SPEEDY APPRAISALS APPRAISAL OF LOCATED AT: Phelan, CA FOR: AKT American Capital Corporation 2121 Rosecrans Ave, 6th Floor El Sugundo, CA 90245

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1 File No. APPRAISAL OF LOCATED AT: Phelan, CA FOR: AKT American Capital Corporation 2121 Rosecrans Ave, 6th Floor El Sugundo, CA 9245 BORROWER: Michele Barlow AS OF: July 2, 214 BY: Michael Fowler

2 File No. 7/7/214 AKT American Capital Corporation AKT American Capital Corporation 2121 Rosecrans Ave, 6th Floor El Sugundo, CA 9245 File Number: In accordance with your request, I have appraised the real property at: Phelan, CA The purpose of this appraisal is to develop an opinion of the market value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the market value of the property as of July 2, 214 is: $125, One Hundred Twenty-Five Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final opinion of value, descriptive photographs, limiting conditions and appropriate certifications. Sincerely, Michael Fowler

3 MARKET RESEARCH & ANALYSIS Market Conditions Addendum to the Appraisal Report The purpose of this addendum is to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood. This is a required addendum for all appraisal reports with an effective date on or after April 1, 29. Property Address City Phelan State CA Zip Code Borrower Michele Barlow Instructions: The appraiser must use the information required on this form as the basis for his/her conclusions, and must provide support for those conclusions, regarding housing trends and overall market conditions as reported in the Neighborhood section of the appraisal report form. The appraiser must fill in all the information to the extent it is available and reliable and must provide analysis as indicated below. If any required data is unavailable or is considered unreliable, the appraiser must provide an explanation. It is recognized that not all data sources will be able to provide data for the shaded areas below; if it is available, however, the appraiser must include the data in the analysis. If data sources provide the required information as an average instead of the median, the appraiser should report the available figure and identify it as an average. Sales and listings must be properties that compete with the subject property, determined by applying the criteria Explain in detail the seller concessions trends for the past 12 months (e.g., seller contributions increased from 3% to 5%, increasing use of buydowns, closing costs, condo fees, options, etc.). The amount of seller concessions has been rising from 3%-6% range over the past 12 month period. Are foreclosure sales (REO sales) a factor in the market? Yes X No If yes, explain (including the trends in listings and sales of foreclosed properties). File No that would be used by a prospective buyer of the subject property. The appraiser must explain any anomalies in the data, such as seasonal markets, new construction, foreclosures, etc. Inventory Analysis Total # of Comparable Sales (Settled) Absorption Rate (Total Sales/Months) Total # of Comparable Active Listings Months of Housing Supply (Total Listings/Ab.Rate) Median Sale & List Price, DOM, Sale/List % Median Comparable Sale Price Median Comparable Sales Days on Market Median Comparable List Price Median Comparable Listings Days on Market Median Sale Price as % of List Price Prior 7 12 Months Prior 7 12 Months 86, 36 11, % Prior 4 6 Months Prior 4 6 Months 13, , % Current 3 Months Current 3 Months 124, , % X Increasing X Increasing Declining X Declining X Increasing Declining X Increasing Declining Increasing X X X Overall Trend Stable Stable Stable Stable Overall Trend Stable Stable Stable Stable Stable Declining Declining X Increasing Increasing Declining Increasing Declining Increasing Declining Seller-(developer, builder, etc.)paid financial assistance prevalent? X Yes No Declining X Stable Increasing Cite data sources for above information. Victor Valley MLS. 5 mile radius. Summarize the above information as support for your conclusions in the Neighborhood section of the appraisal report form. If you used any additional information, such as an analysis of pending sales and/or expired and withdrawn listings, to formulate your conclusions, provide both an explanation and support for your conclusions. Comparable Sales Prices and List Prices are increasing within the past year. Marketing times appear to be stable. CONDO / CO-OP PROJECTS If the subject is a unit in a condominium or cooperative project, complete the following: N/A Project Name: N/A Subject Project Data Total # of Comparable Sales (Settled) Absorption Rate (Total Sales/Months) Total # of Active Comparable Listings Months of Unit Supply (Total Listings/Ab. Rate) Prior 7 12 Months N/A N/A Prior 4 6 Months N/A N/A Current 3 Months N/A N/A N/A N/A Increasing Increasing Declining Declining Overall Trend Stable Stable Stable Stable Declining Declining Increasing Increasing Are foreclosure sales (REO sales) a factor in the project? Yes X No If yes, indicate the number of REO listings and explain the trends in listings and sales of foreclosed properties. N/A Summarize the above trends and address the impact on the subject unit and project. N/A APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) APPRAISER Signature Name Michael Fowler Company Name Company Address Pacoima Rd. Victorville, CA State License/Certification # AR32644 State CA Address SPEEDY_APPRAISALS@JUNO.COM Signature Name Company Name Company Address State License/Certification # Address State Freddie Mac Form 71 March 29 Produced using ACI software, Fannie Mae Form 14MC March 29 Page 1 of 1 14MC_29 999

