ECOM MORTGAGE, INC. Mortgage Banker / Wholesale Lender NMLS: DBO: w ww.ecommtg.com

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1 AltQM TM Jumbo Program Underriting Guideline Underriting Philoophy ECOM Mortgage Inc take a common ene approach to underriting a borroer creditorthine to determine the illingne and ability to repay the loan. Each applicant ha a different ituation and each loan i eighed on it on merit. Our goal i to help good borroer ith their financing need hile mitigating rik for the company. The AltQMTM program are high rik loan. ECOM Mortgage Inc ill only approve loan for hich the company ha a reaonable belief that the borroer ha the ability to repay the ubject loan. Thi reaonable belief i baed upon information provided by or independently verified by an independent third party. Any irregularity in borroer profile, documentation provided, or property ued to upport the debt may be caue for denial of the loan. Program Highlight Deigned for high credit quality borroer ho: Are eeking loan amount up to 3 million Are eeking an Interet Only feature Have a DTI up to 50% (55% for interet only loan, ee Qualifying Rate and Ratio) Are Foreign National Have credit core a lo a 680 Income and aet are fully documented NOTE: Loan that are eligible for ale to a government-ponored enterprie (GSE) the Federal National Mortgage Aociation (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) are ineligible for any AltQM TM Serie program. Guideline Overvie Loan meeting the parameter outlined in thee guideline are conitent ith the Dodd Frank Wall Street Reform Act Ability to Repay. Documentation tandard are deigned o that loan are made to borroer ho have demontrated the ability and have the capacity to repay the debt thu atifying Ability-to-Repay tandard. Program Qualification Thi program offer ARM option for borroer ith jumbo loan and conforming loan that fall jut outide the parameter for Qualified Mortgage. Full documentation of income and aet i required. All loan mut reflect one or more of the folloing characteritic: 1. Loan contain an interet only feature 2. DTI Exceed 43% 3. Loan amount exceed conforming or high balance limit 4. Loan ha a foreign national borroer Conforming and High Balance Loan Amount (Reference) Conforming Maximum Loan Amount Unit Continental US Alaka & Haaii 1 417, , , , , , ,950 1,202,925 High-Cot Area (High Balance) Loan Amount Continental US Alaka & Haaii Unit Minimum Loan Amount Permanent High-Cot Minimum Loan Amount Permanent High Cot 1 417, , , , , , ,776 1,201, , , ,951 1,451, ,951 1,202,925 1,202,926 1,804,375 Permanent High Cot area limit are the maximum potential loan limit for deignated high-cot area. Actual loan limit are etablihed for each county (or equivalent) and the loan limit for pecific high-cot area may be loer. The original balance of a Mortgage mut not exceed the maximum loan limit for the pecific area in hich the Mortgage Premie i located. For pecific loan limit for each high cot area, a releaed by the Federal Houing Finance Agency viit: 10/14/14 Underriting Guideline Page 1 of 14

2 Eligibility Matrix Loan Amount & LTV Limitation AltQM TM Jumbo Program Underriting Guideline Primary Reidence - Purchae and Rate & Term Refinance 3 Maximum Loan Unit Credit Score LTV CLTV Minimum Loan Amount Amount 80% 80% 1,500,000 1-unit 75% 75% 2,000, % 70% 200,000 3,000, unit 65% 65% 1,500,000 60% 60% 2,000,000 1-unit 680 Primary Reidence Cah-Out Refinance Unit Credit Minimum Loan LTV CLTV Score Amount 3 Maximum Loan Amount Maximum Cah-Out 4 65% 65% 200,000 1,750, , % 70% 1,500, ,000 60% 60% 2,000, ,000 Second Home Purchae and Rate & Term Refinance 5 1-unit 680 Unit Credit Score LTV 2 CLTV 2 3 Maximum Loan Minimum Loan Amount Amount 70% 70% 200,000 2,000, % 75% 1,500,000 65% 65% 3,000,000 1-unit 680 Second Home Cah-Out Refinance 5 Unit Credit Score LTV 2 CLTV 2 Minimum Loan Amount 3 Maximum Loan Amount Maximum Cah-Out 4 60% 60% 200,000 2,000, , % 65% 1,500, ,000 55% 55% 3,000, ,000 Invetment Property Purchae and Rate & Term Refinance 5 Unit Credit Score LTV 2 CLTV 2 3 Maximum Loan Minimum Loan Amount Amount Conforming or High 75% 75% Balance Loan Limit 1-unit % 70% 1,000,000 65% 65% 200,000 1,500,000 60% 60% 2,000, % 65% 1,000, Unit % 60% 2,000,000 Invetment Property Cah-Out Refinance 5 Unit Credit Score LTV 2 CLTV 2 Minimum Loan Amount 3 Maximum Loan Amount Maximum Cah-Out 4 Conforming or High 70% 70% Balance Loan Limit 200,000 1-unit % 65% 1,000, ,000 60% 60% 200,000 1,500, ,000 55% 55% 2,000, , % 60% 1,000, , Unit % 55% 2,000, ,000 Footnote: 1 For loan amount up to 625,500 or high balance limit for 2-4 unit ith credit core of , max DTI i 43%. 2 LTV/CLTV reduced 10% for Foreign National only alloed on 2 nd home and NOO. 3 See Cah-Out Requirement 4 See Limitation on Other Real Etate Oned for multiple property retriction Product Decription 5/1 & 7/1 LIBOR ARM, fully amortizing Interet Only available for fixed period on ARM ECOM MORTGAGE, INC. 10/14/14 Underriting Guideline Page 2 of 14

