Product Overlay Matrix

Product Overlay Matrix Sun West Mortgage Company July 24, 2013 Version 5.07 SUN WEST IS ON THE RISE. COAST TO COAST. ACROSS THE NATION. Full Service Mortgage Bankers, offering a diverse range of home loan programs backed by FHA, VA, USDA, Fannie Mae and Freddie Mac. This information is provided to licensed Mortgage Loan Originating Entities only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice. Sun West Mortgage Company, Inc. (NMLS ID 3277) is licensed by the Department of Corporations as a California Finance Lender (License #603 0119) and is licensed by the Department of Real Estate (License #00793885). Refer to www.swmc.com to see where SWMC is a licensed lender. In all states, the principal licensed office of Sun West Mortgage Company, Inc. is 18303, Gridley Road in Cerritos, CA 90703; Phone: (800) 453 7884

Table of Contents CONVENTIONAL LOAN PROGRAMS... 1 FIXED LOAN PROGRAMS: SO22S00F00... 1 PROPERTY FLIP WAIVER: SO22O00F00... 3 ARM LOAN PROGRAMS: SM21S00A00... 5 FANNIE MAE DU REFI PLUS LOAN PROGRAM: SO22600F00... 7 FREDDIE MAC LP OPEN ACCESS: SO23S00F00... 8 HIGH BALANCE CONFORMING: SO33S00F00... 10 LPMI FIXED: SO50S00F00... 12 FIVE TO TEN FINANCED PROPERTIES CONFORMING: SUNCON0005... 14 FIVE TO TEN FINANCED PROPERTIES HIGH BALANCE: SUNCON0006... 16 GENERAL REQUIREMENTS... 18 Sun West Mortgage reserves the right to revise the locked price on loans which do not meet the attached guidelines. Please contact your account representative at (800) 453 7884 if you would like to request an exception to the attached guidelines.

CONVENTIONAL LOAN PROGRAMS Fixed Loan Programs: SO22S00F00 Loan Purpose Purchase Limited Cash Out Refinance Cash-Out Refinance * * Cash out Refinance is NOT allowed in the state of TX. Non-cash out refinance only acceptable in Texas when the refinance is of purchase money loan. Occupancy Owner-occupied Second Home (Only 1 Unit) Non-Owner Occupied (N/O/O) Eligible Minimum Credit Score and Maximum LTV/CLTV Allowed 1-4 Units * Condominiums PUDs * Loans on 3-4 unit properties will follow N/O/O guidelines. FICO Range Loan Purpose No. of Units Purchase Maximum LTV/CLTV Allowed Owner Occupied Second Home N/O/O 1 Unit 80.00% 80.00% 75.00% 2-4 Units 75.00% 70.00% 620-659 * 660 * or more Limited Cash Out Refinance Cash Out Refinance Purchase Limited Cash Out Refinance Cash Out Refinance 1 Unit 80.00% 80.00% 75.00% 2-4 Units 75.00% 65.00% 1 Unit 80.00% 75.00% 70.00% 2-4 Units 70.00% 65.00% 1 Unit 95.00% 80.00% 75.00% 2-4 Units 75.00% 70.00% 1 Unit 95.00% 80.00% 75.00% 2-4 Units 75.00% 70.00% 1 Unit 85.00% 75.00% 75.00% 2-4 Units 70.00% 65.00% * Documentation of existing housing payment is must for purchase transactions with FICO less than 680. Note: If a loan requires mortgage insurance, at least 2 FICO scores are required for all borrowers Additional FICO restrictions apply for borrowers with significant derogatory credit, see Bankruptcy, Foreclosures & significant derogatory credit section Maximum Loan Amount Located in Units Maximum Loan Amount* Subordinate Financing Approval 48 Contiguous States Alaska and Hawaii 1 $417,000 2 $533,850 3 $645,300 4 $801,950 1 $625,500 2 $800,775 3 $967,950 4 $1,202,925 *Maximum Loan Amount is the lesser of amount as per table above or Maximum County Limit (Click Here for County limits) Allowed DU only Maximum Front Ratio FICO Range Loan Purpose Owner Occupied Second Home N/O/O 620-659 Purchase 45.00% * 33.00% 33.00% Limited Cash Out Refinance 45.00% * 33.00% 33.00% Cash Out Refi. 33.00% 33.00% 33.00% 660 or more Purchase As per DU As per DU As per DU Limited Cash Out Refinance As per DU As per DU As per DU Cash Out Refi. 33.00% 33.00% 33.00% * If using a non-occupying co-borrower to qualify, then occupants max DTI is 43% 1

