score LTV/CLTV Maximum Loan Amount % $1,500,000 80% $2,000,000 75% $2,500,000 80% $1,000,000 75% $2,000,000 Primary Residence & Second Home Cash Out Refinance Credit Score LTV/CLTV Maximum Loan Amount % $1,500,000 70% $2,000,000 70% $1,500,000 65% $2,000,000 Non-Owner Occupied Purchase, R/T & Cash Out Refinance Credit Score LTV/CLTV Maximum Loan Amount % $1,500, % $1,000,000 Other Restrictions Second Home Max LTV 70% 2-4 Units Max LTV 65% Interest Only Max LTV 75% 12 Month Bank Statement Max LTV 75% Condos Max LTV 75% Revised Page 1 of 14

4 5000-ELITE-24BS 5000-ELITE-12BS Adjustable Rate Details Age of Documents Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option Available for LTVs <= 75%. Interest Only period is 120 months Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 14

5 5000-ELITE-24BS 5000-ELITE-12BS Down payment funds should be documented for 60 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation included in the loan file. In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other liquid assets. Assets Account Statements should cover most recent 60-dayperiod VOD should be dated within 30 days of loan application date Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves; Vested Retirement Account funds 60% may be considered for closing and/or reserves; Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Assets being used for dividend and interest income may not be used for reserves requirements. When bank statements are used, large deposits must be evaluated. Large deposits are defined as any single deposit that represents more than 75% of the monthly average deposit balance. Large deposits need to be sourced. Use of Business funds: may be used for down payment, closing costs and reserves if the borrower is the sole proprietor or 100% owner of the business (or all borrowers combined own 100%). o Calculation used to determine if business funds are available Average Monthly Business Expense: Use the most recent six (6) month business bank statements, total all withdrawals and divide by six (6). Two (2) Months Expenses: Take Average Monthly Business Expense and multiply by 2. Take the most recent business account ending balance and subtract the Two (2) Months Expense. ( = ) Funds Available: The result, if positive, represents the maximum amount of business funds available to use towards down payment, closing cost and reserves. Borrower Eligibility Eligible: U.S. Citizen Permanent Resident Alien: is a non-u.s. citizen authorized to live and work in the U.S. on a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be documented and meet one of the following criteria: I-151 Permanent Resident Card (Green Card) that does not have an expiration date; I-551 Permanent Resident Card (Green Card) issued for 10 years that has not expired; I- 551 Conditional Permanent Resident Card (Green Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized. A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. In-Eligible: Non-Permanent Resident Alien Foreign national Non-Occupant Co-Borrowers Co-Signers Guarantors Any form of Trust Revised Page 3 of 14

6 5000-ELITE-24BS 5000-ELITE-12BS Cash Out Amount Limit (% of Prop Value) O/O & 2 nd Home Loan Amount Loan Amount <= $1m > $1m NOO SFR 75% 70% SFR 65% Condo / 2-4 Units 70% 70% Condo / 2-4 Units 60% Cash-Out Requirements If borrower has held title to the property less than 6 months, the LTV is based on the lesser of purchase price or appraised value. Note: The following items may be paid off with proceeds from a Rate/Term refinance: Non-purchase money seconds with 12 month seasoning. HELOCs (Home Equity Line of Credit) with total withdrawals not exceeding $2,000 in the last twelve (12) months. Borrowers requesting a cash-out loan must provide a letter of explanation (aka cash-out letter ) regarding the use of the cash-out proceeds Borrowers requesting a cash-out loan on an investment property must provide a letter of explanation (aka cash-out letter ) regarding the business use of the cash-out proceeds. Collections And Charge-Offs Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $10,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following: o Payments for open charge-offs or collections are included in the DTI (Subject to program DTI restrictions). Payment calculated at 5% of balance of remaining unpaid collections and charge-offs. o Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserve requirements. Revised Page 4 of 14

7 5000-ELITE-24BS 5000-ELITE-12BS Credit Tradelines - Standard: 3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months with activity in the last 12 months; Limited: N/A Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing. Matrix 5000-ELITE-BS Minimum FICO 700 Housing 0x30x12 BK (Chap 13 Discharge) 60 Mo BK (Other) 60 Mo Foreclosure 60 Mo Short Sale / DIL 60 Mo Credit Scores The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the representative credit score for qualifying. Eligible States See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase & R/T Only; No 50(a)(6)) Escrow Waivers Impounds are required. Primary residence only 12 month rental history required reflecting 0x30. Payment shock limited as follows: First Time Home Buyers >36% DTI <=36 DTI Credit Score >= 660: 3x current housing Payment shock not applicable FTHB with gift funds: 1.5x current housing Payment shock not applicable Revised Page 5 of 14

8 5000-ELITE-24BS 5000-ELITE-12BS Gift Funds Gift Funds are acceptable if ONE of the following applies 1. A 5% down payment has been made by the borrower from their own resources % Gift Funds are allowed for loans only with a maximum LTV of 75%.Borrower(s) must meet both reserve and residual income requirements. Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt; Gift funds may not be used to meet reserve requirements. Income/Asset Verification All borrowers must be qualified using current verifiable income, not projected income. A borrower with a 25% or greater ownership interest in a business is considered self-employed and must be evaluated as a self-employed borrower. Borrower must document two years current continuous self-employment with business license (if available for nature of business) and statement from corporate accountant/cpa confirming the same. Borrowers whose self-employment cannot be independently verified are not eligible. Revised Page 6 of 14

9 5000-ELITE-24BS 5000-ELITE-12BS BORROWERS MUST BE SELF-EMPLOYED TO QUALIFY FOR THIS PROGRAM. Income Calculation / Documentation Bank Statements Using Personal Bank Statements to Qualify Business license (if available depending on nature of business) Validation of minimum of 2 years existence of the business from one of the following: Business License, Letter from Tax preparer, Secretary of State Filing or equivalent. Most recent 12 or 24 months personal bank statements - Utilize 12 or 24 months average deposits to qualify (minus disqualified/unrelated deposits) Most recent 2 months business bank statements Demonstrate transfers from business to personal bank account statements provided Borrowers must own a minimum of 25% of business to be considered Self-Employed, for use of personal of personal bank statements. Qualifying income may not exceed the income indicated on the initial Personal Bank Statement Analysis Income should be calculated based on a 12 or 24 month average of total deposits minus any unusually large deposits exceeding 50% of the monthly income (as defined by Fannie Mae) into personal accounts must be explained via LOE. If LOE is sufficient, no sourcing required. Pattern of deposits and payment should be consistent ATM deposits may be included if a consistent pattern of such deposits is present; Expectations of changes in deposit pattern must be considered; Income documented separately but comingled must be backed out of deposits; Two months business bank statements; o Must evidence activity to support business operations, and o Reflect transfers to the personal account Using Business Bank Statements / Co-mingled (Business & Personal) to Qualify Business license (if available depending on nature of business) Validation of minimum of 2 years existence of the business from one of the following: Business License, Letter from Licensed Tax preparer, Secretary of State Filing or equivalent. Borrowers utilizing business bank statements that own > 50% but < 100% of a business will be qualified at the P&L net income multiplied by their ownership. Less than 50% ownership will require exception approval for use of Business Bank Statements Documentation Options: 1. Business Expense Statement Letter: (Option 1) o An expense statement specifying business expenses as a percent of the gross annual sales/revenue prepared and signed by a licensed tax preparer. o 12 or 24 months of business bank statements covering the most recent time period. o Net Income determined by total deposits per bank statements less total expenses. Total expenses calculated by multiplying total deposits by the expense factor provided by licensed tax preparer. Qualifying income is the lower of the net income from the analysis or the income indicated on the initial 1003 Continued on next page Revised Page 7 of 14

10 5000-ELITE-24BS 5000-ELITE-12BS or 24 Month P&L Statement (Option 2) o 12 or 24 Month P&L prepared by a licensed tax preparer o 12 or 24 Months of business bank statements covering the most recent time period and matching the time period of the P&L. o P&L Sales/Revenue must be supported by the provided bank statements. Total deposits per bank statements, minus any inconsistent deposits, must be no more than 10% below revenue reflected on P&L. The bank statements and P&L must cover the same time period. Qualifying income is the lower of the Net Income indicated on the P&L or the income indicate d on the initial 1003 Income Calculation / Documentation (continued) or 24 Month Borrower Prepared P&L Statement: (Option 3) o 12 or 24-month P&L prepared and signed by the borrower o A business narrative provided by the borrower which includes detail regarding the size and operating profile of the business addressing; location/rent, number of employees/contractors, COGS, Trucks/Equipment (Owned or leased). The expenses listed on the P&L should address all items disclosed in the narrative. o 12 or 24-months of business bank statements covering the most recent time-period and matching the same period covered by the P&L o Borrower is required to provide separate P&Ls & business narrative for each business being used in qualifying o P&L Sales/Revenue must be supported by the provided bank statements. Total deposits per bank statements, minus any inconsistent deposits, must be no more than 10% below sales/revenue reflected on the P&L. The bank statements and P&L must cover the same time periods. Qualifying income is the lower of the Net Income indicated on the P&L or the income indicated on the initial 1003 o The analysis of the business and P&L will require a basic understanding of the borrowers business. The narrative provided by the borrower should be reviewed to determine if the business provides a service or produces/manufactures goods. If the business has a web site, it should be reviewed to gain additional information on the business and its size. The goal of the analysis is to determine if the individual/total expenses as provided by the borrower on the P&L appear reasonable for the type of business. The items to consider in this analysis; Description of business from narrative Location of business Home based or lease space (Google address) Utilities Phone, electric, internet Number of employees or contractors employee taxes, payroll expense Cost of Goods Sold What type of materials does the business use or manufacture. Equipment or Trucks/Vehicles owned or leased Type of client base retail or commercial Any recurring payment on the bank statements should be compared to an expense item on the P&L for reasonableness. The underwriter should provide notes of their analysis on the U/W approval form/1008/or within the bank statement analysis. Expenses must be reasonable for the type of business; Pattern of deposits and payment should be consistent; Expectations of changes in deposit pattern must be considered; Income documented separately but co-mingled must be backed out of deposits Revised Page 8 of 14

11 5000-ELITE-24BS 5000-ELITE-12BS Self Employed/Wage Earner Combination - Joint borrowers with 1 wage earner and 1 self-employed business owner can verify income separately, with the self-employed borrower utilizing bank statements and the wage earner providing pay stubs/w-2s. The wage earner 4506T should include W-2 transcripts only. The self-employed business owner must be the primary wage earner and the combination scenario must be qualified and priced as a bank statement loan. Income Misc. Sources Component Sources of Income - A borrower who has a self-employed business and also receives income from other sources is eligible for the bank statement program. Income sources include but are not limited to rental properties, trust & investment, alimony, etc. These income sources must be separately documented on the 1003 and must be separately supported by bank statement deposits. o Rental Income A current lease is required for all REO income properties Must provide proof of ownership Must provide rental payments of 2 months via cancelled checks, deposits clips, or bank records If lease is not available, market rent should be reduced by a vacancy/expense factor of 25% o Trust Income Income from trusts may be used if constant payments will continue for at least the first 3 years of the mortgage term as evidenced by trust income documentation Trust Agreement required confirming amount, distribution frequency, and duration of payments o o o Alimony Income Final Divorce decree or legal separation agreement required Must provide payment evidence of 6 months via cancelled checks, deposit slips, or bank records Note Receivable Income Copy of the note confirming amount and length of payment Must provide payment evidence of 12 months via cancelled checks, deposit slips, or bank records Royalty Payment Income Royalty contract, agreement, or statement confirming amount, frequency, and duration of the income must document a 3 year continuance Must provide payment evidence of 12 months via cancelled checks or bank records/deposits Listing Seasoning For cash out refinances, properties previously listed for sale should be seasoned at least 12 months from the listing contract expiration date. Limitations on Other Real Estate Owned Borrowers are not limited in the number of properties owned however borrower with > 20 financed properties are limited to Owner Occupied or 2 nd Home transactions only. Minimum Loan Amount $150,000 Revised Page 9 of 14

12 5000-ELITE-24BS 5000-ELITE-12BS Non-Sufficient Funds Non-sufficient funds (NSF) or negative balances reflected on the bank statement must be considered. Occurrences included in the analysis are subject to the following tolerances o Up to five (5) occurrences in the most recent twelve (12) month time period is acceptable if there are zero (0) occurrences in the most recent two (2) month time period. o Up to three (3) occurrences are allowed in the most recent twelve (12) month time. o Exception requests for tolerance deviations must include (a) a letter of explanation from the borrower outlining the reason for the occurrences and an explanation of how and when the issue leading to the occurrences was rectified, and (b) additional compensating factors outlined by the supporting the viability of income. Non-Sufficient Funds (NSF) / Overdraft Consideration of the financial strength of a self-employed borrower's business must be taken into account. Overdraft Overdraft protection (Fees) associated with a pre-arranged link to a savings account or line of credit must also be considered unless one of the following conditions exist o Overdraft protection from a depository account: Occurrences may be excluded if statements for the linked account confirm that (a) the linked account balance at the time of the transfer exceeded the amount of the overdraft transfer, (b) the linked account s balance did not report as zero or negative at any point during the statement period of the transfer, and (c) the linked account did not itself receive overdraft protection proceeds during the statement period of the transfer. o Overdraft protection from a line of credit: Occurrences may be excluded if statements for the linked account confirm that (a) the line s credit limit was not exceeded during the statement period of the transfer and (b) a payment amount which equals or exceeds the sum of all overdraft protection occurrences analyzed in the statement period is made within 30 days after the statement close date. Payment Shock Primary Residence Only Payment shock should not exceed 300% of the borrower s current housing payment unless DTI is less than or equal to 36%. If payment shock exceeds this limit the underwriter must provide justification of borrower s ability to handle the increased payment. If the loan purpose is debt consolidation, a payment shock calculation is not required. Payment Shock = (Proposed Housing Payment /Present Housing Payment) * 100 Payment shock is not considered for borrowers who own a home free and clear Revised Page 10 of 14

13 5000-ELITE-24BS 5000-ELITE-12BS Points and Fees Total points and fees must be less than 5% Prepayment Penalty Investment Properties may have a prepayment penalty. Prepayment penalties on primary residence and second home transactions are prohibited. Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable Only) Property Types Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Condo Non Warrantable Coops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Revised Page 11 of 14

14 5000-ELITE-24BS 5000-ELITE-12BS Property Types All Condos Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Property Types Non Warrantable Condos Not Allowed Qualifying Rate and Ratios Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (360 Months) at the time of recast after the interest only period has expired. The interest-only option is a 10-year initial interest-only period followed by 30-year full amortization. DTI Ratio Maximum DTI is 43% (applies to both fully amortizing and interest only) Residual Income Calculation not required. Revised Page 12 of 14

15 5000-ELITE-24BS 5000-ELITE-12BS Reserves Reserves for a loan with an Interest Only Feature based upon the interest only payment Cash-out proceeds can only be used for required reserves if the following requirements are met: o Cash-out must be used for debt consolidation; no new obligations can be incurred with loan proceeds. o Net Cash-Out (Cash-In-Hand) may be used to meet reserve requirements if at least one (1) of the following criteria are met Aggregate monthly debt obligations are reduced by a minimum of 15% Aggregate monthly debt obligations are reduced by a minimum of $500 Monthly mortgage obligation on subject property is reduced by a minimum of 10% AND housing history is 1x30x12 or better Reserve requirements are waived for Rate-And-Term Refinance transactions when the transaction results in a reduction to the monthly principal and interest payment of 10% or greater AND housing history is 1x30x12 or better. Proceeds from 1031 Exchange cannot be used to meet reserve requirements Gift funds may not be used for reserves requirements. O/O & 2 nd Home Reserves NOO - Loan Amount Reserves <= $1,000,000 9 months <= $1,000, months $1,000,001 - $2,000, Months > $2,000, months > $1,000, Months O/O, 2nd home: LTV equal to or greater than 80%: max 4% O/O, 2nd home: LTV less than 80%: max 6% NOO: LTV equal to or less than 75%: Max is 3% NOO: LTV greater than 75%: Max is 2% Seller Concessions All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Revised Page 13 of 14

16 5000-ELITE-24BS 5000-ELITE-12BS Tax Liens All income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the following are meet; The file must contain a copy of the repayment agreement A minimum of 6-payments has been made under the plan with all payments made on time The balance of the lien must be included when determining the maximum CLTV for the program Refinance transactions require a subordination agreement from the taxing authority Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 14 of 14

17 PRODUCT DESCRIPTION 12 MONTH BANK STATEMENTS 4 Years From Housing Event 4 Years From Bankruptcy $2,500,000 Max Loan Owner Occupied, Second Homes Owner Occupied Loan Amount FICO Purchase & Rate / Term Cash Out Reserves BS < $1,000,000 $1,000,000 - $1,500,000 > $1,500, % 85% % 75% % 85% % 75% % 75% % 70% 6 Months 6 Months 12 Months Interest Only Second Home Non-Owner Occupied 80% Max LTV/CLTV 80% Max LTV/CLTV Not Available 2-4 Units Allowed as Owner Occupied 80% Max LTV/CLTV Revised Page 1 of 13

18 BS Adjustable Rate Details Age of Documents Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option Available for LTVs <= 80%. Interest Only period is 120 months Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 13

19 BS Down payment funds should be documented for 60 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation included in the loan file. In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other liquid assets. Assets Account Statements should cover most recent 60-dayperiod VOD should be dated within 30 days of loan application date Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves; Vested Retirement Account funds 60% may be considered for closing and/or reserves; Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Assets being used for dividend and interest income may not be used for reserves requirements. When bank statements are used, large deposits must be evaluated. Large deposits are defined as any single deposit that represents more than 75% of the monthly average deposit balance. Large deposits need to be sourced. Use of Business funds: may be used for down payment, closing costs and reserves if the borrower is the sole proprietor or 100% owner of the business (or all borrowers combined own 100%). o Calculation used to determine if business funds are available Average Monthly Business Expense: Use the most recent six (6) month business bank statements, total all withdrawals and divide by six (6). Two (2) Months Expenses: Take Average Monthly Business Expense and multiply by 2. Take the most recent business account ending balance and subtract the Two (2) Months Expense. ( = ) Funds Available: The result, if positive, represents the maximum amount of business funds available to use towards down payment, closing cost and reserves. Borrower Eligibility Eligible: U.S. Citizen Permanent Resident Alien: is a non-u.s. citizen authorized to live and work in the U.S. on a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be documented and meet one of the following criteria: I-151 Permanent Resident Card (Green Card) that does not have an expiration date; I-551 Permanent Resident Card (Green Card) issued for 10 years that has not expired; I- 551 Conditional Permanent Resident Card (Green Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized. A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. In-Eligible: Non-Permanent Resident Alien Foreign National Non-Occupant Co-Borrowers Co-Signers Guarantors Any form of Trust Revised Page 3 of 13

20 BS Cash Out Amount Limit (% of Prop Value) O/O & 2 nd Home Loan Amount <= $1m Loan Amount > $1m SFR 75% 70% Condo / 2-4 Units 70% 70% Cash-Out Requirements If borrower has held title to the property less than 6 months, the LTV is based on the lesser of purchase price or appraised value. Note: The following items may be paid off with proceeds from a Rate/Term refinance: Non-purchase money seconds with 12 month seasoning. HELOCs (Home Equity Line of Credit) with total withdrawals not exceeding $2,000 in the last twelve (12) months. Borrowers requesting a cash-out loan must provide a letter of explanation (aka cash-out letter ) regarding the use of the cash-out proceeds Borrowers requesting a cash-out loan on an investment property must provide a letter of explanation (aka cash-out letter ) regarding the business use of the cash-out proceeds. Collections And Charge-Offs Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $10,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following: o Payments for open charge-offs or collections are included in the DTI (Subject to program DTI restrictions). Payment calculated at 5% of balance of remaining unpaid collections and charge-offs. o Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserve requirements. Credit Tradelines - Standard: 3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months with activity in the last 12 months; Limited: N/A Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing. Matrix BS Minimum FICO 680 Housing 0x30x12 BK (Chap 13 Discharge) 48 Mo BK (Other) 48 Mo Foreclosure 48 Mo Short Sale / DIL 48 Mo Revised Page 4 of 13

21 BS Credit Scores The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the representative credit score for qualifying. Eligible States See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase & R/T Only; No 50(a)(6)) Escrow Waivers First Time Home Buyers Impounds are required. Primary residence only Minimum 680 credit score Minimum 6 months reserves 12 month rental history required reflecting 0x30. Payment shock limited as follows: >36% DTI <=36 DTI Credit Score >= 680: 3x current housing Payment shock not applicable FTHB with gift funds: 1.5x current housing Payment shock not applicable Gift Funds Gift Funds are acceptable if ONE of the following applies 1. A 5% down payment has been made by the borrower from their own resources % Gift Funds are allowed for loans only with a maximum LTV of 75%.Borrower(s) must meet both reserve and residual income requirements. Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt; Gift funds may not be used to meet reserve requirements. Income/Asset Verification All borrowers must be qualified using current verifiable income, not projected income. A borrower with a 25% or greater ownership interest in a business is considered self-employed and must be evaluated as a self-employed borrower. Borrower must document two years current continuous self-employment with business license (if available for nature of business) and statement from corporate accountant/cpa confirming the same. Borrowers whose self-employment cannot be independently verified are not eligible. Revised Page 5 of 13

