RUSHMORE

RUSHMORE

CORRESPONDENT

RUSHMORE

CORRESPONDENT

LENDING SE R V IC ES

LEN DING

S E R V I C E S A DIVISION OF RUSHMORE LOAN MANAGEMENT SERVICES LLC

RCLS FHLMC SUPER CONFORMING FRM

RCLS FHLMC SUPER CONFORMING FRM

PRODUCT NAME: Rushmore Freddie Mac Super Conforming Fixed Rate

PRODUCT CODES:

Freddie Mac Super Conforming

15 Years

4030

20 Years

4031

30 Years

4032

GENERAL DESCRIPTION: Freddie Mac (LPA) only

Fixed Rate Fully Amortizing Mortgage with Super Conforming Loan Amounts

Loan terms of 15, 20, and 30 years are eligible

This description is intended to be only a general guide and is not all inclusive of the guidelines or underwriting conditions for this product offering. Utilize Freddie Mac (LPA) findings or use standard Freddie Mac Guidelines as needed. References: AllRegs and/or the LPA Guide

OCCUPANCY: Primary, Second Home, and Investment Properties

LOAN AMOUNT: Super Conforming Loan Limits, as allowed by location and property type, up to $990,000

The mortgage must not exceed the maximum loan limit for the specific area in which the mortgaged premises is located. For specific loan limits for each high-cost area, as released by the Federal Housing Finance Agency, visit

MINIMUM CREDIT SCORE: 620 Minimum score for all borrowers, regardless of LPA approval at lower scores

RATIOS: Maximum Debt to Income = 50%, regardless of LPA approval with higher Debt Ratios

APPRAISAL: Uniform Residential Appraisal Report (interior and exterior) minimum requirements of a 1004 report or 1025 report as needed. Additional addendums and forms required as needed (Appraisal Update, Market Conditions, etc.)

LTVs greater than 75% and Subject Property Values are > $1,000,000 must also obtain a field review

The appraiser performing the initial appraisal (and/or the appraisal field review report) must be qualified to perform appraisals without oversight or supervision by a "supervisory" appraiser

When the subject property is an attached condominium, the appraiser must provide at least two (2) comparable sales from outside the subject project and outside the influence of the developer, builder, or property seller

Properties located in Hawaii Lava Zones 1 or 2 are not allowed

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RCLS FHLMC SUPER CONFORMING FRM

ARM DATA: Not applicable

ASSUMABLE: Loans are not assumable

BORROWER ELIGIBILITY: Refer to the Freddie Mac Selling Guide for further requirements. Those with Diplomatic Immunity are not eligible

BUYDOWNS (TEMPORARY): Not allowed

CONDOMINIUMS: Freddie Mac Warrantable condominiums are allowed. A Condo questionnaire is required. Refer to the

Condominium guidelines located in the Freddie Mac Selling Guide for further requirements

CONSTRUCTION PERM: ? One Time Close / Conversions are not allowed ? Two Time Close / Refinances are allowed

PURCHASE TRANSACTION: Loan amount is limited to purchase land/lot, pay construction costs. Borrower is not the owner of record (land) prior to the construction loan closing

Loan to value is calculated on the lower of the appraisal value or purchase price (cost of lot and total construction costs)

REFINANCE TRANSACTION: Borrower is the owner of record (land) prior to the construction loan closing

NO CASH-OUT: Meets requirements of section 4301.2 and 4301.4 of the FHLMC Guide. Loan amount is limited to payoff of

interim construction loan financing securing premises, closing costs, financing costs, pre-paid items and payoff unsecured liens or construction costs up to the greater of $2,000 or 1% of the loan amount. Loan to Value on a No Cash-Out Refinance is calculated from appraised value of mortgaged premises, completed

CREDIT CONSIDERATIONS: 620 Minimum score for all borrowers, regardless of LPA approval at lower scores

CREDIT FREEZE: Freeze must be removed for all repositories, and report obtained

Extenuating Circumstances for Significant Derogatory Credit Events are not allowed

DOWN PAYMENT / SOURCE OF FUNDS: Loans using Down Payment Assistance Funds should have the program submitted and approved for use through product development prior to utilization

MINIMUM 5% BORROWER CONTRIBUTION FOR LTVS > 80%: Waived if all of the following conditions are met:

? One unit, Primary Residence purchase ? Gift Funds are received from an acceptable donor ? A Gift Letter is signed by the donor

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RCLS FHLMC SUPER CONFORMING FRM

? Gift Funds are verified

ESCROW WAIVER: Permitted on loans with LTV < 80.00%

HOMEBUYERS COUNSELING: Not applicable

INCOME / DOCUMENTS: Lenders may not consider income for qualifying purposes if they have knowledge, or the documentation indicates the income is likely to terminate within the next three (3) years. Lenders must continue to consider income trends and the consistency of the income used to qualify the Borrower

Trailing Spouse, Gambling, and Lottery Income sources are not allowed

AGE OF CREDIT DOCS: The maximum age of credit documents is 120 days for existing construction and new construction. Credit documents include credit reports and employment, income, and asset documentation. The age of the documents is measured from the date of the document to the date the Note is signed

The lender must document the source of the information obtained and the name and title of the lender's employee who obtained the information

INCOME VERIFICATION: The type of income documentation will be determined by the AUS findings/standard Agency guidelines

Refer to Freddie Mac guidelines for additional information

INTERESTED PARTY CONTRIBUTIONS:

Occupancy Primary or Second Home

Investment Property

LTV/CLTV Ratio > 90.00%

75.01% - 90.00% < 75.00%

All LTV/CLTVs

Maximum Contributions 3% 6% 9% 2%

INVESTMENT PROPERTY (NON-OWNER OCCUPIED):

