# EDGAR Filing Document

**Accession Number:** 0001970036
**File Stem:** 0001193125-23-079295
**Filing Date:** 2023-3
**Character Count:** 30068
**Document Hash:** 15d49aced8eb71f469cc766ca1337067
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-079295.hdr.sgml**: 20230324

**ACCESSION NUMBER**: 0001193125-23-079295

**CONFORMED SUBMISSION TYPE**: ABS-15G

**PUBLIC DOCUMENT COUNT**: 7

**CONFORMED PERIOD OF REPORT**: 20230324

**ITEM INFORMATION**: Findings and Conclusions of the Third Party Due Diligence Provider Obtained by the Issuer

**FILED AS OF DATE**: 20230324

**DATE AS OF CHANGE**: 20230324

**ABS RULE**: RULE-15GA2

**REGISTERED ENTITY**: N

**ABS ASSET CLASS**: Residential mortgages - HELOC

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Figure HELOC Master Depositor Trust
- **CENTRAL INDEX KEY:** 0001970036
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ABS-15G
- **SEC ACT:** Dodd Frank Act
- **SEC FILE NUMBER:** 025-06455
- **FILM NUMBER:** 23760883

**BUSINESS ADDRESS:**
- **STREET 1:** 650 CALIFORNIA STREET
- **STREET 2:** SUITE 2700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94108
- **BUSINESS PHONE:** 7145990329

**MAIL ADDRESS:**
- **STREET 1:** 650 CALIFORNIA STREET
- **STREET 2:** SUITE 2700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94108
**DEPOSITOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Figure HELOC Master Depositor Trust
- **CENTRAL INDEX KEY:** 0001970036
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ABS-15G
- **SEC ACT:** Dodd Frank Act

**BUSINESS ADDRESS:**
- **STREET 1:** 650 CALIFORNIA STREET
- **STREET 2:** SUITE 2700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94108
- **BUSINESS PHONE:** 7145990329

**MAIL ADDRESS:**
- **STREET 1:** 650 CALIFORNIA STREET
- **STREET 2:** SUITE 2700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94108
**SECURITIZER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Figure HELOC Master Depositor Trust
- **CENTRAL INDEX KEY:** 0001970036
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ABS-15G
- **SEC ACT:** Dodd Frank Act

**BUSINESS ADDRESS:**
- **STREET 1:** 650 CALIFORNIA STREET
- **STREET 2:** SUITE 2700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94108
- **BUSINESS PHONE:** 7145990329

**MAIL ADDRESS:**
- **STREET 1:** 650 CALIFORNIA STREET
- **STREET 2:** SUITE 2700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94108

------

------

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

------

**FORM ABS-15G** 

------

**ASSET-BACKED SECURITIZER REPORT** 

**PURSUANT TO SECTION 15G OF THE** 

**SECURITIES EXCHANGE ACT OF 1934** 

**Check the appropriate box to indicate the filing obligation to which this form is intended to satisfy:** 

☐ **Rule 15Ga-1(c)(1) under the Exchange Act (17 CFR 240.15Ga-1(c)(1)) for the reporting period to** 

☐ **Rule 15Ga-1(c)(2)(i) under the Exchange Act (17 CFR 240.15Ga-1(c)(2)(i)) for the quarterly reporting period to** 

☐ **Rule 15Ga-1(c)(2)(ii) under the Exchange Act (17 CFR 240.15Ga-1(c)(2)(ii)) for the annual reporting period to** 

☒ **Rule 15Ga-2 under the Exchange Act (17 CFR 240.15Ga-2)** 

**Central Index Key Number of depositor: 0001970036** 

------

## FIGRE Trust 2023-HE1
**(Exact name of Issuer as specified in its charter)** 

------

**Central Index Key Number of issuing entity (if applicable): N/A** 

**Central Index Key Number of underwriter (if applicable): N/A** 

**Thomas Milani (628) 236-5820** 

**Name and telephone number, including area code, of the person** 

**to contact in connection with this filing** 

------

Indicate by check mark whether the securitizer has no activity to report for the initial period pursuant to Rule 15Ga-1(c)(1) ☐

Indicate by check mark whether the securitizer has no activity to report for the quarterly period pursuant to Rule 15Ga-1(c)(2)(i) ☐

