Essex Non-Agency Products Table of Contents Expanded Prime - PDF document

Essex Non-Agency Products Table of Contents Expanded Prime ..............................................2 - 2.5 to 5% of what we fund Near Prime ..................................................... .3 - 60 to 65% of what we fund Non-Prime ...................................................... 4 - 20 to 25% of what we fund Investor Advantage .......................................5 - 10 to 12% of what we fund * and growing. Foreign National ............................................ . 6 - 3 to 4% of what we fund 3 rd Edition 1

Essex - Non-Agency Products Expa pande nded P d Prime Prime customers that were left out of government underwriting guides (FNMA / FHLMC / FHA / VA) after Dodd-Frank. The most common prospects and reasons for this program are: • Self-employed that need bank statement 1 • Jumbo cash-out loans (up to $1M cash back ) High-Level Specs • No prepayment penalty • Primary & 2 nd Homes • No PMI • Loan Types – 5/1 ARM, 7/1 ARM, 30-year fixed • Max LTV = 85% (see program matrix) • Min Credit = 660 (see program matrix) • Up to 50% DTI (see program matrix) • Mortgage History = 0x30x12 • Income Type: Full Doc o 12 & 24-Month Personal o 24-Month Business Bank Statement + Customer Created P&L o • 5-year seasoning: Foreclosure / Short Sale / Deed In Lieu / Loan Mod o Bankruptcies: o  Discharge for Chapter 7  Discharge or Dismissal for Chapter 11 / 13 • Standard Reserve Requirements: 6 / 9 / 12 Months PITIA (see program matrix) o • Standard Residual Income Requirements: $2,500 / month + $150 / dependent o 3 rd Edition 2

Essex - Non-Agency Products Near Near P Prime rime (50% + of our Non-Agency business) High quality customers that fall just outside government underwriting guides. The most common prospects and reasons for this program are: • Self-employed that need bank statement income *Bank statement options available to 90%LTV • Jumbo loans with higher LTVs, higher DTIs, and/or lower credit scores vs traditional jumbo options • Jumbo cash-out loans (up to $1M cash back) • Investors looking to purchase with minimal down payment or higher cash-out limits • Investors who have 10+ financed properties (we have no limit) • Customers who need Asset Depletion income • Interest Only High-Level Specs • Primary, 2 nd home, Investment Property • No PMI • Income Type: Full Doc (1 or 2 year) o 12 & 24-Month Personal o 24-Month Business Bank Statement + Customer Created P&L o • Interest Only options available up to 85% LTV I/O Term Options – 30 & 40-year term available on the 5/1 & 7/1 ARM o • Loan Types – 5/1 ARM, 7/1 ARM, 30-year fixed • Mortgage History = 1x30x12 • 3-year seasoning: Foreclosure / Short Sale / Deed In Lieu / Loan Mod / Bankruptcy (7, 11, 13) o • Standard Reserve Requirements: 6 / 12 Months PITIA (see program matrix) o Primary & 2 nd Homes: • No prepayment penalty • Max LTV = 95% (see program matrix) 2 nd Home Max LTV = 85% o • Min Credit = 620 (see program matrix) • Max cash-out = $1M • Up to 55% DTI (see program matrix) • Standard Residual Income Requirements: $2,500 / month + $150 / dependent o Investment Properties: • Prepayment penalty (3 years) with ability to buy down (2 / 1 / 0 years) • Max LTV = 85% (see program matrix) • Min Credit = 620 (see program matrix) • Max cash-out = $500k • Up to 50% DTI • No Residual Income Requirements 3 rd Edition 3