Maximum Back Ratio FICO Range Loan Purpose Owner Occupied Second Home N/O/O 620-659 Purchase 45.00% * 43.00% 43.00% Limited Cash Out Refinance 45.00% * 43.00% 43.00% Cash Out Refi. 43.00% 43.00% 43.00% 660 or more Purchase As per DU As per DU As per DU Limited Cash Out Refinance As per DU As per DU As per DU Cash Out Refi. 43.00% 43.00% 43.00 * If using a non-occupying co-borrower to qualify, then occupants max DTI is 43%. Property Flip Waiver Financed by borrower N/O/O Financed by Sun West Financed Sun West offers Property Flip Waiver as a separate product. Please Click Here to view Property Flip Waiver guidelines. O/O CLTV less than 80%: As per DU O/O CLTV greater than or equal to 80% and less than 90%: 3 (inclusive of subject) O/O CLTV greater than or equal to 90% and less than 95%: 2 (inclusive of subject) 1 (One) per borrower Per agency guidelines, maximum 10. Self Employed 6 months PITI reserves required Maximum LTV/CLTV: 80% Receipt of a minimum two- year self-employed income with business tax returns. Income Decrease of 10%-20%: Use most recent business tax year. Income Decrease beyond 20%: Not acceptable. Bankruptcy, Foreclosures & significant derogatory credit Mortgage Lates Collection Accounts As per AUS If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records, then the minimum FICO required is 680 or as per the above matrix, whichever is higher. None in last 24 months on any mortgage. Housing-expense related Collection accounts within 24 months NOT Allowed. Other Collections (including Medical) is subject to UW discretion on the file. PITI Reserves 6 months PITI reserves required for N/O/O, Second Home, Self Employed Borrowers Appraisal Must be ordered through SWMC * * Transfer of Appraisal is NOT allowed on conventional programs for wholesale loans. Appraiser's Condition and Quality of Construction Property Inspection Waivers Repair Escrow Holdback (Minor Repairs) Approved MI Companies Third Party Originations with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. with a condition rating of either C6 or Q6 are ineligible. AU Feedback permitting an appraisal waiver is acceptable for when the decision FICO score is at least 720 for limited cash out refinances and 760 for cash out refinances. Appraisal waivers are not accepted when any of the following conditions exist: o Refinance of a property purchased as a REO sale o Property located in a disaster area within last 12 months o Property listed for sale within last 12 months Eligible per DU Allowed upon exception. Home Inspection is required. Radian, UGIC, MGIC and Genworth 2

Property Flip Waiver: SO22O00F00 Loan Purpose Purchase Occupancy Owner-occupied Second Home (Only 1 Unit) Non-Owner Occupied (N/O/O) Amortization Term 30 Year Fixed Eligible 1-4 Units * Condominiums PUDs * Loans on 3-4 unit properties will follow N/O/O guidelines. Note: Manufactured homes are not allowed Minimum Credit Score and Maximum LTV/CLTV Allowed FICO Range Loan Purpose No. of Units 620-659 * Purchase Maximum LTV/CLTV Allowed Owner Occupied Second Home N/O/O 1 Unit 80.00% 80.00% 75.00% 2-4 Units 75.00% 70.00% 660 * or more Purchase 1 Unit 80.00% 80.00% 75.00% 2-4 Units 75.00% 70.00% * Documentation of existing housing payment is must for purchase transactions with FICO less than 680. Note: Additional FICO restrictions apply for borrowers with significant derogatory credit, see Bankruptcy, Foreclosures & significant derogatory credit section Maximum Loan Amount Located in Units Maximum Loan Amount* 1 $417,000 48 Contiguous States 2 $533,850 3 $645,300 4 $801,950 1 $625,500 Alaska and Hawaii 2 $800,775 3 $967,950 4 $1,202,925 *Maximum Loan Amount is the lesser of amount as per table above or Maximum County Limit (Click Here for County limits) Subordinate Financing Approval Allowed DU only Maximum Front Ratio FICO Range Loan Purpose Owner Occupied Second Home N/O/O 620-659 Purchase 45.00% * 33.00% 33.00% 660 or more Purchase As per DU As per DU As per DU * If using a non-occupying co-borrower to qualify, then occupants max DTI is 43%. Maximum Back Ratio FICO Range Loan Purpose Owner Occupied Second Home N/O/O 620-659 Purchase 45.00% * 43.00% 43.00% 660 or more Purchase As per DU As per DU As per DU * If using a non-occupying co-borrower to qualify, then occupants max DTI is 43%. Property Flip Waiver The transaction will be treated as a flip if the value has increased by 20% or more in six months from the original sales price due to improvements. Property flip transaction is allowed with following due diligence: 1. A Property Inspection Report, ordered by SWMC is required. If the borrower chose to obtain one, we can utilize the borrower s inspection report. All structural, health and safety issues must be cured and documented by a final inspection. 2. Prior transfers will be carefully reviewed to ensure the values of the transfers represent a benefit to the borrower. 3. The transfers should be arm's length with no identity-of-interest between the buyer and seller, including parties representing the principals to mitigate flipped sales to set false value trends. If the seller of the property is a corporation, the transaction is ineligible. 3

4. Increases in value must be properly documented as described below: Resale Percentage Increase Additional Valuation Documentation 20%-30% Desk Review 30.1%-50% Field Review Greater than 50% Second Appraisal* *A second appraisal must support the value of the original appraisal within a 5% tolerance. Financed by borrower N/O/O Financed by Sun West Financed O/O CLTV less than 80%: As per DU O/O CLTV greater than or equal to 80% and less than 90%: 3 (inclusive of subject) O/O CLTV greater than or equal to 90% and less than 95%: 2 (inclusive of subject) 1 (One) per borrower Per agency guidelines, maximum 10. Self Employed 6 months PITI reserves required Maximum LTV/CLTV: 80% Receipt of a minimum two- year self-employed income with business tax returns. Income Decrease of 10%-20%: Use most recent business tax year. Income Decrease beyond 20%: Not acceptable. Bankruptcy, Foreclosures & significant derogatory credit Mortgage Lates Collection Accounts As per AUS If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records, then the minimum FICO required is 680 or as per the above matrix, whichever is higher. None in last 24 months on any mortgage. Housing-expense related Collection accounts within 24 months NOT Allowed. Other Collections (including Medical) is subject to UW discretion on the file. PITI Reserves 6 months PITI reserves required for N/O/O, Second Home, Self Employed Borrowers Appraisal Must be ordered through SWMC * * Transfer of Appraisal is NOT allowed on conventional programs for wholesale loans. Appraiser's Condition and Quality of Construction Property Inspection Waivers Repair Escrow Holdback (Minor Repairs) Third Party Originations with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. with a condition rating of either C6 or Q6 are ineligible. 4

