WHOLESALE LENDING - AT-A-GLANCE PROGRAM GUIDE

1 WHOLESALE LENDING - AT-A-GLANCE PROGRAM GUIDE portfolio EXPRESS REFINANCE FILE/PACKAGE MUST BE CLEARLY IDENTIFIED AS portfolio EXPRESS Broker- glance -Pltfrm portfolio Express Page 1 of 5 Rev. 05/24/2019 DESCRIPTION This PROGRAM is designed to simplify processing for no-cash-out/rate and term refinances of existing Union Bank Mortgages. It is intended to ease the documentation burden for current Union Bank Borrowers who are refinancing their existing Union Bank-Serviced Mortgage into a new portfolio -product and is particularly useful in a declining Interest Rate market. Copy of Note from the Existing Mortgage Required in the new file. Union Bank to provide. Doc Type On Platform, choose portfolio Express Tax Transcripts/Paystub-Stated Assets Eligibility Described as follows: Existing Mortgage Any existing Mortgage that is currently serviced by UB NOTE: The existing Mortgage must have been originated by Union Bank. Mortgages originated by Banks acquired by Union Bank are not eligible.

2 NOTE: The payoff of an unseasoned cash-out refinance is not eligible for a portfolio Express refinance. NOTE: FlexEquity loans in 1st lien position are not eligible for portfolio Express refinances Benefit Of Refinance Worksheet Will be completed by the Union Bank Underwriter on each portfolio Express No Cash-Out Refinance. The Benefit of Refinance Worksheet must include a description of the benefit of the refinance to the Borrower. New Mortgage portfolio Products only (including EOM if the property is located in an eligible census tract). Loan Amount The new loan amount may exceed the balance of the existing Mortgage by the amount of closing costs, including pre-paid items, financing costs and the cost of a pre-payment penalty. Maximum Loan Amount $4,000,000 Maximum LTV For both new and existing/current Mortgage: Primary, Owner-Occupied & 2nd Home 80% Investment Property 75% Prepayment Penalty All prepayment penalties applicable on the existing Mortgage being paid off must be paid and will not be waived.

3 Proceeds can be used for: Pay closing costs, including pre-paid items, financing costs and pre-payment penalty. Payoff of existing junior lien is not permitted. Any existing junior lien can be subordinated reference Subordinate Financing/Maximum TLTV, below. Incidental Cash-Out Lesser of 2% of the loan amount or $2,000. For investment property loans, maximum incidental cash to Borrower is $1,000. APPRAISAL A new appraisal is required. A 2nd appraisal is required according to Union Bank appraisal guidelines (refer to Broker glance Appraisal). Only one appraisal and a desk review ordered by Union Bank is required if: The loan amount is less than or equal to $4,000,000, and The loan amount is less than or equal to the principal balance of the Borrower s existing loan (Borrowers are paying all closing costs out of pocket). If the loan amount is greater than $4,000,000 or the loan amount is greater than the principal balance on the Borrower s existing loan, the second appraisal requirements apply.

4 Please refer to Broker glance Appraisal Requirements. WHOLESALE LENDING - AT-A-GLANCE PROGRAM GUIDE portfolio EXPRESS REFINANCE FILE/PACKAGE MUST BE CLEARLY IDENTIFIED AS portfolio EXPRESS Broker- glance -Pltfrm portfolio Express Page 2 of 5 Rev. 05/24/2019 BORROWER ELIGIBILITY Borrowers on the existing loan must be the same as on the new loan, except if a divorce or death can be documented. A change in vesting from an individual(s) to a Revocable Trust is acceptable, if Trustors and Trustees are the same as the existing Borrowers. Non-Individual Entity Borrowers Not Eligible CREDIT Three-file merged credit report required. No 30-day Mortgage lates in the previous (12) months. A minimum credit score of 680 is required. The credit score must be considered valid (refer to Broker glance -Credit). Other than meeting the requirements for a valid credit score, there are no other minimum tradeline requirements. DEBT RATIOS Refer to the applicable PROGRAM on the AT-A-GLANCE portfolio Product Information for the debt ratios.

5 ADDITIONAL DOCUMENTATION INCOME IRS Form 4506-T All Borrowers must sign an IRS form 4506-T at submission and then again at closing. Union Bank will execute the 4506-T on all portfolio Express transactions. NOTE: If Union Bank is unable to obtain tax transcripts from the IRS due to identity theft or other concerns, full documentation is required. Self-Employed Borrowers/Income Verified with Tax Returns For self-employed Borrowers or Borrowers with a source of income that is verified with tax returns, the Borrower s income will be calculated from the tax returns transcripts, when possible. Complete tax returns are required when: The tax transcripts do not show sufficient income to support the loan request At the Underwriter s discretion, the Underwriter is unable to calculate income from the tax return transcripts or if the Underwriter determines additional information from the tax returns is needed. Complete tax returns may be required if taxes are filed jointly but only one spouse is on the loan.

6 If documentation can be provided showing the income on the tax transcripts belongs to our Borrower, tax returns may not be required. Some examples of documentation that may show that the income belongs to our Borrower include W-2s, 1099 s for social security/pension income, and K-1s. If the Borrower s existing loan was standard documentation, it may be possible to verify our Borrower s income from the previous loan file. Verification of Business - Verification that the Borrower s business is currently in existence and active must be verified by a Union Bank employee. Refer to Broker- glance Income Documentation, Verification of Self-Employment for additional information. Salaried Borrowers A current paystub showing year-to-date earnings must be provided. A Verbal Verification of Employment is not required for salaried Borrowers under portfolio Express guidelines. Asset Utilization Income If the existing loan was standard documentation and asset utilization income was included in the previously qualifying income, this income can be used if the assets stated on the loan application are sufficient to support the asset utilization income stated on the loan application.

7 If asset utilization was not included in the income calculation WHOLESALE LENDING - AT-A-GLANCE PROGRAM GUIDE portfolio EXPRESS REFINANCE FILE/PACKAGE MUST BE CLEARLY IDENTIFIED AS portfolio EXPRESS Broker- glance -Pltfrm portfolio Express Page 3 of 5 Rev. 05/24/2019 ADDITIONAL DOCUMENTATION (CONTINUED) for the previously loan, it can only be used if assets are verified as part of the portfolio Express refinance. ASSETS - All assets must be disclosed on the application. Source of Closing Funds - The source of closing funds must be described on the first page of the application. The amount of stated assets must support the sources described and be sufficient to cover closing costs. Sources which are customarily unacceptable, such as cash-on-hand, unsecured borrowed funds, sweat equity, etc., are unacceptable for this PROGRAM as well. Verification of Funds at Closing Funds brought to close by the Borrower must have evidence that they came from the Borrower and must come from a financial institution that was disclosed by the Borrower on the loan application.

8 Gifts - Gift funds are not allowed. Reserves Not required. BORROWER ELIGIBILITY Maximum Number of Financed Properties If the loan is on a second home or investment property, the existing file must be reviewed if the Borrower owns more than (4) financed properties. If the number of financed properties is the same as the when the existing loan was originated, there are no additional requirements. Additionally, if the Borrower owned (5) to (10) financed properties when the existing loan was originated and still owns (5) to (10) financed properties, there are no additional requirements. If the number of financed properties was less than (5) when the existing loan was originated, but the Borrower now owns (5) to (10) financed properties, refer to Broker glance Key UW Guidelines, Maximum Number of Financed Properties, for additional requirements that would now apply. If the number of financed properties was less than (10) when the original loan was originated, but now the number of financed properties is greater than (10), the loan is not eligible.

9 FILE DOCUMENTATION Application A new application is required. By signing the application, the Borrower certifies the accuracy of the information. Any white-outs or other corrections in the income or asset sections of the original application must be initialed by the Borrower(s). The Bank reserves the right to verify the asset information at some future date. The application is completed as follows: Assets Assets must be stated on the application. Disposition of Present Residence Must be stated on the Schedule of Real Estate Owned. Closing Funds - Source of funds required for closing must be stated on the application. Employment / Income The following information must be present on the application: Amount(s) of income; Employer name, address, telephone number; Date employment began or date business was started, etc.; Sources for non-employment income, and the length of time received must also be included on the application. Schedule of Real Estate Owned When Borrower owns real property, the Schedule of Real Estate Owned must be completed.

10 Request for Validation of Income / IRS 4506-T IRS Form 4506-T must be completed for the applicable tax years and executed by the Borrower at time of application and again at closing. WHOLESALE LENDING - AT-A-GLANCE PROGRAM GUIDE portfolio EXPRESS REFINANCE FILE/PACKAGE MUST BE CLEARLY IDENTIFIED AS portfolio EXPRESS Broker- glance -Pltfrm portfolio Express Page 4 of 5 Rev. 05/24/2019 ADDITIONAL DOCUMENTATION (CONTINUED) NOTE: The 4506-T must be executed on all portfolio Express Loans. Income will be calculated from the tax transcripts. EMPLOYMENT / INCOME - The following requirements must be met, depending on the employment type: Rental Income If not shown on the tax transcripts, cash flow from any rental income stated on the application is calculated by deducting the PITI from 75% of the stated gross rent amount(s) and must be supported with lease agreements. Salaried - Application information must indicate two continuous years of employment with the same employer, or an established and consistent source of income for (2) years.