Client Name:		PennyMac
Client Project Name:		PNMAC - PMTLT 2025-INV8 Securitization_J15916
Conditions Report 2.0
Loans in Report:		368
Loans with Conditions:		178

 

39 - Total Active Conditions
		13 - Material Conditions
				7 - Credit Review Scope
						1 - Category: DTI
						4 - Category: Income/Employment
						1 - Category: Insurance
						1 - Category: Terms/Guidelines
				2 - Property Valuations Review Scope
						2 - Category: Appraisal
				4 - Compliance Review Scope
						1 - Category: Ability to Repay/Qualified Mortgage
						3 - Category: TILA/RESPA Integrated Disclosure
		26 - Non-Material Conditions
				10 - Credit Review Scope
						1 - Category: Assets
						7 - Category: DTI
						1 - Category: Income/Employment
						1 - Category: Terms/Guidelines
				1 - Property Valuations Review Scope
						1 - Category: Property
				15 - Compliance Review Scope
						15 - Category: RESPA
208 - Total Satisfied Conditions
				46 - Credit Review Scope
						2 - Category: Application
						3 - Category: Assets
						3 - Category: Credit/Mtg History
						11 - Category: DTI
						10 - Category: Income/Employment
						2 - Category: Insurance
						1 - Category: Legal Documents
						1 - Category: Re-Verifications
						6 - Category: Terms/Guidelines
						7 - Category: Title
				145 - Property Valuations Review Scope
						134 - Category: Appraisal
						9 - Category: FEMA
						2 - Category: Property
				17 - Compliance Review Scope
						8 - Category: Ability to Repay/Qualified Mortgage
						1 - Category: Documentation
						8 - Category: TILA/RESPA Integrated Disclosure
1 - Total Waived Conditions
				1 - Property Valuations Review Scope
						1 - Category: FEMA

^©2025 Clayton Services LLC. All rights reserved. Ownership and use of this report is governed by the legal agreement between Clayton and the party for which it was prepared. Any use not expressly authorized by such agreement, including reliance on this report by anyone other than such party, is prohibited.

Client Name:		PennyMac
Client Project Name:		PNMAC - PMTLT 2025-INV8 Securitization_J15916
Conditions Report 2.0
Loans in Report:		368
Loans with Conditions:		178

 

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/ Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

1

XXXXXX

XXXXXX

CA

(No Data)

ATR/ QM: Exempt

D

A

A

A

D

A

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

CU score reflects not performed. Clayton to order desk review.

7/10/2025: Received Desk Review supporting value.

7/10/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 762 credit score exceeds guideline minimum FICO of 620. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Cash reserves of $229,743.64 exceeds reserve requirement of $47,573.66. CFCFS1739: Positive mortgage payment history - Clayton Comments: Borrower has 0x30x53.

2

XXXXXX

XXXXXX

NC

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 721 FICO exceeds minimum 620 CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified assets $66,211.29 Required reserves $30,778.96 Post Close reserves $66,176.70

3

XXXXXX

XXXXXX

FL

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post closing assets: $382,980.83 (85.74 months PITIA) > minimum required reserves of $35,834.45. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 727 mid score > minimum required of 620 CFCFS1744: DTI below guideline requirement - Clayton Comments: 14.60% DTI < standard 45% CFCFS1737: LTV below guideline requirements - Clayton Comments: Low LTV @ 24.88%

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

4

XXXXXX

XXXXXX

FL

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1736: Significant time at current residence - Clayton Comments: Borrower has 8 years 8 months at current residence. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Qualifying FICO of 788 is 168 points above the 620 FICO required for the program. CFCFS1737: LTV below guideline requirements - Clayton Comments: LTV of 56.74% is 28.26% below the 85% LTV allowed for the program. CFCFS5269: Minimal use of credit - Clayton Comments: Borrower has a credit line usage ratio of 14.16%.

5

XXXXXX

XXXXXX

PA

(No Data)

ATR/ QM: Exempt

D

A

D

A

D

A

A

A

D

A

D

A

D

A

A

A

Credit

Title

Satisfied

D

A

D

A

CRDTIL796

Missing Title

No

Missing Title report

7/10/2025: Received Title Commitment.

