1. Valuation Services Update
FY’ 18
3/27/2017

2. Digital Risk Valuation Services
Differentiators
Experience, training and staff
Trained directly by FNMA and Freddie Mac on appraisal guidelines and repurchase
Trained by FNMA on Collateral Underwriter (CU)
1 of 2 vendors
Implemented bifurcated loan process
Has led to increased loan quality and decreased turn times
Average appraisal experience over 18 years and tenure at DR over 6 years
Scalability
One of the largest third party appraisal review departments (W2 Appraisers, non- AMC related)
Flexible staffing (W2/1099 Blend)
Ability to ramp fast
Competitors lean towards remote, contracted employees
Model leads to degraded quality and high employee turnover
Or are too small to expand
Ability to Calibrate to Scopes and Customize
We can provide any scope related to residential valuation review
Including complex assignments outside of the typical review
We perform customizable reviews in the Clients system as well as PDF outputs
Few competitors have Appraisers logging into the Clients systems
Valuation IQ is trademarked and is “approved” by Fitch
Licensing
Individual Appraiser licensure in 43 of the 51 licensable jurisdictions
30 Licensed W2 Appraisers, panel of 10 Appraisers
Partnership
We partner with our Clients and consider ourselves to be a part of their Team.
As a result we built a positive relationship, wherein, we are viewed as more than just a vendor.
Strong Client survey results
Appraisal Management Services

3. Product Offerings Product Offerings Price Per Unit Margin Profile
Location
Desk Review Level 1
$35 to $40
25%
Onshore
Desk Review Level 2
$90
$95 to $115
CU Appraisal Escalations
$45 to $95
20%
ValuationIQ
$150 to $195
32%
Pre-underwriting Appraisal Reviews
$32 to $50
Servicing Reviews
$50
BPO Reconciliations for trades
Collateral Underwriting
$40 to $50
Appraisal Reviews/Reconciliations
Scope Related
TBD
Rebuttals
Repurchase Reviews
White Labeled BPOs (Outsourced)
TAT Related
White Labeled Property Inspections (Outsourced)
AVM's (Outsourced)
Output Related

4. Product Offerings Product Output Scope Product Outcome
Desk Review Level 1
PDF
Administrative review of the appraisal using guidelines and only the appraisal (no outside information).
Appraisal approval, denial, revisions recommended (and provided) or escalate for further review.
Desk Review Level 2
Technical Appraisal review of the appraisal using guidelines and external data. Form type 1.
Appraisal approval, denial or revisions recommended (and provided).
Technical Appraisal review of the appraisal using guidelines and external data. Form type 2.
CU Appraisal Escalations
PDF/In LOS
Esalation reviews of appraisals with issues and high CU scores from RUM/RUS.
Appraisal approval or secondary product recommended (FR, OA).
ValuationIQ
Deep dive review of the appraisal leveraging multiple lising service (MLS) access. Appraisal is reviewed to guides, overall risk and a value provided .
Value approved or alternative value provided. Risk level of low, medium or high.
Pre-underwriting Appraisal Reviews
In LOS
Review of the apprasial using the Client provided guides, checklist or review template. Role is to ensure the appraisal meets all requirements prior to underwriting.
Appraisal approval, revisions required (and cured by DR reviewer) or escalation for further review and potential denial by Client.
Servicing Reviews
Review of the most recent valution in the Clients system. Comparison performed to prior products and analysis provided indicating current value for loan servicing process.
Value approved or alternative value provided.
BPO Reconciliations for trades
Excel
Review of the most recent Broker Price Opinion (BPO) using third party data to ensure the value provided is correct and if applicable any property damage is provided to Client.
Value approved or alternative value provided. Damage in BPO provided.
Collateral Underwriting
Review of the appraisal leveraging FNMAs Collateral Underwriter (CU) and Client guides.
Appraisal Reviews/Reconciliations
Any
Review of the apprasial using scope provided by Client.
Dependent upon scope.
Rebuttals
Review of the appraisal, Clients documents and rebuttal documents to recommend final outcome.
Rebuttal recommended or denied.
Repurchase Reviews
Review of the appraisal with the purposing of quantifying why the appraisal went into default and if any fraud occurred. Review of the appraisal for value and guidelines issues.
Value approved, alternative value provided, or guideline issues.
White Labeled BPOs (Outsourced)
Broker Price Opinion (BPO) provided by third party in DR name.
BPO provided
White Labeled Property Inspections (Outsourced)
Property Inspection/Condtion report provided by third party in DR name.
Inspection/condition report provided.
AVM's (Outsourced)
Excel/PDF link
Automated valuation model (AVM) provided by third party.
AVM provided

5. Active Clients and Scopes

6. Current Opportunities

7. Digital Risk Valuation Services
Potential Opportunities
FNMA “Day 1 Certainty”
Capital Markets Opportunities/Loan Purchasing
If a property meets certain criteria then the lenders receive rep and warrants
Files that do not meet the proposed criteria (CU scores above 2.5) need to be reviewed to ensure lenders are limiting repurchase risk.
Can be done via Desk Reviews, CU reviews
ValuationIQ
Extract marketplace owned by Clear Capital CDA
BPO Recons
Escalations
Value Reconciliations
Similar to FAMC, Clients may need expertise
Using high level RUM’s/RUS’s is not viable or affordable
Clients have multiple Appraisals and are unsure which to utilize for Closing
Cross sell current non-valuation Clients
Call prior Valuation Clients to address nee
Ally was previously unaware we have a Valuation department
What other opportunities are we missing by not addressing the expertise we have?
Package with other services (ie PLS)
They already know us
See prior clients and scopes slide

8. Digital Risk Valuation Services

9. Digital Risk Valuation Services - Competitors
Clear Capital
ProTeck
CDA (Collateral Desktop Analysis)
Competitive product to ValautionIQ
Key Differentiator: Clear Capital has a Broker pull the data and provide to a Appraiser. (The final reviewer does not pull the data and as a result is not aware of gaps. Additionally, the reviewers results are not calibrated.)
For ValIQ, DR uses trained W2 Appraisers who understand appraisal defects and pull the data directly during the review process.
ARR (Appraisal Risk Review)
Competitve product to ValuationIQ
Value Reconciliations
Desk Reviews
“Collateral valuation and due diligence to support loan pool purchase, sale and securitization.”
Summit Valuation
Clayton/RedBell
Appraisal Reviews
Desk Reviews
SVR – product similar to ValuationIQ
“From investors in the REO to rehab space to loan servicers and clients in the capital markets sector. The SVR is a great option if you are looking to accurately establish a value or reconcile a single, or multiple valuation reports.”
Old Republic
Desk Reviews
Corelogic
Opus CMC
Valuation Reconciliations
Fraud Reviews

10. Prior Projects

11. Addendum
Product Samples

12. ValuationIQ
Appraisal Management Services

13. ValuationIQ (cont.)
Appraisal Management Services

14. ValuationIQ (cont.)
Appraisal Management Services

15. Desk Review Level 1 or 2 Output
Appraisal Management Services

16. Desk Review Level 3 Output
Appraisal Management Services

17. Desk Review Level 3 Output (cont.)
Appraisal Management Services

18. BPO Recon Output
Appraisal Management Services

19. CU Appraisal Escalation Output
Appraisal Management Services

20. Property Condition Report (PCR Inspection – Outsourced)

21. Collateral Underwriter Workflow

22. Marketing Valuations
Marketing Material review

23. Marketing Material For Valuation