22 BS BORROWERS MUST BE SELF-EMPLOYED TO QUALIFY FOR THIS PROGRAM. Income Calculation / Documentation Bank Statements Using Personal Bank Statements to Qualify Business license (if available depending on nature of business) Validation of minimum of 2 years existence of the business from one of the following: Business License, Letter from Tax preparer, Secretary of State Filing or equivalent. Most recent 12 months personal bank statements - Utilize 12 months average deposits to qualify (minus disqualified/unrelated deposits) Most recent 2 months business bank statements Demonstrate transfers from business to personal bank account statements provided Borrowers must own a minimum of 25% of business to be considered Self-Employed, for use of personal of personal bank statements. Qualifying income may not exceed the income indicated on the initial Personal Bank Statement Analysis Income should be calculated based on a 12 month average of total deposits minus any unusually large deposits exceeding 50% of the monthly income (as defined by Fannie Mae) into personal accounts must be explained via LOE. If LOE is sufficient, no sourcing required. Pattern of deposits and payment should be consistent ATM deposits may be included if a consistent pattern of such deposits is present; Expectations of changes in deposit pattern must be considered; Income documented separately but comingled must be backed out of deposits; Two months business bank statements; o Must evidence activity to support business operations, and o Reflect transfers to the personal account Using Business Bank Statements / Co-mingled (Business & Personal) to Qualify Business license (if available depending on nature of business) Validation of minimum of 2 years existence of the business from one of the following: Business License, Letter from Licensed Tax preparer, Secretary of State Filing or equivalent. Borrowers utilizing business bank statements that own > 50% but < 100% of a business will be qualified at the P&L net income multiplied by their ownership. Less than 50% ownership will require exception approval for use of Business Bank Statements Documentation Options: 1. Business Expense Statement Letter: (Option 1) o An expense statement specifying business expenses as a percent of the gross annual sales/revenue prepared and signed by a licensed tax preparer. o 12 months of business bank statements covering the most recent time period. o Net Income determined by total deposits per bank statements less total expenses. Total expenses calculated by multiplying total deposits by the expense factor provided by licensed tax preparer. Qualifying income is the lower of the net income from the analysis or the income indicated on the initial 1003 Continued on next page Revised Page 6 of 13

23 BS Month P&L Statement (Option 2) o 12 Month P&L prepared by a licensed tax preparer o 12 Months of business bank statements covering the most recent time period and matching the time period of the P&L. o P&L Sales/Revenue must be supported by the provided bank statements. Total deposits per bank statements, minus any inconsistent deposits, must be no more than 10% below revenue reflected on P&L. The bank statements and P&L must cover the same time period. Qualifying income is the lower of the Net Income indicated on the P&L or the income indicate d on the initial 1003 Income Calculation / Documentation (continued) Month Borrower Prepared P&L Statement: (Option 3) o 12 month P&L prepared and signed by the borrower o A business narrative provided by the borrower which includes detail regarding the size and operating profile of the business addressing; location/rent, number of employees/contractors, COGS, Trucks/Equipment (Owned or leased). The expenses listed on the P&L should address all items disclosed in the narrative. o 12 months of business bank statements covering the most recent time-period and matching the same period covered by the P&L o Borrower is required to provide separate P&Ls & business narrative for each business being used in qualifying o P&L Sales/Revenue must be supported by the provided bank statements. Total deposits per bank statements, minus any inconsistent deposits, must be no more than 10% below sales/revenue reflected on the P&L. The bank statements and P&L must cover the same time periods. Qualifying income is the lower of the Net Income indicated on the P&L or the income indicated on the initial 1003 o The analysis of the business and P&L will require a basic understanding of the borrowers business. The narrative provided by the borrower should be reviewed to determine if the business provides a service or produces/manufactures goods. If the business has a web site, it should be reviewed to gain additional information on the business and its size. The goal of the analysis is to determine if the individual/total expenses as provided by the borrower on the P&L appear reasonable for the type of business. The items to consider in this analysis; Description of business from narrative Location of business Home based or lease space (Google address) Utilities Phone, electric, internet Number of employees or contractors employee taxes, payroll expense Cost of Goods Sold What type of materials does the business use or manufacture. Equipment or Trucks/Vehicles owned or leased Type of client base retail or commercial Any recurring payment on the bank statements should be compared to an expense item on the P&L for reasonableness. The underwriter should provide notes of their analysis on the U/W approval form/1008/or within the bank statement analysis. Expenses must be reasonable for the type of business; Pattern of deposits and payment should be consistent; Expectations of changes in deposit pattern must be considered; Income documented separately but co-mingled must be backed out of deposits Revised Page 7 of 13

24 BS Self Employed/Wage Earner Combination - Joint borrowers with 1 wage earner and 1 self-employed business owner can verify income separately, with the self-employed borrower utilizing bank statements and the wage earner providing pay stubs/w-2s. The wage earner 4506T should include W-2 transcripts only. The self-employed business owner must be the primary wage earner and the combination scenario must be qualified and priced as a bank statement loan. Income Misc. Sources Component Sources of Income - A borrower who has a self-employed business and also receives income from other sources is eligible for the bank statement program. Income sources include but are not limited to rental properties, trust & investment, alimony, etc. These income sources must be separately documented on the 1003 and must be separately supported by bank statement deposits. o Rental Income A current lease is required for all REO income properties Must provide proof of ownership Must provide rental payments of 2 months via cancelled checks, deposits clips, or bank records If lease is not available, market rent should be reduced by a vacancy/expense factor of 25% o Trust Income Income from trusts may be used if constant payments will continue for at least the first 3 years of the mortgage term as evidenced by trust income documentation Trust Agreement required confirming amount, distribution frequency, and duration of payments o o o Alimony Income Final Divorce decree or legal separation agreement required Must provide payment evidence of 6 months via cancelled checks, deposit slips, or bank records Note Receivable Income Copy of the note confirming amount and length of payment Must provide payment evidence of 12 months via cancelled checks, deposit slips, or bank records Royalty Payment Income Royalty contract, agreement, or statement confirming amount, frequency, and duration of the income must document a 3 year continuance Must provide payment evidence of 12 months via cancelled checks or bank records/deposits Listing Seasoning For cash out refinances, properties previously listed for sale should be seasoned at least 6 months from the listing contract expiration date. Limitations on Other Real Estate Owned Borrowers are not limited in the number of properties owned however borrower with > 20 financed properties are limited to Owner Occupied or 2 nd Home transactions only. Minimum Loan Amount $150,000 Revised Page 8 of 13

25 BS Non-Sufficient Funds Non-sufficient funds (NSF) or negative balances reflected on the bank statement must be considered. Occurrences included in the analysis are subject to the following tolerances o Up to five (5) occurrences in the most recent twelve (12) month time period is acceptable if there are zero (0) occurrences in the most recent two (2) month time period. o Up to three (3) occurrences are allowed in the most recent twelve (12) month time. o Exception requests for tolerance deviations must include (a) a letter of explanation from the borrower outlining the reason for the occurrences and an explanation of how and when the issue leading to the occurrences was rectified, and (b) additional compensating factors outlined by the supporting the viability of income. Non-Sufficient Funds (NSF) / Overdraft Consideration of the financial strength of a self-employed borrower's business must be taken into account. Overdraft Overdraft protection (Fees) associated with a pre-arranged link to a savings account or line of credit must also be considered unless one of the following conditions exist o Overdraft protection from a depository account: Occurrences may be excluded if statements for the linked account confirm that (a) the linked account balance at the time of the transfer exceeded the amount of the overdraft transfer, (b) the linked account s balance did not report as zero or negative at any point during the statement period of the transfer, and (c) the linked account did not itself receive overdraft protection proceeds during the statement period of the transfer. o Overdraft protection from a line of credit: Occurrences may be excluded if statements for the linked account confirm that (a) the line s credit limit was not exceeded during the statement period of the transfer and (b) a payment amount which equals or exceeds the sum of all overdraft protection occurrences analyzed in the statement period is made within 30 days after the statement close date. Payment Shock Primary Residence Only Payment shock should not exceed 300% of the borrower s current housing payment unless DTI is less than or equal to 36%. If payment shock exceeds this limit the underwriter must provide justification of borrower s ability to handle the increased payment. If the loan purpose is debt consolidation, a payment shock calculation is not required. Payment Shock = (Proposed Housing Payment /Present Housing Payment) * 100 Payment shock is not considered for borrowers who own a home free and clear Points and Fees Total points and fees must be less than 5% Revised Page 9 of 13

26 BS For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable Only) Property Types Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Co-ops Condos Non- Warrantable Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Property Types All Condos Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Property Types Non Warrantable Condos Not Available Revised Page 10 of 13

27 BS Overdraft Overdraft protection (Fees) associated with a pre-arranged link to a savings account or line of credit must also be considered unless one of the following conditions exist o Overdraft protection from a depository account: Occurrences may be excluded if statements for the linked account confirm that (a) the linked account balance at the time of the transfer exceeded the amount of the overdraft transfer, (b) the linked account s balance did not report as zero or negative at any point during the statement period of the transfer, and (c) the linked account did not itself receive overdraft protection proceeds during the statement period of the transfer. o Overdraft protection from a line of credit: Occurrences may be excluded if statements for the linked account confirm that (a) the line s credit limit was not exceeded during the statement period of the transfer and (b) a payment amount which equals or exceeds the sum of all overdraft protection occurrences analyzed in the statement period is made within 30 days after the statement close date. Qualifying Rate and Ratios Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (360 Months) at the time of recast after the interest only period has expired. The interest-only option is a 10-year initial interest-only period followed by 30-year full amortization. DTI Ratio Maximum DTI is 43% (applies to both fully amortizing and interest only) Residual Income Calculation not required Revised Page 11 of 13

28 BS Reserves Reserves for a loan with an Interest Only Feature based upon the interest only payment Cash-out proceeds can only be used for required reserves if the following requirements are met: o Cash-out must be used for debt consolidation; no new obligations can be incurred with loan proceeds. o Net Cash-Out (Cash-In-Hand) may be used to meet reserve requirements if at least one (1) of the following criteria are met Aggregate monthly debt obligations are reduced by a minimum of 15% Aggregate monthly debt obligations are reduced by a minimum of $500 Monthly mortgage obligation on subject property is reduced by a minimum of 10% AND housing history is 1x30x12 or better Reserve requirements are waived for Rate-And-Term Refinance transactions when the transaction results in a reduction to the monthly principal and interest payment of 10% or greater AND housing history is 1x30x12 or better. Waiver not eligible for DTI greater than 50%. For an interest only loan the reduction is based on the amortizing payment used for loan qualification Proceeds from 1031 Exchange cannot be used to meet reserve requirements Gift funds may not be used for reserves requirements. O/O & 2 nd Home Reserves <= $1,500,000 6 months > $1,500, months O/O, 2nd home: LTV equal to or greater than 80%: max 4% O/O, 2nd home: LTV less than 80%: max 6% All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Seller Concessions Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Revised Page 12 of 13

29 BS Tax Liens All income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the following are meet; The file must contain a copy of the repayment agreement A minimum of 6-payments has been made under the plan with all payments made on time The balance of the lien must be included when determining the maximum CLTV for the program Refinance transactions require a subordination agreement from the taxing authority Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 13 of 13

30 BS PRODUCT DESCRIPTION 24 MONTHS BANK STATEMENTS 90% LTV PURCHASE/R&T UP TO $1,500,000 Primary Residence, 2 nd Home* & NOO** Purchase & R/T Refinance Credit Score LTV/CLTV Maximum Loan Amount % $1,500,000 85% $2,500,000 70% $3,000,000 85% $2,000,000 70% $3,000, % $2,000,000 Primary Residence, 2 nd Home* & NOO** - Cash-Out Refinance Credit Score LTV/CLTV Maximum Loan Amount % $1,500,000 75% $2,500,000 65% $3,000,000 80% $1,000,000 75% $2,000,000 60% $3,000,000 80% $1,000,000 75% $2,000,000 *Second Homes Max LTV 80%; ** Investment Property Max LTV 80%; 2-4 Units Properties Max LTV 85%; Condo Properties Max LTV 85%; Non-Warrantable Max LTV 80% Revised Page 1 of 14

31 BS Adjustable Rate Details Age of Documents Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option Available for LTVs <= 85%. Interest Only period is 120 months Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 14

32 BS Down payment funds should be documented for 60 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation included in the loan file. In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other liquid assets. Assets Account Statements should cover most recent 60-dayperiod VOD should be dated within 30 days of loan application date Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves; Vested Retirement Account funds 60% may be considered for closing and/or reserves; Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Assets being used for dividend and interest income may not be used for reserves requirements. When bank statements are used, large deposits must be evaluated. Large deposits are defined as any single deposit that represents more than 75% of the monthly average deposit balance. Large deposits need to be sourced. Use of Business funds: may be used for down payment, closing costs and reserves if the borrower is the sole proprietor or 100% owner of the business (or all borrowers combined own 100%). o Calculation used to determine if business funds are available Average Monthly Business Expense: Use the most recent six (6) month business bank statements, total all withdrawals and divide by six (6). Two (2) Months Expenses: Take Average Monthly Business Expense and multiply by 2. Take the most recent business account ending balance and subtract the Two (2) Months Expense. ( = ) Funds Available: The result, if positive, represents the maximum amount of business funds available to use towards down payment, closing cost and reserves. Borrower Eligibility Eligible: U.S. Citizen Permanent Resident Alien: is a non-u.s. citizen authorized to live and work in the U.S. on a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be documented and meet one of the following criteria: I-151 Permanent Resident Card (Green Card) that does not have an expiration date; I-551 Permanent Resident Card (Green Card) issued for 10 years that has not expired; I- 551 Conditional Permanent Resident Card (Green Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized. A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. In-Eligible: Non-Permanent Resident Alien Foreign national Non-Occupant Co-Borrowers Co-Signers Guarantors Any form of Trust Revised Page 3 of 14

33 BS Cash Out Amount Limit (% of Prop Value) O/O & 2 nd Home Loan Amount Loan Amount <= $1m > $1m NOO SFR 75% 70% SFR 65% Condo / 2-4 Units 70% 70% Condo / 2-4 Units 60% Cash-Out Requirements Collections And Charge-Offs If borrower has held title to the property less than 6 months, the LTV is based on the lesser of purchase price or appraised value. Note: The following items may be paid off with proceeds from a Rate/Term refinance: Non-purchase money seconds with 12 month seasoning. HELOCs (Home Equity Line of Credit) with total withdrawals not exceeding $2,000 in the last twelve (12) months. Borrowers requesting a cash-out loan must provide a letter of explanation (aka cash-out letter ) regarding the use of the cash-out proceeds Borrowers requesting a cash-out loan on an investment property must provide a letter of explanation (aka cash-out letter ) regarding the business use of the cash-out proceeds. Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $10,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following: o Payments for open charge-offs or collections are included in the DTI (Subject to program DTI restrictions). Payment calculated at 5% of balance of remaining unpaid collections and charge-offs. o Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserve requirements. Revised Page 4 of 14

34 BS Credit Tradelines - Standard: 3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months with activity in the last 12 months; Limited: N/A Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing. Matrix BS Minimum FICO 660 Housing 1x30x12 BK (Chap 13 Discharge) 12 Mo BK (Other) 24 Mo Foreclosure 24 Mo Short Sale / DIL 24 Mo Credit Scores The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the representative credit score for qualifying. Eligible States See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase & R/T Only; No 50(a)(6)) Escrow Waivers First Time Home Buyers Impounds are required. Primary residence only Minimum 660 credit score Minimum 6 months reserves 12 month rental history required reflecting 0x30. Payment shock limited as follows: >36% DTI <=36 DTI Credit Score >= 660: 3x current housing Payment shock not applicable FTHB with gift funds: 1.5x current housing Payment shock not applicable Revised Page 5 of 14

35 BS Gift Funds Gift Funds are acceptable if ONE of the following applies 1. A 5% down payment has been made by the borrower from their own resources % Gift Funds are allowed for loans only with a maximum LTV of 75%.Borrower(s) must meet both reserve and residual income requirements. Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt; Gift funds may not be used to meet reserve requirements. Income/Asset Verification All borrowers must be qualified using current verifiable income, not projected income. A borrower with a 25% or greater ownership interest in a business is considered self-employed and must be evaluated as a self-employed borrower. Borrower must document two years current continuous self-employment with business license (if available for nature of business) and statement from corporate accountant/cpa confirming the same. Borrowers whose self-employment cannot be independently verified are not eligible. Revised Page 6 of 14

36 BS BORROWERS MUST BE SELF-EMPLOYED TO QUALIFY FOR THIS PROGRAM. Income Calculation / Documentation Bank Statements Using Personal Bank Statements to Qualify Business license (if available depending on nature of business) Validation of minimum of 2 years existence of the business from one of the following: Business License, Letter from Tax preparer, Secretary of State Filing or equivalent. Most recent 24 months personal bank statements - Utilize 24 months average deposits to qualify (minus disqualified/unrelated deposits) Most recent 2 months business bank statements Demonstrate transfers from business to personal bank account statements provided Borrowers must own a minimum of 25% of business to be considered Self-Employed, for use of personal of personal bank statements. Qualifying income may not exceed the income indicated on the initial Personal Bank Statement Analysis Income should be calculated based on a 24 month average of total deposits minus any unusually large deposits exceeding 50% of the monthly income (as defined by Fannie Mae) into personal accounts must be explained via LOE. If LOE is sufficient, no sourcing required. Pattern of deposits and payment should be consistent ATM deposits may be included if a consistent pattern of such deposits is present; Expectations of changes in deposit pattern must be considered; Income documented separately but comingled must be backed out of deposits; Two months business bank statements; o Must evidence activity to support business operations, and o Reflect transfers to the personal account Using Business Bank Statements / Co-mingled (Business & Personal) to Qualify Business license (if available depending on nature of business) Validation of minimum of 2 years existence of the business from one of the following: Business License, Letter from Licensed Tax preparer, Secretary of State Filing or equivalent. Borrowers utilizing business bank statements that own > 50% but < 100% of a business will be qualified at the P&L net income multiplied by their ownership. Less than 50% ownership will require exception approval for use of Business Bank Statements Documentation Options: 1. Business Expense Statement Letter: (Option 1) o An expense statement specifying business expenses as a percent of the gross annual sales/revenue prepared and signed by a licensed tax preparer. o 24 months of business bank statements covering the most recent time period. o Net Income determined by total deposits per bank statements less total expenses. Total expenses calculated by multiplying total deposits by the expense factor provided by licensed tax preparer. Qualifying income is the lower of the net income from the analysis or the income indicated on the initial 1003 Continued on next page Revised Page 7 of 14

37 BS Month P&L Statement (Option 2) o 24 Month P&L prepared by a licensed tax preparer o 24 Months of business bank statements covering the most recent time period and matching the time period of the P&L. o P&L Sales/Revenue must be supported by the provided bank statements. Total deposits per bank statements, minus any inconsistent deposits, must be no more than 10% below revenue reflected on P&L. The bank statements and P&L must cover the same time period. Qualifying income is the lower of the Net Income indicated on the P&L or the income indicate d on the initial 1003 Income Calculation / Documentation (continued) Month Borrower Prepared P&L Statement: (Option 3) o 24-month P&L prepared and signed by the borrower o A business narrative provided by the borrower which includes detail regarding the size and operating profile of the business addressing; location/rent, number of employees/contractors, COGS, Trucks/Equipment (Owned or leased). The expenses listed on the P&L should address all items disclosed in the narrative. o 24-months of business bank statements covering the most recent time-period and matching the same period covered by the P&L o Borrower is required to provide separate P&Ls & business narrative for each business being used in qualifying o P&L Sales/Revenue must be supported by the provided bank statements. Total deposits per bank statements, minus any inconsistent deposits, must be no more than 10% below sales/revenue reflected on the P&L. The bank statements and P&L must cover the same time periods. Qualifying income is the lower of the Net Income indicated on the P&L or the income indicated on the initial 1003 o The analysis of the business and P&L will require a basic understanding of the borrowers business. The narrative provided by the borrower should be reviewed to determine if the business provides a service or produces/manufactures goods. If the business has a web site, it should be reviewed to gain additional information on the business and its size. The goal of the analysis is to determine if the individual/total expenses as provided by the borrower on the P&L appear reasonable for the type of business. The items to consider in this analysis; Description of business from narrative Location of business Home based or lease space (Google address) Utilities Phone, electric, internet Number of employees or contractors employee taxes, payroll expense Cost of Goods Sold What type of materials does the business use or manufacture. Equipment or Trucks/Vehicles owned or leased Type of client base retail or commercial Any recurring payment on the bank statements should be compared to an expense item on the P&L for reasonableness. The underwriter should provide notes of their analysis on the U/W approval form/1008/or within the bank statement analysis. Expenses must be reasonable for the type of business; Pattern of deposits and payment should be consistent; Expectations of changes in deposit pattern must be considered; Income documented separately but co-mingled must be backed out of deposits Revised Page 8 of 14

