Exhibit 99.3 Schedule 3
| Conditions Report 2.0 | ||||||||||||||||||||||||||||||||||||||
| Loans in Report: | 27 | |||||||||||||||||||||||||||||||||||||
| Loans with Conditions: | 17 | |||||||||||||||||||||||||||||||||||||
| Marketing 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 | ConditionSub 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 | Full Diligence ID |
| 52 | XX | XX | CA | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | C | A | C | A | A | A | C | A | C | A | C | A | A | A | C | A | Compliance | TILA/RESPA Integrated Disclosure | Satisfied | C | A | C | A | 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 | Ten percent tolerance in the amount of $10.80 due to Recording fee increased from $172 on a revised CD 7/XX/26 to $200 on final CD 7/XX/26 with no valid COC in file. Condition is pending receiving a valid Change of Circumstances or PCD reflecting lenders cure, LOE to borrower, a copy of refund | 07/XX/2026 Client provided PCCD 7/XX with a lower recording fee, refund check for 2 days per diem and LOE. Condition remains. Provide the Final ALTA/Settlement statement for confirmation of fee changes and Final Testing. 08/XX/2026 Client provided the matching Final Settlement Statement. | Condition Satisfied. | (No Data) | Not Applicable | CFCFS1741: Credit score
exceeds guidelines - Clayton Comments: 801 FICO exceeds guideline of 700. CFCFS1737: LTV below guideline requirements - Clayton Comments: 80 LTV below guideline of 90. |
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| 52 | XX | XX | CA | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | C | A | C | A | A | A | C | A | C | A | C | A | A | A | C | A | Credit | Ability to Repay/Qualified Mortgage | Satisfied | C | A | C | A | CRDATRQM3124 | TILA - Loan subject to Ability to Repay/Qualified Mortgage rule; Lender did not provide an ATR/QM status determination. | No | Missing lender's ATR/QM status determination. | 7.29.2026 Client provided Lender ATR Underwriting Certification however initial condition is for missing QM status determination. Condition remains for QM or Non QM status determination. Note: DD status is Non QM w/loan being Interest Only 7.29.2029 Client provided Compliance Ease Report that appears to reflect as being QM Safe harbor and DD Firm status is Non QM. Condition remains, status differ Non QM vs QM Safe Harbor 8.XX.2026 Client provided Lender LOX stating, UPDATED COMPLIANCE EASE - MODERATE submitted. Response Compliance Ease currently showing QM Safe harbor as passing. Condition remains, status differ Non QM vs Lender QM Safe Harbor 08/05- Upon further review of compliance ease confirms Non QM due to failing the qualified mortgage loan term test. | Satisfied. | (No Data) | Not Applicable | CFCFS1741: Credit score
exceeds guidelines - Clayton Comments: 801 FICO exceeds guideline of 700. CFCFS1737: LTV below guideline requirements - Clayton Comments: 80 LTV below guideline of 90. |
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| 56 | XX | XX | NJ | (No Data) | ATR/QM: Exempt | C | B | C | B | A | A | A | A | C | B | C | B | A | A | A | A | Credit | LTV/CLTV | Waived | C | B | C | B | CRDLTV3026 | LTV Exceeds Guideline Requirement by at least 5%, but less than 10% | No | LTV/CLTV Exceeds Guideline Requirement. Current LTV/CLTV is 80% and guideline Max is 75%. Exception is in file for the exception but the DCSR must be at least 1 and DSCR is showing as .9971. | 6.16.2026 Client provided a MLD Exception approval for DSCR condo max LTV is 75% and loan is currently at 80%; LTV of 80% exceed guidelines maximum of 75% and Client provided Lender DSCR calculation used of $2,850/$2,858.43 PITIA = 1.00 (per worksheet) however DD using same calculation = .997Condition remains (a). LTV exceed maximum and (b). DSCR must be at least 1.00 6.26.2026 Client provided Lender updated DSCR calculation as 99.7050% showing as failed. Condition remains (a). LTV exceed maximum and (b). DSCR must be at least 1.0 (calculated at less than 1.00%) 7.20.2026 Client provided LOX stating, Our UW is asking if we can waive the $59 for HO6 as it is a supplemental coverage? Master policy has walls in therefore borrower can cancel HO6 policy. Please advise. 7.21.2026 Client provided LOX stating, Would we able to request an exception. Response, any exception will need to be submitted and approved by Client (XX). Condition remains for both: (a). LTV exceed maximum and (b). DSCR must be at least 1.0008/XX/2026- XX acknowledges LTV/CLTV exceeds max 75% for DSCR <1. | Clayton initial and final grade B. | (No Data) | Not Applicable | CFCFS1736: Significant time