3 Product Code Fully Amortizing Hybrid Product Code ARM 5/1 AQ05-J : AltQM TM Jumbo 5/1 LIBOR ARM ARM 7/1 AQ07-J : AltQM TM Jumbo 7/1 LIBOR ARM ARM AltQM TM Jumbo Program Underriting Guideline Interet Only Hybrid ARM Product Code 5/1 ARM AQ05-JIO : AltQM TM Jumbo 5/1 LIBOR ARM Interet Only 7/1 ARM AQ07-JIO : AltQM TM Jumbo 7/1 LIBOR ARM Interet Only Product Code Locking AQ05-J Forard locking i not alloed AQ07-J Loan approval i required prior to lock Cannot lock until loan i approved and appraial ha been received by ECOM Mortgage Inc. Eligibility Requirement ECOM MORTGAGE, INC. Adjutable Rate Detail Appraial Requirement Interet Rate Adjutment Cap 5/1, 7/1 & 10/1 ARM (2/2/5) Initial: 2% up/don; Subequent: 2% up/don; Lifetime: 5% up Margin 2.75% Index 1-Year LIBOR (London InterBank Offer Rate) Index Etablih Date Interet Rate Floor The interet rate floor i equal to the Margin Converion Option None Aumption ARM product are aumable to a qualified borroer after the fixed term Negative None Amortization Interet Only Option Available for fixed period on ARM. Note / Rider FNMA 3528 / 3187 (fully amortizing) FNMA 3530 / 3187 (interet only) The underriter may require additional collateral revie. Loan Amount Appraial Requirement One Full Appraial > 1,000,000 To Full Appraial All propertie For Sale By Oner (FSBO) To Full Appraial A Pro Teck Valuation Service Appraial Rik Revie (ARR) upporting the value ithin 10% (higher or loer than appraied value) ill be required hen the Appraial Requirement i One Full Appraial. If variance exceed 10% then a field revie ordered from Pro Teck Valuation Service ill be required. When to (2) appraial are required, an ARR i not required. Note: The ECOA Valuation Rule require copie of appraial and other ritten valuation be delivered to borroer promptly upon completion, or three (3) buine day before conummation, hichever i earlier. Aet Full Aet Documentation i required for both fund to cloe and reerve. For mot aet type, thi ould include all page of the mot recent to month conecutive tatement or the mot recent quarterly tatement. Loan Amount Reerve Required Up to 417,000 6 month 417, ,500 9 month 625,501-1,000, month 1,000,001-2,000, month 2,000,001-3,000, month Note: 1 LTV le than 65% reduce reerve by 50%. 2 Additional 2 month PITIA reerve for each NOO property (regardle of financing); max 36 month. PITIA i the monthly houing expene for a property and include the folloing: Principal and interet (P&I); 10/14/14 Underriting Guideline Page 3 of 14