4 Manufactured Home Appraisal Report The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property. Property Address City Phelan State CA Zip Code Borrower Michele Barlow Owner of Public Record Barlow, Mark Earl & Michele Lee County San Bernardino Legal Description Parcel Map 9726 Parcel No 3 Assessor's Parcel # Tax Year 213 R.E. Taxes $ 1,5 Neighborhood Name Phelan Map Reference 4383/C3 Census Tract 91.8 Occupant X Owner Tenant Vacant Project Type (if applicable) PUD Condominium Cooperative Other (describe) Special Assessments $ HOA $ per year per month Property Rights Appraised X Fee Simple Leasehold Other (describe) Assignment Type Purchase Transaction X Refinance Transaction Other (describe) Lender/Client AKT American Capital Corporation Address 2121 Rosecrans Ave, 6th Floor, El Sugundo, CA 9245 Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? Yes X No Report data source(s) used, offering price(s), and date(s). The Subject Property has no Listings nor Sales on the Victor Valley MLS in the past year. SUBJECT File No Manufactured homes located in either a condominium or cooperative project require the appraiser to inspect the project and complete the Project Information section of the Individual Condominium Unit Appraisal Report or the Individual Cooperative Interest Appraisal Report and attach it as an addendum to this report. I did did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. CONTRACT Contract Price $ Date of Contract Is the property seller the owner of public record? Yes No Data Source(s) Is there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? Yes X No If Yes, report the total dollar amount and describe the items to be paid. I did did not analyze the manufacturer s invoice. Explain the results of the analysis of the manufacturer s invoice or why the analysis was not performed. NEIGHBORHOOD Retailer s Name (New Construction) Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood Characteristics Manufactured Housing Trends Manufactured Housing Present Land Use % Location Urban Suburban X Rural Property Values X Increasing Stable Declining PRICE AGE One-Unit 43 % Built-Up Over 75% 25-75% X Under 25% Demand/Supply Shortage X In Balance Over Supply $() (yrs) 2-4 Unit % Growth Rapid Stable X Slow Marketing Time X Under 3 mths 3-6 mths Over 6 mths 7 Low 6 Multi-Family % Neighborhood Boundaries South Rd to the North, Goss Rd to the South, Buttermere Rd to the East 17 High 44 Commercial 2 % and Wintergreeen Rd to the West. 125 Pred. 24 Other VCNT 55 % Neighborhood Description Rural Community of average to good quality SFR's and manufacutured homes with various designs. Public schools, transportation, employment centers and shopping are within average proximity to the subject. Market Conditions (including support for the above conclusions) Subject neighborhood appears to have rising market values. Marketing times for competitively priced properties appear to be 1-4 months. Both FHA and Conventional Financing is common at this time. Dimensions 281x288x283x59 x215x16 Area 2.3 ac re Shape Rectangular View B;Mtn;Desert; Specific Zoning Classification PH/RL Zoning Description Manuf Home On Perm Found Zoning Compliance X Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe) Is the highest and best use of the subject property as improved (or as proposed per plans and specifications) the present use? X Yes No If No, describe Utilities Public Other (describe) Public Other (describe) Off-site Improvements Type Public Private Electricity X Water X Street Asphalt X Gas X Propane/Typical Sanitary Sewer X Septic/Typical Alley None FEMA Special Flood Hazard Area Yes X No FEMA Flood Zone D FEMA Map # 671C/5775 H FEMA Map Date 8/28/28 Are the utilities and off-site improvements typical for the market area? X Yes No If No, describe SITE Is the site size, shape and topography generally conforming to and acceptable in the market area? X Yes No If No, explain Is there adequate vehicular access to the subject property? X Yes No If No, describe Is the street properly maintained? X Yes No If No, describe Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes X No If Yes, describe At the time of inspection no adverse environmental conditions noted on site or in the immediate vicinity,however the appraiser is not an expert, and is not qualified to confirm or deny the existence of hazardous substances. HUD DATA PLATE The HUD Data Plate/Compliance Certificate is located on the interior of the subject and contains, among other things, the manufacturer s name, trade/model name, year manufactured and serial number. The HUD Certification Label is located on the exterior of each section of the home. Is the HUD Data Plate/Compliance Certificate attached to the dwelling? Yes X No If Yes, identify the location. If No, provide the data source(s) for the HUD Data Plate/Compliance Certificate information. Is a HUD Certification Label attached to the exterior of each section of the dwelling? X Yes No If No, provide the data source(s) for the HUD Certification Label # s Manufacturer s Serial #(s)/vin #(s) Not available HUD Certification Label #(s) HWC HWC Manufacturer s Name Unknown Trade/Model Fuqua Date of Manufacture Unknown Do the Wind, Roof Load, and Thermal Zones meet the minimum HUD requirements for the location of the subject property? X Yes No If No, explain Freddie Mac Form 7B March 25 Produced using ACI software, Fannie Mae Form 14C March 25 Page 1 of 7 14C_5 999

