.5 Schedule 10
| Loan Level Exceptions | ||||||||||||||||||
| Run Date - 9/XX/2022 | ||||||||||||||||||
| Marketing ID | Recovco Loan ID | Loan #1 | Loan #2 | Loan #3 | Project Name | Detailed Status | Initial Overall Grade | Final Overall Grade | Initial Credit | Initial Value | Initial Compliance | Final Credit | Final Value | Final Compliance | Material Exceptions | Non-Material Exceptions | Resolved Exceptions | Acknowledged Exceptions |
| 900001006 | XX | XX | DSCR Loans 2022 Q3 | Client Reportable | 2 | 2 | 2 | 1 | 1 | 2 | 1 | 1 | *** (OPEN) Loan does not
conform to program guidelines - EV 2 COMMENT: The guidelines, section 35, documentation requires for refinance transaction: the most recent lease agreement and Single Family Comparable Rent Schedule (Form 1007/1000) is required to determine the monthly rent. The subject property is currently vacant due to remodeling. The file included an approved exception (page 372) to used the market rent to calculate the DSCR as the property is currently vacant due to remodeling. |
|||||
| 900001004 | XX | XX | Non-QM Smart Loans 2022 Q3 | Client Reportable | 2 | 2 | 1 | 1 | 2 | 1 | 1 | 2 | *** (OPEN) Homeownership
Counseling List - EV 2 COMMENT: The Homeownership Counseling Disclosure (HOC) is missing. The defect can be cured by providing evidence that shows the disclosure was provided to the consumer within 3-business days of application, 6/XX/2022. |
|||||
| 900001023 | XX | XX | Non-QM Smart Loans 2022 Q3 | Not Applicable | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||
| 900001019 | XX | XX | Non-QM Smart Loans 2022 Q3 | Client Reportable | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||
| 900001003 | XX | XX | Non-QM Smart Loans 2022 Q3 | Client Reportable | 3 | 1 | 1 | 1 | 3 | 1 | 1 | 1 | *** (CURED) TRID - Zero
tolerance violation - EV R COMMENT: This loan failed the charges that cannot increase test. (12 CFR §1026.19(e)(3)(i)) The increase to the following fees on 6/XX/2022 was not accepted because a valid change of circumstance was not provided: Appraisal Fee. A cost to cure in the amount of $95.00 is required. The defect can be cured by reimbursing the consumer or providing a valid reason for the change. If curing the violation with a refund, the following documents are required: LOE to consumer(s), corrected PCCD, copy of the refund, and proof of delivery (mailing label). |
|||||
| 900000986 | XX | XX | DSCR Loans 2022 Q3 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900001008 | XX | XX | Non-QM Smart Loans 2022 Q3 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900000989 | XX | XX | Non-QM Smart Loans 2022 Q3 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900001007 | XX | XX | DSCR Loans 2022 Q3 | 2 | 2 | 2 | 1 | 1 | 2 | 1 | 1 | *** (OPEN) DSCR Is Not
Eligible - EV 2 COMMENT: The subject transaction cash out refinance. The guidelines require a minimum DSCR of 1.15%. The DSCR was calculated using market rent $3,300/$3,246.84 resulting in a DSCR of 1.02%. The file included an approved exception (page 263) to vest loan with delayed financing. The guidelines do not address delayed financing. |
||||||
| 900001013 | XX | XX | June - DSCR Loans Q2 2022 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900001012 | XX | XX | June - DSCR Loans Q2 2022 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900000991 | XX | XX | June - Non-QM Smart Loans Q2 2022 | Client Reportable | 3 | 2 | 1 | 1 | 3 | 1 | 1 | 2 | *** (OPEN) Missing evidence
of TRID Disclosure Delivery - EV 2 COMMENT: The PCCD issued 7/XX/2022 is inaccurate. The amount of reimbursement includes the lender credit provided on CD 6/XX/2022. The reimbursement should have been for $160 instead of $336. *** (OPEN) TRID - Zero tolerance violation - EV 2 COMMENT: This loan failed the charges that cannot increase test. (12 CFR §1026.19(e)(3)(i)) The increase to the following fees was not accepted because the change was not disclosed within 3-business days: Appraisal Re-Inspection Fee. The change occurred on 6/XX/2022; however, the disclosure was not issued until 6/XX/2022. A cost to cure in the amount of $160.00 is required. The defect can be cured by reimbursing the consumer or providing evidence that the change was disclosed within 3-business days. If curing with a reimbursement, the following documents are required: LOE to consumer(s), PCCD, copy of the refund, and proof of delivery (mailing label). |
