HOMES 2023-NQM1 ABS-15G

EXHIBIT 99.16

 

Dummy ID Loan Number Seller Loan Number Borrower Name State QM/ATR Status Initial Overall Loan Grade Final Overall Grade Final Credit Grade Final Property Grade Final Compliance Grade Material (level 3) TRID exception? Material (level 3) Non-TRID exception? Active Material Exceptions Active Non Material Exceptions Satisfied Exceptions Waived Exceptions Compensating Factors Property Type Note Date LTV CLTV Occupancy Purpose Credit Score Brwr 1 Yrs in Property Brwr 1 Occupation Brwr 1 Yrs on Job Total Monthly Income Mortgage History Cash Out Amount DTI FTHB Flag Loan Doc Type Loan Status Review Date
5OZZSWY31VD xx   xx Arizona Non-QM/Compliant 3 2 2 1 1 No No     *** (CURED) Closing_Disclosure violations - EV R
COMMENT:   As per Final CD closing date is xx, disbursement date is xx and borrower signed on xx. Require PC CD with corrected disbursement date.

Received PC CD with corrected disbursement date.

*** (CURED) Higher-Priced Mortgage Loan test Fail - EV R
COMMENT:   This loan failed the higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met.

Higher-Priced Mortgage Loan Test FAIL : Charged 6.901%  Allowed 6.680%  Over by +0.221%

Resolved: HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

*** (CURED) Missing Initial Closing Disclosure - EV R
COMMENT:   Missing initial loan estimate. Require initial loan estimate.

Received initial LE dated 06/01/2022
*** (WAIVED) Loan does not conform to program guidelines - EV W
COMMENT:   As per given Non Qm Exception Form Exception Request: Exception to proceed with deed Restricted Property. The Deed restriction is due to an age Requirement of the Community.

Exception approval with compensating factor

Housing Expense - Housing Expense - 25%
Excellent Credit History - 0*30*24
Housing Expense - Housing Expense - 25%

Excellent Credit History - 0*30*24
PUD xx xx xx Primary Purchase 746   xx 27 $7,776.28 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:
Max Days Dlq Last 12 Mos:
Verification Type:Credit Report
  47.851% No Alternative QC Complete 12/07/2022
JH0Y4DCSYY2 xx   xx Florida Not Covered/Exempt 1 1 1 1 1 No No           High Rise Condo (>=9 Stories) xx xx xx Investor Purchase 742         Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
    No Alternative QC Complete 12/07/2022
J03FKQLX4UX xx   xx California Non-QM/Compliant 3 1 1 1 1 No No     *** (CURED) Higher-Priced Mortgage Loan test Fail - EV R
COMMENT:   This loan failed the higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met.

Higher-Priced Mortgage Loan Test: Charged 6.818%  Allowed 6.660%  Over by +0.158%

Resolved: HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

*** (CURED) Higher Price Mortgage Loan - EV R
COMMENT:   This loan failed the CA AB 260 higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in the California Financial Code. While the California Financial Code provisions specify that lenders may lawfully make this type of loan subject to certain disclosure requirements and additional limitations, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met.

CA AB 260 Higher-Priced Mortgage Loan Test: Charged 6.818%  Allowed 6.660%  Over by +0.158%

Resolved: HPML loans are allowed per originator’s guidelines. File was reviewed to ensure that it is compliant with regulation CA AB 260, California Financial Code Division 1.9 4995(a).

*** (CURED) Income documentation does not meet guidelines - EV R
COMMENT:   Original income calculation included bank statement from June 2021 till May 2022. Bank #xx statement for the month of May 2022 is missing in the loan file. Require bank #xx statement for the month of May 2022.

Received bank account #xx transaction history for the month of May 2022
    Single Family xx xx xx Primary Purchase 707   xx 2 $17,063.42 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
  7.983% Yes Alternative QC Complete 12/07/2022
BQBTL3NTTWW xx   xx Pennsylvania Not Covered/Exempt 2 2 2 1 1 No No       *** (WAIVED) Loan does not conform to program guidelines - EV W
COMMENT:   Loan file does not meet guide requirement. Guide requires that, borrower must own a primary residence and, at least one (1) trade line must be a primary residential mortgage reporting for a minimum of twelve (12) months.

