1. CALHFA PROGRAM TRAINING Offered through Affinity Lending Group Affinity Lending Group Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered trademark of Freddie Mac. This presentation is a summary and is not complete. Contact your ALG AE for complete program guidelines. This information is for mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of the date shown below and is subject to change without notice. 07/24 /2008

7. Borrower Requirements 06/06/09 Topic Description First Time Home Buyer Borrower must a 1 st Time Home Buyer. (Requirement is waived if property is located in a Federally Designated Targeted Area) Income Limit Have an Annual Household/Family Income that does not exceed Income Limits for the family size and county in which the home is located. Down Payment Have enough money to cover the down payment (usually 3% - 5%) plus closing costs. To help with this restriction, CalHFA offers Down Payment Assistance programs. Occupancy Property must be owner occupied for term of the loan or until sold. Underwriting Meet Credit, Income and loan requirements of the CalHFA lender and Mortgage Insurer. Eligible Borrowers Be a U.S. Citizen, a National, or a qualified Alien as defined by the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).

13. Sales Price Limits 06/06/09 CalHFA maintains Sales Price limits that compare favorably to the Median Sales Price for each County in most cases. See samples below – March ‘08 CalHFA Sales Price Limits vs. May ‘08 Median Sales Prices: CalHFA Sales Price Limits (Mar. 08) vs. Median Sales Price (May 2008) (Non Targeted Resale areas) County CalHFA Sales Price Limits (Mar. 08) Median Sales Price Est . (May. 08) Fresno $381,250.00 $220,000.00 Kern $368,750.00 $210,750.00 Los Angeles $729,750.00 $420,500.00 Orange $729,750.00 $485,000.00 Merced $472,500.00 $176,000.00 Riverside $500,000.00 $287,250.00 San Bernardino $500,000.00 $250,000.00 San Diego $697,500.00 $380,000.00 Sacramento $580,000.00 $225,000.00 Stanislaus $429,619.00 $214,500.00 Tulare $325,000.00 $199,500.00 Often New Construction Sales Price Limits and Sales Price Limits in Targeted areas are substantially higher than the Non-Targeted Resale Limits. Source: www.calhfa.ca.gov March 2008 & California Association of Realtors Sales Reports for May 2008

14. CA Median Sales Price Comparison 06/06/09 CA Median Home Price Comparison Comparison Chart (November 2007 – May 2008) (Non Targeted Resale areas) County May 2008 April 2008 Feb 2008 Jan 2008 Dec 2007 Nov 2007 Fresno $220,000.00 $237,250.00 $250,000.00 $250,000.00 $256,500.00 $250,750.00 Kern $210,750.00 $215,000.00 $230,500.00 $224,000.00 $240,000.00 $246,000.00 Los Angeles $420,500.00 $435,000.00 $460,000.00 $460,000.00 $470,000.00 $497,000.00 Orange $485,000.00 $505,000.00 $520,000.00 $520,000.00 $560,000.00 $593,000.00 Merced $176,000.00 $186,000.00 $225,500.00 $215,000.00 $253,750.00 $266,000.00 Riverside $287,250.00 $294,000.00 $325,000.00 $331,500.00 $354,000.00 $359,000.00 San Bernardino $250,000.00 $265,000.00 $290,000.00 $297,000.00 $313,750.00 $330,000.00 San Diego $380,000.00 $400,000.00 $413,500.00 $430,000.00 $437.000.00 $442.500.00 Sacramento $225,000.00 $232,000.00 $254,000.00 $250,000.00 $280,000.00 $288,750.00 Stanislaus $214,500.00 $225,000.00 $250,250.00 $260,000.00 $281,500.00 $285,000.00 Tulare $199,500.00 $196,000.00 $216,500.00 $210,000.00 $219,500.00 $231,500.00 Often New Construction Sales Price Limits and Sales Price Limits in Targeted areas are substantially higher than the Non-Targeted Resale Limits. Source: California Association of Realtors 2008 Sales Report

19. Conventional 40 Yr Fixed 06/06/09 Topic Description Interest Rate Interest Rate is Fixed & Fully Amortized for the entire term of the loan. (No differential in interest rate between counties and income levels) Term 40 Years – Currently @ 7.125% as of 7/24/2008 LTV Max LTV: 95% Manufactured Home Max LTV: 90% CLTV Max CLTV: 102% Manufactured Home Max CLTV: 90% Max Origination Fee 1.50% Origination Fee (or combination of Origination Fee & Discount Points) Discount Fee Allowed – See Origination Fee for maximum allowed Max Loan Amount 100% of allowable sales price in county where property is located Subordinate Financing AHPP, SFF, HICAP (Conventional Only) or CHAP, ECTP or CHDAP