38 BS Self Employed/Wage Earner Combination - Joint borrowers with 1 wage earner and 1 self-employed business owner can verify income separately, with the self-employed borrower utilizing bank statements and the wage earner providing pay stubs/w-2s. The wage earner 4506T should include W-2 transcripts only. The self-employed business owner must be the primary wage earner and the combination scenario must be qualified and priced as a bank statement loan. Income Misc. Sources Component Sources of Income - A borrower who has a self-employed business and also receives income from other sources is eligible for the bank statement program. Income sources include but are not limited to rental properties, trust & investment, alimony, etc. These income sources must be separately documented on the 1003 and must be separately supported by bank statement deposits. o Rental Income A current lease is required for all REO income properties Must provide proof of ownership Must provide rental payments of 2 months via cancelled checks, deposits clips, or bank records If lease is not available, market rent should be reduced by a vacancy/expense factor of 25% o Trust Income Income from trusts may be used if constant payments will continue for at least the first 3 years of the mortgage term as evidenced by trust income documentation Trust Agreement required confirming amount, distribution frequency, and duration of payments o o o Alimony Income Final Divorce decree or legal separation agreement required Must provide payment evidence of 6 months via cancelled checks, deposit slips, or bank records Note Receivable Income Copy of the note confirming amount and length of payment Must provide payment evidence of 12 months via cancelled checks, deposit slips, or bank records Royalty Payment Income Royalty contract, agreement, or statement confirming amount, frequency, and duration of the income must document a 3 year continuance Must provide payment evidence of 12 months via cancelled checks or bank records/deposits Listing Seasoning For cash out refinances, properties previously listed for sale should be seasoned at least 6 months from the listing contract expiration date. Limitations on Other Real Estate Owned Borrowers are not limited in the number of properties owned however borrower with > 20 financed properties are limited to Owner Occupied or 2 nd Home transactions only. Minimum Loan Amount $150,000 Revised Page 9 of 14

39 BS Non-Sufficient Funds Non-sufficient funds (NSF) or negative balances reflected on the bank statement must be considered. Occurrences included in the analysis are subject to the following tolerances o Up to five (5) occurrences in the most recent twelve (12) month time period is acceptable if there are zero (0) occurrences in the most recent two (2) month time period. o Up to three (3) occurrences are allowed in the most recent twelve (12) month time. o Exception requests for tolerance deviations must include (a) a letter of explanation from the borrower outlining the reason for the occurrences and an explanation of how and when the issue leading to the occurrences was rectified, and (b) additional compensating factors outlined by the supporting the viability of income. Non-Sufficient Funds (NSF) / Overdraft Consideration of the financial strength of a self-employed borrower's business must be taken into account. Overdraft Overdraft protection (Fees) associated with a pre-arranged link to a savings account or line of credit must also be considered unless one of the following conditions exist o Overdraft protection from a depository account: Occurrences may be excluded if statements for the linked account confirm that (a) the linked account balance at the time of the transfer exceeded the amount of the overdraft transfer, (b) the linked account s balance did not report as zero or negative at any point during the statement period of the transfer, and (c) the linked account did not itself receive overdraft protection proceeds during the statement period of the transfer. o Overdraft protection from a line of credit: Occurrences may be excluded if statements for the linked account confirm that (a) the line s credit limit was not exceeded during the statement period of the transfer and (b) a payment amount which equals or exceeds the sum of all overdraft protection occurrences analyzed in the statement period is made within 30 days after the statement close date. Payment Shock Primary Residence Only Payment shock should not exceed 300% of the borrower s current housing payment unless DTI is less than or equal to 36%. If payment shock exceeds this limit the underwriter must provide justification of borrower s ability to handle the increased payment. If the loan purpose is debt consolidation, a payment shock calculation is not required. Payment Shock = (Proposed Housing Payment /Present Housing Payment) * 100 Payment shock is not considered for borrowers who own a home free and clear Points and Fees Total points and fees must be less than 5% Revised Page 10 of 14

40 BS Prepayment Penalty Investment Properties may have a prepayment penalty. Prepayment penalties on primary residence and second home transactions are prohibited. Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping Property Types The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details) Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Co-ops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Property Types All Condos Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Revised Page 11 of 14

41 BS Property Types Non Warrantable Condos Maximum LTV/CLTV: 80% Maximum Loan Amount: $1,500,000 Require Project Approval by GreenBox Loans, Inc. Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units. Qualifying Rate and Ratios Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (360 Months) at the time of recast after the interest only period has expired. The interest-only option is a 10-year initial interest-only period followed by 30-year full amortization. DTI Ratio Maximum DTI is 50% (applies to both fully amortizing and interest only) LTVs > 85%, maximum DTI is 43%. Residual Income Calculation not required. Revised Page 12 of 14

42 BS Reserves Reserves for a loan with an Interest Only Feature based upon the interest only payment Cash-out proceeds can only be used for required reserves if the following requirements are met: o Cash-out must be used for debt consolidation; no new obligations can be incurred with loan proceeds. o Net Cash-Out (Cash-In-Hand) may be used to meet reserve requirements if at least one (1) of the following criteria are met Aggregate monthly debt obligations are reduced by a minimum of 15% Aggregate monthly debt obligations are reduced by a minimum of $500 Monthly mortgage obligation on subject property is reduced by a minimum of 10% AND housing history is 1x30x12 or better Reserve requirements are waived for Rate-And-Term Refinance transactions when the transaction results in a reduction to the monthly principal and interest payment of 10% or greater AND housing history is 1x30x12 or better. Waiver not eligible for DTI greater than 50%. For an interest only loan the reduction is based on the amortizing payment used for loan qualification Proceeds from 1031 Exchange cannot be used to meet reserve requirements Gift funds may not be used for reserves requirements. O/O & 2 nd Home Reserves NOO - Loan Amount Reserves <= $1,000,000 4 months <= $1,000,000 6 months $1,000,001 - $2,500,000 6 Months > $2,500, months > $1,000, Months O/O, 2nd home: LTV equal to or greater than 80%: max 4% O/O, 2nd home: LTV less than 80%: max 6% NOO: LTV equal to or less than 75%: Max is 3% NOO: LTV greater than 75%: Max is 2% Seller Concessions All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Revised Page 13 of 14

43 BS Tax Liens All income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the following are meet; The file must contain a copy of the repayment agreement A minimum of 6-payments has been made under the plan with all payments made on time The balance of the lien must be included when determining the maximum CLTV for the program Refinance transactions require a subordination agreement from the taxing authority Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 14 of 14

44 BS-NP PRODUCT DESCRIPTION 24 MONTHS BANK STATEMENTS BANK STATEMENTS W/ 580 FICO 12 MONTHS FROM HOUSING EVENT Primary Residence, 2 nd Home* & NOO** Purchase & R/T Refinance Credit Score LTV/CLTV Maximum Loan Amount % $2,000,000 70% $3,000, % $1,500,000 80% $2,000, % $1,500,000 Primary Residence, 2 nd Home* & NOO** - Cash-Out Refinance Credit Score LTV/CLTV Maximum Loan Amount 80% $1,000, % $2,000,000 60% $3,000, % $1,000,000 75% $2,000, % $1,500, % $1,000,000 70% $1,500,000 * Second Homes Max LTV 80%; ** Investment Property Max LTV 70%; 2-4 Units Properties Max LTV 85%; Condo Properties Max LTV 85%; Non-Warrantable Max LTV 80% Revised Page 1 of 14

45 BS-NP Adjustable Rate Details Age of Documents Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option - None Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 14

46 BS-NP Down payment funds should be documented for 60 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation included in the loan file. In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other liquid assets. Assets VOD should be dated within 30 days of loan application date Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves; Vested Retirement Account funds 60% may be considered for closing and/or reserves; Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Assets being used for dividend and interest income may not be used for reserves requirements. When bank statements are used, large deposits must be evaluated. Large deposits are defined as any single deposit that represents more than 75% of the monthly average deposit balance. Large deposits need to be sourced. Use of Business funds: may be used for down payment, closing costs and reserves if the borrower is the sole proprietor or 100% owner of the business (or all borrowers combined own 100%). o Calculation used to determine if business funds are available Average Monthly Business Expense: Use the most recent six (6) month business bank statements, total all withdrawals and divide by six (6). Two (2) Months Expenses: Take Average Monthly Business Expense and multiply by 2. Take the most recent business account ending balance and subtract the Two (2) Months Expense. ( = ) Funds Available: The result, if positive, represents the maximum amount of business funds available to use towards down payment, closing cost and reserves. Chapter 7 and Chapter 11 bankruptcies must be discharged for a minimum of 12 months from closing date. Seasoning is measured from the month and year of discharge. Bankruptcy There is no seasoning requirement for Chapter 13 bankruptcies when the bankruptcy is discharged prior to closing. If the Chapter 13 bankruptcy was dismissed, 12-months seasoning is required from the date of the dismissal. A Chapter 13 bankruptcy may remain open after loan closing when all of the following requirements are met: A minimum 12-month repayment period in the bankruptcy has elapsed. All required bankruptcy plan payments have been made on time. The borrower has received written permission from bankruptcy court to enter into the mortgage transaction. Full bankruptcy papers may be required. A cash-out refinance to pay off the remaining balance of a Chapter 13 bankruptcy is allowed. In addition to meeting the requirements listed above, the transaction must provide an overall reduction in monthly obligations for the borrower. Revised Page 3 of 14

47 BS-NP Borrower Eligibility Eligible: U.S. Citizen Permanent Resident Alien: is a non-u.s. citizen authorized to live and work in the U.S. on a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be documented and meet one of the following criteria: I-151 Permanent Resident Card (Green Card) that does not have an expiration date; I-551 Permanent Resident Card (Green Card) issued for 10 years that has not expired; I-551 Conditional Permanent Resident Card (Green Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized. A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. In-Eligible: Non-Permanent Resident Alien Foreign national Non-Occupant Co-Borrowers Co-Signers Guarantors Any form of Trust Cash Out Amount Limit (% of Prop Value) O/O & 2 nd Home Loan Amount Loan Amount <= $1m > $1m NOO SFR 75% 70% SFR 65% Condo / 2-4 Units 70% 70% Condo / 2-4 Units 60% Cash-Out Requirements If borrower has held title to the property less than 6 months, the LTV is based on the lesser of purchase price or appraised value. Note: The following items may be paid off with proceeds from a Rate/Term refinance: Non-purchase money seconds with 12 month seasoning. HELOCs (Home Equity Line of Credit) with total withdrawals not exceeding $2,000 in the last twelve (12) months. Borrowers requesting a cash-out loan must provide a letter of explanation (aka cash-out letter ) regarding the use of the cash-out proceeds Borrowers requesting a cash-out loan on an investment property must provide a letter of explanation (aka cash-out letter ) regarding the business use of the cash-out proceeds. Revised Page 4 of 14

48 BS-NP Collections And Charge-Offs Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $10,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following: o Payments for open charge-offs or collections are included in the DTI (Subject to program DTI restrictions). Payment calculated at 5% of balance of remaining unpaid collections and charge-offs. o Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserve requirements. Credit Standard: 3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months with activity in the last 12 months Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing. Matrix BS-NP Minimum FICO 580 Housing 0x90x12 BK (Chap 13 Discharge) Settled BK (Other) 12 Mo Foreclosure 12 Mo Short Sale / DIL Settled Credit Scores The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the representative credit score for qualifying. Eligible States See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase & R/T Only; No 50(a)(6)) Escrow Waivers Impounds are required. Revised Page 5 of 14

49 BS-NP Foreclosure/Short Sale/Deed In Lieu/Notice Of Default A Housing Event is a completed foreclosure, short sale, deed in lieu or notice of default (or similar notice required under state law as an initial phase of the foreclosure process). A severe delinquency (90 days or greater) is also considered a Housing Event. Seasoning is measured from the date of completed sale or final property transfer. The foreclosure action must be completed prior to loan closing with no outstanding deficiency balance remaining. If the property was surrendered in a Chapter 7 bankruptcy, the bankruptcy discharge date is used for seasoning. The foreclosure action is not required to be fully complete. First Time Home Buyers Primary residence only Minimum 580 credit score Minimum 6 months reserves 12 month rental history required reflecting 0x30. Payment shock limited as follows: >36% DTI <=36 DTI Credit Score >= 620: 3x current housing Payment shock not applicable Credit Score < 620: 2x current housing Payment shock not applicable FTHB with gift funds: 1.5x current housing Payment shock not applicable Gift Funds Gift Funds are acceptable if ONE of the following applies 1. A 5% down payment has been made by the borrower from their own resources % Gift Funds are allowed for loans only with a maximum LTV of 75%.Borrower(s) must meet both reserve and residual income requirements. Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt; Gift funds may not be used to meet reserve requirements Income/Asset Verification All borrowers must be qualified using current verifiable income, not projected income. A borrower with a 25% or greater ownership interest in a business is considered self-employed and must be evaluated as a self-employed borrower. Borrower must document two years current continuous self-employment with business license (if available for nature of business) and statement from corporate accountant/cpa confirming the same. Borrowers whose self-employment cannot be independently verified are not eligible. Revised Page 6 of 14

50 BS-NP BORROWERS MUST BE SELF-EMPLOYED TO QUALIFY FOR THIS PROGRAM. Income Calculation / Documentation Using Personal Bank Statements to Qualify Business license (if available depending on nature of business) Validation of minimum of 2 years existence of the business from one of the following: Business License, Letter from Tax preparer, Secretary of State Filing or equivalent. Most recent 24 months personal bank statements - Utilize 24 months average deposits to qualify (minus disqualified/unrelated deposits) Most recent 2 months business bank statements Demonstrate transfers from business to personal bank account statements provided Borrowers must own a minimum of 25% of business to be considered Self-Employed, for use of personal of personal bank statements. Qualifying income may not exceed the income indicated on the initial Personal Bank Statement Analysis Income should be calculated based on a 24 month average of total deposits minus any unusually large deposits exceeding 50% of the monthly income (as defined by Fannie Mae) into personal accounts must be explained via LOE. If LOE is sufficient, no sourcing required. Pattern of deposits and payment should be consistent ATM deposits may be included if a consistent pattern of such deposits is present; Expectations of changes in deposit pattern must be considered; Income documented separately but comingled must be backed out of deposits; Two months business bank statements; o Must evidence activity to support business operations, and o Reflect transfers to the personal account Using Business Bank Statements / Co-mingled (Business & Personal) to Qualify Business license (if available depending on nature of business) Validation of minimum of 2 years existence of the business from one of the following: Business License, Letter from Licensed Tax preparer, Secretary of State Filing or equivalent. Borrowers utilizing business bank statements that own > 50% but < 100% of a business will be qualified at the P&L net income multiplied by their ownership. Less than 50% ownership will require exception approval for use of Business Bank Statements Documentation Options: 1. Business Expense Statement Letter: (Option 1) o An expense statement specifying business expenses as a percent of the gross annual sales/revenue prepared and signed by a licensed tax preparer. o 24 months of business bank statements covering the most recent time period. o Net Income determined by total deposits per bank statements less total expenses. Total expenses calculated by multiplying total deposits by the expense factor provided by licensed tax preparer. Qualifying income is the lower of the net income from the analysis or the income indicated on the initial 1003 Continued on next page Revised Page 7 of 14

51 BS-NP Month P&L Statement (Option 2) o 24 Month P&L prepared by a licensed tax preparer o 24 Months of business bank statements covering the most recent time period and matching the time period of the P&L. o P&L Sales/Revenue must be supported by the provided bank statements. Total deposits per bank statements, minus any inconsistent deposits, must be no more than 10% below revenue reflected on P&L. The bank statements and P&L must cover the same time period. Qualifying income is the lower of the Net Income indicated on the P&L or the income indicate d on the initial 1003 Income Calculation / Documentation (continued) Month Borrower Prepared P&L Statement: (Option 3) ONLY available for Fico > 620 o 24-month P&L prepared and signed by the borrower o A business narrative provided by the borrower which includes detail regarding the size and operating profile of the business addressing; location/rent, number of employees/contractors, COGS, Trucks/Equipment (Owned or leased). The expenses listed on the P&L should address all items disclosed in the narrative. o 24-months of business bank statements covering the most recent time-period and matching the same period covered by the P&L o Borrower is required to provide separate P&Ls & business narrative for each business being used in qualifying o P&L Sales/Revenue must be supported by the provided bank statements. Total deposits per bank statements, minus any inconsistent deposits, must be no more than 10% below sales/revenue reflected on the P&L. The bank statements and P&L must cover the same time periods. Qualifying income is the lower of the Net Income indicated on the P&L or the income indicated on the initial 1003 o The analysis of the business and P&L will require a basic understanding of the borrowers business. The narrative provided by the borrower should be reviewed to determine if the business provides a service or produces/manufactures goods. If the business has a web site, it should be reviewed to gain additional information on the business and its size. The goal of the analysis is to determine if the individual/total expenses as provided by the borrower on the P&L appear reasonable for the type of business. The items to consider in this analysis; Description of business from narrative Location of business Home based or lease space (Google address) Utilities Phone, electric, internet Number of employees or contractors employee taxes, payroll expense Cost of Goods Sold What type of materials does the business use or manufacture. Equipment or Trucks/Vehicles owned or leased Type of client base retail or commercial Any recurring payment on the bank statements should be compared to an expense item on the P&L for reasonableness. The underwriter should provide notes of their analysis on the U/W approval form/1008/or within the bank statement analysis. Expenses must be reasonable for the type of business; Pattern of deposits and payment should be consistent; Expectations of changes in deposit pattern must be considered; Income documented separately but co-mingled must be backed out of deposits Revised Page 8 of 14

52 BS-NP Self Employed/Wage Earner Combination - Joint borrowers with 1 wage earner and 1 self-employed business owner can verify income separately, with the self-employed borrower utilizing bank statements and the wage earner providing pay stubs/w-2s. The wage earner 4506T should include W-2 transcripts only. The self-employed business owner must be the primary wage earner and the combination scenario must be qualified and priced as a bank statement loan. Income Misc. Sources Component Sources of Income - A borrower who has a self-employed business and also receives income from other sources is eligible for the bank statement program. Income sources include but are not limited to rental properties, trust & investment, alimony, etc. These income sources must be separately documented on the 1003 and must be separately supported by bank statement deposits. o Rental Income A current lease is required for all REO income properties Must provide proof of ownership Must provide rental payments of 2 months via cancelled checks, deposits clips, or bank records If lease is not available, market rent should be reduced by a vacancy/expense factor of 25% o Trust Income Income from trusts may be used if constant payments will continue for at least the first 3 years of the mortgage term as evidenced by trust income documentation Trust Agreement required confirming amount, distribution frequency, and duration of payments o o o Alimony Income Final Divorce decree or legal separation agreement required Must provide payment evidence of 6 months via cancelled checks, deposit slips, or bank records Note Receivable Income Copy of the note confirming amount and length of payment Must provide payment evidence of 12 months via cancelled checks, deposit slips, or bank records Royalty Payment Income Royalty contract, agreement, or statement confirming amount, frequency, and duration of the income must document a 3 year continuance Must provide payment evidence of 12 months via cancelled checks or bank records/deposits Limitations on Other Real Estate Owned Borrowers are not limited in the number of properties owned however borrower with > 20 financed properties are limited to Owner Occupied or 2 nd Home transactions only. Listing Seasoning For cash out refinances, properties previously listed for sale should be seasoned at least 6 months from the listing contract expiration date. Minimum Loan Size $150,000 Revised Page 9 of 14