5 Manufactured Home Appraisal Report General Description Foundation Exterior Description materials/condition Interior materials/condition # of Units X One Additions Poured Concrete Concrete Runners Skirting None Floors wood/carpet/gd # of Stories X 1 2 Other X Block & Pier Other-att. description Exterior Walls Wood/Gd Walls Drywall/Gd Design (Style) manufactured Full Basement Partial Basement Roof Surface Comp/Gd Trim/Finish Wood/Gd # of Sections 1 X 2 3 Basement Area sq. ft. Gutters & Downspouts None Bath Floor wood/gd Other Basement Finish % Window Type Alum/Gd Bath Wainscot Fiber/Gd Type X Det. Att. S-Det./End Unit Outside Entry/Exit Sump Pump Storm Sash/Insulated None Car Storage None X Existing Proposed Under Const. Evidence of Infestation ScreensAlum/Gd Driveway # of Cars Year Built 1987 Effective Age (Yrs) 37 Dampness Settlement Doors Wood/Gd Driveway Surface Dirt Attic None Heating X FWA HWBB Radiant Amenities WoodStove(s) # Garage # of Cars Drop Stair Stairs Other Fuel Propane Fireplace(s) # X Fence Chain Carport # of Cars Floor X Scuttle Cooling X Central Air Conditioning X Patio/Deck Cvd X Porch Cvd Attached Detached Finished Heated Individual Other Pool none Other none Built-in Appliances X Refrigerator X Range/Oven X Dishwasher X Disposal X Microwave X Washer/Dryer Other (describe) Finished area above grade contains: 6 Rooms 3 Bedrooms 2. Bath(s) 1,44 Square Feet of Gross Living Area Above Grade Describe any additions or modifications (decks, rooms, remodeling, etc.) No additions noted. File No Installer s Name unknown Date Installed Unknown Model Year Is the manufactured home attached to a permanent foundation system? X Yes No If No, describe the foundation sytem and the manner of attachment IMPROVEMENTS Have the towing hitch, wheels, and axles been removed? X Yes No If No, explain Is the manufactured home permanently connected to a septic tank or sewage system and other utilities? X Yes No If No, explain Does the dwelling have sufficient gross living area and room dimensions to be acceptable to the market? X Yes No If No, explain Additional features (special energy efficient items, non-realty items, etc.) Doors and Windows. The appraiser must rate the quality of construction for the subject unit based on objective criteria (such as N.A.D.A. Manufactured Housing Appraisal Guide, Marshall & Swift Residential Cost Handbook, or other published cost service). The appraiser must also report the source used for this quality of construction rating determination. Quality Poor Fair X Good Excellent Identify source of quality rating NDC Data Records Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). The subject property is in overall good condition at the time of inspection. Recently painted on the exterior. Has upgraded granite counter tops in 1 bathroom. No needed repairs were noted at the time of inspection. Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes X No If Yes, describe Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? X Yes No If No, describe COST APPROACH Provide adequate information for the lender/client to replicate the below cost figures and calculations. Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value) Land value has been estimated through the Extraction Method and the land to value ratio is typical for the area. Land value exceeds 3% of the total estimated value of the home. This is common for the area and does not have an adverse effect on its marketability. ESTIMATED REPRODUCTION OR X REPLACEMENT COST NEW Source of cost data MARSHALL & SWIFT Effective date of cost data 7/2/214 Quality rating from cost service Q4 OPINION OF SITE VALUE $ 55, Exterior Dimensions of the Subject Unit Section One 713 Sq. $ 75. $ 53, x 12.5 = 713 Sq. ft. Section Two 727 Sq. $ 75. $ 54, x 12.5 = 727 Sq. ft. Section Three Sq. $ $ x = Sq. ft. Section Four Sq. $ $ 24 x = Sq. ft. porch / decking $ 12, Total Gross Living Area: 1,44 Sq. ft. $ Other Data Identification $ N.A.D.A. Data Identification Info: Edition Mo: Yr: Sub-total: $ 12,24 MH State: Region: Size: ft. x ft. Cost Multiplier (if applicable): x Gray pg. White pg. Black SVS pg. Modified Sub-total: 12,24 15 years and older Conversion Chart pg. Yellow pg. Physical Depreciation or Condition Modifier: $44,7 Comments There was a lack of information regarding the Subject Functional Obsolescence (not used for N.A.D.A.): External Depreciation or State Location Modifier: $ $ Property regarding the Manufacturers name and the Date of Manufacture. Delivery, Installation, and Setup (not used for N.A.D.A.): Other Depreciated Site Improvements: Market Value of Subject Site (as supported above): Indicated Value by Cost Approach: $ $ $ $ 55, 13,3 Estimated Remaining Economic Life (HUD and VA only) 38 Years Summary of Cost Approach Physical depreciation was calculated by the economic age life method. Replacement cost was extracted from marshall & swift cost handbook. Land to value ratio is typical for similar improved residential properties. Freddie Mac Form 7B March 25 Produced using ACI software, Fannie Mae Form 14C March 25 Page 2 of 7 14C_5 999

