EXHIBIT 99.2

CLAYTON CONDITIONS REPORT

Client Name:		PennyMac
Client Project Name:		PNMAC PMTLT 2026-CNF5_J16910
Conditions Report 2.0
Loans in Report:		259
Loans with Conditions:		197

 

51 - Total Active Conditions
		14 - Material Conditions
				3 - Credit Review Scope
						1 - Category: Ability to Repay/Qualified Mortgage
						1 - Category: Assets
						1 - Category: Legal Documents
				6 - Property Valuations Review Scope
						2 - Category: Appraisal
						1 - Category: FEMA
						3 - Category: Value
				5 - Compliance Review Scope
						1 - Category: Federal Consumer Protection
						1 - Category: Right of Rescission
						3 - Category: TILA/RESPA Integrated Disclosure
		37 - Non-Material Conditions
				5 - Credit Review Scope
						1 - Category: Credit/Mtg History
						1 - Category: DTI
						2 - Category: Income/Employment
						1 - Category: LTV/CLTV
				1 - Property Valuations Review Scope
						1 - Category: Appraisal
				31 - Compliance Review Scope
						25 - Category: RESPA
						3 - Category: Right of Rescission
						1 - Category: State Consumer Protection
						2 - Category: TILA/RESPA Integrated Disclosure
389 - Total Satisfied Conditions						389 - Total Satisfied Conditions
				52 - Credit Review Scope
						12 - Category: Ability to Repay/Qualified Mortgage
						3 - Category: Assets
						7 - Category: Credit/Mtg History
						8 - Category: DTI
						11 - Category: Income/Employment
						2 - Category: Insurance
						2 - Category: Legal Documents
						5 - Category: Terms/Guidelines
						2 - Category: Title
				290 - Property Valuations Review Scope
						282 - Category: Appraisal
						1 - Category: FEMA
						7 - Category: Value
				47 - Compliance Review Scope
						12 - Category: Ability to Repay/Qualified Mortgage
						1 - Category: APR Tolerance
						5 - Category: Compliance Manual
						1 - Category: Documentation
						2 - Category: Right of Rescission
						1 - Category: State Consumer Protection
						25 - Category: TILA/RESPA Integrated Disclosure
1 - Total Waived Conditions
				1 - Property Valuations Review Scope
						1 - Category: FEMA

^©2026 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 2026-CNF5_J16910
Conditions Report 2.0
Loans in Report:		259
Loans with Conditions:		197

 

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

Loan Status

232

XXXXXX

XXXXXX

TX

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

C

A

C

A

A

A

A

A

C

A

C

A

A

A

A

A

Credit

DTI

Satisfied

C

A

C

A

CRDDTI187

Debt Ratio > 50%

No

DTI of 53.12% is over guideline maximum of 45%. Lender used rental income to offset PITIA for investment property, but this income is not reflected on Schedule E or elsewhere on tax returns and no lease agreement in file. Expenses flow through Schedule C for this property, but gross receipt/ sales are not reflected. Full PITIA has been included.

5/7/2026: Clayton re-reviewed income. LOX from lender indicating Schedule C income was used to offset PITI on REO. Clayton verified $492.92/month loss on Schedule C and left the $4,007 P&I payment in DTI. Expenses on Schedule C show taxes and insurance covered. DTI is now 40.53%, within tolerance of lender 40.74%.

5/7/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 4.8% CFCFS2854: Significant time in profession - Clayton Comments: B1 has 27 years in current profession. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 784 mid score > min required of 620

Complete

242

XXXXXX

XXXXXX

FL

QM: Safe Harbor

QM: Safe Harbor (APOR)

D

A

D

A

A

A

A

A

D

A

D

A

A

A

A

A

Credit

Income/ Employment

Satisfied

D

A

D

A

CRDINC152

Missing verbal VOE required by guidelines

No

B2 VVOE is missing/ incomplete. Provided email chain to verify does not reflect a response for the requested information from the company.

4/27/2026: Received VVOE for B2 via email, with all requirements addressed.