7/10/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1736: Significant time at current residence - Clayton Comments: Both borrowers have 30 years length of time at their primary residence CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Credit score of 794 exceeds minimum required per the lender guidelines CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified cash reserves exceed minimum required per lender guidelines CFCFS1744: DTI below guideline requirement - Clayton Comments: DTI is below maximum allowable per lender guidelines

5

XXXXXX

XXXXXX

PA

(No Data)

ATR/ QM: Exempt

D

A

D

A

D

A

A

A

D

A

D

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Missing updated valuation. CU score of 2.8 > 2.5. Clayton to order desk review

7/10/2025: Received desk review supporting value.

7/10/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1736: Significant time at current residence - Clayton Comments: Both borrowers have 30 years length of time at their primary residence CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Credit score of 794 exceeds minimum required per the lender guidelines CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified cash reserves exceed minimum required per lender guidelines CFCFS1744: DTI below guideline requirement - Clayton Comments: DTI is below maximum allowable per lender guidelines

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/ Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

6

XXXXXX

XXXXXX

FL

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 759 FICO exceeds minimum 620 CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified assets $188,288.55Required reserves $15,721.44Post Close Reserves $76,289.89

7

XXXXXX

XXXXXX

WV

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 779 Credit score exceeds guidelines of 620. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post close reserves are $1,039,597.65 or 484.25 months of PITIA exceeds DU required amount of $17,426.81. CFCFS2854: Significant time in profession - Clayton Comments: Significant time in profession, 18 years. CFCFS1736: Significant time at current residence - Clayton Comments: Significant time at current residence, 15+ years.

8

XXXXXX

XXXXXX

SC

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has 21.083yrs XXX with current employer CFCFS2860: Good credit history - Clayton Comments: Excellent credit history with no late pay/derog line items. 803 median score, 48 months current mortgage history, 2.1% credit usage, oldest current trade 9/2006

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/ Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

9

XXXXXX

XXXXXX

AZ

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1736: Significant time at current residence - Clayton Comments: Co-Borrower has 8 years at current residence. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has 10 years 1 month at current job. CFCFS1735: Co-Borrower has significant time at current job - Clayton Comments: Co-Borrower has 45 years 3 months at current job. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Qualifying FICO of 740 is 120 points above the 620 FICO required for the program. CFCFS1744: DTI below guideline requirement - Clayton Comments: Qualifying DTI (Back) of 32.57% is 12.43% below the 45% allowed for the program.

10

XXXXXX

XXXXXX

NC

(No Data)

ATR/ QM: Exempt

C

C

C

C

A

A

A

A

C

C

C

C

A

A

A

A

Credit

Income/ Employment

Active

C

C

C

C

CRDINC2488

Verbal verification of employment missing

Yes

Missing a verbal verification of employment. The AUS validated employment but the loan did not close within the specified timeframe. The AUS specifies a close date of XXX. The loan closed on XXX.

7/21/2025: Received XXX Written VOE. DU condition #17, shows VVOE used but with a close by date of XXX. DU needs to be re-run to show XXX close by date.

7/21/2025: Exception remains.

(No Data)

Not Applicable

CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified post close assets $73,815.17 or 35.15 months PITI exceed required reserves $12,598.47 or 6 months. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Verified FICO 803. Guideline minimum 620. CFCFS2854: Significant time in profession - Clayton Comments: B1 is in the profession 4 years.

11

XXXXXX

XXXXXX

NC

(No Data)

ATR/ QM: Exempt

D

A

A

A

D

A

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

No LCA score in file. Clayton to order desk review.

7/10/2025: Received desk review supporting value.

7/10/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1736: Significant time at current residence - Clayton Comments: Borrower has 22 years at current residence. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has 7 years at current job. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Qualifying FICO of 806 is 186 points above the 620 FICO required for the program. CFCFS1744: DTI below guideline requirement - Clayton Comments: Qualifying DTI (Back) of 35.24% is 9.76% below the 45% allowed for the program.

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/ Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

12

XXXXXX

XXXXXX

TX

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Credit score of 782 is above the required minimum of 620. CFCFS5269: Minimal use of credit - Clayton Comments: Borrowers have minimal use of credit with credit usage ratio of 7%, 93% available CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: After meeting reserve requirement, additional reserves remain of $26,031.49

13

XXXXXX

XXXXXX

FL

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS2854: Significant time in profession - Clayton Comments: Co-borrower has been in the same profession for 10 years and 1 month. CFCFS1739: Positive mortgage payment history - Clayton Comments: Borrower has 0x30x27 months positive mortgage payment history.