4 AltQM TM Jumbo Program Underriting Guideline Hazard, flood, and mortgage inurance premium (a applicable); Real etate taxe; Ground rent; Special aement; Any oner aociation due (including utility charge that are attributable to the common area, but excluding any utility charge that apply to the individual unit); Any monthly co-op corporation fee (le the pro rate hare of the mater utility charge for ervicing individual unit that i attributable to the borroer unit); Any ubordinate financing payment on mortgage ecured by the ubject property. Reerve for NOO propertie hall be calculated uing the ort-cae (e.g., propertie ith the highet monthly expene are counted firt) hen borroer ha more than 18 propertie. Reerve for Self-Employed Borroer Self-Employed borroer (e.g., Sole Proprietor, S Corp, Corporation, LLC) may ue buine fund for reerve up to 50% of account balance o long a borroer i 100% oner of buine or borroer ha ritten permiion in file from other buine co-oner() regarding ue of thee buine fund (up to 50% of account balance) for reerve. Gift fund are permitted ubject to the folloing criteria: Primary reidence purchae money tranaction only Firt 5% of don payment mut come from borroer on peronal fund Once the firt 5% of the buyer on fund are verified, a gift can be ued for the remaining don payment and cloing cot Gift may not be ued for reerve Gift of equity are not alloed Signed gift letter i required Donor mut be immediate family member or dometic partner (dometic partner mut live ith borroer) Tranfer of fund or evidence of receipt mut be documented prior to cloing Underriter hould conider the folloing: Aet Bae and Reerve I thi conitent ith the occupation, cah flo and calculated income etablihed for qualifying purpoe? Aumption ARM product are aumable to a qualified borroer after the fixed term. Borroer Eligibility Eligible U.S. Citizen Permanent Reident Alien; provide evidence of laful reidency and mut meet all the ame tandard a U.S. citizen. A copy of the borroer identification i required to verify revie of the acceptable documentation that evidence borroer i eligible to lafully reide in the U.S. Valid Green card, evidence of continuou tatu for at leat 12 month and 12 month remaining tatu. Borroer mut be employed in U.S. for the lat 24 month. Firt Time Home Buyer A Firt Time Home Buyer i an individual that ha not had a mortgage or oned a home in the pat 3 year. Firt Time Home Buyer i limited to maximum loan amount of 1,200,000 Non-Permanent Reident Alien Inter Vivo Revocable Trut mut meet FNMA guideline Foreign National 2 nd Home and NOO Non-Permanent Reident Alien mut meet the folloing requirement: Mut have an unexpired paport from their country of citizenhip containing INS form I-94 hich mut be tamped Employment Authorized An Employment Authorization Card along ith a copy of the Petition for Non-Immigrant Worker (form I-140) in file The borroer() mut have a minimum of 5 year reidency, ith the likelihood of employment continuance for at leat 3 year Oner Occupied only, Single Family and Condo Only H1B and H2B Via are accepted Via mut have a minimum remaining duration of 2 year ith a letter of intent from the employer to rene Borroer mut have a 5 year hitory in the ame line of ork Borroer ith diplomatic immunity or A1, A2, A3 Via are ineligible 70% LTV/CLTV Maximum 10/14/14 Underriting Guideline Page 4 of 14

5 AltQM TM Jumbo Program Underriting Guideline Cah-Out Requirement Co-Borroer Credit If Borroer ha held title to the property le than 12 month, the LTV i baed on the leor of purchae price or appraied value. Borroer ith > 4 financed propertie are ineligible for cah-out hen ubject i econd home or invetment property. Each of the folloing credit component impact the borroer ability to repay the loan. Therefore NO Non-occupant co-borroer not alloed. EXCEPTIONS ill be alloed on the folloing item: Borroer mut have a minimum of 5 tradeline, 3 open and active (and 2 may be cloed), all rated for a minimum 24 month period on the credit report Bankruptcy, Short Sale, Deed-in-Lieu None le than four (4) year Forecloure None in the lat even (7) year Mortgage Late 0x30 pat 24 month Judgment/Tax Lien/Collection/Charge-Off Mut be paid and no ne item in the pat 24 month excluding medical Underriter ill evaluation borroer liabilitie to help ae Ability to Repay. Thee ill include: The monthly payment on any imultaneou loan The conumer monthly payment for mortgage-related obligation The conumer current debt obligation, alimony, and child upport Underriter hould conider the folloing: Credit limit, uage and overall credit profile I thi conitent ith the income etablihed for qualifying purpoe? Documentation Standard Fannie Mae full income and aet documentation i required. Verbal VOE to be performed by the underriter prior to cloing uing lender VVOE form or if elf-employed, an independent ritten confirmation of elf-employment i required (i.e., copy of buine licene reflecting onerhip of company, corporate minute, etc.). All borroer mut have a hitory of renting or oning ithin the pat 2 year. 12 month cancelled rent check ill be required or recent mortgage hitory mut be reflected on the borroer credit report. Payment hock hould not exceed 50% if the borroer currently rent or 100% if the borroer have prior mortgage hitory. Payment hock i calculated by dividing the difference beteen ne and exiting houing payment by the exiting houing payment. Payment Shock Example Ne Payment (PITIA) 1,500 Difference 500 Subtract Exiting Divided by Exiting 1,000 1,000 Payment (Rent or PITIA) Payment Equal Difference 500 Equal Payment Shock % 50% No Section 32 High Cot Loan ill be alloed. Section 35 Higher Priced Mortgage Loan ill be alloed ubject to maximum 45% DTI, mandatory impound account for 5 year and no property flipping. Ability to Repay mut be documented ith: Self-Employed: 2 year 1040, 1065, 1120, K-1 a applicable, VVOE and proceed 4506T Wage Earner: 2 year W-2, 30 day paytub, VVOE and proceed 4506T The borroer mut acknoledge their ability to repay the loan by igning a Borroer Affirmation document at cloing. Ecro Waiver Impound are required for all Primary Reidence loan. (Virtually all primary reidence loan ill be HPML loan.) Impound are optional for Second Home and Invetment Propertie (except Foreign National). Financing Type Rate/Term Refinance A rate/term refinance may include the payoff of a non-purchae money econd eaoned at leat 12 month. If HELOC, no dra >2,000 in pat 12 month. 10/14/14 Underriting Guideline Page 5 of 14