|||||
| 900001015 | XX | XX | June - DSCR Loans Q2 2022 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900001014 | XX | XX | June - DSCR Loans Q2 2022 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900001018 | XX | XX | June - DSCR Loans Q2 2022 | 3 | 1 | 3 | 1 | 1 | 1 | 1 | 1 | *** (CURED) Amount of title
insurance is less than mortgage amount - EV R COMMENT: The title commitment $XX was less than the loan amount of $XX. |
||||||
| 900000988 | XX | XX | June - Non-QM Smart Loans Q2 2022 | Not Applicable | 3 | 2 | 1 | 1 | 3 | 1 | 1 | 2 | *** (OPEN) TRID - Zero
tolerance violation - EV 2 COMMENT: This loan failed the charges that cannot increase test. (12 CFR §1026.19(e)(3)(i)) The increase to the following fees was not accepted because the change was not disclosed within 3-business days: Appraisal Fee #2. The change occurred on 5/XX/2022; however, the disclosure was not issued until 5/XX/2022. A cost to cure in the amount of $695 is required. The defect can be cured by reimbursing the consumer or providing evidence that the change was disclosed within 3-business days. If curing with a reimbursement, the following documents are required: LOE to consumer(s), PCCD, copy of the refund, and proof of delivery (mailing label). |
|||||
| 900000987 | XX | XX | June - Non-QM Smart Loans Q2 2022 | 3 | 2 | 3 | 1 | 3 | 1 | 1 | 2 | *** (OPEN) TRID - Zero
tolerance violation - EV 2 COMMENT: This loan failed the charges that cannot increase test. (12 CFR §1026.19(e)(3)(i)) The addition of the following fees on 5/XX/22 was not accepted because a valid change of circumstance was not provided: Title Bringdown Fee. A cost to cure in the amount of $75.00 is required. The defect can be cured by reimbursing the consumer or providing a valid reason for the change. If curing the violation with a refund, the following documents are required: LOE to consumer(s), corrected PCCD, copy of the refund, and proof of delivery (mailing label). |
*** (CURED) Unable to
verify PITI on other mortgage related obligations (ATR) - EV R COMMENT: Missing verification of PITI for rental property on XXXX The 1003 shows no mortgage for the property, but REO report on page 303 indicates there is a mortgage to XX for $XX. No documentation in file to validate. Used lender figures for PITI to calculate ratios pending validation. |
|||||
| 900000985 | XX | XX | June - Non-QM Smart Loans Q2 2022 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900001025 | XX | XX | June - Non-QM Smart Loans Q2 2022 | 3 | 1 | 1 | 1 | 3 | 1 | 1 | 1 | *** (CURED) TRID - Zero
tolerance violation - EV R COMMENT: This loan failed the charges that cannot increase test. (12 CFR §1026.19(e)(3)(i)) The increase to the following fees on 5/XX/22 was not accepted because a valid change of circumstance was not provided: Appraisal Fee. A cost to cure in the amount of $75.00 is required. The defect can be cured by reimbursing the consumer or providing a valid reason for the change. If curing the violation with a refund, the following documents are required: LOE to consumer(s), corrected PCCD, copy of the refund, and proof of delivery (mailing label). |
||||||
| 900001024 | XX | XX | June - Non-QM Smart Loans Q2 2022 | Not Applicable | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||
| 900000994 | XX | XX | June - DSCR Loans Q2 2022 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900000997 | XX | XX | June - Non-QM Smart Loans Q2 2022 | 3 | 1 | 3 | 1 | 1 | 1 | 1 | 1 | *** (CURED) Unable to
verify PITI on simultaneous loan (ATR) - EV R COMMENT: Mortgage documents are not in the current loan file for properties at XX addresses. |
||||||
| 900001011 | XX | XX | June - DSCR Loans Q2 2022 | Not Applicable | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||
| 900001030 | XX | XX | June - Non-QM Smart Loans Q2 2022 | Not Applicable | 3 | 1 | 3 | 3 | 1 | 1 | 1 | 1 | *** (CURED) 1003