4/27/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1734: Borrower has significant time at current job - Clayton Comments: 4 years XXX CFCFS2860: Good credit history - Clayton Comments: 0x30 no derogatory marks CFCFS1735: Co-Borrower has significant time at current job - Clayton Comments: 4 years with current company CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 738 fico exceeds minimum 620 CFCFS1736: Significant time at current residence - Clayton Comments: 11 years 11 months in current home.

Complete

303

XXXXXX

XXXXXX

GA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

No

Loan is PIW approved, Clayton to order BPO

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: 8.52% DTI < maximum permitted of 45% CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 774 mid score > min required of 620 CFCFS2854: Significant time in profession - Clayton Comments: 30 years in the line of work.

Complete

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

Loan Status

303

XXXXXX

XXXXXX

GA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Loan is PIW approved, Clayton to order BPO.

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: 8.52% DTI < maximum permitted of 45% CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 774 mid score > min required of 620 CFCFS2854: Significant time in profession - Clayton Comments: 30 years in the line of work.

Complete

304

XXXXXX

XXXXXX

MN

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

No

Loan is PIW approved. Clayton to order BPO.

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 796 mid score > min required of 620 CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 15.96% is below guideline maximum 45%. CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: Borrower has 0x30 for 84 months. CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 19.68%

Complete

304

XXXXXX

XXXXXX

MN

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Loan is PIW approved. Clayton to order BPO.

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 796 mid score > min required of 620 CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 15.96% is below guideline maximum 45%. CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: Borrower has 0x30 for 84 months. CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 19.68%

Complete

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

Loan Status

272

XXXXXX

XXXXXX

CA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS2860: Good credit history - Clayton Comments: Borrowers have82 months mortgage payment history 0x30. CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 17.44% is below guideline maximum 45%. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 791 mid score > min required of 620

Complete

270

XXXXXX

XXXXXX

GA

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

LCA Score 4.5. Clayton to order Desk Review.

5/4/2026 Received desk review. Variance of 0% within tolerance.

5/4/2026 Exception satisfied.

(No Data)

Not Applicable

CFCFS1739: Positive mortgage payment history - Clayton Comments: 0 x 30 in 84 months CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Verified 723 FICO score. Minimum required 620. CFCFS1744: DTI below guideline requirement - Clayton Comments: 32.95%-Max DTI is 45%,

Complete

359

XXXXXX

XXXXXX

CA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Median credit scores 792 / 797 exceeds minimum of 620 CFCFS2860: Good credit history - Clayton Comments: Good payment history use: 0X30, 0X60, 0X90, in #142 months, Credit ratio 13.12% CFCFS1735: Co-Borrower has significant time at current job - Clayton Comments: Co-Borrower has been with employer > 6 years

Complete

407

XXXXXX

XXXXXX

NV

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

No

Loan is PIW approved, Clayton to order BPO.

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: Consumer debt 0 x 30 X 99 months > max permitted of 0 X 30 X 12 months. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower on same job over 9 years. 2 years required. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Mid score of 795 > min required score of 620.

Complete

407

XXXXXX

XXXXXX

NV

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Loan is approved PIW. Clayton to order BPO.

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: Consumer debt 0 x 30 X 99 months > max permitted of 0 X 30 X 12 months. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower on same job over 9 years. 2 years required. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Mid score of 795 > min required score of 620.

Complete

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

Loan Status

114

XXXXXX

XXXXXX

NC

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 796 mid score > min required of 620 CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has significant time at current job of 11 years. CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 33.06% is below guideline maximum 45%.

Complete

165

XXXXXX

XXXXXX

WI

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

No

Loan is approved PIW. Clayton to order BPO.

5/4/2026 Received BPO. Variance of +2.78% within tolerance.

5/4/2026 Exception satisfied.

(No Data)

Not Applicable

CFCFS1740: Mortgage payment history exceeds guidelines - Clayton Comments: Borrowers have19 months mortgage payment history 0x30. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 774 mid score > min required of 620.

Complete

165

XXXXXX

XXXXXX

WI

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Loan is approved PIW. Clayton to order BPO.

5/4/2026 Received BPO. Variance of +2.78% within tolerance.

5/4/2026 Exception satisfied.

(No Data)

Not Applicable

CFCFS1740: Mortgage payment history exceeds guidelines - Clayton Comments: Borrowers have19 months mortgage payment history 0x30. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 774 mid score > min required of 620.