ARM Loan Programs: SM21S00A00 Loan Purpose Purchase Limited Cash Out Refinance Cash-Out Refinance * * Cash out Refinance is NOT allowed in the state of TX. Non-cash out refinance only acceptable in Texas when the refinance is of purchase money loan. Occupancy Owner-occupied Eligible Minimum Credit Score and Maximum LTV/CLTV Allowed 1-2 Units Condominiums PUDs Loan Purpose Minimum FICO Maximum LTV Maximum CLTV Purchase 660 1 80.00% NA Limited Cash Out Refinance 660 1 80.00% NA Cash Out Refinance 680 65.00% NA 1 Documentation of existing housing payment is must for purchase transactions with FICO less than 680. Note: Additional FICO restrictions apply for borrowers with significant derogatory credit, see Bankruptcy, Foreclosures & significant derogatory credit section Maximum Loan Amount Located in Units Maximum Loan Amount* 48 Contiguous States Alaska and Hawaii 1 $417,000 2 $533,850 1 $625,500 2 $800,775 *Maximum Loan Amount is the lesser of amount as per table above or Maximum County Limit (Click Here for County limits) Subordinate Financing Approval Maximum Debt to Income Ratios Financed by borrower AUS only 43.00%/43.00% 2 (inclusive of subject) Self Employed 6 months PITI reserves required Maximum LTV/CLTV: 80% Receipt of a minimum two- year self-employed income with business tax returns. Income Decrease of 10%-20%: Use most recent business tax year. Income Decrease beyond 20%: Not acceptable. Bankruptcy, Foreclosures & significant derogatory credit Mortgage Lates Collection Accounts As per AUS If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records, then the minimum FICO required is 680 or as per the above matrix, whichever is higher. None in last 24 months on any mortgage. Housing-expense related Collection accounts within 24 months NOT Allowed. Other Collections (including Medical) is subject to UW discretion on the file. Appraisal Must be ordered through SWMC * * Transfer of Appraisal is NOT allowed on conventional programs for wholesale loans. Appraiser's Condition and Quality of Construction Property Inspection Waivers Repair Escrow Holdback (Minor Repairs) with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. with a condition rating of either C6 or Q6 are ineligible. AU Feedback permitting an appraisal waiver is acceptable for when the decision FICO score is at least 720 for limited cash out refinances and 760 for cash out refinances. Appraisal waivers are not accepted when any of the following conditions exist: o Refinance of a property purchased as a REO sale o Property located in a disaster area within last 12 months o Property listed for sale within last 12 months 5

Third Party Originations 6

Fannie Mae DU Refi Plus Loan Program: SO22600F00 Loan Purpose Limited Cash Out Refinance Occupancy Owner-occupied Investment Eligible Minimum Credit Score 1-2 Units Condominiums PUDs LTV Owner Occupied Minimum FICO Investment Less than or equal to 80% 660 680 Greater than 80% 720 720 Maximum LTV/ CLTV Allowed Mortgage Insurance Maximum Loan Amount As per DU Loans requiring mortgage insurance (including transfers and modifications) are NOT eligible. Located in Units Maximum Loan Amount* 48 Contiguous States 1 $417,000 2 $533,850 Alaska and Hawaii 1 $625,500 2 $800,775 *Maximum Loan Amount is the lesser of amount as per table above or Maximum County Limit (Click Here for County limits) Eligible Loans The loan being refinanced must have been purchased or securitized by Fannie Mae prior to June 1, 2009 Subordinate Financing Approval Maximum Debt to Income Ratios Borrower Benefit Financed Bankruptcy, Foreclosures Mortgage Lates Collection Accounts PITI Reserves Existing subordinate must be re-subordinated. New financing, including Hardest Hit Funds, are ineligible. DU Approve/Eligible only. Expanded approvals are not accepted. 45.00% / 45.00% for Owner Occupied 43.00% / 43.00% for Investment Borrower must demonstrate a benefit by a reduction monthly mortgage principal and interest payment, interest rate or amortization terms or moving to a more stable mortgage product. Per agency guidelines, maximum 10. As per AUS None in last 24 months on any mortgage. Housing-expense related Collection accounts within 24 months NOT Allowed. Other Collections (including Medical) is subject to UW discretion on the file. 3 Months PITI reserves required for Owner Occupied 6 Months PITI reserves required for Investment Appraisal Must be ordered through SWMC, if required * * Transfer of Appraisal is NOT allowed on conventional programs for wholesale loans. Appraiser's Condition and Quality of Construction Property Fieldwork Waivers Repair Escrow Holdback (Minor Repairs) with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. with a condition rating of either C6 or Q6 are ineligible. Eligible per DU when final submissions result in fieldwork waiver that does not exceed four months from note date. $75.00 fee charge. Fieldwork waiver is ineligible when any of the following conditions exist: o Refinance of a property purchased as a REO sale o Property located in a disaster area within last 12 months o Property listed for sale within last 12 months Sun West may require additional supporting documentation when using a fieldwork waiver. Texas Refinance of Texas properties are not allowed. Third Party Originations 7