at current residence - Clayton Comments: Significant time at current residence, 35 years. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Median FICO 760 > is above guideline minimum credit score 720. |
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| 56 | XX | XX | NJ | (No Data) | ATR/QM: Exempt | C | B | C | B | A | A | A | A | C | B | C | B | A | A | A | A | Credit | Terms/Guidelines | Satisfied | C | A | C | A | CRDTER3122 | Loan documents do not meet guideline requirements | No | Missing loan documents UCD Findings for FNMA/Freddie, Ability-to-Repay Underwriting Certification, Notice to Borrower: Ability to Repay Disclosure, and Borrowers Affirmation of Information provided to Establish ATR. | 6.26.2026 Client provided UCD, condition remains for requested executed documents: ATR UW Certification, Notice to Borrower and Borrower Affirmation of Info to Establish ATR. 7.14.2026 Client provided executed ATR UW Certification, condition remains for additional requested two (2) executed disclosures: Notice to Borrower and Borrower's Affirmation of Information provided to establish ATR. 7.29.2026 Client provided executed (by one Borrower) Notice to Borrower and Borrower's Affirmation however both disclosures need to be executed by all borrowers, condition remains for both disclosures being executed by Both Borrowers Note: two separate disclosures provided however reflecting same esignature 7.31.2026 Client provided executed by additional Borrower, Notice to Borrower and Borrower's Affirmation | Condition satisfied | (No Data) | Not Applicable | CFCFS1736: Significant time
at current residence - Clayton Comments: Significant time at current residence, 35 years. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: Median FICO 760 > is above guideline minimum credit score 720. |
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| 74 | XX | XX | WI | (No Data) | ATR/QM: Exempt | C | A | C | A | A | A | A | A | C | A | C | A | A | A | A | A | Credit | Assets | Satisfied | C | A | C | A | CRDAST3078 | Insufficient # of months cash reserves for PITI per guideline requirements | No | Cash short of reserve required for Loan amount (3) months x $1,442.24= $4,326.72. Additional Financed Properties 2 months x $1,743 = $3,486. Total Reserves: $7,812.72 | 8/5 Client provided transcript from account with XX; not stamped by bank, unable to match to Borrower account 8.XX.2026 Client provided LOX stating, Prior to closing date 6/XX/2026. Borrower had $502.95 in Statement #XX $25,006.53 in Statement #XX $12,383.37 Proof already in the loan file . Statement from #XX $37,892.85 Total Assets -$22,952.15 Funds to Close $14,940.70 For reserves. Response, Client provided May and June 30th, 2026 (post close statement) however with June statement only using through subject closing date balance and updated balance are 502.95 + $25,006.53 with outgoing wire of subject closing funds of $22,952.15 on June 26th (Note date June XX), updated reserves are now $14,940 and on June 2026 statement EMD of $1,500 is now being verified as clearing on 6.9.2026; previously no EMD credit given and provided updated 1003 with adjustment to correct balances for accounts #XX and #XX | Condition satisfied | (No Data) | Not Applicable | CFCFS1744: DTI below
guideline requirement - Clayton Comments: 38.20% DTI < max allowable of 50% |
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| 74 | XX | XX | WI | (No Data) | ATR/QM: Exempt | C | A | C | A | A | A | A | A | C | A | C | A | A | A | A | A | Credit | Terms/Guidelines | Satisfied | C | A | C | A | CRDTER3122 | Loan documents do not meet guideline requirements | No | Missing documents of Ability-to-Repay Underwriting Certification and Notice to Borrower: Ability to Repay Disclosure. | 7/23 Client provided Notice of ATR ; Still missing Ability-to-Repay Underwriting Certification8.XX.2026 Client provided executed ATR UW Certification | condition satisfied | (No Data) | Not Applicable | CFCFS1744: DTI below
guideline requirement - Clayton Comments: 38.20% DTI < max allowable of 50% |
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| 87 | XX | XX | CA | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Application | Satisfied | D | A | D | A | CRDAPP4625 | The orig file does not contain a third party fraud report | No | Missing 3rd. party Fraud Report | 7/23 Client provided the fraud report | Satisfied | Not Applicable | Not Applicable | CFCFS1735: Co-Borrower has
