Common use of Transaction Sublimits Clause in Contracts

Transaction Sublimits. The following sublimits shall be applicable to the Transactions hereunder such that after giving effect to any proposed Transaction and after MASTER REPURCHASE AGREEMENT – Page 42 13312-786/M/I Financial Warehouse Facility giving effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following shall be true: (a) The Aggregate Outstanding Purchase Price of Agency Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Agency Loan Sublimit”). (b) The Aggregate Outstanding Purchase Price of Government Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Government Loan Sublimit”). (c) The Aggregate Outstanding Purchase Price of all Purchased Loans that are Wet Loans shall not exceed (x) seventy-five percent (75%) of the Maximum Aggregate Commitment on any of the first five (5) and last five (5) Business Days of any month, or (y) forty percent (40%) of the Maximum Aggregate Commitment on any other day (the “Wet Loans Sublimit”). (d) The Aggregate Outstanding Purchase Price of all Purchased Loans that are of the type listed in the first column of the following table shall not exceed the percentage of the Maximum Aggregate Commitment or amount listed in the second column of the table (the name of that Sublimit is set forth in the third column of the table). Jumbo Mortgage Loans $25,000,000 “Jumbo Loan Sublimit” State Bond Mortgage Loans 30% “State Bond Loan Sublimit” RHS Mortgage Loans 20% “RHS Loan Sublimit” Investment Property Mortgage Loans 10% “Investment Property Loan Sublimit” Aged Mortgage Loans 5% “Aged Mortgage Loan Sublimit” Low FICO Mortgage Loans 5% “Low FICO Loan Sublimit”

Transaction Sublimits. The following sublimits shall also be applicable to the Transactions hereunder such that after giving effect to any proposed Transaction and after MASTER REPURCHASE AGREEMENT – Page 42 13312-786/M/I Financial Warehouse Facility giving effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following shall be true: (a) The Aggregate Outstanding Purchase Price of Agency Conforming Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Agency Loan Sublimit”)Commitment. (b) The Aggregate Outstanding Purchase Price of Government Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Government Loan Sublimit”). (c) The Aggregate Outstanding Purchase Price of all Purchased Loans that are Wet Loans shall not exceed (x) seventyfifty-five percent (7555%) of the Maximum Aggregate Commitment on any of the first five (5) four and last five (5) four Business Days of any month, month or (y) forty thirty percent (4030%) of the Maximum Aggregate Commitment on any other day (the “Wet Loans Sublimit”). (dc) The Aggregate Outstanding Purchase Price of all Purchased Loans that are of the type listed in the first column of the following table shall not exceed the percentage of the Maximum Aggregate Commitment or amount listed in the second column of the table (the name of that Sublimit is set forth in the third column of the table). column): Jumbo Mortgage Loans $25,000,000 10%* “Jumbo Loan Mortgage Loans Sublimit” State Bond Super Jumbo Mortgage Loans 305%* “Super Jumbo Mortgage Loans Sublimit” Second Lien Loans/HELOCs (collectively) 5%* “Second Lien Loan/HELOC Sublimit” Alt-A Agency Loans 15% “State Bond Loan Alt-A Agency Loans Sublimit” RHS Mortgage Alt-A Non-Agency Loans 20% 5%* (provided that Alt-A Agency Loans and Alt-A Non-Agency Loans collectivley shall not exceed 15%) “RHS Loan Alt-A Non-Agency Loans Sublimit” Investment Property Mortgage Loans 10% “Investment Property Loan Sublimit” Aged Mortgage Agency Eligible Non-owner Occupied Loans 5% “Aged Mortgage Loan Agency-eligible Non-owner Occupied Loans Sublimit” Low FICO Mortgage Agency-eligible Forty Year Loans 5% “Low FICO Loan Agency-eligible Forty Year Loans Sublimit”” * Notwithstanding the Sublimits set forth in the table above in the column “Maximum Aggregate Commitment” the Aggregate Outstanding Purchase Price outstanding for all Jumbo, Super Jumbo Mortgage Loans, Alt-A Non-Agency Loans, Second Lien Loans and HELOCS shall not at any time exceed ten (10) percent of the Maximum Aggregate Commitment.