6 AltQM TM Jumbo Program Underriting Guideline Foreign National A foreign national i defined a omeone ho live in another country and viit the United State for brief period for buine or vacation. In order to be eligible, the borroer mut be a legal reident of another country and live and ork there. Eligibility: Foreign National are a non-us Citizen ith a valid paport AND valid via Borroer ho are reident of countrie hich participate in the State Department Via Waiver Program (VWP) ill not be required to provide a valid via. See: Evidence that the borroer i in the U.S. legally i required, hoever, no defined length of tay i required. Borroer via tatu mut be documented to determine eligibility. Alien Statu ID Certification (attached to thee guideline) mut be ued to enure compliance ith eligibility requirement. Legible copy of a valid paport, including photograph, ignature page and evidence of duration of tay permitted for each borroer, and if applicable, a legible copy of a valid via (including photograph) for each borroer. For Canadian and Mexican citizen Ecom accept the folloing: A laer via card; it i both a border croing card and a B1/B2 via, or A NAFTA treaty via (TN, TC, E1 & E2) An IRS form W-8BEN, Certificate of Foreign Statu mut be filed ith the IRS (all borroer). A copy of the Certificate mut be retained in the file. Property Eligibility: Second Home and Invetment Property only. Ecro Account: Taxe and inurance mut be impounded, unle prohibited by la. Mortgage Payment - ACH Due to frequent travel outide the U.S., it i recommended that all Foreign National borroer etablih an ACH debit for mortgage payment from a U.S. bank. Hoever, thi i not a requirement for approval. Credit Score: A credit core i not required, unle a U.S. credit report i available; ee belo. Credit Criteria: If the borroer ha a valid SSN or Tax ID, a traditional U.S. credit report i required Borroer that have etablihed credit in the U.S. and do not meet the 24 month 5 rated trade requirement may not have their credit hitory diregarded. The borroer credit hitory mut comply ith the profile lited in thi ection. NOTE: If a credit report i not available, a minimum of one original credit letter mut be obtained from a financial intitution located in the country of origin or 3 credit reference. The credit reference letter, on the financial intitution letterhead mut include contact information, borroer name and account number, detailing the type and length of the intitution relationhip. The account ith financial intitution mut have been opened at leat to (2) year. Credit reference letter mut be an original on intitution letterhead and reflect telephone money amount hould be reflected in national currency. Credit Score Trade Mortgage Bankruptcy/Forecloure/Short Sale/ Deed-In-Lieu Judgment Collection/Charge-off/Pat Due Tax Lien 680 if available 5 trade minimum, all ith 24 month credit hitory 0 x 30 lat 24 month None. None. None ithin the lat 24 month; all item mut be paid prior to or at cloing None ithin the lat 24 month; all item mut be paid prior to cloing 10/14/14 Underriting Guideline Page 6 of 14

7 AltQM TM Jumbo Program Underriting Guideline Documentation Document igned by borroer outide of the United State mut be notarized by a U.S. embay or conular official. The certificate of acknoledgment mut meet the tandard notarial requirement and mut include the embay or conular eal. Tranlation: All document mut be tranlated into Englih by an independent third party tranlator. Copie of the original document and the tranlation ill be required. Verification of Aet: The don payment, cloing cot, and reerve mut be verified ith a VOD or computer bank tatement a depoited in a U.S. bank prior to cloing. Seaoning of fund i not required. The borroer mut provide the lat 3 bank tatement or mot current quarterly tatement, together ith a copy of the Wall Street Journal converion table a of the ame date a the bank tatement, for the purpoe of converting the borroer foreign currency to U.S. dollar. The underriter mut provide a tatement outlining the beginning and ending balance of all foreign bank account converted to U.S. dollar. Large depoit are handled per FNMA guideline. Income Verification: To (2) year foreign tax return are required from borroer reident country, tranlated into Englih by third party certified tranlator. If reident country doe not have filing requirement, then borroer mut ubmit: Self-employed A letter from an independent accountant or auditor that i not related to borroer buine in any ay. The letter hall indicate name and decription of the borroer buine, approximate market value of the company, borroer peronal income for the prior to year, and year to date income for current year. Letter mut be an original on the accountant letterhead and mut reflect the accountant telephone number and addre. Letter hould be ritten in borroer native language and reflect income in national currency. Borroer hall provide the buine Internet eb page addre (URL). If the buine doe not have a eb page, borroer mut provide marketing material uch a brochure or catalog. Employee (not elf-employed) Letter from borroer employer.. The letter hall indicate poition/title, length of employment, gro income for prior to year, year to date income for current year, and probability of continued employment. The letter mut be an original on the employer company letterhead and mut reflect the employer telephone number, addre, and ebite. Letter hould be ritten in borroer native language and reflect income in national currency. Verbal VOE: A Verbal VOE or a letter from the borroer employer, on company letterhead, i required. Additional Retriction the folloing are not alloed on the Foreign National program: Borroer ith diplomatic immunity Non-occupant co-borroer Gift fund Gift of equity, non-arm-length tranaction, FSBO (for ale by oner) tranaction Geographical Location/Retriction Eligible tate are a follo: : (Ecom i licened for retail loan origination in the folloing tate) CA, MD, VA Branch/LO Si reponible for meeting tate licene requirement for origination in a particular tate. 10/14/14 Underriting Guideline Page 7 of 14

