Investor Loan number(required): Companyname:

Borrowername:Contact for thisfile:

Subject propertyaddress:Phonenumber:

Faxnumber:

Emailaddress:

Thefollowingchecklistisdesignedasareferencetoolonlytohighlightcriticaldocumentationrequirementsneeded to underwrite a Silver Medal Non-Conforming Loan.

Note:

  • Thischecklistdoesnotincludeeverydocumentrequired;requireddocumentsvarybytransaction.Usingthechecklist does not ensure Loanapproval.

CreditPackage:ProvideacompleteCreditPackage.FollowstandardAgencyguidelinesifasubjectisnot addressedinSellerGuide.Thislistisnotintendedtobeall-inclusive.

Complete Fannie Mae 1008/TransmittalSummary

Complete Loan Application(1003)

Loan Submission Summary Form 1 (LSS) in the SellerGuide

Cover letter addressing the 5 C’s (Cash/capital, capacity, credit, character andcollateral) and 2 K’s (Know the borrower, and know and understand the transaction.)

Credit report/ credit requirements

Credit reports:

Investor underwrites Non-ConformingLoans based off credit reports/Loan Scores obtained from either CoreLogicCredcoor Equifax. IfaCoreLogicCredcoorEquifaxcreditreportisnotprovidedintheCreditPackage,Investor willpull a new credit report for use in underwriting the Loanfile.

Credit requirements:

LoanScoreis the selectedcreditscoreoftheborrowerwiththehighestincomeandvalidcreditscore.Refer to Section 825.00 and Section 825.08(b) of the Seller Guide for complete credit and Loan Score requirements. Loan Score minimumrequirements:

  • 700 for transactions that meet all of thefollowing:

Primary residence or secondhome

Purchase or rate/termrefinance

Fixed rateproduct

  • 740 for investment propertytransactions
  • 720 for all othertransactions

Borrowermeetssufficientcreditrequirements.Insufficientcreditisdefined as any of thefollowing:

  • Fewer than threetradelines
  • No tradeline with activity in the most recent 12months
  • No tradeline with at least a 24-monthhistory

Obtainaletterofexplanationfromtheborrowerregardingallinquiriesthatoccurredwithinthelastsixmonths. If any new debt was opened, verify the credit report includes thedetails.

CreditreportswithFACTAAlerts:ProvideInvestor’sFACTA Alert Validation(Form16)orsufficientevidencethealertwas cleared in accordance with the Fair Credit Reporting Actrequirements.

Obtain a letter of explanation from the borrower regarding any adversecredit.

Charge offs:

  • Individual, paid or unpaid account that was charged-off within two years of the application date for an amount greater than $500 is not allowed.
  • Individual, unpaid account that was charged-off more than two years from the application date for an amount greater than $500 is not allowed.

Bankruptcy,foreclosure,deed-in-lieu,shortsale,repossession, andLoanmodification:RefertoSection825.08(b) of the Seller Guide for additional requirements andlimitations.

Collections, judgments, judgment liens, and non-real estate settled-for-less: Refer to Section 825.08(b) of the Seller Guide for additional requirements and limitations.

HousingPayment History: Document themost recent 12-monthhousingpayment historyforeachborrower. Referto Section825.08(b)for additional guidelines.

VOM or VOR from a professional management company or individual landlord verifying no latepayments.

  • If the landlord verification is from an individual party, cancelled checks, bank statements showingthe payment, money order receipts, or cash receipts arerequired.
  • Cashreceiptsarenotallowedifthelandlordisarelativeoforhasanestablishedrelationshipwiththe borrower.
  • If using cash receipts, the name, address, and telephone number of the individual receiving the payments must be provided.

IncomeInformation

Salariedborrowers:

Verification of Employment OR most recent year-to-date (YTD) paystub, dated within 45 days of 1003 and covering onemonth, a verbal VOE, and W-2’s for the past two years.

BonusIncome:Verifytwo-yearhistoryofreceipt,theprobabilityofcontinuedreceipt,thedollaramountofbonuspaid in the last two years, and verification of the frequency ofreceipt.

CommissionIncome:Providetwoyearstaxreturns,currentpaystub,mostrecenttwoyearsW-2formsandverbal VOE.

Note: IRS W-2 Tax Return Transcripts obtained directly from the IRS, containing all information that would be included on the actual W-2 form, may be provided in lieu of a W-2 form.

Self-employedborrowers:

Income Calculation: The Invesotor Cash Flow Method is used to qualify the borrower in all transactions taking into account any supported adjustments made during the analysis of income. RefertoSection825of the Seller Guide for additional calculations and guidance.

