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FHA Standard Refinance (No Cash-Out Refinance / Rate and Term)Appraisal Integrity The appraisal report must list FHA as an Intended User of the appraisalCase Numbers FHA case number is assigned to the property, not to the borrower. The original mortgagee must assign the case number to the new mortgagee immediately upon theborrower’s requestoThe original mortgagee may provide processing documents but is not required to do so.Transferring Existing Appraisals The mortgagee, at the borrower’s request, must transfer the appraisal to the second mortgagee within 5business days. The original mortgagee may not charge the borrower a fee for the transfer of any documents. A fee may be negotiated between the original mortgagee and the new mortgagee. However, a fee for thetransfer of documents for Streamline Refinance transactions is not permitted.Transferring Existing Appraisal – New Borrower When an existing appraisal is being used for a different borrower, the mortgagee must:oEnter the new borrower’s information in FHA ConnectionoCollect the appraisal fee from the new borrower and refund the fee to the original borroweroHave the appraiser review the purchase contract and revise the appraisal report for valueadjustments accordingly.Communications with third parties Mortgagees may not discuss the contents of the appraisal with anyone other than the borrow. This includesreal estate agents.Mixed Use A minimum of 51% of the entire building square footage must be residential useShared Wells Shared wells are allowed only when the lender evidences the connection to public or community watersystem is not feasible and the property is not located in an area where local officials have determinedpublic connection to be feasible.For 2-4 unit properties - appraiser to use FNMA 1025 Small Residential Income Property Appraisal Report FormAppraisal must comply with the FHA Appraisal Independence PolicyA Compliance Certification is required for follow-up repairs or completion of items on any new construction loan.AppraiserRequirementsNote: The ECOA Valuations Rule requires copies of appraisals and other written valuations be delivered toborrower promptly upon completion, or three (3) business days before consummation, whichever is earlier.Appraisers must be on FHA’s approved list on the FHA Connection with State Certification designation of CertifiedGeneral or Certified ResidentialThe assigned appraiser must perform the physical inspection of the property. He/she may not sign the appraisalperformed by another appraiserInformation Required before Commencement of AppraisalThe Appraiser must obtain all of the following from the Mortgagee before beginning an appraisal: the land lease, if applicable; surveys or legal descriptions, if available; any other legal documents contained in the loan file; and a point of contact and contact information for the Mortgagee so that the Appraiser can communicate anynoncompliance issues.AssetsAppraiser must comply with the FHA Appraisal Independence PolicyIf assets are needed to close, verification of the assets is required regardless of the amount needed to close. Thefollowing documents are required: Verification of Deposit and Most recent bank statementOR Two months bank statementsReduced documentation eligible if an Approve recommendation is issued by Total ScorecardNote: A written VOD cannot be standalone documentation. At least one month’s bank statement is required with a1/1/20Wholesale LendingPage 3 of 26 2018 Impac Mortgage Corp. NMLS# 128231. NMLS Consumer Access – www.nmlsconsumeraccess.org. Registered trade/service marks are the property of Impac Mortgage Corp. and/orits subsidiaries. All illustrations and designs are the property of Impac Mortgage Corp., and/or its affiliates. Information shown is subject to change without notice. Rates, fees and programsare subject to change without notice. Information is intended solely for mortgage bankers, mortgage brokers, financial institutions and correspondent lenders. Not intended for distribution toconsumers, as defined by Section 1026.2 of Regulation Z, which implements the Truth-In-Lending Act. Licensed by the Department of Corporations under the California ResidentialMortgage Lending Act (License #4131083). In the state of New York, Impac Mortgage Corp. dba Excel Mortgage.

