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Edge Program

Tier 1 Full Doc At-A-Glance

Effective November 18, 2019

The Non-Agency Edge Program is eligible for all TPO Clients.

Tier 1 – Full Documentation

Credit/Housing Event – Four-Year Seasoning Occupancy Units Loan Amount Credit Score LTV CLTV DTI Reserves

Purchase & Rate/Term Refinance

Primary – Purchase Only 1 to 2 Units $1,000,000

720 95%1 95%1 43%

9 Months 700 90% 90% 50%

$1,500,000 740 95%1 95%1 43% 720 90% 90% 50%

Primary Residence 1 to 2 Units

1,000,000 680 85% 85%

50%

6 Months 660 80% 80%

$1,500,000 700 85% 85%

9 Months 680 80% 80%

$2,000,000 720 85% 85%

12 Months 700 80% 80% 680 75% 75%

$2,500,000 720 80% 80%

18 Months 700 75% 75%

Second Home 1-Unit1,500,000

700 80% 80%

50% 9 Months 680 70% 70%

660 65% 65% $2,000,000 700 75% 75% 12 Months

Investment (<=2 acres) 1 to 4 Units $1,000,000

720 80% NA

50% 12 Months 700 75% NA 680 70% NA

$1,500,000 700 75% NA 680 70% NA

Cash-Out Refinance

Primary Residence 1 to 2 Units $1,000,000

720 80% 80%

50% 6 Months 700 75% 75%

680 70% 70% $2,000,000 700 65% 65% 12 Months

Second Home 1-Unit$1,000,000

700 65% 65%

50% 12 Months $2,000,000 60% 60%

Investment (<=2 acres) 1 to 4 Units $1,000,000

700 65% NA

50% 12 Months $1,500,000 60% NA

1 Minimum loan amount $484,351.

Program Features

Products 30-year Fixed, 5/1 and 7/1 ARMs(I/O Ineligible)

Loan Amount $100,000 to $2,500,000

Cash-Out Amount Primary or Second <= $1,500,000 Investment <=$1,500,000

Income Documentation Full Doc (2 years) W-2s, 1099s, and/or tax returnsResidual Income $2,500 + $150 per dependent

Asset Utilization Most recent 6 months or 2 quarters Residual Income not required

Program Features

Max LTV/CLTV

Condominiums 85% Warrantable 80% Non-warrantable

Modular 80% Rural (primary only) 80%, <=43% DTI; Purchase or R/T Refi

Asset Utilization

Purchase Only 700 credit score: <=90% LTV/CLTV

Purchase & Rate/Term Refi

680 credit score: <=85% LTV/CLTV

Home Point Financial Corporation. NMLS Unique ID No.7706 (For licensing information, go to: www.nmlsconsumeraccess.org). 2211 Old Earhart Road, Suite 250, Ann Arbor, MI 48105. Toll-Free Tel: 888-616-6866. Arizona License No. 0930854; Loans made or arranged pursuant to a California Finance Lenders Law license; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act License No. 4131048; Georgia Residential Mortgage Licensee No. 33540; Illinois Residential Mortgage Licensee License No. MB.6760891; Kansas-Licensed Mortgage Company License No. SMC.0025367; Massachusetts Mortgage Lender License No. ML7706; Nebraska Mortgage Banker License; Licensed by the New Hampshire Banking Department; Licensed by the New Jersey Department of Banking and Insurance; Licensed Mortgage Banker—N.Y.S. Department of Financial Services; North Dakota Department of Financial Institutions-Money Broker License No. MB102834; Oklahoma Mortgage Lender License No. ML010597; Rhode Island Licensed Lender; Washington Consumer Loan Company License No. CL-7706. Some products may not be available in all states. Advertised information, rates and pricing are subject to change without prior notice and may not be available at commitment or lock-in. This is not a commitment to lend. Other restrictions may apply. All rights reserved. © 2019 Home Point Financial Corporation

NMLS #7706

Effective November 18, 2019 Page 2 of 2 homepointfinancial.com

Program Overview

The following is an overview of core guidelines. See the Home Point Guide for full program requirements.

Topic Description

ARM Features

Topic 5/1 ARM 7/1 ARM

Margin/Floor 3.50% 3.50%

Caps 2/2/5 5/2/5

Index 1-Year LIBOR

Qualifying Interest Rate Greater of Fully Indexed or Note +2% Greater of Fully Indexed or Note

Funds Documentation for Closing or Reserves

Assets Gifts Gift of Equity Reserves

Sourced or seasoned for 60 days.

