Dummy ID

Loan Number 1

Loan Number 2

Borrower Last Name

Property State

Note Date

Loan Purpose

TPR QM ATR Status

Initial Overall Loan Grade

Final Overall Loan Grade

Exception Category

Exception Subcategory

Exception Code

Final Exception Status

Initial Exception Grade

Final Exception Grade

Exception

Exception Detail

Follow-up Comments (Exception Response)

Exception Conclusion Comments

Compensating Factors

Curable Status

Loan Status

Review Date

Cleared Date

Cured Date

Exception Date

JFOZEBJDUZC

xx

xx

Connecticut

04/14/2022

Refinance

Non-QM/Compliant

2

1

Compliance

Compliance

JFOZEBJDUZC-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test. ( 12 CFR § 1026.35(a)(1) ) Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

10/03/2022

10/03/2022

10/03/2022

09/30/2022

RABXLRUWVAV

xx

xx

California

04/24/2022

Cash Out

Non-QM/Compliant

2

1

Compliance

Compliance

RABXLRUWVAV-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test as  Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Higher-Priced Mortgage Loan Test FAIL :       Charged:    6.969%        Allowed:    5.120%              Over  by: +1.849%. This loan failed the CA AB 260 higher-priced mortgage loan test as Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in the California Financial Code. While the California Financial Code provisions specify that lenders may lawfully make this type of loan subject to certain disclosure requirements and additional limitations, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. CA AB 260 Higher-Priced Mortgage Loan Test FAIL :      Charged:       6.969%        Allowed:    5.120%         Over by:       +1.849%. Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

05/02/2022

09/30/2022

09/30/2022

05/02/2022

PNSW5AXXBZO

xx

xx

Texas

04/18/2022

Purchase

Non-QM/Compliant

2

2

Credit

Guidelines

PNSW5AXXBZO-J587LE2V

Waived

2

W

* Loan does not conform to program guidelines (Lvl W)

Approved guideline exception in the file for not meeting the minimum of $50K in equity.

FICO: 804 DTI: 37.86% Reserves: $37,401.84

QC Complete

10/03/2022

04/22/2022

PNSW5AXXBZO

xx

xx

Texas

04/18/2022

Purchase

Non-QM/Compliant

2

2

Compliance

Compliance

PNSW5AXXBZO-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Higher-Priced Mortgage Loan Test FAIL:        Charged      6.283%         Allowed       5.420%         Over by     +0.863% Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

10/03/2022

10/03/2022

10/03/2022

09/30/2022

YB1BX3BKNOL

xx

xx

Illinois

04/22/2022

Purchase

Non-QM/Compliant

4

2

Compliance

Compliance

YB1BX3BKNOL-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test. as Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Higher-Priced Mortgage Loan Test FAIL charged 6.187% allowed 5.420% over by +0.767% Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

10/03/2022

10/03/2022

10/03/2022

09/30/2022

YB1BX3BKNOL

xx

xx

Illinois

04/22/2022

Purchase

Non-QM/Compliant

4

2

Credit

Assets Insufficient

YB1BX3BKNOL-YHOZ28S0

Waived

4

W

* Cash reserves less than required by guidelines (Lvl W)

Reserves are less than required by guidelines.  Verified assets in the amount of $60,244.45 - $36,785.07 = $23,459.38 left for reserves.  PITIA of $5,144.24 x 6 months = $30,865.44 required in reserves.  $30,865.44 - $23,459.38 = $7,406.06, subject loan is short $7,406.06 in reserves. 4/27/2022 - Received Gift of Equity Letter and Final CD.  Final CD reflects the adjustment for the Gift Equity leaving the Borrower responsible for $36,785.07 at closing and six months of reserves are required in the amount of $30,865.44.  Closing Costs of $36,785.07 plus six months of reserves of $30,865.44 = $67,650.51.  Verified assets in the amount of $60,244.45 - the Closing Costs and Reserves total of $67,650.51 is short $7,406.06 in reserves. 5/2/2022 - Received exception approval form for 6 month reserve requirement with compensating factors and hence condition is waived off

DTI: 26.75%/42.05% FICO: 667 Years on Job: 4 yrs

QC Complete

10/03/2022

04/26/2022

YB1BX3BKNOL

xx

xx

Illinois

04/22/2022

Purchase

Non-QM/Compliant

4

2

Credit

Guidelines

YB1BX3BKNOL-J587LE2V

Waived

2

W

* Loan does not conform to program guidelines (Lvl W)

Approved guideline exception in file for exceeding max LTV of 75% for a first time home buyer with a fico score of 667, subject loan closed with an LTV of xx.

DTI: 26.75%/42.05% FICO: 667 Years on Job: 4 yrs

QC Complete

10/03/2022

04/26/2022

SQLQSPYHXEN

xx

xx

Pennsylvania

04/29/2022

Cash Out

Not Covered/Exempt

4

2

Credit

Guidelines

SQLQSPYHXEN-J587LE2V

Waived

4

W

* Loan does not conform to program guidelines (Lvl W)

File contains guideline exception for not meeting the $50K minimum of equity, however the form does not reflect if it was approved. 5/4/2022 - Received exception approval form for $50K minimum of equity stating to allow a$40K equity deal. Appraisal value came in at xx. Market rent is high DSCR %. Borrower is an experienced investor. Hence condition is waived off.

DSCR: 1.52 LTV/CLTV: xx/xx

QC Complete

10/03/2022

05/03/2022

MOUY5E5TEWC

xx

xx

Pennsylvania

05/05/2022

Cash Out

Not Covered/Exempt

2

2

Credit

Guidelines

MOUY5E5TEWC-J587LE2V

Waived

2

W

* Loan does not conform to program guidelines (Lvl W)

Approved guideline exception in file for not having 12 months of primary housing history.  Borrower lives rent free with parents.

