Portfolio Lending Suite

Portfolio Lending Suite
June 10, 2015

Agenda 1 Introduction 2 Compliance 3 Pricing 4 Program Highlights 5
Operations 5 We hope this will equip you with the information you need in order to have conversations with your customers at the MBA. Ability to repay and BBE are compliance requirements. Maybe we should lump them?

Caliber’s Vision Responsible Lending Promote Homeownership
Offer Innovative Solutions The overall purpose of building this program and developing these products is to provide competitive home financing options for more qualified borrowers; to expand homeownership opportunities by recognizing that there are segments of the population that are not being served by the government agency programs today; and to be an industry leader in this arena. Caliber’s mission is “to provide disciplined credit solutions to qualified borrowers who can demonstrate ability to repay.” Our Portfolio Lending Program ties to several key components of the Caliber Home Loans vision: Promoting Homeownership by releasing new products to borrowers who have not had the ability to attain competitive home financing. Responsible Lending – all products meet published ATR guidelines Offering progressive and innovative solutions Our Portfolio Lending Program gives us the unique ability to bring products to market that our competitors cannot offer. They give us a competitive advantage, and help us expand homeownership opportunities while bringing acceptable returns to the bottom line. All loans will be required to meet ATR guidelines to be eligible.

$1 Trillion in Mortgage Demand Housing Event Establishing Credit
Not Perfect Credit Higher DTI Our portfolio suite of mortgage programs is designed to provide solutions to the millions of individuals that have been locked out of the mortgage market since the financial crisis. Over the past several years, many borrowers that can validate their ability to repay have not been able to access mortgage financing. It is our mission to deliver logical financing options to effectively solve these issues that have plagued our industry for far too long. If you just consider the approximately 5 million homeowners that have experienced a foreclosure or short-sale since the start of the housing crisis, that population alone would represent approximately $1 trillion of mortgage demand. The thoughtful way we built these products will also allow us to expand beyond that population to millions of additional qualified individuals with unmet financing needs. We have considerably enhanced our credit guidelines to offer loans to individuals with less than perfect credit, higher DTIs, as well as the allowance of multiple events. This product suite is designed for individuals who are trying to gain access to mortgage financing or who are trying to establish or re-establish their credit. Our purpose today is to review all of these key concepts and attributes to ensure you have a solid understanding of them. $1 Trillion in Mortgage Demand

Portfolio Lending Suite
Jumbo Alternative Homeowner’s Access Fresh Start Investor Foreign Nationals Jumbo borrowers looking to qualify with flexible guidelines: LTV up to 90% with NO MI Interest Only Eligible income sources: RSU, Asset Depletion Borrowers that otherwise fall outside agency/government guidelines due to: DTI up to 60% with compensating factors Solutions for first time home buyers such as 100% gift and rent free history Non-traditional credit Mortgage lates are permitted with 0X90X12 Borrowers with housing/credit event: BK/FC/DIL with at least 24 months seasoning SS less than 24 months Multiple housing/credit events allowed Borrowers with housing/credit event (BK/FC/DIL/SS) with no seasoning requirement. Multiple events allowed No mortgage or pay history required. Borrowers looking for flexible financing on investment properties: 80% LTV up to $1.5MM with max loan amounts up to $2MM Cash Out Refinance to $350K Delayed Financing treated as rate/term refinance with no seasoning required Non US Citizens that visit the country on business or vacation who are looking to finance a second home or investment property. Maximum Loan Amount: $2,000,000 Unlimited number of financed properties - Owner Occupied financed properties regardless of occupancy 2 US financed properties Product Summary: This slide help identify which of our products might be the best credit solution for a particular borrowers.

Compliance

ATR Requirements Ability to Repay
All loans made under Caliber’s Portfolio Lending Products must meet the standards of the Dodd-Frank Ability to Repay (or “ATR”) Rule for mortgages. ATR Requirements Current or reasonably expected income or assets Current employment status Monthly Mortgage payment for the loan in question Monthly payments on other loans secured by the same property Monthly payments for property taxes, insurance and home association fees Debts, alimony or child support obligations Monthly debt to income ratio or residual income, that was calculated using the total of all of the mortgage and non-mortgage obligations as a ratio of gross monthly income Credit History Title XIV of the Dodd-Frank Act amends the Truth in Lending Act (TILA) to provide that “no creditor may make a residential mortgage loan unless the creditor makes a reasonable and good faith determination based on verified & documented information that, at the time the loan is consummated, the borrower has a reasonable ability to repay the loan, according to its terms, and all applicable taxes, insurance, including mortgage guaranteed insurance, and assessments.” In other words, these are fully documented, verified income loans. The eight requirements of the ATR rule must be evaluated and creditors must generally use reasonably reliable third-party records to verify the information they use to evaluate the factors. It is important to ensure that Caliber is verifying and documenting the records used in the evaluation. In the case where you use residual income, a new calculator has been created and will be available in AllRegs.