Exception approval with compensating factor

High Credit Score - 746
High Asset Reserves - 38.36 months
High Credit Score - 746

High Asset Reserves - 38.36 months
Single Family xx xx xx Investor Purchase 746   xx     Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
    No Alternative QC Complete 12/07/2022
XSH5A5JKTEE xx   xx California Non-QM/Compliant 1 1 1 1 1 No No           Single Family xx xx xx Primary Cash Out 780 24 xx 24 $27,603.99 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
xx 41.135%   Alternative QC Complete 07/26/2022
R0FCOWDOMYF xx   xx New York Not Covered/Exempt 1 1 1 1 1 No No           Low Rise Condo  (1-4 Stories) xx xx xx Investor Purchase 808         Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
    No Alternative QC Complete 12/07/2022
WRAWOUJTAEU xx   xx California Non-QM/Compliant 3 1 1 1 1 No No     *** (CURED) Automated Appraisal Review Missing - EV R
COMMENT:   Loan amount id greater than $1.5 MM. Require 2nd full appraisal to support original stated value.

Received 2nd full appraisal with valuation of xx
    Single Family xx xx xx Primary Purchase 767   xx 13 $56,930.03 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
  36.099% No Alternative QC Complete 12/07/2022
FO3OXK1BR02 xx   xx Georgia Non-QM/Compliant 3 2 2 1 1 No No     *** (CURED) Higher-Priced Mortgage Loan test Fail - EV R
COMMENT:   This loan failed the higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met.

Higher-Priced Mortgage Loan Test Fail : Charged 7.373% Allowed 6.810% Over by +0.563%.

Resolved: HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).
*** (WAIVED) Required Documentation Missing or Incomplete  - EV W
COMMENT:   Loan file is missing residential pay history for the most recent 12 months. Require residential pay history for recent 12 months.

Exception approval with compensating factor

High Credit Score - 792
Low DTI Ratio - 1%
LTV% less than 70% - xx
High Residual Income - $400K/month
High Credit Score - 792

Low DTI Ratio - 1%

LTV% less than 70% - xx

High Residual Income - $400K/month
PUD xx xx xx Primary Cash Out 790 1.92 xx 10.16 $455,978.81 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
xx 1.685%   Alternative QC Complete 12/07/2022
13UTGSA1DU4 xx   xx California Non-QM/Compliant 1 1 1 1 1 No No           PUD xx xx xx Primary Purchase 800   xx 21 $68,198.01 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
  21.547% No Alternative QC Complete 07/11/2022
XFVJSYJC40G xx   xx California Non-QM/Compliant 2 1 1 1 1 No No     *** (CURED) Higher-Priced Mortgage Loan test Fail - EV R
COMMENT:   This loan failed the higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-price mortgage loans even if the additional conditions are met.

Higher-Priced Mortgage Loan Test Fail: Charged 7.461% Allowed 7.380%  Over by +0.081%

Resolved: HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).

*** (CURED) Higher Price Mortgage Loan - EV R
COMMENT:   This loan failed the CA AB 260 higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in the California Financial Code. While the California Financial Code provisions specify that lenders may lawfully make this type of loan subject to certain disclosure requirements and additional limitations, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met.

CA AB 260 Higher-Priced Mortgage Loan Test: Charged 7.461% Allowed 7.380% Over by +0.081%

Resolved: HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation CA AB 260, California Financial Code Division 1.9 4995(a).
    Single Family xx xx xx Primary Cash Out 701 1.5 xx 3 $6,800.34 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
xx 37.143%   Alternative QC Complete 12/07/2022
1FXMOYFR4WX xx   xx New York Non-QM/Compliant 1 1 1 1 1 No No           Mid Rise Condo  (5-8 Stories) xx xx xx Primary Cash Out 814 6 xx 20 $135,932.65 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
xx 4.785%   Alternative QC Complete 07/19/2022
TA2ZZLB5DWC xx   xx California Non-QM/Compliant 4 2 2 1 1 No No     *** (CURED) Automated Appraisal Review Missing - EV R
COMMENT:   Original loan amount is more than $1.5 MM. Loan file require a 2nd full appraisal to support the original stated value.

Received 2nd full appraisal
*** (WAIVED) DTI > 50% - EV W
COMMENT:   Loan file is submitted with DTI of more than 50%. Loan file is missing final settlement/HUD/closing statement for current primary residence located xx. The DTI exceeds maximum allowed per the lending guide. Require settlement/HUD/closing statement for property located at xx.