▪ Primary or second▪ Family member only▪ <=80% LTV/CLTV

▪ Primary only▪ LTV/CLTV restricted

to cash-out limit

Additional reserves required when <12 months verified housing or for multiple financed properties

Borrower US citizen, permanent resident alien and non-permanent resident alien.

Eligible Property Types SFR, PUD, townhome, condo (warrantable/non-warrantable), modular, 2-unit (primary only), 1 to 4-unit (investment only), and rural (primary only).

Ineligible Property Types Co-Op, manufactured, log homes, unique properties, farms or hobby farms, mixed-use properties, condotels or condos hotels, boarding houses, assisted living, continuing care facilities, theme park resort properties, properties subject to rent control or >10 acres.

Ineligible States AK, MS, NY, and WV

Credit Standards

Housing History: 0x30x12

Standard: 3 tradelines reporting for 12+ months or 2 tradelines reporting for 24+ months all with activity in the last 12 months.

Qualifying credit score: The credit score of the primary wage earner, which is the score used for grading and pricing.

Credit/Housing Event ▪ Credit Event Definitions: Bankruptcy Ch. 7, 11, 13▪ Housing Event Definitions: Foreclosure (FC), Short Sale (SS), Deed in Lieu (DIL), Modification (MOD)

Asset Utilization

Qualifying Income: Qualified assets/120 months. Ineligible in conjunction w/cash-out transactions. Residual income not required when using asset utilization. Minimum 6 months seasoning.

Document qualified assets up to percentage of account balance: 100% checking, saving, money market accounts; 80% value stocks, bonds, mutual funds; 70% vested retirement accounts.

Concessions ▪ Purchase: Up to 6% towards closing for primary and second homes▪ Investment: Maximum 2%

Properties Listed for Sale Refinance: Property may not be listed at application. If listed within 6 months of application, maximum LTV/CLTV reduced by 10% for a cash-out transaction. Lesser of appraisal or list price used for LTV/CLTV calculation.

Cash-Out ▪ Cash-out can be used for reserve requirements and/or to pay off debt for qualifying purposes▪ TX50(a)(6) ineligible

Subordinate Financing Purchase new financing (institutional) permitted. Refinance may subordinate existing. Investment not permitted.

Appraisal Review

Clear Capital CDA required for all transactions.

Full second appraisal required for the following transactions: (1) Loan Amount >$1.5M; (2) HPML and flip transactions.

Compliance Escrow impound established for taxes and insurance. (1) Fully documented ability-to-repay. (2) Compliance with all applicable federal and state regulations. No section 32 or state high cost. Total borrower paid points and fees must be less than 5%.

Program Eligibility Loans may only proceed if they do not qualify for conventional or FHA financing.

Current changes identified with green font. Home Point has sole discretion for final underwriting decision. See full guide details in the Home Point Non-Agency Edge Supplement.

Equal Housing Opportunity. This matrix is to be used as a quick reference only and does not replace program/agency guidelines. Refer to our program guidelines online for details. This information is not an advertisement to extend consumer credit as defined by Sec. 1026.2 of Regulation Z.

Home Point Financial – Edge Tier 1 – Full Documentation Program At-A-Glance

Home Point Financial Corporation. NMLS Unique ID No.7706 (For licensing information, go to: www.nmlsconsumeraccess.org). 2211 Old Earhart Road, Suite 250, Ann Arbor, MI 48105. Toll-Free Tel: 888-616-6866. Arizona License No. 0930854; Loans made or arranged pursuant to a California Finance Lenders Law license; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act License No. 4131048; Georgia Residential Mortgage Licensee No. 33540; Illinois Residential Mortgage Licensee License No. MB.6760891; Kansas-Licensed Mortgage Company License No. SMC.0025367; Massachusetts Mortgage Lender License No. ML7706; Nebraska Mortgage Banker License; Licensed by the New Hampshire Banking Department; Licensed by the New Jersey Department of Banking and Insurance; Licensed Mortgage Banker—N.Y.S. Department of Financial Services; North Dakota Department of Financial Institutions-Money Broker License No. MB102834; Oklahoma Mortgage Lender License No. ML010597; Rhode Island Licensed Lender; Washington Consumer Loan Company License No. CL-7706. Some products may not be available in all states. Advertised information, rates and pricing are subject to change without prior notice and may not be available at commitment or lock-in. This is not a commitment to lend. Other restrictions may apply. All rights reserved. © 2019 Home Point Financial Corporation

NMLS #7706