Schedule 2

Exception Grades

Run Date - 12/30/2025 6:33:31 PM

Marketing ID

SitusAMC Loan ID

Customer Loan ID

Seller Loan ID

Investor Loan Number

Loan Exception ID

Exception ID

Exception Date

Exception Type

Exception Category

Exception Subcategory

15E Category

Exception

Exception Detail

Exception Information

Compensating Factors

Compensating Factor Information

Applying Party

Follow-up Comments

Cleared Date

Cured Date

Waived Date

Exception Level Grade

DBRS Initial Exception Rating

DBRS Final Exception Rating

Fitch Initial Exception Rating

Fitch Final Exception Rating

Kroll Initial Exception Rating

Kroll Final Exception Rating

Moody's Initial Exception Rating

Moody's Final Exception Rating

S&P Initial Exception Rating

S&P Final Exception Rating

Note Date

Property State

Occupancy

Purpose

Exception Remediation

Overall Initial Loan Grade

Overall Final Loan Grade

Credit Initial Loan Grade

Credit Final Loan Grade

Compliance Initial Loan Grade

Compliance Final Loan Grade

Property Initial Loan Grade

Property Final Loan Grade

Originator QM ATR Status

TPR QM ATR Status

Is Curable

Removed from deal

XX

XX

XX

33785207

12025021845-2800

04/18/2025

Credit

Credit

Credit Documentation

Missing Document

Missing Document: Credit Report not provided

Credit Report and Fraud Report for XX  is not provided.

The representative FICO score exceeds the guideline minimum by at least 40 points.

SitusAMC

Reviewer Comment (2025-04-24): Waived with compensating factors per lender request.

04/24/2025

2

D

B

D

B

D

B

D

B

D

B

XX

TX

Investment

Refinance - Cash-out - Other

D

B

D

B

A

A

N/A

No

Removed from deal

XX

XX

XX

33785208

12025021845-578

04/18/2025

Credit

Loan Package Documentation

Application / Processing

Loan Package Documentation

1003 Error: Birth Date  was not provided

Borrower: XX

Birth Date is not provided.

The representative FICO score exceeds the guideline minimum by at least 40 points.

SitusAMC

Reviewer Comment (2025-04-24): Waived with compensating factors per lender request.

04/24/2025

2

B

B

B

B

B

B

B

B

B

B

XX

TX

Investment

Refinance - Cash-out - Other

D

B

D

B

A

A

N/A

No

Removed from deal

XX

XX

XX

33785209

12025021845-23698

04/18/2025

Credit

Credit

Credit Documentation

Credit

No evidence of fraud report in file

Credit Report: Original // Borrower:XX

No evidence of fraud report in file.

The representative FICO score exceeds the guideline minimum by at least 40 points.

SitusAMC

Reviewer Comment (2025-04-24): Waived with compensating factors per lender request.

04/24/2025

2

C

B

C

B

C

B

C

B

C

B

XX

TX

Investment

Refinance - Cash-out - Other

D

B

D

B

A

A

N/A

No

Removed from deal

XX

XX

XX

33785211

12025021845-4507

04/18/2025

Credit

Loan Package Documentation

Application / Processing

Loan Package Documentation

Missing Document: Certificate of Good Standing not provided

Certificate of Good Standing provided is not recent.

Reviewer Comment (2025-04-23): Clear Buyer Comment (2025-04-21): Please find cert of good standing. Please accept although past 10 days from the Note. Thank you.

04/23/2025

1

C

A

C

A

C

A

C

A

C

A

XX

TX

Investment

Refinance - Cash-out - Other

D

B

D

B

A

A

N/A

No

Removed from deal

XX

XX

XX

33785212

12025021845-4513

04/18/2025

Credit

Loan Package Documentation

Application / Processing

Loan Package Documentation

Missing Document: Articles of Organization/Formation not provided

Reviewer Comment (2025-04-23): Clear Buyer Comment (2025-04-21): Please find attached. Thank you

04/23/2025

1

C

A

C

A

C

A

C

A

C

A

XX

TX

Investment

Refinance - Cash-out - Other

D

B

D

B

A

A

N/A

No

Removed from deal

XX

XX

XX

33785206

12025021845-2798

04/18/2025

Credit

Loan Package Documentation

Application / Processing

Loan Package Documentation

Missing Document: Missing Final 1003

Final 1003 for XX is not provided.