14

XXXXXX

XXXXXX

CO

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

C

C

A

A

C

C

A

A

C

C

A

A

C

C

A

A

Property Valuations

Appraisal

Active

C

C

C

C

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

Yes

Loan is approved with a PIW. Clayton to order BPO.

(No Data)

(No Data)

(No Data)

Not Applicable

CFCFS1740: Mortgage payment history exceeds guidelines - Clayton Comments: 47 months mortgage payment history exceeds minimum required per lender guidelines CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 819 credit score exceeds minimum required per lender guidelines CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has 6 years, 7 months’ time at current job

14

XXXXXX

XXXXXX

CO

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

C

C

A

A

C

C

A

A

C

C

A

A

C

C

A

A

Property Valuations

Property

Satisfied

C

A

C

A

PRVAPROP2674

Property Issues Indicated 2

No

Per LP, subject is in a PUD. The HOA dues are missing as the loan is approved with a PIW. Provide HOA dues amount.

7/14/2025: Received Final CD showing full PITIA.

7/14/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1740: Mortgage payment history exceeds guidelines - Clayton Comments: 47 months mortgage payment history exceeds minimum required per lender guidelines CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 819 credit score exceeds minimum required per lender guidelines CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has 6 years, 7 months’ time at current job

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/ Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

15

XXXXXX

XXXXXX

AZ

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 718 Credit score exceeds guidelines of 620. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post close reserves are $45,799.94 or 16.86 months of PITIA exceeds DU required amount of $16,301.12.

16

XXXXXX

XXXXXX

CA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

A

A

A

D

A

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

CU Score 4.6. Clayton to order desk review

7/14/2025: Received desk review supporting value.

7/14/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Minimum fico 620; Borrower fico 805 CFCFS1737: LTV below guideline requirements - Clayton Comments: Max LTV 90%, LTV 65.97% CFCFS1744: DTI below guideline requirement - Clayton Comments: Max DTI 50%; Borrowers DTI 21%

17

XXXXXX

XXXXXX

TX

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 808 Credit score exceeds guidelines of 620. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post close reserves are $87,452.98 or 31.90 months of PITIA exceeds XXX required amount of $16,446.42. CFCFS2854: Significant time in profession - Clayton Comments: Significant time in profession, 5 + years.

18

XXXXXX

XXXXXX

OH

QM: Safe Harbor

QM: Safe Harbor (APOR)

D

B

D

B

A

A

D

B

D

B

D

B

A

A

D

B

Compliance

Ability to Repay/ Qualified Mortgage

Satisfied

D

A

D

A

CMPATRQM3220

TILA - Loan subject to Ability to Repay/ Qualified Mortgage rule; the loan file is missing documents to complete the ATR/ QM review and render an accurate ATR/QM status.

No

Missing YTD paystub or written VOE supporting the qualifying income of $22,275.00 / month. WVOE in file is blank and no paystub is in file.

7/11/2025: Received 3/15 and 2/28 paystubs. $11,137.50 semi- monthly.

7/11/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified assets $624,047.25. No funds required for closing. Required reserves $113,236.70 per DU. CFCFS1734: Borrower has significant time at current job - Clayton Comments: The borrower has been a XXX for more than 9 years

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/ Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

18

XXXXXX

XXXXXX

OH

QM: Safe Harbor

QM: Safe Harbor (APOR)

D

B

D

B

A

A

D

B

D

B

D

B

A

A

D

B

Compliance

RESPA

Active

B

B

B

B

CMPRESPA863

RESPA: Required Affiliate Business Disclosure missing

No

Affiliate Business Disclosure missing

(No Data)

(No Data)

(No Data)

Not Applicable

CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified assets $624,047.25. No funds required for closing. Required reserves $113,236.70 per DU. CFCFS1734: Borrower has significant time at current job - Clayton Comments: The borrower has been a XXX for more than 9 years

18

XXXXXX

XXXXXX

OH

QM: Safe Harbor

QM: Safe Harbor (APOR)

D

B

D

B

A

A

D

B

D

B

D

B

A

A

D

B

Credit

DTI

Active

B

B

B

B

CRDDTI105

Debt Ratio Exception 5% or Less

No

Lender DTI is 44.46%. Clayton verified 45.63%. There is no tolerance when DTI verified over 45%. AUS must be re-run to show Approve/ Eligible at 45.63%.

