ELIGIBILITY MATRIX & SUMMARY GUIDELINES 15 & 30 YR Fixed Rates

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1 Revised 6/2/2014 Changes from prior versions are in red font Overlays to Fannie guidelines are underlined Correspondent Lending Jumbo "Premier" Fixed Rate and ARM Product Profile Based on a Fannie Mae manual underwrite Agency ELIGIBILITY MATRIX & SUMMARY GUIDELINES 15 & 30 YR Fixed Rates 15 & 30 YR Fixed Rates 15 & 30 YR Fixed Rates Products 5/1 and 7/1 ARMs 5/1 and 7/1 ARMs 5/1 and 7/1 ARMs Purpose Occupancy Primary Residence PURCHASE Second Home Investment Property Loan Amount Reserves CLTV / HCLTV CLTV / HCLTV % 9 months % 9 months % 12 months $1.5 MM % 9 months $1.5 MM % 18 months > $1.5 MM to $2 MM % 12 months 2 Unit % 12 months 2 Unit 2 Unit $1.5 MM % 12 months 3-4 Units 3-4 Units 3-4 Units Purpose RATE & TERM Occupancy Primary Residence Second Home Investment Property Loan Amount Reserves CLTV / HCLTV CLTV / HCLTV % 9 months % 9 months % 12 months $1.5 MM % 9 months $1.5 MM % 18 months > $1.5 MM to $2 MM % 12 months 2 Unit % 12 months 2 Unit 2 Unit $1.5 MM % 12 months 3-4 Units 3-4 Units 3-4 Units Purpose CASH OUT REFINANCE

2 Occupancy Primary Residence Second Home Investment Property Loan Amount Reserves CLTV / HCLTV CLTV / HCLTV % 9 months $1.5 MM % 9 months > $1.5 MM to $2 MM % 12 months 2 Unit 2 Unit 2 Unit 3-4 Units 3-4 Units 3-4 Units Notes to Eligibility Matrix: Maximum cash-out of $300,000 for loan amounts up to $1,500,000 and $500,000 for loan amounts from $1,500,001 to $2,000,000. LTV/CLTV reduced by 5% when the appraisal indicates in the Neighborhood Section Housing Trends or 1004MC Median Comparable Sale Price that property values are declining. First time homebuyer (FTHB) maximum $1,000,000 loan amount. See Reserves Section for FTHB and multiple financed properties reserve requirements Age of Documents Eligibility Requirements* Appraisals must be dated within 120 days of the Note Date. A new appraisal is required after 120 days. The credit report, employment, income and asset documentation must be dated within 90 days of the Note Date. Two full appraisals (1004 or equivalent) are required on all loan amounts greater than $1,000,000 and the appraised value variance between the appraisals may not exceed 10%. LTV is calculated based on the lesser of the two appraisals or purchase price. LenderLive requires Sellers order an independent appraisal review product on the lower of the two appraisals (if applicable) utilizing one of the following options: Property Desktop Analysis (PDA) from Old Republic, contact PDAClientsetup@oldrepublictitle.com, Collateral Desktop Analysis (CDA) from Clear Capital, contact jim.smith@clearcapital.com, or Residential Appraisal Field Review (FNMA 2000). Notes: Value reported on the appraisal review product must be within 10% of the appraisal and not identify issues that would undermine the credibility of the original appraisal. LenderLive reserves the right to review the appraisal(s) and any additional review products to confirm eligibility, or to determine if the value conclusion is supported. Appraisals All appraisers must hold at least the minimum required state license and a copy of the license must be submitted with the appraisal. Appraisals must be completed in compliance with FIRREA/USPAP and all applicable regulatory requirements. 1004MC Required. On purchase transactions, the appraiser must review the sales contract. Appraisal 1st generation PDF required. LenderLive will not purchase loans secured by properties with unpermitted structural additions. Assignment of Mortgages All loans must be registered with MERS at time of delivery to LenderLive and a MERS transfer of beneficial rights and transfer of servicing right must be initiated by the Seller, to LenderLive within 24-hours of purchase.

