a. Loan is denied within 30 days of rate cap confirmation. b. Loan modifies prior to expiration of rate cap and is purchased by Crescent.

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1 Extended Rate Cap Float Down Option has long been an industry leader in One-Time Close, Construction to Permanent financing for Community Banks and Credit Unions. With the potential of rising interest rates, now you can offer your borrowers an option to select an interest rate cap, with the ability to float down at time of modification. Product Information and Eligibility Product Eligibility One Time Close Construction to Permanent Two Time Close Construction to Permanent where Crescent underwrites prior to construction Renovation to Permanent Max Loan Amount Conforming Loan Limits Commitment Fee.50% Upfront, refundable at loan purchase (modification) or if declined within 30 days of confirmation Float Down Option.125% above product 60-day rate, within 30 days of Modification Availability You can secure the Cap and Float option BEFORE OR AFTER consummation of construction loan Cap Period Upfront Fee 60 Day Rate Plus 180 days.50%.375% 270 days.50%.500% 390 days.50%.750% Extended Rate Cap: The extended rate cap option allows a borrower to protect against the potential of rising interest rates during the time it takes to construct their home. Borrowers now can cap their potential upward rate and payment exposure, while still being able to take advantage of lower rates should they not increase during the rate cap and construction period. Upfront Fee:.50% of loan amount is required as a commitment fee. The fee is forwarded to Crescent Mortgage Company from your institution (not directly from borrower). The fee must be received within 15 days of request. Should the fee not be received within the specified time, rate cap is subject to cancellation or re-pricing. Reminder: Fees cannot be collected from the borrower (other than for a credit report) prior to the issuance of the loan estimate and the borrower acknowledging their intent to proceed. Upfront fee is refundable only if: a. Loan is denied within 30 days of rate cap confirmation. b. Loan modifies prior to expiration of rate cap and is purchased by Crescent. Fee should be remitted from your institution, by check, to: 6600 Peachtree Dunwoody Road, NE 600 Embassy Row, Suite 650 Atlanta, GA Attn: Marketing Department

2 The fee is refunded to the correspondent upon loan purchase by subsequent to modification so long as the conditions above are met. Float Down Option: A float down option may be exercised once during the last 30 days prior to modification should the market interest rates be lower than the rate cap. Rate can float down and be locked at current market, 60-day price, plus 1/8 th of 1 percent to the interest rate. To provide consumers protection, if the rate is locked using the float down option, the note rate cannot exceed the Fannie Mae Required 30-day Net Yield (available at and daily on Crescent Rate Sheet) plus 1 (one) percent. Rate Cap Example: If after adjustments the 60-day price is and note rate is 4.125%, and borrower desires a 270-day rate cap (.500% addition to 60-day note rate). You request a rate cap from Crescent Mortgage. Upon receiving the.50% upfront fee, will provide a rate cap for 4.625% priced at for 270 days. (4.125% note rate, 60-day price, plus.5% addition to note rate) At time of modification, if 60-day rates are higher than the rate cap, the loan can modify at the note rate of the rate cap and SRP from original lock. (In example above 4.625% priced at ) Float Down Example: To continue using the example above, if within 30 days of modification, and within the 270-day rate cap period, rates reflect that interest rates for this program after adjustments are less than the rate cap, now 3.750% note rate for a 60-day lock yields in SRP. You would be able to float down to current market plus.125% to note rate for a 30-day lock. In this example, you could float down and lock at 3.875% paying (30-day lock at 60-day price plus.125% addition to note rate) Required Disclosure and Timing: Borrower(s) will need to execute the Extended Fixed Rate Cap with Float Down Agreement disclosure. This disclosure can be generated in Motion by going to Order Documents / Internal Documents / Extended Rate Cap and Float Down Agreement. It is automatically generated when you request the Cap and Float option in Motion. The Rate Cap and Float Down can be obtained pre, or post-consummation of the construction loan. If the rate cap is requested pre-consummation of the construction loan, keep in mind that you must modify on or prior to the expiration date of the rate cap. You should plan for the time it takes to underwrite and close the construction loan in these cases. The days expressed in the rate cap are days from the rate cap request, not closing of the construction loan.

3 The upfront fee should be disclosed as a commitment fee on the Loan Estimate if option is obtained prior to closing of construction loan. If an initial LE was issued without this fee, and borrower opts for this option, a Change in Circumstance (CIC) and a revised LE must be issued to the consumers within 3 days. If the rate cap is requested post-consummation, Crescent will require the Extended Rate Cap with Float Down Agreement disclosure, however no revised Closing Disclosure would be required since the loan has already closed. Lock Extension: Once a rate is locked for up to 30 days prior to modification, the loan must modify within this lock period and normal delivery and purchase times apply. Should the modification be delayed, the loan can be extended based on our normal lock extension policy so long as extended within the lock period. Should the lock expire, but not expired by more than 30 days the rate will be the current market 60-day price plus.125% addition to note rate, or the rate cap rate and price whichever is worse, however if expired, the.50% commitment fee is not refunded. Should the lock expire and exceed 30 days from original expiration, and rates are lower than the rate cap, the rate will be the current market 60-day price plus.125% addition to note rate. Should the lock expire and exceed 30 days from original expiration, and rates are higher than the rate cap, the rate must be relocked at current market. MOTION - Requesting the Rate Cap and Float Down Option: In Motion Navigate to screen Extended Rate Cap and Float Down located in the Registration and Lock navigation folder. 1. Select Rate Cap Term. 2. Select the base interest rate from either 30 or 15-year CP-Permanent rates displayed to the right. (must be same amortization as the construction). 3. The Rate Cap note rate will automatically populate. 4. The.5% commitment fee will automatically populate. 5. Enter the 60-day price for the base interest rate selected. 6. Pricing adjustors automatically populate. 7. Rate Cap net price will automatically populate. 8. Press Request Rate Cap and Float Option.