Both a Borrower & Underwriter ATR Attestation is required.
ATR Requirements Both a Borrower & Underwriter ATR Attestation is required. As part of the ATR – we will be requiring two documents: Borrower Attestation – due when the loan is submitted for purchase review UW Attestation – due when the loan is submitted for underwriting

Borrower’s Best Execution
The Loan Originator or Correspondent Lender is responsible for ensuring that adequate anti-steering controls are in place and that the best product is offered to the borrower. The best product is achieved if: The lowest interest rate is made available, The product offered meets the needs of the borrower, and The borrower qualifies for the product. The Borrower’s Best Execution waterfall gives guidelines to ensure that Agency products are considered prior to Portfolio Lending products.

Tools for Borrower’s Best Execution
DOCUMENTATION REQUIREMENTS A copy of AUS which indicates borrower is not eligible for an agency product (exceptions include loans originated under the Foreign National Program and loan amounts that exceed agency guidelines ). Underwriter must document, on the 1008, the reason the borrower does not qualify for other products offered by the correspondent

Borrower’s Best Execution
AUS Manual Underwrite Agency and Non Agency Products offered by the Correspondent Soft Guideline Check/Available Exceptions Brokered Out Eligible Caliber’s Portfolio Lending Products The Borrower’s Best Execution waterfall will be re-evaluated with any changes to the loan. Any changes during the loan process that would allow the borrower to qualify for a less restrictive or lower cost loan should be considered and changes should be made, if applicable. Examples of these types of changes include, but are not limited to: FICO increase, correcting an inaccuracy on credit report Adding additional income not originally included Adding a borrower to strengthen the loan Reduce the LTV / increase down payment

Change of Circumstance
Any changes during the loan process that would allow the borrower to qualify for a less restrictive or lower cost loan should be considered and changes should be made, if applicable. Examples of these types of changes include, but are not limited to: FICO increase, correcting an inaccuracy on credit report Adding additional income not originally included Adding a borrower to strengthen the loan Reduction in LTV / Increase in down payment The Borrower’s Best Execution analysis must be re-evaluated with any changes to the loan.

Qualified Mortgages Portfolio Lending loans may or may not meet the Qualified Mortgage guidelines. The Portfolio Products are considered QM products unless any of the following is true: DTIs > 43% Product has Interest Only feature Points and fees exceed 3% (or the applicable QM threshold) Over half of the non-agency loans originated by Caliber today are qualified mortgages, or QM. An often inaccurate assumption is made that all non-agency or portfolio loans are non-QM, and that is simply not true. There are four components to originating a QM. The product cannot contain risky or toxic features, such as negative amortization, interest-only, or balloon features The loan term cannot exceed 30 years The debt-to-income ration, or DTI, cannot exceed 43% - keeping in mind that a temporary QM alternative provides an exception to this 43% DTI limit, and The Points and Fees cannot exceed 3% of the total loan amount (this threshold is slightly more flexible for loan amounts less than $100,000) As a reminder, the CFPB has allowed for a temporary 7 year exception to the 43% DTI limit for loans that are eligible to be purchased or guaranteed by Fannie or Freddie or insured/guaranteed by HUD, VA or USDA. All other QM requirements, aside from the DTI limit, will still apply to these loans.

Originating HOEPA & HPML Loans
HOEPA or High Cost Loans Caliber will not originate high cost mortgage loans as defined under HOEPA regulations (Regulation Z , 12 CFR ) or state high cost laws. Higher Priced Mortgage Loan (“HPML”) Caliber will originate and purchase higher priced mortgage loans (“HPML”), as defined in Regulation Z, 12 CFR , for Caliber’s Portfolio Lending Products, FHA and VA loans only. IMPORTANT: HPML loans will not be permitted in NY or ME. Higher Priced Mortgage Loan Warnings/Alerts: Warnings are just messages for your information – there is nothing to override. MD – must provide and have borrower execute the HPML Comparison Disclosure PTD CT – must ensure the final locked re-disclosure package was delivered at least 3 business days prior to closing NY and ME – you cannot override state higher priced

Pricing

Best Effort Execution Only
Adjustments to Rate FICO & LTV Loan Amount & Type Occupancy DTI Mortgage History Multiple Events Property Type Adjustments to Price Loan Amount Lock Extension When pricing these loans, it is important to remember that some adjustments are to rate, and others are to price. In fact, currently the loan amount and lock extension adjustments are the only ones that affects price. Other adjustments are made directly to the interest rate. Let’s review an example. Best Effort Execution Only

