VALUATION SERVICES UPDATE FY 18 3 27 2017 1 Copyright

Скачать презентацию VALUATION SERVICES UPDATE FY 18 3 27 2017 1 Copyright

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DIGITAL RISK VALUATION SERVICES Differentiators Experience, training and staff Scalability • Trained directly by FNMA and Freddie Mac on appraisal guidelines and repurchase • One of the largest third party appraisal review departments (W 2 Appraisers, non. AMC related) • Trained by FNMA on Collateral Underwriter (CU) • Flexible staffing (W 2/1099 Blend) • 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 • 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 Licensing • We can provide any scope related to residential valuation review Partnership • Individual Appraiser licensure in 43 of the 51 licensable jurisdictions • We partner with our Clients and consider ourselves to be a part of their Team. • 30 Licensed W 2 • As a result we built a Appraisal. Appraisers, 1099 Services Management positive relationship, • Including complex assignments outside of the typical review • We perform customizable reviews in the Clients system as well as PDF outputs panel of 10 Appraisers wherein, we are viewed as more than just a vendor. • Strong Client survey results • Few competitors have Appraisers logging into the Clients systems • Valuation IQ is trademarked and is “approved” by Fitch 2 Copyright 2017 Digital Risk, LLC| Confidential and Proprietary DR 160325 Digital. Risk. com

PRODUCT OFFERINGS Product Offerings Price Per Unit Margin Profile Location Desk Review Level 1 $35 to $40 25% Onshore Desk Review Level 2 $95 to $115 25% Onshore CU Appraisal Escalations $45 to $95 20% Onshore Valuation. IQ $150 to $195 32% Onshore Pre-underwriting Appraisal Reviews $32 to $50 20% Onshore Servicing Reviews $50 20% Onshore BPO Reconciliations for trades $50 20% Onshore Collateral Underwriting $40 to $50 20% Onshore Appraisal Reviews/Reconciliations Scope Related TBD Onshore Rebuttals Scope Related TBD Onshore Repurchase Reviews Scope Related TBD Onshore White Labeled BPOs (Outsourced) TAT Related TBD Onshore White Labeled Property Inspections (Outsourced) TAT Related TBD Onshore AVM's (Outsourced) Output Related TBD Onshore 3 Copyright 2017 Digital Risk, LLC| Confidential and Proprietary DR 160325 Digital. Risk. com

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 PDF Technical Appraisal review of the appraisal using guidelines and external data. Form type 1. Appraisal approval, denial or revisions recommended (and provided). Desk Review Level 2 PDF Technical Appraisal review of the appraisal using guidelines and external data. Form type 2. Appraisal approval, denial or revisions recommended (and provided). Esalation reviews of appraisals with issues and high CU scores from RUM/RUS. Appraisal approval or secondary product recommended (FR, OA). CU Appraisal Escalations PDF/In LOS Valuation. IQ PDF 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 In LOS 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 Collateral Underwriting In LOS Appraisal Reviews/Reconciliations Review of the most recent Broker Price Opinion (BPO) using third party data to ensure the value Value approved or alternative value provided. Damage in BPO provided is correct and if applicable any property damage is provided to Client. Review of the appraisal leveraging FNMAs Collateral Underwriter (CU) and Client guides. Appraisal approval, revisions required (and cured by DR reviewer) or escalation for further review and potential denial by Client. Any Review of the apprasial using scope provided by Client. Dependent upon scope. Rebuttals Any Review of the appraisal, Clients documents and rebuttal documents to recommend final outcome. Rebuttal recommended or denied. Repurchase Reviews Any 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) PDF Broker Price Opinion (BPO) provided by third party in DR name. BPO provided White Labeled Property Inspections (Outsourced) PDF 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 4 Copyright 2017 Digital Risk, LLC| Confidential and Proprietary DR 160325 Digital. Risk. com

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 • Valuation. IQ • 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 • http: //www. fanniemae. com/portal/media/corporatenews/2016/6467. html • 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 • They already know us • Ally was previously unaware we have a Valuation department • • What other opportunities are we missing by not addressing the expertise we have? • See prior clients and scopes slide Package with other services (ie PLS) 7 Copyright 2017 Digital Risk, LLC| Confidential and Proprietary DR 160325 Digital. Risk. com

DIGITAL RISK VALUATION SERVICES - COMPETITORS Clear Capital Pro. Teck • https: //www. clearcapital. com/solutions/appraisals/ • CDA (Collateral Desktop Analysis) • • • Competitive product to Valaution. IQ Key Differentiator: Clear Capital has a Broker pull the data and provide to a 1099 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 Val. IQ, DR uses trained W 2 Appraisers who understand appraisal defects and pull the data directly during the review process. • https: //www. proteckservices. com/solutions/reviewproducts/ • ARR (Appraisal Risk Review) • Competitve product to Valuation. IQ • Value Reconciliations • Desk Reviews • “Collateral valuation and due diligence to support loan pool purchase, sale and securitization. ” Summit Valuation Clayton/Red. Bell • https: //summitvaluations. com/ • SVR – product similar to Valuation. IQ • “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. ” • http: //www. clayton. com/solutions-and-services/loan-reviewand-due-diligence/property-valuation-review/ • Appraisal Reviews • Desk Reviews Old Republic • http: //oldrepublicdefault. com/Valuation. aspx • Desk Reviews Corelogic Opus CMC • http: //www. corelogic. com/solutions/valuation-collateralrisk. aspx • http: //www. opuscmc. com/residential-due-diligence • Valuation Reconciliations • Fraud Reviews 9 Copyright 2017 Digital Risk, LLC| Confidential and Proprietary DR 160325 Digital. Risk. com