Transaction Sublimits. The following sublimits shall also be applicable to the Transactions hereunder such that after giving effect to any proposed Transaction and after MASTER REPURCHASE AGREEMENT – Page 42 13312-786/M/I Financial Warehouse Facility giving effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following shall be true: (ai) The Aggregate Outstanding Purchase Price of Agency Purchased Loans that are Conforming Mortgage Loans may be as much as shall not exceed one hundred percent (100%) of the Maximum Aggregate Commitment (the “Agency Loan Conforming Mortgage Loans Sublimit”). (b) The Aggregate Outstanding Purchase Price of Government Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Government Loan Sublimit”). (cii) The Aggregate Outstanding Purchase Price of all Purchased Loans that are Wet Mortgage Loans shall not exceed (x) seventythe lesser of: (1) $8,750,000 or (2) thirty-five percent (7535%) of the Maximum Aggregate Commitment on any of the first five (5) and last five (5) Business Banking Days of any month, month or (y) forty the lesser of: (1) $6,250,000 or (2) twenty-five percent (4025%) of the Maximum Aggregate Commitment on any other day (the “Wet Mortgage Loans Sublimit”). (diii) The Aggregate Outstanding Purchase Price of all Purchased Loans that are of the type Type listed in the first column of the following table shall not exceed the percentage lesser of the Maximum Aggregate Commitment or amount listed in the second column of the table below or the percentage of the Commitment listed in the third column of the table (the name of that Sublimit is set forth in the third column fourth column): Non-Conforming Mortgage Loans $ 2,500,000 10 % “Non-Conforming Mortgage Loans Sublimit” Reacquired Mortgage Loans and Rejected Mortgage Loans $ 2,500,000 10 % “Reacquired/Rejected Mortgage Loans Sublimit” PSTP Mortgage Loans $ 5,000,000 N/A “PSTP Mortgage Loans Sublimit” If as of any Determination Date any of such Sublimits shall be exceeded, by notice to the Seller the Buyer may demand that the Seller repurchase from the Buyer so many Purchased Loans of the table)relevant Type as shall be required to reduce the Aggregate Outstanding Purchase Price of Purchased Loans of that Type to a level that does not exceed the relevant Sublimit, and the Seller shall pay to the Buyer the Repurchase Price for each such Purchased Loan within one (1) Banking Day after such demand. Jumbo Mortgage If no Event of Default has occurred and is then continuing, upon the Buyer’s receipt of such Repurchase Prices, the Buyer shall reconvey to the Seller the Purchased Loans $25,000,000 “Jumbo Loan Sublimit” State Bond Mortgage for which the Buyer has been paid such Repurchase Prices, but only to the extent that the conveyance from the Buyer to the Seller of such Purchased Loans 30% “State Bond Loan Sublimit” RHS Mortgage Loans 20% “RHS Loan Sublimit” Investment Property Mortgage Loans 10% “Investment Property Loan Sublimit” Aged Mortgage Loans 5% “Aged Mortgage Loan Sublimit” Low FICO Mortgage Loans 5% “Low FICO Loan Sublimit”pursuant to this Section 5 does not cause or result in a Margin Deficit pursuant to Section 7.1.

Transaction Sublimits. The following sublimits shall also be applicable to the Transactions hereunder such that after giving effect to any proposed Transaction and after MASTER REPURCHASE AGREEMENT – Page 42 13312-786/M/I Financial Warehouse Facility giving effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following shall be true:true (subject, in each case, to the Agent’s discretionary authority under Section 22.5): (a) The Aggregate Outstanding Purchase Price of Agency Conforming Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Agency Loan Sublimit”)Commitment. (b) The Aggregate Outstanding Purchase Price of Government Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Government Loan Sublimit”). (c) The Aggregate Outstanding Purchase Price of all Purchased Loans that are Wet Loans shall not exceed (x) seventy-five percent (75%) of the Maximum Aggregate Commitment on any of the first five (5) and last five (5) Business Days of any month, month or (y) forty percent (40%) of the Maximum Aggregate Commitment on any other day (the “Wet Loans Sublimit”). (dc) The Aggregate Outstanding Purchase Price of all Purchased Loans that are of the type listed in the first column of the following table shall not exceed the percentage of the Maximum Aggregate Commitment or amount listed in the second column of the table (the name of that Sublimit is set forth in the third column of the table). column): Jumbo Mortgage Loans $25,000,000 25% “Jumbo Loan Mortgage Loans Sublimit” State Bond Mortgage Loans 30% “State Bond Loan Sublimit” RHS Mortgage Loans 20% “RHS Loan Sublimit” Investment Property Mortgage Agency-eligible Forty Year Loans 10% “Investment Property Loan Sublimit” Aged Mortgage Agency-eligible Forty Year Loans 5% “Aged Mortgage Loan Sublimit” Low FICO Mortgage Loans 5% “Low FICO Loan Sublimit”