FHA Standard Refinance (No Cash-Out Refinance / Rate and Term)VOD (Impac overlay).Reserves 1 - 2 units – None 3 - 4 units – 3 months PITI If using "significant reserves" as a compensating factor, a minimum 3 months PITI must be documented. Only retirement accounts accessible for liquidation may be counted as reserves. Accounts not accessed for liquidation by the borrower until retirement age may not be counted as part ofthe borrower reserves See ML2014-02 for new reserve requirements and compensating factors on manually underwritten loanseffective with case numbers assigned on or after April 21, 2014. Effective with case numbers assigned on or after April 21, 2014, excess gift funds may not be counted asreserves for manually underwritten loans For TOTAL Scorecard approvals the portion of a gift not used to meet closing requirements may becounted as reserves except on loans involving 3-4 unit properties.New Accounts / Large DepositsFor recently opened accounts and recent individual deposits of more than 1 percent of the Adjusted Value, themortgagee must obtain documentation of the deposits.Joint AccountsIf the borrower does not hold the deposit account solely, all non-borrower parties on the account must provide awritten statement that the borrower has full access and use of the funds.Liquid Assets for Cash to Close and ReservesRetirement Accounts (TOTAL) Mortgagee may include up to 60 percent of the value of assets, less any existing loans, from theborrower’s retirement accounts, such as IRAs, thrift savings plans, 401(k) plan, and Keogh accounts,unless the borrower provides conclusive evidence that a higher percentage may be withdrawn aftersubtracting any federal income tax and withdrawal penalties. The portion of the assets not used to meet closing requirements, after adjusting for taxes and penalties,may be counted as reserves. If any portion of the asset is required for funds to close, evidence of liquidation is required.Cryptocurrencies (e.g., Bitcoin, Ethereum) are not allowed as eligible assets for any portion of a mortgagetransaction including down payment, closing costs, or reserves.AssumptionsPermitted – Credit worthy borrowers onlyBorrower EligibilityAt least one borrower on the refinancing mortgage must hold title to the property being refinanced prior to casenumber assignment.U.S. citizenship is not required Mortgagee must determine the U.S. residency status of the borrower based on information provided on themortgage application and other application documentation In no case is a Social Security card sufficient to prove immigration or work statusAll borrowers, including permanent resident aliens must have a valid social security number. Validate the socialsecurity number using any one of the following: Social Security Card Pay stub W-2 Tax Transcripts Validation from SSAPermanent Resident Aliens Same eligibility requirements as US Citizens Evidence of lawful, permanent residency issued by the Bureau of Citizenship and Immigration Services(BCIS) formerly the INS. Copy of the Alien Registration Receipt Card (Resident Alien card), I-551Non-Permanent Resident Aliens Property will be borrower’s principal residence Borrower has a valid SSN Borrower is eligible to work in the United States, as evidenced by the Employment Authorization Documentissued by the USCIS Borrower satisfies the same requirements, terms and conditions as those for U.S. citizensInter Vivos Revocable TrustThe mortgagee may originate a mortgage for a living trust for a property held by the living trust, provided:1/1/20Wholesale LendingPage 4 of 26 2018 Impac Mortgage Corp. NMLS# 128231. NMLS Consumer Access – www.nmlsconsumeraccess.org. Registered trade/service marks are the property of Impac Mortgage Corp. and/orits subsidiaries. All illustrations and designs are the property of Impac Mortgage Corp., and/or its affiliates. Information shown is subject to change without notice. Rates, fees and programsare subject to change without notice. Information is intended solely for mortgage bankers, mortgage brokers, financial institutions and correspondent lenders. Not intended for distribution toconsumers, as defined by Section 1026.2 of Regulation Z, which implements the Truth-In-Lending Act. Licensed by the Department of Corporations under the California ResidentialMortgage Lending Act (License #4131083). In the state of New York, Impac Mortgage Corp. dba Excel Mortgage.