significant time at current job - Clayton Comments: 8.9 years current job time |
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| 87 | XX | XX | CA | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | DTI | Satisfied | D | A | D | A | CRDDTI2540 | Missing verification of some or all components of non-subject PITI | No | Missing proof of no HOA dues for property located at: XX | 7/15 Client provided a prop report showing no HOA | Satisfied | (No Data) | Not Applicable | CFCFS1735: Co-Borrower has
significant time at current job - Clayton Comments: 8.9 years current job time |
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| 96 | XX | XX | ID | (No Data) | ATR/QM: Exempt | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Credit/Mtg History | Satisfied | C | A | C | A | CRDCRMH1805 | Debts/obligations not disclosed/accounted for at origination | No | Provide correct 1003 with new HELOC payment due to balance increasing from $68,417 to $147,588.13 per 1003 in file. | 7.20.2026 Client provided LOX stating, This is a DSCR loan that does not qualify on income and debt. Response, per guidelines all real estate owned, along with any associated liens(s) must be disclosed on the application. Condition remains 7.30.2026 Client provided an email from borrower stating we did apply for a cc for the business a couple weeks ago but it was after we closed on the XX triplex and provided HOI policy however did not provide the initial condition info, new HELOC payment due to balance increasing from $68,417 to $147,588; accepting HELOC statement in file (pg 368) with new balance of $147,588.13 and is listed on REO for this property however balances and payment differ, currently showing a payment of $294 with balance of $68,417 however new balance is $147,588 per HELOC document. | Condition satisfied | (No Data) | Not Applicable | CFCFS1741: Credit score
exceeds guidelines - Clayton Comments: 746 FICO exceeds guideline of 720. CFCFS1737: LTV below guideline requirements - Clayton Comments: 80 LTV below guideline of 85. |
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| 96 | XX | XX | ID | (No Data) | ATR/QM: Exempt | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Credit/Mtg History | Satisfied | D | A | D | A | CRDCRMH149 | Missing support docs for VOM/VOR (e.g. cancelled checks) | No | Missing VOM or payment history for XX #XX verifying paid as agreed to July 2026. The account is not reporting on credit and the mortgage statement shows the 6/XX payment was still due as of 6/XX. Loan closed on 7/XX. | 7.20.2026 Client provided evidence June payment was made on June XX, 2026 for XX #XX | Condition satisfied | (No Data) | Not Applicable | CFCFS1741: Credit score
exceeds guidelines - Clayton Comments: 746 FICO exceeds guideline of 720. CFCFS1737: LTV below guideline requirements - Clayton Comments: 80 LTV below guideline of 85. |
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| 98 | XX | XX | CA | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | C | A | C | A | A | A | A | A | C | A | C | A | A | A | A | A | Credit | Terms/Guidelines | Satisfied | C | A | C | A | CRDTER3122 | Loan documents do not meet guideline requirements | No | File is missing Ability to Repay (ATR) Certification completed by underwriter as required per guidelines. | 8.17.2026 Client provided executed ATR UW Certification | Condition satisfied | (No Data) | Not Applicable | CFCFS5269: Minimal use of
credit - Clayton Comments: Minimal usage of available revolving credit lines @ 3.53% CFCFS1737: LTV below guideline requirements - Clayton Comments: LTV is 50%; guidelines allow 90%. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post closing assets $121,000.28 / 21.41 months PITIA > min required of $33,905.34. |
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| 114 | XX | XX | CA | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | C | A | C | A | A | A | C | A | C | A | C | 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 | Need evidence of change of circumstance letter or a copy of a refundable check in the amount of $1.95 for zero tolerance fees.Master Insurance Policy increased from $250 on the LE dated 06/XX/2026 to $251.95 ($67.95 + $184.00) on the CD dated 07/XX/2026. | 08/XX/2026 Client provided a COC dated 7/XX reflecting Master policy increased from $250.00 to 251.95, however it does not state what caused the fee to increase. Condition remains. Provide additional information/Documentation of what change occurred resulting in the increase or PCCD with cure, copy of the cure check, LOE to Borrower and evidence of delivery.08/XX/2026 Client provided COC 7/XX reflecting the increase due to the final order of required condo docs needed. | Condition Satisfied. | (No Data) | Not Applicable | CFCFS1744: DTI below