8 AltQM TM Jumbo Program Underriting Guideline Wholeale: CA, MD, VA Additional retriction a follo: State pecific regulatory requirement uperede all underriting guideline et forth by ECOM Mortgage Inc. *Interet-only loan in Illinoi are ineligible for all channel Income Full Income Documentation i required. For mot income type, thi ould include: Employed Borroer: Mot recent paytub including year-to-date earning (covering minimum of 30 day) and to year W-2; or Traditional Written Verification of Employment ith 30 day of paytub and 2 year W-2. Mut have 2 year continuou employment in the ame line of ork. Gap of 60 day or le may be accommodated ith adequate explanation. Self-Employed Borroer: To year peronal return (along ith all chedule) and buine tax return (for buinee here borroer ha 25% or more onerhip interet and the income from the buinee i being ued for qualification). 12 month P&L and current Balance Sheet are alo required. Rental Income - Subject Property and Other Invetment Real Etate Oned (not departure reidence) Rental Income ued for qualification require both Schedule E and leae documentation per Appendix Q. Rental Income on a Departure Reidence (Follo FNMA B3-6-06) If the borroer i converting a current principal reidence to a econd home, both the current and propoed mortgage payment (PITIA) mut be ued to qualify the borroer for the ne tranaction. If the borroer i converting a current principal reidence to an invetment property, the borroer mut have ufficient equity ( in order to ue a portion of gro rental income for qualifying. If le than 30% equity then no rental income ill be alloed. (See FNMA B for documenting 2-4 unit propertie) To confirm leaing of the nely converted property or unit (for a to-to four-unit property), the lender mut obtain a copy of the folloing documentation: Fully executed leae agreement, Security depoit from the tenant, and Bank tatement hoing the depoited ecurity fund. Aet Baed Income (Aet Amortization) Requirement Aet amortization i a calculation ued to generate a monthly income tream from a borroer peronal aet. It can be combined ith other income uch a Social Security, Penion or other invetment income. There i no age retriction. Eligibility Requirement (Aet Amortization) Maximum 70% LTV for Primary Reidence and Second Home Only Borroer and Co-Borroer mut be individual or co-oner of all aet account ith no other account holder lited on the documentation 100% of eligible aet mut be verified and ill be amortized over a 360 month period All aet mut be in a U.S. financial intitutionno Foreign Aet The um of eligible aet a defined are net of any dicount and minu any fund ued for cloing and/or minimum reerve required for the program. Other reported earning from Capital Gain or Interet/Dividend already conidered and averaged a effective income cannot be included or double counted. Eligible Aet Type (Aet Amortization) Conidered aet mut be compried of the folloing readily marketable aet hich mut be available to the borroer ith no penalty and are limited a follo: Bank Depoit Checking, Saving, Money Market account = 100% Publicly traded tock and bond = 65% (tock option not alloed) Mutual Fund = 65% Retirement Account 401(K) plan or IRA, SEP or KEOUGH account = 65% (Thee can only be ued if ditribution i not already et up) Aet Amortization Calculation Policy: 10/14/14 Underriting Guideline Page 8 of 14

9 .ecommtg.com AltQM TM Jumbo Program Underriting Guideline Eligible aet amount to be amortized over a 360 month period (30 year) Borroer may ue documented regular (monthly) payment from IRA or other retirement account here there i a to year hitory of receipt and a three year continuance o long a it i le than 50% of qualifying income. IRS Form 4506T i required to be igned and executed during the origination proce, and trancript documentation for the mot recent to year mut be provided in the cloed loan file. For elf-employed borroer, thi applie to both peronal return and buine return for buinee here borroer ha 25% or more onerhip and the income from the buinee i being ued for qualification). Form 4506T mut alo be igned at cloing. Example of Aet Amortization: Saving Account Balance 100,000 (100,000 Uable toard calculation) Stock Fund Balance 100,000 (65,000 Uable toard calculation) Mutual Fund Balance 10,000 (6,500 Uable toard calculation) Total Uable toard calculation = 171,500/360 = monthly income Limitation on Other Real Etate Oned Loan/Property retriction per borroer are a follo: Borroer limited to eight (8) loan ith Ecom not to exceed 2,000,000. Foreign National limited to to (2) loan ith Ecom not to exceed 2,000,000 total. If borroer only ha one (1) loan ith Ecom, including the ubject property, that loan may exceed 2 million (up to the guideline maximum herein). Borroer ith > 4 financed propertie are ineligible for cah-out hen ubject i econd home or invetment property. Borroer ith 5 10 financed propertie are eligible for purchae and rate/term tranaction on 2 nd home or invetment property ith 720 minimum core. Borroer ith > 10 financed propertie are not eligible for any 2 nd home or invetment property tranaction (purchae, rate/term, or cah-out) Loan Amount Minimum loan amount = 100,000 Occupancy Point and Fee Prepayment Penalty Eligible: Primary Reidence 1-4 unit Second Home 1 unit only Invetment or Non-Oner Occupied 1-4 Unit Maximum 3% Limit None Property Type Eligible 1-unit ingle family reidence (attached and detached) and PUD (attached and detached) 2-4 unit propertie (ithin matrix parameter) Condominium - FNMA Eligible Both FNMA Condo Project Manager (CPM) and FNMA Limited Revie are alloed N/O/O Condo (attached or detached) CPM i required Detached Condo unit that are Principal Reidence or Second Home may be proceed ith Limited Revie (ee B , Limited Revie Proce for Detached Condo Unit) Limited Revie (ee B , Limited Revie Proce for Attached Condo Unit) Limited Revie eligibility criteria for attached unit differ depending upon the occupancy type and LTV/CLTV/HCLTV ratio, and are a follo: Occupancy Type Principal reidence Second home Maximum LTV/CLTV/HCLTV Invetment property Not alloed Note: Mortgage ecured by attached unit in ne condo project are not eligible for Limited Revie. Ineligible Acreage greater than 20 acre (appraial mut include total acreage) 10/14/14 Underriting Guideline Page 9 of 14

