Adjustable-Rate Mortgage Loan Program Disclosure

Loan #:

Adjustable-Rate Mortgage Loan Program Disclosure

This disclosure describes the features of our adjustable-rate mortgage (ARM) programs. This Early ARM Disclosure Statement is not a contract and does not constitute a commitment to make a loan to you. Ask us for our current interest rate and margin.

How Your Interest Rate and Payment Are Determined ? Your interest rate will be based on an index plus a margin, rounded up to the nearest 0.125 percent. ? Our ARM programs can use one of two rate indexes listed below. The rate index used will be identified at the end of the program name. o If your program name ends in CMT, the interest rate will be based on the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available/published by the Federal Reserve Board. o If your program name ends in SOFR, the interest rate will be based on the 30-day average secured overnight financing rate (SOFR) index, as made available/published by the Federal Reserve Bank of New York. ? Your interest rate will equal the index rate plus our margin unless your interest rate caps limit the amount of change in the interest rate, as explained below. ? Your initial interest rate is determined by market factors and is not based on the index that is used to make future adjustments. As a result, the interest rate on your loan may increase or decrease on the first change date even if the index remains the same. The initial interest rate will be disclosed to you prior to the closing of your loan. ? Your payment will be based on the interest rate, loan balance, and remaining loan term.

How Your Interest Rate Can Change ? For our ARM programs using the CMT Index, after the initial fixed rate period ends, which varies by program, the first interest rate adjustment will occur. Your interest rate can change every twelve (12) months after that first adjustment. The maximum amount of the initial adjustment will vary by program (see "CMT Index" chart below). All subsequent adjustments after the initial rate adjustment cannot increase or decrease your interest rate by more than 2.000 percentage points. ? For our ARM programs using the SOFR Index, after the initial fixed rate period ends, which varies by program, the first interest rate adjustment will occur. Your interest rate can change every six (6) months after that first adjustment. The maximum amount of the first adjustment will vary by program, (see "SOFR Index" chart below). All subsequent adjustments after the initial rate adjustment cannot increase or decrease your interest rate by more than 1.000 percentage points. ? Applicable to all Programs: o Your interest rate will never be less than the margin.

The initial interest rate change will vary in time and amount, based on your ARM program and the index it uses:

Programs available using the "CMT Index"

Program Name

Portfolio/Conventional 5/1 CMT, Portfolio Int. Only 5/1 CMT, Portfolio Land 5/1 CMT, Portfolio NC Mobile 5/1 CMT Portfolio/Conventional 7/1 CMT, Portfolio Interest Only 7/1 CMT Portfolio Jumbo 5/1 CMT Portfolio Jumbo 7/1 CMT Portfolio Jumbo 10/1 CMT Portfolio Construction 5/1 CMT, Portfolio Constr. Jumbo 5/1 CMT Portfolio Construction 7/1 CMT, Portfolio Constr. Jumbo 7/1 CMT Portfolio Dr Program 5/1 CMT Portfolio Dr Program 7/1 CMT

Months Until 1st Change

60

84 60 84 120 48 72 60 84

Max. 1st Rate Change 2.000%

Max. total Rate Change above Initial Rate

5.000%

5.000% 2.000% 5.000% 5.000% 2.000% 5.000% 6.000% 6.000%

5.000% 5.000% 5.000% 5.000% 5.000% 5.000% 6.000% 6.000%

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Programs available using the "SOFR Index"*

Months Until Max. 1st

Max. total Rate

Program Name

1st Change

Rate Change Change above Initial Rate

Conforming 5/6 SOFR

60

2.000%

5.000%

Conforming 7/6 SOFR

84

5.000%

5.000%

Conforming 10/6 SOFR

120

5.000%

5.000%

Jumbo 5/6 SOFR

60

2.000%

5.000%

Jumbo 7/6 SOFR

84

5.000%

5.000%

Jumbo 10/6 SOFR

120

5.000%

5.000%

* For SOFR Index Programs, the second number "# / 6" refers to 6 months for subsequent adjustment periods.

How Your Payment Can Change ? Your payment can change every time your interest rate can change for all programs, as explained above. ? For the Portfolio Interest Only ARM programs, the initial fixed rate period will require interest only payments on the

principal balance of the loan. After the initial fixed rate, interest only period expires, the principal balance will be amortized over the remaining loan term, with principal and interest payments due for remainder of the loan. ? You will be notified at least 210 calendar days, but no more than 240 calendar days, before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. ? You will be notified at least 60 calendar days, but no more than 120 calendar days, before the first payment at the adjusted level is due after any subsequent interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.

Payment Examples ? "CMT Index" The following examples are based on a $10,000 loan with an initial interest rate that was in effect for the program in December of 2022 and reflect the maximum possible increases in the monthly payment for each program, using the $10,000 loan amount. Your periodic payment may increase or decrease substantially depending on changes in the rate.

Programs w/ "CMT Index"

Term Initial Max. Rate Initial Max.

Max.

Program Name

(Months) Rate *

Payment Payment Payment Year

Portfolio/Conventional 5/1 CMT

360 6.125% 11.125% $60.76 $91.58

8th

Portfolio/Conventional 7/1 CMT

360 6.250% 11.250% $61.57 $91.36

8th

Portfolio Interest Only 5/1** CMT

360 6.125% 11.125% $51.04** $98.27**

8th

Portfolio Interest Only 7/1** CMT

360 6.125% 11.125% $51.04** $100.59**

8th

Portfolio Jumbo 5/1 CMT

360 6.000% 11.000% $59.96 $90.59

8th

Portfolio Jumbo 7/1 CMT

360 6.000% 11.000% $59.96 $89.37

8th

Portfolio Jumbo 10/1 CMT

360 6.125% 11.125% $60.76 $87.38

11th

Portfolio Construction 5/1 CMT

348 6.375% 11.375% $63.11 $93.72

8th

Portfolio Construction 7/1 CMT

348 6.375% 11.375% $63.11 $92.00

8th

Portfolio Construction Jumbo 5/1 CMT

348 6.125% 11.125% $61.50 $91.76

8th

Portfolio Construction Jumbo 7/1 CMT

348 6.125% 11.125% $61.50 $90.03

8th

Portfolio Dr Program 5/1 CMT

360 6.125% 12.125% $60.76 $99.02

6th

Portfolio Dr Program 7/1 CMT

360 6.250% 12.250% $61.57 $97.84

8th

Portfolio Land 5/1 CMT

180 7.500% 12.500% $92.70 $112.81

8th

Portfolio Non-Conforming Mobile 5/1 CMT 240 7.500% 12.500% $80.56 $106.03

8th

* This is an initial rate that we have used recently, your initial rate may be different

** For Portfolio IO programs, the initial payment reflects Interest Only payments. Max payment includes Principal & Interest.

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Payment Examples ? "SOFR Index" The following examples are based on a $10,000 loan with an initial interest rate that was in effect for the program in December of 2022 and reflect the maximum possible increases in the monthly payment for each program, using the $10,000 loan amount. Your periodic payment may increase or decrease substantially depending on changes in the rate.

Programs w/ "SOFR Index" * Term

Initial Max. Rate

(Months) Rate **

Initial Payment

Max. Payment

Program Name

Conforming 5/6 SOFR

360 6.125% 11.125% $60.76

$91.74

Conforming 7/6 SOFR

360 6.250% 11.250% $61.57

$91.36

Conforming 10/6 SOFR

360 6.125% 11.125% $60.76

$87.38

Jumbo 5/6 SOFR

360 6.125% 11.125% $60.76

$91.74

Jumbo 7/6 SOFR

360 6.000% 11.000% $59.96

$89.37

Jumbo 10/6 SOFR

360 6.000% 11.000% $59.96

$86.38

* For SOFR Index Programs, the second number "# / 6" refers to 6 months for subsequent adjustment periods.

** This is an initial rate that we have used recently, your initial rate may be different

Max. Payment Year

7th 8th 11th 7th 8th 11th

To see what your payments would be for the amount you want to borrow using the example rates above, divide your mortgage amount by $10,000, then multiply the payment by that amount. (For example, the initial monthly payment for a mortgage in the amount of $60,000 in either our Portfolio 5/1 CMT ARM program, or our Conforming 5/6 SOFR ARM program, would be:

[$60,000 / $10,000 = 6] -> [6 x $60.76 = $364.56 per month.)

Prepayment You may pay this ARM loan in whole or part without penalty at any time. Any monthly payment amounts that exceed the regularly scheduled monthly payment due will be applied as detailed in the Adjustable Rate Note.

Demand Feature This loan does not include a demand feature.

Borrower Acknowledgment I/we acknowledge receipt of both this Disclosure and the handbook entitled Consumer Handbook on Adjustable Rate Mortgages at the time required by 12 CFR ? 1026.19(b).

Borrower Name Coborrower Name Loan #:

Date Date

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