53 BS-NP Non-Sufficient Funds Non-sufficient funds (NSF) or negative balances reflected on the bank statement must be considered. Occurrences included in the analysis are subject to the following tolerances o Up to five (5) occurrences in the most recent twelve (12) month time period is acceptable if there are zero (0) occurrences in the most recent two (2) month time period. o Up to three (3) occurrences are allowed in the most recent twelve (12) month time. o Exception requests for tolerance deviations must include (a) a letter of explanation from the borrower outlining the reason for the occurrences and an explanation of how and when the issue leading to the occurrences was rectified, and (b) additional compensating factors outlined by the supporting the viability of income. Non-Sufficient Funds (NSF) / Overdraft Consideration of the financial strength of a self-employed borrower's business must be taken into account. Overdraft Overdraft protection (Fees) associated with a pre-arranged link to a savings account or line of credit must also be considered unless one of the following conditions exist o Overdraft protection from a depository account: Occurrences may be excluded if statements for the linked account confirm that (a) the linked account balance at the time of the transfer exceeded the amount of the overdraft transfer, (b) the linked account s balance did not report as zero or negative at any point during the statement period of the transfer, and (c) the linked account did not itself receive overdraft protection proceeds during the statement period of the transfer. o Overdraft protection from a line of credit: Occurrences may be excluded if statements for the linked account confirm that (a) the line s credit limit was not exceeded during the statement period of the transfer and (b) a payment amount which equals or exceeds the sum of all overdraft protection occurrences analyzed in the statement period is made within 30 days after the statement close date. Payment Shock Primary Residence Only Payment shock should not exceed 300% of the borrower s current housing payment unless DTI is less than or equal to 36%. If payment shock exceeds this limit the underwriter must provide justification of borrower s ability to handle the increased payment. If the loan purpose is debt consolidation, a payment shock calculation is not required. Payment Shock = (Proposed Housing Payment /Present Housing Payment) * 100 Payment shock is not considered for borrowers who own a home free and clear Points and Fees Total points and fees must be less than 5% Revised Page 10 of 14

54 BS-NP Prepayment Penalty Investment Properties may have a prepayment penalty. Prepayment penalties on primary residence and second home transactions are prohibited. Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping Property Types Property Types All Condos The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details) Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Co-ops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Revised Page 11 of 14

55 BS-NP Property Types Non Warrantable Condos Maximum LTV/CLTV: 80% Maximum Loan Amount: $1,500,000 Require Project Approval by GreenBox Loans, Inc. Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units. Qualifying Rate and Ratios Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment DTI Ratio Maximum DTI is 50% (applies to both fully amortizing and interest only), Primary residence only Maximum DTI is 43% for second home and investment properties Maximum DTI is 43% for FICOs under 600 Residual Income Calculation not required Revised Page 12 of 14

56 BS-NP Reserves Cash-out proceeds can only be used for required reserves if the following requirements are met: o Cash-out must be used for debt consolidation; no new obligations can be incurred with loan proceeds. o Net Cash-Out (Cash-In-Hand) may be used to meet reserve requirements if at least one (1) of the following criteria are met Aggregate monthly debt obligations are reduced by a minimum of 15% Aggregate monthly debt obligations are reduced by a minimum of $500 Monthly mortgage obligation on subject property is reduced by a minimum of 10% AND housing history is 1x30x12 or better Reserve requirements are waived for Rate-And-Term Refinance transactions when the transaction results in a reduction to the monthly principal and interest payment of 10% or greater AND housing history is 1x30x12 or better. Proceeds from 1031 Exchange cannot be used to meet reserve requirements Gift funds may not be used for reserves requirements O/O & 2 nd Home- Loan Amount Reserves NOO - Loan Amount Reserves <= $1,000,000 4 months <= $1,000,000 6 months $1,000,001 - $2,000,000 6 Months $1,000,001 - $1,500, Months > $2,000, Months > $1,500, Months O/O, 2 nd home: LTV equal to or greater than 80%: max 4% O/O, 2 nd home: LTV less than 80%: max 6% NOO: LTV equal to or less than 75%: Max is 3% All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Seller Concessions Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Revised Page 13 of 14

57 BS-NP Tax Liens All income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the following are meet; The file must contain a copy of the repayment agreement A minimum of 6-payments has been made under the plan with all payments made on time The balance of the lien must be included when determining the maximum CLTV for the program Refinance transactions require a subordination agreement from the taxing authority Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 14 of 14

58 5000-INV-PP 5000-INV-FN-PP PRODUCT DESCRIPTION INVESTOR PROPERTY $3,000,000 MAX LOAN AMOUNT NON-OWNER OCCUPIED NO RESERVES NO RATIOS Maximum LTV/CLTV FICO Purchase Rate / Term Cash Out % 75% 70% % 70% 65% Foreign National 75% 65% 60% Additional Program Requirements Program LTV Loan Size > $1,000,000 5% reduction, Loan Size > $1,000,000 & FICO <=700 65% Max First Time Investors 5% reduction 2-4 Units 70% Max Condos 75% Max Unleased Properties (Refinance only): 65% Maximum LTV Maximum cumulative LTV adjustments, shall not go below 60% Revised Page 1 of 12

59 5000-INV-PP 5000-INV-FN-PP Accounts Adjustable Rate Details Funds held in a checking, savings, money market, certificate of deposit, or other depository accounts can be used for down payment, closing costs, and reserves. Business Accounts: Borrowing entity business accounts may be used. Non-borrowing entity business account will only be permitted if the guarantor(s) constitute 100% ownership of the business. Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option - Available for LTVs <= 80%. Interest Only period is 120 months Age of Documents Credit Report/Credit Documentation: 90 days old at the time of closing Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Revised Page 2 of 12

60 5000-INV-PP 5000-INV-FN-PP Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C4,C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Assets Borrower Eligibility Verification of assets is required for purchase or refinance transactions to evidence sufficient funds to close. Assets must be verified with most recent 2 months account statements, quarterly account statement, or Written VOD. Reserves are not required. Sourcing of deposits is not required; however, verification of large or unusual deposits may be required at the discretion of GreenBox Loans. Eligible Borrowers:US Citizen Permanent Resident Alien Non-Permanent Resident Alien Foreign National A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. POA is not available for Foreign National Ineligible Borrowers - Any form of Trust Revised Page 3 of 12

61 5000-INV-PP 5000-INV-FN-PP Cash Out Amount Limit (% of Prop Value) Investment 5000-INV SFR 65% Condo / 2-4 Units 60% Collections And Charge- Offs Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $10,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Compliance Compliance with all applicable Federal and State regulations Credit Borrower 3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months with activity in the last 12 months 24 months seasoning for bankruptcy 24 months seasoning for foreclosure, short sale, or deed-in-lieu Evidence of current property ownership required 1x30 last 12 months for primary residence 1x60 last 12 months for investment properties; purchases only with a 5% reduction in LTV 1x60 last 12 months for non-mortgage history Credit - Scores The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the representative credit score for qualifying. Foreign Nationals without an ITN are not subject to FICO requirements Credit History - Bankruptcy (all Chapters) All bankruptcies must be discharged at least 24 months prior to closing. Revised Page 4 of 12

62 Credit History - Foreclosure/Short The housing events must be completed at least 24 months prior to closing. Sale/Deed In Lieu/Notice Credit History - Late Payments Rolling late payments are not permitted. Each occurrence of a contractual delinquency is considered individually for loan eligibility. Recent late payments on all consumer debt may not exceed the following: Non-mortgage history may not exceed 1X60 over prior 12 months Credit History - All judgments and tax liens must be paid prior to closing. Judgements & Tax Liens Standard: 3 tradelines reporting for 12+ mo's or 2 tradelines reporting for 24+ mo's with activity in the last 12 mo's; Limited: N/A 5000-INV-PP 5000-INV-FN-PP Credit - Tradeline Requirements Eligible States Employment / Income Analysis Escrows Waivers To qualify as an acceptable tradeline, the credit line must be reflected on the borrower s credit report. The account must have activity in the past 12 months and may be open or closed. Accounts with delinquencies are allowed when the account is no more than 30-days past due at time of application. An acceptable 12- or 24- month housing history not reporting on credit may also be used as a tradeline. Credit lines on which the borrower is not obligated to make payments are not acceptable for establishing a minimum history. Examples of unacceptable tradelines include loans in a deferment period, collection or charged-off accounts, accounts discharged through bankruptcy, and authorized user accounts. Student loans can be counted as tradelines as long as they are in repayment and are not deferred. Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing See GreenBox Loans, Inc.'s "Location" on web page The Employment section of the Initial Application (1003) is required to be completed by the borrower(s), income should be left blank. There is no employment verification or income analysis. Impounds are required Revised Page 5 of 12

63 5000-INV-PP 5000-INV-FN-PP First Time Investors / Experienced Investor First Time Investor - Anyone who has not owned an investment property during the last 12 months. Borrower does not need to currently own an investment property (could have been sold) as long as there is evidence that the borrower was an Experienced Investor within the last 12 months. An Experienced Investor - A borrower who has owned two (2) or more properties (including primary residence), residential or commercial, within the most recent twelve (12) months, with one (1) having documented rental income by a signed lease agreement or twelve (12) months cancelled checks Borrower must own a primary residence (Does not apply to Foreign National program) but does not need to be Financed. US Borrowers renting their primary residence do not qualify for this program. Max LTV 75% Assets Held in U.S. Bank Verification of assets is required for purchase or refinance transactions to evidence sufficient funds to close. Seasoning of funds and reserves are not required. Foreign National Assets Held in Foreign Accounts Assets held in foreign accounts may be used as a source of funds to close. These funds must be transferred to a U.S. domiciled account in the borrower s name at least ten (10) days prior to closing. Documenting Assets Held in Foreign Accounts: o o Assets must be verified in U.S. Dollar equivalency at the current exchange rate via either or the Wall Street Journal conversion table. A copy of the two (2) most recent statements of that account. If the funds are not seasoned a minimum of sixty (60) days, a letter of explanation is required along with the information to comprise a sixty (60) day chain of funds. UK (United Kingdom) Borrowers Only: Use of specific foreign exchange services such as MoneyCorp Halo Financial Currencies Direct or TransferWise in order to transfer funds directly to the closing agent directly. Borrower must have and maintain a US Bank Account regardless of transferring closing funds directly to the closing agent. Revised Page 6 of 12

64 5000-INV-PP 5000-INV-FN-PP Foreign National - Borrower Eligibility FOREIGN NATIONAL PROGRAM SPECIFIC DOCUMENTATION REQUIREMENTS Visa types allowed: B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P-1, P-2, TN NAFTA, Laser Visa The following are required as evidence the borrower is in the U.S legally o Copy of the borrowers valid and unexpired passport (including photograph) o Copy of the borrower s valid and unexpired visa (including photograph) OR an I-797 form with valid extension dates and I-94. Borrowers from Countries participating in the State Department s Visa Waiver Program (VWP) or Citizens of Canada and Bermuda are not required to provide a valid visa. Participating countries can be found at or If a non-u.s. citizen is borrowing with a U.S. citizen, Foreign National documentation requirements still apply. All parties involved on transaction must be screened through exclusionary lists, must be cleared through OFAC's SND list, search of Specially Designated Nationals & Blocked Persons List may be completed via US Department of Treasury: Borrowers from OFAC sanctioned countries are ineligible Individuals with Diplomatic immunity not eligible All borrowers must complete IRS form W-8BEN If vesting in LLC, LLC must be Domestic Domiciled. Foreign National Credit matrix Credit Score Trades Mortgage History Bankruptcy/Foreclosure Judgment/Tax Lien/Collections/Charge-Offs Credit Matrix 620 if available; qualifying score is the middle of 3 or lower of 2 scores 3 trades minimum, all with 24 months credit history 1 x 30 last 12 months None within 2 years Must be paid. New non-medical items with a cumulative total > $5,000 in the last 24 months will exclude the borrower from this program. Revised Page 7 of 12

65 5000-INV-PP 5000-INV-FN-PP Foreign National Borrowers without Qualifying U.S. Credit (Including borrowers without a valid Social Security Number and borrowers with or without an Individual Tax Identification Number) must provide the following: An International Credit Report and three (3) credit reference letters from verified financial institutions in the country of origin. In lieu of credit reference letters, a full credit report from the borrower s country of origin from a reputable credit service such as Experian, Trans Union and Equifax, can be provided with evidence of three (3) active and open tradelines with a two year history. No derogatory credit history is permitted. Foreign National Credit Credit Reference Letters: Must be from an internationally known financial institutions. Each letter of reference must state the type and length of the relationship, how the account is held, payment amount, outstanding balance and status of account including a minimum 12 month payment history. A single reference source may provide verification of multiple accounts. Individual account detail must be provided. The letter must mention the borrower by name. Name, title & contact information of the person signing the letter must be included. Currency must be converted to U.S. Dollars and signed and dated by certified translator. All documents must be translated into English. For Refinances, existing loan must be with a US financial institution All Foreign National borrowers are required to complete an ACH Form from a U.S. Bank for auto withdrawal of mortgage. Gift Funds No gift funds of any kind (cash or equity). Ineligible Borrowers Irrevocable Trusts; Land Trusts; First Time Home Buyers; Borrowers with diplomatic immunity or otherwise excluded from U.S. jurisdiction Late Payments Rolling late payments are not permitted. Each occurrence of a contractual delinquency is considered individually for loan eligibility. Recent late payments on all consumer debt may not exceed the following: Non-mortgage history may not exceed 1X60 over prior 12 months Revised Page 8 of 12

66 5000-INV-PP 5000-INV-FN-PP Loan Purpose Borrower is financing the properties solely for commercial purposes and is required to sign a Certification of Business Purpose/Non-Owner Occupied disclosure at closing attesting that the subject property is not owner occupied and is owned solely for commercial investment purposes. Additionally, the borrower is required to execute a business purpose and occupancy affidavit at loan application acknowledging that the loan is being obtained for a business purpose only and the subject property is not to be occupied. Minimum Loan Size $150,000 Mortgage and Rental Payment Verification Non-Permanent Resident Alien Occupancy Permanent Resident Alien Evidence of current home ownership required. Primary housing history may not exceed 1X30 over prior 12 months. Investment property mortgage history may not exceed 1X60 over prior 12 months (purchase only with a 5% LTV reduction). All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify the account is current. An alien admitted to the United States as a lawful temporary resident. Lawful non-permanent residents are legally accorded the privilege of residing temporarily in the United States. Legal Status Documentation o Visa types allowed: E-1, E-2, E-3, EB-5, G-1 through G-5, H-1, L-1, NATO, O-1, R-1, TN NAFTA o Visa must be current and may not expire for a minimum of 2 years following the close date Non-Owner Occupied Only An alien admitted to the United States as a lawful permanent resident. Lawful permanent residents are legally accorded the privilege of residing permanently in the United States. Acceptable evidence of permanent residency include the following: o Alien Registration Receipt Card I-151 (referred to as a green card). o Alien Registration Receipt Card I-551 (Resident Alien Card) that does not have an expiration date on the back (also known as a green card). o Alien Registration Receipt Card I-551 (Conditional Resident Alien Card) that has an expiration date on the back, and is accompanied by a copy of the filed INS Form I-751 (petition to remove conditions). o Non-expired foreign passport that contains a non-expired stamp (valid for a minimum of three years) reading Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until [mm-dd-yy]. Employment Authorized. Revised Page 9 of 12

67 5000-INV-PP 5000-INV-FN-PP Personal Guarantee Personal Guarantee required for loans to LLC's or Corporations Points and Fees Maximum of 5% on investment transactions. Prepayment Penalty Investment Properties may have a prepayment penalty. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Property Types Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details) Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Co-ops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Revised Page 10 of 12

68 5000-INV-PP 5000-INV-FN-PP Property Types All Condos Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Property Types Non Warrantable Condos Maximum LTV/CLTV: 7 5% Maximum Loan Amount: $1,500,000 Require Project Approval by GreenBox Loans, Inc. Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units. Property Ownership / GB Exposure There is no limit on the number of financed properties a borrower can own. GreenBox Loans, Inc. will not finance more than an aggregate of $2,000,000 or a more than 10 Properties at any one time to the same borrower/guarantor. Exceptions to this policy will be reviewed on a case-by-case basis. Ratios There is no Debt-to-Income (DTI) requirement Refinance Cash Out For properties owned 12-months or longer, the LTV/CLV is based upon the appraised value. If Cash-Out Seasoning is 7-11 months, the transaction property value is limited to the lower of the current appraised value or the property s purchase price + documented improvements If Cash-Out Seasoning is 6 months or less, the transaction property value is limited to delayed financing or inherited properties. Reserves There is no reserve requirement Revised Page 11 of 12

69 5000-INV-PP 5000-INV-FN-PP May not exceed 3% All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Seller Concessions Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Subordinate Financing Not Allowed Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 12 of 12

70 PRODUCT DESCRIPTION INVESTOR PROPERTY $3,000,000 MAX LOAN AMOUNT NON-OWNER OCCUPIED QUALIFY ON RENTAL SURVEY INVESTMENT 5000-INV-DTI-PP 5000-INV-DTI-FN Property Credit Score Purchase / R/T LTV/CLTV* Cash Out LTV/CLTV Reserves Maximum Loan Amount DTI 80% 6 Months 75% 75% None $1,000, % 70% 6 Months 70% 65% None $1,500,000 SFR/PUD 70% 65% 6 Months $3,000,000 95% 70% 65% None $1,000, % 65% 6 Months 60% None $1,500, % 60% 12 Months $500,000 70% Unleased Property (Refi only): Max LTV 65% for loan balances <=$1mm; Max LTV 60% for loan balances > $1mm 2-4 Units, Condos 70% Max LTV; and Foreign Nationals Max LTV is 75% First Time Investors 65% Max LTV Revised Page 1 of 14

71 5000-INV-DTI-PP 5000-INV-DTI-FN Adjustable Rate Details Age of Documents Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option - Available for LTVs <= 80%. Interest Only period is 120 months Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C4, C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 14

72 5000-INV-DTI-PP 5000-INV-DTI-FN Down payment funds should be documented for 30 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation included in the loan file. In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other liquid assets. Assets Business funds may be used for down payment, closing costs and for the purposes of calculating reserves. GreenBox will perform a business cash flow analysis to confirm that the withdrawal of funds for this transaction will not have a negative impact on the business. GreenBox will utilize FNMA Form 1084 or a similar cash flow analysis form to show the business can support the withdrawal of the funds Account Statements should cover most recent 30-dayperiod Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves; Vested Retirement Account funds 60% may be considered for closing and/or reserves; Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Assets being used for dividend and interest income may not be used for reserves requirements. Large deposits need to be sourced, but no seasoning requirements apply. Borrower Eligibility Eligible Borrowers: U.S. citizens Permanent resident aliens Non-Permanent Resident Alien Foreign National A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. POA is not available for Foreign Nationals Ineligible Borrowers - Any form of Trust Cash Out Amount Limit (% of Prop Value) NOO 5000-INV-DTI SFR 65% Condo / 2-4 Units 60% Revised Page 3 of 14

73 Collections And Charge-Offs 5000-INV-DTI-PP 5000-INV-DTI-FN Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $10,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following: o Payments for open charge-offs or collections are included in the DTI (Subject to program DTI restrictions). Payment calculated at 5% of balance of remaining unpaid collections and charge-offs. o Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserve requirements. Standard: 3 tradelines reporting for 12+ mo's or 2 tradelines reporting for 24+ mo's with activity in the last 12 mo's; Limited: N/A Credit To qualify as an acceptable tradeline, the credit line must be reflected on the borrower s credit report. The account must have activity in the past 12 months and may be open or closed. Accounts with delinquencies are allowed when the account is no more than 30-days past due at time of application. An acceptable 12- or 24-month housing history not reporting on credit may also be used as a tradeline. Credit lines on which the borrower is not obligated to make payments are not acceptable for establishing a minimum history. Examples of unacceptable tradelines include loans in a deferment period, collection or charged-off accounts, accounts discharged through bankruptcy, and authorized user accounts. Student loans can be counted as tradelines as long as they are in repayment and are not deferred. Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing. Matrix 5000-INV-DTI Minimum FICO 620 Housing 0x30x12 BK (Chap 13 Discharge) 12 Months BK (Other) 36 Mo Foreclosure 36 Mo Short Sale / DIL 24 Mo Credit Scores The applicable credit score is the middle of three scores provided for any borrower. If only two credit score are obtained, the lesser of two will be used. When there are multiple borrowers/guarantors, the lowest applicable score from the group of borrowers/guarantors is the representative credit score for qualifying. Revised Page 4 of 14

74 Disclosure of Employment and Income 5000-INV-DTI-PP 5000-INV-DTI-FN The borrower must disclose their employment information on the application (Form 1003). However, only rental income for the subject property is used in qualifying. Therefore income derived from regular employment, retirement or other investments should not be disclosed. The application should otherwise be completed including the Schedule of Real Estate Owned listing all properties financed under this program. DTI Ratio for Property For this product, the debt-to-income ratio is only calculated on the subject property. The Debt-to-Income Ratio is calculated for the subject property as follows: PITIA Monthly Rental Income. The Monthly Payment (PITIA) is equal to the (a) the monthly principal and interest due on the loan and (b) monthly real estate taxes, insurance and HOA dues (if applicable) for the property collateralizing the loan. Monthly Rental Income is the lower of gross rents indicated on the lease agreement(s) and Form If the lease(s) agreement reflects higher rents then the 1007, the lease(s) amount may be used for gross rents if two months proof of receipt is verified. For purchase transactions without an existing lease and Unleased Property refinance transactions the gross rents indicated on the 1007 may be used without the lease agreement(s) Unleased Property (Refi only): Max LTV 65% for loan balances <=$1mm; Max LTV 60% for loan balances >$1mm Escrow Holdbacks Escrow holdbacks are not permitted. Escrow Waivers Impounds are required. First Time Investor / Experienced Investor First Time Investor - Anyone who has not owned an investor property for at least 12 months. An Experienced Investor - A borrower who has owned two (2) or more properties, residential or commercial, within the most recent twelve (12) months, with one (1) having documented rental income by a signed lease agreement or twelve (12) months cancelled checks. Borrower must own a primary residence Revised Page 5 of 14