10 AltQM TM Jumbo Program Underriting Guideline (Acreage exception available on a cae by cae bai) Agricultural zoned property Condo hotel Co-op Hobby Farm Income producing propertie ith acreage Leaehold Log Home Manufactured houing Mixed ue propertie Modular home Propertie ubject to oil and/or ga leae Title may not be held in a buine name Unique propertie Working farm, ranche or orchard Qualifying Rate and Ratio Qualifying Rate 5/1, 7/1, 10/1 ARM Qualify at the greater of the fully-indexed rate or Note rate ARM qualifying ratio are baed on a fully amortizing principal and interet payment. Interet Only loan qualify at the greater of the fully-indexed rate or note rate baed on the cheduled remaining loan term at the time of recat after the interet only period ha expired. Interet Only loan qualifying payment example: Loan Amount = 100,000 ARM Type = 5/1 ARM 1-Year LIBOR Index = 0.685% Margin = 2.75% Start Rate/Note Rate = 5% Start Rate/Note Rate of 5% i greater than Index plu Margin ( = 3.435%) Term = 25 year (cheduled fully amortizing term after interet only period expire, 30 5 = 25) 5% interet, 25 year amortization = monthly qualifying payment DTI Ratio Maximum DTI i 50% (55% for interet only loan) For conforming loan ith DTI > 43% underriter may require additional reerve baed on borroer reidual income after total debt payment. Follo VA requirement. Maximum increae of ix (6) month reerve. Additional reerve are not required if the reidual income exceed the table amount by over 20%. Interet Only Loan Maximum DTI for Interet only loan i 55% 120% of the VA Reidual Income Table Amount (ee attached table) If the reidual income (Form , Line 43 Balance Available For Family Support i < 120% of the table amount, the loan i ineligible. Section 35 Higher Priced Mortgage Loan (HPML) ill be alloed ubject to maximum 45% DTI, mandatory impound account for 5 year and no property flipping. Secondary Financing Temporary Buydon Underriting Alloed for arm -length tranaction in accordance ith FNMA guideline and program CLTV limit Not alloed ALL LOANS: Loan mut be manually underritten and fully documented. All loan mut be underritten in compliance ith the Ability to Repay tandard et forth. For additional topic not pecifically or fully addreed by Fannie Mae underriting guideline hould be folloed Underriter may requet a copy of any inpection here repair or remediation (monetary or other) are pecified in a purchae contract, regardle of hether repair have been completed. The underriter mut be comfortable that the borroer i able to repay the loan and that belief mut be upported by information from independent third partie. All factor in the loan file mut be vieed in totality to reach thi concluion. 10/14/14 Underriting Guideline Page 10 of 14