Indicate by check mark whether the securitizer has no activity to report for the annual period pursuant to Rule 15Ga-1(c)(2)(ii) ☐

------

**INFORMATION TO BE INCLUDED IN THE REPORT** 

**PART I: REPRESENTATION AND WARRANTY INFORMATION** 

**N/A** 

**PART II: FINDINGS AND CONCLUSIONS OF THIRD-PARTY DUE DILIGENCE REPORTS:** 

---

| | |
|:---|:---|
| **Item 2.01** | **Findings and Conclusions of Third Party Due Diligence Reports Obtained by the Issuer**  |

---

Attached as Exhibit 99.1 hereto is an Independent Accountants' Agreed-Upon Procedures Report, dated March 15, 2023 of KPMG LLP, obtained by the issuer, which report sets forth the procedures and findings with respect to certain agreed-upon procedures performed by KPMG LLP pertaining to the issuer's Series 2023-HE1 Mortgage-Backed Notes.

Attached as Exhibit 99.2 hereto is an Executive Summary Third Party Due Diligence Review, dated March 21, 2023, of Digital Risk, LLC, obtained by the issuer, which report sets forth the procedures and findings with respect to certain agreed-upon procedures performed by Digital Risk, LLC pertaining to the issuer's Series 2023-HE1 Mortgage-Backed Notes.

**EXHIBIT INDEX** 

---

| | |
|:---|:---|
| Exhibit 99.1: | Independent Accountants' Agreed-Upon Procedures Report, dated March 15, 2023 of KPMG LLP. |
| Exhibit 99.2: | Executive Summary Third Party Due Diligence Review, dated March 21, 2023 of Digital Risk, LLC. |

---

------

**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the reporting entity has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| Figure HELOC Master Depositor Trust<br> (Depositor)<br> By: Figure Lending LLC, as sole member<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: Figure Lending Corp., as<br>sole member | Figure HELOC Master Depositor Trust<br> (Depositor)<br> By: Figure Lending LLC, as sole member<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: Figure Lending Corp., as<br>sole member |
| By: | /s/ Thomas Milani |
|  | Name: Thomas Milani<br> Title: Chief Financial Officer |

---

Date: March 24, 2023

## Exhibit 99.1

---

| | |
|:---|:---|
| ![LOGO](g467271dsp3.jpg) |  |
|  | KPMG LLP<br> Suite 900<br> 8350 Broad Street<br> McLean, VA 22102 |

---

**Independent Accountants' Agreed-Upon Procedures Report**

Figure Lending LLC (the "Company")

Jefferies LLC

J.P. Morgan Securities LLC

Goldman Sachs & Co. LLC

(together, the "Specified Parties")

Re: FIGRE Trust 2023-HE1– Data File Procedures

We have performed the procedures described below on the specified attributes in an electronic data file entitled "FIGRE_2023_HE1_20230228_Upsize_v5.xlsx" (the "Data File"), provided by the Company on March 9, 2023, containing information on 3,568 home equity lines of credit ("HELOCs") as of February 28, 2023, which we were informed are intended to be included as collateral in the offering by FIGRE Trust 2023-HE1. The Company is responsible for the specified attributes identified by the Company in the Data File.

The Specified Parties have agreed to and acknowledged that the procedures performed are appropriate to meet their intended purpose of assisting specified parties in evaluating the accuracy of the specified attributes in the Data File. This report may not be suitable for any other purpose. No other parties have agreed to or acknowledged the appropriateness of these procedures for the intended purpose or any other purpose.

The procedures performed may not address all the items of interest to a specified party of this report and may not meet the needs of all specified parties of this report and, as such, specified parties are responsible for determining whether the procedures performed are appropriate for their purposes. We make no representation regarding the appropriateness of the procedures either for the intended purpose or for any other purpose.

Unless otherwise stated, the following definitions have been adopted in presenting our procedures and findings:

• The term "compared" means compared to the information shown and found it to be in agreement, unless otherwise
stated. Such compared information was deemed to be in agreement if differences were within the reporting threshold.

• The term "recomputed" means recalculated and compared the result to the information shown and found it to be in
agreement, unless otherwise stated. Such recomputed information was deemed to be in agreement if differences were within the reporting threshold.