75 5000-INV-DTI-PP 5000-INV-DTI-FN Max LTV 75% Assets Held in U.S. Bank Verification of assets is required for purchase or refinance transactions to evidence sufficient funds to close. Seasoning of funds and reserves are not required. Foreign National Assets Held in Foreign Accounts Assets held in foreign accounts may be used as a source of funds to close. These funds must be transferred to a U.S. domiciled account in the borrower s name at least ten (10) days prior to closing. Documenting Assets Held in Foreign Accounts: o Assets must be verified in U.S. Dollar equivalency at the current exchange rate via either or the Wall Street Journal conversion table. o A copy of the two (2) most recent statements of that account. If the funds are not seasoned a minimum of sixty (60) days, a letter of explanation is required along with the information to comprise a sixty (60) day chain of funds. UK (United Kingdom) Borrowers Only: Use of specific foreign exchange services such as MoneyCorp Halo Financial Currencies Direct or TransferWise in order to transfer funds directly to the closing agent directly. Borrower must have and maintain a US Bank Account regardless of transferring closing funds directly to the closing agent. Revised Page 6 of 14

76 Foreign National - Borrower Eligibility 5000-INV-DTI-PP 5000-INV-DTI-FN FOREIGN NATIONAL PROGRAM SPECIFIC DOCUMENTATION REQUIREMENTS Visa types allowed: B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P-1, P-2, TN NAFTA, Laser Visa The following are required as evidence the borrower is in the U.S legally o Copy of the borrowers valid and unexpired passport (including photograph) o Copy of the borrower s valid and unexpired visa (including photograph) OR an I-797 form with valid extension dates and I-94. Borrowers from Countries participating in the State Department s Visa Waiver Program (VWP) or Citizens of Canada and Bermuda are not required to provide a valid visa. Participating countries can be found at or If a non-u.s. citizen is borrowing with a U.S. citizen, Foreign National documentation requirements still apply. All parties involved on transaction must be screened through exclusionary lists, must be cleared through OFAC's SND list, search of Specially Designated Nationals & Blocked Persons List may be completed via US Department of Treasury: Borrowers from OFAC sanctioned countries are ineligible Individuals with Diplomatic immunity not eligible All borrowers must complete IRS form W-8BEN If vesting in LLC, LLC must be Domestic Domiciled. Foreign National - Credit Matrix Credit Score Trades Mortgage History Bankruptcy/Foreclosure Judgment/Tax Lien/Collections/Charge-Offs Credit Matrix 620 if available; qualifying score is the middle of 3 or lower of 2 scores 3 trades minimum, all with 24 months credit history 1 x 30 last 12 months None within 2 years Must be paid. New non-medical items with a cumulative total > $5,000 in the last 24 months will exclude the borrower from this program. Revised Page 7 of 14

77 5000-INV-DTI-PP 5000-INV-DTI-FN Foreign National Borrowers without Qualifying U.S. Credit (Including borrowers without a valid Social Security Number and borrowers with or without an Individual Tax Identification Number) must provide the following: An International Credit Report and three (3) credit reference letters from verified financial institutions in the country of origin. In lieu of credit reference letters, a full credit report from the borrower s country of origin from a reputable credit service such as Experian, Trans Union and Equifax, can be provided with evidence of three (3) active and open tradelines with a two year history. No derogatory credit history is permitted. Foreign National - Credit Credit Reference Letters: Must be from an internationally known financial institutions. Each letter of reference must state the type and length of the relationship, how the account is held, payment amount, outstanding balance and status of account including a minimum 12 month payment history. A single reference source may provide verification of multiple accounts. Individual account detail must be provided. The letter must mention the borrower by name. Name, title & contact information of the person signing the letter must be included. Currency must be converted to U.S. Dollars and signed and dated by certified translator. All documents must be translated into English. For Refinances, existing loan must be with a US financial institution All Foreign National borrowers are required to complete an ACH Form from a U.S. Bank for auto withdrawal of mortgage. Gift Funds Gift funds are acceptable only if a 20% down payment has been made by the borrower from their own resources. Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt; Gift funds may not be used to meet reserve requirements. (Rental) Income Calculation Monthly Rental Income is the lower of gross rents indicated on the lease agreement(s) and Form If the lease(s) agreement reflects higher rents then the 1007, the lease(s) amount may be used for gross rents if two months proof of receipt is verified. For purchase transactions without an existing lease and Unleased Property refinance transactions the gross rents indicated on the 1007 may be used without the lease agreement(s) Revised Page 8 of 14

78 5000-INV-DTI-PP 5000-INV-DTI-FN LTV Calculation Purchases: Loan to value ratios are calculated based on the lesser of the purchase price or the appraised value of the subject property. Refinances Rate & Term: Based on the appraised value Refinance Cash-Out: For Cash-out seasoning greater than 12-months the appraised value can be used to determine the LTV/CLTV. If Cash-Out Seasoning is between (6) to (12) months, the appraised value may be utilized to determine property value with the following restrictions: o The loan amount may not exceed 100% of the acquisition cost plus documented improvements o The property may not be Unleased as defined by the guidelines If Cash-Out Seasoning is between (3) to (6) months, the appraised value may be utilized to determine property value with the following restrictions: o The loan amount may not exceed 90% of the acquisition cost plus documented improvements o The property may not be Unleased as defined by the guidelines If Cash-Out Seasoning <= three months, Not Available unless the borrower acquired the property through an inheritance or was legally awarded the property through divorce, separation, or dissolution of a domestic partnership. Minimum Loan Size $150,000 Multiple Properties Non-Arms Length Transactions Maximum of ten (10) properties financed with any GB program No limit on the number of financed properties the borrower may own. Non-arms length transactions involve a personal relationship or business relationship (outside the subject transaction) between the borrower and any interested party to the transaction. These transactions must be fully disclosed as non-arms length. Examples of non-arms length transactions include, but are not limited to: Family sales or transfers. Trading properties with the seller. Purchasing a property from a builder/developer who, in turn, is purchasing the borrower s existing property. Borrower is related in some manner to a party to the transaction (loan broker, real estate brokers, appraiser, etc.) Renters buying from a landlord Employer to employee sales or transfers. Generally, non-arms length transactions are not eligible. The following may be considered with appropriate documentation: Family sales or transfers. Borrower is an employee of the originating lender and the lender has an established employee loan program. Renter buying from landlord, with at least 24 months cancelled checks evidencing satisfactory pay history. Sellers or Buyers representing themselves as agent in the real estate transaction. Revised Page 9 of 14

79 5000-INV-DTI-PP 5000-INV-DTI-FN Non-Permanent Resident Alien An alien admitted to the United States as a lawful temporary resident. Lawful non-permanent residents are legally accorded the privilege of residing temporarily in the United States. Legal Status Documentation o Visa types allowed: E-1, E-2, E-3, EB-5, G-1 through G-5, H-1, L-1, NATO, O-1, R-1, TN NAFTA o Visa must be current and may not expire for a minimum of 3 2 years following the close date Maximum LTV/CLTV: 75% Must meet credit section of this guide Occupancy Permanent Resident Alien Eligible property types include. Non-owner occupied (investment) properties with 1 to 4 units. Ineligible property types include: Primary residences.& Second home residences An alien admitted to the United States as a lawful permanent resident. Lawful permanent residents are legally accorded the privilege of residing permanently in the United States. Acceptable evidence of permanent residency include the following: o Alien Registration Receipt Card I-151 (referred to as a green card). o Alien Registration Receipt Card I-551 (Resident Alien Card) that does not have an expiration date on the back (also known as a green card). o Alien Registration Receipt Card I-551 (Conditional Resident Alien Card) that has an expiration date on the back, and is accompanied by a copy of the filed INS Form I-751 (petition to remove conditions). o Non-expired foreign passport that contains a non-expired stamp (valid for a minimum of three years) reading Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until [mm-dd-yy]. Employment Authorized. Points and Fees Total points and fees must be less than 5% Prepayment Penalty Investment Properties may have a prepayment penalty. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. Revised Page 10 of 14

80 5000-INV-DTI-PP 5000-INV-DTI-FN For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping Property Ownership / GB Exposure Property Types Property Types All Condos The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) There is no limit on the number of financed properties a borrower can own. Greenbox Loans, Inc. will not finance more than an aggregate of $2,000,000 or a more than 10 Properties at any one time to the same borrower/guarantor. Exceptions to this policy will be reviewed on a caseby-case basis. Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details) Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Co-ops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Fannie Mae eligible projects and Non-Warrantable projects allowed Greenbox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval Maximum LTV/CLTV: 80% Revised Page 11 of 14

81 5000-INV-DTI-PP 5000-INV-DTI-FN Property Types Non Warrantable Condos Qualifying Rate Rent Loss Insurance REO Maximum LTV/CLTV: 80% Maximum Loan Amount: $1,500,000 Require Project Approval by Greenbox Loans, Inc. Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units. Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (360 Months) at the time of recast after the interest only period has expired. The interest-only option is a 10-year initial interest-only period followed by 30-year full amortization. Rent loss insurance with coverage equal to at least six (6) months of gross monthly rent must be obtained and maintained on each investment property financed under this program. All other insurance per Fannie Mae guidelines. All properties financed under this program, or in the process of being financed under this program, must be listed on the 1003 Schedule of Real Estate Owned. Reserves See Program matrix Revised Page 12 of 14

82 5000-INV-DTI-PP 5000-INV-DTI-FN May not exceed 3% All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Seller Concessions Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Tax Liens All income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the following are meet; The file must contain a copy of the repayment agreement A minimum of 6-payments has been made under the plan with all payments made on time The balance of the lien must be included when determining the maximum CLTV for the program Refinance transactions require a subordination agreement from the taxing authority Revised Page 13 of 14

83 5000-INV-DTI-PP 5000-INV-DTI-FN Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 14 of 14

84 PRODUCT DESCRIPTION FULL DOCUMENTATION 90% LTV PURCHASE / RATE & TERM REFINANCES, LOAN AMOUNTS UP TO $2,500,000 Primary Residence & Second Home Purchase & R/T 5000-ELITE-FD Credit Score LTV/CLTV Maximum Loan Amount % $1,500,000 80% $2,000,000 75% $2,500,000 80% $1,500,000 75% $2,000, % $1,000,000 Primary Residence & Second Home Cash Out Refinance Credit Score LTV/CLTV Maximum Loan Amount % $1,500,000 70% $2,000,000 70% $1,500, % $2,000, % $1,000,000 Non-Owner Occupied Purchase, R/T & Cash Out Refinance Credit Score LTV/CLTV Maximum Loan Amount % $1,500, % $1,000,000 Other Restrictions Second Home Max LTV 70% 2-4 Units Max LTV 70% Interest Only Max LTV 80% Condos Max LTV 80% Revised Page 1 of 12

85 Adjustable Rate Details Age of Documents Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option - Available for LTVs <= 80%. Interest Only period is 120 months Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing 5000-ELITE-FD Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 12

86 5000-ELITE-FD Down payment funds should be documented for 60 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation included in the loan file. In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other liquid assets. Assets Account Statements should cover most recent 60-dayperiod Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves; Vested Retirement Account funds 60% may be considered for closing and/or reserves; Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Assets being used for dividend and interest income may not be used for reserves requirements. When bank statements are used, large deposits must be evaluated. Large deposits are defined as any single deposit that represents more than 75% of the monthly average deposit balance. Large deposits need to be sourced. Business Funds / Sole Proprietor Business funds may be used for down payment, closing costs and for the purposes of calculating reserves. GreenBox will perform a business cash flow analysis to confirm that the withdrawal of funds for this transaction will not have a negative impact on the business. GreenBox will utilize FNMA Form 1084 or a similar cash flow analysis form to show the business can support the withdrawal of the funds. AUS If owner-occupied or second home, the file must also include one of the following as evidence the borrower is not eligible for financing through a GSE or Government loan program an AUS Findings with a Refer or Approve/Ineligible response Bankruptcy All Bankruptcies: Must be discharged for a minimum of 60 months from closing date. Seasoning is measured from the month and year of discharge. Multiple bankruptcy filings ineligible Revised Page 3 of 12

87 5000-ELITE-FD Borrowers Eligibility Eligible: U.S. Citizen Permanent Resident Alien: is a non-u.s. citizen authorized to live and work in the U.S. on a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be documented and meet one of the following criteria: I-151 Permanent Resident Card (Green Card) that does not have an expiration date; I-551 Permanent Resident Card (Green Card) issued for 10 years that has not expired; I-551 Conditional Permanent Resident Card (Green Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized. A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. In-Eligible: Foreign national Co-Signers Guarantors Any form of Trust Cash Out Amount Limit (% of Prop Value) Owner Occupied Loan Amount Loan Amount <= $1m > $1m Second Home & NOO SFR 75% 70% SFR 65% Condo / 2-4 Units 70% 65% Condo / 2-4 Units 60% Collections And Charge-Offs Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $5,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following: o Payments for open charge-offs or collections are included in the DTI (Subject to program DTI restrictions). Payment calculated at 5% of balance of remaining unpaid collections and charge-offs. o Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserve requirements. Compliance Fully documented ability-to-repay No section 32 or state high cost Compliance with all applicable Federal and State regulations Revised Page 4 of 12

88 5000-ELITE-FD Standard: 3 tradelines reporting for 12+ mo's or 2 tradelines reporting for 24+ mo's with activity in the last 12 mo's; Limited: Not Available Credit The primary wage-earner must meet the minimum tradeline requirements listed above. To qualify as an acceptable tradeline, the credit line must be reflected on the borrower s credit report. The account must have activity in the past 12 months and may be open or closed. Accounts with delinquencies are allowed when the account is no more than 30-days past due at time of application. An acceptable 12- or 24-month housing history not reporting on credit may also be used as a tradeline. Credit lines on which the borrower is not obligated to make payments are not acceptable for establishing a minimum history. Examples of unacceptable tradelines include loans in a deferment period, collection or charged-off accounts, accounts discharged through bankruptcy, and authorized user accounts. Student loans can be counted as tradelines as long as they are in repayment and are not deferred. Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing. Tradelines: Borrowers qualifying with Standard Tradelines are eligible for all occupancy types and programs. Matrix 5000-ELITE-FD Minimum FICO 680 Housing 0x30x12 BK (Chap 13 Discharge) 60 Mo BK (Other) 60 Mo Foreclosure 60 Mo Short Sale / DIL / Loan Mod. 60 Mo Credit Scores The primary wage-earner score is used as the Representative Credit Score, if no primary wage earner, use the lowest representative score of all the borrowers. Additional borrowers on the loan must have at least one valid score of 680 or greater. To determine the Representative Credit Score for the primary wage-earner, select the middle score when 3 agency scores are provided and the lower score when only 2 agency scores are provided. Eligible States See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase & R/T Only, No 50(a)(6)) Escrow Waiver Impounds are required. Revised Page 5 of 12

89 5000-ELITE-FD Gift Funds Unless otherwise specified, Gift Funds are acceptable if ONE of the following applies 1. A 5% down payment has been made by the borrower from their own resources % Gift Funds are allowed, with a maximum LTV of 75%.Borrower(s) must meet both reserve and residual income requirements. Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt; Gift funds may not be used to meet reserve requirements. Gift of Equity allowed for Primary Residence only. Must meet all other guidelines for Gift Funds. When tax returns are required, the most recent two years should be provided. The definition of most recent is the last return scheduled to have been filed with the IRS. Any Borrower that applied for a tax return extension must provide a copy of the extension in the credit file along with the prior two years of tax returns. Income - Documentation Wage or Salaried Borrowers: o A completed Request for Verification of Employment (Form 1005 or Form 1005(S)), or the borrower s recent paystub (reflecting 30 days of pay and YTD earnings) and IRS W-2 forms covering the most recent two-year period o A verbal VOE from each employer within 10-days of the note date o A completed, signed, and dated IRS Form 4506-T is required for each borrower. The form should be executed and the transcripts for the most recent two-year period included in the credit file. If tax returns included in the credit file, the transcripts and returns should be compared. Any discrepancies between the two documents should be explained and if necessary additional documentation obtained to satisfactorily address. o Tax returns are not required if the only income is wages or salary. If any business income present on the transcripts or the borrower owns multiple investment properties, tax returns must be provided. Personal tax returns must be complete with all schedules (W-2 forms, 1099 forms, K-1, and any other forms) and be signed and dated Self Employed Borrowers: o Most recent two years of tax returns, personal and business if applicable (including all schedules), signed and dated by each borrower. o A YTD P&L and balance sheet (Borrower prepared acceptable, borrower required to sign both the P&L and Balance Sheet), o A complete, signed, and dated IRS Form 4506-T is required for each borrower and any business entity filing a separate return, the forms should be executed and the transcripts included in the credit file. The tax returns and transcripts should be compared; any discrepancies should be explained and if necessary additional documentation obtained to satisfactorily address. o Verify the existence of the business within 30-days of the note date and ensure the business is active with the following; a letter from either the businesses tax professional certifying 2 years of self-employment in same business, or regulatory agency or licensing Bureau; along with either a phone listing and/or business address using directory assistance or internet search o Underwriter must consider the financial strength of a self-employed borrower's business Revised Page 6 of 12

90 Income Documentation of other Sources 5000-ELITE-FD The following sources of income must be verified using Fannie Mae requirements. Bonus* Commission* Overtime* Part-time/Variable (uninterrupted and stable for past two years*) Retirement Social security Investment and Trust Military or government assistance Child support and alimony Rental Income: should be documented through Schedule E of the borrower s tax returns. If property has not previously been rented, then income will be calculated based on the lower of the lease agreement or 1007 times 75% for single unit property or 70% for 2-4-unit property. * A period of two years must be used in calculating the average overtime, bonus, and commission income. If either type of income shows a continual decline, written justification on the income worksheet must be provided, or income should not be used. For Part-time employment, a minimum two (2) year history is required however a shorter period, of no less than twelve (12) months, may be considered case-by-case if positive factors are present to offset shorter history. Listing Seasoning For cash out refinances, properties previously listed for sale should be seasoned at least 12 months from the listing contract expiration date. Minimum Loan Amount $150,000 Mortgage And Rental Payment Verification Mortgage and rental payments not reflected on the original credit report must be documented via an institutional Verification of Rent or Verification of Mortgage (VOR/VOM). A combined total of all late mortgage and rental payments in the past 12 months must be used to determine the housing history rating. If the borrower is making payments to an individual or interested party, 12 months of cancelled checks or bank statements must be obtained. A VOR/VOM is not required but may be requested for clarification. All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify the account is current. Revised Page 7 of 12

91 5000-ELITE-FD Non-Permanent Resident Alien An alien admitted to the United States as a lawful temporary resident. Lawful non-permanent residents are legally accorded the privilege of residing temporarily in the United States. Legal Status Documentation o Visa types allowed: E-1, E-2, E-3, EB-5, G-1 through G-5, H-1, L-1, NATO, O-1, R-1, TN NAFTA o Visa must be current and may not expire for a minimum of 3 years following the close date. o When applicable, valid employment authorization doc (EAD) required for US employment if not sponsored by current employer. Guideline restrictions: o Maximum LTV/CLTV: 75% o Full Documentation o Non-Occupant Co-Borrowers not allowed o Gift Funds not allowed o US credit requirements detailed under the CREDIT section of this guide should be utilized. If adequate depth of US credit cannot be established the Foreign National Qualifying Foreign Credit (5000-FN) may be used. When Foreign Credit used, the restrictions under the Foreign Credit Section apply including the Max LTV of 70%. Non-Occupant Co-Borrowers Allowed for Full Doc only, co-borrowers must be immediate family members. Occupying borrower(s) must have a DTI ratio of 50% or less. Excluding income/debts of non-occupant borrower. Eligible transactions limited to purchase only. Occupancy Payment Shock Owner Occupied, Second Homes and Investment Primary Residence Only Payment shock should not exceed 300% of the borrower s current housing payment unless DTI is less than or equal to 36%. If payment shock exceeds this limit the underwriter must provide justification of borrower s ability to handle the increased payment. If the loan purpose is debt consolidation, a payment shock calculation is not required. Payment Shock = (Proposed Housing Payment /Present Housing Payment) * 100 Payment shock is not considered for borrowers who do not have a current housing payment, or own a home free and clear Points and Fees Total points and fees must be less than 5% Investment Properties may have a prepayment penalty. Prepayment penalties on primary residence and second home transactions are prohibited. Prepayment Penalty Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. Revised Page 8 of 12