guideline requirement - Clayton Comments: Borrowers DTI 13.52% is below guideline maximum 50%. CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 18.98% CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower is self-employed and in business for 11 years per CPA letter. |
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| 114 | XX | XX | CA | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | C | A | C | A | A | A | C | A | C | A | C | A | A | A | C | A | Credit | Ability to Repay/Qualified Mortgage | Satisfied | C | A | C | A | CRDATRQM3124 | TILA - Loan subject to Ability to Repay/Qualified Mortgage rule; Lender did not provide an ATR/QM status determination. | No | File is missing lender's QM determination. | 7.31.2026 Client provided Loan Detail Report with Non QM status | Condition satisfied | (No Data) | Not Applicable | CFCFS1744: DTI below
guideline requirement - Clayton Comments: Borrowers DTI 13.52% is below guideline maximum 50%. CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 18.98% CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower is self-employed and in business for 11 years per CPA letter. |
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| 114 | XX | XX | CA | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | C | A | C | A | A | A | C | A | C | A | C | A | A | A | C | A | Credit | Terms/Guidelines | Satisfied | C | A | C | A | CRDTER3122 | Loan documents do not meet guideline requirements | No | File is missing Ability to Repay (ATR) Certification completed by underwriter as required per guidelines. | 8.3.2026 Client provided ATR UW Certification however not signed dated by underwriter. Condition remains 8.4.2026 Client provided executed by UW ATR Certification | Condition satisfied | (No Data) | Not Applicable | CFCFS1744: DTI below
guideline requirement - Clayton Comments: Borrowers DTI 13.52% is below guideline maximum 50%. CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 18.98% CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower is self-employed and in business for 11 years per CPA letter. |
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| 123 | XX | XX | ID | (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: 780 mid score > min required of 680 CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 1.37% CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post closing assets $13,081.54 / 9.61 months PITIA > min required of $8,170.32. |
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| 126 | XX | XX | CA | (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: 774 mid score > min required of 720 CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 6.38% CFCFS2854: Significant time in profession - Clayton Comments: B1 has been in same profession for 10 years. |
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| 127 | XX | XX | NV | (No Data) | ATR/QM: Exempt | 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 23.75% is below guideline maximum 50%. CFCFS1736: Significant time at current residence - Clayton Comments: Borrower has 21 years, 4 months at Primary residence. CFCFS2854: Significant time in profession - Clayton Comments: Borrower has been in same profession for 29 years. |
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| 130 | XX | XX | FL | QM: Safe Harbor (APOR) | QM: Safe Harbor (APOR) | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Assets | Satisfied | C | A | C | A | CRDAST3036 | Assets reflect unsourced deposits | No | Need explanation for the outgoing wire of $40,000 on 6/25 and the incoming wire of $40,000 on 6/30 to XX | 8.27.2026 Client provided LOX regarding wire of $40k outgoing and incoming of the same, being a cancellation on a Release and Cancellation of Contract. | Condition satisfied | (No Data) | Not Applicable | CFCFS1744: DTI below
guideline requirement - Clayton Comments: 45.39 DTI below guideline of 50. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 771 FICO exceeds guideline of 640. |