FHA Standard Refinance (No Cash-Out Refinance / Rate and Term) The beneficiary of the living trust is a cosignerThe beneficiary will occupy the property as their principal residenceThe trust provides reasonable means to assure that the mortgagee will be notified of any changes to the trust,including transfer of beneficial interest and any changes in occupancy status of the propertyThe mortgagee must obtain a copy of the trust documentationPower of Attorney (POA) is not allowed on inter vivos trusts (Impac overlay)Ineligible Calculating the NewMortgage Amountwith an AppraisalForeign NationalsLand TrustsGovernmental entities and FHA-approved nonprofit corporationsCalculating Maximum Mortgage Amount: DebtsThe existing debt that can be included in a rate and term refinance: The unpaid principal balance of the first mortgage as of the month prior to mortgage disbursement The unpaid principal balance of any purchase money junior mortgage as of the month prior to mortgagedisbursement The unpaid principal balance of any junior liens over 12 months old as of the date of mortgagedisbursement. If the balance or any portion of an equity line of credit in excess of 1,000 was advancedwithin the past 12 months and was for purposes other than repairs and rehabilitation of the property, thatportion above and beyond 1,000 of the line of credit is not eligible for inclusion in the new mortgage Ex-spouse or co-borrower equity, per HUD guidelines “Refinancing to buy out title holder equity” Interest due on the existing mortgage(s) Mortgage insurance Premium (MIP) due on existing mortgage Any prepayment penalties assessed Late charges, and Escrow shortagesCalculating Maximum Mortgage Amount: Additional CostsAdditional costs associated with the transaction may be able to be financed in to the rate and term transactionincluding: Allowed costs include all borrower-paid costs associated with the new mortgage; and Any borrower-paid repairs required by the appraisalMaximum Mortgage Calculation for Rate-Term Refinance TransactionsStep One: National Mortgage LimitNationwide Mortgage Limit for the area (MSA orcounty)Step Two: Sum of Existing Debt and Costs Associated with TransactionUnpaid Principal Balance of the First Mortgage as ofthe month prior to mortgage disbursementUnpaid principal balance of any purchase money juniormortgage as of the month prior to mortgagedisbursementJunior liens over 12 months old as of date of mortgagedisbursement. If HELOC and excess over 1000within last 12 months for purposes other than repairs –then not eligibleEx-Spouse or co-borrower equity acceptable to FHAguidelinesPrepayment penaltiesLate chargesEscrow ShortagesBorrower paid costs associated with new mortgageBorrower paid repairs required by appraisalIf paying off an FHA MortgageUpfront Mortgage Insurance RefundTOTAL(-) Step Three: Loan to ValueAdjusted Value1/1/20 Wholesale LendingPage 5 of 26 2018 Impac Mortgage Corp. NMLS# 128231. NMLS Consumer Access – www.nmlsconsumeraccess.org. Registered trade/service marks are the property of Impac Mortgage Corp. and/orits subsidiaries. All illustrations and designs are the property of Impac Mortgage Corp., and/or its affiliates. Information shown is subject to change without notice. Rates, fees and programsare subject to change without notice. Information is intended solely for mortgage bankers, mortgage brokers, financial institutions and correspondent lenders. Not intended for distribution toconsumers, as defined by Section 1026.2 of Regulation Z, which implements the Truth-In-Lending Act. Licensed by the Department of Corporations under the California ResidentialMortgage Lending Act (License #4131083). In the state of New York, Impac Mortgage Corp. dba Excel Mortgage.

