FNMA Jumbo Conforming Fixed & ARM (HIGH BALANCE LOANS) T300J 30 Year Fixed & T301J 15 Year Fixed A341J 5/1 ARM & A342J 7/1 ARM 30 Year Adjustable

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1 High Balance loan limits (including 2013) are posted on E Fannie Mae website. Link: The following link can also be used for specific property address: DU 9.0 JUMBO/HIGH BAL FIXED 1 PRIMARY HOME PURCHASE & RATE/TERM REFINANCE Property Type 2 Max LTV (CLTV /HCLTV) 3 Min. FICO Max DTI 1 Unit 90 4 / Unit 75/ DU SECOND HOME PURCHASE & RATE/TERM REFINANCE 5 1 Unit 65/ DU INVESTMENT PURCHASE& RATE/TERM REFINANCE 5 1 Unit OR 2 Unit 65/ DU CASH OUT REFINANCE 5, 6 1 Unit Primary 60/ DU 2 4 Units Primary OR 1 Unit 2 nd Home OR 1 Units Investment OR 2 4 Units Investment N/A N/A N/A 1. This matrix is applicable to all Jumbo/High Bal conventional Fixed Rate loans decisioned in DU version 9.0 released the weekend of Oct. 20, 2012 with loan amounts >$417,000. (E. G. The minimum loan amount is $417,001). Maximum loan limits are subject to FannieMae High Balance County limits. 2. Florida condominiums are not eligible for financing under this product. Condo properties with 600 sq. ft. or less located in resort areas will require Corporate Exception and must meet Fannie Mae s project eligibility requirements (cannot contain condotel features, must be demonstrated to be acceptable in the market place via appraiser s use of similar comps, etc). As stated in eligible property topic: ONLY 2 unit properties are eligible for financing under this product. 3. Maximum LTV/CLTV/HCLTV are the same. If Second is HELOC, loan amt + line amt cannot exceed the CLTV/HCLTV. Community Seconds/DAPs are not eligible. 4. Loans >80% LTV are subject to additional M.I. company requirements in addition to LTV/CLTV parameters and other criteria stated in this product guide, SPM P&P requirements must also be met and could potentially supersede applicable M.I. company s guidelines for loans requiring M.I. Nevada condo s >80% LTV are not permitted (either attached or detached) 5. Applicable COO requirements apply. 6. Six months minimum seasoning (six months of payments must have been made) since most recent refinance or date of purchase. All borrowers must have held title (ownership) to the subject property for a minimum of six months. Maximum cash in hand refi proceeds to Borrower is $250,000. Please refer to applicable matrices for DU version 8.3, standard loan amounts, or ARM products Last revision:

2 DU 9.0 JUMBO/HIGH BAL ARM 1 PRIMARY HOME PURCHASE & RATE/TERM REFINANCE 4 Property Type 2 Max LTV (CLTV /HCLTV) 3 1 Unit 75/75 2 Unit 65/65 Min. FICO Max DTI 660 DU SECOND HOME PURCHASE & RATE/TERM REFINANCE 4 1 Unit 65/ DU INVESTMENT PURCHASE& RATE/TERM REFINANCE 4 1 Unit OR 2 Unit 65/ DU CASH OUT REFINANCE 4,5 1 Unit Primary 60/ DU 2 4 Units Primary OR 1 Unit 2 nd Home OR 1 Units Investment OR 2 4 Units Investment N/A N/A N/A 1. This matrix is applicable to all Jumbo/High Bal conventional ARM loans decisioned in DU version 9.0 released the weekend of Oct. 20,2012 with loan amounts >$417,000. (E. G. The minimum loan amount is $417,001). Maximum loan limits are subject to FannieMae High Balance County limits. 2. Florida condominiums are not eligible for financing under this program. Condo properties with 600 sq. ft. or less located in resort areas will require Corporate Exception and must meet Fannie Mae s project eligibility requirements (cannot contain condotel features, must be demonstrated to be acceptable in the market place via appraiser s use of similar comps, etc.) As stated in eligible property topic: ONLY 2 unit properties are eligible for financing under this product. 3. Maximum LTV/CLTV/HCLTV are the same. If Second is HELOC, loan amt + line amt cannot exceed the CLTV/HCLTV. Community Seconds/DAPs are not permitted. 4. Applicable COO requirements apply. 5. Six months minimum seasoning (six months of payments must have been made) since most recent refinance or date of purchase. All borrowers must have held title (ownership) to the subject property for a minimum of six months. Maximum cash in hand refi proceeds to Borrower is $250,000 Please refer to applicable matrices for DU version 8.3, standard loan amounts, or FRM products. Last revision:

3 Agency Jumbo Fixed Rate Loan Products DU Version 8.3 Principal Residence Transaction Loan Amount 1 Property Type Max. LTV (Same as CLTV 5 ) Purchase All 1 Unit Rate/Term Cash Out Refi 4 Purchase or Rate/Term Refi Cash Out Refi Min. Credit Score 90% 2, % Unit 75% 740 $625,500 1 Unit 90% 2, % 660 > $625,500 1 Unit 80% % 660 All 2 Unit 75% 740 All 1 Unit 60% Unit Not Permitted Second Homes All 1 Unit 65% 740 All Not Permitted Investment Property Purchase or 740 All 1 2 Unit 65% Rate/Term Refi Cash Out Refi All Not Permitted THIS Matrix is only applicable to loan transactions with DU 8.3 case files. Loans created in DU Version 8.3 and resubmitted after the weekend of Oct. 20, will continue to be underwritten through DU version The Minimum loan amount is $417, Florida condo s are not eligible for financing under this product. Transactions >80% LTV where M.I. is required may have additional criteria regarding Condo/PUD properties, declining markets, Min. FICO, Max DTI, cash reserves, etc. Please refer to individual M.I. company requirements. Product guidelines do not state Radian or other M.I. companies requirements. For Radian insured transactions the following restriction applies: No condo s or attached PUDs in NV. 3. Condo properties with 600 sq. ft. or less located in resort areas will require Corporate Exception and must meet Fannie Mae s project eligibility requirements (cannot contain condotel features, must be demonstrated to be acceptable in the market place via appraiser s use of similar comps, etc) 4. Six months minimum seasoning (six months of payments must have been made) since most recent refinance or date of purchase. All borrowers must have held title (ownership) to the subject property for a minimum of six months. The maximum Cash in Hand proceeds to borrower are $250, Community Seconds are not permitted. Note: Specific topics not addressed in these guidelines default to standard Agency Fannie requirements. COO requirements apply to all refinances. Last revision:

4 Agency JUMBO 5/1 & 7/1 ARM Products DU Version 8.3 Principal Residence Transaction Loan Amount 1 Property Type 2 Max. LTV (Same as CLTV 4 ) Min. Credit Score Purchase & 1 Unit 75% 680 Rate/Term All 2 Unit 75% 740 Cash Out Refi 3 All 1 Unit 60% Unit Not Permitted Second Home Purchase or Rate/Term Refi All 1 Unit 65% 740 Cash Out Refi All Not Permitted Investment Property Purchase or All 1 2 Unit 65% Rate/Term Refi 740 Cash Out Refi All Not Permitted THIS Matrix is only applicable to loan transactions with DU 8.3 case files. Loans created in DU Version 8.3 and resubmitted after the weekend of Oct. 20, will continue to be underwritten through DU version Minimum loan amount is $417, Florida condos are not eligible for this product. Condo properties with 600 sq. ft. or less located in resort areas will require Corporate Exception and must meet Fannie Mae s project eligibility requirements (cannot contain condotel features, must be demonstrated to be acceptable in the market place via appraiser s use of similar comps, etc) 3 Six months minimum seasoning (six months of payments must have been made) since most recent refinance or date of purchase. All borrowers must have held title (ownership) to the subject property for a minimum of six months. The maximum Cash in Hand proceeds to borrower are $250, Community Seconds not permitted Note: Specific topics not addressed in these guidelines default to standard Agency Fannie requirements. COO requirements apply to all refinances. Last revision:

5 Topic Appraisal DU findings permitting reduced appraisal reports including Property Inspection Waiver (PIW) will be allowed providing that the specific loan scenario or property does not otherwise require a full appraisal report. The following requirements apply: o Specific transactions requiring full appraisals such as those subject to NAL, AIT, Disaster or Flipping policies are not eligible for reduced appraisal reports. Also ineligible: Tax Returns (or other file information) indicates subject property is a Mixed Use property o DU Accept/Eligible finding must reflect PIW, #2055, #1075 or #2075 eligibility on FINAL DU report o When Desktop Underwriter recommends an exterior only inspection (#2055 or #1075), an upgrade to interior and exterior inspection is required when: The appraiser cannot adequately view the property from the street The property does not conform to the neighborhood There are apparent adverse physical deficiencies or environmental conditions Data sources do not provide sufficient information about the property to perform the appraisal Purchase transactions when the transaction is the result of the sale of an REO property The last transaction on the property being purchased was a foreclosure The condition rating is C5 or C6 based on the UAD and the data sources used to develop the appraisal or the appraiser's observations during the exterior only property inspection The quality rating is Q6 based on the UAD and the data sources used to develop the appraisal or the appraiser's observations during the exterior only inspection o When Desktop Underwriter recommends a 2075 Property Inspection, an upgrade to interior and exterior inspection is required when: The appraiser cannot adequately view the property from the street The property does not conform to the neighborhood Apparent adverse physical deficiencies or environmental conditions are observed The appraiser needs additional information about the physical conditions of the property Purchase transactions when the transaction is the result of the sale of an REO property The last transaction on the property being purchased was a foreclosure o When Desktop Underwriter recommends a Property Inspection Waiver, an upgrade to interior and exterior inspection is required when: The subject property does not conform to the neighborhood There are apparent adverse physical deficiencies or environmental conditions The property consists of new or proposed construction. Escrows for postponed improvements are not permitted. Home inspection report or other information in the file indicates the presence of adverse condition and/or marketability factors Purchase transactions when the transaction is the result of the sale of an REO property The last transaction on the property being purchased was a foreclosure When a full appraisal is required, the appraisal report must be AIR compliant. For all Condo s, special instructions must be given when ordering the appraisal to require two comps from projects outside of the subject property in addition to standard current comparable sale requirements. The #2075 is NOT considered to be an appraisal report, and is therefore exempt from AIR requirements. It does not need to be ordered through an AMC Continued on following page Last revision:

6 Continued from previous page Field Review requirements Field Reviews (Form 2000) from national approved appraisal firm are required for all of the following loan transactions: o The loan amount is $625,500 or greater and the loan to value/combined loan to value is greater than 80% o Loans with property values $1,000,000 or greater with LTV/CLTV/HCLTV greater than 75% o If the Field Review results in a different value than the original appraisal, the lowest of the original appraised value, the Field Review value, or the sales price (for purchase transactions) must be used to calculate the loan to value ratios. All full appraisal report loans not subject to a field review as stated above require a desk review from a national approved appraisal firm. o Loan transactions with an LTV of 60% or less AND also have a CoreLogic Pass rating may be exempted from the desk review requirement. o Loan transactions with LTV s > 60% or those that do not pass CoreLogic would still require the desk review from a national approved appraisal company. SPM Appraisal policies apply. ARM Products Margin: Libor Index: 2.25% Term: 30 Year Life Floor: The life floor will never be lower than the margin Index: Libor Index = the average of interbank offered rates for one year in U.S. dollar denominated deposits in the London market (Libor) as published in The Wall Street Journal. Payment Adjustment Date: The first payment change date will be the first of the month following the interest rate adjustment, and every 12 months thereafter. Caps: 5/2/5. 5% max initial adjustment, 2% max periodic adjustment and 5% maximum Life Cap over the Note Rate. Life Cap: 5% over the Note Rate. Interest Rate Adjustment Cap and Date: o Interest rate is fixed for the first 60 or 84 months. The maximum interest rate adjustment at the first adjustment date is 5% maximum first time adjustment. Thereafter the interest rate adjusts annually with a maximum interest rate change of 2%, which will not cause deferred interest. o The interest rate must always be rounded to the nearest 1/8 th of 1% (0.125%) Last revision:

7 Topic Automated Underwriting Brw. Contributions Gift funds Borrowers Eligibility Condo Approvals Credit Declining/ Soft Markets Delegated Underwriting ALL LOANS MUST RECEIVE FNMA DU APPROVE/ELIGIBLE RECOMMENDATION. FNMA Expanded Approvals are not eligible. Manual Underwriting or FHLMC LP is not permitted. Reminder: Reduced MI option is NOT permitted for this product, regardless of DU findings. Owner occupied: Borrower must have minimum 5% of own funds in transaction unless LTV/CLTV is 80% LTV/CLTV Investment Property and Second Home: Gift funds are NOT allowed. Eligible: U.S. citizens, Permanent and Non permanent Resident aliens. (All Borrowers must have valid Social Security Numbers and meet applicable citizenship/residency documentation requirements). Trust vestings are permitted. In eligible: Borrowers involved in lawsuits (whether plaintiff or defendant), Non occupant Co borrowers, Partnerships, Corporations, or Foreign Nationals. Refer to P&P for specific condo project requirements and/or Fannie Mae guidelines for complete condo project eligibility details. (E.G. former restriction regarding limited review limitations are hereby retracted) o Condo properties with 600 sq. ft. or less that are located in resort areas will require Corporate Exception approval. o Attached/Detached PUDs: Follow FannieMae guidelines. Refer to Appraisal for condo comp requirements. Standard SPM credit policy applies including: o All Borrowers must meet credit score criteria stated in matrix. o Mortgage lates: Follow DU findings. (E.G. restriction requiring 0x30 in last 12 months is removed) Please refer to P&P for specifics regarding Major derogs. LTV reductions for properties located in declining markets are NOT required for LTVs 80% LTV. Where the LTV is > 80% and M.I. is required, please follow the M.I. requirements stated in M.I. topic Declining/Soft markets are identified as follows: o Appraisal indicates declining market OR o Property location listed on applicable M.I. company s declining market website for LTV s > 80% Please note: The property valuation must be well supported and all appraisal requirements stated in these guides strictly adhered to. Underwriters are delegated to $650,000 Loan amounts > $650,000 require a Second Signature from the Branch Operations Manager Last revision:

8 Topic DU Refi Plus Eligible Property Types Eligible Terms 1 st Time Buyer Funds to Close/ Reserves Geographic Restrictions Homebuyer Education Interest Only Feature Interested Party Contributions All topics for DU Refi Plus have been moved to the DU REFI PLUS EXPANDED product guide 1 2 Unit Attached/Detached SFRs, Attached/Detached PUDs Low Rise/High Rise Condos Fixed: 30 or 15 years. ARM: 30 year only Interest Only Option, or 15 year ARM products not available. No additional restrictions required for First Time Home Buyers. Follow DU findings/ SPM policy. Geographic restrictions apply. Please refer to SPM Geographic restrictions on the SPM website. Not Required Not available for this product Maximum is 3% for Primary Residences and Second Homes regardless of LTV/CLTV, and 2% for Investment properties. HOA subsidies or the payment of HOA fees may not be made by the builder, property seller, or any other interested third party even if within the allowable interested party contribution limits or if treated as a sales concession and deducted from the sales price. Interested parties may still contribute any fees charged to the borrower at closing to set up or administer an HOA account, provided the combined contributions from interested parties do not exceed specified limits. Last revision:

9 Topic Ineligible Products/Features, or Transaction Types Max. DTI Max. # of Financed properties Max. Loan Amount Max. SPM loans Minimum Loan Amount Mortgage Credit Certificates Mortgage Insurance Non occupant Co Brw. Qualifying Rate Manufactured Homes or Coops, 3 4 Unit properties. Relocation mortgages, Temporary Buy downs. Balloons, Fixed Rate assumable mortgages, Fannie Mae Home style products incl. Construction to Perms, Interest Only, or MCM. Borrowers that are party to a lawsuit Loan transactions with LTV up to 80.00% may be approved at the branch level (without Corporate Exception Approval) providing that redeeming compensating factors exist to warrant high DTI s) LTVs of % are subject to individual M.I. companies restrictions, but may not exceed maximum 45% DTI if permitted by their guidelines Standard FannieMae guidelines apply: No limit if subject property is owner occupied and maximum of 4 financed properties if subject property is Investment or Second Home. Exceptions to the maximum number of financed properties are NOT available if the subject property is an Investment or Second Home property. High cost maximum loan amounts may not be available in all areas. See page 1 for details and requirements. Maximum two Agency High Balance loan transactions are permitted in a 12 month period. Minimum loan amount is $417,001 Not Allowed Note: Individual M.I. companies may have different policies regarding loan size, LTV/FICO, Condo/PUD and other Underwriting Policy limitations. Due to the variances between the companies, as well as their constant changes, they cannot be captured in the matrices. SPM overlays as stated in P&P and product matrices prevail. Detailed M.I. information has been moved to P&P. Financed borrower purchased MI is not permitted. SPM will permit LPMI and HPMI on the Agency Jumbo High Balance product. Please refer to Rate Sheets for details. Radian M.I. link: Condos in the states of AZ and FL are not permitted. Radian guidelines may be followed as long as SPM product parameters and P&P requirements are met. SPM is delegated with Radian to $650,000. Not Allowed Fixed Product: Note Rate ARM: DU version 8.1 and later versions qualify 5/1 ARM products at 2% + Note Rate, 7/1 ARM products qualify at Note Rate. Last revision:

10 Topic Subordinate financing Temporary Buy downs Texas 50(a)(6) Topics Not Specifically Addressed Trailing Spouse Transactions Follow base product. Reminder: Community Seconds are NOT permitted! Not Allowed Not Eligible Revert to standard FannieMae guidelines Not Allowed Purchase Mortgages Rate and Term Refinances (Limited Cash Out) o Hud 1 settlement statement(s) required from any transaction within past 6 months. If previous transaction was a cashout or combined a first and non purchase money subordinate into a new first, loan is considered cash out. If new transaction combines a first and non purchase money subordinate into a new first loan, it is considered cash out. o Pay off of the existing first mortgage o Pay off existing subordinate liens that were used in whole to acquire the subject property o Closing costs and prepaids. o Cash out limited to the lesser of 2% of the principal amount of the new loan or $2000. Cash Out Refinance Transaction: Primary Residence Only o All borrowers must have held title (ownership) to the subject property for a minimum of six months o 6 mos minimum seasoning (six months of payments made) since most recent refinance or date of purchase is required. o $250,000 Cash in Hand limitation applies ONLY to cash net proceeds provided to the Borrower at closing. (E.G. Debts paid at close of escrow do not count towards the limitation) Last revision: