CONVENTIONAL CONFORMING HIGH BALANCE PROGRAM

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Product GuidelinesCONVENTIONAL CONFORMING HIGH BALANCE PROGRAMPROGRAM CODES: H15FCONF, H30FCONFVersion 3.7 – 09/07/21;PURCHASE & RATE/TERM REFINANCE - FIXED RATEOccupancyMax Loan AmountMaximumLTVMaximumCLTVMin FICOPrimary1 Unit 822,37595%95%620Primary2 Units 1,053,00085%85%620Primary3 Units 1,272,75075%75%620Primary4 Units 1,581,75075%75%6202ndHomes1 Unit 822,37590%90%620**NonOwner1 Unit 822,37585%85%620NonOwner2 Units 1,053,00075%75%620NonOwner3 Units 1,272,75075%75%620NonOwner4 Units 1,581,75075%75%620Max RatiosMinimum provedEligible /AcceptEligible - Upto 50%Maximum DTIReview theMinimum DownPayment sectionin theIncome/Assetstable belowEvaluated byAUSRefer to minimumreserves sectionfor requirementsAUSApprovedEligible /AcceptEligibleReview theMinimum DownPayment sectionin theIncome/Assetstable belowEvaluated byAUSRefer to minimumreserves sectionfor requirementsAUSApprovedEligible /AcceptEligible - Upto 50%Maximum DTIEntire DownPayment FromBorrowers Ownfunds*Evaluated byAUSRefer to minimumreserves sectionfor requirements*Does not apply to Rate/Term Refinance**Second Home Florida Condo minimum credit score 740CMS Policies & ProceduresPage 1 of 12

Product GuidelinesCONVENTIONAL CONFORMING HIGH BALANCE PROGRAMPROGRAM CODES: H15FCONF, H30FCONFVersion 3.7 – 09/07/21CASH OUT - FIXED RATEOccupancyMax Loan AmountMaximumLTVMaximumCLTVMin FICOMax RatiosMinimum provedEligible /AcceptEligible - Upto 50%Maximum DTINAEvaluated byAUSRefer to minimumreserves sectionfor requirementsAUSApprovedEligible /AcceptEligible - Upto 50%Maximum DTINAEvaluated byAUSRefer to minimumreserves sectionfor requirementsAUSApprovedEligible /AcceptEligible - Upto 50%Maximum DTINAEvaluated byAUSRefer to minimumreserve sectionfor requirementsPrimary1 Unit 822,37580%80%620Primary2 Units 1,053,00075%75%620Primary3 Units 1,272,75075%75%620Primary4 Units 1,581,75075%75%6202ndHomes1 Unit 822,37575%75%620NonOwner1 Unit 822,37575%75%620NonOwner2 Units 1,053,00070%70%620NonOwner3 Units 1,272,75070%70%620NonOwner4 Units 1,581,75070%70%620MANUFACTURED HOMESOccupancyLoan PurposeMax LTV/CLTV/HCLTVPrimary1 UnitPurchase & Rate/Term Refinance95%Primary1 UnitMax Term 15 YearsCash-Out Refinance65%1 UnitPurchase & Rate/Term Refinance90%2nd HomesNon-OwnerCMS Policies & ProceduresNot PermittedPage 2 of 12

