| TPR Firm: |  |
Report Date: | 7/13/2026 | ||||||||||||||||||||||||||||||||||
| Client Name: | RCF TRS III LLC | Report: | Exception Report | ||||||||||||||||||||||||||||||||||
| Deal Name: | DRMT 2026-CES2 | Loans in report: | 22 | ||||||||||||||||||||||||||||||||||
| Incenter Loan ID | Client Loan ID | Seller Loan ID | Investor Loan ID | Overall Initial Loan Grade | Overall Final Loan Grade | Credit Initial Loan Grade | Credit Current/Final Loan Grade | Compliance Initial Loan Grade | Compliance Current/Final Loan Grade | Property Initial Loan Grade | Property Current/Final Loan Grade | Queue | Finding Code | Date Created | Date Modified | Finding Status | Event Level | Initial Finding Grade | Current/Final Finding Grade | Finding Category | Finding Sub Category | Finding Name | Finding Comments | Seller Comments | Resolution Comments | Reviewer Comp Factor | Originator Comp Factors | Finding Documents | Originator QM Status | Final Reviewed QM Status | Loan Amount | Property State | Occupancy | Loan Purpose | Refinance Purpose | Acknowledged / WaivedBy | Waiver in File? |
| XXX | 675 | B | B | B | B | A | A | B | B | Closed | FVAL9739 | 2026-06-12 15:15 | 2026-06-12 15:20 | Waived | 2 - Non-Material | B | B | Property | Appraisal | Property/Appraisal General | Waived-Exception approval provided for vacant primary residence at time of appraisal inspection. - Due Diligence Vendor-06/XX?2026 | x - 06/12/2026 |
Waived-Exception approval
provided for vacant primary residence at time of appraisal inspection. - Due
Diligence Vendor-06/12/2026 |
LTV is less than guideline
maximum - XXX% CLTV is XXX% less than maximum CLTV per guidelines 85% Credit Score greater than minimum FICO - XXX credit score is XXX points above the minimum FICO per guidelines of 680 Qualifying DTI below max allowed. - XXX% calculated DTI is XXX% percent below the maximum DTI per guidelines of 50% |
CLTV is XXX% below maximum
of 85% > $XXX residual income > XXX months reserves |
Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Primary Residence | Refinance | Cash Out - Other | Originator Pre-Close | Yes | |||
| XXX | 675 | B | B | B | B | A | A | B | B | Closed | FCRE1676 | 2026-06-12 15:19 | 2026-06-12 15:19 | Waived | 2 - Non-Material | B | B | Credit | Missing Doc - Credit | Credit General | Waived-Exception approval provided for use of both business and personal bank statements in qualifying earnings. - Due Diligence Vendor-06/XX?2026 | Waived-Exception approval
provided for use of both business and personal bank statements in qualifying
earnings. - Due Diligence Vendor-06/12/2026 |
LTV is less than guideline
maximum - XXX% CLTV is XXX% less than maximum CLTV per guidelines 85% Credit Score greater than minimum FICO - XXX credit score is XXX points above the minimum FICO per guidelines of 680 Qualifying DTI below max allowed. - XXX% calculated DTI is XXX% percent below the maximum DTI per guidelines of 50% |
CLTV is XXX% below program
maximum of 85% > XXX months reserves XXX% DTI |
Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Primary Residence | Refinance | Cash Out - Other | Originator Pre-Close | Yes | ||||
| XXX | 760 | C | A | C | A | A | A | A | A | Closed | FCRE1204 | 2026-06-15 15:36 | 2026-06-25 16:20 | Resolved | 1 - Information | C | A | Credit | Eligibility | Fraud Report Shows Uncleared Alerts | Resolved-Received Cleared
fraud report - (liens are beyond statute of limitations) - Due Diligence
Vendor-06/XX?2026 Ready for Review-Document Uploaded. Please find updated fraud - Buyer-06/XX?2026 Open-Fraud Report Shows Uncleared Alerts The fraud report reflects unresolved alerts and identifies unpaid liens and judgments totaling $XXX, including $XXX with XXX, $XXX with XXX, $XXX with XXX, and an additional $XXX with XXX. - Due Diligence Vendor-06/XX?2026 |
Resolved-Received Cleared
fraud report - (liens are beyond statute of limitations) - Due Diligence
