THE LSMG JUMBO PRODUCT

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1 THE LSMG JUMBO PRODUCT Primary Residence: Purchase Property Type 2-unit Max LTV/CLTV/ Max Loan Min Loan Amount 2 Amount 3 Min FICO Score 4 Max 85% 6 $1,000, % / 43% 80% $1,500, % / 43% $424,101 or $1 70% $1,000, % / 43% above the 75% $2,000, % / 43% conforming limit 70% $2,500, % / 43% for # of units 65% $1,000, % / 43% 60% $1,500, % / 43% Primary Residence: Rate & Term Refinance Property Type 2-unit Max LTV/CLTV/ Max Loan Min Loan HCLTV1 1 Amount 2 Amount 3 Min FICO Score 4 Max 85% 6 $1,000, % / 43% 80% $1,000, % / 43% $424,101 or $1 70% $1,000, % / 43% above the 75% $1,500, % / 43% conforming limit 70% $2,000, % / 43% for # of units 60% $2,500, % / 43% 65% $1,000, % / 43% Primary Residence: Cash Out Refinance Property Type Max LTV/CLTV/ Max Loan Min Loan Amount 2 Amount 3 Min FICO Score 4 Max 70% $1,000, % / 43% $424,101 or $1 65% $1,000, % / 43% above the 65% $1,500, % / 43% conforming limit 60% $2,000, % / 43% for # of units 50% $2,500, % / 43% 1 For hybrid ARMs, maximum LTV/CLTV/HCLTV is reduced by 5% for condos and co-ops. 2 First time homebuyers (borrowers who have not owned a property in the last 3 years) are subject to a maximum loan amount of $1,000,000 3 Loan amounts $1 and above conforming loan limits for 2-4 Unit properties, or $417,001 on 1-unit regardless of loan limit per area, and if LTV exceeds 80% loan amount must exceed High Balance loan limits 4 The Minimum FICO score for the loan is defined as the lowest middle score of all borrowers. 5 DTI maximum is limited to 40% for hybrid ARMs (5/1 LIBOR and 10/1 LIBOR ARM). 6 The Following requirements apply for transactions with LTVs greater than 80%: MI not required Secondary financing not allowed Maximum DTI 36% Non-permanent resident aliens not allowed Gift funds not allowed Agency High Balance loan limits are ineligible Escrow/impound accounts required for LTVs greater than 80% unless prohibited by applicable laws 7 Loan amount > $2,000,000 is available for 20, 25, & 30- year fixed rate product only.

2 Second Home: Purchase and Rate & Term Transaction Type Purchase Purchase or Rate & Term Refi Property Type Max LTV/CLTV/ Max Loan Amount 2 Min Loan Amount 3 Min FICO Score 4 Max 80% 8 $1,000,000 $424,101 or $ % / 43% 75% $1,000,000 above % / 43% 70% $1,500,000 the conforming % / 43% 65% $2,000,000 limit % / 43% 50% $2,500,000 7 for # of units % / 43% Second Home: Cash Out Refinance 9 Property Type Max LTV/CLTV/ Max Loan Amount 2 Min Loan Amount 3 Min FICO Score 4 Max Max Cash Out 60% $1,000,000 $424,101 or $ % / 43% $250,000 55% $1,500,000 above the conforming limit % / 43% $500,000 50% $2,000,000 for # of units % / 43% $750,000 Investment: Purchase and Rate & Term Refinance 10 Transaction Type Property Type Max LTV/CLTV/ Max Loan Amount 2 Min Loan Amount 3 Min FICO Score 4 Purchase 1-4 unit 65% $1,000,000 $424,101 or $1 above the conforming limit for % / 43% Rate & Term Refi 60% $1,000,000 # of units % / 43% Max 8 Second Home Purchases with LTV/CLTV/HLTVs between 75.01% and 80% are limited to 20, 25, & 30- year fixed rate product only 9 The following requirements apply for Second Home Cash-Out Refinance transactions: No rental income for the subject property showing on schedule E of the borrower s tax return No other financed REO other than subject property and primary residence 20,25, 30 year fixed only 10 The Following requirements apply for Investment Property Purchase and Rate & Term Refinance transactions: Florida condominiums limited to 50% LTV/CLTV/HCLTV Co-ops are not allowed Gift funds not allowed Transaction must be arm s length Appraiser to provide rent comparable schedule First-Time Homebuyers not allowed 20,25, 30 year fixed rate only

3 Reserve Requirements Occupancy Loan Amount Required Reserves 11 Primary Residence Second Home < $1,000,000 6 months PITI (LTV over 80% 12 months PITI $1,000,001 - $1,500,000 9 months PITI $1,500,001 - $2,000, months PITI $2,000,001 - $2,500, months PITI < $1,000, months PITI $1,000,001 - $1,500, months PITI $1,500,001 - $2,000, months PITI $2,000,001 - $2,500, months PITI First time homebuyers (borrowers who have not owned a property in the last 3 years) require reserves of 12 months PITI and are limited to a maximum loan amount of $1,000,000. (LTVs over 80% 18 months PITI) All financed properties, other than the subject property, require an additional six (6) months PITI reserves for each property. Jumbo Loans (QM) Notes The minimum FICO score for the loan is defined as the lowest middle of score of all borrowers. Products & Qualifying Rates 30 Year Fixed Rate - Note Rate 15 Year Fixed Rate - Note Rate 5/1 LIBOR ARM - Greater of 7% or Note Rate + 2% 10/1 LIBOR ARM- Note Rate Occupancy Types Primary residences for one-two unit properties. Second home residences for one unit properties Documentation All loans must be manually underwritten and fully documented. Eligible Borrowers U.S. Citizens Inter-Vivos Revocable Trusts Permanent Resident Aliens First Time Homebuyers All Borrowers Must Have a SSN Credit Minimum 3 Open Trade Lines No Authorized User Accounts No Bankruptcy No Foreclosures No Loan Modifications No Short Sales or Deed-in-Lieu No Non-Traditional Credit 11 For Hybrid ARMs, add three months PITI for minimum reserves required as noted above.