Complete

399

XXXXXX

XXXXXX

CA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 747 mid fico exceed guideline minimum CFCFS1744: DTI below guideline requirement - Clayton Comments: 38.19% DTI is below max allowed of 45%.

Complete

400

XXXXXX

XXXXXX

WA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1740: Mortgage payment history exceeds guidelines - Clayton Comments: 0x30x84 mortgage payment history CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 723 FICO exceeds minimum 620 CFCFS1744: DTI below guideline requirement - Clayton Comments: 37.95% DTI, Max DTI is 45%

Complete

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

Loan Status

519

XXXXXX

XXXXXX

MO

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS3834: Borrower does not have any major mortgage related occurrences during the past two years - Clayton Comments: Borrower does not have any major mortgage related occurrences during the past two years as FTHB. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post closing assets $80,914.19 / 30.75 months PITIA > min required of $2,467.00. CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 35.47% is below guideline maximum 50%.

Complete

518

XXXXXX

XXXXXX

OK

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

C

A

A

A

A

A

C

A

C

A

A

A

A

A

C

A

Compliance

TILA/ RESPA Integrated Disclosure

Satisfied

C

A

C

A

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 $19.75 due to lender credits decreased from LE to CD. Missing a valid Change of Circumstance, or Post Close CD, LOX and copy of refund check to borrower.

05.07.2026—COC provided

05.07.2026 -Exception satisfied

(No Data)

Not Applicable

CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 1.19%. CFCFS1734: Borrower has significant time at current job - Clayton Comments: 27+ years at present job. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 801 mid score > min required of 620.

Complete

401

XXXXXX

XXXXXX

NJ

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

C

A

C

A

A

A

A

A

C

A

C

A

A

A

A

A

Credit

Insurance

Satisfied

C

A

C

A

CRDINSR5353

Insurance Expiration date is prior than the transaction date

No

Provide renewal dec page for Condo Master Policy. The General Liability expired 1/2/2026. Loan closed XXX.

5/7/2026: Received Condo HOI XXX-XXX.

5/7/2026: Exception satisfied.

Not Applicable

Not Applicable

CFCFS2854: Significant time in profession - Clayton Comments: B1 has over 5 Years and 6 months in the profession. B2 has over 6 years and 11 months in the profession. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 763 mid score > min required of 620 CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 43.62% is below guideline maximum 50%. CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 9%

Complete

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

Loan Status

9

XXXXXX

XXXXXX

WA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

C

A

A

D

B

C

C

D

C

A

A

D

B

C

C

Compliance

Right of Rescission

Active

B

B

B

B

CMPROR117

ROR—Expiration date on form prior to end of rescission period

No

ROR—Disbursement date is before end of statutory rescission periodROR Expiration date is XXX; disbursement date per Final CD in file is XXX. Borrower did not receive full mandatory rescission period prior to disbursement of funds Requires corrected PCCD, LOX, re-open of rescission-copy of shipping.

05.12.2026—client loaded RTC response (XXX) to the incorrect loan

05.12.2026—Exception remains

(No Data)

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: 35.55% DTI below guideline requirement of 45%. CFCFS1737: LTV below guideline requirements - Clayton Comments: 54.01% LTV below guideline requirements of 80% per program. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Median FICO of 742 exceeds the guideline program minimum of 620.

Complete

9

XXXXXX

XXXXXX

WA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

C

A

A

D

B

C

C

D

C

A

A

D

B

C

C

Compliance

TILA/ RESPA Integrated Disclosure

Active

C

C

C

C

CMPTRID4056

TRID—CD: The Total Payment Amount on the Loan Calculation section of the Final Closing Disclosure is less than the Clayton Calculated Total Payment Amount

Yes

Total payment amount of Clayton pay stream calculation is higher than what is listed on the Final CD before closing due to APR being incorrectly calculated. Notary fee of $250 and XXX Foreclosure prevention fee of $80 should be included in APR/total finance charges.

05.12.2026—The $80.00 XXX Foreclosure prevention fee was included in final CD partially satisfies the total payment amount calculated. However the client agrees that the $200.00 notary fee was not included and should be cured.