Application [information not provide] - EV R COMMENT: Missing full executed initial 1003 from the loan file. *** (CURED) Missing Appraisal - EV R COMMENT: Missing full appraisal from the loan file. *** (CURED) Unable to verify PITI on simultaneous loan (ATR) - EV R COMMENT: Missing PITIA documentation from the loan file for the following properties: XX |
|||||
| 900001029 | XX | XX | June - Non-QM Smart Loans Q2 2022 | Not Applicable | 3 | 1 | 3 | 1 | 1 | 1 | 1 | 1 | *** (CURED) Unable to
verify PITI on simultaneous loan (ATR) - EV R COMMENT: Missing documentation to support the PITI for the follow properties: XX |
|||||
| 900001010 | XX | XX | June - DSCR Loans Q2 2022 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900000984 | XX | XX | June - Non-QM Smart Loans Q2 2022 | 3 | 2 | 2 | 1 | 3 | 2 | 1 | 1 | *** (OPEN) Credit history
insufficient/does not meet guidelines (ATR) - EV 2 COMMENT: The mortgages at XX and XX had 1 time over 30 on each, with different dates in the last 6 months. One is January 2022 and other April 2022. Prior to this. only 30 day late was in January 2020 with XX. Reference pages 787 and 1606. Compensating factors are valid and are noted here for the 2 times over 30. |
*** (CURED) Missing
evidence of TRID Disclosure Delivery - EV R COMMENT: There is no evidence of an initial CD and revised CD provided to the non-borrower. Per regulation, CD(s) must be provided to all who have the right to rescind. The defect can be resolved by providing evidence showing the non-borrower received the disclosure timely. If disclosure was received electronically, the Econsent is required as well. *** (CURED) Not all title holders executed ROR - EV R COMMENT: The Right to Cancel Notice was not signed and dated by the NB with right to rescind. |
|||||
| 900000992 | XX | XX | June - Non-QM Smart Loans Q2 2022 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
| 900000990 | XX | XX | June - DSCR Loans Q2 2022 | 3 | 1 | 3 | 1 | 1 | 1 | 1 | 1 | *** (CURED) Missing Title
evidence - EV R COMMENT: The loan file did not contain a complete title; only the schedule B was provided. Page 553 of the loan file is an invoice from xx; however, the title policy is missing from the file. |
||||||
| 900000999 | XX | XX | June - Non-QM Smart Loans Q2 2022 | Not Applicable | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||
| 900000996 | XX | XX | June - Non-QM Smart Loans Q2 2022 | 3 | 1 | 3 | 1 | 1 | 1 | 1 | 1 | *** (CURED) Unable to
verify PITI on simultaneous loan (ATR) - EV R COMMENT: Mortgage documents are not in the current loan file for properties at XX addresses. |
||||||
| 900000998 | XX | XX | June - Non-QM Smart Loans Q2 2022 | 3 | 1 | 3 | 1 | 1 | 1 | 1 | 1 | *** (CURED) Unable to
verify PITI on simultaneous loan (ATR) - EV R COMMENT: Mortgage documents are not in the current loan file for properties at XX addresses. |
||||||
| 900000993 | XX | XX | May - Non-QM Smart Loans Q2 2022 | 3 | 2 | 3 | 1 | 3 | 2 | 1 | 1 | *** (OPEN) Qualifying
Credit Score does not meet eligibility requirement(s) - EV 2 COMMENT: The XX guidelines dated 9/XX/2021 p. 1 reflects the requirement for a credit score of 680 for a cash out refinance and the credit report reflects the borrowers score as 678. Exception received dated 5/XX/2022 for 678 credit score vs min credit score of 680 for cash out. Compensating factors listed, 46.97 :TV vs 75% max, $22,000 in reserves vs $15,000 required, 27 years self employed and 35% DTI. |
*** (CURED) Missing proof
of hazard insurance - EV R COMMENT: The file is missing proof of insurance for the borrower. *** (CURED) Missing TRID RESPA Disclosures - EV R COMMENT: The consumer(s) was provided the incorrect RTC version. The consumer is refinancing with a new creditor; however, the version provided is for a refinance with the same creditor. Version H-9 was provided; Version H-8 was required. The defect can be resolved by opening rescission and providing the correct ROR version. *** (CURED) Mortgage history for primary residence less than 12 months - EV R COMMENT: The XX guidelines dated 9/XX/2021 p. 14 reflects the requirement to verify the housing payment history as 0x30x12 since the previous mortgage was modified/ The file is missing verification of the pay history. |