6 SALES COMPARISON APPROACH Above Grade Total Bdrms. Baths Total Bdrms. Baths Room Count Gross Living Area25. 1,44 sq. ft. 1,9 sq. ft. Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck sf Fau / Cac Doors / Windows None Porch / Patio sf Fau / Cac Doors / Windows None Porch / Deck Fireplace None 1 F/P Pool None None Manufactured Home Appraisal Report Net Adjustment (Total) Adjusted Sale Price of Comparables + Net Adj. Gross Adj. X % 9.3% $ $ 14,8 144,2 + Net Adj. Gross Adj. X - -1.% 11.8% $ $ I X did did not research the sale or transfer history of the subject property and comparable sales. If not, explain File No There are 15 comparable properties currently offered for sale in the subject neighborhood ranging in price from $ 99,9 to $ 169,. There are 21 comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ 75, to $ 159,. FEATURE SUBJECT COMPARABLE SALE NO. 1 COMPARABLE SALE NO. 2 COMPARABLE SALE NO Sunset Rd Corton St 5858 Goss Rd Address Phelan, CA Phelan, CA Phelan, CA Phelan, CA Proximity to Subject 3.4 miles SW 3.45 miles SW 3.45 miles SE Sale Price $ $ 159, $ 125, $ 124,9 Sale Price/Gross Liv. Area $. sq. ft. $ sq. ft. $ 89.8 sq. ft. $ sq. ft. Manufactured Home X Yes No X Yes No X Yes No Data Source(s) Verification Source(s) VVMLS#442233;DOM 21 Realist Tax #19153 VVMLS#439784;DOM 8 Realist Tax # VVMLS#437686;DOM 28 Realist Tax #75734 VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions Arm's Length Conv; Arm's Length Conv; Arm's Length FHA;3747-3,747 Date of Sale/Time 6/4/214 4/18/214 +3,75 2/27/214 +6,245 Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition Rural Fee simple 2.3 ac re B;Mtn;Desert; manufactured 27 C3 Rural Fee simple 2.9 ac res B;Mtn;Desert; manufactured 14 C3-1,3 Rural Fee simple 2.3 ac res B;Mtn;Desert; manufactured 29 C3 Rural Fee simple 1.66 ac res B;Mtn;Desert; manufactured 8 C3 +3,7-1,9 Total Bdrms. Baths ,5 1,392 sq. ft. sf Fau / Evap Doors / Windows 3 Car Garage Porch / Deck -2, 1 W/S None Total Bdrms. Baths ,512 sq. ft. sf +3, Fau / Cac Doors / Windows -6, 2 Car Garage Porch / Deck -2, None None 1,25 X + - $ Net Adj..2% 123,75 Gross Adj. 15.7% $ -4, ,198 My research did X did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Data source(s) Realist Tax Records My research X did did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale. Data source(s) Realist Tax Records Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 4). ITEM SUBJECT COMPARABLE SALE NO. 1 COMPARABLE SALE NO. 2 COMPARABLE SALE NO. 3 Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) Realist Tax Records 7/6/214 2/19/214 85, Realist Tax Records 7/6/214 Realist Tax Records 7/6/214 Realist Tax Records 7/6/214 Analysis of prior sale or transfer history of the subject property and comparable sales The subject has no prior sales or transfers for the 3 years prior to the effective date of this appraisal. The prior transfer of comparable # 1 was that of a Trustee Deed Sale and not a Standard Arm's Length Transaction. Summary of Sales Comparison Approach. See Attached Addendum RECONCILIATION Indicated Value by Sales Comparison Approach $ 125, Indicated Value by: Sales Comparison Approach $ 125, Cost Approach $ 13,3 Income Approach (if developed) $ In the final reconciliation of value the most emphasis was placed on the direct sales comparison approach. The cost approach was used as a supportive measure. There was not sufficient data to develop the income approach. This appraisal is made X "as is," subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ 7/2/ , as of, which is the date of inspection and the effective date of this appraisal. Freddie Mac Form 7B March 25 Produced using ACI software, Fannie Mae Form 14C March 25 Page 3 of 7 14C_5 999