05.12.2026—Exception remains

Numeric

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: 35.55% DTI below guideline requirement of 45%. CFCFS1737: LTV below guideline requirements - Clayton Comments: 54.01% LTV below guideline requirements of 80% per program. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Median FICO of 742 exceeds the guideline program minimum of 620.

Complete

9

XXXXXX

XXXXXX

WA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

C

A

A

D

B

C

C

D

C

A

A

D

B

C

C

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

No

Loan is PIW approved, Clayton to order BPO.

5/5/2026: Received BPO not supporting value.

5/5/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: 35.55% DTI below guideline requirement of 45%. CFCFS1737: LTV below guideline requirements - Clayton Comments: 54.01% LTV below guideline requirements of 80% per program. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Median FICO of 742 exceeds the guideline program minimum of 620.

Complete

9

XXXXXX

XXXXXX

WA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

C

A

A

D

B

C

C

D

C

A

A

D

B

C

C

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Loan is PIW approved/ Clayton to order BPO.

5/5/2026: Received BPO not supporting value.

5/5/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: 35.55% DTI below guideline requirement of 45%. CFCFS1737: LTV below guideline requirements - Clayton Comments: 54.01% LTV below guideline requirements of 80% per program. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Median FICO of 742 exceeds the guideline program minimum of 620.

Complete

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

Loan Status

9

XXXXXX

XXXXXX

WA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

C

A

A

D

B

C

C

D

C

A

A

D

B

C

C

Property Valuations

Value

Satisfied

C

A

C

B

PRVAVALU5249

Property Value Not Supported

No

5/5/2026: Exception added after review of trailing docs: Received BPO not supporting value. Clayton to order next level review.

5/12/2026: Received 2055 Report supporting value.

5/12/2026: Exception satisfied.

Not Applicable

Not Applicable

CFCFS1744: DTI below guideline requirement - Clayton Comments: 35.55% DTI below guideline requirement of 45%. CFCFS1737: LTV below guideline requirements - Clayton Comments: 54.01% LTV below guideline requirements of 80% per program. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Median FICO of 742 exceeds the guideline program minimum of 620.

Complete

149

XXXXXX

XXXXXX

GA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: $356,742 post closing reserves, 149.08 months PITI.0 required reserves CFCFS5269: Minimal use of credit - Clayton Comments: $116 outstanding consumer debt at $40 monthly.

Complete

403

XXXXXX

XXXXXX

WA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

No

Loan is PIW approved, Clayton to order BPO

5/4/2026 Received BPO. Variance of +10.94% within tolerance.

5/4/2026 Exception satisfied.

(No Data)

Not Applicable

CFCFS1734: Borrower has significant time at current job - Clayton Comments: 7.5 years on job CFCFS5269: Minimal use of credit - Clayton Comments: $70 monthly in consumer debt

Complete

403

XXXXXX

XXXXXX

WA

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Loan is approved PIW. Clayton to order BPO.

5/4/2026 Received BPO. Variance of +10.94% within tolerance.

5/4/2026 Exception satisfied.

(No Data)

Not Applicable

CFCFS1734: Borrower has significant time at current job - Clayton Comments: 7.5 years on job CFCFS5269: Minimal use of credit - Clayton Comments: $70 monthly in consumer debt

Complete

405

XXXXXX

XXXXXX

CT

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

No

Loan is approved PIW. Clayton to order BPO.

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1736: Significant time at current residence - Clayton Comments: 10 years at primary residence CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: Borrower has 0x30 for 289 months. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 727 mid score > min required of 620 CFCFS1740: Mortgage payment history exceeds guidelines - Clayton Comments: Borrowers have 168 months mortgage payment history 0x30.

Complete

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

Loan Status

405

XXXXXX

XXXXXX

CT

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Loan is approved PIW. Clayton to order BPO.

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1736: Significant time at current residence - Clayton Comments: 10 years at primary residence CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: Borrower has 0x30 for 289 months. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 727 mid score > min required of 620 CFCFS1740: Mortgage payment history exceeds guidelines - Clayton Comments: Borrowers have 168 months mortgage payment history 0x30.