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| 130 | XX | XX | FL | QM: Safe Harbor (APOR) | QM: Safe Harbor (APOR) | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Assets | Satisfied | D | A | D | A | CRDAST2354 | Asset Verification In File is Incomplete Per Requirements | No | Need the Summary Plan Description for the XX 401K account confirming that the borrower has access to the funds without employment separation. | 8.14.2026 Client provided copy of 401k hardship terms | Condition satisfied | (No Data) | Not Applicable | CFCFS1744: DTI below
guideline requirement - Clayton Comments: 45.39 DTI below guideline of 50. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 771 FICO exceeds guideline of 640. |
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| 131 | XX | XX | CA | QM: Safe Harbor (APOR) | QM: Safe Harbor (APOR) | D | A | D | A | A | A | C | A | D | A | D | A | A | A | C | A | Compliance | TILA/RESPA Integrated Disclosure | Satisfied | C | A | C | A | CMPTRID3626 | TRID - CD: Loan consummated before end of waiting period | No | Please provide evidence that borrower acknowledged receipt of LE dated 07/XX/2026 1 day prior to the issue date of the Initial CD dated 07/XX/2026 | Client provided LE 7/7, COC and Disclosure tracking reflecting completed date 7/XX. | Condition Satisfied. | (No Data) | Not Applicable | CFCFS5269: Minimal use of
credit - Clayton Comments: 26% revolving credit utilization CFCFS1735: Co-Borrower has significant time at current job - Clayton Comments: 11.10 years current job time CFCFS1734: Borrower has significant time at current job - Clayton Comments: 12.3 years current job time |
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| 131 | XX | XX | CA | QM: Safe Harbor (APOR) | QM: Safe Harbor (APOR) | D | A | D | A | A | A | C | A | D | A | D | A | A | A | C | A | Credit | Credit/Mtg History | Satisfied | B | A | B | A | CRDCRMH193 | Length of mortgage/rental history in file does not meet guideline requirement | No | 1st time homebuyers. Per guides VOR required 12 mos. history. | 7.29.2026 Client provided executed copy of Lease agreement and 12 months (most recent) checks history, however don't appear to be cancelled checks. Condition remains for cancelled checks, VOR or bank history verifying clearing of checks. 8.6.2026 Client provided satisfactory verification of rental housing history from 9.1.2020 - current | Condition satisfied | (No Data) | Not Applicable | CFCFS5269: Minimal use of
credit - Clayton Comments: 26% revolving credit utilization CFCFS1735: Co-Borrower has significant time at current job - Clayton Comments: 11.10 years current job time CFCFS1734: Borrower has significant time at current job - Clayton Comments: 12.3 years current job time |
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| 131 | XX | XX | CA | QM: Safe Harbor (APOR) | QM: Safe Harbor (APOR) | D | A | D | A | A | A | C | A | D | A | D | A | A | A | C | A | Credit | Insurance | Satisfied | D | A | D | A | CRDINSR2400 | Missing Flood Certification Document | No | Missing Flood Certification | 7.29.2026 Client provided copy of subject Flood Certification document, zone X | Condition satisfied | (No Data) | Not Applicable | CFCFS5269: Minimal use of
credit - Clayton Comments: 26% revolving credit utilization CFCFS1735: Co-Borrower has significant time at current job - Clayton Comments: 11.10 years current job time CFCFS1734: Borrower has significant time at current job - Clayton Comments: 12.3 years current job time |
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| 137 | XX | XX | CA | (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 guideline of 680. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Total verified assets of $97,448.72 exceeds guideline of $12,462.96 (6 months PITIA for subject property). |
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| 152 | XX | XX | CA | (No Data) | ATR/QM: Exempt | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Assets | Satisfied | D | A | D | A | CRDAST2670 | Asset documentation is insufficient per guideline requirements | No | File is missing documentation of $XX secured loan used towards closing costs as reflected on final 1003. | 8.28.2026 Client provided executed Final CD and executed Note: XX property XX loan from this property supporting receiving funds of $ZZ and monthly payment of $XX (closing simultaneously with subject) | Condition satisfied | (No Data) | Not Applicable | CFCFS1741: Credit score