LTV/CLTV: xx/xx FICO: 758 Years at Present Address: 9+ Mortgage History: 0x30

QC Complete

10/03/2022

05/09/2022

B2EUTG1RNDL

xx

xx

Michigan

04/18/2022

Cash Out

Non-QM/Compliant

2

1

Compliance

Compliance

B2EUTG1RNDL-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Higher-Priced Mortgage Loan Test Fail Charged  7.528%  5.730%  +1.798% Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

10/03/2022

10/03/2022

10/03/2022

09/30/2022

KVB5CFJ2UTU

xx

xx

New Jersey

04/29/2022

Purchase

Not Covered/Exempt

3

1

Credit

Guidelines

KVB5CFJ2UTU-3L2978EM

Resolved

3

R

* Assets do not meet guidelines (Lvl R)

Bank statement provided is incomplete. Missing 2 months bank statement of borrower from xx#xx to verify. Final 1003 reflects xx#xx & the bank statement provided account  xx#xx is dated period from 04/12/2022-04/25/2022 with ending balance of $70,000. Require a complete bank statement for 2 months. 5/9/2022 - Received confirmation from client that as per guideline for InvestorX program the funds to close need to only be seasoned for 10 days and condition is waived.

5/9/2022 - Received confirmation from client that as per guideline for InvestorX program the funds to close need to only be seasoned for 10 days and condition is waived.

5/9/2022 - Received confirmation from client that as per guideline for InvestorX program the funds to close need to only be seasoned for 10 days and condition is waived.

QC Complete

05/03/2022

05/24/2022

05/24/2022

05/03/2022

0VGE3KAKPZW

xx

xx

Florida

04/28/2022

Purchase

Non-QM/Compliant

2

1

Compliance

Compliance

0VGE3KAKPZW-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Higher-Priced Mortgage Loan Test: FAIL   Charged  7.158%   Allowed  5.990%   Over-by+1.168% Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

10/03/2022

10/03/2022

10/03/2022

09/30/2022

B00KUQDUV0Y

xx

xx

Texas

04/21/2022

Purchase

Non-QM/Compliant

2

1

Compliance

Compliance

B00KUQDUV0Y-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test. ( 12 CFR § 1026.35(a)(1) ) Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Higher-Priced Mortgage Loan Test: FAIL Charged  7.681% Allowed  6.990% Over By  +0.691% Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

10/03/2022

10/03/2022

10/03/2022

09/30/2022

KRPOCJWV3BM

xx

xx

California

04/21/2022

Cash Out

Non-QM/Compliant

2

1

Compliance

Compliance

KRPOCJWV3BM-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Higher-Priced Mortgage Loan Test FAIL :                 Charged          6.973%                Allowed           6.240%               Over by        +0.733% This loan failed the CA AB 260 higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in the California Financial Code. While the California Financial Code provisions specify that lenders may lawfully make this type of loan subject to certain disclosure requirements and additional limitations, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. CA AB 260 Higher-Priced Mortgage Loan Test FAIL :                 Charged       6.973%                  Allowed       6.240%              Over by        +0.733% Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

10/03/2022

10/03/2022

10/03/2022

10/01/2022

GSRYJS2BXI1

xx

xx

Utah

05/09/2022

Purchase

Non-QM/Compliant

2

1

Compliance

Compliance

GSRYJS2BXI1-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Higher-Priced Mortgage Loan Test FAIL:  Charged 7.357%       Allowed 6.290%     Over By +1.067% Resolved: HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved: HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved: HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

10/03/2022

10/03/2022

10/03/2022

09/30/2022

OAVIL43W3BS

xx

xx

California

05/06/2022

Purchase

Non-QM/Compliant

2

1

Compliance

Compliance

OAVIL43W3BS-DK9NVDYI

Resolved

2

R

* Higher-Priced Mortgage Loan test Fail (Lvl R)

This loan failed the higher-priced mortgage loan test. ( 12 CFR § 1026.35(a)(1) )Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z.While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. Higher-Priced Mortgage Loan Test: FAIL Charged 7.011% Allowed 6.290% Over By+0.721% This loan failed the CA AB 260 higher-priced mortgage loan test. (CA AB 260, California Financial Code Division 1.9 4995(a)) Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in the California Financial Code. While the California Financial Code provisions specify that lenders may lawfully make this type of loan subject to certain disclosure requirements and additional limitations, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met. CA AB 260 Higher-Priced Mortgage Loan Test: FAIL Charged 7.011%  Allowed 6.290% Over by+0.721% Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

Resolved : HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

QC Complete

05/12/2022

09/30/2022

09/30/2022

05/12/2022

A0AXJIT53NW

xx

xx

California

05/07/2022

Cash Out

Non-QM/Compliant

3

1

Compliance

Compliance

A0AXJIT53NW-IJH0N5PE

Resolved

3

R

* ComplianceEase TRID Tolerance Test is Incomplete (Lvl R)

TRID Tolerance is No results due to Initial Closing Disclosure is missing from the loan packages. Final CD is borrower executed on 5/7/2022, three days prior Initial Closing disclosure is missing. Note : We have CD on loan packages with issued on 5/4/2022 and borrower signed on 5/5/2022, will not consider as a Initial CD because not covering three days to Final CD. Resolved 05/19/2022 : Initial CD dated 5/4/2022 received and hence condition was cleared.

Resolved 05/19/2022 : Initial CD dated 5/4/2022 received and hence condition was cleared.

Resolved 05/19/2022 : Initial CD dated 5/4/2022 received and hence condition was cleared.

QC Complete

05/16/2022

05/19/2022

05/19/2022

05/16/2022