Vendor-06/25/2026 |
Qualifying DTI below max allowed. - XXX% calculated DTI is XXX percent below the maximum DTI per guidelines of 43%. | XX | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Primary Residence | Refinance | Cash Out - Other | N/A | N/A | ||||
| XXX | 762 | C | A | A | A | A | A | C | A | Closed | FVAL9739 | 2026-06-18 14:27 | 2026-06-24 11:35 | Resolved | 1 - Information | C | A | Property | Appraisal | Property/Appraisal General | Resolved-Received corrected
Appraisal Transfer Letter. - Due Diligence Vendor-06/XX?2026 Ready for Review-Document Uploaded. Correct transfer letter attached. - Buyer-06/XX?2026 Open-Missing updated/corrected Appraisal Transfer letter. The Appraisal Transfer letter in file reflects an appraisal completion date of XXX; however, the appraisal effective date on appraisal provided is XXX, with appraiser signature date of XXX. - Due Diligence Vendor-06/XX?2026 |
Resolved-Received corrected
Appraisal Transfer Letter. - Due Diligence Vendor-06/24/2026 |
Qualifying DTI below max
allowed. - XXX% calculated DTI is XXX%
percent below the maximum DTI per guidelines of 50% Credit Score greater than minimum FICO - XXX credit score is XXX points above the minimum FICO per guidelines of 700 |
XX | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Primary Residence | Refinance | Cash Out - Other | N/A | N/A | ||||
| XXX | 763 | C | C | A | A | A | A | C | C | Seller | FVAL9739 | 2026-06-15 11:46 | 2026-07-01 16:17 | Counter | 3 - Material | C | C | Property | Appraisal | Property/Appraisal General | Counter-Received transfer
letter from everyone processing indicating appraisal has been transferred,
however missing transfer letter from XXX to XXX. XXX must certify the
appraisal meets AIR Compliance requirements. - Due Diligence
Vendor-07/XX?2026 Ready for Review-Document Uploaded. Appraisal transfer letter approved - Buyer-06/XX?2026 Open-Missing Appraisal transfer letter from XXX to XXX. - Due Diligence Vendor-06/XX?2026 |
LTV is less than guideline
maximum - XXX% CLTV is XXX% less than maximum CLTV per guidelines 80% Residual Income greater than minimum required - $XXX residual income is greater than minimum residual income required per guidelines $2,500. |
XX | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Primary Residence | Refinance | Cash Out - Debt Consolidation | N/A | N/A | |||||
| XXX | 766 | D | A | D | A | A | A | A | A | Closed | FCRE7497 | 2026-06-12 17:24 | 2026-06-23 12:08 | Resolved | 1 - Information | D | A | Credit | Missing Doc | Missing verification of taxes, insurance, and/or HOA fees for non-subject property | Resolved-Received tax bill
for primary residence. - Due Diligence Vendor-06/XX?2026 Ready for Review-Document Uploaded. Tax bill attached. - Buyer-06/XX?2026 Open-Missing tax bill for XXX. - Due Diligence Vendor-06/XX?2026 |
Resolved-Received tax bill
for primary residence. - Due Diligence Vendor-06/23/2026 |
Credit Score greater than minimum FICO - XXX credit score is XXX points above the minimum FICO per guidelines of 720 | XX | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Investment | Refinance | Cash Out - Other | N/A | N/A | ||||
| XXX | 767 | C | B | C | B | A | A | A | A | Closed | FCRE5790 | 2026-06-16 15:23 | 2026-06-30 17:10 | Waived | 2 - Non-Material | C | B | Credit | Closing | Borrower 1 Gap Credit Report is Expired (Greater than 10 Days from Closing/Settlement Date) | Waived-Upon additional
review, Client elects to waive with Comp Factors. - Due Diligence
Vendor-06/XX?2026 Ready for Review-Document Uploaded. Please find exception, thank you. - Buyer-06/XX?2026 Open-Borrower 1 Gap Credit Report is Expired (Greater than 10 days from Closing/Settlement Date). Missing gap report dated within 10 days of closing (XXX). Gap report dated XXX. Supplemental report dated XXX contains only mortgage information. - Due Diligence Vendor-06/XX?2026 |
Waived-Upon additional
review, Client elects to waive with Comp Factors. - Due Diligence
Vendor-06/30/2026 |
LTV is less than guideline
maximum - XXX% CLTV is XXX% less than maximum CLTV per guidelines 90% Qualifying DTI below max allowed. - XXX% calculated DTI is XXX% percent below the maximum DTI per guidelines of 50% Credit Score greater than minimum FICO - XXX credit score is XXX points above the minimum FICO per guidelines of 700 |
1) XXX FICO is greater than
700 2) XXX% LTV is less than 90% 3) XXX% DTI is less than 50% |
XX | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Primary Residence | Refinance | Cash Out - Other | Originator Post-Close | Yes | |||
| XXX | 768 | B | B | B | B | A | A | A | A | Closed | FCRE8611 | 2026-06-18 11:14 | 2026-06-18 11:19 | Waived | 2 - Non-Material | B | B | Credit | Income/Employment | Income/Employment General | Waived-Exception approval provided for declining income > 25%. Seasonal related slowdown. - Due Diligence Vendor-06/XX?2026 | Waived-Exception approval
provided for declining income > 25%. Seasonal related slowdown. - Due
Diligence Vendor-06/18/2026 |
LTV is less than guideline
maximum - XXX% CLTV is XXX% less than maximum LTV per guidelines 90% Credit Score greater than minimum FICO - XXX credit score is XXX points above the minimum FICO per guidelines of 700 |
Credit score XXX CLTV < 50% > 24 months reserves from loan proceeds |
Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Primary Residence | Refinance | Cash Out - Other | Originator Post-Close | Yes | ||||
| XXX | 774 | D | A | D | A | A | A | A | A | Closed | FCRE1676 | 2026-06-18 09:48 | 2026-06-26 09:46 | Resolved | 1 - Information | D | A | Credit | Missing Doc - Credit | Credit General | Resolved-Received revised
URLA reflecting borrower as a Permanent Resident. - Due Diligence
Vendor-06/XX?2026 Ready for Review-Document Uploaded. Please see updated URLA showing permanent resident status and rescind finding, thank you. - Buyer-06/XX?2026 Open-URLA reflects borrower as a Non-Permanent resident however borrower provided a Permanent resident card. Missing updated URLA reflecting borrower as a Permanent Resident. - Due Diligence Vendor-06/XX?2026 |
Resolved-Received revised
URLA reflecting borrower as a Permanent Resident. - Due Diligence
Vendor-06/26/2026 |
LTV is less than guideline maximum - XXX% CLTV is XXX% less than maximum CLTV per guidelines 90% | XX | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Primary Residence | Refinance | Cash Out - Other | N/A | N/A | ||||
| XXX | 775 | C | A | C | A | A | A | A | A | Closed | FCRE8611 | 2026-06-15 19:18 | 2026-06-23 12:18 | Resolved | 1 - Information | C | A | Credit | Income/Employment | Income/Employment General | Resolved-Received S/E
Business Purpose Narrative as required per guidelines. - Due Diligence
Vendor-06/XX?2026 Ready for Review-Document Uploaded. Please see XXX signed Self Employed Business Narrative and rescind finding, thank you. - Buyer-06/XX?2026 Open-Missing XXXX Self-Employed Business Narrative Form as required by guidelines. - Due Diligence Vendor-06/XX?2026 |
Resolved-Received S/E
Business Purpose Narrative as required per guidelines. - Due Diligence
Vendor-06/23/2026 |
Credit Score greater than
minimum FICO - XXX credit score is XXX points above the minimum FICO per
guidelines of 700 Residual Income greater than minimum required - $XXX residual income is greater than minimum residual income required per guidelines $1,500 Qualifying DTI below max allowed. - XXX% calculated DTI is XXX percent below the maximum DTI per guidelines of 50% LTV is less than guideline maximum - XXX% CLTV is XXX% less than maximum CLTV per guidelines 90% |
XX | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | XXX | XXX | Primary Residence | Refinance | Cash Out - Debt Consolidation | N/A | N/A |