CRT-Eligible Profile Summary

Fannie Mae Flex Modification Payment Reduction Levers Modification Losses Modification Interest Rate Reduction Principal Forbearance Term Extension Principal Forgiveness* Borrower Impact Reduces monthly interest rate borrower pays on loan obligation Deferral of a portion of the unpaid principal balance as part of a loan modification (not as part of a Payment Deferral) until the loan's maturity date or early payoff of the mortgage loan Loan term is extended to reduce borrower monthly payments Outstanding principal loan balance is subject to a one-time principal reduction based on established eligibility criteria Loss to Investor Losses passed through based on the difference between the modified and original note rate paid on the outstanding loan balance Loss reflects foregone interest on non-interest bearing portion of UPB. Recognized in Non-interest Bearing UPB field in monthly reporting.^ No loss to investor ■ At time of principal forgiveness, no modification losses will be passed through to noteholders ■ The forgiven UPB amount will be treated as unscheduled principal at the time of the modification ▪ If the modified loan subsequently experiences a credit event, the amount of the principal forgiveness will be included in the credit event net loss (realized loss calculation) CAS: Modification losses are passed through to noteholders on a monthly basis once a permanent modification takes effect. CIRT: Modification losses flow through the CIRT structure on a monthly basis according to the Modification Loss structure outlined in the Insurance Policy. No losses are incurred during a modification trial period (typically 3 months). Starting with CIRT 2023-1, expenses associated with payment deferrals are a covered modification loss in the CIRT structure. ^Principal forborne as part of a Payment Deferral is recognized in Total Deferral Amount field in monthly reporting and does not constitute a modification loss. *Fannie Mae does not anticipate that any loans referenced in CAS deals will be eligible for Principal Forgiveness *Principal Forgiveness Eligibility Criteria: 59 © 2024 Fannie Mae http://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-PRM-Program-and-Further-Enhancements-to-NPL-Sales-Reqts.aspx

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