Essex - Non-Agency Products Non-Prime me Recovering credit customers still worthy of lending options. The most common prospects and reasons for this program are: • Customers that need flexibility on credit, DTI, bankruptcy, and/or housing events, and are/have: Self-employed that need bank statement income o Jumbo loans o Jumbo cash-out loans (up to $500k cash back) o Investors who have 10+ financed properties (we have no limit) o Interest only o High-Level Specs • Primary, 2 nd home, Investment Property • No PMI • Income Type: Full Doc (1 or 2 year) o 12 & 24-Month Personal o 24-Month Business Bank Statement + Customer Created P&L o • Interest Only options • Loan Types – 5/1 ARM, 7/1 ARM, 30-year fixed • Max cash-out = $500k Primary & 2 nd Homes: • No prepayment penalty • Max LTV = 85% (see program matrix) 2 nd Home Max LTV = 80% o • Min Credit = 500 (see program matrix) • Up to 55% DTI (see program matrix) • Limited Tradeline option • 1-Day Seasoning Options: Foreclosure / Short Sale / Deed In Lieu / Loan Mod / Bankruptcy Discharged (7 / 11 / 13) o • Standard Reserve Requirements: 3 / 6 Months PITIA (see program matrix) o • Standard Residual Income Requirements: $1,500 / month + $150 / dependent o Investment Properties: • Prepayment penalty (3 years) with ability to buy down (2 / 1 / 0 years) • Max LTV = 80% (see program matrix) • Min Credit = 580 (see program matrix) • Up to 50% DTI (see program matrix) • 2-year seasoning: Foreclosure / Short Sale / Deed In Lieu / Loan Mod / Bankruptcy (7 / 11) o  1-day seasoning for Chapter 13 discharge • Standard Reserve Requirements: 6 Months PITIA (see program matrix) o • No Residual Income Requirements 3 rd Edition 4

Essex - Non-Agency Products Investor A Adv dvant ntage Customers looking to purchase investment properties that cannot or do not want to income qualify, or own multiple financed properties. The most common prospects or reasons for this program are: • Investors with more than 10 financed properties (we have no limit) • Investors with income that cannot be proven/sourced • Investors who cannot leverage themselves via a home mortgage for some other reason related to income High-Level Specs • Prepayment penalty (3 years) with ability to buy down (2 / 1 / 0 years) • Investment properties only • No PMI • Income Type: No Income, no DSCR o DSCR (better pricing) o • DSCR = Gross Income / PITIA; gross income = lesser of market rent or lease in place • Max LTV = 80% (see program matrix) • Min Credit = 620 (see program matrix) • Mortgage History = 1x30x12 • Interest only options • Loan types – 3/1 ARM, 7/1 ARM, 10/1 ARM • Max cash-out = $500k • 2-year seasoning: Foreclosure / Short Sale / Deed In Lieu / Loan Mod / Bankruptcy (7 / 11 / 13) o • No Reserve Requirements • No Residual Income Requirements • Property Types: SFR / PUD / Townhome o Condo o  Non-Warrantable = 75% Max LTV 2-4 Unit o  Max LTV 75% 3 rd Edition 5

Essex - Non-Agency Products Fo Foreig ign N Natio ional Customers that are foreign nationals who want access to US real estate. Prospects for this program are: • Canadians with no VISA • Eligible VISA holders, or customers listed on the VWP (VISA Waiver Program) • Customers not listed on Exclusionary Lists / OFAC / Diplomatic Immunity High-Level Specs • Prepayment penalty (3 years) with ability to buy down (2 / 1 / 0 years) • No PMI • VISA Types: B-1 & B-2 I O-2 o o o H-2 & H3 J-1 & J-2 P-1 & P-2 o o o • Income Type: Full Doc o  Asset Depletion available on Purchase & Rate/Term No Income, no DSCR o DSCR o • DSCR = Gross Income / PITIA; gross income = lesser of market rent or lease in place • Max LTV = 75% (see program matrix) • Credit: Standard: 3 tradelines reporting for 24+ months all with activity in the last 12 months o Foreign credit references (see guidelines) o • Mortgage History = 1x30x12 • Interest only options • Loan Types – 3/1 ARM, 7/1 ARM, 10/1 ARM • Max cash-out = $500k • 2-year seasoning: Foreclosure / Short Sale / Deed In Lieu / Loan Mod / Bankruptcy (7 / 11 / 13) o • Standard Reserve Requirements: Full Doc = 12 Months o No Income, No DSCR = no reserve requirement o DSCR = no reserve requirement o • No Residual Income Requirements • Property Types: SFR / PUD / Townhome o Condo (warrantable & non-warrantable) o 2-4 Unit o 3 rd Edition 6