Digital Risk Valuation Services

1. Digital Risk Valuation Services ValuationIQ

2. Digital Risk Valuation Services Differentiators • 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, 1099 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 • 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 Appraisal Management Services

3. Digital Risk ValuationIQTM Advanced Technology and Expertise of Specialized Forensic Appraisers Clear, concise report supports reconciliation of multiple valuations and details material errors in the initial valuation. Extensive data analytics • MLS data from 90%+ of national real estate transactions • DRVS leverages other data sources for markets where MLS is not the driving data source • Third party sources: nationally licensed providers and public records Sophisticated technology validated by human expertise • Analysis performed by appraisers averaging 18 years’ experience and training in forensic reviews • Commentaries include in-depth analysis as well as expert recommendations Risk rating and variance percentile supported by empirical data Easy to reference records: • Maps of comparables • Property pictures – exterior and interior (via MLS) Appraiser commentaries detailing: • Subject property • Market conditions • Comparable analysis • Alternate sales analysis Detailed original appraisal and Digital Risk selected comparables

4. Digital Risk ValuationIQTM ValuationIQs vs Field Reviews Consistency • ValuationIQ reports are completed by W-2 DR Staff Appraisers, allowing for training and quick calibration to any Client changes or requirements. Field reviewers are independent and reports are inconsistent based on the experience performing enhanced field reviews. • Field Reviews offer a local expert knowledge, however, results vary from market to market and appraiser to appraiser. • Field Reviews take longer to adjust and incorporate changes • Avoid field review rubber stamp “agrees” • Both reports are completed by Certified Appraisers Data and Reporting: • Both reports utilize the same data • ValuationIQ includes superior reporting and granularity Analysis: • ValuationIQ report contains more analysis relevant to the Clients end goal Cost: • Enhanced Field Reviews have a variable cost ranging from $400+ • ValuationIQs have a flat cost Revision Rates: • Typical client revision requests are 10%+ for Field Reviews • Client revision requests are less than 1% for ValuationIQs

5. Digital Risk ValuationIQTM The Merits of ValuationIQ Having an industry accepted product, like ValuationIQ, ensures consistent results with defined outcomes. Strongest possible defendable position with the ValuationIQ and Findings Report being able to stand on its own. The relevance of an appraisal finding must be connected to also being a material defect in the appraisal, otherwise the finding has no relevance. Digital Risk has experience writing tens of thousands of successful repurchase letters as part of the repurchase process. We also have experience writing successful rebuttal letters as part of the overall repurchase/rescission process. The Dangers of Non-Relevant Appraisal Issues • Using untested products, promote questions and concerns regarding findings accuracy and overall product reliability. • An appraisal finding must be connected to a material defect in the appraisal, otherwise the finding has no relevance. • Examples of Finding misconceptions: • Just quoting a USPAP violation, will not in and of itself, be an automatic relevant finding • The subject property having External Obsolescence isn’t a relevant finding unless it can be proven that the appraiser miss-handled the External Obsolescence within the appraisal analysis • As with any law case, there needs to be proven reasonable doubt regarding a material defect and/or value accuracy • Providing appraisal methodology that is contradictory or non-relevant to a finding

6. Property Valuation Fraud Detection Tools Valuation Review Tools Third-party Review Tools: • Magellan - Valuation tool using MLS data with ability to customize search parameters. This product is good when dealing with unique properties. (http://www.magvaluation.com/) • System intelligently searches the MLS broker comments for key words and phrases that correlate to condition, such as "fixer upper", "updated", "refinished", etc. • Integrates both MLS and tax records • Real Quest / Tax Records / Zillow/ Trulia / HPI Data / Aerial Imagery – Entry level data sources used for verification and escalation purposes.

7. Digital Risk Valuation Services ValuationIQ Output Appraisal Management Services

8. Digital Risk Valuation Services ValuationIQ Output Cont’d. Appraisal Management Services

9. Digital Risk Valuation Services ValuationIQ Output Cont’d. Appraisal Management Services