• The term "reporting threshold" means that dollar amounts, decimals, and percentages were within $1.00, 0.1, and
0.1%, respectively.

• The term "Source Documents" means copies of the HELOC agreement and credit report data document for each Selected
HELOC (defined below) provided by the Company. We make no representation regarding the validity or accuracy of these documents or the execution of the HELOC agreement by the borrower or the validity of the borrower(s) signature(s).

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

------

![LOGO](g467271dsp4.jpg)

The procedures we were instructed by the Company to perform and the associated findings are as follows:

A. We randomly selected a sample of 338 HELOCs from the Data File (the "Selected HELOCs"). For purposes of this
procedure, the Company did not inform us of the basis they used to determine the number of Selected HELOCs we were instructed to randomly select from the Data File.

B. For each Selected HELOC, we compared the specified attributes listed in Exhibit A to the corresponding information
included in the Source Documents listed in the "Source Documents" column of Exhibit A. The Specified Parties indicated that the absence of any of the information in the Source Documents or the inability to agree the indicated information
from the Data File to the Source Documents for each of the attributes identified constituted an exception.

We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants, which involves us performing the specific procedures agreed to and acknowledged above and reporting on findings based on performing those procedures. We were not engaged to, and did not, conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the specified attributes in the Data File. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported.

We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

The procedures performed were applied based on the information included in the Data File and Source Documents, without verification or evaluation of such information by us; therefore, we express no opinion or any other form of assurance regarding (i) the reasonableness of the information provided to us by the Company, (ii) the physical existence of the HELOCs, (iii) the reliability or accuracy of the Source Documents which was used in our procedures, or (iv) matters of legal interpretation.

The procedures performed were not intended to address, nor did they address: (i) the conformity of the origination of the HELOCs to stated underwriting or credit extension guidelines, standards, criteria or other requirements, (ii) the value of collateral securing any such HELOCs being securitized, (iii) the compliance of the originator of the HELOCs with federal, state, and local laws and regulations, or (iv) any other factor or characteristic of the HELOCs that would be material to the likelihood that the issuer of the asset-backed securities will pay interest and principal in accordance with applicable terms and conditions. The procedures performed were not intended to satisfy any criteria for due diligence published by the nationally recognized statistical rating organizations ("NRSROs").

The terms of our engagement are such that we have no responsibility to update this report because of events and circumstances that may subsequently occur.

This report is intended solely for the information and use of the Specified Parties. It is not intended to be and should not be used by any other person or entity, including investors or the NRSROs, who are not identified in the report as the Specified Parties but may have access to this report as required by law or regulation.

![LOGO](g467271dsp4a.jpg)

McLean, Virginia

March 15, 2023

------

**THE FOLLOWING PAGE CONSTITUTES EXHIBIT A** 

------

**Exhibit A** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; **Attribute**<br> **(Attribute Name in the Data File)**<br>| **Source Document** |
| &nbsp;&nbsp;&nbsp; Original Balance<br> (original_loan_bal)<br>| HELOC Agreement |
| &nbsp;&nbsp;&nbsp; Property City<br> (property_city)<br>| HELOC Agreement |
| &nbsp;&nbsp;&nbsp; Property State<br> (property_state)<br>| HELOC Agreement |
| &nbsp;&nbsp;&nbsp; Property Zip<br> (property_zip)<br>| HELOC Agreement |
| &nbsp;&nbsp;&nbsp; Original Term<br> (original_loan_term)<br>| HELOC Agreement |
| &nbsp;&nbsp;&nbsp; Original Draw Term<br> (loan_draw_orig_term)<br>| HELOC Agreement |
| &nbsp;&nbsp;&nbsp; Original Interest Rate<br> (original_interest_rate)<br>| HELOC Agreement |
| &nbsp;&nbsp;&nbsp; Original Credit Score<br> (orig_credit_score)<br>| Credit Report Data Document |
| &nbsp;&nbsp;&nbsp; Estimated Initial Monthly Payment<br> (est_initial_monthly_pmt)<br>| HELOC Agreement |

---

## Exhibit 99.2

**Exhibit 99.2**![LOGO](g467271dsp001.jpg)

**EXECUTIVE SUMMARY** 

**THIRD PARTY DUE DILIGENCE REVIEW** 

**Overview** 

Digital Risk, LLC ("Digital Risk"), a third party due diligence provider, performed the review described below on behalf of its client, Figure Lending LLC. and/or its affiliates. ("Client"). The review included a total of 1071 newly originated residential mortgage Home Equity Line of Credit (HELOC) loans, in connection with the securitization identified as FIGURE 2023-HE1 (the "Securitization"). The review began on February 20, 2023, and concluded on March 21, 2023.