(No Data)

(No Data)

(No Data)

Not Applicable

CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified assets $624,047.25. No funds required for closing. Required reserves $113,236.70 per DU. CFCFS1734: Borrower has significant time at current job - Clayton Comments: The borrower has been a XXX for more than 9 years

18

XXXXXX

XXXXXX

OH

QM: Safe Harbor

QM: Safe Harbor (APOR)

D

B

D

B

A

A

D

B

D

B

D

B

A

A

D

B

Credit

Income/ Employment

Satisfied

D

A

D

A

CRDINC2408

Income verification does not meet guidelines

No

Missing YTD paystub or written VOE supporting the qualifying income of $22,275.00 / month. WVOE in file is blank and no paystub is in file.

7/11/2025: Received 3/15 and 2/28 paystubs. $11,137.50 semi- monthly.

7/11/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified assets $624,047.25. No funds required for closing. Required reserves $113,236.70 per DU. CFCFS1734: Borrower has significant time at current job - Clayton Comments: The borrower has been a XXX for more than 9 years

19

XXXXXX

XXXXXX

OH

QM: Safe Harbor

QM: Safe Harbor (APOR)

B

B

A

A

A

A

B

B

B

B

A

A

A

A

B

B

Compliance

TILA/ RESPA Integrated Disclosure

Satisfied

B

B

B

B

CMPTRID3676

TRID - CD: Ten percent tolerance fee or fees increased at or prior to closing without a valid reason or not timely disclosed; refund required within 60 days of consummation.

No

There is a post closing CD dated XXX with a cure of $106.80, curing the 10% violation of fees due to increased taxes and other fees. Exception satisfied.

(No Data)

(No Data)

(No Data)

Not Applicable

CFCFS3834: Borrower does not have any major mortgage related occurrences during the past two years - Clayton Comments: No mortgage lates on credit report. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has 10 years at current job. CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: No lates on consumer credit on credit report. CFCFS1744: DTI below guideline requirement - Clayton Comments: DTI OF 11.44 below 50% guidelines. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Credit score 766 exceed min guidelines

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

20

XXXXXX

XXXXXX

NC

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post closing assets: $41,032.31 (17.78 months PITIA reserves) > minimum required reserves of $19,806.18 CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 800 Credit score exceeds guidelines 620 CFCFS1744: DTI below guideline requirement - Clayton Comments: 35% DTI below guideline requirement 50%

21

XXXXXX

XXXXXX

CA

(No Data)

ATR/ QM: Exempt

D

A

D

A

A

A

A

A

D

A

D

A

A

A

A

A

Credit

Income/ Employment

Satisfied

D

A

D

A

CRDINC3204

Income Documentation Missing

No

Lender used Div/Interest Income. Final 1003 shows $4,948/month. DU requires two years evidence of receipt. 2023 1040s are in the file. Provide required documentation to calculate correct income.

7/10/2025: LP received as AUS used. LP requires two years 1040s or year-end asset account statements for most recent two years to verify income used.7/17/2025: Received 2022 1040s showing two years receipt.

7/10/2025: Exception remains.7/17/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 786 credit score exceeds guidelines 620 CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: $2,864,8899.99 verified cash reserves exceed guidelines CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has significant time at current job 22yrs

21

XXXXXX

XXXXXX

CA

(No Data)

ATR/ QM: Exempt

D

A

D

A

A

A

A

A

D

A

D

A

A

A

A

A

Credit

Terms/ Guidelines

Satisfied

D

A

D

A

CRDTER2548

Missing AUS or AUS errors present

No

Missing AUS -Unable to determine AUS used to approve loan

7/10/2025: Received LP Findings #XXX LP Key #XXX 5/1/2025.

7/10/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 786 credit score exceeds guidelines 620 CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: $2,864,8899.99 verified cash reserves exceed guidelines CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has significant time at current job 22yrs

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/ Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

21

XXXXXX

XXXXXX

CA

(No Data)

ATR/ QM: Exempt

D

A

D

A

A

A

A

A

D

A

D

A

A

A

A

A

Credit

Title

Satisfied

D

A

D

A

CRDTIL796

Missing Title

No

Missing Title.

7/10/2025: Received Prelim Title.