92 5000-ELITE-FD For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable Only) Property Types Property Types All Condos Property Types Non Warrantable Condos Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Condo Non- Warrantable Co-ops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Not Available Qualifying Rate Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment Revised Page 9 of 12

93 Ratios 5000-ELITE-FD Qualifying Rate and Ratios ARMs - Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the note rate Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (240 Months) at the time of recast after the interest only period has expired. DTI Ratio 43%. Refinance Cash Out A Cash-Out Refinance transaction allows the borrower to pay off the existing mortgage by obtaining new financing secured by the same property or allows the property owner obtain a mortgage on a property that is currently owned free and clear. The borrower can receive funds at closing as long as they do not exceed the program requirements. To be eligible for a Cash-Out Refinance the borrower must have owned the property for a minimum of six months prior to the application date. Properties listed for sale within the last 12 months are ineligible for cash out. If the property is owned less than 12 months but greater than 6 months at the time of application, the LTV/CLTV will be based on the lesser of the original purchase price plus documented improvements, or current appraised value. The prior HUD-1 will be required for proof of purchase price. Residual Income Calculation not required. Revised Page 10 of 12

94 5000-ELITE-FD Occupancy Maximum Loan Amount Reserves $250,000 3 Months $500,000 6 months O/O $1,000,000 9 Months $2,000, Months $2,500, Months O/O Debt Consolidation $2,000,000 2 Months Reserves Occupancy Maximum Loan Amount Reserves Second Home / NOO $2,000, Months Second Home Debt Consolidation $2,000,000 2 Months Cash-out permitted to meet reserve requirements if loan-to-value is 5% below the matrix maximum LTV/CLTV O/O, 2 nd Home: LTV equal to or greater than 80%: max 4% O/O, 2 nd Home: LTV less than 80%: max 6% NOO: LTV equal to or less than 75%: Max is 3% NOO: LTV greater than 75%: Max is 2% Seller Concessions All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Spousal Accounts Accounts held solely in the name of a non-borrowing spouse may be used for down payment and closing costs only and are subject to the seasoning requirements. Accounts held solely in the name of a non-borrowing spouse may not be used to meet reserve requirements. Revised Page 11 of 12

95 5000-ELITE-FD Subordinate Financing Tax Liens Not Allowed All income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the following are meet; The file must contain a copy of the repayment agreement A minimum of 6-payments has been made under the plan with all payments made on time The balance of the lien must be included when determining the maximum CLTV for the program Refinance transactions require a subordination agreement from the taxing authority Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 12 of 12

96 5000-NP PRODUCT DESCRIPTION NON-PRIME FULL DOC 24 Months From Housing Event 24 Months From Bankruptcy $3,000,000 Max Loan Max LTV/CLTV Additional Program Requirements 12 month mtg. history FICO Purchase Rate/Term Cash Out Program LTV FICO Reserves %* 95%* 85% Loan Amount <= $1,000,000 2 months 0 x % 90% 85% Loan Amount > $1,000, months % 90% 80% Loan Amount > $1,500,000 5% reduction/max LTV 85% - 6 months % 90% 80% Loan Amount > $2,000,000 Max LTV 80% 12 months 1 x 30 (no rolling lates) % 85% 80% First Time Home Buyers minimum 6 months % 80% 80% Second Homes Max 80% 600 minimum 6 months Max 80%; Loan Amount > $2 million Max Non-Owner Occupied LTV is 75% & 680 FICO 6 months Condos & Multi-Units Max 85% % 85% 80% Limited tradelines Qualify at 600 FICO maximum 6 months 0 x 60 * LTVs % Max DTI 43%; O/O Only; Loan Amount > Conforming & High Balance Agency; 48 Mos from Housing Event 9 months % 80% 75% Interest Only Max 85% - - Revised Page 1 of 13

97 5000-NP Adjustable Rate Details Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option - Available for LTVs <= 85%. Interest Only period is 120 months Age of Documents Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 13

98 5000-NP Down payment funds should be documented for 60 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation included in the loan file. In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other liquid assets. Assets Account Statements should cover most recent 60-dayperiod Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves; Vested Retirement Account funds 60% may be considered for closing and/or reserves; Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Assets being used for dividend and interest income may not be used for reserves requirements. When bank statements are used, large deposits must be evaluated. Large deposits are defined as any single deposit that represents more than 75% of the monthly average deposit balance. Large deposits need to be sourced. Business Funds / Sole Proprietor Business funds may be used for down payment, closing costs and for the purposes of calculating reserves. GreenBox will perform a business cash flow analysis to confirm that the withdrawal of funds for this transaction will not have a negative impact on the business. GreenBox will utilize FNMA Form 1084 or a similar cash flow analysis form to show the business can support the withdrawal of the funds. AUS Bankruptcy If owner-occupied or second home, the file must also include one of the following as evidence the borrower is not eligible for financing through a GSE or Government loan program an AUS Findings with a Refer or Approve/Ineligible response Chapter 7 and 11: Chapter 7 and Chapter 11 bankruptcies must be discharged for a minimum of 24 months from closing date. Seasoning is measured from the month and year of discharge. Chapter 13: There is no seasoning requirement for Chapter 13 bankruptcies when the bankruptcy is discharged prior to closing. If the Chapter 13 bankruptcy was dismissed, 12-months seasoning is required from the date of the dismissal. A Chapter 13 bankruptcy may remain open after loan closing when all of the following requirements are met: A minimum 12-month repayment period in the bankruptcy has elapsed. Bankruptcy plan payments for the last 12 months have been made on time. The borrower has received written permission from bankruptcy court to enter into the mortgage transaction. Full bankruptcy papers may be required. A cash-out refinance to pay off the remaining balance of a Chapter 13 bankruptcy is allowed. In addition to meeting the requirements listed above, the transaction must provide an overall reduction in monthly obligations for the borrower. Revised Page 3 of 13

99 5000-NP Borrowers Eligibility Eligible: U.S. Citizen Permanent Resident Alien: is a non-u.s. citizen authorized to live and work in the U.S. on a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be documented and meet one of the following criteria: I-151 Permanent Resident Card (Green Card) that does not have an expiration date; I-551 Permanent Resident Card (Green Card) issued for 10 years that has not expired; I-551 Conditional Permanent Resident Card (Green Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized. A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. In-Eligible: Foreign national Co-Signers Guarantors Any form of Trust Cash Out Amount Limit (% of Prop Value) Owner Occupied Loan Amount Loan Amount <= $1m > $1m Second Home & NOO SFR 75% 70% SFR 65% Condo / 2-4 Units 70% 65% Condo / 2-4 Units 60% Collections And Charge-Offs Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $10,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following: o Payments for open charge-offs or collections are included in the DTI (Subject to program DTI restrictions). Payment calculated at 5% of balance of remaining unpaid collections and charge-offs. o Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserve requirements. Revised Page 4 of 13

100 5000-NP Compliance Fully documented ability-to-repay No section 32 or state high cost Compliance with all applicable Federal and State regulations Standard: 3 tradelines reporting for 12+ mo's or 2 tradelines reporting for 24+ mo's with activity in the last 12 mo's; Limited: No minimum tradeline requirements Credit The primary wage-earner must meet the minimum tradeline requirements listed above. To qualify as an acceptable tradeline, the credit line must be reflected on the borrower s credit report. The account must have activity in the past 12 months and may be open or closed. Accounts with delinquencies are allowed when the account is no more than 30-days past due at time of application. An acceptable 12- or 24-month housing history not reporting on credit may also be used as a tradeline. Credit lines on which the borrower is not obligated to make payments are not acceptable for establishing a minimum history. Examples of unacceptable tradelines include loans in a deferment period, collection or charged-off accounts, accounts discharged through bankruptcy, and authorized user accounts. Student loans can be counted as tradelines as long as they are in repayment and are not deferred. Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing. Tradelines: Borrowers qualifying with Standard Tradelines are eligible for all occupancy types and programs. Limited Tradelines: The following requirements apply when qualifying with Limited Tradelines: Primary residence 10% minimum borrower contribution Minimum 6 months reserves after closing Full documentation of income When qualifying with Limited Tradelines, the lower of either the Representative Loan Score or a 600 score is used to qualify the borrower on the Matrix, The loan may be priced, however, using the actual Representative Loan Score. Matrix 5000-NP Minimum FICO 600 Housing 0x60x12 BK (Chap 13 Discharge) Settled* BK (Other) 24 Mo* Foreclosure 24 Mo* Short Sale / DIL / Loan Mod. 24 Mo* *LTV >90% 48 months from Housing event Revised Page 5 of 13

101 5000-NP Credit Scores The primary wage-earner score is used as the Representative Credit Score, if no primary wage earner, use the lowest representative score of all the borrowers. Additional borrowers on the loan must have at least one valid score of 500 or greater. To determine the Representative Credit Score for the primary wage-earner, select the middle score when 3 agency scores are provided and the lower score when only 2 agency scores are provided. Eligible States See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase & R/T Only, No 50(a)(6)) Escrow Waiver Impounds are required. Gift Funds Unless otherwise specified, Gift Funds are acceptable if ONE of the following applies 1. A 5% down payment has been made by the borrower from their own resources % Gift Funds are allowed, with a maximum LTV of 75%.Borrower(s) must meet both reserve and residual income requirements. Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt; Gift funds may not be used to meet reserve requirements. Gift of Equity allowed for Primary Residence only. Must meet all other guidelines for Gift Funds. Revised Page 6 of 13

102 5000-NP When tax returns are required, the most recent two years should be provided. The definition of most recent is the last return scheduled to have been filed with the IRS. Any Borrower that applied for a tax return extension must provide a copy of the extension in the credit file along with the prior two years of tax returns. Income - Documentation Wage or Salaried Borrowers: o A completed Request for Verification of Employment (Form 1005 or Form 1005(S)), or the borrower s recent paystub (reflecting 30 days of pay and YTD earnings) and IRS W-2 forms covering the most recent two-year period o A verbal VOE from each employer within 10-days of the note date o A completed, signed, and dated IRS Form 4506-T is required for each borrower. The form should be executed and the transcripts for the most recent two-year period included in the credit file. If tax returns included in the credit file, the transcripts and returns should be compared. Any discrepancies between the two documents should be explained and if necessary additional documentation obtained to satisfactorily address. o Tax returns are not required if the only income is wages or salary. If any business income present on the transcripts or the borrower owns multiple investment properties, tax returns must be provided. Personal tax returns must be complete with all schedules (W-2 forms, 1099 forms, K-1, and any other forms) and be signed and dated Self Employed Borrowers: o Most recent two years of tax returns, personal and business if applicable (including all schedules), signed and dated by each borrower. o A YTD P&L and balance sheet (Borrower prepared acceptable, borrower required to sign both the P&L and Balance Sheet), o A complete, signed, and dated IRS Form 4506-T is required for each borrower and any business entity filing a separate return, the forms should be executed and the transcripts included in the credit file. The tax returns and transcripts should be compared; any discrepancies should be explained and if necessary additional documentation obtained to satisfactorily address. o Verify the existence of the business within 30-days of the note date and ensure the business is active with the following; a letter from either the businesses tax professional certifying 2 years of self-employment in same business, or regulatory agency or licensing Bureau; along with either a phone listing and/or business address using directory assistance or internet search o Underwriter must consider the financial strength of a self-employed borrower's business Revised Page 7 of 13

103 5000-NP Income Documentation of other Sources The following sources of income must be verified using Fannie Mae requirements. Bonus* Commission* Overtime* Part-time/Variable (uninterrupted and stable for past two years*) Retirement Social security Investment and Trust Military or government assistance Child support and alimony Rental Income: should be documented through Schedule E of the borrower s tax returns. If property has not previously been rented, then income will be calculated based on the lower of the lease agreement or 1007 times 75% for single unit property or 70% for 2-4-unit property. * A period of two years must be used in calculating the average overtime, bonus, and commission income. If either type of income shows a continual decline, written justification on the income worksheet must be provided, or income should not be used. For Part-time employment, a minimum two (2) year history is required however a shorter period, of no less than twelve (12) months, may be considered case-by-case if positive factors are present to offset shorter history. Listing Seasoning For cash out refinances, properties previously listed for sale should be seasoned at least 6 months from the listing contract expiration date. Minimum Loan Amount $150,000 Mortgage And Rental Payment Verification Mortgage and rental payments not reflected on the original credit report must be documented via an institutional Verification of Rent or Verification of Mortgage (VOR/VOM). A combined total of all late mortgage and rental payments in the past 12 months must be used to determine the housing history rating. If the borrower is making payments to an individual or interested party, 12 months of cancelled checks or bank statements must be obtained. A VOR/VOM is not required but may be requested for clarification. All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify the account is current. Revised Page 8 of 13

104 5000-NP Non-Permanent Resident Alien An alien admitted to the United States as a lawful temporary resident. Lawful non-permanent residents are legally accorded the privilege of residing temporarily in the United States. Legal Status Documentation o Visa types allowed: E-1, E-2, E-3, EB-5, G-1 through G-5, H-1, L-1, NATO, O-1, R-1, TN NAFTA o Visa must be current and may not expire for a minimum of 2 years following the close date. o When applicable, valid employment authorization doc (EAD) required for US employment if not sponsored by current employer. Guideline restrictions: o Maximum LTV/CLTV: 75% o Full Documentation o Non-Occupant Co-Borrowers not allowed o Gift Funds not allowed o US credit requirements detailed under the CREDIT section of this guide should be utilized. If adequate depth of US credit cannot be established the Foreign National Qualifying Foreign Credit (5000-FN) may be used. When Foreign Credit used, the restrictions under the Foreign Credit Section apply including the Max LTV of 70%. Non-Occupant Co-Borrowers Allowed for Full Doc only, co-borrowers must be immediate family members. Occupying borrower(s) must have a DTI ratio of 55% or less. Excluding income/debts of non-occupant borrower. Eligible transactions limited to purchase only. Occupancy Payment Shock Owner Occupied, Second Homes and Investment Primary Residence Only Payment shock should not exceed 300% of the borrower s current housing payment unless DTI is less than or equal to 36%. If payment shock exceeds this limit the underwriter must provide justification of borrower s ability to handle the increased payment. If the loan purpose is debt consolidation, a payment shock calculation is not required. Payment Shock = (Proposed Housing Payment /Present Housing Payment) * 100 Payment shock is not considered for borrowers who do not have a current housing payment, or own a home free and clear Points and Fees Total points and fees must be less than 5% Investment Properties may have a prepayment penalty. Prepayment penalties on primary residence and second home transactions are prohibited. Prepayment Penalty Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. Revised Page 9 of 13

105 5000-NP For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping Property Types Property Types All Condos Property Types Non Warrantable Condos The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details) Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Co-ops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Maximum LTV/CLTV: 80% Maximum Loan Amount: $1,500,000 Require Project Approval by GreenBox Loans, Inc. Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units. Revised Page 10 of 13

106 Ratios Ratio Requirements Occupancy DTI Primary 43% or 55%** Second Home Non-Owner Occupied 43% or 50%** 43% or 50%** 5000-NP ** COMPENSATING FACTORS TO EXCEED MAX RATIOS: Debt-to-income ratios up to 55% can be approved % DTI Allowed with the following restrictions: A minimum of 6 months of reserves are required LTV/CLTV may not exceed 85% % DTI Allowed with the following restrictions: minimum of 12 months of reserves are required LTV/CLTV may not exceed 80% Primary Residence Only First Time Home Buyer not permitted Minimum Residual Income $3,000 Must be a benefit to the borrower LTV % Max DTI 43% Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (360 Months) at the time of recast after the interest only period has expired. The interest-only option is a 10-year initial interest-only period followed by 30-year full amortization. Refinance Cash Out For properties owned 12-months or longer, the LTV/CLV is based upon the appraised value. If Cash-Out Seasoning is 7-11 months, the transaction property value is limited to the lower of the current appraised value or the property s purchase price + documented improvements If Cash-Out Seasoning is 6 months or less, the transaction property value is limited to delayed financing or inherited properties. Residual Income Calculation not required. Revised Page 11 of 13

107 5000-NP Reserves A minimum of 2 months reserves are required; additional reserves may be required, see matrix. Net Proceeds from cash-out transactions can be used to meet the reserve requirement. Gift funds may not be considered. Reserve requirements are waived for Rate-And-Term Refinance transactions when the transaction results in a reduction to the monthly principal and interest payment of 10% or greater AND housing history is 1x30x12 or better. Waiver not eligible for DTI greater than 50%. For an interest only loan the reduction is based on the amortizing payment used for loan qualification Proceeds from 1031 Exchange cannot be used to meet reserve requirements Reserves for a loan with an Interest Only Feature based upon the interest only payment LTV >90%, see matrix O/O, 2 nd Home: LTV equal to or greater than 80%: max 4% O/O, 2 nd Home: LTV less than 80%: max 6% NOO: LTV equal to or less than 75%: Max is 3% NOO: LTV greater than 75%: Max is 2% Seller Concessions All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Spousal Accounts Accounts held solely in the name of a non-borrowing spouse may be used for down payment and closing costs only and are subject to the seasoning requirements. Accounts held solely in the name of a non-borrowing spouse may not be used to meet reserve requirements. Subordinate Financing Max CLTV = The Lower of 90% Or the Max Available LTV + 5% (Institutional seconds only) Revised Page 12 of 13

108 5000-NP Tax Liens All income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the following are meet; The file must contain a copy of the repayment agreement A minimum of 6-payments has been made under the plan with all payments made on time The balance of the lien must be included when determining the maximum CLTV for the program Refinance transactions require a subordination agreement from the taxing authority Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations (each, an Entity ) To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 13 of 13

109 5000-RH PRODUCT DESCRIPTION NON-PRIME RECENT HOUSING - FULL DOC One Day Out of Foreclosure $2,000,000 Max Loan Max LTV/CLTV FICO Purchase Rate / Term Cash Out % 85% 75% % 80% 75% % 80% 70% % 75% 70% % 70% 70% Additional Program Requirements Program LTV/CLTV FICO Reserves Loan Amount <= $1,000, months Loan Amount > $1,000, months Loan Amount > $1,500,000 5% reduction - 6 months Second Home Max 80% 560 Minimum 6 months Non-Owner Occupied Max 70% 540 Minimum 6 months Limited Tradelines Qualify at 580 FICO Maximum 6 months Bankruptcy, Foreclosure, Short Sale or 1x120x12 < 12 Months Max 70% - - Revised Page 1 of 13

110 5000-RH Adjustable Rate Details Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option - None Age of Documents Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 13

111 5000-RH Down payment funds should be documented for 60 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation included in the loan file. In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other liquid assets. Assets Account Statements should cover most recent 60-dayperiod Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves; Vested Retirement Account funds 60% may be considered for closing and/or reserves; Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Assets being used for dividend and interest income may not be used for reserves requirements. When bank statements are used, large deposits must be evaluated. Large deposits are defined as any single deposit that represents more than 75% of the monthly average deposit balance. Large deposits need to be sourced. Business Funds / Sole Proprietor Business funds may be used for down payment, closing costs and for the purposes of calculating reserves. GreenBox will perform a business cash flow analysis to confirm that the withdrawal of funds for this transaction will not have a negative impact on the business. GreenBox will utilize FNMA Form 1084 or a similar cash flow analysis form to show the business can support the withdrawal of the funds. AUS If owner-occupied or second home, the file must also include one of the following as evidence the borrower is not eligible for financing through a GSE or Government loan program an AUS Findings with a Refer or Approve/Ineligible response Recent bankruptcies are allowed, all bankruptcies (except for a Chapter 13, see below) must be settled at time of application. Evidence of bankruptcy resolution is required. The length of time is measured from the discharge/dismissal date to the note date. Bankruptcy / Housing Event A cash-out refinance to pay off the remaining balance of a Chapter 13 bankruptcy is allowed. In addition to meeting the requirements listed above, the transaction must provide an overall reduction in monthly obligations for the borrower. A minimum of 12-months of payments have been made under the bankruptcy plan. The most recent 12-months of payment plans have been made on time. The borrower has received written permission from the bankruptcy court for the mortgage transaction. Bankruptcies resolved in the last 48 months require a letter of explanation from the borrower. The situation causing the bankruptcy must be adequately documented as resolved. The new housing payment must be considered when determining if the situation is adequately resolved. If multiple bankruptcies exist in this time frame each must be addressed in the explanation. For a 120-day mortgage late, seasoning is from the date the mortgage was brought current. Seasoning for a modification is from the date the modification was executed. Revised Page 3 of 13