Freddie Mac LP Open Access: SO23S00F00 Loan Purpose Occupancy Refinanced Mortgage Eligibility Requirements Amortization Term Eligible Limited Cash Out Refinance Owner-occupied First Lien Conventional Mortgage Currently owned or securitized FHLMC FHLMC Settlement date on or before 05/31/2009 Must be seasoned for at least 3 months 30 Year Fixed 1-2 Units Condominiums PUDs Minimum Credit Score LTV Minimum FICO Less than or equal to 80% 660 Greater than 80% but Less than or equal to 90% 720 Greater than 90% but less than or equal to 100% 740 Greater than 100% but less than or equal to 105% 780 Note: Additional FICO restrictions apply for borrowers with significant derogatory credit, see Bankruptcy, Foreclosures & significant derogatory credit section Maximum LTV/CLTV Allowed Mortgage Insurance 105% Loans requiring mortgage insurance are NOT eligible. Maximum Loan Amount Located in Units Maximum Loan Amount* 48 Contiguous States Alaska and Hawaii 1 $417,000 2 $533,850 1 $625,500 2 $800,775 *Maximum Loan Amount is the lesser of amount as per table above or Maximum County Limit (Click Here for County limits) Subordinate Financing Approval Maximum Debt to Income Ratios Financed by borrower Self Employed Bankruptcy, Foreclosures & significant derogatory credit Mortgage Lates Collection Accounts LP only As per LP 2 (inclusive of subject) Allowed As per AUS If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records, then the minimum FICO required is 680 or as per the above matrix, whichever is higher. None in last 24 months on any mortgage. Housing-expense related Collection accounts within 24 months NOT Allowed. Other Collections (including Medical) is subject to UW discretion on the file. PITI Reserves 6 months PITI reserves required for N/O/O, Second Home, Self Employed Borrowers Appraisal Must be ordered through SWMC, if required * Transfer of Appraisal is NOT allowed on conventional programs for wholesale loans. Lesser of the Home Value Explorer (HVE) value or appraised value must be used to determine the property value when an HVE value is eligible within Open Access guidelines. Appraiser's Condition and Quality of Construction with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. with a condition rating of either C6 or Q6 are ineligible. 8

Repair Escrow Holdback (Minor Repairs) Texas Third Party Originations Refinance of Texas properties are not allowed. 9

High Balance Conforming: SO33S00F00 Loan Purpose Purchase Occupancy Eligible Minimum Credit Score and Maximum LTV/CLTV Allowed Limited Cash Out Refinance Cash-Out Refinance * * Cash Out Refinance is NOT allowed in the state of TX. Non-cash out refinance only acceptable in Texas when the refinance is of purchase money loan. Owner-occupied 1-2 Units Condominiums PUDs Loan Type Purchase Property Type No. of Units Minimum FICO Maximum LTV Maximum CLTV 1 Unit, Condos, PUDs 700 80.00% NA 2 Units 740 75.00% NA Limited Cash Out Refinance Cash Out Refinance 1 Unit, Condos, PUDs 700 80.00% NA 2 Units 740 75.00% NA 1 Unit, Condos, PUDs 740 60.00% NA 2 Units 740 60.00% NA Maximum Loan Amount Minimum Loan Amount Subordinate Financing Approval Maximum Debt to Income Ratios Financed by borrower Only certain loan amounts in certain geographic areas are eligible for this program. Click Here to determine geographic eligibility and maximum loan amount. Located in Units Minimum Loan Amount* 48 Contiguous States Alaska and Hawaii 1 $417,000 2 $533,850 1 $625,500 2 $800,775 *Minimum Loan Amount is the lesser of amount as per table above or Maximum County Limit (Click Here for County limits) AUS only 43.00%/43.00% 2 (inclusive of subject) Self Employed 6 months PITI reserves required Maximum LTV/CLTV: 80% Receipt of a minimum two- year self-employed income with business tax returns. Income Decrease of 10%-20%: Use most recent business tax year. Income Decrease beyond 20%: Not acceptable. Bankruptcy, Foreclosures Mortgage Lates Collection Accounts As per AUS None in last 24 months on any mortgage. Housing-expense related Collection accounts within 24 months NOT Allowed. Other Collections (including Medical) is subject to UW discretion on the file. Appraisal Must be ordered through SWMC * A full appraisal is required regardless of AUS findings A One-Unit Residential Appraisal Field Review Report (Form 2000) is required if: o The loan amount is greater than $625,500 and the LTV, CLTV, or HCLTV is greater than 80%; or o The property is valued at $1,000,000 or more and the LTV, CLTV, or HCLTV is greater than 75%. If the Field Review results in a different opinion of value than the appraisal, the lowest of the original appraised value, the Field Review value, or the sales price (for purchases) should be used to calculate the LTV ratios. For properties in attached condo projects, the appraisal must contain two comparable sales from projects outside of the subject s project in addition to the current comparable sale requirements. * Transfer of Appraisal is NOT allowed on conventional programs. Appraiser's Condition and Quality of Construction with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. with a condition rating of either C6 or Q6 are ineligible. 10

Repair Escrow Holdback (Minor Repairs) Third Party Originations 11

LPMI Fixed: SO50S00F00 Loan Purpose Purchase Limited Cash Out Refinance Occupancy Eligible Minimum Credit Score and Maximum LTV/CLTV Allowed Owner-occupied 1-2 Units Condominiums (Condos in Nevada or Florida are not acceptable) PUDs FICO Range Loan Purpose No. of Units 680 or more Purchase Limited Cash Out Refinance Owner Occupied Maximum LTV/CLTV Allowed Second Home N/O/O 1 Unit 95.00% 2 Units 1 Unit 95.00% 2 Units At least 2 FICO scores are required for all borrowers Additional FICO restrictions apply for borrowers with significant derogatory credit, see Bankruptcy, Foreclosures & significant derogatory credit section Maximum Loan Amount Located in Units Maximum Loan Amount* 48 Contiguous States Alaska and Hawaii 1 $417,000 2 $533,850 1 $625,500 2 $800,775 *Maximum Loan Amount is the lesser of amount as per table above or Maximum County Limit (Click Here for County limits) Subordinate Financing Approval Maximum Debt to Income Ratios Financed by borrower N/O/O Financed by Sun West Allowed DU only As per AUS O/O CLTV greater than or equal to 80% and less than 90%: 3 (inclusive of subject) O/O CLTV greater than or equal to 90% and less than 95%: 2 (inclusive of subject) 1 per borrower Self Employed 6 months PITI reserves required Maximum LTV/CLTV: 80% Receipt of a minimum two- year self-employed income with business tax returns. Income Decrease of 10%-20%: Use most recent business tax year. Income Decrease beyond 20%: Not acceptable. Gifts Bankruptcy, Foreclosures & significant derogatory credit Mortgage Lates Collection Accounts PITI Reserves Not allowed unless borrower s investment is 5% or more of own funds As per AUS If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records, then the minimum FICO required is 680 or as per the above matrix, whichever is higher. None in last 24 months on any mortgage. Housing-expense related Collection accounts within 24 months NOT Allowed. Other Collections (including Medical) is subject to UW discretion on the file. 6 months PITI reserves required for Self Employed Borrowers Appraisal Must be ordered through SWMC * A full appraisal is required regardless of AUS findings * Transfer of Appraisal is NOT allowed on conventional programs for wholesale loans. Appraiser's Condition and Quality of Construction with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. with a condition rating of either C6 or Q6 are ineligible. 12

