Quality Assurance Process Overview

1. Quality AssuranceProcess Overview By Christel Benzenhoefer QA Team Coordinator

2. File Flow • Organize & Review Submission • Intent to Proceed • Verify Duplicate Loans • Audit Employment • Income docs • Audit Credit/ QC Credit Report • Verify if Loan has 2nd Lien • Review Purchase Contract • Audit Real Estate • ClearMIN/MERS • Audit Appraisal

3. File Flow • Input Appraisal Information • Order Core Logic • Order 4506T Execution • Order SSN Verification/ Conditions • Order ID Verify • Run/Review AUS • Verify Product • Notes/ Missing Docs • Add or Sign off on Conditions • Place Necessary Stop/ Alert

4. Quality Assurance • Primary Focus • Complete, Legible and Organized Submission • Emphasizes Stated Requirements • Meets Guidelines and DU Requirements • Avoid Suspense or Deny from the Underwriter • Cleaner Files for the Underwriter

5. Organize & Review Submission • Pre-Underwriting Package • Assure • Index • Archive • Separate • Collate • Sequence

6. Organize & Review Submission • Hard Stops • 2 applicants not submitted correctly • Unless requested by the Broker or AE • If requested when mid FICO is not acceptable • Soft Stops • Broker needs to run AUS or Credit • Mid Min Fico • Intent to Proceed is missing • Income documentation is missing • Purchase Contract • Clarification not provided

7. Review Minimum Requirement • Minimum MID FICO score • Government and Conventional loans- All borrowers must have a minimum MID FICO score of 640. • High Balance Loans:minimum MID FICO score of 660 • DU Refi Plus Loans: • Primary Residence- All borrowers must have a minimum MID FICO score of 640. • 2nd home or Investment Property- All borrowers must have a minimum MID FICO score of 680.

8. Verify Duplicate Loans • If duplicate loans exist • Confirm property address, stage • (canceled or created loans have no impact). • Additional files for the same subject property must be cancelled by the Business Partner.

9. Analyze 1003 with H2O • Verify borrower summary, sections II (if refinance), III, VII, VIII, and X. • Review • Names • Address • SSN • DOB • Type/Terms • Property/Purpose • If loan is locked, compare against lock confirmation. • Escalate discrepancies to Business Partner • Review Borrower Summary information for accuracy

10. Audit Employment/ Income • Audit Employment • 3rd Party confirmation • Verify employer address • Employer’s website • Yellow Pages • 411.com • Google • White Pages • Yahoo • Create PDF • Upload to EFM • Audit Income • Minimum docs required by AUS must be provided at submission. • Escalate discrepancies or concerns to Business Partner.

11. Audit Credit/ QC Credit Report • Audit QC credit report • New credit run if XPN score differs by more than 20 pts • Audit credit • Confirm all liabilities are disclosed accurately • Credit must be less than 90 days old • Critical • Two Different types of Conditions • Fraud/Credit Alert • File Frozen Due to State Legislation

12. Verify if Loan has 2nd Lien • Identify if there is a 2nd lien associated to subject property. • Ensure information is entered correctly in H2O to receive accurate findings.

13. Review Purchase Contract • Purchase Contract included? • All pages provided? • verify buyer & seller names, • property address, • Enter data in H20. • If purchase contract is missing, escalate to Business Partner

14. Audit Real Estate & MIN/MERS • Audit Real Estate: • Confirm REO section of H20 is accurately completed with all properties owned • If rental income exists, review AU Findings for required documentation and confirm • Min/MERS • Not Required for Streamline Loans • H2O integration • “Review Properties Disclosed on Schedule of REO Matches MIN/MERS • Create PDF and Upload • Alert UW of any discrepancies

15. Audit Appraisal • If streamline with appraisal, the appraisal is required in order to complete the file • Appraisal in File, Form # is required by AUS. • Confirm property type is consistent in all fields within H2O. • Enter provided information: • Appraisal type • Appraisal completed date • Cencus tract Number • Type of property • Property/Land square feet (or acres) • Land Value • Property Location Type

16. Order Core Logic • Order LoanSafe report on all loans once the appraisal has been received. • 0-4 risk score: • No Further Action Required • 5-20 risk score: • Order HistoryPro Report • 21-25: Conv: • Add Field Review Condition • 21-25: FHA/VA: • Order HistoryPro Report • (No Field Review for Gov loans)

17. 4506T Execution • Order Tax Returns On All Files • Except for FHA Streamline or VA IRRL Loan Types • If form is provided on streamline, archive document • Assess For Full completion • If missing any section • Subject to condition added • Broker is notified via e-mail and/or phone call • Where can completed forms can be found? • Originator forms

18. SSN Verification/Conditions • SSA Consent Form • SSN • Name • Contact Information • Date of Birth • Caliber listed as Company • Dated • Cannot be older than 90 days unless stated differently • Condition Completion • Sign off on SSA condition when results returned • Clear SSA section in “Pre-UW Main” screen • Data Verify • Immediate results • Upload results

19. Order ID Verify • OFAC list • Does not match • Continue • Does Match • Alert Underwriter and continue • Master Death list • Does not match • Continue • Does Match • Alert Underwriter and continue

20. Run/Review Aus • Run AUS • Do not run if broker has not pulled through H2O • Ensure that findings are acceptable • DU Refi Plus must be eligible, and not require mortgage insurance

21. Verify Product • If Product Match achieved, no further steps required. • If Product Does Not Match, include in Alert to Underwriter. • Include in Alert to Underwriter “Loan criteria is not eligible for the Assigned Product”.

22. Notes/Missing Docs • QA does not place ALERTS in H2O to the Broker • Note are placed if necessary • Missing items • General notes

23. Add or Sign off on Conditions • If proper documentation has been provided to satisfy conditions, Quality Assurance (QA) okay to sign off on: • SSN Authorization and Report • If received partial items, add subject to conditions. • In maintaining a concise list of Conditions for Brokers, use the “Subject To:” function to add related text to existing conditions. • Other items to be aware of • Texas A6 12-Day Disclosure

24. Place Necessary Stop/Alert • Alerts: • Alerts are utilized to communicate with future roles upstream (UW, RA, PO, SD, CF). • Soft Stop Process: • When placing a soft stop, contact via phone is made to the customer to clarify discrepancies. • The customer is provided a 2 hour window to provide required documentation. • If documentation is not received, a stop is placed on the file with no move in stage. • If Business Partner is required to run AUS through H2O, or attach a corrected credit report, a stop must be placed immediately to open the AUS portal. If stop can be removed within 2 hours, turn time should not be updated

25. Legal and compliance

26. Legal/compliance CALIBER’S COMMITMENT TO FAIR LENDING • Caliber Funding is committed to fair lending. It is Caliber’s policy to make credit products available to all applicants in a fair and consistent manner within the confines of safe and sound business practices. • Employees are expected to adhere to these principles and honor our corporate commitment, not simply because in many cases the law requires such behavior, but because it reflects our corporate values. • Caliber will actively and comprehensively monitor for compliance with our Fair Lending Policy. • Violations of Caliber’s Fair Lending Policy are grounds for disciplinary action, including termination of employment. • By joining Caliber, you are expected to commit yourself to uphold the principles of our Fair Lending Policy. • A full copy of Caliber’s Fair Lending Policy can be found on H20 or by contacting compliance@caliberdirect.com. • If you suspect any violation of our Fair Lending Policy, please contact the Legal Department.