**Scope of Review** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **CREDIT GUIDELINE REVIEW.** 

Digital Risk performed a Credit Guideline review. The Credit Guideline review relies on data provided by a third party vendor engaged by the Client instead of re-verifying such data in borrower source documents. DBRS has reviewed both Digital Risk's and the Client's process and permitted Digital Risk to assign securitization grades as defined by the DBRS criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Credit and Property Guideline Adherence

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Using data received from Client, Digital Risk will confirm that credit and property attributes conform to
Figure's guideline requirements for each borrower and that the borrower's credit profile adhered to the guidelines

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. FICO/LTV/LIEN/Occupancy Matrix Adherence

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Income, Debt and DTI calculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Income will be re-calculated using the raw data from PointServ for
paystubs and tax transcripts; and from Plaid for bank statement deposits and asset depletion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Debt will be recalculated using raw data from the data extract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The income and debt data will be used to determine if the applicant qualifies per the guideline credit
eligibility criteria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● DTI will be recalculated with the income and debt data to determine the DTI meets the guideline requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● No Income Documents will be utilized in the re-calculations but rather
confirming the data from the source documents, PointServ and Plaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Credit Report data review:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Digital Risk will review Credit Report data received from client to ensure that the items listed fit within
the guidelines/Matrices:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Mortgage Late payments, Collection accounts, overall total inquiries, Bankruptcies and foreclosures.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Credit score will be used to determine the maximum allowable loan amount per guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Title Search, or raw data provided by Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The lien position (first or junior) is determined through review of data provided by Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) DR will review this data, in conjunction with the Figure decisioning algorithms to recalculate the lien
balances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>AVM Valuation:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) DR will review raw data AVM outputs / data to ensure that Figure has complied with its valuation criteria
outlined in their guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Review Closing Documents</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Review security document and Note/HELOC Agreement to ensure the Loan was closed in accordance with approval
and with all required signatures

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **COMPLIANCE REVIEW.** 

"Compliance Review" means that Digital Risk reviewed each Loan to determine, as applicable, to the extent possible and subject to the caveats below, whether the Loan complies with the applicable Federal, State, and local regulatory requirements as noted below, each as amended, restated and/or replaced from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Federal Truth in Lending Act</u> ("TILA"), as implemented by Regulation Z, 12 C.F.R. Part 1026,
as set forth below including 1026.6, 1026.15 and 1026.40.

Rescission

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Failure to provide the right of rescission notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. failure to provide the right of rescission notice in a timely manner and to the correct consumer(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. errors in the right of rescission notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. failure to provide the correct form of right of rescission notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. failure to provide the three (3) business day rescission period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. any material disclosure violation on a rescindable loan that gives rise to the right of rescission under
TILA, which means the required disclosures of the annual percentage rate, the finance charge, the amount financed, the total of payments, the payment schedule, the HOEPA disclosures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>TILA</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>High-cost Mortgage (§§1026.31, 32 and 33):</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Points and fees threshold test;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. APR threshold test;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Prepayment penalty test; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Compliance with the disclosure requirements, limitation on terms and prohibited acts or practices in
connection with a high-cost mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Other Provisions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Texas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The disclosure requirements and prohibitions of Section 50(a)(6), Article XVI of the Texas Constitution
and associated regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Fed/State/Local Predatory Lending:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

i. The disclosure requirements and prohibitions of state, county and municipal laws and ordinances with respect
to "high-cost" mortgage loans, "covered" mortgage loans, "higher-priced" mortgage loans, "home" mortgage loans or any other similarly designated mortgage loan as defined under such authorities, or subject to
any other laws that were enacted to combat predatory lending, as may have been amended from time to time;

c. Prepay Penalties and Late Fees:

i. Federal and state specific late charge and prepayment penalty provisions. On loans listed as Consumer loans.
Check for all proper disclosures