11 AltQM TM Jumbo Program Underriting Guideline Underriter hould: Analyze payment hock by comparing the exiting houing payment to the anticipated houing payment, and Make a ound rik aement of the reource of the applicant before finalizing the loan. An underriter ha the dicretion to require any additional documentation they feel i appropriate and reaonable to upport that aement, up to and including peronal and buine tax return. Ecom Underriting Manager revie and ignature i required for loan amount > 1,000,000. Ecom Senior Credit Committee member mut revie and ign for loan amount > 2,000,000. Loan mut be manually underritten. Defer to FNMA Selling Guide for underriting iue not addreed in thi matrix. File mut include title commitment ith 24 month title hitory. VA Reidual Income Calculation Ue VA Form Loan Analyi to calculate reidual income Calculate the total gro monthly income of all occupying borroer. (Note: Do not gro up non-taxable income for the reidual income calculation) 2. Deduct from gro monthly income: a. State income tax b. Federal income tax c. Municipal or other income tax d. Retirement or Social Security tax e. Propoed total monthly fixed payment (total mortgage payment + all recurring monthly obligation) f. Etimated maintenance and utilitie (ue 0.14 per quare foot of gro living area) g. Job related expene (if applicable Employee Buine Expene from IRS Form 2106) 3. Subtract the um of the deduction above from the total gro monthly income of all occupying borroer. The balance i reidual income. Compenating Factor Reidual income may be cited a a compenating factor provided it can be documented and it i at leat equal to the applicable amount for houehold ize and geographic region found on the Table of Reidual Income by Region. To ue reidual income a a compenating factor, count all member of the houehold of the occupying borroer ithout regard to the nature of their relationhip and ithout regard to hether they are joining on title or the note. From the table, elect the applicable loan amount, region and houehold ize. If reidual income equal or exceed the correponding amount on the table, it may be cited a a compenating factor. VA Reidual Income Table (VA Lender Manual Chapter 4.9) Exception: The lender may omit any individual from family ize ho are fully upported from a ource of verified income hich i not included in effective income in the loan analyi. Thee individual mut voluntarily provide ufficient documentation to verify their income to qualify for thi exception. Table of Reidual Income by Region for Loan Amount of 79,999 and belo Family Size Northeat Midet South Wet ,004 Over 5 Add 75 for each additional member up to a family of even. Table of Reidual Income by Region for Loan Amount of 80,000 and above Family Size Northeat Midet South Wet /14/14 Underriting Guideline Page 11 of 14

12 .ecommtg.com AltQM TM Jumbo Program Underriting Guideline ,025 1,003 1,003 1, ,062 1,039 1,039 1,158 Over 5 Add 80 for each additional member up to a family of even. Northeat Midet South Wet Key to Geographic Region Ued in the Preceding Table Connecticut Ne Hamphire Pennylvania Maine Ne Jerey Rhode Iland Maachuett Ne York Vermont Illinoi Michigan North Dakota Indiana Minneota Ohio Ioa Miouri South Dakota Kana Nebraka Wiconin Alabama Kentucky Puerto Rico Arkana Louiiana South Carolina Delaare Maryland Tenneee Ditrict of Columbia Miiippi Texa Florida North Carolina Virginia Georgia Oklahoma Wet Virginia Alaka Haaii Ne Mexico Arizona Idaho Oregon California Montana Utah Colorado Nevada Wahington Wyoming 10/14/14 Underriting Guideline Page 12 of 14

13 AltQM TM Jumbo Program Underriting Guideline Borroer Affirmation Date: Loan No Borroer Name: 1. My average monthly income i 2. I undertand that my monthly payment on thi loan ill be a follo: For year My monthly payment i If thi period i le than 30 year, then I undertand my payment may adjut (more than once) after the firt year. 3. I undertand that my property taxe, inurance and mortgage inurance (if applicable) on thi property ill be approximately thi amount per month (ytem generated) Thee be impounded. If not, I am reponible to pay them directly. 4. I believe I can afford to make the monthly payment on the loan. 5. I am not aare of anything in the future that ill affect my ability to make thi loan payment. 6. If my loan program did not require that I ubmit my prior tax return, I undertand that if I had provided additional verifiable documentation of my income, uch a my tax return or W-2 age tatement or other documentation deemed neceary to upport my income, I may have been able to qualify for a loan ith different loan term or condition uch a a loer interet rate. NOTE: If there i a dicrepancy beteen the term in thi document and the actual loan document, the term of the loan document prevail. I certify that the above information and the information on the final Uniform Reidential Loan Application (Form 1003) i true and correct a of thi day and that it repreent an accurate picture of my financial tatu. Borroer name Borroer name Borroer name Borroer name (Borroer Affirmation Document v7b - Rev 7/25/14) 10/14/14 Underriting Guideline Page 13 of 14

14 .ecommtg.com AltQM TM Jumbo Program Underriting Guideline Alien Statu ID Certification Attach legible enlarged copie of identification. I hereby certify that I have een and revieed the folloing original document(): Form of Identification: Paport Alien ID Card Name a hon on ID: INS/Regitration #: Type/Card #: (Loer left corner of card: e.g., B1/B2, E1 & E2, I-151, I-551, I-94, I-688, I-688B, TC, TN) Expiration Date? NO YES DATE Via Statu (Required for E-1, G-4, H-1, L-1, NATO-5, and NATO-6 tatu) Recent Arrival: YES NO Date of Arrival. I hereby certify that thi information i true and correct. Borroer Signature: Date: Originating Company Repreentative: Date: Rev 7/10/14 # # # 10/14/14 Underriting Guideline Page 14 of 14