7/10/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 786 credit score exceeds guidelines 620 CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: $2,864,8899.99 verified cash reserves exceed guidelines CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has significant time at current job 22yrs

22

XXXXXX

XXXXXX

WA

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 788 FICO exceeds program min allowable of 620. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has 8 years and 2 months at current job. CFCFS1737: LTV below guideline requirements - Clayton Comments: 54.52% LTV is below program max allowable of 75%. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post Close assets of $93,268.31 exceeds the minimum required reserves of $32,534.76

23

XXXXXX

XXXXXX

WA

(No Data)

ATR/ QM: Exempt

D

A

A

A

D

A

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

CU score >2.5. Clayton to order desk review

7/14/2025: Received desk review supporting value.

7/14/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Verified credit score 751. Minimum required 620 CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post closing assets: $430,466.42 (104.87 months PITIA reserves) > minimum required reserves of $103,423.06 CFCFS1737: LTV below guideline requirements - Clayton Comments: Verified LTV 74%. Max 85%

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/ Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

24

XXXXXX

XXXXXX

OH

(No Data)

ATR/ QM: Exempt

D

A

A

A

D

A

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

CU score not preformed for this non-UAD form type. Clayton to order desk review.

7/11/2025: Received desk review supporting value.

7/11/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 799 credit score exceeds guideline minimum FICO of 620. CFCFS1744: DTI below guideline requirement - Clayton Comments: 33.01% DTI is below guideline maximum of 45%. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Cash reserves of $86,176.95 exceeds reserve requirement of $24,610.86.

25

XXXXXX

XXXXXX

WA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

A

A

A

D

A

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Missing updated valuation. The Collateral Underwriter Risk Score is 5.

7/11/2025: Received desk review supporting value.

7/11/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1737: LTV below guideline requirements - Clayton Comments: Verified 57.58% LTV. Max allowed 90%. CFCFS1744: DTI below guideline requirement - Clayton Comments: Verified 14.77% DTI. Max allowed 45%.

26

XXXXXX

XXXXXX

UT

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verifies cash reserves exceed guidelines CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Credit score exceeds guidelines CFCFS1744: DTI below guideline requirement - Clayton Comments: DTI is below maximum allowable per lender guidelines

27

XXXXXX

XXXXXX

NC

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1734: Borrower has significant time at current job - Clayton Comments: B1 has 6 years & 2 months at current job CFCFS1736: Significant time at current residence - Clayton Comments: Borrower has 6 years & 8 months at current residence CFCFS1740: Mortgage payment history exceeds guidelines - Clayton Comments: Borrower Mortgage payment 0x30x99

28

XXXXXX

XXXXXX

PA

(No Data)

ATR/ QM: Exempt

D

A

A

A

D

A

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

No LCA score. Clayton to order desk review.

7/11/2025: Received desk review supporting value.

7/11/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower1 has over 19 years at current job. CFCFS1737: LTV below guideline requirements - Clayton Comments: LTV of 75% is below the maximum allowable of 85%. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Reserves of $271,017.73 exceeds the required $22,088.16 reserves.

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/ Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

29

XXXXXX

XXXXXX

MA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

A

C

B

D

B

A

A

D

A

C

B

Compliance

TILA/ RESPA Integrated Disclosure

Satisfied

C

B

C

B

CMPTRID3670

TRID - Zero tolerance fee or fees increased at or prior to closing without a valid reason or not timely disclosed; refund required within 60 days of consummation

No

Zero Tolerance Fee of $35 due to Transfer Taxes of $35 being added to the loan costs. Missing a valid Change of Circumstance, or Post Close CD, LOX and copy of refund check to borrower.

7.16.2025 Lender provided COC for increase to transfer taxes

7.17.2025 Exception Satisfied

(No Data)

Not Applicable

CFCFS1737: LTV below guideline requirements - Clayton Comments: LTV of 60.87% is below the maximum allowable of 75%. CFCFS1736: Significant time at current residence - Clayton Comments: Borrower has owned home for 12 years. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has over 20 years at current job.

29

XXXXXX

XXXXXX

MA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

A

C

B

D

B

A

A

D

A

C

B

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Missing Updated Valuation: CU Score is >2.5. Clayton to order desk review.

7/14/2025: Received desk review supporting value.

7/14/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1737: LTV below guideline requirements - Clayton Comments: LTV of 60.87% is below the maximum allowable of 75%. CFCFS1736: Significant time at current residence - Clayton Comments: Borrower has owned home for 12 years. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has over 20 years at current job.