Product GuidelinesCONVENTIONAL CONFORMING HIGH BALANCE PROGRAMPROGRAM CODES: H15FCONF, H30FCONFVersion 3.7 – 09/07/21CONVENTIONAL Underwriting Guidelines Requirements (Loan MUST be submitted through AUS)COLLATERALAppraisalTransferred appraisals are permitted with proof the appraisals comply with Appraisal Independence Requirements (AIR). Re-use of anappraisal report is not permitted. HPML loans may require second appraisal. One-Unit Residential Appraisal Field Review Report (Form2000) also is required if the property value is 1 million and LTV/CLTV/HCLTV 75%. Use the lower of original appraised value, FieldReview value, or sales price (for purchases) to calculate LTV. If the appraisal report is marked "subject-to" a final inspection 1004D willalways be required, processor certifications will not be accepted in lieu of.Second AppraisalsWhen a new appraisal is obtained, CMS must document the deficiencies that are the basis for ordering the new appraisal and select themost reliable appraisal. CMS must either document the resolution of the noted deficiencies in the original appraisal or detail the reasonsfor relying on a second opinion of market value.Appraisal UpdatesPermitted. Follow guidelines and acceptable extension dates. The appraisal may be no older than 240 days at closing with an appraisalupdate.Appraisal AcknowledgmentBorrowers must acknowledge that they received all appraisal reports three (3) days prior to close.Appraisal WaiverPermitted. Follow FNMA Appraisal Waiver requirements. Not eligible for manufactured homes, 2-4 unit properties, TX Home Equity50(a)(6) or 50(a)(6) Conversion, values of 1M or greater, leaseholds, properties with resale restrictions, when satisfying constructionfinancing, using rental income from the subject property to qualify, gifts of equity, or an appraisal has been obtained within 120 daysof the note date.CondoCMS Policies & ProceduresAll condos must be warranted & must have completed warranty forms. Acceptable condo project approvals are PERS approval, LenderFull Review completed by InterIsland, and Limited Review (DU).Not eligible: Condotels, including projects that allow short-term rentals, vacation rentals, timeshares, or segmented ownership. Condoprojects that have resort-type amenities such as restaurants, room service, maid service, central telephone or key systems, or sharefacilities with a hotel, Condo projects restricting owner's ability to occupy, Condo projects that do not contain full-sized kitchenappliances, Nonresidential use exceeding 25%, Pending litigation, Cooperative projects, Project with multi-dwelling units: A project inwhich an owner may hold a single deed evidencing ownership of more than one dwelling unit, Project with excessive commercial or nonresidential space, Tenancy-in Common apartment projectLimited Review:Primary Residence LTV 90% or belowSecond Home LTV 75% or belowInvestment Property LTV 75% or belowFull Review:All established projects not eligible for Limited Review. All manufactured housing projects require a Fannie Mae PERS Review or a FullReview. All new projects (see exceptions requiring PERS approval below).PERS Review:The standard PERS submission MUST be used for the following project types: New or newly converted condo projects consisting ofattached units in Florida, newly converted non-gut rehabilitation projects consisting of more than four attached units, and new condoprojects consisting of manufactured homes.Page 3 of 12

Product GuidelinesCONVENTIONAL CONFORMING HIGH BALANCE PROGRAMPROGRAM CODES: H15FCONF, H30FCONFVersion 3.7 – 09/07/21COLLATERAL, continuedCondo, continuedFlorida SpecificLimited Review:Primary Residence LTV 75% or belowSecond Home LTV 70% or belowMust be an established project and FNMA warrantable, Must be arm’s length transaction; no at-interest characteristics, Borrower doesnot live in immediate area or own property in immediate area (includes partial interest).Investment Property LTV 70% or belowFull Review:Primary Residence LTV 75.01% and above.Second Home LTV 70.01% and aboveInvestment Property LTV 70.01% and aboveFlorida new construction, projects constructed within the previous three (3) years and projects converted within the previous three (3)years are not eligible regardless of LTV and review type.Property ConditionMinor conditions and deferred maintenance are typically due to normal wear and tear from the aging process and the occupancy of theproperty. While such conditions generally do not rise to the level of a required repair, they must be reported. Examples of minorconditions and deferred maintenance include worn floor finishes or carpet, minor plumbing leaks, holes in window screens, or crackedwindow glass.Condition Ratings C1, C2, C3, C4, and C5 are eligible for delivery in “as is” condition. Properties with a Condition Rating of C6 areeligible for sale to Fannie Mae provided any deficiencies that impact the safety, soundness, or structural integrity of the property arerepaired prior to delivery of the loan.Ineligible PropertiesCo-ops, On-frame modular construction, Single wide manufactured homes, Boarding houses, Bed and Breakfast properties, propertiesthat are not suitable for year-round occupancy regardless

projects that have resort-type amenities such as restaurants, room service, maid service, central telephone or key systems, or share facilities with a hotel, Condo projects restricting owner's ability to occu