Exception approval with compensating factor

High Credit Score - 787
High Asset Reserves - 32.99 months
High Residual Income - $27,953.92
High Credit Score - 787

High Asset Reserves - 32.99 months

High Residual Income - $27,953.92
Single Family xx xx xx Primary Purchase 787   xx 10 $41,059.61 Mos Reviewed:24
Times 1X30:20
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
  56.438% No Full Documentation QC Complete 07/27/2022
K2KCYRTUKPB xx   xx Florida Not Covered/Exempt 1 1 1 1 1 No No           High Rise Condo (>=9 Stories) xx xx xx Investor Purchase 761         Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
    No Alternative QC Complete 07/26/2022
W30QZDEEA15 xx   xx Georgia Non-QM/Compliant 2 2 2 1 1 No No     *** (CURED) Higher-Priced Mortgage Loan test Fail - EV R
COMMENT:   This loan failed the higher-priced mortgage loan test. Using the greater of the disclosed APR and the calculated APR, the loan is a higher-priced mortgage loan, as defined in Regulation Z. While the higher-priced mortgage loan provisions specify that lenders can legally make this type of loan subject to additional requirements in 12 CFR §1026.35, some lenders and secondary market investors may prefer not to fund or buy higher-priced mortgage loans even if the additional conditions are met.

Higher-Priced Mortgage Loan Test Fail: Charged 8.903% Allowed 6.680% Over by +2.223%.

Resolved: HPML loans are allowed per originator’s guidelines.  File was reviewed to ensure that it is compliant with regulation 1026.35(b), (c) and (d).
*** (WAIVED) Loan does not conform to program guidelines - EV W
COMMENT:   As per lending guide "xx" is needed when borrower lives on rent however in the loan file we have received VOR from private individual along with receipts as borrower is making payment in cash, for the same we have received exception approval form.

Exception approval with compensating factor

Low DTI Ratio - 32.54%
Residual Income - Residual Income - 400% more than guide requirement
Excellent Credit History - 0*30*24
Low DTI Ratio - 32.54%

Residual Income - Residual Income - 400% more than guide requirement

Excellent Credit History - 0*30*24
PUD xx xx xx Primary Purchase 692   xx 4 $18,262.47 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
  31.041% Yes Alternative QC Complete 12/07/2022
2RI4ASD2UIU xx   xx Florida Not Covered/Exempt 2 2 2 1 1 No No       *** (WAIVED) Loan does not conform to program guidelines - EV W
COMMENT:   Loan file does not meet guide requirement. Guide restricts business ownership at 100% for using business assets. Borrower ownership is at 50%.

Exception approval with compensating factor

High Credit Score - 754
High Residual Income - $24,064.00
Length of Time at Employment - Self employed since 2008
High Credit Score - 754

High Residual Income - $24,064.00

Length of Time at Employment - Self employed since 2008
High Rise Condo (>=9 Stories) xx xx xx Investor Purchase 754   xx 14 $34,031.32 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
  29.130% No Alternative QC Complete 08/04/2022
ZZN3SQVPFAY xx   xx Arizona Not Covered/Exempt 1 1 1 1 1 No No           PUD xx xx xx Investor Cash Out 758         Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
xx     Alternative QC Complete 07/11/2022
ZEONKK0GM2M xx   xx New York Not Covered/Exempt 2 2 2 1 1 No No       *** (WAIVED) Loan does not conform to program guidelines - EV W
COMMENT:   Loan file does not meet guide requirement. Guide requires at least one (1) trade line must be a primary residential mortgage reporting for a minimum of twelve (12) months. Loan file reflects borrower is a tenant for his/her primary residence.

Exception approval with compensating factor

Excellent Credit History - 0*30*24
High Asset Reserves - 12 months
Excellent Credit History - 0*30*24

High Asset Reserves - 12 months
Single Family xx xx xx Investor Purchase 749         Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
    No Alternative QC Complete 07/29/2022
GLWQJ0NJ0TI xx   xx California Not Covered/Exempt 4 2 2 1 1 No No       *** (WAIVED) Loan does not conform to program guidelines - EV W
COMMENT:   Loan file does not meet the guide requirement. Guide restricts a minimum loan amount of $150,000 and housing history to reflect for at least 12 months.

Exception approval with compensating factor

Excellent Credit History - 0*30*24
High Asset Reserves - 9 months of PITIA
Excellent Credit History - 0*30*24

High Asset Reserves - 9 months of PITIA
Single Family xx xx xx Investor Purchase 742   xx 10 $113,953.97 Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
  2.829% No Alternative QC Complete 12/07/2022
4I5VT4BT2KW xx   xx Michigan Not Covered/Exempt 1 1 1 1 1 No No           Single Family xx xx xx Investor Cash Out 777         Mos Reviewed:24
Times 1X30:0
Times 1X60:0
Times 1X90:0
Currently Delinquent? :No
Total Delinquent:
Mortgage/Rent Dlq Last 12 Mos:0
Max Days Dlq Last 12 Mos:0
Verification Type:Credit Report
xx     Alternative QC Complete 08/09/2022