20. Conventional Interest Only Plus 06/06/09 Topic Description Interest Rate Interest Rate is Fixed for the entire term of the loan. Currently at 7.00% Conf IO (Up to $450k) and 7.375% Non Conf IO (> $450k) as of 7/24/2008. Qualifying Rate Qualify borrower at the Fully Amortized Rate Term 35 Year Term: Interest-only payments for the first 5 years, followed by a 30-year fully amortized loan LTV Max LTV: 95% Manufactured Home Max LTV: 90% CLTV Max CLTV: 102% Manufactured Home Max CLTV: 90% Max Origination Fee 1.50% Origination Fee (or combination of Origination Fee & Discount Points) Discount Fee Allowed – See Origination Fee for maximum allowed Max Loan Amount Conforming IO loans – Up to $450,000 Non Conforming – Over $450,000 up to 100% of allowable sales price in county where property is located Subordinate Financing HICAP (Conventional Only) or CHAP, ECTP or CHDAP, SFF

22. Subordinate Financing Options 06/06/09 * Different Income Limits Affinity Lending Group ECTP AHPP SFF * HICAP ( Conventional loans only ) CHAP CHDAP *

25. CHAP 06/06/09 CalHFA Housing Assistance Program (Available with a Conventional or FHA 1 st Mortgage) Target Market Low to Moderate Income First-Time Home Buyers (See website for eligible counties) Monthly Payments Silent 2 ND loan with NO SCHEDULED MONTHLY PAYMENTS Loan Amount 2% of Sales Price or Appraised Value whichever is less for properties in CHAP designated areas Term Matches term of 1 st Mortgage - 30 Years Use of Funds For Down Payment ONLY Interest Rate 7.00% Simple Interest Income Restriction Borrower’s Income cannot exceed CalHFA Income Limits Due Date Deferred until the Note becomes due and payable, paid in full, refinanced, or if the property is sold or transferred Lien Position 2 nd Combine with other Assistance AHPP, SFF, an d/or ECTP or CHDAP (only one) CHAP 2 ND IS NOT FORGIVEN (CANNOT BE COMBINED WITH A HICAP 2 ND LOAN)

26. CHDAP 06/06/09 California Homebuyer’s Downpayment Assistance Program ( Available with CalHFA or Non CalHFA 1 st Mortgage ) **CalHFA just received an additional $100 Mil as a result of Proposition 1C to continue funding this program making it possible for more homebuyers in CA to purchase a home** Target Market Low to Moderate Income First-Time Home Buyers Monthly Payments Silent 2 ND loan with NO SCHEDULED MONTHLY PAYMENTS Loan Amount 3% of Sales Price or Appraised Value whichever is less Term Matches term of 1 st Mortgage Use of Funds Can be used for Down Payment or Closing Costs Interest Rate 3.25% Simple Interest Due Date Deferred until the Note becomes due and payable, paid in full, refinanced, or if the property is sold or transferred Income Restrictions Borrower’s Income cannot exceed HCD Moderate defined Income Limits Lien Position May be a Junior to all loans Combine with other DAP AHPP, HICAP (Conventional Only), SFF, CHAP CHDAP 2 ND IS NOT FORGIVEN (Cannot be combined with ECTP) NEW : All CHDAP regardless of insurer of 1 st Mortgage must meet CalHFA Conventional Loan UW guidelines. This includes Credit history, DTI, etc. Eg., LTV > 95% requires min. 680 score; 620 for =<95% LTV

27. HICAP 06/06/09 High Cost Area Home Purchase Program (Available in CalHFA High Cost Counties – CONVENTIONAL ONLY ) Target Market FTHB purchasing in CalHFA designated High Cost Counties (See website for eligible counties) Monthly Payments Silent 2 ND loan with NO SCHEDULED MONTHLY PAYMENTS Loan Amount 4% of Sales Price or Appraised Value whichever is less for properties in designated HICAP areas Term Matches term of 1 st Mortgage Use of Funds Can be used for Down Payment Assistance ONLY Interest Rate 7.00% Simple Interest Due Date Deferred until the Note becomes due and payable, paid in full, refinanced, or if the property is sold or transferred Income Restriction Borrower’s Income cannot exceed CalHFA Income Limits Lien Position Must record in 2 nd lien position Combine with other assistance AHPP, SFF , and/or ECTP or CHDAP (only one) HICAP 2 ND IS NOT FORGIVEN (CANNOT BE COMBINED WITH CHAP 2 ND LOAN)