4. <u>Exclusions</u>. Digital Risk will not test:

a. Loan types that are excluded from compliance with TRID:

b. Technical formatting of disclosures.

c. Other Post-consummation disclosures, including Escrow Closing Notice; and Mortgage servicing transfer and
partial payment notices.

d. For Loans made by an FDIC-supervised institution or servicer, extended or renewed on or after
January 1, 2016, whether prohibited fees were collected prior to the initial LE being issued

e. Whether any fee is a "bona fide" fee for third-party services

f. Whether the loans comply with all federal, state or local laws, constitutional provisions, regulations or
ordinances that are not expressly enumerated above.

------

**Summary of Results:** 

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; **Overall Loan Results:** | &nbsp;&nbsp;&nbsp; **Overall Loan Results:** | &nbsp;&nbsp;&nbsp; **Overall Loan Results:** | &nbsp;&nbsp;&nbsp; **Overall Loan Results:** |
| &nbsp;&nbsp;&nbsp; Event Grade<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan Count <br>| Original Principal Balance  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percent of <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sample  |
| &nbsp;&nbsp;&nbsp; Event Grade A | 883 | $59428625.10 | 82.45% |
| &nbsp;&nbsp;&nbsp; Event Grade B | 103 | $7376956.98 | 9.62% |
| &nbsp;&nbsp;&nbsp; Event Grade C | 85 | $7176554.49 | 7.94% |
| &nbsp;&nbsp;&nbsp; Event Grade D | 0 | $- | 0.00% |
| &nbsp;&nbsp;&nbsp; **Total Sample** | 1071 | $73982136.57 | 100.00% |
| &nbsp;&nbsp;&nbsp; **Credit Results:** | &nbsp;&nbsp;&nbsp; **Credit Results:** | &nbsp;&nbsp;&nbsp; **Credit Results:** | &nbsp;&nbsp;&nbsp; **Credit Results:** |
| &nbsp;&nbsp;&nbsp; Event Grade<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan Count <br>| Original Principal Balance  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percent of <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sample  |
| &nbsp;&nbsp;&nbsp; Event Grade A | 988 | $68266555.02 | 92.25% |
| &nbsp;&nbsp;&nbsp; Event Grade B | 73 | $5217423.55 | 6.82% |
| &nbsp;&nbsp;&nbsp; Event Grade C | 10 | $498158.00 | 0.93% |
| &nbsp;&nbsp;&nbsp; Event Grade D | 0 | $- | 0.00% |
| &nbsp;&nbsp;&nbsp; **Total Sample** | 1071 | $73982136.57 | 100.00% |
| &nbsp;&nbsp;&nbsp; **Compliance Results:** | &nbsp;&nbsp;&nbsp; **Compliance Results:** | &nbsp;&nbsp;&nbsp; **Compliance Results:** | &nbsp;&nbsp;&nbsp; **Compliance Results:** |
| &nbsp;&nbsp;&nbsp; Event Grade<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan Count <br>| Original Principal Balance  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percent of <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sample  |
| &nbsp;&nbsp;&nbsp; Event Grade A | 1044 | $71100760.85 | 97.48% |
| &nbsp;&nbsp;&nbsp; Event Grade B | 9 | $662857.00 | 0.84% |
| &nbsp;&nbsp;&nbsp; Event Grade C | 18 | $2218518.72 | 1.68% |
| &nbsp;&nbsp;&nbsp; Event Grade D | 0 | $- | 0.00% |
| &nbsp;&nbsp;&nbsp; **Total Sample** | 1071 | $73982136.57 | 100.00% |
| &nbsp;&nbsp;&nbsp; **Valuation Results:** | &nbsp;&nbsp;&nbsp; **Valuation Results:** | &nbsp;&nbsp;&nbsp; **Valuation Results:** | &nbsp;&nbsp;&nbsp; **Valuation Results:** |
| &nbsp;&nbsp;&nbsp; Event Grade<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan Count <br>| Original Principal Balance  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Percent of <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sample  |
| &nbsp;&nbsp;&nbsp; Event Grade A | 968 | $66351122.15 | 90.38% |
| &nbsp;&nbsp;&nbsp; Event Grade B | 42 | $2901838.77 | 3.92% |
| &nbsp;&nbsp;&nbsp; Event Grade C | 61 | $4729175.65 | 5.70% |
| &nbsp;&nbsp;&nbsp; Event Grade D | 0 | $- | 0.00% |
| &nbsp;&nbsp;&nbsp; **Total Sample** | 1071 | $73982136.57 | 100.00% |