The representative FICO score exceeds the guideline minimum by at least 40 points.

SitusAMC

Reviewer Comment (2025-04-24): Waived with compensating factors per lender request.

04/24/2025

2

C

B

C

B

C

B

C

B

C

B

XX

TX

Investment

Refinance - Cash-out - Other

D

B

D

B

A

A

N/A

No

900000974

XX

XX

XX

34473614

12025050040-25749

06/18/2025

Credit

Missing Document

General

Missing Document

Missing Document: HUD/CD not provided

The settlement statement provided disclosed it is an estimate.  Please provide final signed/stamped settlement statement

Reviewer Comment (2025-07-14): Received Buyer Comment (2025-07-10): 07/10-Pleases see attached FSS

07/14/2025

1

C

A

C

A

C

A

C

A

C

A

XX

FL

Investment

Refinance - Cash-out - Other

C

A

C

A

A

A

N/A

No

900000974

XX

XX

XX

34473615

12025050040-5347

06/18/2025

Credit

Borrower and Mortgage Eligibility

Mortgage / Program Eligibility

Borrower and Mortgage Eligibility

The Certificate of Non-Owner Occupied does not show the borrower(s) at an address different than the subject and thus casts doubt on the business purpose of the loan.

The Non-Owner Occupancy Declaration is incomplete as Section 4A is missing the principal residence address.

Reviewer Comment (2025-07-14): Received completed NOO declaration Buyer Comment (2025-07-10): Please find attached completed section on form. Thank you.

07/14/2025

1

C

A

C

A

C

A

C

A

C

A

XX

FL

Investment

Refinance - Cash-out - Other

C

A

C

A

A

A

N/A

No

900000976

XX

XX

XX

34474639

12025050709-2924

06/26/2025

Credit

Loan Package Documentation

Application / Processing

Missing Document

Missing Document: Fraud Report not provided

Missing complete fraud report.

Reviewer Comment (2025-07-01): clear Buyer Comment (2025-06-30): Fraud

07/01/2025

1

C

A

C

A

C

A

C

A

C

A

XX

FL

Investment

Refinance - Cash-out - Other

C

A

C

A

A

A

N/A

No

900000976

XX

XX

XX

34474641

12025050709-3831

06/26/2025

Credit

Credit

Miscellaneous

Guideline

Credit Exception:

Provide an explanation for the 3 modifications noted on title. (Page 14 Schedule B) Additional conditions may apply.

Reviewer Comment (2025-07-01): Modification are all for extension of maturity date. Buyer Comment (2025-06-30): XX Modification agreements were provided.

07/01/2025

1

C

A

C

A

C

A

C

A

C

A

XX

FL

Investment

Refinance - Cash-out - Other

C

A

C

A

A

A

N/A

No

900000976

XX

XX

XX

34474640

12025050709-30930

06/26/2025

Credit

Title

General

Title

Title Policy Coverage is less than Original Loan Amount.

The Title Policy Amount of $XX is less than the note amount of $XX based on the Commitment in file.

he Title Policy Amount of $XX is less than the note amount of $XX based on the Commitment in file.

Reviewer Comment (2025-07-01): clear Buyer Comment (2025-06-27): 06/27-Please see attached Title

07/01/2025

1

B

A

B

A

B

A

B

A

B

A

XX

FL

Investment

Refinance - Cash-out - Other

C

A

C

A

A

A

N/A

No

900000978

XX

XX

XX

34474878

12025051067-32065

06/23/2025

Credit

Title

Document Error

Title

The Preliminary title policy is within CA or NV and does not reflect a coverage amount (no final title policy in file). Unable to determine if appropriate coverage is provided.

Reviewer Comment (2025-06-26): clear Buyer Comment (2025-06-24): 06/24-Please see attached Title supplement

06/26/2025

1

B

A

B

A

B

A

B

A

B

A

XX

CA

Investment

Refinance - Cash-out - Other

B

A

B

A

A

A

A

A

Exempt from ATR

N/A

No

900000980

XX

XX

XX

34474918

12025051474-2919

06/26/2025

Credit

Loan Package Documentation

Application / Processing

Missing Document

Missing Document: Other not provided

The Articles of Formation/Organization for XX is missing from the file.

Reviewer Comment (2025-07-10): clear Buyer Comment (2025-07-08): See name change to "XX." attached. Thank you.