exceeds guidelines - Clayton Comments: 732 mid score > min required of 720 CFCFS1739: Positive mortgage payment history - Clayton Comments: Borrowers have237 months mortgage payment history 0x30. CFCFS1736: Significant time at current residence - Clayton Comments: Borrowers have 22 years, 4 months at Primary residence. |
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| 153 | XX | XX | PA | (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 | CFCFS1736: Significant time
at current residence - Clayton Comments: Borrower has 5 years, 4 months at Primary residence. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 729 mid score > min required of 720 CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 31.49% |
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| 156 | XX | XX | MA | (No Data) | ATR/QM: Exempt | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | DTI | Satisfied | D | A | D | A | CRDDTI2540 | Missing verification of some or all components of non-subject PITI | No | Missing mortgage statements for XX and XX confirming that taxes and insurance are escrows. | 7.24.2026 Client provided LOX rebuttal stating, mortgage statements on the additional properties owned will not affect the DTI with this being a DSCR loan. Response, Agree however guidelines do state (under required documentation): complete schedule of all real estate owned, indicating financed and/or free and clear properties, Schedule of REO was listed on 1003 however do not reflect the lien associated with the mortgage to support being financed and/or free and clear. In addition, guidelines states (under number of financed properties), all real estate owned, along with any associated lien(s) must be disclosed on the application. Condition remains for REO to be completed as such reflect liens if applicable. 8.4.2026 Client provided Mtg statement for both REO properties: XX. and XX. verifying payment is escrowed | Condition satisfied | (No Data) | Not Applicable | CFCFS1736: Significant time
at current residence - Clayton Comments: Significant time at current residence, 15 years. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 736 FICO exceeds guideline of 720. |
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| 156 | XX | XX | MA | (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 | C | A | C | A | CRDTER3122 | Loan documents do not meet guideline requirements | No | Missing required forms of Supplemental Consumer Information Form, Ability-to-Repay Underwriting Certification, , Notice to Borrower: Ability to Repay Disclosure and Borrowers Affirmation of Information provided to Establish ATR. | 7.24.2026 Client provided rebuttal stating, DSCR loan so Ability to Repay documents are not applicable. Response, agree per guidelines ATR are exempt. Condition remains for completed supplemental consumer information form. 7.27.2026 Client provided Supplemental Consumer Information Form | Condition satisfied | (No Data) | Not Applicable | CFCFS1736: Significant time
at current residence - Clayton Comments: Significant time at current residence, 15 years. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 736 FICO exceeds guideline of 720. |
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| 165 | XX | XX | AZ | (No Data) | ATR/QM: Exempt | C | A | C | A | A | A | A | A | C | A | C | A | A | A | A | A | Credit | Assets | Satisfied | C | A | C | A | CRDAST3078 | Insufficient # of months cash reserves for PITI per guideline requirements | No | Reserves short by $6,997.75. Required reserves are $35,866.88 or 8 months; verified reserves are $28,869.13. | 8.18.2026 Client provided LOX rebuttal and snippet of XX assets that are also being used with balance of $XX Response, Agree file having two months bank statements for XX however both statements are dated Year 2025 and was not considered towards reserves. Initial condition remains, short reserves due to XX assets are from year 20258.20.2026 Client provided LOX stating XX assets were in file in error and further stating guidelines only require 5 months. Response, agree however guidelines require in addition to product requirement, an additional 3 months (for total of 8 months) when DTI is > 45%. Condition remains short reserves due to 8 months required vs 5 months. DTI is > 45% (in which require 3 additional months per Smart Edge). Noted in guidelines under Qualifying ratios. 8.27.2026 Client provided April and May 15,2026 XX statements with balance of $8,633.98; reserves were short by $6,997.75 and additional assets verified of $8,633.98; verified reserves are now 8.36 months. Required 8 months for this transaction | Condition satisfied | (No Data) | Not Applicable | CFCFS5269: Minimal use of