7 Manufactured Home Appraisal Report The subject's utilities were on and functional at the time of inspection. File No I am stating that i have not performed an appraisal service with regard to the subject property in the 3 years proceeding this assignment. The estimated exposure time of the subject is 1-3 months. Carbon monoxide detector was installed. Smoke detectors were in place. The water heater was properly double strapped. The Subject Property meets the minimum HUD property standards for existing dwelling as outlined in HUD handbooks and A head and shoulders inspection of the attic was performed. PUD INFORMATION INCOME ADDITIONAL COMMENTS INCOME APPROACH TO VALUE (not required by Fannie Mae) Estimated Monthly Market Rent $ X Gross Rent Multiplier = $ Indicated Value by Income Approach Summary of Income Approach (including support for market rent and GRM) PROJECT INFORMATION FOR PUDs (if applicable) Is the developer/builder in control of the Homeowners' Association (HOA)? Yes No Unit type(s) Detached Attached Provide the following information for PUDs ONLY if the developer/builder is in control of the HOA and the subject property is an attached dwelling unit. Legal name of project Total number of phases Total number of units Total number of units sold Total number of units rented Total number of units for sale Data source(s) Was the project created by the conversion of existing building(s) into a PUD? Yes No If Yes, date of conversion Does the project contain any multi-dwelling units? Yes No Data source(s) Are the units, common elements, and recreation facilities complete? Yes No If No, describe the status of completion. Are the common elements leased to or by the Homeowners' Association? Yes No If Yes, describe the rental terms and options. Describe common elements and recreational facilities. Freddie Mac Form 7B March 25 Produced using ACI software, Fannie Mae Form 14C March 25 Page 4 of 7 14C_5 999

8 Manufactured Home Appraisal Report File No This report form is designed to report an appraisal of a one-unit manufactured home; including a manufactured home in a planned unit development (PUD). A Manufactured home located in either a condominium or cooperative project requires the appraiser to inspect the project and complete the project information section of the Individual Condominium Unit Appraisal Report or the Individual Cooperative Interest Appraisal Report and attach it as an addendum to this report. This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser s continuing education or membership in an appraisal organization, are permitted. SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction. INTENDED USER: The intended user of this appraisal report is the lender/client. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser s certification in this report is subject to the following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. The sketch is included only to assist the reader in visualizing the property and understanding the appraiser s determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner. Freddie Mac Form 7B March 25 Produced using ACI software, Fannie Mae Form 14C March 25 Page 5 of 7 14C_5 999

9 Manufactured Home Appraisal Report File No APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report. 2. I performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the condition of the improvements in factual, specific terms. I identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I also developed the cost approach to value as support for the sales comparison approach. I have adequate comparable market and cost data to develop reliable sales comparison and cost approaches for this appraisal assignment. I further certify that I considered the income approach to value but did not develop it, unless otherwise indicated in this report. 5. I researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. I researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. I selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. I have not used comparable sales that were the result of combining a land sale with the contract purchase price of a home that has been built or will be built on the land. 9. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 1. I verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing of the subject property. 11. I have knowledge and experience in appraising this type of property in this market area. 12. I am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct. 14. I have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. I have noted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the subject property or that I became aware of during the research involved in performing this appraisal. I have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subject property. 15. I have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all statements and information in this appraisal report are true and correct. 16. I stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 17. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law. 18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application). 19. I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If I relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal report, I have named such individual(s) and disclosed the specific tasks performed in this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and I will take no responsibility for it. 2. I identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report. 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to obtain the appraiser s or supervisory appraiser s (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). Freddie Mac Form 7B March 25 Produced using ACI software, Fannie Mae Form 14C March 25 Page 6 of 7 14C_5 999