Transaction Sublimits. The following sublimits shall also be applicable to the Transactions hereunder such that after giving effect to any proposed Transaction and after MASTER REPURCHASE AGREEMENT – Page 42 13312-786/M/I Financial Warehouse Facility giving effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following shall be true: (a) The Aggregate Outstanding Purchase Price of Agency Conforming Mortgage Loans may be as much as one hundred percent (100%) % of the Maximum Aggregate Commitment (the “Agency Loan Sublimit”)Commitment. (b) The Aggregate Outstanding Purchase Price of Government Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Government Loan Sublimit”). (c) The Aggregate Outstanding Purchase Price of all Purchased Loans that are Wet Loans shall not exceed (x) seventy-five percent (75%) 55% of the Maximum Aggregate Commitment on any of the first five (5) and last five (5) Business Days of any month, month or (y) forty percent (40%) 35% of the Maximum Aggregate Commitment on any other day (the “Wet Loans Sublimit”). (dc) The Aggregate Outstanding Purchase Price of all Purchased Loans that are of the type listed in the first column of the following table shall not exceed the percentage of the Maximum Aggregate Commitment or amount listed in the second column of the table (the name of that Sublimit is set forth in the third column of the table). : Jumbo Mortgage Loans $25,000,000 “and Super Jumbo Loan Sublimit” State Bond Mortgage Loans 30% “State Bond Loan Sublimit” RHS (including any Redwood Trust Jumbo Mortgage Loans and Redwood Trust Super Jumbo Mortgage Loans), taken in the aggregate 20% “RHS Loan Sublimit” Investment Property Super Jumbo Mortgage Loans (including any Redwood Trust Super Jumbo Mortgage Loans) 10% “Investment Property Loan Sublimit” Aged Mortgage Streamline Refinance Loans 5% “Aged Mortgage Loan Sublimit” Low FICO Redwood Trust Jumbo Mortgage Loans 5% “Low FICO and Redwood Trust Super Jumbo Mortgage Loans, taken in aggregate 10% (d) The Purchase Value for any Purchased Loan Sublimit”hereunder shall not be more than One Million Five Hundred Dollars ($1,500,000).

Transaction Sublimits. The following sublimits shall be applicable to the Transactions hereunder such that after giving effect to any proposed Transaction and after MASTER REPURCHASE AGREEMENT – Page 42 13312-786/M/I Financial Warehouse Facility giving effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following shall be true: (a) The Aggregate Outstanding Purchase Price of Agency Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Agency Loan Sublimit”). (b) The Aggregate Outstanding Purchase Price of Government Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Government Loan Sublimit”). (c) The Aggregate Outstanding Purchase Price of all Purchased Loans that are Wet Loans shall not exceed (x) seventy-five percent (75%) of the Maximum Aggregate Commitment on any of the first five (5) and last five (5) Business Days of any month, or (y) forty percent (40%) of the Maximum Aggregate Commitment on any other day (the “Wet Loans Sublimit”). (d) The Aggregate Outstanding Purchase Price of all Purchased Loans that are of the type listed in the first column of the following table shall not exceed the percentage of the Maximum Aggregate Commitment or amount listed in the second column of the table (the name of that Sublimit is set forth in the third column of the table). MASTER REPURCHASE AGREEMENT – Page 43 13312-786/M/I Financial Warehouse Facility Jumbo Mortgage Loans $25,000,000 “Jumbo Loan Sublimit” State Bond Mortgage Loans 30% “State Bond Loan Sublimit” RHS Mortgage Loans 20% “RHS Loan Sublimit” Investment Property Mortgage Loans 10% “Investment Property Loan Sublimit” Aged Mortgage Loans 5% “Aged Mortgage Loan Sublimit” Low FICO Mortgage Loans 5% “Low FICO Loan Sublimit”