Property Inspection Waivers Repair Escrow Holdback (Minor Repairs) Third Party Originations AU Feedback permitting an appraisal waiver is acceptable for when the decision FICO score is at least 720 for limited cash out refinances and 760 for cash out refinances. Appraisal waivers are not accepted when any of the following conditions exist: o Refinance of a property purchased as a REO sale o Property located in a disaster area within last 12 months o Property listed for sale within last 12 months Allowed upon exception. Home Inspection is required. 13

Five to Ten Financed Conforming: SUNCON0005 Loan Purpose Purchase Limited Cash Out Refinance Cash-Out Refinance* * Only if within 6 months of purchase and all delayed financing exception requirements as per Fannie Mae Seller Guide (click here) are met Note: Excludes DU Refi Plus and Refi Plus Mortgage Occupancy Owner-occupied Second Home (only 1 Unit) Non-Owner Occupied (N/O/O) Amortization Term Eligible Minimum Credit Score LTV/CLTV/HCLTV Fixed 1-4 Units* Condominiums PUDs *Loans on 3-4 unit properties will follow N/O/O guidelines Owner-occupied : 720 Second Home and Non-Owner Occupied (N/O/O): 740 Occupancy Transaction Type No. of Units Maximum LTV / CLTV / HCLTV Allowed Owner-occupied Second Home (only 1 unit) and Non- Owner Occupied Purchase and Limited Cash-Out Refinance Cash-Out Refinance Purchase and Limited Cash-Out Refinance Cash-Out Refinance 1 Unit 80% 2-4 Units 75% 1 Unit 80% 2-4 Units 70% 1 Unit 70% 2-4 Units 65% 1 Unit 65% 2-4 Units 60% Maximum Loan Amount Located in Units Maximum Loan Amount* 1 $417,000 48 Contiguous States 2 $533,850 3 $645,300 4 $801,950 1 $625,500 Alaska and Hawaii 2 $800,775 3 $967,950 4 $1,202,925 *Maximum Loan Amount is the lesser of amount as per table above or Maximum County Limit (Click Here for County limits) Subordinate Financing Approval Maximum Front Ratio Maximum Back Ratio Financed by borrower Financed by Sun West Self Employed DU only As per DU As per DU 10 (including borrower s principal residence) 2 6 months PITI reserves required Maximum LTV/CLTV: lesser of 80% or as per matrix above Receipt of a minimum two- year self-employed income with business tax returns. Income Decrease of 10%-20%: Use most recent business tax year. Income Decrease beyond 20%: Not acceptable. 14

Bankruptcy or Foreclosures Mortgage Lates Collection Accounts None in the past 7 years None in the last 12 months Housing-expense related Collection accounts within 24 months NOT Allowed. Other Collections (including Medical) is subject to UW discretion on the file. PITI Reserves As per DU for loan casefiles submitted to DU plus Additional 6 months reserves for each second home or investment property Appraisal Appraiser's Condition and Quality of Construction Repair Escrow Holdback (Minor Repairs) Third Party Originations Must be ordered through SWMC* *Transfer of Appraisal is NOT allowed with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. with a condition rating of either C6 or Q6 are ineligible. Allowed upon exception. Home Inspection is required. Rental Income Proposed rental income from subject may not be used for qualifying on purchase transactions. Rental income may only be considered in qualifying income when a borrower documents two years receipt of rental income as documented by the borrower s U.S. Tax Returns. Tax Returns A completed and signed IRS Form 4506-T is required for every borrower on the loan application. Tax transcripts validated from the IRS are required prior to closing for each year documented in the loan file. considered in the to five to ten limitation Subject to limiation: Joint ownership of residential real estate Financing/mortgage held in the name of the borrower but property held in the name of another person and/or corporation Joint or total ownership of a property held in the name of a limited liability corporation or partnership Ownership of a manufactured home and the land on which it s situated that is titled as real property Not subject to limitation: Ownership of commercial real estate, including multifamily properties consisting of more than 4 dwelling units Ownership of a timeshare Ownership of a vacant lot 15