112 5000-RH Borrowers Eligibility Eligible: U.S. Citizen Permanent Resident Alien: is a non-u.s. citizen authorized to live and work in the U.S. on a permanent basis. Permanent resident aliens are eligible for financing. Acceptable evidence of lawful permanent residency must be documented and meet one of the following criteria: I-151 Permanent Resident Card (Green Card) that does not have an expiration date; I-551 Permanent Resident Card (Green Card) issued for 10 years that has not expired; I-551 Conditional Permanent Resident Card (Green Card) issued for 2 years that has an expiration date, as long as it is accompanied by a copy of USCIS form I-751 requesting removal of the conditions; Un-expired Foreign Passport with an un-expired stamp reading as follows: Processed for I-551 Temporary Evidence of Lawful Admission for Permanent Residence. Valid until mm-dd-yy. Employment Authorized. A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. In-Eligible: Non-Permanent Resident Alien Foreign national Co-Signers Guarantors Any form of Trust Cash Out Amount Limit (% of Prop Value) Owner Occupied Loan Amount Loan Amount <= $1m > $1m Second Home & NOO SFR 75% 70% SFR 65% Condo / 2-4 Units 70% 65% Condo / 2-4 Units 60% Collections And Charge-Offs Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $10,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following: o Payments for open charge-offs or collections are included in the DTI (Subject to program DTI restrictions). Payment calculated at 5% of balance of remaining unpaid collections and charge-offs. o Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserve requirements. Compliance Fully documented ability-to-repay No section 32 or state high cost Compliance with all applicable Federal and State regulations Revised Page 4 of 13

113 5000-RH Clean housing history since housing event Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing. Standard: 3 tradelines reporting for 12+ mo's or 2 tradelines reporting for 24+ mo's with activity in the last 12 mo's Limited: No minimum tradeline requirements. Credit Only the primary wage-earner must meet the minimum tradeline requirements listed above. To qualify as an acceptable tradeline, the credit line must be reflected on the borrower s credit report. The account must have activity in the past 12 months and may be open or closed. Accounts with delinquencies are allowed when the account is no more than 30-days past due at time of application. An acceptable 12- or 24-month housing history not reporting on credit may also be used as a tradeline. Credit lines on which the borrower is not obligated to make payments are not acceptable for establishing a minimum history. Examples of unacceptable tradelines include loans in a deferment period, collection or charged-off accounts, accounts discharged through bankruptcy, and authorized user accounts. Student loans can be counted as tradelines as long as they are in repayment and are not deferred. Standard Tradelines: Borrowers qualifying with Standard Tradelines are eligible for all occupancy types and programs. Limited Tradelines: The following requirements apply when qualifying with Limited Tradelines: 10% minimum borrower contribution Minimum 6 months reserves after closing Full documentation of income. When qualifying with Limited Tradelines, the lower of either the Representative Loan Score or a 580 score is used to qualify the borrower on the Non-Prime Matrix and Recent Housing Event Matrix. The loan may be priced, however, using the actual Representative Loan Score Primary residence only Housing late payments exceeding 1x60x24 require a letter of explanation from the borrower. The situation causing the delinquency must be adequately documented as resolved. The new housing payment must be considered when determining if the situation is adequately resolved. Matrix 5000-RH Minimum FICO 500 Housing 1x120; 0x30 since Housing Event BK (Chap 13 Discharge) Settled BK (Other) Settled Foreclosure Settled Short Sale / DIL / Loan Mod. Settled Credit Scores The primary wage-earner score is used as the Representative Credit Score, if no primary wage earner, use the lowest representative score of all the borrowers. Additional borrowers on the loan must have at least one valid score of 500 or greater. To determine the Representative Credit Score for the primary wage-earner, select the middle score when 3 agency scores are provided and the lower score when only 2 agency scores are provided. Eligible States See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase & R/T Only; No 50(a)(6)) Revised Page 5 of 13

114 5000-RH Escrow Waiver Impounds are required. Gift Funds Unless otherwise specified, Gift Funds are acceptable if ONE of the following applies 1. A 5% down payment has been made by the borrower from their own resources % Gift Funds are allowed, with a maximum LTV of 75%.Borrower(s) must meet both reserve and residual income requirements. Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt; Gift funds may not be used to meet reserve requirements. Gift of Equity allowed for Primary Residence only. Must meet all other guidelines for Gift Funds. A Housing Event is any one of the following events listed below. If the Housing Event occurred within 24 months of closing, it s considered a Recent Housing Event: Foreclosure Deed-in-Lieu Short Sale Modification 1x120 Seasoning of a foreclosure, deed-in-lieu, or short sale is measured from the date of completed sale or final property transfer. The Housing Event must be completed prior to loan closing with no outstanding deficiency balance remaining. Housing Event For a 120-day mortgage late, seasoning is from the date the mortgage was brought current. Seasoning for a modification is from the date the modification was executed. If the property was surrendered in a Chapter 7 bankruptcy, the bankruptcy discharge date is used for seasoning. Bankruptcy papers may be required to show the property was surrendered. The foreclosure action is not required to be fully complete. There is no seasoning requirement for a Recent Housing Event. It must be completed prior to loan closing with no outstanding deficiency balance remaining. A signed, detailed letter of explanation from the borrower providing the reason for the event must be obtained. If the explanation indicates an inability to make prior housing payments, GB will consider the reasonableness of the new housing payment in comparison to the prior housing payment. Revised Page 6 of 13

115 5000-RH When tax returns are required, the most recent two years should be provided. The definition of most recent is the last return scheduled to have been filed with the IRS. Any Borrower that applied for a tax return extension must provide a copy of the extension in the credit file along with the prior two years of tax returns. Income Wage or Salaried Borrowers: o A completed Request for Verification of Employment (Form 1005 or Form 1005(S)), or the borrower s recent paystub (reflecting 30 days of pay and YTD earnings) and IRS W-2 forms covering the most recent two-year period o A verbal VOE from each employer within 10-days of the note date o A completed, signed, and dated IRS Form 4506-T is required for each borrower. The form should be executed and the transcripts for the most recent two-year period included in the credit file. If tax returns included in the credit file, the transcripts and returns should be compared. Any discrepancies between the two documents should be explained and if necessary additional documentation obtained to satisfactorily address. o Tax returns are not required if the only income is wages or salary. If any business income present on the transcripts or the borrower owns multiple investment properties, tax returns must be provided. Personal tax returns must be complete with all schedules (W-2 forms, 1099 forms, K-1, and any other forms) and be signed and dated Self Employed Borrowers: o Most recent two years of tax returns, personal and business if applicable (including all schedules), signed and dated by each borrower. o A YTD P&L and balance sheet (Borrower prepared acceptable, borrower required to sign both the P&L and Balance Sheet), o A complete, signed, and dated IRS Form 4506-T is required for each borrower and any business entity filing a separate return, the forms should be executed and the transcripts included in the credit file. The tax returns and transcripts should be compared; any discrepancies should be explained and if necessary additional documentation obtained to satisfactorily address. o Verify the existence of the business within 30-days of the note date and ensure the business is active with the following; a letter from either the businesses tax professional certifying 2 years of self-employment in same business, or regulatory agency or licensing Bureau; along with either a phone listing and/or business address using directory assistance or internet search o Underwriter must consider the financial strength of a self-employed borrower's business Revised Page 7 of 13

116 5000-RH Income Documentation of other Sources The following sources of income must be verified using Fannie Mae requirements. Bonus* Commission* Overtime* Part-time/Variable (uninterrupted and stable for past two years*) Retirement Social security Investment and Trust Military or government assistance Child support and alimony Rental Income: should be documented through Schedule E of the borrower s tax returns. If property has not previously been rented, then income will be calculated based on the lower of the lease agreement or 1007 times 75% for single unit property or 70% for 2-4-unit property. * A period of two years must be used in calculating the average overtime, bonus, and commission income. If either type of income shows a continual decline, written justification on the income worksheet must be provided, or income should not be used. For Part-time employment, a minimum two (2) year history is required however a shorter period, of no less than twelve (12) months, may be considered case-by-case if positive factors are present to offset shorter history. Listing Seasoning For cash out refinances, properties previously listed for sale should be seasoned at least 6 months from the listing contract expiration date. Minimum Loan Amount $150,000 Mortgage And Rental Payment Verification Mortgage and rental payments not reflected on the original credit report must be documented via an institutional Verification of Rent or Verification of Mortgage (VOR/VOM). A combined total of all late mortgage and rental payments in the past 12 months must be used to determine the housing history rating. If the borrower is making payments to an individual or interested party, 12 months of cancelled checks or bank statements must be obtained. A VOR/VOM is not required but may be requested for clarification. All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify the account is current. All mortgages and rental payments must be paid as agreed for the last 12 months, or since the date the Housing Event was cured (if Housing Event occurred less than 12 months ago). Mortgage and rental lates prior to the Housing Event are disregarded. Non-Occupant Co-Borrower Co-borrowers must be immediate family members. Occupying borrower(s) must have a DTI ratio of 55% or less. Excluding income/debts of non-occupant borrower. Eligible transactions limited to purchase only. Revised Page 8 of 13

117 5000-RH Occupancy Payment Shock Owner Occupied, Second Homes and Investment Primary Residence Only Payment shock should not exceed 300% of the borrower s current housing payment unless DTI is less than or equal to 36%. If payment shock exceeds this limit the underwriter must provide justification of borrower s ability to handle the increased payment. If the loan purpose is debt consolidation, a payment shock calculation is not required. Payment Shock = (Proposed Housing Payment /Present Housing Payment) * 100 Payment shock is not considered for borrowers who do not have a current housing payment, or own a home free and clear Points and Fees Total points and fees must be less than 5% Investment Properties may have a prepayment penalty. Prepayment penalties on primary residence and second home transactions are prohibited. Prepayment Penalty Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Revised Page 9 of 13

118 5000-RH Property Types Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details) Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Co-ops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Property Types All Condos Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Property Types Non Warrantable Condos Maximum LTV/CLTV: 80% Maximum Loan Amount: $1,500,000 Require Project Approval by GreenBox Loans, Inc. Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units. Qualifying Rate Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment Revised Page 10 of 13

119 5000-RH Ratios Ratio Requirements Occupancy DTI Primary 43% or 50%** Second Home Non-Owner Occupied 43% or 50%** 43% or 50%** transactions with DTIs > 43% Require 12 months of reserves LTV > 80% max DTI is 43% ** COMPENSATING FACTORS TO EXCEED MAX RATIOS: Debt-to-income ratios up to 50% can be approved by the originator on primary and second home transactions. One of the following compensating factors must be present and noted in the file: High Discretionary Income: Residual income of at least $2,500 Minimal Housing Expense Increase: Payment shock less than 125% Low Housing Ratio: Housing ratio of 25% or less Documented Ability to Save: Reserves exceed minimum required by at least 3 months (see Reserves Section), Borrowers own funds contribution exceeds minimum required by at least 5% Strong Consumer Credit: All consumer credit paid as agreed in the most recent 12 months. Maximum 40% housing ratio with compensating factors and exception approval. Non-Owner Occupied Refinance Cash Out For properties owned 12-months or longer, the LTV/CLV is based upon the appraised value. If Cash-Out Seasoning is 7-11 months, the transaction property value is limited to the lower of the current appraised value or the property s purchase price + documented improvements If Cash-Out Seasoning is 6 months or less, the transaction property value is limited to delayed financing or inherited properties. Residual Income Calculation not required. Reserves A minimum of 2 months reserves are required; additional reserves may be required, see matrix. Net Proceeds from cash-out transactions can be used to meet the reserve requirement. Gift funds may not be considered. Reserve requirements are waived for Rate-And-Term Refinance transactions when the transaction results in a reduction to the monthly principal and interest payment of 10% or greater AND housing history is 1x30x12 or better. Proceeds from 1031 Exchange cannot be used to meet reserve requirements Revised Page 11 of 13

120 5000-RH O/O, 2nd Home: LTV equal to or greater than 80%: max 4% O/O, 2nd Home: LTV less than 80%: max 6% NOO: Max is 3% Seller Concessions All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Spousal Accounts Accounts held solely in the name of a non-borrowing spouse may be used for down payment and closing costs only and are subject to the seasoning requirements. Accounts held solely in the name of a non-borrowing spouse may not be used to meet reserve requirements. Subordinate Financing Not allowed Tax Liens All income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the following are meet; The file must contain a copy of the repayment agreement A minimum of 6-payments has been made under the plan with all payments made on time The balance of the lien must be included when determining the maximum CLTV for the program Refinance transactions require a subordination agreement from the taxing authority Revised Page 12 of 13

121 5000-RH Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations: To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 13 of 13

122 5000-1YR * ** NOO Cash out reduce LTV 5%. Second Home Max LTV is 80 PRODUCT DESCRIPTION 1 YEAR TAX RETURNS WAGE EARNERS & SELF EMPLOYED 85% LTV PURCHASE / RATE & TERM REFINANCES & LOAN AMOUNTS UP TO $3,000,000 Primary Residence / Second Home Purchase & R/T Refinance Credit Score LTV/CLTV Maximum Loan Amount % ** $2,000,000 80% $3,000,000 85% $2,000,000 75% $3,000, % $2,000,000 Primary Residence / Second Home - Cash-Out Refinance Credit Score LTV/CLTV Maximum Loan Amount % $1,000,000 75% $1,500,000 70% $3,000,000 80% $1,000,000 75% $2,000,000 65% $3,000,000 80% $1,000,000 75% $2,000,000 Non-Owner Occupied * Purchase & R/T Refinance Credit Score LTV/CLTV Maximum Loan Amount % $1,000,000 75% $1,500,000 70% $3,000,000 80% $1,000,000 75% $1,500,000 70% $2,000,000 Revised Page 1 of 12

123 5000-1YR Adjustable Rate Details Age of Documents Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option Available for LTVs <= 85%. Interest Only period is 120 months Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 12

124 5000-1YR Down payment funds should be documented for 60 days per the Fannie Mae Verification of Deposits and Assets guidelines with the documentation included in the loan file. In addition to documenting the down payment, closing costs, and minimum PITIA reserve requirements, all borrowers must disclose and verify all other liquid assets. Assets Account Statements should cover most recent 60-dayperiod Stocks/Bond/Mutual Funds -100% of stock accounts can be considered in the calculation of assets for closing and reserves; Vested Retirement Account funds 60% may be considered for closing and/or reserves; Non-vested or restricted stock accounts are not eligible for use as down payment or reserves. Assets being used for dividend and interest income may not be used for reserves requirements. When bank statements are used, large deposits must be evaluated. Large deposits are defined as any single deposit that represents more than 75% of the monthly average deposit balance. Large deposits need to be sourced. Business Funds / Sole Proprietor Business funds may be used for down payment, closing costs and for the purposes of calculating reserves. GreenBox will perform a business cash flow analysis to confirm that the withdrawal of funds for this transaction will not have a negative impact on the business. GreenBox will utilize FNMA Form 1084 or a similar cash flow analysis form to show the business can support the withdrawal of the funds. AUS If owner-occupied or second home, the file must also include one of the following as evidence the borrower is not eligible for financing through a GSE or Government loan program an AUS Findings with a Refer or Approve/Ineligible response Bankruptcy Chapter 7 and 11: Chapter 7 and Chapter 11 bankruptcies must be discharged for a minimum of 24 months from closing date. Seasoning is measured from the month and year of discharge. Chapter 13: There is no seasoning requirement for Chapter 13 bankruptcies when the bankruptcy is discharged prior to closing. If the Chapter 13 bankruptcy was dismissed, 12-months seasoning is required from the date of the dismissal. A Chapter 13 bankruptcy may remain open after loan closing when all of the following requirements are met: A minimum 12-month repayment period in the bankruptcy has elapsed. Bankruptcy plan payments for the last 12 months have been made on time. The borrower has received written permission from bankruptcy court to enter into the mortgage transaction. Full bankruptcy papers may be required. A cash-out refinance to pay off the remaining balance of a Chapter 13 bankruptcy is allowed. In addition to meeting the requirements listed above, the transaction must provide an overall reduction in monthly obligations for the borrower. Revised Page 3 of 12

125 5000-1YR Borrower Eligibility Eligible: US Citizen Permanent Resident Aliens Non-Permanent Resident Aliens A Limited Power of Attorney (POA) is acceptable on Purchase or Rate and Term refinances (Not available on C/O) when following requirements are met: POA is specific to the transaction, Recorded with the Mortgage/Deed of Trust, Contains an expiration date, Used only to execute the final loan documents, Borrower who executed the POA signed the initial 1003 and No interested party to the transaction (such as property seller, broker, loan officer, realtor, etc.) may act as Power of Attorney. In-Eligible: Foreign Nationals Any form of Trust Cash Out Amount Limit (% of Prop Value) Owner Occupied Loan Amount Loan Amount <= $1m > $1m Second Home & NOO SFR 75% 70% SFR 65% Condo / 2-4 Units 70% 65% Condo / 2-4 Units 60% Loan Bal < $150k 60% N/A Loan Bal < $150k 60% Collections And Charge- Offs Compliance Individual collection and non-mortgage charge-off accounts equal to or greater than $250 and accounts that total more than $2,000 must be paid in full prior to or at closing. Medical collections may remain open with a max cumulative balance of $10,000 Collections and charge-offs that have expired under the state statute of limitations on debts may be excluded. Evidence of expiration must be documented. All open judgments, garnishments, and all outstanding liens must be paid off prior to or at loan closing. Charge-offs and collections not excluded by the above bullet points must be paid or may stay open if using one or a combination of both of the following: o Payments for open charge-offs or collections are included in the DTI (Subject to program DTI restrictions). Payment calculated at 5% of balance of remaining unpaid collections and charge-offs. o Reserves are sufficient to cover the balance of the charge-offs or collections and meet reserve requirements. Fully documented ability-to-repay No section 32 or state high cost Compliance with all applicable Federal and State regulations Revised Page 4 of 12

126 5000-1YR Standard: 3 tradelines reporting for 12+ mo's or 2 tradelines reporting for 24+ mo's with activity in the last 12 mo's; Limited: N/A The primary wage-earner must meet the minimum tradeline requirements listed above. To qualify as an acceptable tradeline, the credit line must be reflected on the borrower s credit report. The account must have activity in the past 12 months and may be open or closed. Accounts with delinquencies are allowed when the account is no more than 30-days past due at time of application. An acceptable 12- or 24-month housing history not reporting on credit may also be used as a tradeline. Credit lines on which the borrower is not obligated to make payments are not acceptable for establishing a minimum history. Examples of unacceptable tradelines include loans in a deferment period, collection or charged-off accounts, accounts discharged through bankruptcy, and authorized user accounts. Student loans can be counted as tradelines as long as they are in repayment and are not deferred. Any non-mortgage account can be no more than 30-days delinquent at time of application. Any delinquent account must either be brought current or paid off at closing. Credit Tradelines: Borrowers qualifying with Standard Tradelines are eligible for all occupancy types and programs. Limited Tradelines: N/A Matrix YR Minimum FICO 660 Housing 1x30x12 BK (Chap 13 Discharge) 12 Mo BK (Other) 24 Mo Foreclosure 24 Mo Short Sale / DIL 24 Mo Credit Scores The primary wage-earner score is used as the Representative Credit Score, if no primary wage earner, use the lowest representative score of all the borrowers. Additional borrowers on the loan must have at least one valid score of 500 or greater. To determine the Representative Credit Score for the primary wage-earner, select the middle score when 3 agency scores are provided and the lower score when only 2 agency scores are provided. Eligible States See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase & R/T Only; No 50(a)(6)) Escrow Waivers Impounds are required. Revised Page 5 of 12

127 5000-1YR First Time Home Buyers (FTHB) Primary residence only Minimum 6 months of reserves 12-month rental history required reflecting 0x30. Gift Funds Unless otherwise specified, Gift Funds are acceptable if ONE of the following applies 1. A 5% down payment has been made by the borrower from their own resources % Gift Funds are allowed with a maximum LTV of 75%.Borrower(s) must meet both reserve and residual income requirements. Fannie Mae guidelines should be used for donor relationship to borrower(s), documentation, proof of funds, and evidence of receipt; Gift funds may not be used to meet reserve requirements. Gift of Equity allowed for Primary Residence only. Must meet all other guidelines for Gift Funds. Revised Page 6 of 12

