1) AVAILABLE PROGRAMS

A. STANDARD CAPPED RATE PROGRAM
The Standard Capped Rate Program is available to all National City approved Correspondents. This program may be used to ensure a guaranteed interest rate in the event that interest rates rise. The borrower's interest rate is protected regardless of market movement, provided the loan is "hard" locked within 30 days of the closing/modification or Capped Expiration Date, whichever comes first. If the market improves, a one-time float down option is allowed. If the market remains the same or gets worse, the loan may close at the capped rate and price. This program may only be used for end loan financing at this time.

The new Standard Capped Rate Program will require a 1.000% upfront fee and will feature a rate addon for the interest rate cap. A portion of the upfront fee will be refunded at purchase, based on the table below. The values in this table, (effective with new soft locks as of 5/16/2007), along with available products, will be posted on the daily rate sheet and may change at any time.

**1.000% upfront fee required and the refundable portion will be credited at purchase.

B. SELECT CAPPED RATE PROGRAM (formerly Extended Capped Rate Program)
The Select Capped Rate Program is only available to Correspondents who were specifically approved for this program prior to October 2, 2006 and have a signed agreement on file. This program differs only in that no upfront fee is required. A minimum pull through of 65% is required and is reviewed quarterly (see Section 3). Please refer to the Correspondent Lending Rate Sheet for the most current available programs and rate adjustments, which are subject to change at any time.

NOTE: Even though there is no upfront fee charged on the Select Program, a 1.000% upfront fee may be required when a hard lock is requested for more than 30 days, or if a hard lock is extended more than 30 days.

C. EXTENDED LOCK
An extended lock option is also available for up to 270 days for certain loan programs. A 1.000% upfront fee is required and will be refunded at time of purchase. A price adjustment is also charged based on the lock term requested. Pricing details for the extended lock option may be found on the daily rate sheet and is subject to change at any time.

2) PROCEDURE (applies to both Select and Standard Capped Rate Programs)

STEP ONE - "SOFT" LOCK:
To register and "soft" lock a loan, please circle "Capped Soft Lock" on the Correspondent Lending Registration Worksheet. Fill out the rest of the form and circle the appropriate number of lock days under "Capped Lock Period". Select a base rate from the rate sheet and apply the rate cap adjustment as stated on the Correspondent Lending Rate Sheet according to the lock period. The price will be calculated using the 45-day price for the appropriate base rate. All price adjustments on the Correspondent Rate Sheet apply according to the appropriate loan program. If changes need to be made to the original lock, please contact the Commitment Desk with 24 hours of "soft" lock to avoid any penalties.

If using the Standard Capped Rate Program, the Correspondent must submit the upfront fee within 72 hours of the soft lock. If the fee is not received within this timeframe, the lock will be cancelled. Please remit checks to:

National City Mortgage
Correspondent Lending
117 Allegheny Center Mall
Locator #06-671, Attn: Accounting
Pittsburgh, PA 15212

Upfront fees will be refunded per the table above at time of purchase. If the loan is cancelled for any reason, the upfront fee will be forfeited. If a loan is denied, the upfront fee will be refunded.

STEP TWO - "HARD" LOCK:
To deliver a loan to National City Mortgage under this program, a "hard" lock must occur within 30 days of the closing or Capped Expiration Date, whichever comes first. The new Expiration will be a full 30 days from Hard Lock, regardless of how many days are left in the Cap Period. The loan must be hard locked whether the current market is better or worse. To "hard" lock a loan, please circle "Capped Hard Lock" on the Correspondent Lending Registration Worksheet.

If the current market is worse, the loan will keep the original capped interest rate and price, when the loan is "hard" locked. If the current market is better, the interest rate may float down as desired at the time of "hard" lock. The 45-day price for the interest rate selected should be used to obtain pricing for the 30 day hard lock.

3) REQUIRED PULL THROUGH / FEES
The required purchase pull through for the Select Capped Rate Program (formerly Extended Capped Rate Program) is 65% of all soft locks and will be reviewed quarterly. The quarterly pull through percentage is based on the expiration dates of loans in the pipeline locked under this program. A required one point (1%) fee on the amount short of 65% pull through will be assessed. National City also reserves the right to terminate this program if the required pull through is not met on a consistent basis.

NOTE: There is no pull through requirement for the Standard Capped Rate Program.