07/10/2025

1

C

A

C

A

C

A

C

A

D

A

XX

FL

Investment

Refinance - Rate/Term

D

A

D

A

A

A

A

A

Exempt from ATR

N/A

No

900000977

XX

XX

XX

34474986

12025050782-34537

07/07/2025

Credit

Income

Document Error

Income

Bank statement page number is blank.

Borrower: XX // Employment Type: Employment / Income Type: Bank Statements / Start Date: 04/XX/2021 // Account Type: Business / Account Num: XX / Statement End Date: 2024-XX-30, Borrower: XXo // Employment Type: Employment / Income Type: Bank Statements / Start Date: 04/XX/2021 // Account Type: Business / Account Num: XX / Statement End Date: 2024-05-XX

Lender approved exception for 20 months' bank statements fromXX covering the period of 07/2024 - 04/2025, while guidelines require 12 months.  Borrower uses two accounts for business deposits; the second account opened 0/2024.

Borrower has verified disposable income of at least $2500.00. Borrower's monthly reserves have been verified and exceed the amount required based on the guidelines by at least 4 months. The Loan to Value (LTV) on the loan is less than the guideline maximum by at least 10%. The qualifying DTI on the loan is at least 10% less than the guideline maximum.

Documentation Type: 12mo Bank Statement Disposable Income: $51,828.55 Reserves: 52.03 Guideline Requirement: 3.00 Loan to Value: 57.69231% Guideline Maximum Loan to Value: 70.00000% DTI: 21.58335% Guideline Maximum DTI: 50.00000%

Originator Pre-Close,SitusAMC Originator Pre-Close,SitusAMC Originator Pre-Close,SitusAMC Originator Pre-Close,SitusAMC

Reviewer Comment (2025-07-03): Waived with compensating factors per lender exception approval at origination.

07/03/2025

2

B

B

B

B

B

B

B

B

B

B

XX

FL

Investment

Purchase

C

B

C

B

A

A

A

A

Exempt from ATR

N/A

No

900000977

XX

XX

XX

34474988

12025050782-29639

07/07/2025

Credit

Income / Employment

Income Documentation

Income / Employment

Income documentation requirements not met.

The file is missing verification of employment within 20 business days prior to the Note date.

Reviewer Comment (2025-07-10): clear Buyer Comment (2025-07-08): XX is within 20 business days.  Memorial day is not considered a business day in May.

07/10/2025

1

C

A

C

A

C

A

C

A

C

A

XX

FL

Investment

Purchase

C

B

C

B

A

A

A

A

Exempt from ATR

N/A

No

900000977

XX

XX

XX

34474989

12025050782-5404

07/07/2025

Credit

Income / Employment

Income Documentation

Income / Employment

Income Docs Missing:

Borrower: XX Third Party Verification

The file is missing verification of employment within 20 business days prior to the Note date.

Reviewer Comment (2025-07-10): clear Buyer Comment (2025-07-08): XX is within 20 business days. Memorial day is not considered a business day in May.

07/10/2025

1

C

A

C

A

C

A

C

A

C

A

XX

FL

Investment

Purchase

C

B

C

B

A

A

A

A

Exempt from ATR

N/A

No

900000983

XX

XX

XX

34475032

12025060808-2919

07/17/2025

Credit

Loan Package Documentation

Application / Processing

Missing Document

Missing Document: Other not provided

Please provide a Certificate of Good Standing within 12 months of the Note date.

Borrower has verified disposable income of at least $2500.00. Borrower's monthly reserves have been verified and exceed the amount required based on the guidelines by at least 4 months. The qualifying DTI on the loan is at least 10% less than the guideline maximum.

Documentation Type: 12mo Bank Statement Disposable Income: $152,694.67 Reserves: 48.80 Guideline Requirement: 3.00 DTI: 5.17079% Guideline Maximum DTI: 50.00000%

SitusAMC SitusAMC SitusAMC

Reviewer Comment (2025-08-07): Waived with compensating factors at clients request. Buyer Comment (2025-08-06): Lender accepts.  Please waive with available compensating factors Reviewer Comment (2025-07-30): Cannot clear the exception with post closing document. Buyer Comment (2025-07-28): COGS

08/07/2025

2

C

B

C

B

C

B

C

B

D

B

XX

TX

Investment

Refinance - Cash-out - Other

D

B

D

B

A

A

A

A

Exempt from ATR

N/A

No