15 OMB Control No Repondent Burden: 30 minute LOAN ANALYSIS LOAN NUMBER PRIVACY ACT INFORMATION: The VA ill not dicloe information collected on thi form to any ource other than hat ha been authorized under the Privacy Act of 1974 or Title 5, Code of Federal Regulation for routine ue a (i.e., the record of an individual ho i covered by thi ytem may be dicloed to a member of Congre or taff peron acting for the member hen the requet i made on behalf of the individual) identified in the VA ytem of record, 55VA26, Loan Guaranty Home, Condominium and Manufactured Home Loan Applicant Record, Specially Adapted Houing Applicant Record, and Vendee Loan Applicant Record - VA, publihed in the Federal Regiter. Your obligation to repond i required in order to determine the veteran' qualification for the loan. RESPONDENT BURDEN: Thi information i needed to help determine a veteran' qualification for a VA guaranteed loan. Title 38, USC, ection 3710 authorize collection of thi information. We etimate that you ill need an average of 30 minute to revie the intruction, find the information, and complete thi form. VA cannot conduct or ponor a collection of information unle a valid OMB control number i diplayed. You are not required to repond to a collection of information if thi number i not diplayed. Valid OMB control number can be located on the OMB Internet Page at:.reginfo.gov/public/do/prasearch. If deired, you can call to get information on here to end comment or uggetion about thi form. SECTION A - LOAN DATA 1. NAME OF BORROWER 2. AMOUNT OF LOAN SECTION B - BORROWER'S PERSONAL AND FINANCIAL STATUS 4. APPLICANT'S AGE 5. OCCUPATION OF APPLICANT 6. NUMBER OF YEARS AT 7. LIQUID ASSETS (Cah, PRESENT EMPLOYMENT aving, bond, etc.) 9. UTILITIES INCLUDED 10. SPOUSE'S AGE 11. OCCUPATION OF SPOUSE 12. NUMBER OF YEARS AT PRESENT EMPLOYMENT YES NO NOTE: ROUND ALL DOLLAR AMOUNTS BELOW TO NEAREST WHOLE DOLLAR SECTION C- ESTIMATED MONTHLY SHELTER EXPENSES (Thi Property) 3. CASH DOWN PAYMENT ON PURCHASE PRICE 8. CURRENT MONTHLY HOUSING EXPENSE 13. AGE OF DEPENDENTS SECTION D - DEBTS AND OBLIGATIONS (Itemize and indicate by ( ) hich debt conidered in Section E, Line 40) (If additional pace i needed pleae ue revere or attach a eparate heet) ITEMS ( ) ITEMS AMOUNT MO. PAYMENT UNPAID BAL. 14. TERM OF LOAN: YRS MORTGAGE PAYMENT (Principal and % REALTY TAXES HAZARD INSURANCE SPECIAL ASSESSMENTS MAINTENANCE & UTILITIES OTHER (HOA, Condo fee, etc.) TOTAL JOB RELATED EXPENSE (e.g., child care) TOTAL SECTION E - MONTHLY INCOME AND DEDUCTIONS ITEMS SPOUSE BORROWER TOTAL 31. GROSS SALARY OR EARNINGS FROM EMPLOYMENT 32. FEDERAL INCOME TAX 33. STATE INCOME TAX DEDUCTIONS RETIREMENT OR SOCIAL SECURITY OTHER (Specify) TOTAL DEDUCTIONS NET TAKE-HOME PAY PENSION, COMPENSATION OR OTHER NET INCOME (Specify) 39. TOTAL (Sum of line 37 and 38) 40. LESS THOSE OBLIGATIONS LISTED IN SECTION D WHICH SHOULD BE DEDUCTED FROM INCOME TOTAL NET EFFECTIVE INCOME LESS ESTIMATED MONTHLY SHELTER EXPENSE (Line 21) BALANCE AVAILABLE FOR FAMILY SUPPORT RATIO (Sum of Item 15, 16, 17, 18, 20 and PAST CREDIT RECORD SATISFACTORY UNSATISFACTORY YES REMARKS (Ue revere or attach a eparate heet, if neceary) um of Item 31 and 38) 46. DOES LOAN MEET VA CREDIT STANDARDS? (Give reaon for deciion under "Remark," if neceary, e.g., borderline cae) NO GUIDELINE % CRV DATA (VA USE) 48A. VALUE 48B. EXPIRATION DATE 48C. ECONOMIC LIFE YRS. SECTION F - DISPOSITION OF APPLICATION AND UNDERWRITER CERTIFICATION Recommend that the application be approved ince it meet all requirement of Chapter 37, Title 38, U.S. Code and applicable VA Regulation and directive. Recommend that the application be diapproved for the reaon tated under "Remark" above. The underigned underriter certifie that he/he peronally revieed and approved thi loan. (Loan a cloed on the automatic bai.) 49. DATE 50. SIGNATURE OF EXAMINER/UNDERWRITER 51. FINAL ACTION 52. DATE 53. SIGNATURE AND TITLE OF APPROVING OFFICIAL APPROVE APPLICATION VA FORM NOV REJECT APPLICATION EXISTING STOCKS OF VA FORM , SEP 2006, WILL BE USED.