10 Manufactured Home Appraisal Report File No I am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject to certain laws and regulations. Further, I am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice that pertain to disclosure or distribution by me. 23. The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties. 24. If this appraisal report was transmitted as an electronic record containing my electronic signature, as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 11, et seq., or similar state laws. SUPERVISORY APPRAISER'S CERTIFICATION: The Supervisory Appraiser certifies and agrees that: 1. I directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser s analysis, opinions, statements, conclusions, and the appraiser s certification. 2. I accept full responsibility for the contents of this appraisal report including, but not limited to, the appraiser s analysis, opinions, statements, conclusions, and the appraiser s certification. 3. The appraiser identified in this appraisal report is either a sub-contractor or an employee of the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law. 4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 5. If this appraisal report was transmitted as an electronic record containing my electronic signature, as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Name Michael Fowler Company Name Company Address Pacoima Rd. Victorville, CA Telephone Number Address SPEEDY_APPRAISALS@JUNO.COM Date of Signature and Report 7/8/214 Effective Date of Appraisal 7/2/214 State Certification # AR32644 or State License # or Other (describe) State # State CA Expiration Date of Certification or License 12/16/215 ADDRESS OF PROPERTY APPRAISED Phelan, CA APPRAISED VALUE OF SUBJECT PROPERTY $ LENDER/CLIENT Name Lenders Choice Inc. Company Name AKT American Capital Corporation Company Address 2121 Rosecrans Ave, 6th Floor El Sugundo, CA Address 125, Signature Name Company Name Company Address Telephone Number Address Date of Signature State Certification # or State License # State Expiration Date of Certification or License SUBJECT PROPERTY Did not inspect subject property Did inspect exterior of subject property from street Date of Inspection Did inspect interior and exterior of subject property Date of Inspection COMPARABLE SALES Did not inspect exterior of comparable sales from street Did inspect exterior of comparable sales from street Date of Inspection Freddie Mac Form 7B March 25 Produced using ACI software, Fannie Mae Form 14C March 25 Page 7 of 7 14C_5 999

11 SALES COMPARISON APPROACH Net Adjustment (Total) Adjusted Sale Price of Comparables Manufactured Home Appraisal Report FEATURE SUBJECT COMPARABLE SALE NO. 4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO Silver Rock Rd 7122 Begonia Rd Address Phelan, CA Pinon Hills, CA Phelan, CA Proximity to Subject 4.15 miles SW 2.75 miles NE Sale Price $ $ 14,9 $ 139,9 $ Sale Price/Gross Liv. Area $. sq. ft. $ sq. ft. $ sq. ft. $ sq. ft. Manufactured Home Yes No Yes No Yes No Data Source(s) Verification Source(s) VVMLS#438788;DOM158 Realist Tax Records VVMLS#439349;DOM 161 Realist Tax Records VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Rural Fee simple Listing ; 7/1/14 Rural Fee simple Listing ; Active Rural Fee simple -1,39 Site View Design (Style) Quality of Construction Actual Age Condition 2.3 ac re B;Mtn;Desert; manufactured 27 C3 2.1 ac res B;Mtn;Desert; manufactured 1 C3-1,7 2.6 ac res B;Mtn;Desert; manufactured 9 C3-1,8 Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count Gross Living Area25. 1,44 sq. ft. 1,512 sq. ft. 1,568 sq. ft. -3,2 sq. ft. Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck sf Fau / Cac Doors / Windows None Porch / Patio sf Fau / Cac Doors / Windows None Porch / Deck sf Fau / Cac Doors / Windows None Porch / None +2, Fireplace None 1 F/P -2, None Pool None Pool -5, None ITEM Date of Prior Sale/Transfer + X - $ Net Adj. -6.2% Gross Adj. 6.2% $ SUBJECT File No ,7 + X - $ 4,39 X + - $ Net Adj. -3.1% Net Adj..% 132,2 Gross Adj. 6.% $ 135,51 Gross Adj..% $ COMPARABLE SALE NO. 4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO. 6 Price of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) Realist Tax Records 7/6/214 Realist Tax Records 7/6/214 Summary of Sales Comparison Approach A list to sales price adjustment ( negotiation ) of 1% of the sales price was made to Comparable # 5 based on current market reaction. Freddie Mac Form 7B March 25 Produced using ACI software, Fannie Mae Form 14C March 25 14C_5 999