Sample Rate Sheet Example
NAHOL5 30 Day Jun 25 45 Day Jul 10 60 Day Jul 27 NAHOF30 30 Day Day Day Jun Jul Jul 27 5.250% 99.355 99.23 99.105 5.625% 99.41 99.285 99.16 5.312% 99.605 99.48 5.687% 99.66 99.535 5.375% 99.855 99.73 5.750% 99.91 99.785 5.437% 99.98 5.812% 100.16 5.500% 100.23 5.875% 100.41 5.562% 100.48 5.937% 100.66 100.73 6.000% 100.91 100.98 6.125% 101.16 101.23 6.250% 101.41 101.48 6.375% 101.66 101.73 6.500% 101.91 101.98 6.625% 102.16 102.23 6.750% 102.41 0-40 > 85 LTV: Adjustments to Rate Total Loan Amount $1,000,000 to $1,500,000 0.1 0.125 0.13 N/A Total Loan Amount > $1,500,000 0.3 0.25 Second Home Cash Out 0.5 DTI > 43 2-4 Units 1x30 day late in most recent 12 months >1x30 day late in most recent 12 months >=1x60 day late in most recent 12 months 1.5 Short Sale in most recent 24 months Multiple Housing Events > 24 months FICO: Adjustments to Rate 720+ FICO 0.38 FICO 0.375 FICO 0.4 0.625 0.75 FICO 0.88 FICO 0.6 0.63 0.875 1 FICO 1.1 1.125 1.13 1.25 1.375 Loan Amount: Adjustments to Price Total Loan Amount $100,000 to $149,999 (1.750) Total Loan Amount $150,000 to $199,999 (1.500) Total Loan Amount $200,000 to $249,999 (0.750) Total Loan Amount $250,000 to $299,999 (0.250) Total Loan Amount $300,000 to $349,999 Total Loan Amount $350,000 to $449,999 Total Loan Amount $450,000 to $599,999 Total Loan Amount >= $600,000 0.8 Sample This example is a Homeowners’ Access adjustments grid. As mentioned on the previous slide, most adjustments are made directly to the interest rate, with the exception of the loan amount. If we use a scenario where we have an 80% LTV purchase loan with a $375,000 loan amount, we receive a positive PRICE adjustment of .25 (a quarter). If this borrower has a 660 FICO you would have a .875 (seven eights) adjustment to the rate. Additionally, a 45% DTI would result in an additional quarter point adjustment to interest rate. One important item to point out is that pay history, seasoning, and multiple events also affect the rate. In the next few slides we’ll review new fields that are being added to H2O in order to achieve accurate pricing. It is absolutely critical that you complete these fields accurately so that you have a correct rate lock.

Lock Example Purchase - 60% LTV – 30 day lock – FICO 720
>1x30 day late in most recent 12 months  0.50% Increase to Rate DTI > 43%  Increase to Rate Loan amount $600,000  Increase to Price Base Rate: % Base Price: > 1X30 - Increase to rate DTI > 43% – Increase to rate Loan Amount – Increase to price Final Rate: % Final Price: Loan would be locked with Caliber at the Final Rate: % Lenders will be compensated based on the base (locked) rate. NOTE: The Portfolio Products Transfer/Administrative fee is $ * * Rep & Warrant Relief provided for Credit and Appraisal

Lock Screen Example Select your Portfolio Product from the Product Name drop down The interest rate entered on the lock must be the FINAL interest rate Once the Portfolio Product is selected in the Product Name drop down, a new field titled “Additional Loan Attributes” will appear

Lock Screen Example You will be given the opportunity to select the applicable product attributes for the loan. Important: Please ensure that the attributes selected are accurate as they will impact the final rate and price on the loan.

Lock Screen Example In our example:
> 1X30 day late – Rate Adjustment DTI > 43% – Rate Adjustment Loan Amount – Price Adjustment Base Rate = 5.625% Final Rate = 6.375%

