ALL LOANS THAT WILL BE AFFECTED BY THESE CHANGES MUST BE LOCKED IN NO LATER THAN FRIDAY, MARCH 21, 2008. NO EXTENSIONS OR RELOCKS WILL BE GRANTED

IMPORTANT INFORMATION REGARDING UPCOMING AGENCY UPDATES - Elimination of LTVs 97.01-100%, Revised Minimum Credit Score Requirements and Cash-Out Refinance Eligibility for Transactions Requiring Mortgage Insurance

Due to continued mortgage insurance (MI) company product eligibility pull backs, we must implement the changes outlined below for our conventional Agency loan programs. These changes will be effective for locks on or after Friday, March 21, 2008. All loans that are locked PRIOR to March 21, 2008 will be honored; however, must be closed and funded by their original lock expiration dates. Please review your pipeline carefully to confirm if they are any loans that need to be reviewed and submitted to a MI company for MI commitment. Please note the commitment is based on the data submitted so in all cases please confirm accuracy of the information PRIOR to requesting MI. Lock-in extensions and re-locks will NOT be granted.

* The maximum allowable LTV will be reduced to 97%, regardless of the AUS approval As a result, the Fannie Mae Flexible 100, MyCommunity 100 and Teacher, HealthCare Worker & Safety 1st 100 loan programs are being eliminated.

* For all traditionally underwritten, DU "Approve/Eligible" and LP "Accept/Eligible" cash-out refinance transactions, a minimum 680 credit score (for ALL borrowers) will be required for LTVs greater than 80%, regardless of the AUS approval.

* For all traditionally underwritten and AUS (DU and LP) processed investment property transactions, a minimum 660 credit score (for ALL borrowers) will be required for LTVs greater than 80%, regardless of the AUS approval.

UPDATES TO THE PORTFOLIO LIBOR ARMS AND KEY JUMBO LOAN PROGRAMS - Incorporation of Previously Announced Updates and Miscellaneous Clarifications

The Portfolio LIBOR ARMs and Key Jumbo product descriptions are being been revised to incorporate the following updates  and clarifications:

* elimination of the primary wage earner's credit score for credit and pricing qualification,

* elimination of the Interest Only feature for all 3-4 unit properties,

* increase in the minimum credit score requirement and decrease in maximum cash-out at certain LTV/TLTV loan amount combinations on primary residence cash-out refinance transactions and second home transactions,

* elimination of the 85% LTV on second home cash-out transactions,

* clarification that if the borrower owns their residence free and clear, a twelve (12) month verification of mortgage is not required, and

* clarification regarding the qualifying rate for transactions with trailing co-borrower income under the Portfolio LIBOR ARMs loan program.