SONYMA Conventional Plus Correspondent Program Introduction October 25, 2012

1. SONYMA Conventional PlusCorrespondent Program IntroductionOctober 25, 2012

3. With this product, we are selling payment, not rate Sales Focus • Conventional Plus is a 30 year fixed rate mortgage • Originated and funded by an approved correspondent • Underwritten to FNMA’s MyCommunity Mortgage guidelines • Purchased by M&T Bank and sold to Fannie Mae • M&T sets daily loan pricing • Serviced by M&T • As a result of SONYMA’s housing finance agency status, the following borrower benefits include: • No loan level price adjustments • Lower mortgage insurance coverage requirements • Ability to finance closing costs, prepaids and mortgage insurance for both Purchases and Refinances • Mortgage credit certificate availability for certain borrowers

4. Conventional Plus • 1-4 family primary including co-ops are eligible • Standard GSE loan limits • All loans must be underwritten through DU – PIW’s are not eligible • Non-traditional credit is NOT permitted • No other properties may be owned simultaneously • At least one borrower must complete pre-purchase counseling • For 1 unit, maximum 97% LTV, 105% CLTV, 620 score • For 2-4 unit, maximum 95% LTV, 105% CLTV, 680 score

5. Conventional Plus - Underwriting • 1 unit DP – no minimum borrower’s own funds • Remainder may be funded by DPAL, soft second, unsecured loan from an approved source, or gift from family member • 2-4 unit DP – 3% own funds required • Cash-on-hand eligible except for reserves • Reserves per DU • Maximum 40 / 45% ratios no matter DU response • Vacancy factors of 75% (2 unit) and 65% (3-4 unit) for rental income • Boarder income is allowed • MCC tax credit is NOT factored into income • Standard 3% and 6% guidelines for concessions Per FNMA guidelines

6. Conventional Plus – Mortgage Insurance • Lower coverage requirements apply: • The DPAL may be used to pay a one-time upfront mortgage insurance premium • Primary mortgage insurance is required from either Genworth or SONYMA’s Mortgage Insurance Fund (MIF) • Financed and monthly plans are eligible. The financed premium and adjusted LTV must not exceed the stated minimum for the program. [Payment factors for 720 FICO]

7. Conventional Plus – Project Reviews • All co-ops and condos must be reviewed by M&T’s project review team if a project is not on M&T’s approved lists • Co-ops must meet FNMA’s NYC Pilot guidelines • Questionnaires and project documents must be submitted to projectreview@mtb.com • A Correspondent’s co-op closing doc set must be approved by M&T

8. Conventional Plus – SONYMA ‘isms • Borrowers are NOT required to be first-time homebuyers • Restrictions do apply to MCC loans • Income Limits apply (see SONYMA Website) • Separate limits apply for loans with MCCs • Low Interest Rate Program Purchase Price Limits do NOT apply • Purchase price limits apply for loans with MCCs • Income utilized is based on qualifying income, NOT household income • SONYMA’s standard household income calculation applies for loans with MCCs • Pool insurance from MIF is NOT required

9. Conventional Plus – Other • Community Solutions Option • For teachers, law enforcement officers, firefighters and emergency response personnel • 1-2 unit properties • Reserves may be gifted (1 month for 1-unit, 2 months for 2-unit) • Part-time/OT income of less than 2 years permitted • Community HomeChoice • For handicapped borrowers • 1-2 unit properties • For 1-unit, no reserves required when DTIis less than or equal to 43% • Reserves may be gifted (1 month for 1-unit, 2 months for 2-unit) • Non-occupant co-borrowers allowed to maximum 33 / 38% ratios

10. Down Payment Assistance Loan (DPAL) • Second mortgage that can be used for down payment, closing costs, prepaids or to pay MI • Maximum assistance is three percent (3%) of the home purchase price (not the loan amount). • For refinances, the DPAL must not be greater than the amount of the MI premium and cannot exceed 3% of the lower of the UPB or the appraised value. • Both first and DPAL must be registered with M&T • One package is required for both first and DPAL • GFE is required (recording fee & mtg tax); a TIL is NOT required • Loans are NOT registered through Lender Online nor is SONYMA approval required • DPALs are serviced by M&T in SONYMA’s name

11. Mortgage Credit Certificates (MCC) • MCCs allow eligible buyers to convert 20% of their annual mortgage interest into a tax credit that can be deducted dollar for dollar from their Federal tax liability. • The remaining 80% of the interest continues to qualify as an itemized tax deduction for the life of the mortgage loan. • Eligibility: • First-time homebuyers with a household income of 80% of AMI or less; OR • US military veterans (including non FTHBs); OR • Active duty US military including National Guard and reservists (must be FTHB unless purchasing in a Target Area); OR • FTHBs purchasing a home in communities impacted by 2011’s severe flooding

12. MCCs - continued • The flood-impacted communities are: • Counties of Broome, Delaware, Greene, Schoharie, and Tioga; and • Cities of Port Jervis and Middletown and Village of Goshen (Orange County); and • Towns of Hurley, Olive, Shandaken, Shawangunk, Ulster and Wawarsing (Ulster County). • Income and Purchase Price Limits apply • The tax credit is not factored into the underwriting • Lenders submit all required documents and the required fee directly to SONYMA; SONYMA then issues the MCC directly to the homebuyer and Lender • Lenders must file Form 8329 with IRS annually.