3 Assumptions Borrower Eligibility Fixed and ARM loans are not assumable. Jumbo ARM loans must be originated using LenderLive's Non-Assumability ARM Rider and Non-Assumability Note Addendum available in the Forms section of our website. All borrowers must have a Social Security Number U.S. Citizens Permanent resident aliens, with proof of lawful residence plus 24 months United States employment history Non-permanent Residents allowed with proof of lawful residence plus 24 months United States employment history Inter Vivos Revocable Trusts (revocable at any time by the Trustor) Irrevocable Trusts, Limited/General Partnerships and Corporations are not permitted Foreign Nationals are not permitted Non-Occupant Co-borrowers are not allowed Power of Attorney (POA) allowed in accordance with LenderLive standard POA guidelines. Not acceptable for cash out transactions. See LenderLive's manual for complete details. Condominiums Condominiums are not eligible. Credit Residential Mortgage Credit Report from all three repositories is required Mortgage/Rental history must reflect 0x30x24. LenderLive will consider the borrower as having timely payments for the time in which the borrower has owned a property free and clear". LenderLive will not allow borrowers living "rent free". All borrowers contributing qualifying income must meet one of the below options: Three (3) open trade lines with: 24 months of credit history, and All three of these trade lines must have had activity within the last 6 month, and Authorized user accounts or collection accounts cannot be used to satisfy 3 trade line requirement Two (2) open trade lines with: Purchase transactions only, and Borrower(s) have 24 month consecutive mortgage history in the past 5 years One (1) open trade line with: a minimum of 12 months reporting on the open tradeline, and no less than 10 tradelines reporting with one being a mortgage, and credit history established for at least 10 years. Borrowers not contributing income for qualifying purposes are not subject to the minimum trade line requirement. Non Traditional Credit cannot be used in place of the 3 minimum trade lines. LOE for all inquiries within the last 90 days Derogatory Credit No prior Bankruptcy No prior foreclosure, Deid-in-Lieu or Short Sale All judgments and tax liens must be paid Borrowers with prior loan modifications are not allowed, unless the modification is lender initiated and there is documented proof it was not a distressed situation is provided. Eligible Mortgage Products LenderLive will purchase the following products*: Fixed Rate 15 and 30 Year Agency Libor ARM: 5/1 (2/2/5 caps) and 7/1 (2/2/5 caps) with 2.25 Margin *subject to availability of pricing the day the loan is locked with LenderLive

4 Escrow Holdbacks LenderLive will not purchase loans with open escrow holdbacks. All holdbacks must be cleared at delivery and a copy of an amended HUS-1 showing the disbursement is required with the loan file. If the holdback was due to appraiser required repairs, a copy of form 442 Certificate of Completion is also required. Financing Concessions Funds to Close Interested Party Contributions are allowed in accordance with Fannie Mae standards: 3% of value with LTV/CLTV ratios greater than 75% and up to 80% 6% of value with LTV/CLTV ratios less than or equal to 75% Amounts in excess of these limits must be deducted from the lower of the sales price or appraised value when calculating the LTV Full Asset Documentation is required which includes all pages of the most recent two months statements or the most recent quarterly statement. All funds must be owned by the borrowers. Business assets can be used if the borrower is self employed and the borrower is 100% owner of the business. A CPA letter must be included in the file confirming that the withdrawal will not harm the financial strength of the business. Acceptable funds are savings/checking accounts, marketable securities, sale of real property, cash value of life insurance, trust funds, IRA/401K disbursements. If funds are from 401K, the lender must verify the ownership of the accounts and the borrower's actual receipt of the funds realized from the liquidation of the assets if needed to complete the transaction. Provide terms of withdrawal. Gift funds are allowed after the borrower contributes 5%. Must provide documentation the gift was transferred to the borrower prior to close. Donor must be an immediate family member. An executed gift letter with the gift amount, donor's name, address, telephone number and relationship is required. Proof of liquidation of securities and real estate is required Bridge loans on the former primary are acceptable in accordance with Fannie Mae. All large deposits must be sourced in accordance with Fannie Mae guidelines. High Cost / HPML and Rebuttable Presumption Loans LenderLive will not purchase High Cost Loans or Higher Priced Mortgage Loans (HPML) LenderLive will not purchase Rebuttable Presumption Jumbo Loans. Rebuttable Presumption for Jumbo loans is defined as an APR>=1.5% above the APOR

5 Income Documentation Requirements Full Documentation is required, which includes: Most recent YTD paystub covering at least 30 days and two years W2's, or Two years personal tax returns plus business tax returns when the borrower has 25% or more ownership interest in the business. The most recent two years tax transcripts are required for each borrower whose income is utilized as a source of repayment. Generally, when the documentation used to verify income is from the same calendar period as the tax transcript, the information must match exactly. However, if the income documentation is from the current calendar year and the transcript is from a prior year, there can be acceptable variances. If this variance exceeds 20%, document the rationale for using current income. W2 transcripts do not satisfy this requirement. If tax transcripts are not available (due to a recent filing) a copy of the IRS notice showing No record of return filed is required along with documented acknowledgement receipt (such as IRS officially stamped tax returns or evidence that the return was electronically received) from the IRS and the previous two year s tax transcripts. A 4506-T, signed at application and closing, is required for all transactions All income documentation must be dated within 90 days of the date the Note is signed Employment contracts are not acceptable. All borrowers with qualifying income must have a pay stub covering 30 days YTD income Verbal Verification required for all borrowers. Within 10 business days prior to closing for salaried. Within 30 calendar days prior to closing for self-employed. Form 1008 Uniform Underwriting and Transmittal Summary is required on all loans Capital Gains: Not Allowed Lenders must adhere to the more restrictive income guidelines amongst Fannie Mae and QM Appendix Q. The following are notable requirements of QM Appendix Q, however, not all may be listed: Job Gap: Borrower must explain any gaps in employment that span one or more months Returning to Work After Extended Absence: Income may be considered effective and stable when recently returning to work after an extended absence if he/she is employed in the current job for six months or longer. An extended absence is defined as six months. Overtime and Bonus: The lender must develop an average of bonus or overtime income for the past two years. Periods of overtime and bonus income less than two years may be acceptable, provided the lender can justify and document in writing the reason for using the income for qualifying purposes. Income received less than 12 months is not considered effective income. If either type of income shows a continual decline, the lender must document in writing a sound rationalization for including the income when qualifying the consumer. Commission: - Commission income must be averaged over the previous two years. Income received for more than one year, but less than two years may be considered favorably if the underwriter can document: The likelihood that the income will continue, Document in writing a sound rationalization for including the income when qualifying the consumer. Social Security: Must be verified by a Social Security Administration benefit verification letter. Self Employed: Borrowers with a corporation, "S" corporation or partnership must provide a year to date profit and loss (P&L) statement and balance sheet. P&L used to support income trend in either a positive or negative direction. If income is trending downward as shown on the P&L, income must be calculated from most recent one year s tax returns and the P&L statement. Mortgages or Notes Payable in Less than One Year: Self-employed borrowers with S corporation or partnership income must reduce the income by the consumer s proportional share of the total obligations payable by the corporation in less than one year. Capital Gains: Three year s tax returns are required to evaluate a capital gains earnings trend Alimony, Child Support, Maintenance: The consumer must provide acceptable evidence that the payments have been received during the last twelve months Non Taxable: The percentage of non-taxable income that may be added cannot exceed the appropriate tax rate for the income amount. Additional allowances for dependents are not

6 Loan Purpose Purchase Limited Cash-Out/Rate & Term Refinance Proceeds can be used to Pay off a first mortgage regardless of age Proceeds can be used to pay off any junior liens related to the purchase of the subject property Proceeds can be used to payoff a 12 month seasoned junior lien that has no draws greater than $2K within the last 12 months. Proof of no draws within the last 12 months is required. Pay related Closing Costs and Prepaid items Incidental cash to the Borrower in an amount not to exceed the lesser of 1% of the loan amount or $10,000 Cash Out Borrower must have owned the property for at least 6 months and 6 months seasoning required on existing loan Cash-out cannot be used to pay down debt for qualifying POA not allowed in conjunction with cash out. Delayed financing allowed subject to: Must be underwritten to cash out eligibility matrix Owner occupied transactions only Eligible during the first 6 months of ownership only based upon the note date LTV/CLTV calculated from the lesser of the purchase price or current appraised value The original purchase transaction was an arms-length transaction The original purchase transaction is documented by a HUD-1 Settlement Statement, confirming borrower's own funds used to purchase the subject Borrowed funds ineligible Gift or blended funds ineligible Funds secured by a pledged asset or retirement account ineligible The preliminary title search or report must confirm there are no existing liens on the subject property The source(s) of funds for the purchase transaction are documented with two months statements Maximum cash out amount limits do not apply Properties owned less than 12 months, must use the lesser of the original purchase price or new appraised value Refinances must meet the more restrictive of these guidelines or Fannie Mae's continuity of obligations guidelines Minimum Loan Amount Occupancy $417,001 Primary Residence units Second Homes - 1-unit only Investment Properties are not permitted

7 Property: Eligible s Single Family Detached Single Unit Single Family Attached Single Unit 2 4 Unit Attached/Detached PUDs Property: Ineligible s Manufactured homes 3 to 4 unit properties unwarrantable condos Mobile Homes Cooperatives Condominiums Condotels Hotel Condominiums Log homes Timeshares Geodesic Domes Working Farms and Ranches Unimproved Land Property currently in litigation Commercial Enterprises (e.g. Bed and Breakfast, Boarding House, Hotel) Properties with encroachments Zoning violations including residential properties zoned commercial Properties with less than 750 square feet of living area Mixed Use Properties Properties with more than 15 acres. Non arms-length transactions defined as a pre-existing relationship between the buyer and the seller Property, Maximum Number of Financed Properties Maximum number of financed properties will be reviewed on a loan by loan basis based on servicer constraints at the time of origination. Ratios The Maximum DTI is 43% 5/1 ARMs are qualified at the greater of the note rate plus 2% or the fully indexed rate. 7/1 ARMs are qualified at the note rate Recently Listed Properties Rate/Term Refinances: the listing must have been expired or withdrawn six months prior to the application date. Cash-outs: the listing must have been expired or withdrawn 12 months prior to the application date.

8 Rental Income Calculation When the borrower has a history of owning rental property, net rental income or loss is calculated by: The lesser of the gross rent (minus a 25% expense factor) or the market rent established by the appraiser for properties not reflected on the borrower's tax returns. When the property is reflected on the borrower's tax returns, analyze the borrower s cash flow and calculate the net rental income (or loss), making sure that depreciation or any interest, taxes, or insurance expenses were added back in the borrower s cash flow analysis. The full PITI for the rental property must be factored into the amount of the net rental income or loss. When the borrower does not have a history of owning rental property, follow the Fannie Mae requirements. Reserves The minimum reserve requirements are reflected in the grid at the top of this Matrix First time Home Buyers up to $1,000,000, 12 months required reserves Borrowers with greater than 2 financed properties require at least 18 months reserves All asset documentation must be dated within 90 days of the date the note is signed All assets used to satisfy reserve requirements must be owned by the borrowers (reserves cannot be gifted). Business assets cannot be used for reserves. All large deposits must be sourced in accordance with Fannie Mae guidelines. Cash on hand is not an acceptable form of reserves Stocks/Bonds/Mutual Funds - 70% of the current balance may be considered for reserves Vested Retirement Account Funds - 60% of the current balance may be considered for reserves. Retirement accounts, including 401(k), must be vested and allow withdrawals regardless of current employment status. Provide terms of withdrawal or proof of ability to withdraw. Seasoning Rate and Term Refinance When the mortgage being refinanced was a purchase transaction it must be seasoned at least 120 days from the note date of the current loan to the note date of the new loan. Cash Out Refinance The borrower must have owned the property at least 6 months to be eligible for a cash out refinance Secondary Financing States Restrictions New subordinate financing is not permitted. Subordination of existing subordinate financing is allowed. Current payment amount for existing HELOCs may be used. Puerto Rico - not eligible HI - not eligible NY - not eligible Texas 50(a)(6) refinances - not eligible Underwriting Method All loans are Manually Underwritten: AUS is not utilized * Seller shall deliver loans originated in accordance with Fannie Mae Single Seller Guidelines unless otherwise noted in the LenderLive product matrix or manual. Overlays to Fannie guidelines are underlined Resources Fannie Mae Originating and Underwriting - Link to website Fannie Mae Single Family Selling Guide - Link to All Regs version Link to PDF version FNMA Condominium Eligibility Guidelines Link to website