4 Once you have requested the Rate Cap, the required borrower disclosure is automatically generated and is in Attachments. Crescent Marketing Department will confirm the Cap and Float within one business day. Interest rate Pricing Expiration date of Rate Cap Once confirmed you will receive a confirmation from Crescent Marketing Department inclusive of instructions for submitting the commitment fee to Crescent Mortgage. Addendums: a. Example Rate Cap and Float Borrower Disclosure b. Example Rate Cap and Float Confirmation

5 Exhibit A - Sample Rate Cap and Float Down Disclosure Extended Fixed Rate Cap with Float Down Agreement Loan ID: XXXXX91529 Borrower(s): Dad H Firstimer, Mom G Firstimer Property Address: 2010 Oak Street, Atlanta, GA Lender Bank of Demonstration EXTENDED FIXED RATE CAP OPTION If you meet all lender requirements, and wish to modify to a fixed rate mortgage at the completion of the construction phase, you may choose to enter into this extended rate cap agreement. After meeting all requirements for the completion of your home and the loan is modified on or before your interest rate cap period expires, your permanent mortgage rate will not be higher than the maximum interest rate cap. FLOAT DOWN OPTION If market interest rates for the program that you have selected, and the points that you have paid, are lower than the rate cap at the time you are eligible to lock in your permanent mortgage rate, you will receive this lower market rate plus 1/8th of one percent.should the "float down" option be utilized, the fixed rate for the permanent phase shall not exceed the Fannie Mae Required 30 day Net Yield (available at plus 1 (one) percent. FEE One half of one percent of the approved permanent phase loan amount is charged for the extended rate cap option. This amount is not refundable unless: a.) Loan is declined within 30 days of of locking the extended rate cap option. b.) Loan is modified to permanent fixed rate on or before the expiration of the extended rate cap. MODIFICATION AND REPAYMENT PERMANENT PHASE Borrower(s) understand that at the Completion Date, Borrower(s) must qualify under the Lender s then current underwriting guidelines in order for Lender to be obligated to proceed with the permanent phase. EXPIRED RATE RE-LOCK POLICY Your permanent mortgage interest rate may be locked in within 30 days of the anticipated completion of your home. Should you lock your rate and fail to modify to the fixed rate by the expiration date; you will be able to extend your newly locked interest rate for a fee. You must request such an extension on or before the expiration date of your interest rate commitment. If you fail to request such an extension on or before your expiration date, you will have forfeited the rate cap. At that time, our "Expired Rate" re-lock policy will be applied in determining your permanent mortgage rate. This "Expired Rate" re-lock policy is outlined below. Any loan with a rate that expires must be re-locked at the higher of either the interest rate that your loan was previously locked at, or the current market interest rate. In no event, will you receive a lower market interest rate by virtue of the fact that your home was not completed in time to meet any prior lock-in expiration date(s). I (We) understand and agree with the terms as outlined in this Agreement. Borrower Borrower Date Date MCLCKINAGR

6 Exhibit B - Sample Cap and Float Confirmation Valued Crescent Client: Bank of Demonstration Extended Rate Cap with Float Down Borrower(s) Dad H Firstimer, Mom G Firstimer Loan Number: XXXXX91529 MERS Number: Channel: Correspondent Contact Information For questions about your extended rate cap with float down option, please contact a representative from our marketing department at marketing@crescentmortgage.net or (800) Rate Cap Expiration Date: 5/8/ :28:43 AM Estimated Closing Date: 9/15/2017 Rate Sheet Date: 08/10/2017 Loan Officer Loan Officer, Demo fwilliams@crescentmortgage.net / (303) Processor Demo Processor sslack@crescentmortgage.net / Account Executive AE Tester fwilliams@crescentmortgage.net / Borrower Dad H Firstimer, Mom G Firstimer Property Street 2010 Oak Street City/ State Atlanta, GA Zip Interest Rate Cap: Rate Cap Requested Date: 0 Rate Cap Period: 270 Days Rate Cap Expriation Date: 5/8/ :28:43 AM Total Current Pricing Adjustments: Rate Cap Net Price: 102 Comments: Thank you for choosing Fee Amount to Remit $1, Fee Due Date 8/25/ :28:43 AM Important Check should be from your institution, not the borrower(s). Remittance Instruction 6600 Peachtree Dunwoody Rd NE 600 Embassy Row, Suite 650 Atlanta, GA Attn: Marketing Department