Definition: Borrowers are considered self-employed when their income is derived from a business in whichthey maintainamajorityownerinterestorcanotherwiseexercisecontroloverthebusinessactivities.Generally,a 25%orgreaterownershipinterestinthebusinessisconsideredamajority.Therearecircumstanceswhere borrowers may be considered self-employed if they own less than 25% of abusiness.

Documentation:

W2s, paystub and1099s.

Ifmorethanfourmonthshavelapsedsincethelastfiscalyearend,includeaYTDprofitandloss(P&L) statement and balancesheet.

  • Financialstatementsmustbepreparedbyacertifiedpublicaccountant,publicaccountant,orbookkeeper and cannot be an immediaterelative.

If tax returns are used to verify qualifying income, include one of thefollowing:

  • Tax returns signed by the borrower(s), regardless of date
  • Tax returns with Form 8879 indicating that e-signatures are filed
  • Tax returns signed or stamped by the CPA
  • Tax returns with a cover letter prepared by the CPA
  • Tax returns with a Preparer Tax Identification Number(PTIN)

SoleProprietorships:AbalancesheetisrequiredsincetheinformationisnotincludedonScheduleC.

Most recent two years personal taxreturns.

Most recent two years K-1’s for allbusinesses.

Mostrecenttwoyearsbusinesstaxreturnsforeachbusinesswheretheborrowerisconsideredself-employed.

Self-employment income not used to qualify: Provide a copy of the first page of the most recentindividual federal taxreturn.

Rental income (excludes departure residence – Refer to pagefour):

Rental income calculation must be based on the Investor Cash FlowMethod.

Stability of rental income must be documented through 24 months of rentalmanagement

experienceorrentalincomehistoryverifiedbyobtainingthemostcurrenttwoyearsfiledtaxreturns. Refer to Seller Guide Section 825.06 for details on when this requirement may be waived.

Tax returns aged nine months or more from the date of the last tax year filed and rental income from the subject property is used toqualify:

  • Provide current lease agreement and three months cancelled checksor
  • Document10%post-closingliquidity(reserves)basedonaggregateliensonthesubjectproperty,in addition to the standard PCL,unless:

The rental income makes up less than 25% of the total qualifying incomeor

Appraisal indicates that units generating rental income used to qualify are tenantoccupied.

Whenpropertyhasbeenownedlessthan12monthsandisnotreflectedontheborrower’smostrecentfiled federal individual tax return the following isrequired:

  • Copiesofthepresentsignedlease(s)maybeusedonlyiftheborrowerhasatwo-yearhistoryofpropertymanagement experience as evidenced by the most current two years filed and signed federal IRS 1040tax returns,and

Forrefinancetransactions,threemonthscanceledchecksorbankstatementsverifyingreceiptofrental incomeor

For purchase transactions, existing tenant lease agreement may be used when transferred as partof the sale of theproperty.

For subject property, rental income used to qualify must be supported by the Small Residential Income Property Appraisal Report (72/1025) or comparable rent schedule(1007).

Commercial Property Rental income: Copies of two years’ complete and filed federal individual taxreturns.

Gap in rental history/income greater than three months requires a written explanation from theborrower.

Subjectproperty,rentlossinsurancecoverageequaltoaminimumofsixmonthsofrentalincomeisrequired:

  • For1-unitinvestmentpropertyand2-4unitprimaryresidencewhereborrowersarerelyingonrentsfrom the units they will not beoccupying.
  • If the income from those units is used to qualify theborrowers.

Verbal Verification of Employment

Verbal Verification of Employment on Investor’s Exhibit3.

EarnestMoney:

Verificationofearnestmoneydeposit:copyofcanceledcheckandbankstatementshowingfundshave clearedor other documentation asapplicable.

BusinessFunds:

Allowed if the borrower has 100% ownership in the business and impact is determined to beminimal. Businessaverageannual cashflowisgreaterthantheamounttobewithdrawnfordownpaymentorreserves.

Cashoncompanyyear-endbalancesheetforeachofthepreviousthreeyearsisgreaterthantheamounttobe withdrawn/reserves.

Business bank statements covering the most recent two-monthperiod.

Reserves required for one unit primary residences (Refer to Seller Guide Section 950 for all other propertyand transactiontypes.):

Combined loan amount ≤ $2,000,000 – 12 monthsPITI

Combined loan amount > $2,000,000 and ≤ $4,000,000 – 24 monthsPITI

Combined loan amount > $4,000,000 – 36 monthsPITI

  • When one of the combined mortgages is a HELOC, the outstanding balance (rather than the line limit)isused to determine the combined loanamount.
  • Maximum first mortgage loan amount is $2,000,000 combined loan amount may exceed$2,000,000.