12 SALES COMPARISON APPROACH FEATURE SUBJECT Address Phelan, CA Proximity to Subject Sale Price $ Sale Price/Gross Liv. Area $. sq. ft. Manufactured Home Data Source(s) Verification Source(s) VALUE ADJUSTMENTS Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition Net Adjustment (Total) Adjusted Sale Price of Comparables DESCRIPTION Manufactured Home Appraisal Report COMPARABLE SALE NO. 7 $ $. sq. ft. Yes No DESCRIPTION Above Grade Total Bdrms. Baths Total Bdrms. Baths Room Count Gross Living Area25. 1,44 sq. ft. sq. ft. Basement & Finished sf Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck Fau / Cac Doors / Windows None Porch / Patio Fireplace None Pool None ITEM Date of Prior Sale/Transfer Rural Fee simple 2.3 ac re B;Mtn;Desert; manufactured 27 C3 X + - $ Net Adj..% Gross Adj..% $ SUBJECT Price of Prior Sale/Transfer Data Source(s) Realist Tax Records Effective Date of Data Source(s) 7/6/214 Summary of Sales Comparison Approach +(-) $ Adjustment COMPARABLE SALE NO. 8 $ $. sq. ft. Yes No DESCRIPTION Total Bdrms. Baths sq. ft. +(-) $ Adjustment File No. COMPARABLE SALE NO. 9 $ sq. ft. X + - $ X + - $ Net Adj..% Net Adj..% Gross Adj..% $ Gross Adj..% $ COMPARABLE SALE NO. 7 COMPARABLE SALE NO. 8 COMPARABLE SALE NO. 9 Yes No DESCRIPTION Total Bdrms. Baths $ sq. ft. +(-) $ Adjustment Freddie Mac Form 7B March 25 Produced using ACI software, Fannie Mae Form 14C March 25 14C_5 999

13 ADDENDUM File No.: Property Address: Case No.: Comments on Sales Comparison In this Rural Area of Phelan, it was necessary to expand the radius search over a 1 mile and up to a 5 mile radius in order to locate Comparable Manufactured Homes with similar Gross Living Areas, Age and Lot Sizes. Comparable #4 was provided from the neighboring city of Pinon Hills. Pinon Hills is a similar Rural Community as Phelan. As per records analyzed on DataQuick values have increased at the rate of 58% within the Subject's zip code in the past year. Positive time adjustments were applied at the rate of 1% per month. Adjustments above this rate would appear to be excessive. Adjustments for the differences in lot sizes were applied at $1, per acre based on current market reaction. Regarding the condition of the comparables. Comparable # 1 has new stainless steel appliances and new interior & exterior paint. Comparable # 2 has new flooring throughout, the kitchen and baths have been updated, new vanities with granite counters. Comparable # 3 has upgraded kitchen and bathroom counter tops. Comparable # 4 has upgraded kitchen and bathroom counter tops. Comparable # 5 has fresh paint and new carpet. Adjustments for features such as Gross Living area, fireplaces, patios and garage sizes were applied based on the Paired Sales Analysis Technique. The subject location on a main feeder street was a negative factor, however being located on a paved road is a positive factor as most homes in the area are located on dirt roads thus making the location neutral and no adjustment was necessary. Comparable # 4 had a longer DOM than typical, reason could not be determined. It was originally listed for $144,9 before settling to its current pending sales price. The reason for the longer marketing time for comparable # 5 could not be determined by the appraiser by the information provided by the MLS listing. The comparables have sale prices which exceeded a 15% variance. The area has different styled homes mixed with various current condition, gross living areas and lot sizes. This offers different appeal to perspective home buyers, which leads to a wide variety of sale prices. The comparables provided are the most similar available at this time. Comparable Sales # 1 and # 2 were given the most weight in the final analysis because they required the fewest adjustments. The Pending Sale and Active Listing were provided for additional Support and are given limited weight. The final opinion of value is bracketed between both the actual sale prices and adjusted sale prices of the Comparable Sales. Addendum Page 1 of 1

14 SUBJECT PROPERTY PHOTO ADDENDUM File No.: Property Address: Case No.: FRONT VIEW OF SUBJECT PROPERTY Appraised Date: July 2, 214 Appraised Value: $ 125, REAR VIEW OF SUBJECT PROPERTY STREET SCENE

15 File No.: Property Address: Case No.: Side view Side view Propane tank Produced using ACI software, PHT

16 File No.: Property Address: Case No.: Living room Carpet flooring kitchen Wood flooring Dining area Wood flooring Produced using ACI software, PHT