13. Example Scenario - Purchase Notes: (1) Credit Scoreof 680-719. Higher credit scores have lower rates. (2) Rates as of 10/12/12. (3) For MCC loans, this figure represents 80% of the total mortgage interest. (4) Based on a household of 2 persons. (5) From Federal tax tables.

14. Example Scenario - Refinance Notes: (1) Credit Scoreof 680-719. Higher credit scores have lower rates. (2) Rates as of 10/12/12.

15. “HFA Preferred” must be selected in the Community Lending section of DU Process Map Lender registers Conventional Plus and DPAL loans with M&T in MEME Lender meets with borrower and takes application Eligible for MCC? Lender processes loan, submits to DU, and prepares the underwriting package NO YES Lender registers loan in SONYMA’s Lender Online Lender submits loan to Genworth Pre-closing underwriting review performed by M&T Comt Letter sent to Borrower by lender Approved? YES Approval certificate issued Conditions collected, loan scheduled and closed by lender MCC package sent to SONYMA by lender NO YES Approval published on Lender Online Genworth forwards to SONYMA’s Mortgage Insurance Fund Approved? Collateral package forwarded to M&T Post-closing pkg sent to SONYMA by lender MCC sent by SONYMA to lender and borrower Adverse Action Notice is issued by lender Loan purchased by M&T NO Loan serviced by M&T

16. Secondary Marketing • Rates to be posted daily to MEME at https://mortgageportal.mtb.com/ • CPlus loans with DPAL priced with rate premium of ~0.625% • Lender compensation: • Lender to earn 2 points • Additionally, lenders may charge up to $1,200 in ancillary fees • MCC Fee (payable to SONYMA): • Loans amounts of $100,000 or less - $250 • Loan amount greater than $100,000 - $500 • M&T Fees: • $350 Funding Fee, Flood Cert Fee of $8, Tax Service Fee of $75 • Document Review Fees for CEMAs or Co-ops may apply

17. Secondary Marketing - continued • 60-day and 90-day rate locks will be available • Loans may be registered and float • Loans to be delivered on Best Efforts basis • Extensions may be granted, but charges may apply depending on market conditions • Escrows required on all loans with LTVs in excess of 80% • Temporary buydowns are not permitted

18. Operational & Delivery Considerations • Lenders must be approved correspondents of M&T Bank • All lenders must sign a correspondent agreement with M&T • All lenders must also sign a tri-party agreement with M&T and SONYMA • All Conventional Plus and DPAL loans must be registered on M&T’s MEME website • All MCCs must be registered on Lender Online (LOL) • M&T has no involvement with this transaction • DPAL and Conv Plus loans are NOT registered on LOL • All term sheets (3), the Operational Instructions (3 sections) and any required forms and exhibits will be posted on MEME as well as SONYMA’s website

19. Operational & Delivery - continued • M&T performs a pre-closing underwriting review of the credit package for all loans • The closed loan file must be delivered by the lock expiration date; if not in fundable form a suspense notice will be issued • Deficiencies must be cured and the loan cleared for funding by the later of the 5th business day from receipt of the Suspense Notice or the lock expiration date. Loans delivered or cleared after are subject to re-pricing at worst pricing (original or current). • Non-collateral packages must be submitted via BlitzDocs at www.blitzdocs.net – first-time users must set up a password

20. Important Exhibits on MEME • Exhibit 02-454 Conventional Plus Loan Submission Checklist • Exhibit 03-016 Condominium Questionnaire • Exhibit 03-020 Co-operative Questionnaire • Exhibit 03-030 Visa Classifications • Exhibit 03-050 Approved Condominium List • Exhibit 03-051 Approved Co-operative List • Exhibit 02-204 FNMA MCM HomeChoice Worksheet • Exhibit 02-205 FNMA MCM HomeChoiceWorksheet Instructions

21. M&T Loan Program Codes • SONYMA Conventional Plus • 200 • SONYMA Conventional Plus w/DPAL • 201 • SONYMA Conventional Plus w/DPAL & MCC • 202 • SONYMA Conventional Plus w/MCC • 203 • SONYMA Second Mortgage DPAL • 878 • Unique product codes do not apply for Community Solutions or Community HomeChoice

22. Important Contacts • Program Administration • James Ahrens; jahrens@mtb.com • Sales Management • Jeff Mastro; jmastro@mtb.com • Operations Management • Esther Farron; efarron@mtb.com • Secondary Marketing (Daily Pricing & Extensions) • Mark Monile; mmonile@mtb.com • Seller Administration (Correspondent Approvals) • Doug Crow; dcrow@mtb.com • SONYMA • George Leocata; gleocata@nyshcr.org

23. QUESTIONS ?