Aggregate financing/combined Loanamount:

When aggregate financing/combined loan amount for all properties owned by the borrowerexceeds

$3,000,000, one of the following isrequired:

  • Minimum 36 months PITI in reserves
  • Maximum 50%LTV/CLTV

Retirementaccounts:

Retirement funds are valued as follows:

  • Taxdeferredgrossretirementassetsmustbereducedby30%toaccountfortaxconsequences(lessoutstanding loanbalances).
  • There must be an additional 10% reduction if an early withdrawal penaltyexists.
  • 100% of the vested Roth IRA funds (less outstanding loan balances) may be used toward the retirement portion of the reserve requirement.

Retirement funds may be used as follows:

  • Borrowers without penalty free access: Retirement funds may be used to meet up to 50% of the minimum reserve requirements.
  • Borrowers with penalty free access: Retirement funds may be used to meet 100% of the minimum reserve requirement

Suspicious activity related to deposits orpayments:

Review for patterns of unusual payments, deposits, and/or gift funds, regardless of when they were providedto the borrower that can be indicative of structuring to avoid compliance with laws and regulatoryreporting requirementsoftheUnitedStatesorforeigncountries.Unusualpatternscaninclude,butarenotlimitedto,large cashdeposits,largeandnumerousgifts,andanyotherunexplainedactivitynottypicalfortheborrower.Anyindicationofpossiblestructuringand/orunsourcedassetswillresultinanincreasedlevelofreviewfromInvestor.

Assetdocumentation:

Provideallpagesofthemostrecentandconsecutivetwomonthsassetstatementsdatedwithin45daysofthe1003.

Documentanylargedeposits.Generally,singledepositsthataregreaterthan50%oftheborrower’smonthlyqualifying income should be explained anddocumented.

Maximum total debt to incomeratios

43% for primary fixed rate purchases and rate/termrefinances

43% for occupant borrower’s debt- to-income ratio with non-occupantco-borrower

38% for investmentproperties

40% for all othertransactions

Departureresidence

What are the plans for the departureresidence?

IncludethefullPITIpaymentinDTI:Must havethegreaterofsixmonthsPITIforbothpropertiesorstandard post-closing reserverequirements.

Exclude the full PITI payment in DTI: Refer to Seller Guide Section 825.23 forrequirements.

Whenthedepartureresidencewillnotbesoldatthetimeofclosingandthereisanegativeequityposition,the following may be required to reduce the overallrisk:

  • Additional reserves to cover the negative equity of the departure residenceOR
  • Pay down the lien on the departure residence to eliminate the negativeequity

Other information (Seller toprovide)

AllMortgageLoansrequireafullyamortizedprincipalandinterestcalculationforqualifying.Refer toSellerGuide Section825.09.

Purchaseandsaleagreementsignedbyallparties(includingallattachmentsandaddendums)

FullyexecutedIRSForm4506-Tfor all borrowers where income was used toqualify.

FullyexecutedIRSForm4506-TforeachbusinesstaxreturnusedintheLoandecision(box6mustincludethe tax return form number and box 6a and 6c must bechecked).

IRS tax transcripts for the most recentyear

Preliminary Title with a 24-month chain oftitle

PropertyorassetsheldinaTrust–completetrustdocumentationorTrustCertification,dependingontheState

Flood zonecertification

Document the benefit toborrower

PreferredPaymentPlanSM:Thisisanautomaticpaymentplanoptionthatallowstheborrowertoreceivea.250%interestratereduction,whiletheSellermaintainsthebasepriceatthenon-reducedrate.RefertoSeller Guide Section 505.08 for furtherdetails.

Investor offers a .250% interest rate reduction when the borrower sets up a recurring automatic payment withdrawal (ACH) from their checking or savings account.1

  • When an investorMedal account is used, an investor underwriter will verify the account listed onthe

Preferred Payment Plan Enrollment Form (Exhibit 2) in the SellerGuide.

OR

  • When a non-investor account is used, one of the following types of documentation is required: (1)one month’sbankstatement,(2)voidedcheckordepositslipimprintedwiththeborrower’snameandaddress,

(3) online bank printout signed by a banker or (4)VOD.

There are three options to apply the interest ratediscount:

  • Option1:Logintoinvestor website andselectthePreferredPaymentPlanoptionfromthePreferred Payment Plan drop down menu on the Registrationscreen.If the Preferred Payment Plan option was not selected at Registration, Sellers can log ontoinvestor website to add the Preferred Payment Plan option via the Edit Loan Datascreen.
  • Option 2: Prior to submitting the Prior Approval Credit Package to investor forunderwriting, callinvestor,toapplythe.25%interestratereduction.ThiswillenableSellers to view their loans in their pipeline with the rateimprovement.
  • Option 3: Submit the Prior Approval Credit Package to investor underwriting. Theunderwriter will adjust investor’s pricing to match the lower interest rate upon receipt of therequired documentation. The Notice of Underwriting Approval sent to the Seller will reflect the lower interestrate.

Notes:

  • Allthreeoptionsrequireapprovaloftherequireddocumentationtoreceivethe.25%interestratereduction.
  • IftheLoanisnotLockedandtheCreditPackagehasbeensubmittedtoinvestor,theunderwriter will condition to verify the borrower’s participation in theprogram.

Obtain borrower consent for automatic withdrawal by completing the Preferred Payment PlanEnrollment Form.

Print a copy of the Preferred Payment Plan EnrollmentForm.

Fullycompletetheform,includingroutingnumberandaccountinformation,obtainborrower’ssignature on the form and submit the form in the underwriting CreditPackage.

SubmittheexecutedNoteandfirstpaymentletteratthereducedinterestratewiththestandardClosedLoan Package.

1.Due to daily pricing variations between products, borrowers should work with their lender to determine that the pricing available is the most advantageously priced home financing option for them. To receive the discount, borrowers are required to enroll in Investor’sPreferred Payment PlanSM, which includes a requirement that the borrower agree to recurring payments via preauthorized electronic funds transfer from a checking or savings account from any financial institution. To enroll, a borrower must sign and date the Preferred Payment Plan Enrollment form located on investor website. Limitations apply. This information is a summary and is not complete. Refer to the investor’s Seller Guide for additional guidelines.

PropertyandAppraisalRequirements:Thenumberofappraisalproductsisdeterminedbythetotal LoanamountprovidedbySilver MedalFunding,thecombinedLoantovalue,andthemedianhomepricemultiplier (median home price can be found in Exhibit 4of the SellerGuide).

  • ValuationproductsobtainedbytheSellermustbecompletedbyanAppraisalManagementCompany(AMC) authorized by investor to provide valuation products for Non-ConformingLoans.
  • Refer to the following Seller Guide sections andexhibits:

Section 800.10 for authorized AMCs and orderingrequirements.

Exhibit 7 for valuation product vendor contacts and otherinformation.

Total Loan AmountProvided by investor / CLTV / Appraisal documentationrequired
Median home pricemultiple
4 timesmedian homeprice / >4 10times median homeprice / >10 times medianhome Price
≤$1,000,000 / All / One fullappraisal1 / One fullappraisal1 / One fullappraisal1
>$1,000,000–
≤$1,500,000 / 70% / One fullappraisal1 / One fullappraisal1 completed bya certified appraiser2anda ResidentialValuationServices (RVS)DeskReview3 / One fullappraisal1 completed by acertified appraiser2 and aResidentialValuation Services(RVS) DeskReview3
>70%
80% / One fullappraisal1 completed bya certified appraiser2anda ResidentialValuationServices (RVS)DeskReview3
>$1,500,000–
≤$2,000,000 / All / One fullappraisal1 completed bya certified appraiser2anda ResidentialValuationServices (RVS)DeskReview3 / One fullappraisal1 completed bya certified appraiser2anda ResidentialValuationServices (RVS)DeskReview3 / One fullappraisal1 completed bycertified appraiser2 and aResidentialValuation Services(RVS) Interior FieldReview3
>$2,000,000 / All / One fullappraisal1 completed bycertified appraiser2 anda ResidentialValuationServices (RVS)Interior FieldReview3 / One fullappraisal1 completed bycertified appraiser2 anda ResidentialValuationServices (RVS)Interior FieldReview3 / One fullappraisal1 completed bycertified appraiser2 and aResidentialValuation Services(RVS) Interior FieldReview3
1.Afullappraisalisonepreparedonform1004/70,2090,or1073.APIA/PIW,2055,1075or2095Summary Report is notacceptable.
2.Whenorderingtheappraisal,Sellermustspecifythattheappraisalbecompletedbyacertifiedappraiserand, upon receipt of the appraisal, Seller must confirm the appraisal was completed by a certifiedappraiser.
3.RVS review products will be ordered by investor. LTV/CLTV will be based on the lower ofthe reviewed value or the salesprice.