Five to Ten Financed High Balance: SUNCON0006 Loan Purpose Purchase Limited Cash Out Refinance Occupancy Owner-occupied Second Home (only 1 Unit) Non-Owner Occupied (N/O/O) Amortization Term Eligible Minimum Credit Score and Maximum LTV/CLTV/HCLTV Allowed Fixed 1-2 Units Condominiums PUDs Occupancy Minimum Credit Score Maximum LTV / CLTV / HCLTV Allowed Owner-occupied 720 75% Second Home (only 1 unit) and Non-Owner Occupied 740 60% Maximum Loan Amount Minimum Loan Amount Only certain loan amounts in certain geographic areas are eligible for this program. Click Here to determine geographic eligibility and maximum loan amount. Located in Units Minimum Loan Amount* 48 Contiguous States Alaska and Hawaii 1 $417,000 2 $533,850 1 $625,500 2 $800,775 *Minimum Loan Amount is the lesser of amount as per table above or Maximum County Limit (Click Here for County limits) Subordinate Financing Approval Maximum Debt to Income Ratios Financed by borrower Financed by Sun West Self Employed Bankruptcy or Foreclosures Mortgage Lates Collection Accounts DU only 43.00%/43.00% 10 (including borrower s principal residence) 2 6 months PITI reserves required Maximum LTV/CLTV: lesser of 80% or as per matrix above Receipt of a minimum two- year self-employed income with business tax returns. Income Decrease of 10%-20%: Use most recent business tax year. Income Decrease beyond 20%: Not acceptable. None in the past 7 years None in the last 12 months Housing-expense related Collection accounts within 24 months NOT Allowed. Other Collections (including Medical) is subject to UW discretion on the file. PITI Reserves As per DU for loan casefiles submitted to DU plus Additional 6 months reserves for each second home or investment property Appraisal Appraiser's Condition and Quality of Construction Repair Escrow Holdback (Minor Repairs) Must be ordered through SWMC* *Transfer of Appraisal is NOT allowed with a condition rating of C5: As is condition is not acceptable unless deficiencies that caused the rating and/or hypothetical condition are completed prior to closing. with a condition rating of either C6 or Q6 are ineligible. Allowed upon exception. Home Inspection is required. 16

Third Party Originations Rental Income Proposed rental income from subject may not be used for qualifying on purchase transactions. Rental income may only be considered in qualifying income when a borrower documents two years receipt of rental income as documented by the borrower s U.S. Tax Returns. Tax Returns A completed and signed IRS Form 4506-T is required for every borrower on the loan application. Tax transcripts validated from the IRS are required prior to closing for each year documented in the loan file. considered in the to five to ten limitation Subject to limitation: Joint ownership of residential real estate Financing/mortgage held in the name of the borrower but property held in the name of another person and/or corporation Joint or total ownership of a property held in the name of a limited liability corporation or partnership Ownership of a manufactured home and the land on which it s situated that is titled as real property Not subject to limitation: Ownership of commercial real estate, including multifamily properties consisting of more than 4 dwelling units Ownership of a timeshare Ownership of a vacant lot 17

GENERAL REQUIREMENTS Income Stability Effective monthly income is the borrower s verified gross monthly income from all acceptable and verificable sources that can reasonably expected to continue for at least the next three years and deemed to stable. The determination that income can reasonably be expected to continue must be based on the borrower s occupation, tenure, past employment history and probability of consistent income receipt. Unreimbursed Employee Expenses Out-of-pocket, unreimbursed business expenses, reported on IRS Form 2106, must be deducted from the borrower s income. Note: Automated underwriting systems may not recognize negative other income so the effective income should be reduced by the average unreimbursed employee expenses. Projected income/employment offers Self-employed income Projected income, employment offers or contracts are not acceptable to be used effective income. Regardless of Automated Underwriting Findings, when self-employed income is used to qualify, the following documentation is required and will be considered for qualifying income: Most recent two years individual federal tax returns (IRS Form 1040) with all schedules and W-2 s and K-1 s Most recent two years business tax returns (IRS Forms 1120, 1120S, 1065) in which the borrower has ownership interest of 25% or more as reflected in the borrower s K-1 s. A cash-flow analysis must be completed for any business(es) all in order to determine the adjusted income (or loss), even if the income used to qualify is not from the partnership, corporation or S-corporation. It may be necessary to obtain additional years tax returns when the borrower s selfemployment income fluctuates in order to determine the stability of the income and Income decreases beyond 20% are not acceptable for qualification purposes Income decreased 10%-20% require the use of the most recent business year YTD Profit and Loss Statement and Balance Sheet may be required. Amended Tax Returns Validation of Tax Returns Borrowers who recently have amended tax returns are ineligible. Minor amendments that do not affect the income (or loss) are acceptable. A complete and signed IRS Form 4506-T is required for every borrower on the loan application. Tax transcripts validated from the IRS are required for each year documented in the loan file. If the tax transcript of the return cannot be obtained due to the recent filing of the return by the borrower, the income may be used as documented below: Professionally prepared: letter from the paid preparer must be provided to evidence that the return provided for the mortgage transaction match what was filed with the IRS. Borrower signed and dated tax returns may be used in lieu of transcripts Self-prepared : the return cannot be used for qualification purposes If the borrower has not filed their return for the most recent year, then a copy of IRS Form 4868 is required in order to use the return for the previous year until October 15 th. Note: For retired borrowers or borrower who are not required to file tax returns, transcripts showing no results or equivalent are required. Verbal Verification of Employment (VOE) A verbal verification of employment, or its equivalent, is required for all borrowers with an active employment. For non-credit qualifying refinance transaction all borrowers must have an active source of employment confirmed by a VOE. If a VOE is not obtained for any borrower, income documentation must be submitted in order to develop an ability to repay analysis. Non-occupying coborrowers Unacceptable Asset/Reserves Accounts Income from non-occupying co-borrowers is not acceptable for 2-4 unit properties. Occupying borrowers must reasonably be able to maintain mortgage without the use of the non-occupying co-borrower Funds that have not been vested; Funds that cannot be withdrawn under circumstances other than the account owner s retirement, employment termination, or death; Stock held in an unlisted corporation; Stock options and non-vested restricted stock; Personal unsecured loans; Cash proceeds from a cash-out refinance transaction. Contributions by any interested party Notes: For any retirement accounts (401(k), IRA, Keogh etc.) the borrower must have documented unrestricted access in order to qualify for reserves. All funds required to close must be documented and fully sourced. 18