FHA Standard Refinance (No Cash-Out Refinance / Rate and Term)x LTV Factor (see below)97.75% - Occupied as principal residence for 12months or occupied since acquisition if acquired within12 months, at case number assignment85% - Occupied as principal residence fewer than 12months prior to the case number assignment date; or ifowned less than 12 months has not occupied theproperty for that entire period of ownership Step Four: Maximum Loan AmountThe maximum mortgage amount is the lesser of:Step 1, Step 2, or Step 3 The maximum base mortgage calculation may never exceed the statutory limit except by the amount of anynew Up-Front MIP.Refer to Geographic Locations for additional state specific restrictions and requirements.Co-BorrowersReview FHA Maximum Mortgage Calculation Worksheets at the end of this matrix.Co-Borrower Co-borrower must take title to the property Co-borrower must sign all documents including the Loan Application, Note and the Mortgage/Deed ofTrust Income, assets and debts from all borrowers (including co-borrowers) are used in qualifying Co-borrower must have a principal residence in the U.S. Co-borrower does not have to occupy the subject property. If the LTV exceeds 75% and the co-borrower(s) will not occupy, the following additional requirementsmust be met: Subject must be a 1-unit property The Co-borrower(s) must be a close family member (child, parent, grandparent, spouse, adoptedson or daughter, stepson, stepdaughter) or have a long-standing relationship (must be able todocument) with the borrower If the co-borrower is unrelated or does not have a long standing relationship with theborrower, the maximum LTV is 75%Co-signers - ineligibleCreditNon-occupant co-borrowers must always have a qualifying credit score.Payoff Statement RequirementsThe mortgagee must obtain the payoff statement for all existing mortgages.Valid Social Security Number The mortgagee must document and validate for each borrower their valid social security number.Borrower Ineligibility Due to Delinquent Federal Non-Tax DebtMortgagees are prohibited from processing an application for an FHA-insured Mortgage for Borrowers withdelinquent federal non-tax debt, including deficiencies and other debt associated with past FHA-insured Mortgages.Mortgagees are required to determine whether the borrowers have delinquent federal non-tax debt. Mortgageesmay obtain information on delinquent Federal Debts from public records, credit reports or equivalent, and mustcheck all Borrowers against the Credit Alert Verification Reporting System (CAIVRS). If a delinquent Federal Debt is reflected in a public record, credit report or equivalent, or CAIVRS or anEquivalent System, the Mortgagee must verify the validity and delinquency status of the debt bycontacting the creditor agency to whom the debt is owed. If the debt was identified through CAIVRS, theMortgagee must contact the creditor agency using the contact phone number and debt reference numberreflected in the Borrower’s CAIVRS report. If the creditor agency confirms that the debt is valid and in delinquent status as defined by the DebtCollection Improvement Act, then the Borrower is ineligible for an FHA-insured Mortgage until theBorrower resolves the debt with the creditor agency. The Mortgagee may not deny a Mortgage solely on the basis of CAIVRS information that has not beenverified by the Mortgagee. If resolved either by determining that the information in CAIVRS is no longervalid or by resolving the delinquent status as stated above, the Mortgagee may continue to process themortgage application. Verified delinquent federal non-tax debt makes the borrower ineligible. In order for a Borrower with verified delinquent Federal Debt to become eligible, the Borrower mustresolve their federal non-tax debt in accordance with the Debt Collection Improvement Act. The creditor1/1/20Wholesale LendingPage 6 of 26 2018 Impac Mortgage Corp. NMLS# 128231. NMLS Consumer Access – www.nmlsconsumeraccess.org. Registered trade/service marks are the property of Impac Mortgage Corp. and/orits subsidiaries. All illustrations and designs are the property of Impac Mortgage Corp., and/or its affiliates. Information shown is subject to change without notice. Rates, fees and programsare subject to change without notice. Information is intended solely for mortgage bankers, mortgage brokers, financial institutions and correspondent lenders. Not intended for distribution toconsumers, as defined by Section 1026.2 of Regulation Z, which implements the Truth-In-Lending Act. Licensed by the Department of Corporations under the California ResidentialMortgage Lending Act (License #4131083). In the state of New York, Impac Mortgage Corp. dba Excel Mortgage.