Appraisal order and delivery options

  • Sellers have two options for ordering and delivering appraisals to investor:

Option 1: Direct Order / Direct Deliver

  • Order the appraisal directly from an authorized appraisal management company (AMC).
  • Deliver the final version of the appraisal including the first generation PDF and industry-standard XML, using the appraisal upload feature on investor website.

Option 2: RealEC Exchange platform

  • Orderthe appraisal from an authorized AMCusing theRealEC Exchange platform. (Registration with RealEC Exchange is required.)
  • Deliver the final version of the appraisal using the Share functionality on the RealEC Exchange platform.

OR

  • Deliver the final version of the appraisal including the first generation PDF and industry standard XML, using the appraisal upload feature on investor website.
  • Additional information:

Contact RealEC or the AMC to set up ainvestor-specific account for ordering appraisals.

For Sellers who already have an account with RealECoran authorized AMC, setting up ainvestor-specific account with them ensures compliance with:

  • The Appraiser List, now known as the Any Role Individual List. This list can be accessed in the Silver Medal Funding Validation List located on investor website.
  • Other investor Appraisal review requirements.

The AMC Assurant Valuations (formerly StreetLinks) is not available through the RealEC Exchange platform

Note:WerecommendthatSellersdeliverthefinalappraisalatthesametimeasthePriorApprovalCredit Package is uploaded toinvestor website.

RVS Reviews

  • RVS Reviews – when needed – will be ordered by the investorunderwriter.
  • RVS Field Review charge is $110 perreview.
  • RVSInteriorFieldReviewsrangefrom$395-$960forpropertyvalues$5,000,000.Forpropertyvalues that exceed $5,000,000, contact investor for an RVS feeschedule.

Seller Guide resources

  • Refer to Section 800.10for authorized AMCs and orderingrequirements.
  • Refer to Section 825.11 for High Dollar Appraisal Addenduminformation.
  • Refer to Exhibit 4 in the Seller Guide for median homeprices.
  • Refer to Exhibit 7 for valuation product vendor contacts and otherinformation.

Condominiums (Condos)

If the condo project does not meet investorStreamlined review requirements, include a completedSilver MedalHOACertificationForm(Form24or25).Determineifadditionaldocumentationisrequiredbycomparing the responses on Form 24 or 25 to the applicable Silver Medal Form 24A or 25A Answer Key. Refer toSeller Guide Section 825.12 for completeinformation.

SolarPanels

Solar Panel Systems leased or subject to a Power PurchaseAgreement:

SubmittheSolarPanelSystemApprovalRequest(Exhibit9)andrequireddocumentationtoinvestor’s National Project Review and Eligibility Services (NPRES) team prior to delivering the CreditPackage.

Submit the Solar Panel System Approval and any required NPRES conditions in the CreditPackage.

LTV/CTLV Matrix

Refer to the matrices in the Seller Guide Section 950 for details.

Primary Residences, Second Homes, and InvestmentProperties

Purchase,Rate/Term Refinance, and Cash-OutRefinance

  • Fixed Rate (15 – 30year)
  • ARMs (5/1, 7/1 and 10/1 LIBORARMs)

MarketClassificationmayimpactLTV/CLTV.FortheSilver MedalMarketClassificationList,refertoExhibit20inthe Seller Guide. Refer to the matrices for additional restrictions when the CLTV exceeds80%.

TurnTimeExpectations:Investorhasadedicatedgroupofunderwritersforthe Non- Conformingproduct.Dueto theincreased complexityofthesetransactionsandthehigherLoanamountsallowed, additional reviewsarerequired.

Additionalreviewtimewillberequiredbasedonuniquecircumstances,includingthosenotedbelow.Pleaseset the proper expectations with your team and yourborrower(s).

  • Loans requiring an exception to standard guidelines and/or a Loan amount > $1.5million

Secondlevelreviewwillbeginafterallpriortocloseconditionsaresubmittedandclearedbythe underwriter.

The review takes two to four business days in addition to our posted standard turntimes.

  • Quality Control audit (all Non-ConformingLoans)

Review will begin after all prior to close conditions are submitted and cleared by theunderwriter.

Audit takes 2 business days, in addition to our posted standard turntimes.

Notes:

  • Depending on the results of the review/audit, additional conditions mayapply.
  • FollowthestandardprocessforsubmissionoftheClosedLoanPackage.Thepackageshouldcontainallat- closeconditionsoutlinedintheUnderwritingApprovalNotificationinadditiontothedocumentsrequiredby the SellerGuide.