Complete

105

XXXXXX

XXXXXX

OH

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

A

CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 38.81% is below guideline maximum 50%. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post closing assets $137,636.21 (38.62 months PITIA reserves) > min required reserves of $0

Complete

516

XXXXXX

XXXXXX

NC

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

B

B

D

B

A

A

D

B

B

B

D

A

A

A

Credit

Income/ Employment

Active

B

B

B

B

CRDINC2496

Verbal verification of employment completed outside the stated requirements and/or after closing/ funding

No

VVOE for current employer was completed XXX, current as of XXX. Provide a current VVOE or DU approved alt docs to verify currently employed. Latest paystub is dated XXX which is >XXX business prior to Note date.

(No Data)

(No Data)

(No Data)

Not Applicable

CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: Consumer debt 0 x 30 X 104 months > max permitted of 0 X 30 X 12 months. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Mid score of 795 > min required score of 620. CFCFS1744: DTI below guideline requirement - Clayton Comments: 27.14% DTI < min required of 50%

Complete

516

XXXXXX

XXXXXX

NC

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

B

B

D

B

A

A

D

B

B

B

D

A

A

A

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/AW

No

Loan is PIW approved, Clayton to order BPO.

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: Consumer debt 0 x 30 X 104 months > max permitted of 0 X 30 X 12 months. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Mid score of 795 > min required score of 620. CFCFS1744: DTI below guideline requirement - Clayton Comments: 27.14% DTI < min required of 50%

Complete

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

Loan Status

516

XXXXXX

XXXXXX

NC

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

B

B

D

B

A

A

D

B

B

B

D

A

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Loan is approved PIW. Clayton to order BPO.

5/4/2026: Received BPO supporting value.

5/4/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: Consumer debt 0 x 30 X 104 months > max permitted of 0 X 30 X 12 months. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Mid score of 795 > min required score of 620. CFCFS1744: DTI below guideline requirement - Clayton Comments: 27.14% DTI < min required of 50%

Complete

128

XXXXXX

XXXXXX

RI

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

B

A

A

D

B

A

A

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

No

Loan is PIW approved, Clayton to order BPO

4/28/2026: Updated valuation provided.

4/28/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS2854: Significant time in profession - Clayton Comments: Both borrowers have 10 years in current profession. CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 35.61% is below guideline maximum 45%. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 702 mid score > min required of 620

Complete

128

XXXXXX

XXXXXX

RI

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

B

A

A

D

B

A

A

Property Valuations

Appraisal

Satisfied

D

A

D

A

PRVAAPPR3116

Missing updated valuation

No

Loan is approved PIW. Clayton to order BPO.

4/28/2026: Received BPO not supporting value.

4/28/2026: Exception satisfied.

(No Data)

Not Applicable

CFCFS2854: Significant time in profession - Clayton Comments: Both borrowers have 10 years in current profession. CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 35.61% is below guideline maximum 45%. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 702 mid score > min required of 620

Complete

128

XXXXXX

XXXXXX

RI

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

B

A

A

D

B

A

A

Property Valuations

Value

Satisfied

C

A

C

B

PRVAVALU5249

Property Value Not Supported

No

4/28/2026: Exception added after review of trailing docs: Received BPO not supporting value. Clayton to order next level review.

5/5/2026 Received 2055 inspection. Variance of -1.52% within tolerance.

5/5/2026 Exception satisfied.

Not Applicable

Not Applicable

CFCFS2854: Significant time in profession - Clayton Comments: Both borrowers have 10 years in current profession. CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 35.61% is below guideline maximum 45%. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 702 mid score > min required of 620

Complete

10

XXXXXX

XXXXXX

ID

QM: Safe Harbor (APOR)

QM: Safe Harbor (APOR)

D

B

A

A

D

B

A

A

D

A

A

A

D

A

A

A

Property Valuations

Appraisal

Satisfied

C

B

C

A

PRVAAPPR5454

Loan File contains Property Inspection Waiver (PIW)/ AW

No

PIW approved loan.

5/4/2026 Received BPO. Variance of 0% within tolerance.

5/4/2026 Exception satisfied.

(No Data)

Not Applicable

CFCFS2860: Good credit history - Clayton Comments: Borrower’s lowest middle score774, minimum 620 required. CFCFS1737: LTV below guideline requirements - Clayton Comments: LTV 78%, can go up to 80%. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrowers have over 7 years at current jobs.

Complete