Transaction Sublimits. The following sublimits shall also be applicable to the Transactions hereunder such that after giving effect to any proposed Transaction and after MASTER REPURCHASE AGREEMENT – Page 42 13312-786/M/I Financial Warehouse Facility giving effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following shall be true:true (subject, in each case, to the Agent’s discretionary authority under Section 22.5): (a) The Aggregate Outstanding outstanding Purchase Price Prices of Agency Conforming Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Agency Loan Sublimit”)Commitment. (b) The Aggregate Outstanding outstanding Purchase Price of Government Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Government Loan Sublimit”). (c) The Aggregate Outstanding Purchase Price Prices of all Purchased Loans that are Wet Loans shall not exceed (x) seventy-five percent (75%) of the Maximum Aggregate Commitment on any of the first five (5) and last five (5) Business Days of any month, month or (y) forty percent (40%) of the Maximum Aggregate Commitment on any other day (the “Wet Loans Sublimit”). (dc) The Aggregate Outstanding outstanding Purchase Price Prices of all Purchased Loans that are of the type listed in the first column of the following table shall not exceed the percentage of the Maximum Aggregate Commitment or amount listed in the second column of the table (the name of that the Sublimit is set forth in the third column of the tablecolumn). Jumbo ; provided, that such sublimits shall not apply to any Mortgage Loan (USBHM): High LTV Mortgage Loans $25,000,000 15% “Jumbo Loan High LTV Mortgage Loans Sublimit” State Bond Mortgage Loans 30% “State Bond Loan Sublimit” RHS Mortgage Loans 20% “RHS Loan Sublimit” Investment Property Super Jumbo Mortgage Loans 10% “Investment Property Loan Super Jumbo Mortgage Loans Sublimit” Aged Jumbo Mortgage Loans 5and Super Jumbo Mortgage Loans, collectively 25% “Aged Jumbo Mortgage Loans Sublimit” Rural Development Guaranteed Housing Loans 50% “Rural Development Guaranteed Housing Loans Sublimit” State Housing Bond Mortgage Loan 25% “State Housing Bond Mortgage Loan Sublimit” Low FICO Mortgage Loans 5% “Low FICO Loan Sublimit”

Transaction Sublimits. The following sublimits shall also be applicable to the Transactions hereunder such that after giving effect to any proposed Transaction and after MASTER REPURCHASE AGREEMENT – Page 42 13312-786/M/I Financial Warehouse Facility giving effect to any repurchase, addition or substitution of any Mortgage Loan hereunder, the following shall be true:true (subject, in each case, to the Agent’s discretionary authority under Section 22.5): (a) The Aggregate Outstanding Purchase Price of Agency Conforming Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Agency Loan Sublimit”)Commitment. (b) The Aggregate Outstanding Purchase Price of Government Mortgage Loans may be as much as one hundred percent (100%) of the Maximum Aggregate Commitment (the “Government Loan Sublimit”). (c) The Aggregate Outstanding Purchase Price of all Purchased Loans that are Wet Loans shall not exceed (x) seventy-five percent (75%) of the Maximum Aggregate Commitment on any of the first five (5) and last five (5) Business Days of any month, month or (y) forty percent (40%) of the Maximum Aggregate Commitment on any other day (the “Wet Loans Sublimit”). (dc) The Aggregate Outstanding Purchase Price of all Purchased Loans that are of the type listed in the first column of the following table shall not exceed the percentage of the Maximum Aggregate Commitment or amount listed in the second column of the table (the name of that the Sublimit is set forth in the third column of the tablecolumn). Jumbo ; provided, that such sublimits shall not apply to any Mortgage Loan (USBHM): High LTV Mortgage Loans $25,000,000 15% “Jumbo Loan High LTV Mortgage Loans Sublimit” State Bond Mortgage Loans 30% “State Bond Loan Sublimit” RHS Mortgage Loans 20% “RHS Loan Sublimit” Investment Property Super Jumbo Mortgage Loans 10% “Investment Property Loan Super Jumbo Mortgage Loans Sublimit” Aged Jumbo Mortgage Loans 5and Super Jumbo Mortgage Loans, collectively 25% “Aged Jumbo Mortgage Loans Sublimit” Rural Development Guaranteed Housing Loans 50% “Rural Development Guaranteed Housing Loans Sublimit” State Housing Bond Mortgage Loan 25% “State Housing Bond Mortgage Loan Sublimit” Low FICO Mortgage Loans 5% “Low FICO Loan Sublimit” (d) [Intentionally Omitted.].