Exhibit 99.05 - Schedule 2
| Conditions Report 2.0 | |||
| Loans in Report: | 5 | ||
| Loans with Conditions: | 4 | ||
| 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 |
| 2125288 | XXXXXX | AZ | (No Data) | ATR/QM: Exempt | D | A | D | A | A | A | N/A | N/A | D | A | D | A | A | A | N/A | N/A | Credit | Legal Documents | Satisfied | D | A | D | A | XXXX | Missing HUD-1 (Final and Estimated) | No | Missing HUD. (HUD in file is for purchase transaction; not subject refi) | 12.22.25 FSS for review12.23.25 exception satisfied | 12.23.25 exception satisfied | (No Data) | Not Applicable | CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Representative score of 780 exceeds guideline requirement of 620. CFCFS1744: DTI below guideline requirement - Clayton Comments: DTI of 35.47 is below guideline requirement of 50. |
| 2138709 | XXXXXX | CA | (No Data) | ATR/QM: Exempt | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Legal Documents | Satisfied | D | A | D | A | XXXX | Estimated HUD-1 in File, Missing Final HUD-1 | No | Missing final HUD | 12.16.25 FSS provided, please clear finding.12.16.25 exception satisfied | 12.16.25 exception satisfied | (No Data) | Not Applicable | CFCFS2860: Good credit history - Clayton Comments: Good Credit History CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: 102+ Months reporting positive CFCFS1740: Mortgage payment history exceeds guidelines - Clayton Comments: 21+ Months reporting positive |
| 2138743 | XXXXXX | NC | (No Data) | ATR/QM: Exempt | A | A | A | A | A | A | N/A | N/A | A | A | A | A | A | A | N/A | N/A | CFCFS1739: Positive mortgage payment history - Clayton Comments: Guarantor demonstrates positive mortgage payment history. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: 114+ months reserves exceed guidelines. CFCFS1742: Consumer credit history exceeds guidelines - Clayton Comments: 102 months credit history exceeds guidelines. | |||||||||||||||
| 2138703 | XXXXXX | CA | (No Data) | ATR/QM: Exempt | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Legal Documents | Satisfied | D | A | D | A | XXXX | Estimated HUD-1 in File, Missing Final HUD-1 | No | Please provide Final HUD-1. | 1.14.26 FSS provided, please clear finding.1.21.26 exception satisfied | 1.21.26 exception satisfied | (No Data) | Not Applicable | CFCFS1739: Positive mortgage payment history - Clayton Comments: Positive mortgage payment of 16 months exceeds 12 the minimum required per lender guidelines CFCFS1746: Significant housing expense reduction - Clayton Comments: Prior interest rate 12.00%. New interest rate 8.875% CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Credit score of 626 exceeds 620 the minimum required per lender guidelines |
| 2138711 | XXXXXX | TX | (No Data) | ATR/QM: Exempt | B | B | B | B | A | A | N/A | N/A | B | B | B | B | A | A | N/A | N/A | Credit | Credit/Mtg History | Waived | B | B | B | B | XXXX | Length of mortgage/rental history in file does not meet guideline requirement | No | Provide 12 months canceled checks for the mortgage payments made to the private lender XXX. | 7/16/26- Client acknowledged exception | Final grade B | (No Data) | Not Applicable | CFCFS1737: LTV below guideline requirements - Clayton Comments: LTV of 70 is below guideline requirement max of 75. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Verified reserves of $13,458.24 or 7.36 months PITI reserve exceeds required reserves of ($1,828.99 x 3 = $5,486.97). CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Representative score of 641 exceeds guideline requirement of 620. |