---

------

**Event Grade Definitions** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; **Credit Event Grades** | &nbsp;&nbsp;&nbsp; **Credit Event Grades** |
| &nbsp;&nbsp;&nbsp; A | The loan meets the published guidelines without any exceptions. The client provided data for employment, income, assets and occupancy are supported and justifiable.<br>|
| &nbsp;&nbsp;&nbsp; B | The loan substantially meets the published guidelines but reasonable compensating factors were considered and documented for exceeding published guidelines. The client provided data for employment, income, assets and occupancy are supported and justifiable.<br>|
| &nbsp;&nbsp;&nbsp; C | The loan does not substantially meet the published guidelines. There are not sufficient compensating factors that justify exceeding the published guidelines. The employment, income, assets or occupancy are not supported and justifiable.<br>|
| &nbsp;&nbsp;&nbsp; D<br>| There was not sufficient documentation to perform a review or the credit file was not furnished.<br>|

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; **Compliance Event Grades** | &nbsp;&nbsp;&nbsp; **Compliance Event Grades** |
| &nbsp;&nbsp;&nbsp; A | The Loan is in compliance with all applicable laws and regulations. The legal documents accurately reflect the agreed upon Loan terms and are executed by all applicable parties.<br>|
| &nbsp;&nbsp;&nbsp; B | The Loan is in material compliance with all applicable laws and regulations. The legal documents accurately reflect the agreed upon Loan terms and are executed by all applicable parties. Client review required.<br>|
| &nbsp;&nbsp;&nbsp; C | The Loan violates one material law or regulation. The material disclosures are absent or the legal documents do not accurately reflect the agreed upon Loan terms or all required applicants did not execute the documents.<br>|
| &nbsp;&nbsp;&nbsp; D<br>| There was not sufficient documentation to perform a review or the required legal documents were not furnished.<br>|

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; **Valuation Event Grades** | &nbsp;&nbsp;&nbsp; **Valuation Event Grades** |
| &nbsp;&nbsp;&nbsp; A | The Secondary AVM value is supported within 10% of the original AVM provided at origination. The appraisal was performed on an "as-is" basis and the property is complete and habitable.<br>|
| &nbsp;&nbsp;&nbsp; B | The Secondary AVM value is supported within 10% of the original AVM provided at origination. The valuation methodology substantially meets the published guidelines but reasonable compensating factors were considered and documented for exceeding guidelines.<br>|
| &nbsp;&nbsp;&nbsp; C | The Secondary AVM value is not supported within 10% of the original AVM provided at origination. The valuation methodology did not meet the published guidelines and there were not sufficient compensating factors for exceeding published guidelines. The property is in below "average" condition or the property is not complete or requires significant repairs.<br>|
| &nbsp;&nbsp;&nbsp; D | The data provided was missing the AVM value or there was not sufficient data provided on the AVM to perform a review.<br>|

---

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; **Final Loan Grade** | &nbsp;&nbsp;&nbsp; **Final Loan Grade** |
| &nbsp;&nbsp;&nbsp; A | Loan meets Credit, Compliance, and Valuation Guidelines<br>|
| &nbsp;&nbsp;&nbsp; B | The Loan substantially meets published Client/Seller guidelines and/or eligibility in the validation of income, assets, or credit , is in material compliance with all applicable laws and regulations, and the value and valuation methodology is supported and substantially meets published guidelines.<br>|
| &nbsp;&nbsp;&nbsp; C | The Loan does not meet the published guidelines and/or violates one material law or regulation, and/or the value and valuation methodology is not supported or did not meet published guidelines.<br>|
| &nbsp;&nbsp;&nbsp; D | Loan is missing documentation to perform a sufficient review.<br>|

---