Business Assets Borrower s business assets may be used to qualify with a CPA letter confirming the borrower has access to withdrawal the funds and the withdrawal will not have a detrimental effect on the business. The CPA may not be related to the borrower or have an interested parted in the transactions. Departure Residence Policy for a property within a reasonable commuting distance to the new subject property In addition, the following requirements must be met when using business assets for funds to close or reserves: Use of a borrower s business assets requires a minimum of six months reserves. The borrower(s) must own the business 100%. A cash flow analysis of the business tax returns and a review of the detailed transaction history in the monthly bank statement(s) must support that use of business assets will not negatively impact the business. The average annual cash flow must be greater than the business assets to be withdrawn and/or used for reserves. For a Partnership, S-Corporation or Corporation, cash on hand as per company year-end balance sheet for each of the previous three years is greater than the amount to be withdrawn/reserves, as shown on Schedule L, line 1 of the business tax returns. Two years of tax returns will show three years of cash on hand. In addition to any existing government, agency or automated underwriting and lending requirements, if a current primary residence (departure residence) will be retained by the borrower, including pending sales that will not be sold (closed) prior to or at the closing date of the new primary residence, the new residence will be treated as a second home or investment property. As determined by an SWMC ordered AVM or full appraisal dated within 60 days of note date, the borrower must have no less than 15% equity in the departing property to be eligible for new financing. Both the current and proposed payments must be used to qualify the borrower. The use as a second home must be reasonable; otherwise it will be treated as an investment property. Previous buy and bail and strategic foreclosures Refinance of a loan debt included in bankruptcy or insolvency proceedings. Express eligible transactions are eligible for a borrower with less than 15% equity in the departing residence with the following requirements Departing residence must not be an FHA-insured mortgage Occupancy in the new subject property must be reasonable and meet the following requirements: o Must qualify with the entire PITIA payment o Must document an executed rental agreement with proof of deposit of rental security deposit o Must demonstrate motivation for new residence, such as: Increase in family size Vacating a jointly-owned property Documented medical condition Departing residence must not be in the process or short-refinance or short-sale Borrowers who have previously completed a buy and bail or any other type of strategic foreclosures are ineligible for any financing. For loans which involve a refinance of a loan debt included in bankruptcy or insolvency proceedings, the loan debt must be properly reaffirmed, to the extent required under the applicable state law and United State Bankruptcy Code, during the proceedings by Documented evidence that the mortgage was reaffirmed when papers were filed, OR A separate executed affirmation agreement with the bankruptcy court Note: A credit report is not a reliable method of confirming a debt has been reaffirmed. Credit Reports/ Undisclosed Debts All credit reports must be dated within 45 days at time of closing. In order for Sun West to import the credit report into AUS, the user name and password to reissue the credit report must be provided at time of submission. Note: For loans delivered as closed transactions, please refer to the Sun West Selling guide. Credit supplements Appraisal Validity Periods UCDP Requirements Sun West will not accept credit supplements to document the removal of disputed debt and derogatory credit information from the credit report. A new credit report would be required. Four Months Note: Fluctuating market conditions may dictate the use of a shorter period or ineligibility of appraisal update reports. All conventional loans must be accompanied by a successful submission summary report (SSR) from both Freddie Mac and Fannie Mae. Note: For loans in which Sun West has ordered the appraisal report, this condition will not apply 19

Unacceptable properties Excess Land/Acreage or additional parcels Rent Loss Insurance Automated Valuation Model (AVM) Title vesting requirements Power of attorney Multi-family residences (5 or more units), Cooperatives, working farms, mobile homes, Timeshares, Unusual/unique properties, Condominium-hotels or condominium projects with hotel-type characteristics, such as but not limited to: a registration desk, short-term occupancy, bellman, concierge, food service, maid service, or centralized utilities such as telephone or tv. Condominium projects with rental programs, such as rental pooling or revenue sharing agreements, either mandatory or voluntary. Condominium projects containing multi-dwelling units or houseboats. A condominium with any type of pending litigation with respect to safety, structural soundness, or habitability of the property or that adversely affects the financial solvency of the HOA. with legal non-conforming zoning compliance that cannot be rebuilt as is or with illegal zoning compliance. zoned agricultural but located in a rural area (This does not include properties zoned "Residential-Agricultural" that meet all other property requirements). zoned EFU (Exclusive Farm Use), which requires an income-producing subject. with empty pools (must be filled with water or dirt and photos required). with pools must not have the pools located less than three feet from the structure or a distance that is unacceptable to county code. Below ground oil tanks that are not in use Located in areas of environmental contamination. Windows with bars without the safety releases in rooms without a secondary exit. Doors leading out on the second story with an incomplete deck, without meeting county code requirements currently listed for sale or which have been listed for sale within the last 6 months prior to the loan application and the transaction is for a refinance. that have more than one parcel and the additional parcel could be subdivided and built upon. Deed restricted properties subject to inclusionary zoning or where an enabling authority or jurisdiction retains a right of first refusal or resale controls. located in lava hazard zones 1 or 2 located in Coastal Barrier Resource System Dwellings constructed with Chinese made drywall Excess land and/or additional parcels may not be included in the valuation of mortgage. Excess land is generally considered over 5 acres. Rent loss insurance is required when rental income from the subject property is used to qualify for 2-4 unit owner-occupied property or non-owner occupied for 6 months rent loss or loss of use coverage. Acceptable AVM vendors are RELS, Corelogic and Interthinx, when required per program requirements. All borrowers must be vested on title; exception is allowed for properties held in the borrower s trust. Non-borrowing vested individuals who are not the spouse or civil union/domestic partner of the borrower are not acceptable. Refinance transactions involving properties being removed from a trust, business or removal of a borrower must be done prior to the closing of the loan. Non-borrowing spouses or civil unions/domestic partnerships must be correctly reflected on the loan documents in compliance with state statues. When a power of attorney is used, a fully executed POA must be provided to Sun West and must also be approved by Sun West prior to the closing of the loan. Loan documents signed without an approved POA will not be accepted. When using a Power of Attorney, the following guidelines apply: Letter of explanation must be provided for the use of the POA. The POA must be complete and fully executed. The POA must be Specific or Special that grants the attorney-in-fact to enter into a real estate mortgage transaction on behalf of the borrower and mortgage the subject property. Durable or General POA are not acceptable, except in states that require a statutory form or that prohibit the refusal of a Durable of General POA. POA is not unenforceable or illegal. POA must be revocable. POA document must be in effect at the time of loan application. If the POA expires, we must ensure that the loan will be able to fund prior to the expiration date. POA must be notarized. POA must be recorded concurrently with the security instrument/mortgage. POA must be acceptable and insurable by the title company issuing the title policy, and therefore, the title company must provide approval for the use of the POA and indicate that the final title policy will not have any exceptions for the use of the POA. For a refinance transaction, Sun West will need a specific power of attorney. This POA should specifically state the terms of the refinance transaction, i.e. POA should include the Lenders Name; Loan Amount; Interest Rate and Term. The documents (including disclosures) can be signed by the POA only AFTER the POA is executed. The only exception is if we have a generic or general POA in effect and then the title company is simply requiring a more specific POA to be done at closing. o Please note that some POAs are not valid or do not go into effect until the principal becomes mentally and/or physically disabled. Thus, if the principal is still mentally competent, the POA may not be valid. o If the principal is mentally incompetent, the POA must be durable and specifically designed to survive incapacity and avoid the need for court proceedings. This means that the designated POA can sign and act on behalf of the principal if and when the borrower becomes disabled or incapacitated. o Reviewed evidence from a physician (opinion letter, etc.) that the borrower was, in fact, competent at the time the POA was executed whenever a power of 20