FHA Standard Refinance (No Cash-Out Refinance / Rate and Term) agency that is owed the debt can verify that the debt has been resolved in accordance with the DebtCollection Improvement Act.The Mortgagee must include documentation from the creditor agency to support the verification andresolution of the debt. For debt reported through CAIVRS, the Mortgagee may obtain evidence ofresolution by obtaining a clear CAIVRS report.Mortgage Payment History Requirements Loan must be current for the month due (payment due in the month of closing may be paid either in cash orfinanced) Housing (Mortgage/Rental) Payment History (PITIA) is inclusive of all liens regardless of position, as well as alloccupancy types. Obtain up to a 12-month or life of loan payment history on all real estate owned via Residential MortgageCredit Report, Tri-merged in-file credit report, cancelled checks or VOM showing payments are current. AUS Approve – Mortgage history evaluated by TOTAL Scorecard. Loans will be ineligible with one or morehousing (mortgage/rental) delinquency of 60, 90, 120, 150 days or greater reported within 12 months of thedate of the credit report.AUS Refer requires Underwriter reviewMortgage Payment History Requirements – Manually Underwritten 6 Months of Mortgage Payment History 6 Months of Mortgage Payment History0x30 for all mortgages for the 6 months prior to case0x30number assignment, and no more than:1x30 for the 6 months previous for all mortgages.--- The borrower must have made the payments for all mortgages secured by the subject property for themonth prior to mortgage disbursement.Minimum Credit Score Requirements (see Loan Amount & LTV Limitations) 580 for both AUS TOTAL Scorecard approvals and manual underwrite Non-traditional credit is ineligibleMinimum Decision Credit Score (MDCS)A minimum decision credit score is determined for each borrower. Where the loan involves multiple borrowers,select the lowest minimum decision credit score for all borrowers. Where the loan involves multiple borrowers andone or more of the borrowers do not have a credit score (non-traditional or insufficient credit), use the lowestminimum decision credit score of the borrower(s) with credit score(s). If the borrower’s MDCS is at or above 580then the borrower is eligible for maximum financing.Non-traditional CreditBorrowers with non-traditional credit (or insufficient credit) must qualify based on the guidance in HUD 4000.1If TOTAL renders an “accept/approve” risk classification, it can be relied on (subject to correct data) EXCEPT whennone of the owner-occupants has a credit score. In such cases, the loan must be underwritten using theinsufficient credit underwriting guidelines.Borrower with one credit score eligible as follows: TOTAL Scorecard Approve/Eligible decision required Credit data is available from one repository and credit score is obtained from that repository A three in-file merged credit report was orderedA loan that has either: A combination of borrower(s) with score(s) and borrower(s) with no score that receives a “Refer” or“Manual Downgrade” or None of the occupant borrowers have a scoremust be evaluated according to HUD Handbook 4000.1. FHA prefers that all non-traditional credit references beverified by a credit bureau and reported back to the lender as a non-traditional mortgage credit report (NTMCR) inthe same manner as traditional credit references. Impac requires non-traditional credit reports from Impacapproved credit agencies.Authorized User (TOTAL)Accounts for which the borrower is an authorized user must be included in a borrower’s DTI ratio unless themortgagee can document that the primary account holder has made all required payments on the account for theprevious 12 months. If less than three payments have been required on the account in the previous 12 months, thepayment amount must be included in the borrower’s DTI.Non-Borrowing Spouse (see also Documentation)The mortgagee must obtain a credit report for a non-borrowing spouse who resides in a community property state,or if the subject property is located in a community property state. The credit report must indicate the nonborrowing spouse’s SSN, where an SSN exists, was matched with the SSA, or the mortgagee must either provideseparate documentation indicating that the SSN was matched with the SSA or provide a statement that the non1/1/20Wholesale LendingPage 7 of 26 2018 Impac Mortgage Corp. NMLS# 128231. NMLS Consumer Access – www.nmlsconsumeraccess.org. Registered trade/service marks are the property of Impac Mortgage Corp. and/orits subsidiaries. All illustrations and designs are the property of Impa

FHA Standard Refinance (No Cash-Out Refinance / Rate and Term) 1/1/20 Wholesale Lending Page 2 of 26 2018 Impac Mortgage Corp. NMLS# 128231. NMLS Consumer Access – www.nmlsconsumeraccess.org. Registered trade/serv