credit - Clayton Comments: Minimal usage of available revolving credit lines @ 18.13% CFCFS1739: Positive mortgage payment history - Clayton Comments: Borrowers have127 months mortgage payment history 0x30. CFCFS1736: Significant time at current residence - Clayton Comments: Borrower have 5 years, 1 months at Primary residence. |
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| 166 | XX | XX | UT | (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: 784 mid score > min required of 720 . CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines at 9.37%. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post closing assets $95,378.16 / 51.61 months PITIA > min required of $11,087.58. |
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| 175 | XX | XX | AZ | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | D | A | A | A | A | A | D | A | D | A | A | A | A | A | D | A | 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 | File is missing Note. QM testing could not be completed. | 8.17.2026 Client provided executed copy of Note however condition remains, DD Firm Non QM status and Lender QM Safe Harbor, QM status differ. 8.18.2026 Client provided QM worksheet stating, QM Ineligible. Response, Non QM | Condition satisfied | (No Data) | Not Applicable | CFCFS1736: Significant time
at current residence - Clayton Comments: B3 has 15 years at Primary residence. CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 11.54% CFCFS2854: Significant time in profession - Clayton Comments: B1 has been in same profession for 9 years, 8 months. |
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| 175 | XX | XX | AZ | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | D | A | A | A | A | A | D | A | D | A | A | A | A | A | D | A | Compliance | Documentation | Satisfied | D | A | D | A | CMPDOC195 | Missing Note | No | Missing Note | 08/XX/2026 Client provided the missing IO Note dated 7/XX. | Condition Satisfied. | (No Data) | Not Applicable | CFCFS1736: Significant time
at current residence - Clayton Comments: B3 has 15 years at Primary residence. CFCFS5269: Minimal use of credit - Clayton Comments: Minimal usage of available revolving credit lines @ 11.54% CFCFS2854: Significant time in profession - Clayton Comments: B1 has been in same profession for 9 years, 8 months. |
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| 189 | XX | XX | PA | Non-QM: Lender documented all ATR UW factors | Non-QM: Lender documented all ATR UW factors | C | A | C | A | A | A | A | A | C | A | C | A | A | A | A | A | Credit | Terms/Guidelines | Satisfied | C | A | C | A | CRDTER3122 | Loan documents do not meet guideline requirements | No | File is missing Ability to Repay (ATR) Certification completed by underwriter as required per guidelines. | 8.10.2026 Client provided executed ATR UW Certification and executed Borrowers Affirmation of ATR however UW Certification reflect Underwriter name as Borrower and signature for UW. Condition remains for executed UW Certification for Borrower, Borrower name goes where Borrower info. 8/11 Client provided corrected ATR Certificate | Satisfied | (No Data) | Not Applicable | CFCFS5269: Minimal use of
credit - Clayton Comments: Minimal usage of available revolving credit lines @ 3.65% CFCFS2854: Significant time in profession - Clayton Comments: Borrower has been in same profession for 10 years. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Post closing assets $71,642.49 / 10.55 months PITIA > min required of $40,727.94. |
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| 192 | XX | XX | TX | (No Data) | ATR/QM: Exempt | C | A | C | A | A | A | N/A | N/A | C | A | C | A | A | A | N/A | N/A | Credit | Terms/Guidelines | Satisfied | C | A | C | A | CRDTER3122 | Loan documents do not meet guideline requirements | No | File is missing Notice to Borrower: Ability to Repay Disclosure and Borrowers Affirmation of Information Provided to Establish Ability to Repay (ATR) as required per guidelines. | 8.31.2026 Client provided executed Notice to Borrower: ATR disclosure however still missing executed Borrower's Affirmation of Info to Establish ATR. 9.1.2026 Client provided executed affirmation of info to establish ATR by both | Condition satisfied | (No Data) | Not Applicable | CFCFS5269: Minimal use of
