Freddie Mac Matrix - The Money Source

Finance Type Terms

Freddie Mac Standard Profile Freddie Mac ? LP Accept

Purchase and Rate/Term Refinance

Owner Occupied ? Fixed Rate

Property Type

LTV/TLTV

Min FICO

1 Unit 2 Units 3-4 Units Property Type 1 Unit

Property Type

95%

AUS Cert

85%

with min

620

80%

Second Home ? Fixed Rate

LTV/TLTV

Min FICO

AUS Cert

90%

with min

620

Investment ? Fixed Rate

LTV/TLTV

Min FICO

Freddie Mac Matrix

Freddie Mac ? LP Accept Cash-Out Refinance

Property Type 1 Unit 2 Units

3-4 Units

LTV/TLTV Min FICO

80%

AUS cert

75%

with min 620

75%

Property Type 1 Unit

LTV/TLTV Min FICO

75%

AUS Cert with min 620

Property Type LTV/TLTV Min FICO

1 Unit 2-4 Units

85%

75%

March 31, 2023 The Money Source Inc. NMLS #6289

AUS Cert with min

620

1 Unit 2-4 Units

75% AUS Cert

with min 620 70%

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Finance Type Conforming Mortgages

Super Conforming Mortgages

Freddie Mac Home Possible Freddie Mac ? LP Accept

Purchase

Property Type

LTV/TLTV

Min FICO

Freddie Mac Matrix

Freddie Mac ? LP Accept Rate/Term Refinances

Property Type LTV/TLTV Min FICO

1 Unit 2-4 Units

97/105*% 95/105*%

AUS Cert with min 620

1 Unit 2-4 Units

97/105*% 95/95%

AUS cert with min

620

Property Type

LTV/CLTV

Min FICO

Property Type LTV/CLTV Min FICO

1 Unit 2 Units 3-4 Units

95/105*% 85/85% 80/80%

AUS Cert with min 620

1 Unit 2 Units 3-4 Units

95/105*% 85/85% 80/80%

AUS cert with min

620

*A TLTV ratio up to 105% is permitted when secondary financing is an Affordable Second

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Occupancy Owner Occupied Primary Residence

Second Home

Income Limit

Change in Borrowers

Transaction

Manufactured Housing Property Type

Purchase & Limited Cash-Out Refinance Cash-Out Refinance (Term < 20 years) Purchase & Limited Cash-Out Refinance

1 Unit 1 Unit 1 Unit

Freddie Mac Matrix

Maximum LTV/CLTV/HCLTV

95% 65% 85%

Minimum FICO

AUS cert with min

620

Refi Possible

? The borrower's qualifying income converted to an annual basis must not exceed 100% of the area median income (AMI) for the location of the mortgaged premises

? In determining whether a loan is eligible under the borrower income limits, Sellers must consider the income from all borrowers who will sign the Promissory Note, to the extent that the income is considered in evaluating creditworthiness for the new loan.

? The borrower(s) obligated on the Promissory Note for the Refi Possible mortgage must be the same as the borrower(s) on the Promissory Note for the mortgage loan being refinanced

? Borrower obligated on the Promissory Note for the mortgage being refinanced may be omitted from the Promissory Note for the Refi Possible Mortgage provided that: o The mortgage file contains evidence that the remaining borrower has been making the mortgage payments, including the payments for any secondary financing, for the most recent 12-month period from their own funds; or o In the case of death, the Seller obtains and retains in the mortgage file documentation of the borrower's death

? In all cases, at least one borrower from the mortgage being refinanced must be retained

Borrower Benefit

? The refinanced loan must provide the following benefits to the borrower: o a reduction in interest rate of at least 50 basis points, and o a reduction in the monthly payment that includes principal, interest, and the mortgage insurance payment (if applicable).

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General Eligibility Requirements

Freddie Mac Matrix

? Minimum 620 FICO ? Prior loan being refinanced must be a conventional mortgage owned or securitized by Freddie Mac ? Refinance loan must be secured by a one-unit principal residence ? At least 12 months must have passed from the original Promissory Note date of the loan being refinanced to the new loan

Promissory Note date. ? Refinance loan must be a limited cash-out with cash to borrower at closing less than or equal to $250 ? Loans must be submitted to Loan Product Advisor. ? LP identifies if the loan is eligible for Refi Possible based on the property address, qualifying income, and other factors. ? May not be combined with Home Possible refinance transaction ? All eligible property types are acceptable ? For properties located in a PUD or condo project, Sellers must confirm that the project is not a hotel, timeshare, or segmented

ownership project. All other project review requirements are waived.

Eligible Subordinate Financing

Property Valuation

? Existing subordinate financing o May not be satisfied with the proceeds of the new loan, o Can remain in place if it is resubordinated to the new loan, and o May be simultaneously refinanced with the existing first lien mortgage, provided that: o the unpaid principal balance (UPB) of the new subordinate lien is not more than the UPB of the subordinate lien being refinanced at the time of payoff, and there is no increase in the monthly principal and interest payment on the subordinate lien.

? New subordinate financing is only permitted if it replaces existing subordinate financing.

? Appraisal Waiver is acceptable ? If appraisal was obtained for the transaction, $500 credit will be provided to the lender on the purchase advice. ? The Final Closing Disclosure (CD) must reflect the $500 credit to borrower

Mortgage Payment History

? The mortgage being refinanced must have a payment history that indicates the following: o The mortgage has not been 30 days delinquent in the most recent six months; and o The mortgage has not been 30 days delinquent more than once in the most recent 12 months, and o The mortgage has not been 60 or more days delinquent in the most recent 12 months

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Ineligible Mortgages

Freddie Mac Matrix

? The mortgage being refinanced must not be: o A Freddie Mac Relief Refinance mortgage o A Freddie Mac Enhanced Relief Refinance? mortgage o A Refi Possible mortgage o A mortgage subject to an outstanding repurchase request o A mortgage subject to recourse, indemnification, or another credit enhancement other than mortgage insurance

? Super conforming loan amounts are ineligible ? Texas Section 50(a)(6) loans are ineligible ? Prior loan may not be subject to a temporary interest rate buydown

Guidance Minimum Loan Amount ? $50,000 minimum loan amount on all products

? $75,000 on manufactured singlewide

Ability to Repay and Qualified Mortgage

Rules (ATR/QM)

Age of Documents

No Cash-Out Refinance Seasoning

The ATR/QM rules requires you made a reasonable, good-faith determination before or when you consummate the mortgage loan that the borrower has a reasonable ability to repay the loan. The Money Source Inc. follows HUD and CFPB guidance in regards to QM.

Safe Harbor and Rebuttal Presumption to QM loans are considered for purchase review with no additional overlays. Sellers are responsible for providing evidence of compliance with the ATR/QM rules. ? Credit documents must be dated within four months of the Promissory Note date ? Preliminary Title Policy/Report must be no more than 180-days-old on the date the Promissory Note is signed. ? The refinance mortgage being paid off must have a Promissory Note Date no less than 30 days prior to the Promissory Note Date of

the "no cash-out" refinance mortgage, documented in the mortgage file, when none of the borrowers have been on the title for at least six months. ? When the property's title has been held by a limited liability company (LLC) or limited partnership (LP), the requirement may be satisfied by the time the property was titled in the name of the LLC or LP, provided that:

o The borrower is a majority owner or had control of the LLC or LP since the date the property was acquired by the LLC or LP, and

o Title is transferred into the borrower's name prior to the Promissory Note date

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