Investment Property

Purchase & No Cash-Out Transactions

Loan Amounts > $484,350 to $990,000

Units

LTV

CLTV

HCLTV

1

85%

85%

85%

2-4

75%

75%

75%

Investment Property

Cash-Out Refinances

Loan Amounts > $484,350 to $990,000

Units

LTV

CLTV

HCLTV

1

75%

75%

75%

2-4

70%

70%

70%

LOAN LIMITS: Super Conforming Loan Limits as allowed by location and property type up to $990,000

Effective 8.01.2019

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RCLS FHLMC SUPER CONFORMING FRM

The mortgage must not exceed the maximum loan limit for the specific area in which the mortgaged premises is located. For specific loan limits for each high-cost area, as released by the Federal Housing Finance Agency, visit

LOAN TO VALUE: See "Primary Residence", "Second Home", and "Investment Property" for specific LTV/CLTV/HCLTV limits

MORTGAGE INSURANCE: ? Standard Mortgage Insurance Coverage Levels are required ? Reduced MI is not allowed ? Lower Cost, or Declining MI is not allowed ? Borrower Paid Monthly or Borrower Single Paid (upfront) is allowed ? Lender Paid Single Premium (upfront) is allowed. See section 4701.2(b) for further requirements ? Financed MI is not allowed ? Split Premium MI is not allowed

PRIMARY RESIDENCE (OWNER OCCUPIED):

Primary Residence

Purchase & No Cash-Out Refinances

Loan Amounts > $484,350 to $990,000

Units

LTV

CLTV

HCLTV

1

95%

95%

95%

2

85%

85%

85%

3-4

80%

80%

80%

Primary Residence

Cash-Out Refinances

Loan Amounts > $484,350 to $990,000

Units

LTV

CLTV

HCLTV

1

80%

80%

80%

2-4

75%

75%

75%

PROPERTY LOCATIONS: Allowed in United States (including the District of Columbia)

EXCEPTION: Properties located in Hawaii Lava Zones 1 or 2 are not allowed. Properties located in Guam, Puerto Rico, and US Virgin Islands are not allowed

PROPERTY TYPES: ? Attached and Detached SFRs and PUDs allowed ? 1-4 units allowed ? Leasehold properties allowed ? Attached properties in the state of Florida are allowed, see Freddie Mac guide for additional LTV restrictions that may apply ? Existing Warrantable Condominiums are allowed ? Mobile Homes / Manufactured Homes are not allowed ? Co-Ops are not allowed

PROPERTIES LISTED FOR SALE: Property listed for sale at any time after the application date and prior to closing is ineligible

? Primary and Second Homes: Properties must be taken off market a minimum of one (1) day prior to date of application and meet the following requirements: o Property must have been removed from the market/for sale prior to mortgage application date

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RCLS FHLMC SUPER CONFORMING FRM

o A copy of the cancelled MLS listing is required o There may be no evidence that property is being relisted with another agent or For Sale by Owner,

etc. o Borrower to personally write a letter of intent to retain the property as a Primary / Second Home

and continue to occupy as such for a minimum of 12 months from loan closing

? Investment Properties: Property listed for sale within 180 days (6 months) prior to application date, are ineligible

RATES: Qualifying Rate = Note rate

PITI based on the full principal and interest payment at the Note rate, in addition to the taxes and insurance payments, amortized over the full repayment term

RATIOS: Maximum Debt to Income = 50%, regardless of LPA approval with higher Debt Ratios

Borrower is qualified on the Note rate in addition to the taxes and insurance payments

RESERVES: Freddie Mac (LPA) findings or use standard Freddie Mac Guidelines as needed. References: AllRegs and/or the

LPA Guide

SECOND HOME:

Second Home

Units 1

Purchase & No Cash-Out Refinances

Loan Amounts > $484,350 to $990,000

LTV

CLTV

HCLTV

90%

90%

90%

Second Home

Cash-Out Refinances

Loan Amounts > $484,350 to $625,500

Units

LTV

CLTV

HCLTV

1

75%

75%

75%

SUBORDINATE FINANCING: Allowed, see "Primary Residence", "Second Home", and "Investment Property" for CLTV/HCLTV limits

UNDERWRITING: ? Loans must be underwritten through AUS (LPA) from Freddie Mac and must receive an Approve Eligible ? A-/ Expanded Approval Recommendations are not allowed ? Loans may not be underwritten manually ? Refer to Freddie Mac (LPA) findings and/or utilize standard Freddie Mac Guidelines. References: AllRegs and/or the LPA Guide

Maximum Age of Credit Documents is 120 days for existing construction and new construction. Credit documents include credit reports and employment, income, and asset documentation. The age of the documents is measured from the date of the document to the date the Note is signed

POWER OF ATTORNEY: Are allowed for Purchase and No Cash-Out Refinances only. The Power of Attorney must meet all applicable Freddie Mac guidelines for eligibility, as well as local / state requirements

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RCLS FHLMC SUPER CONFORMING FRM

? If in a jurisdiction in which the POA must be recorded with the Security Instrument, ensure it is recorded and the name(s) on the POA match the name(s) of the person(s) on the Security Instrument

? POA must be notarized ? The Attorney In Fact may not be a part of the transaction (IE: Lender, Lender Affiliate, or Employee of

the Lender, nor the Title Company or Affiliate, nor any Realtor involved in the transaction)

For those on a Military Deployment, follow standard Freddie Mac guidelines

REPAIR / COMPLETION ESCROWS: Not allowed. Must be completely disbursed and verified as complete prior to loan delivery to Rushmore

TITLE: If to be held as individual or inter vivos (living) trust, the entire living trust must be provided

Effective 8.01.2019

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