credit - Clayton Comments: Minimal usage of available revolving credit lines @ 10.03% CFCFS2854: Significant time in profession - Clayton Comments: Borrower has been in same profession for 43 years. CFCFS1736: Significant time at current residence - Clayton Comments: Borrowers have 31 years, 6 months at Primary residence. |
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| 193 | XX | XX | CA | QM: Safe Harbor (APOR) | QM: Safe Harbor (APOR) | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Ability to Repay/Qualified Mortgage | Satisfied | C | A | C | A | CRDATRQM3124 | TILA - Loan subject to Ability to Repay/Qualified Mortgage rule; Lender did not provide an ATR/QM status determination. | No | Missing lender's ATR/QM status determination. | 8.17.2026 Client provided QM Safe Harbor | Condition satisfied | (No Data) | Not Applicable | CFCFS1741: Credit score
exceeds guidelines - Clayton Comments: 752 FICO exceeds guideline of 640. CFCFS1744: DTI below guideline requirement - Clayton Comments: 47.31 DTI below guideline of 50. |
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| 193 | XX | XX | CA | QM: Safe Harbor (APOR) | QM: Safe Harbor (APOR) | D | A | D | A | A | A | A | A | D | A | D | A | A | A | A | A | Credit | Assets | Satisfied | D | A | D | A | CRDAST2354 | Asset Verification In File is Incomplete Per Requirements | No | Missing the Summary Plan Description for the XX 401K account confirming that the borrower has access to the funds without employment separation. | 8.17.2026 Client provided LOX stating, the borrower does not even need this asset for qualification. Response, terms of withdrawal is required when using 401k assets for reserves however also found EMD $XX0 clearing and gave EMD credit. Note: XX retirement is verified in file (pg 403) cannot be borrowed against, considering 401k w/XX | Condition satisfied | (No Data) | Not Applicable | CFCFS1741: Credit score
exceeds guidelines - Clayton Comments: 752 FICO exceeds guideline of 640. CFCFS1744: DTI below guideline requirement - Clayton Comments: 47.31 DTI below guideline of 50. |
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| 194 | XX | XX | SC | (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: Total verified assets of $136,492.36 exceeds requirement of $55,006.41. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 725 FICO exceeds guideline of 720. |
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| 196 | XX | XX | 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: 778 FICO exceeds guideline of 640. CFCFS1744: DTI below guideline requirement - Clayton Comments: 33.11 DTI below guideline of 50. |
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| 199 | XX | XX | 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 | Terms/Guidelines | Satisfied | C | A | C | A | CRDTER3122 | Loan documents do not meet guideline requirements | No | File is missing Ability to Repay (ATR) Certification completed by underwriter as required per guidelines. | 8.28.2026 Client provided executed by UW completed ATR worksheet however Borrower name is blank, condition remains for fully completed ATR UW worksheet (including Borrower name). 8.31.2026 Client provided executed (including Borrower name) UW ATR Certification worksheet | Condition satisfied | (No Data) | Not Applicable | CFCFS1741: Credit score
exceeds guidelines - Clayton Comments: 757 mid score > min required of 720 CFCFS1744: DTI below guideline requirement - Clayton Comments: Borrowers DTI 27.79% is below guideline maximum 50%. CFCFS1734: Borrower has significant time at current job - Clayton Comments: Borrower has 14 years, 1 month with current employer. |
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| 200 | XX | XX | MD | (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: 714 FICO exceeds guideline of 700. CFCFS1731: Verified cash reserves exceed guidelines - Clayton Comments: Cash proceeds of $39,748.90 exceeds the 6 months reserves requirement of $8,504.70. |
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| 201 | XX | XX | SC | (No Data) | ATR/QM: Exempt | A | A | A | A | A | A | A | A | A | A | A | A | A | A | A | A | CFCFS1744: DTI below
guideline requirement - Clayton Comments: 29.48 DTI below guideline of 50. CFCFS1741: Credit score exceeds guidelines - Clayton Comments: 706 FICO exceeds guideline of 640. |
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