Program Highlights

Refer to AllRegs for most recent and accurate guidelines.
Jumbo Alternative The Jumbo Alternative Program provides a set of innovative underwriting guidelines that will solve for a number of borrower needs that are not currently met by Jumbo products in the market today. LTV up to 90%, with no MI Max DTI 50% with compensating factors Minimum FICO 660 Eligible income sources include restricted stock units, asset depletion and other solutions for self-employed borrowers 30 year fixed, 5/1 ARM, 5/1 Interest Only Loan Amounts from $417,001 up to $2 Million Unlimited financed properties for Primary Residences Delayed Financing treated as Rate Term True cash out to $500,000 Up to 50 acres allowed No maximum land value for non-rural properties. Up to 35% for rural properties The prime Jumbo market has been inflexible for years, leaving many qualified borrowers from obtaining financing. This is Caliber’s answer to that. The Jumbo Alternative Program provides a set of innovative underwriting guidelines that will solve for a number of scenarios where the current prime jumbo financing options cannot. This product allows for LTVs up to 90%, on loan amounts up to $2million – with no MI. It is important to recognize, this is a true no MI product. The MI isn’t being covered in the pricing, it is a true NO MI product. With compensating factors, there are even scenarios where we can accept a max DTI up to 50%. We have seen a decent gap in lending solutions for borrowers in the FICO range. This can open up options for those borrowers who can demonstrate an ability to repay, but have lower FICOs due to various reasons like a lack of mortgage or rental history, or simply not being credit users. This product will be available as 30 yr fixed, 5/1 ARM and we are also offering a 5/1 Interest Only version. As a benefit to the borrower, this has no prepayment penalty. Key Point: Minimum loan amount $417,001 (bleeds into high balance for areas with conforming limits over $417K) Comparison to Current Caliber Jumbo: [Caliber Jumbo Requirements] Minimum 720 FICO Wholesale, 700 FICO Retail Max 43% DTI Max 80% LTV Refer to AllRegs for most recent and accurate guidelines.

Jumbo Alternative: ARM & Fixed
PURCHASE AND RATE TERM REFINANCE1,2 Occupancy FICO DTI LTV Loan Amount 5/1 ARM Interest Only Option Primary 740 <35% 90 $2,000,000 NA 720 <40% 85 660 <43% (>43 < 50% see residual income requirement) 80 Allowed4 IO: 680 Second Home 700 <43% $1,500,000 IO: 720 680 75 $1, 500,000 IO: 700 CASH-OUT REFINANCE3 Program Matrix Notes: Delayed Financing may be underwritten and priced as a rate term refinance. Maximum LTV per Matrix. Maximum loan amount per Matrix. Rate term cash back amount restriction does not apply. For Rate term transactions, maximum cash back amount is $2,000. For Cash Out transactions, maximum cash back amount is $500,000. Interest Only not offered on 30 year Fixed. 90% LTV up to 2M with 740 FICO Down to 660 FICO at max 80% LTV and 2M loan amount I/O available at 680 FICO, 80% LTV, 2M loan amount Reinforce true no MI product (no additional premium for MI)

Restricted Stock Income
What is “restricted stock income”? Only allowed on Jumbo Alternative. Restricted Stock Unit (RSU) is a grant of company stock in which the recipient's rights in the stock are restricted until the shares vest (or lapse in restrictions). The restricted period is called a vesting period. Usable income is derived from the RSU award listed on the year-end paystub from the borrower. Income must be calculated using the RSU calculation worksheet which will be provided in AllRegs. Refer to the Jumbo Alternative Manual Underwriting Guidelines for additional guidelines. Will need speakers notes.

RSU Income Calculation
Stock Awards Income Calculation This form is for exclusive use by Caliber Home Loans, Inc. or its designees. Income belongs to: Borrower: Coborrower: Loan Number: Enter loan number on summary Date: 5/26/2015 Stock Grants/Restricted Stock Income Analysis *****THIS SHEET SHOULD NOT BE USED FOR STOCK OPTIONS. ***** Please click button at the bottom to add sheet for stock options Stock Issue Frequency Stock Symbol (ex: monthly, quarterly, annually) Share Price Vesting Term Date Price Verified (ex: over 2 yrs, 3 yrs, 5 yrs) Grant History of Unvested Stock Grant Date Units Granted Unvested Totals: Total value of units: RSU's received on year end paystubs Year Amount Months 2015 12 2014 2013 $0.00 Check One Months Avg Average of 24 & Not using this income Check if copy of incentive plan in file. Total Monthly Income used to qualify: Will need speakers notes.

Asset Depletion Only allowed on Jumbo Alternative
Applicants of retirement age may use Checking, Savings and Investment Accounts Applicants not yet of retirement age (59.5 years old) may use Employment- Related Assets Assets are calculated at 70% of the balance divided by 180 months Refer to the Jumbo Alternative Manual Underwriting Guidelines for additional guidelines Will need speakers notes.

Residual Income Table Sample Will need speakers notes.

Homeowner’s Access This product provides disciplined credit solutions for borrowers who can demonstrate the ability to repay, but otherwise don’t meet agency guidelines DTI up to 60% with compensating factors Non-traditional credit Flexible pay history requirements First time homebuyer solutions including 100% gift from family members and rent-free payment history 30 year Fixed, 5/1 ARM Purchase, Rate/Term Refinance and Cash-Out Refi Maximum LTV 80% Loan Amount up to $2 Million Minimum FICO 620 Unlimited financed properties on primary residences BK/FC/DIL > 24 months; Short Sale < 24 months The Homeowner’s Access Program provides consumers with less than perfect credit the opportunity to obtain mortgage financing. This program is designed to solve for numerous instances where traditional financing options fall short of serving the entire population of borrowers that can prove their ability to repay. There are numerous features and benefits of this program including pay history flexibility and an allowance for borrowers that have had a previous bankruptcy, pre-foreclosure, foreclosure, or deed-in-lieu more than 24 months ago, but have demonstrated re-established credit. No seasoning is required on short sales. Comparison to “old” Fresh Start: DTI now up to 60% vs 50% previously Enhancement to allow unlimited financed properties for primary residence (was previously limited to 20) Now allows non traditional credit Now allows 100%gifts with 0% borrower funds (previously 5%) Now allows delayed financing As with our other portfolio lending products, as a benefit to the borrower, this has no prepayment penalty. Refer to AllRegs for most recent and accurate guidelines.

Homeowner’s Access: ARM & Fixed
PURCHASE AND RATE TERM REFINANCE1,2,4 Occupancy FICO LTV Loan Amount Primary 620 80 $1,500,000 640 75 $1,750,000 70 $2,000,000 Second Home4 $750,000 $1,000,000 CASH-OUT REFINANCE3,4 Second Home Program Matrix Notes: Delayed Financing may be underwritten and priced as a rate term refinance. Maximum LTV per Matrix. Maximum loan amount per Matrix. Rate term cash back amount restriction does not apply. For Rate term transactions, maximum cash back amount is $2,000. For Cash-out transactions, maximum cash back amount is $350,000. DTI > 50% is only allowed on Purchase transactions of primary residences. Refer to the Manual Underwriting Guidelines for additional restrictions on DTIs > 50%. 620 FICOs up to 80% LTV and 1.5M loan amounts Max financing of 2M allowed with 640 FICO at 70% LTV Refer to AllRegs for most recent and accurate guidelines.

Homeowner’s Access: ARM & Fixed Multiple Housing Credit Events > 24 months (from most recent event) in the last 7 years Transaction Type Occupancy FICO LTV Loan Amount DTI Payment History Reserve Requirements Purchase Primary 640 75% $750,000 43% 0x30x24 on all properties. Living rent free and gaps in housing history are not allowed. 6 months (follow remaining requirements for other properties) No limitation on number of events as long as the most recent event is greater than 24 months Rate adjustments will apply. Refer to rate sheets for additional information. When multiple events exist….<review matrix caps for FICO, LTV, DTI, reserves> Refer to AllRegs for most recent and accurate guidelines.

Fresh Start This product is designed for borrowers who have experienced a credit or housing event(s) in the last 24 months. No mortgage or rental pay history required No seasoning requirement for bankruptcy, foreclosure, deed-in-lieu of foreclosure or short sale 30 year Fixed, 5/1 ARM Purchase, Rate/Term Refinance and Cash-Out Refi LTV up to 80% Loan Amounts $100,000 to $2,000,000 DTI up to 50% Minimum credit score 580 Over the past few years, many hard-working people who lost their homes or were forced into bankruptcy due to a layoff or reduced income have since rebuilt their credit and are able to demonstrate their ability to repay. For these borrowers who may be unable to obtain mortgage financing due to seasoning or other requirements, Fresh Start may be the lending solution they have been looking for. This program will help borrowers who may have experienced these events to re-establish or establish homeownership. As with our other portfolio lending products, as a benefit to the borrower, this has no prepayment penalty. Comparison to “old” Fresh Start: Loan amounts up to $2M (previously $1M) Enhancement to allow unlimited financed properties for primary residence (was previously limited to 20) Secondary financing is not allowed Now allows delayed financing Refer to AllRegs for most recent and accurate guidelines.

Fresh Start: ARM & Fixed
PURCHASE AND RATE TERM REFINANCE1,2 Occupancy FICO LTV Loan Amount Primary 580 80 $1,500,000 75 $1,750,000 70 $2,000,000 Second Home $750,000 $1,000,000 CASH-OUT REFINANCE3 620 Program Matrix Notes: Delayed Financing may be underwritten and priced as a rate term refinance. Maximum LTV per Matrix. Maximum loan amount per Matrix. Rate term cash back amount restriction does not apply. For Rate term transactions, maximum cash back amount is $2,000. For Cash Out transactions, maximum cash back amount is $350,000 580 FICOs up to 80% LTV and 1.5M loan amounts Max financing of 2M allowed with 580 FICO at 70% LTV Refer to AllRegs for most recent and accurate guidelines.

Fresh Start: ARM & Fixed
Multiple Housing Credit Events in the last 7 years Transaction Type Occupancy FICO LTV Loan Amount DTI Payment History Reserve Requirements Purchase Primary 640 70% $750,000 43% No payment history required. 6 months (follow remaining requirements for other properties) No limitation on number of events Rate adjustments will apply. Refer to rate sheets for additional information. When multiple events exist….<review matrix caps for FICO, LTV, DTI, reserves> Important note in comparison to Homeowner’s Access program, if events are within 24 months, LTV is capped at 70% vs. 75%. Refer to AllRegs for most recent and accurate guidelines.

Event Type & Dates Event Type Event Date Bankruptcy
Dismissal/Discharge Foreclosure Completion Deed in Lieu of Foreclosure Pre-Foreclosure Notice of Default Modification Modification Effective Date Short Sale What constitutes as an event?

What is considered a “multiple event”?
Multiple Events What is considered a “multiple event”? An applicant that has more than one Foreclosure, Short Sale or Deed in lieu within a 7-year period that was not inclusive to a Bankruptcy filing. Only 1 Bankruptcy is allowed within the last 7 year period. Furthermore, multiple events could be separated by months or years depending upon the activity, location or action taken. Multiple Events will result in: Rate adjustment Restrictions to LTV and DTI <<read slide, then below>> NOTE: If the applicant has multiple events that were included in a bankruptcy, it would be considered a single event for the BK. If the foreclosure or short sale occurred later, and was not a part of the BK, the borrower must be considered until the multiple events guidelines.

Investment The Investment Program helps borrowers finance their investment properties outside of the current Agency limitations. Minimum FICO 620 Maximum LTV 80% up to $1.5 Million Unlimited financed properties allowed Delayed Financing treated as Rate Term 30 year Fixed, 5/1 ARM Purchase, Rate/Term Refinance and Cash-Out Refi Loan Amounts from $100,000 up to $2 Million 43% DTI Model Home Leaseback allowed 6% Seller Contributions allowed Cash out up to $350,000 This product is for bonafide investors. With maximum loan amounts up to $2MM, FICO scores as low as 620, and unlimited number of financed properties, the Investor product may be just what your borrowers need to finance their investment properties. If you have more financed properties than agencies allow you are limited on your financing options. Model home leaseback is a unique feature. New home builders generally build model homes during the construction phase of a neighborhood in order to show buyers an example of a well-appointed, finished home. The builder’s cash is tied up in the property until the neighborhood is closed out and the home is sold. The model home leaseback option allows the homebuilder to recover their costs by selling the property, but retaining the right to continue to use the home as a model, hence leasing it from the buyer. For this reason, this program presents a tremendous advantage to the builder. Additionally, since the property type would be considered as commercial, falling outside of Fannie and Free guidelines, it allows an advantage to the buyer by providing financing for the purchase. As with our other portfolio lending products, as a benefit to the borrower, this has no prepayment penalty. Delayed financing allows cash buyers / investors to recoup their cash investment at rate/term LTVs, vs. being subject to cash out LTV limitations. This allows them liquidity to continue to build their investment portfolio. Comparison to “old” Fresh Start: LTV now up to 80% (used to be 70%) Loan amounts up to $2M (previously $1M) Enhancement to allow unlimited financed properties for primary residence (was previously limited to 20) Max financed to Caliber now 5 (used to be 4) Secondary financing is not allowed Model home leasebacks now allowed Now allows delayed financing Refer to AllRegs for most recent and accurate guidelines.

Investment: ARM & Fixed
PURCHASE AND RATE TERM REFINANCE1,2 Occupancy FICO LTV Loan Amount Investment Property 620 80% $1,500,000 75% $1,750,000 70% $2,000,000 CASH OUT REFINANCE3 640 $1,000,000 Program Matrix Notes: Delayed Financing may be underwritten and priced as a rate term refinance. Maximum LTV per Matrix. Maximum loan amount per Matrix. Rate term cash back amount restriction does not apply. For Rate term transactions, maximum cash back amount is $2,000. For Cash Out transactions, maximum cash back amount is $350,000 620 FICO up to 80% LTV and 1.5M loan amounts Up to $2M loan amount with 620 and 70% LTV Cash in hand up to $350,000 with 640 FICO and 75% LTV up to $1M loan amount Refer to AllRegs for most recent and accurate guidelines.

What is “delayed financing”?
Delayed financing allows borrowers who purchase homes with cash to recoup their investment without waiting 6-months post closing to complete a rate-term refinance. How it works: A buyer purchases a home as a cash buyer. Within 12 months after closing, the buyer applies for a refinance and can take cash out up to the amount used to purchase the home plus the financing of closing costs, prepaid fees, and points on the new mortgage loan. May be underwritten and priced as a rate term refinance. Maximum LTV is per the LTV Matrix. LTV is based on the lesser of the Purchase Price or current appraised value. Maximum loan amount is per the LTV Matrix. Rate term cash back amount restriction does not apply. Note – Delayed Financing on owner occupied would be considered a Texas A6 for a Texas Homestead and would be ineligible Delayed financing was originally design to help sell homes which would otherwise go unpurchased, in other words, help buyers and real estate investors purchase “unlendable” homes. Via delayed financing, these buys can purchase the home with cash, perform the necessary repairs, and then do a refinance to recapture the assets used to make the purchase. Delayed financing allows a cash buyer to remain liquid after making a purchase by mortgaging their newly purchased property, recouping their purchase costs to replenish funds or invest elsewhere. This is especially helpful in a competitive market where multiple offers are common, when cash offers are many times considered better than offers with financing contingencies. Another benefit is that buyers planning on using delayed financing can acquire a property faster than someone with financing contingencies or a lengthy mortgage process.

Foreign National The Foreign National Program makes financing a property in the US easier for qualified non-US Citizens. Borrowers do not need a Social Security number or domestic credit report. No FICO required. (Minimum FICO 680 if domestic credit is available) Maximum LTV 70% 30 year Fixed, 5/1 ARM Purchase, Rate/Term Refinance Loan amounts up to $2 Million DTI up to 43% Second home and Investment properties allowed Up to two U.S. financed properties allowed Delayed financing treated as a Rate Term refinance The Foreign National Program from Caliber Home Loans, Inc. helps make buying a second home or investment property in the U.S. easier for qualified non-U.S. citizens who visit the country on business or vacation. This unique product offers borrowers, who can demonstrate the Ability to Repay, fewer restrictions and greater flexibility than other programs. As with our other portfolio lending products, as a benefit to the borrower, this has no prepayment penalty. Refer to AllRegs for most recent and accurate guidelines.

Foreign National: ARM & Fixed
PURCHASE AND RATE TERM REFINANCE1,2 Occupancy FICO LTV Loan Amount Second Home 680* 70%1 $625,000 65%1 $1,000,000 60% $1,500,000 50% $2,000,000 Investment Property Program Matrix Notes: Delayed Financing may be underwritten and priced as a rate term refinance. Maximum 60% LTV. Loan amount is the lesser of the Matrix or $1,500,000. Rate term cash back amount restriction does not apply. For Rate term transactions, maximum cash back amount is $2,000. *FICO minimum is required only if a domestic credit report is obtainable. If one is not present, loan is required to have an international credit report or a credit report obtained from the country of origin sourced thru a US credit reporting agency (Equifax, CBC, Kroll, Core Logic) Loan amounts up to $625,000 with 680 FICO and 70% LTV (no FICO limit if domestic credit is unobtainable) Investment properties up to $1M with 680 FICO and 50% LTV See program summaries & guidelines for additional information on Foreign National. Foreign National training documentation is also available on the training website. Refer to AllRegs for most recent and accurate guidelines.

Product Comparison Column1 Jumbo Alternative Home Owner Access
Fresh Start Investor Foreign National Occupancy 1 - 4 unit Primary Residence unit Second Home 1 - 4 unit Investment Property Second Home 1 unit Investment Property Max Loan Amount $2,000,000 $2,000,000.00 Min Loan Amount $417,000 + $1 $100,000 $200,000 Amortization Term 30 Year FRM 5/1 ARM Interest Only 30 Year FRM 5/1 ARM ARM Qualification Qualified at Note Rate ARM Index 1 Year LIBOR ARM Caps 2/2/6 Max LTV 90% 80% 70% Min FICO 660 620 580 680 (1) Max DTI 50% (2) 60% (2) 43% Number of Financed Properties Primary Residence - Unlimited Second Home- Max 10 Max 4 financed with Caliber w/a max UPB of $4,000,000 Primary Residence - Unlimited Second Home- Max 20 (subject to FICO) Max 4 financed with Caliber Unlimited Max 5 financed with Caliber 2 US financed properties Max 1 financed with Caliber Loan Purpose Purchase Rate & Term Cash Out Purchase Rate & Term Max Cash Out $500,000 $350,000 NA Property Types Single Family 2-4 units PUDs (Detached/Attached) Condos - Warrantable (Detached/Attached) Condos - Non -Warrantable Single Family PUDs (Detached/Attached) Condos - Warrantable (Detached/Attached) Condos - Non -Warrantable Housing/Credit Event Seasoning > 24 months SS no seasoning with 0X30X12 No seasoning required however event must be completed > 24 months Multiple Events Must be > 24 months (from most recent event) Occupancy: Primary Only Max LTV: 75% Max DTI: 43% Min FICO: 640 Max Loan Amount: $750,000 6 months reserves Occupancy: Primary Only Max LTV: 70% Max DTI: 43% Min FICO: 640 Max Loan Amount: $750,000 6 months reserves (1) FICO minimum is required only if a domestic credit report is obtainable. If one is not present, loan is required to have an international credit report or a credit report obtained from the country of origin sourced thru a US credit reporting agency (Equifax, CBC, Kroll, Core Logic) (2) Compensating factors, such as reserves or residual income, are required.

