1. Offered through Affinity Lending Group

7. *Note: The above numbers include only Active & Inactive Members. The figures do not include Retired Members. *County Members % of Total Alameda 42,393 4.18% Los Angeles 182,136 17.96% Orange 50,794 5.01% Riverside 50,941 5.02% Sacramento 171,210 16.88% San Bernardino 42,745 4.21% San Diego 54,442 5.37% San Francisco 24,384 2.40% Santa Clara 53,641 5.29% Yolo 22,117 2.18% CalPERS Member Statistics (As of June 30, 2007) County Members Active & Inactive Members 1,086,900 Retirees 455,208 Total Members 1,532,108 State Employees 30% School Employees 38% Public Service Employees 32%

8. *County # of Units Purchased Property Loan Amount % of Total Loan Amount Fresno 539 $78,261,928 2.52% Los Angeles 1,272 $257,200,351 8.29% Orange 574 $127,491,011 4.11% Placer 555 $117,407,232 3.78% Riverside 1,228 $219,422,622 7.07% Sacramento 3,465 $628,385,653 20.25% San Bernardino 1,175 $192,857,213 6.22% San Diego 885 $182,486,160 5.88% San Luis Obisbo 737 $153,753,009 4.96% Solano 567 $115,836,075 3.73% Total (*Includes Originations outside of CA) 16,957 $3,102,951,484 CalPERS Home Loan Program Loans made since inception 130,385 $$ Loans made since inception $21.2 Billion Loans made since 7/1/07 (Fiscal Year) 1,676 for $409,377,054 Loans made outside of CA 1,320

16. Topic Description Loan Term 10 – 30 Years Purpose Purchase, Rate & Term, Cash Out Interest Only Yes – 30 Year Term only with 10 Yr IO Period Income Limits None UW Method DU acceptable EA-I & II eligible for Purchase 1-2 Units Minimum Fico DU on fully amortized loans 640 Minimum on Interest Only Loans Qualifying Ratios Per DU or Fannie Mae Guidelines Eligible Properties 1-4 Units, Condos, PUDS, Manufactured Homes (must meet Fannie guides) Other Properties Borrower can own other properties Mortgage Insurance See Guidelines CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421

18. Topic Description Loan Term 10 – 30 Years Purpose Purchase, Rate & Term, Cash Out Interest Only Not Available Income Limits None UW Method DU acceptable with Approve/Ineligible due to loan size only Minimum Fico 640 Minimum on Purchase & Rate and Term 680 Minimum on Cash Out Qualifying Ratios Per DU with Approved Ineligible due to loan size only; otherwise it’s a max 40% DTI Eligible Properties 1-2 Units, Condos, PUDS (Manufactured Homes NOT Allowed) Other Properties Borrower can own other properties Mortgage Insurance See Guidelines Subordinate Financing Allowed. Community 2nds are allowed. NO CalPERS Personal Loans

20. Topic Description Income limit May not exceed 100% AMI (140% in CA) except when in Fannie Neighbors area Loan Term 10 – 30 Years Interest Only Not Available Income Limits Income may not exceed 100% of HUD AMI except when property is in a Fannie Neighbors area; in which case, there are no income limits Purpose Purchase, Rate & Term UW Method DU acceptable with Approve/Eligible (EA-1 Eligible for purchase) Enter Non Occupant Co-Borrowers as HomeChoice (Ineligible just for that OK) Minimum Fico As determined by DU Qualifying Ratios As determined by DU Eligible Properties 1-2 Units, Condos, PUDS (Manufactured Homes NOT Allowed) Other Properties Borrower may not own any other properties Mortgage Insurance See Guidelines Subordinate Financing Allowed per Fannie Guidelines CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421

22. Topic Description Loan Term 10 – 30 Years Interest Only Not Available Income Limits None Purpose Purchase, Rate & Term UW Method DU acceptable with Approve EA Levels I & II Eligible for purchase (EA II with subordinate financing not allowed) Minimum Fico As determined by DU Qualifying Ratios As determined by DU Eligible Properties 1 Unit, Condos, PUDS (Manufactured Homes NOT Allowed) Other Properties Borrower can own other properties Mortgage Insurance See Guidelines MI cannot be financed on Flex Mortgage. Subordinate Financing Must be closed end; NO Helocs. Must be institutional 2 nd up to 100% CLTV or Community 2nds up to 105% CLTV. CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421

24. Topic Description Loan Term 30 Years – 3/1, 5/1, 7/1, 10/1 LIBOR ARM Purpose Purchase, Rate & Term, Cash Out Refinances Interest Only Available on the 7/1 and 10/1 LIBOR ARM Only. Not available for Manufactured Homes or Temporary Buy-downs UW Method DU acceptable with Approve EA Level Approvals allowed on 7/1 & 10/ ONLY (Not allowed on 7/1 & 10/1) Minimum Fico As determined by DU Qualifying Ratios As determined by DU Eligible Properties 1-4 Units, Condos, PUDS (Manufactured Homes on 7/1 & 10/1 ONLY) Mortgage Insurance See Guidelines Reduced or Lower Cost MI not available for ARM loans. Subordinate Financing Allowed per Fannie Guidelines CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421

26. Topic Description Loan Term 30 Years Purpose Purchase, Rate & Term, Cash Out Refinances, Streamline Refinances UW Method Fannie DU allowed & Freddie LP allowed Both must be risk scored by FHA TOTAL Scorecard Minimum Fico No minimum score required Qualifying Ratios 31/43 Standard or per DU or LP Eligible Properties 1-4 Units, Condos, PUDS (Manufactured Homes NOT ALLOWED) Mortgage Insurance See Guidelines Subordinate Financing Allowed per FHA Guidelines CalPERS Personal Loan Allowed with Max 1 st LA up to $350k; CalPERS Personal Loan max if $18,421. Conventional Loans Types FHA 30 Year Fixed Max LTV 97% (Purch/R&T) 95% (Cash Out) Max CLTV 103% Maximum 1st loan amount limits FHA Loan Limits by County