4 Process for Loans Complete and sign checklist Submit loan to New Loans Complete Compliance Trigger Initial Review- 72 hours Appraisal Order- 24 hours Appraisal Approval Seven business days NOLA issued- 48 hours Final Approval- 48 hours Closing- 72 hours Final approval is required five business days prior to closing! Financing Borrower(s) may own a total of four (4) financed properties, regardless of occupancy. Eligible Properties One-two unit owner occupied One unit second home Low/Mid/High Rise Condos Modular Homes Properties with < 20 acres Appraisal Requirements Two full appraisals are required on Purchases over $2M & Refinances over $1M. Closing Expectations 45 Days Minimum

5 JUMBO PLUS LOANS (NON-QM) ELIGIBILITY MATRIX Fixed Rate (20, 25, 30 year) Primary Residence Purchase, Rate & Term Refinance Transaction Type Units FICO Maximum Maximum LTV/CLTV/HCLTV Loan Amount % $1,000, % $1,500, % $2,000,000 Purchase % $1,000, % $1,000, % $1,500, % $1,000, % $1,500, % $2,000, % $1,000,000 Rate &Term Refinance 2 Primary Residence Cash-Out Refinance % $1,000, % $1,500,000 Transaction Type Units FICO Maximum Maximum Maximum LTV/CLTV/HCLTV Loan Amount Cash-Out % $1,000,000 $250,000 Cash-Out % $1,000,000 $250,000 Refinance % $1,500,000 $500, % $2,000,000 $500,000 Second Home Transaction Type Units FICO Purchase or Rate & Term Refinance Maximum LTV/CLTV/HCLTV Maximum Loan Amount 13 70% $1,000,000 65% $1,500,000 60% $2,000,000 Jumbo Plus (Non-QM) Notes Jumbo Plus is a Non-QM loan with any of the following attributes: o Debt-to-income ratio > 43%. Max 50% DTI o Qualifying income stream using asset depletion calculation as outlined in the income section for Jumbo Plus. The minimum FICO score for the loan is defined as the lowest middle score of all borrowers. Minimum loan amount is $300,000 for Jumbo Plus. Residual Income Calculation Worksheet must be completed and residual income based on the calculator must be positive for all Jumbo Plus loans. Additional information for residual income requirements is in the Jumbo Program Eligibility Supplement. 12 First-time homebuyers are subject to a maximum loan amount of $1,000, Texas 50 (a) (6) refinance (Texas Equity Loans) only allowed on 20, 25 and 30 year fixed rate and retail originations only. Additional restrictions apply, please see Jumbo Program Eligibility Supplement.

6 Loan Level Price Adjustments (LLPA) FICO Score NA NA Loan Amounts 1,000, ,000,001 1,500, NA 1,500,001 2,000, NA NA 2,000,001 2,500, NA NA NA NA Purpose / Property Cash Out NA NA NA 2 Unit NA NA NA 2nd Home NA Condo High Purchase Product 5 yr Hybrid yr Hybrid yr Fixed yr (add to 30yr Fixed) yr Fixed State Adjustments Florida No Escrows Max Net Price 30 yr Fixed 15 yr Fixed Hybrids 1,000, > 1,000,

7 Products & Qualifying Rates 30 Year Fixed Rate - Note Rate 15 Year Fixed Rate - Note Rate 5/1 LIBOR ARM - Greater of 7% or Note Rate + 2% 10/1 LIBOR ARM- Note Rate Occupancy Types Primary residences for one-two unit properties. Second home residences for one unit properties Documentation All loans must be manually underwritten and fully documented. Eligible Borrowers U.S. Citizens Inter-Vivos Revocable Trusts Permanent Resident Aliens First Time Homebuyers All Borrowers Must Have a SSN Credit Minimum 3 Open Trade Lines No Authorized User Accounts No Bankruptcy No Foreclosures No Loan Modifications No Short Sales or Deed-in-Lieu No Non-Traditional Credit Process for Loans Complete and sign checklist Submit loan to LSMG Complete Compliance Trigger Initial Review- 72 hours Appraisal Order- 24 hours Appraisal Approval Seven business days NOLA issued- 48 hours Final Approval- 48 hours Closing- 72 hours Final approval is required five business days prior to closing! Financing Borrower(s) may own a total of four (4) financed properties, regardless of occupancy.

8 Eligible Properties One-two unit owner occupied One unit second home Low/Mid/High Rise Condos Modular Homes Properties with < 20 acres Appraisal Requirements Two full appraisals are required on Purchases over $2M & Refinances over $1M. Closing Expectations 45 Days Minimum Reserve Requirements Occupancy Loan Amount Required Reserves 14 < $1,000,000 6 months PITI $1,000,001 - $1,500,000 9 months PITI Primary Residence $1,500,001 - $2,000, months PITI $2,000,001 - $2,500, months PITI < $1,000, months PITI $1,000,001 - $1,500, months PITI Second Home $1,500,001 - $2,000, months PITI $2,000,001 - $2,500, months PITI First time homebuyers (borrowers who have not owned a property in the last 3 years) require reserves of 12 months PITI and are limited to a maximum loan amount of $1,000,000. All financed properties, other than the subject property, require an additional six (6) months PITI reserves for each property. Compensation Payout All Jumbo loans originated will have a maximum payout of $7, For Hybrid ARMs, add 3 months PITI for minimum reserves required as noted above.