128 5000-1YR When tax returns are required, the most recent year should be provided. The definition of most recent is the last return scheduled to have been filed with the IRS. Any Borrower that applied for a tax return extension must provide a copy of the extension in the credit file along with the prior year tax return. Income Documentation Wage or Salaried Borrowers: o A completed Request for Verification of Employment (Form 1005 or Form 1005(S)), or the borrower s recent paystub (reflecting 30 days of pay and YTD earnings) and IRS W-2 form for the most recent tax year. o A verbal VOE from each employer within 10-days of the note date o A completed, signed, and dated IRS Form 4506-T is required for each borrower. The form should be executed and the W-2 transcript for the most recent year included in the credit file. Any discrepancies between the two documents should be explained and if necessary additional documentation obtained to satisfactorily address. o Bonus, overtime, and/or commission income for wage-earners may also be documented for 1 year. A full Written VOE must be obtained and must state that the bonus, overtime, and/or commission income is likely to continue. o Supplemental income is not eligible for 1-Year Income Documentation (i.e. rental income, dividend/interest income, capital gains, alimony, child support, pension or retirement). Self Employed Borrowers: o Most recent year of tax returns, personal and business if applicable (including all schedules), signed and dated by each borrower. o A YTD P&L and balance sheet (Borrower required to sign both the P&L and Balance Sheet), o A complete, signed, and dated IRS Form 4506-T is required for each borrower and any business entity filing a separate return, the forms should be executed and the transcripts included in the credit file. The tax returns and transcripts should be compared; any discrepancies should be explained and if necessary additional documentation obtained to satisfactorily address. o Verify the existence of the business within 30-days of the note date and ensure the business is active with the following; a letter from either the businesses tax professional certifying 2 years of self-employment in same business, or regulatory agency or licensing Bureau; along with either a phone listing and/or business address using directory assistance or internet search o Underwriter must consider the financial strength of a self-employed borrower's business. o Supplemental income is not eligible for 1-Year Income Documentation (i.e. rental income, dividend/interest income, capital gains, alimony, child support, pension or retirement). Listing Seasoning For cash out refinances, properties previously listed for sale should be seasoned at least 6 months from the listing contract expiration date. Minimum Loan Amount $150,000 Revised Page 7 of 12

129 5000-1YR Mortgage And Rental Payment Verification Mortgage and rental payments not reflected on the original credit report must be documented via an institutional Verification of Rent or Verification of Mortgage (VOR/VOM). A combined total of all late mortgage and rental payments in the past 12 months must be used to determine the housing history rating. If the borrower is making payments to an individual or interested party, 12 months of cancelled checks or bank statements must be obtained. A VOR/VOM is not required but may be requested for clarification. All mortgages and rental payments should be current at time of closing. If the credit report or VOR/VOM reflects a past-due status, updated documentation is required to verify the account is current. Non-Occupant Co-Borrower Must be immediate family members. Eligible transactions limited to purchase only Non-Permanent Resident Alien An alien admitted to the United States as a lawful temporary resident. Lawful non-permanent residents are legally accorded the privilege of residing temporarily in the United States. Legal Status Documentation o Visa types allowed: E-1, E-2, E-3, EB-5, G-1 through G-5, H-1, L-1, NATO, O-1, R-1, TN NAFTA o Visa must be current and may not expire for a minimum of 2 years following the close date. o When applicable, valid employment authorization doc (EAD) required for US employment if not sponsored by current employer. Guideline restrictions: o Maximum LTV/CLTV: 75% o Full Documentation o Non-Occupant Co-Borrowers not allowed o Gift Funds not allowed o US credit requirements detailed under the CREDIT section of this guide should be utilized. If adequate depth of US credit cannot be established the Foreign National Qualifying Foreign Credit (5000-FN) may be used. When Foreign Credit used, the restrictions under the Foreign Credit Section apply including the Max LTV of 70%. Occupancy Owner Occupied, Second Homes (one-unit dwelling only) and Investment Payment Shock Primary Residence Only Payment shock should not exceed 300% of the borrower s current housing payment unless DTI is less than or equal to 36%. If payment shock exceeds this limit the underwriter must provide justification of borrower s ability to handle the increased payment. If the loan purpose is debt consolidation, a payment shock calculation is not required. Payment Shock = (Proposed Housing Payment /Present Housing Payment) * 100 Payment shock is not considered for borrowers who do not have a current housing payment, or own a home free and clear Points and Fees Total points and fees must be less than 5% Revised Page 8 of 12

130 5000-1YR Investment Properties may have a prepayment penalty. Prepayment penalties on primary residence and second home transactions are prohibited. Prepayment Penalty Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Property Types Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details) Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Co-ops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Property Types All Condos Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Revised Page 9 of 12

131 5000-1YR Property Types Non Warrantable Condos Maximum LTV/CLTV: 80% Maximum Loan Amount: $1,500,000 Require Project Approval by GreenBox Loans, Inc. Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units. Qualifying Rate and Ratios Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (360 Months) at the time of recast after the interest only period has expired. The interest-only option is a 10-year initial interest-only period followed by 30-year full amortization. Maximum DTI is 43% Refinance Cash Out For properties owned 12-months or longer, the LTV/CLV is based upon the appraised value. If Cash-Out Seasoning is 7-11 months, the transaction property value is limited to the lower of the current appraised value or the property s purchase price + documented improvements If Cash-Out Seasoning is 6 months or less, the transaction property value is limited to delayed financing or inherited properties. Residual Income Calculation not required. Revised Page 10 of 12

132 5000-1YR Reserves Net Proceeds from cash-out transactions can be used to meet the reserve requirement. Gift funds may not be considered. Reserve requirements are waived for Rate-And-Term Refinance transactions when the transaction results in a reduction to the monthly principal and interest payment of 10% or greater AND housing history is 1x30x12 or better. Waiver not eligible for DTI greater than 50%. For an interest only loan the reduction is based on the amortizing payment used for loan qualification Proceeds from 1031 Exchange cannot be used to meet reserve requirements Reserves for a loan with an Interest Only Feature based upon the interest only payment O/O & 2 nd Home- Loan Amount Reserves NOO - Loan Amount Reserves <= $1,000,000 2 months <= $1,000,000 6 months $1,000,001 - $2,000,000 6 Months $1,000,001 - $1,500, Months > $2,000, Months > $1,500, Months O/O, 2 nd Home: LTV equal to or greater than 80%: max 4% O/O, 2 nd Home: LTV less than 80%: max 6% NOO: LTV equal to or less than 75%: Max is 3% NOO: LTV Greater than 75%: Max is 2% Seller Concessions All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Interested party contributions may only be used for closing costs and prepaid expenses, and may never be applied to any portion of the down payment or contributed to the borrower s financial reserve requirements. If a seller concession is present, both the appraised value and sales price must be reduced by the concession amount for LTV/CLTV calculations. Spousal Accounts Accounts held solely in the name of a non-borrowing spouse may be used for down payment and closing costs only and are subject to the seasoning requirements. Accounts held solely in the name of a non-borrowing spouse may not be used to meet reserve requirements. Revised Page 11 of 12

133 5000-1YR Subordinate Financing N/A Tax Liens All income tax liens (federal, state, local) must be paid off prior to or at loan closing. Tax liens that do not impact title may remain open provided the following are meet; The file must contain a copy of the repayment agreement A minimum of 6-payments has been made under the plan with all payments made on time The balance of the lien must be included when determining the maximum CLTV for the program Refinance transactions require a subordination agreement from the taxing authority Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 12 of 12

134 5000-FN PRODUCT DESCRIPTION FOREIGN NATIONAL Traditional Income Documentation from Country of Origin Second Home / Investment Units Credit Score LTV / CLTV Maximum Loan Amount 75% $1,000,000 Purchase/Rate & Term 1-4 Units % $2,000,000 60% $3,000,000 Second Home / Investment Units Credit Score LTV / CLTV Maximum Loan Amount 65% $1,500,000 Cash-Out Refinance 1-Unit % $2,000,000 55% $3,000,000 Revised Page 1 of 9

135 5000-FN Adjustable Rate Details Interest Rate Adjustment Caps - See rate sheet Margin - See rate sheet Index - 1-Year LIBOR (London Interbank Offer Rate) Index Establish Date - 45 days prior to the change date (aka look back period ) Interest Rate Floor - Note Start Rate Conversion Option - None Assumption Yes, subject to investor approval (ARMs Only) Negative Amortization - None Interest Only Option - Available for LTVs <= 80%. Interest Only period is 120 months Age of Documents Credit Report/Credit Documentation: 90 days old at the time of closing Income and Asset Documentation: Dated within 90 days of closing Title Report/Title Commitment: Dated no later than 90 days prior to closing Full Interior / Exterior appraisal required. Fannie Mae/Freddie Mac Forms 1004/70, 1025/72, 1073/465 or 2090 must be used. All Fannie Guidelines apply to appraisal process and value determination, in addition an Appraisal Management Company must be utilized for appraiser selection. The Appraisal should be dated no more than 120 days prior to the Note Date. After a 120 Days period, a recertification of value is acceptable up to 180 days. After a 180 day period, a new appraisal is required. Re-certification of value is not acceptable. Minimum Square Footage 800 Sq. Feet Appraisal Not eligible: Properties for which the appraisal indicates condition ratings of C5 or C6 or a quality rating of Q6, each as determined under the Uniform Appraisal Dataset (UAD) guidelines. GreenBox will consider if issue has been corrected prior to loan funding with proper documentation. APPRAISAL REVIEW PRODUCTS: An enhanced desk review product, (such as an ARR from ProTeck or CDA from Clear Capital), from a GreenBox Approved AMC is required on all transactions. In lieu of an enhanced desk review product, a field review or second appraisal from a GreenBox s AMC is acceptable. If the Appraisal Review Product value is more than 10% below the appraised value a second appraisal is required. When a second appraisal is provided, the transactions Appraised Value will be the lower of the two appraisals. A second appraisal is required on loan amounts > $1,500,000 Revised Page 2 of 9

136 5000-FN Full Asset Documentation is required for both funds to close and reserves Assets Held in U.S. Bank The down payment, closing costs, and reserves must be verified with a VOD or computer bank statement. as deposited in a U.S. bank prior to closing. Seasoning of funds is not required. Assets Assets Held in Foreign Accounts Assets held in foreign accounts may be used as a source of funds to close and to meet applicable reserve requirements. These funds must be transferred to a U.S. domiciled account in the borrower s name at least ten (10) days prior to closing. Documenting Assets Held in Foreign Accounts: o Assets must be verified in U.S. Dollar equivalency at the current exchange rate via either or the Wall Street Journal o conversion table. A copy of the two (2) most recent statements of that account. If the funds are not seasoned a minimum of sixty (60) days, a letter of explanation is required along with the information to comprise a sixty (60) day chain of funds. UK (United Kingdom) Borrowers Only: Use of specific foreign exchange services such as MoneyCorp Halo Financial Currencies Direct or TransferWise in order to transfer funds directly to the closing agent directly. Borrower must have and maintain a US Bank Account regardless of transferring closing funds directly to the closing agent. Borrower must have and maintain a US Bank Account for auto withdrawal of mortgage payments. Cash out from the subject transaction may be used toward the reserve requirement. All Foreign National borrowers are required to complete an ACH Form from a U.S. Bank for auto withdrawal of mortgage payments. Revised Page 3 of 9

137 5000-FN A foreign national is a person who is not a citizen of the United States and/or does not permanently reside in the U.S. Borrower Eligibility Visa types allowed: B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P-1, P-2, TN NAFTA, Laser Visa The following are required as evidence the borrower is in the U.S legally o Copy of the borrowers valid and unexpired passport (including photograph) o Copy of the borrower s valid and unexpired visa (including photograph) OR an I-797 form with valid extension dates and I-94. Borrowers from Countries participating in the State Department s Visa Waiver Program (VWP) or Citizens of Canada and Bermuda are not required to provide a valid visa. Participating countries can be found at or If a non-u.s. citizen is borrowing with a U.S. citizen, Foreign National documentation requirements still apply. All parties involved on transaction must be screened through exclusionary lists, must be cleared through OFAC's SND list, search of Specially Designated Nationals & Blocked Persons List may be completed via US Department of Treasury: Borrowers from OFAC sanctioned countries are ineligible Individuals with Diplomatic immunity not eligible All borrowers must complete IRS form W-8BEN Cash Out Amount Maximum cash out amount limited to 50% of the Property Value Cash-Out Requirements If Borrower has held title to the property less than 12 months, the LTV is based on the lessor of purchase price or appraised value. Cash-Out allowed to borrowers who own up to 10 financed properties. Borrowers requesting a cash-out loan on an investment property must provide a letter of explanation regarding the use of the cash-out proceeds. Co-Borrowers Non-occupant co-borrowers not permitted. Revised Page 4 of 9

138 5000-FN Credit Score Trades Mortgage Bankruptcy/Foreclosure Judgment/Tax Lien/Collections/Charge-Offs 620 if available; qualifying score is the middle of 3 or lower of 2 scores 3 trades minimum, all with 24 months credit history 1 x 30 last 12 months None within 2 years Must be paid. New non-medical items with a cumulative total > $5,000 in the last 24 months will exclude the borrower from this program. Credit Foreign National Borrowers without Qualifying U.S. Credit (Including borrowers without a valid Social Security Number and borrowers with or without an Individual Tax Identification Number) must provide the following: International Credit Report and three (3) credit reference letters from verified financial institutions in the country of origin. In lieu of credit reference letters, a full credit report from the borrower s country of origin from a reputable credit service such as Experian, Trans Union and Equifax, can be provided with evidence of three (3) active and open tradelines with a two year history. No derogatory credit history is permitted. Credit Reference Letters: Must be from an internationally known financial institutions. Each letter of reference must state the type and length of the relationship, how the account is held, payment amount, outstanding balance and status of account including a minimum 12 month payment history. A single reference source may provide verification of multiple accounts. Individual account detail must be provided. The letter must mention the borrower by name. Name, title & contact information of the person signing the letter must be included. Currency must be converted to U.S. Dollars and signed and dated by certified translator. All documents must be translated into English. Documentation Documents signed by Borrowers outside of the United States must be notarized by a U.S. embassy or consular official. The certificate of acknowledgment must meet the standard notarial requirements and must include the embassy or consular seal. If the U.S. embassy or consular official is unavailable, a notary is acceptable if the country, where signing is taking place, is part of the Hague Convention and the signed documents are accompanied by an Apostille. Power of Attorney (POA) is not allowed. All borrowers must have a history of renting or owning within the past 2 years. 12 months cancelled rent checks will be required or recent mortgage history must be reflected on the borrower s credit report. Revised Page 5 of 9

139 5000-FN Eligible States Escrow Waiver Financing Types Gift Funds See GreenBox Loans, Inc.'s "Location" on web page; Texas (Purchase & R/T Only; No 50(a)(6)) Impounds are required. Rate/Term Refinance may include the payoff of a non-purchase money second seasoned at least 12 months. If HELOC, no draws >$2,000 in past 12 months. Gift funds and Gift of Equity not allowed. Housing History Evidence of one year housing history (mortgage and/or rental) is required. Housing history may be included as 1 of the required tradelines for a Qualifying U.S. Credit transaction if it is included on the U.S. credit report or may be used as 1 of the required tradelines for a Qualifying Foreign Credit transaction if it is included on the U.S. credit report, the international credit report, or verified in accordance with credit reference letter Income Limitations Real Estate Owned Listing Seasoning Self Employed Borrowers: Two (2) years foreign tax returns are required from borrower s resident country (if available based on tax reporting laws of country of origin), P&L and Balance Sheet. Self-employed A letter from an independent accountant and or attorney that is not related to borrower s business in any way. The letter shall indicate name and description of the borrower s business, approximate market value of the company, borrower s personal income for each of the prior two years, and year to date income for current year. Letter must be on the accountant s/ attorney s letterhead and must reflect telephone number and address for the independent verification. Letter should be written in English and reflect income in national currency as well as conversion to US Dollars. Salaried Borrowers: Paystubs covering a minimum of 30 days (which include YTD income) AND one (1) of the following: 1) W-2 equivalent or 2) Two (2) years tax returns from borrower country of origin; OR A letter from employer on company letter head providing current monthly salary, YTD earnings and total earning for the past 2 years. Letter from employer must be on company letterhead, including address and company web address, Employer to be independently verified (LexisNexis, D&B, Google, other). All docs must be translated by an independent certified translator; AND Two (2) years foreign tax returns are required from borrower s resident country (if available based on tax reporting laws of country of origin) Borrower limited to two (2) loans with Greenbox Loans, Inc. not to exceed $2,000,000 total. For cash out refinances, properties previously listed for sale should be seasoned at least 6 months from the listing contract expiration date. Revised Page 6 of 9

140 5000-FN Minimum Loan Amount $150,000 Points and Fees Total points and fees must be less than 5% For properties acquired by the seller of the property within 6 months of application date where the contract price exceeds the sellers acquisition price by the following: More than a 10% price increase if the seller acquired the property in the past 90-days; More than a 20% price increase if the seller acquired the property in the past days Property Flipping The Following additional requirements apply: Second appraisal required, (The second appraisal must be provided to the borrower in accordance with either the ECOA or HPML requirements, whichever applies) Second appraisal must be dated prior to the acquisition date; Property seller on the purchase contract must be the owner of record; Increases in value should be documented with commentary from the appraiser and recent comparable sales. Sufficient documentation to validate actual cost to construct or renovate (e.g., purchase contracts, plans and specifications, receipts, invoices, lien waivers, etc.) Prepayment penalties on primary residence and second home transactions are prohibited. Prepayment Penalty Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that payoff due to sale or refinance, or curtailments that exceed 20% of original principal balance in a given 12 month time period. Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums (Warrantable & Non-Warrantable: see appropriate section for additional details) Property Types Ineligible: Acreage greater than 10 acres (appraisal must include total acreage) Agricultural zoned property Condo hotel Co-ops Hobby Farms Income producing properties with acreage Leaseholds Log Homes Manufactured housing Mixed use properties Modular homes Properties subject to oil and/or gas leases Unique properties Working farms, ranches or orchards. Revised Page 7 of 9

141 5000-FN Property Types All Condos Property Types Non Warrantable Condos Qualifying Rate and Ratios Fannie Mae eligible projects and Non-Warrantable projects allowed GreenBox Loans, Inc. project exposure maximum shall be $3,000,000 or 15% of the project whichever is lower Borrower project/unit concentration limit: two (2) units Project meets all FNMA Insurance requirements for property, liability and fidelity coverage Borrower must carry H06 coverage for replacement of such items as flooring, wall covering, cabinets, fixtures, built-ins and any improvements made to the unit The Condo Project Questionnaire must be completed, including all the required documentation from the questionnaire including: CCR, Articles of Incorporation, By-Laws, Master Insurance Policy, Budget / Balance Sheet & HOA questionnaire. All projects are subject to full review and approval. Maximum LTV/CLTV: 70% Maximum Loan Amount: $1,500,000 Require Project Approval by GreenBox Loans, Inc. Maximum of 20% of project owned by any Single Owner / Investor Entity. Maximum of 2 units owned by any Single Owner / Investor Entity if the project has fewer than 10 units. Qualifying Rate and Ratios ARMs Qualify at the greater of the fully-indexed rate or Note rate Fixed Rate Qualify at the Note rate Qualifying ratios are based on a fully amortizing principal and interest payment Interest Only loans qualify at the greater of the fully-indexed rate or note rate based on the scheduled remaining loan term (360 Months) at the time of recast after the interest only period has expired. The interest-only option is a 10-year initial interest-only period followed by 30-year full amortization. DTI Ratio Maximum DTI is 50% Rental Income, Subject Property When the subject property will generate rental income, one of the following Fannie Mae forms must be used to support the income-earning potential of the property: For one-unit properties: Single-Family Comparable Rent Schedule (Form 1007) (provided in conjunction with the applicable appraisal report), or For two- to four-unit properties: Small Residential Income Property Appraisal Report (Form 1025). Fully executed lease agreement(s) to determine the gross rental income to be used in the net rental income (or loss) calculation. Lease Agreements. When current lease agreements are used, the lender must calculate the rental income by multiplying the gross rent(s) by 75%. The remaining 25% of the gross rent will be absorbed by vacancy losses and ongoing maintenance expenses. If the monthly qualifying rental income (as defined above) minus the full PITIA is positive, it must be added to the borrower s total monthly income. If the monthly qualifying rental income minus PITIA is negative, the monthly net rental loss must be added to the borrower s total monthly obligations. The full PITIA for the rental property is factored into the amount of the net rental income (or loss); therefore, it should not be counted as a monthly obligation. The full monthly payment for the borrower's principal residence (full PITIA or monthly rent) must be counted as a monthly obligation. Revised Page 8 of 9

142 5000-FN Residual Income Calculation not required. Reserves Full Asset Documentation is required for both funds to close and reserves This program requires minimum 12 months total reserves at loan closing Seller Concessions 2nd Home: LTV equal to or greater than 80%: max 4% 2nd Home: LTV less than 80%: max 6% NOO: LTV equal to or less than 75%: Max is 3% NOO: LTV greater than 75%: Max is 2% All seller concessions must be properly disclosed in the sales contract, appraisal and HUD-1 and be compliant with applicable federal, state and local law. Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or their affiliates, or any other party with an interest in the real estate transaction. Ownership must be fee simple. Vesting Acceptable forms of vesting are: Individuals Joint tenants Tenants in common Limited Liability Companies, Partnerships, Corporations, and S Corporations To vest a loan in an Entity, the following apply: o Purpose of the LLC is for the ownership and management of real estate o Loan must be disclosed to all owners of the LLC (no more than 4) o Members who own more 10% interest must provide personal guarantees of the Entity in a form satisfactory to GreenBox o The following LLC documentation must be provided: Articles of Incorporation, Operating Agreement, Tax Identification Number and Certificate of Good Standing Revised Page 9 of 9