30

XXXXXX

XXXXXX

NC

(No Data)

ATR/ QM: Exempt

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has significant time at current job, 14 years and 9 months. CFCFS1744: DTI below guideline requirement - Clayton Comments: DTI of 34.12% is below the minimum program requirements of 50% CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Median FICO 798 >178 points above guideline program minimum of 620. CFCFS1737: LTV below guideline requirements - Clayton Comments: 75% LTV for Subject Property is below guideline max LTV of 85%

31

XXXXXX

XXXXXX

PA

(No Data)

ATR/ QM: Exempt

D

A

D

A

D

A

A

A

D

A

D

A

D

A

A

A

Credit

Income/ Employment

Satisfied

C

A

C

A

CRDINC2488

Verbal verification of employment missing

No

The verification of B2’s business is not dated. The AUS requires verification within 120 days prior to the note date. Unable to verify this was completed with the document provided.

7/17/2025: Received verification of business dated 4/30/2025.

7/17/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: DTI of 10.27% is below the guideline maximum of 45%. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified post close assets $1,511,760.23 or 341.28 months PITI exceed required reserves $35,541.90 or 8.02 months. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Verified FICO score 775. The guideline minimum is 620.

Deal ID

Loan Number

Original Principal Balance

State

Initial Lender ATR/ QM Status

Loan Level ATR/ QM Status

Initial Securitization Overall Loan Grade

Final Securitization Overall Loan Grade

Initial Securitization Credit Loan Grade

Final Securitization Credit Loan Grade

Initial Securitization Property Valuations Loan Grade

Final Securitization Property Valuations Loan Grade

Initial Securitization Compliance Loan Grade

Final Securitization Compliance Loan Grade

Initial S&P Overall Loan Grade

Final S&P Overall Loan Grade

Initial S&P Credit Loan Grade

Final S&P Credit Loan Grade

Initial S&P Property Valuations Loan Grade

Final S&P Property Valuations Loan Grade

Initial S&P Compliance Loan Grade

Final S&P Compliance Loan Grade

Condition Category

Condition Sub Category

Condition Status

Initial Securitization Condition Grade

Final Securitization Condition Grade

Initial S&P Condition Grade

Final S&P Condition Grade

Condition Code

Condition Description

Condition Material Indicator

Initial Comments

Client/Seller Response Comments

Conclusion Comments

TRID Error Type

Cure Method

Compensating Factors

31

XXXXXX

XXXXXX

PA

(No Data)

ATR/ QM: Exempt

D

A

D

A

D

A

A

A

D

A

D

A

D

A

A

A

Credit

Title

Satisfied

D

A

D

A

CRDTIL796

Missing Title

No

No evidence of title was located in the file.

7/11/2025: Received Title Commitment.

7/11/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: DTI of 10.27% is below the guideline maximum of 45%. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified post close assets $1,511,760.23 or 341.28 months PITI exceed required reserves $35,541.90 or 8.02 months. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Verified FICO score 775. The guideline minimum is 620.

31

XXXXXX

XXXXXX

PA

(No Data)

ATR/ QM: Exempt

D

A

D

A

D

A

A

A

D

A

D

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

No UCDP. Clayton to order updated valuation.

7/11/2025: Received desk review supporting value.

7/11/2025: Exception satisfied.

(No Data)

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: DTI of 10.27% is below the guideline maximum of 45%. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified post close assets $1,511,760.23 or 341.28 months PITI exceed required reserves $35,541.90 or 8.02 months. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Verified FICO score 775. The guideline minimum is 620.

32

XXXXXX

XXXXXX

FL

(No Data)

ATR/ QM: Exempt

D

A

C

A

D

A

A

A

D

A

C

A

D

A

A

A

Credit

Insurance

Satisfied

C

A

C

A

CRDINSR5351

Insurance Effective date is greater than the transaction date

No

Insurance Effective date is greater than the transaction or disbursement date. CD closing/ disbursement date XXX. Insurance effective date 5/13/2025.

7/17/2025: Received HOI effective XXX.

7/17/2025: Exception satisfied.

Not Applicable

Not Applicable

CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has 20.25yrs tenure with current employer. CFCFS2860: Good credit history - Clayton Comments: Excellent credit history with no late pay/derog line items. 737 median score, oldest trade 11/2010, 102 consecutive months mortgage payment history.