o o attorney is used for a mentally incompetent borrower. An attorney, notary, or other witness is not acceptable to verify competency within the POA itself. In the instance in which you have a POA acting on behalf of an incompetent borrower and the POA wants to take the incompetent borrower off the title to the property or deed it from the borrower to themselves, you may need to obtain court approval in order to allow this to happen as some title companies will not allow this to occur, especially if the POA is doing so in a self-serving manner. Sometimes instead of a POA, there will be a guardian or court appointed conservator that has been assigned to the borrower. If that is the case, then we must be provided with the complete copy of the guardianship/conservatorship papers and the court must approve moving forward with the reverse mortgage transaction. Exception: For delegated loans, a POA does not need to be approved prior to closing. Note: For FHA loans, the initial loan application may not be executed by a Power of attorney except for military personnel and incapacitated borrowers [4155.1 1.B.1.a]. Revocable Trust Trusts must be meet all state, federal and agency lending regulations. Trust must be revocable trust; irrevocable trust are not acceptable, in other words, if the home is taken out of the trust at some point, the borrower must be able to retain title to the home. A property may only be held in the name of an inter vivos also known as a living trust, which is effective during the Settlor s lifetime. In general, a living trust is created during the lifetime of a person (as opposed to a testamentary trust which is created by the person s will after his/her death). The trustee must have the power to borrow money, purchase, construct, and mortgage or encumber real property. This must be written into the trust as a trustee power. The subject property must be an asset of the trust or the power is granted to add additional property to the trust if the subject property is not already listed as an asset. A trustee cannot sign any of the loan documents on behalf of the borrower, only along with the borrower. Only a power of attorney or court appointed guardian can sign documents on behalf of the homeowner/borrower. The trustee only signs the security instruments on behalf of the trust. The trust must have been created in the same jurisdiction of the subject property or meet the laws of the state in which the property is located. For example, if the trust was originally written in State X, but the mortgage borrower has since moved to State Y, an attorney opinion letter is required to verify that the trust that was created under the state laws of State X is legally binding and fully enforceable in State Y (where the subject property is located). The trust needs to be properly executed per state law. Some states require a notary or 2 witnesses in order to be considered legally valid. We do not accept unsigned or conformed copies. A fully executed copy is required. We must have a complete or entire copy of the trust including ALL pages, articles and amendments. With prior approval, Sun West may accept a fully executed trust cert in lieu of a full trust if all of our trust requirements items can be verified by the certification provided and if we are also provided with an attorney opinion letter that clearly indicates that per the local state law we can rely solely on a trust cert for loan purposes in lieu of a complete trust. When a loan is vested in the name of the trust, the vesting must include the complete trust name including the trust creation date. This complete trust vesting name including creation date must be on DOT and signature lines. If the trust is amended and restated, the vesting will also need to include the verbiage as amended and restated on and the date in addition to the original trust creation date. Title and Tile Insurance Requirements The title insurance policy must provide full title protection (trust approval) without listing any exceptions with respect to the trust or has issued a trust endorsement. The title company must document their approval for the use of the trust. The title insurance policy state that title to the security property is vested in the trustee(s) of the inter vivos revocable trust. Title to the security property is vested solely in the trustee(s) of the inter vivos revocable trust, jointly in the trustee(s) of the inter vivos revocable trust and in the name(s) of the individual borrower(s), or in the trustee(s) of more than one inter vivos revocable trust. Title held in the trust does not diminish the lender s rights as a creditor, including the right to have full title to the property vested in the lender should foreclosure proceedings have to be initiated to cure a default under the terms of the mortgage. 21