Operations

Operational Support The Loan Scenario desk will:
A Loan Scenario Desk will be available to review scenarios submitted by lenders. The Loan Scenario desk will: Be staffed by Underwriters who have guideline expertise for all of Caliber’s portfolio products Review general questions and loan scenarios submitted on the Portfolio Product Underwriting Scenario Request Form Provide a response within 24 hours. Responses will be provided by either returned or call, depending on the need NOT issue pre-approvals or review actual loan files Be available by at

Correspondent To Do List
For Caliber Portfolio Lending Products, Correspondent must ensure: The loan is underwritten in accordance with applicable Caliber program guidelines Ability to repay requirements are met and documented Borrower best execution is fully documented Compliance with all state and federal regulations including, but not limited to, the issuance of all applicable disclosures

Non-Warrantable Condo Review
As part of our Prior Review Caliber will complete a review of the Non-Warrantable Condo Prior to submission, lender may submit the Non Warrantable Condo to our Condo approval team for prior review and approval, please reach out to your Liaison to submit. Fee for non warrantable condo is $250.00

Conditional Loan Purchase Eligibility
To obtain the Conditional Loan Purchase Eligibility Certificate: Prior to close, the Correspondent should upload and submit credit package to Caliber. Caliber will review the package and provide a Conditional Loan Purchase Eligibility Certificate to let you know that the loan is ready to close. If needed, the Correspondent may upload and submit the Appraisal prior to submitting the credit package. Caliber will perform an appraisal review and order a CDA for all Portfolio Products loans. If the loan is closed in accordance with the Conditional Loan Purchase Eligibility Certificate and in compliance with the Guide, Correspondent will be relieved of Representations and Warranties for credit, appraisal and early payment default. Representations and Warranties are not relieved for compliance, fraud and/or misrepresentation. A Conditional Loan Purchase Eligibility Certificate must be obtained from Caliber prior to close. Caliber will complete due diligence on the appraisal in the form of a CDA or Field Review. Additional conditions based on the appraisal may be provided. Need SLA expectations.

Collateral Review Ordered by Originator Appraisal Order Ordered by Caliber Est. 72 business hours CDA AMC Two appraisals required for purchases over $1.5 million and refinances over $1 million Each product in this suite will require an appraisal, CDA (Collateral Desktop Analysis), and 3rd party review of the collateral by due diligence vendor. Normal process for ordering appraisals will be followed in H2O. Once appraisal is complete, the Processor or CRM will order the CDA. UW will review the CDA when complete. If any field reviews are required, the UW will reach out to the originator prior to ordering. An appraisal coordinator will review the CDA and manage the due diligence reviews with AMC. <read slide> (Reinforce key point is to build in time for the process.)

Conditional Loan Purchase Eligibility
A Conditional Loan Purchase Eligibility Certificate must be obtained from Caliber Home Loans prior to close.

ECOA Notifications ECOA Notification Requirements – Prior-to-Close Purchase Eligibility Review Loans In compliance with ECOA regulations: Caliber will issue a Notice of Incompleteness (NOI) or Notice of Adverse Action (NOA) to the Correspondent, as applicable. Both the NOI and NOA will be addressed to the borrower. The Correspondent will prove the notice to the borrower on Caliber’s behalf. To comply with regulation 12 CFR , if a valuation product is requested as part of the prior-to-close purchase eligibility review, Caliber will provide a copy of this valuation product directly to the borrower, mailed to the borrower’s mailing address on the initial 1003, along with a cover letter indicating that Caliber has reviewed the borrower’s loan on behalf of the Correspondent.

Program guidelines can be found in AllRegs.
The guidelines are designed to be used in conjunction with the Portfolio Lending summaries & Sellers Guide. Refer to Agency Underwriting guidelines for any additional subjects not addressed.

Portfolio Lending Suite

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