17 File No.: Property Address: Case No.: Bedroom Carpet Flooring Bedroom Carpet Flooring Bedroom Carpet Flooring Produced using ACI software, PHT

18 File No.: Property Address: Case No.: Bathroom Wood Flooring Bathroom Wood Flooring Upgraded vanity with granite Laundry area Vinyl Flooring Produced using ACI software, PHT

19 File No.: Property Address: Case No.: Water heater Double strapped properly. CO2 detector Installed. Smoke detector Installed Produced using ACI software, PHT

20 File No.: Property Address: Case No.: Storage shed Storage shed Interior view Drive way Cement slab Produced using ACI software, PHT

21 File No.: Property Address: Case No.: Tree line Between road and subject. Hud plate Painted over Hud plate Painted over Produced using ACI software, PHT

22 COMPARABLE PROPERTY PHOTO ADDENDUM File No.: Property Address: Case No.: COMPARABLE SALE # Sunset Rd Phelan, CA Sale Date: 6/4/214 Sale Price: $ 159, COMPARABLE SALE # Corton St Phelan, CA Sale Date: 4/18/214 Sale Price: $ 125, COMPARABLE SALE # Goss Rd Phelan, CA Sale Date: 2/27/214 Sale Price: $ 124,9

23 COMPARABLE PROPERTY PHOTO ADDENDUM File No.: Property Address: Case No.: COMPARABLE SALE # Silver Rock Rd Pinon Hills, CA Sale Date: 7/1/14 Sale Price: $ 14,9 COMPARABLE SALE # Begonia Rd Phelan, CA Sale Date: Active Sale Price: $ 139,9 COMPARABLE SALE #6 Sale Date: Sale Price: $

24 File No.: Property Address: Case No.: The intended user of this appraisal report is the Lender/Client. FHA/ HUD is an addtional intended user of this report. The intended use is to evaluate the property that is the subject of this appraisal in order to determine its current market value. Definition of inspection: The term "inspection" as used in this report is not the same level of inspection that is required for a professional home inspection". The Appraiser does not fully inspect the electrical system, plumbing system, mechanical systems, foundation system, floor structure, or subfloor. The appraiser is not an expert in construction materials and the propose of the appraisal is to make an economic evaluation of the subject property. If the client needs a more detailed inspection of the property, a home inspection, by a professional home inspector, is suggested. The Appraiser has not performed a service on the property in the past 36 months. At the time of inspection, there is no known or visual presence of problematic corrosive drywall used in the construction of the subject property. Adjustments If applicable, a $25 per square foot adjustment has been made to the price of the Comparables, as it appears typical for the area. Age adjustments were applied at $1 per year. This appraisal was done with an "as is" market view, in the current physical condition and subject to the zoning in effect as of the current date of estimated value. I certify that this report conforms to the USPAP practices and regulations and guidelines of the Federal National Mortgage Association. (FNMA). Signatures This report is signed with electronically certified signatures, which cannot be duplicated, forged, altered, or processed in any manner by anyone not intended by legally registered user. The signatures used in this report are verified by USPAP standards and regulations, and conform to current guidelines and practices. TXT4 Produced using ACI software,

25 LOCATION MAP File No.: Property Address: Case No.:

26 PLAT MAP File No.: Property Address: Case No.:

27 FLOORPLAN SKETCH File No.: Property Address: Case No.: ' 12.' rear covered patio 12.' 12.' 57.' Bath Dining Kitchen Laundry Bedroom 25.' 25.' Bedroom Living Room Bath Bedroom 15.' 2.' 3.' 1.' 18.' 1.' 21.' Sketch by Apex IV Comments: AREA CALCULATIONS SUMMARY Code Description Net Size Net Totals GLA1 First Floor P/P rear covered patio LIVING AREA BREAKDOWN Breakdown Subtotals First Floor 24. x x x x Net LIVABLE Area (Rounded) Items (Rounded) 144

28 DIMENSION LIST ADDENDUM File No.: Property Address: Case No.: GROSS BUILDING AREA (GBA) GROSS LIVING AREA (GLA) 1,44 1,44 Area(s) Area % of GLA % of GBA Living Level 1 Level 2 Level 3 Other Basement Garage GBA 1,44 1, Area Measurements Area Type Measurements Factor Total Level 1 Level 2 Level 3 Other Bsmt. Garage 36. x 24. x 1. = 18. x 2. x 1. = 15. x 1. x 1. = 25. x 21. x 1. = X X X X Produced using ACI software, DIM 2927

29 File No.: Property Address: Case No.:

30 File No.: Property Address: Case No.:

31 Aerial View File No.: Property Address: Case No.: