APPRAISAL OF. the Single Family Residence LOCATED AT: 3617 Tanglewood Ave Rosamond, CA FOR:

Gillins Appraisal, Inc. www.myavappraiser.com 045-7476735 File No. 3010501 APPRAISAL OF the Single Family Residence LOCATED AT: 3617 Tanglewood Ave Rosamond, CA 93560 FOR: Platinum Home Mortgage Corp. ** 42309 10th Street West Lancaster, CA 93534 BORROWER: Lopez-Zermeno & Lopez AS OF: May 4, 2011 APPRAISED VALUE: $104,000 BY: Evan Gillins 4083 West Avenue L, #293, Lancaster, CA 93536 (661) 722-1992/ email- value@myavappraiser.com

Uniform Residential Appraisal Report 045-7476735 File No. 3010501 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 3617 Tanglewood Ave City Rosamond State CA Zip Code 93560 Borrower Lopez-Zermeno & Lopez Owner of Public Record Brown (seller) County Kern Legal Description Lot 111, Tract 5195 Assessor's Parcel # 472-264-04 Tax Year '10-'11 R.E. Taxes $ 1,062 Neighborhood Name Rosamond tract development Map Reference 2763-A-5 Census Tract 015/0058.00 Occupant Owner Tenant X Vacant Special Assessments $ 0.00 PUD HOA $ per year per month Property Rights Appraised X Fee Simple Leasehold Other (describe) Assignment Type X Purchase Transaction Refinance Transaction Other (describe) **(its' successors or assigns) Lender/Client Platinum Home Mortgage Corp. ** Address 42309 10th Street West, Lancaster, CA 93534 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? X Yes No Report data source(s) used, offering price(s), and date(s). Per local Multiple Listing Service data (Listing #1104270), the subject was listed for sale, as a "Probate Sale", on 4/5/11, @ $102,000 (2 days on market), before the current transaction negotiations began. I X 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. The reviewed Purchase Agreement/Contract, which has been fully executed, is standard and typical for transactions in the area. SUBJECT Gillins Appraisal, Inc. CONTRACT NEIGHBORHOOD Contract Price $ 104,000 Date of Contract 4/18/11 Is the property seller the owner of public record? X Yes No Data Source(s) Core Logic-Realist 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? X Yes No If Yes, report the total dollar amount and describe the items to be paid. $4,160 (4%) Per the Sales Contract/Escrow Instructions, the seller paid closing costs is 4% of sales price. As this is within the typical and customary seller concessions amount (up to 6% for both FHA/VA & Conventional financing), the subjects sale price is not affected. Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood Characteristics One-Unit Housing Trends One-Unit Housing Present Land Use % Location Urban X Suburban Rural Property Values X PRICE AGE One-Unit 70 % Built-Up X Over 75% 25-75% Under 25% Demand/Supply Shortage X In Balance Over Supply $(000) (yrs) 2-4 Unit 3 % Growth Rapid X Slow Marketing Time X Under 3 mths 3-6 mths Over 6 mths 60 Low 2 Multi-Family 2 % Neighborhood Boundaries The entire community of Rosamond, on both sides of the Antelope Valley Freeway, 225 High 60 Commercial 5 % which encompasses several square miles, is considered to be the subjects market area (neighborhood). 125 Pred. 20 Other Vacant 20 % Neighborhood Description The area is improved with average to good quality dwellings of mixed ages and sizes. The neighborhood has a balanced mix of residential, multi-residential, and commercial properties. There are currently no areas which are in transition to different uses. Freeway access is within 1mile. The subjects value estimate is below the predominant value for the neighborhood due to its' smaller living area, however, it is not under improved. Market Conditions (including support for the above conclusions) Current marketing conditions are avg/good, with both conventional & FHA/VA financing availability. Per the local MLS, the avg marketing time for a reasonably priced SFR in the area (and the subjects anticipated exposure period) is <45 days. Per local MLS, the typical listing/sales price ratio is 98-102%. (See MC & General Addenda for statistics & detailed explanation of current market conditions and value trends) Dimensions 55 X 100 Area 5,500 SF Shape Rectangular View SFR neighborhood Specific Zoning Classification R-1 (Residential) Zoning Description Single Family Residential 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. SITE Utilities Public Other (describe) Public Other (describe) Off-site Improvements Type Public Private Electricity X Water X Street Asphalt X Gas X Sanitary Sewer X Alley FEMA Special Flood Hazard Area Yes X No FEMA Flood Zone X500 FEMA Map # 060075/06029C4025E FEMA Map Date Sept. 26, 2008 Are the utilities and off-site improvements typical for the market area? 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. The subject is a level interior site situated on a cul-de-sac street. Landscaping and setbacks are typical for the area. There are no adverse site conditions, easements, encroachments, or environmental conditions which are readily apparent. IMPROVEMENTS GENERAL DESCRIPTION FOUNDATION EXTERIOR DESCRIPTION materials/condition INTERIOR materials/condition Units X One One with Accessory Unit X Concrete Slab Crawl Space Foundation Walls Concrete/Good Floors Hrdwd,Crpt/Gd # of Stories One Full Basement Partial Basement Exterior Walls Stucco/Good Walls Drywall/Exc Type X Det. Att. S-Det./End Unit Basement Area N/A sq. ft. Roof Surface ConcreteTile/Good Trim/Finish Average+?Exc X Existing Proposed Under Const. Basement Finish -- % Gutters & Downspouts Bath Floor Tile,Carpet/Gd Design (Style) Conventional Outside Entry/Exit Sump Pump Window Type Alum Slider/Good Bath Wainscot Fiberglass/Good Year Built 1993 (18 years) Evidence of Infestation Storm Sash/Insulated Dual pane windows/g Car Storage Effective Age (Yrs) 15 Dampness Settlement Screens Yes/Good X Driveway # of Cars 2 Attic Heating X FWA HWBB Radiant Amenities WoodStove(s) # Driveway Surface Concrete Drop Stair Stairs Other Fuel Nat Gas X Fireplace(s) # 1 X Fence Wood X Garage # of Cars 2 Floor X Scuttle Cooling X Central Air Conditioning X Patio/Deck 2 X Porch Covered Carport # of Cars Finished Heated Individual Other Pool Other X Att. Det. Built-in Appliances Refrigerator X Range/Oven X Dishwasher X Disposal Microwave Washer/Dryer X Other (describe) Fan/Hood Finished area above grade contains: 6 Rooms 2+D Bedrooms 2 Bath(s) 1,045 Square Feet of Gross Living Area Above Grade Additional features (special energy efficient items, etc.). Granite counter tops, stained wood cabinets, hardwood floor in kitchen, nook, and entry, painted wood trim throughout, new interior paint, built-in hutch in dining room, alarm system, finished garage, average quality landscaping with automatic sprinklers. Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). The subject is a slightly upgraded, average quality dwelling which has been adequately maintained in overall good/excellent condition. 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. Although the subject dwelling is vacant, at the time of the physical inspection, the electricity, gas, and water, had all been turned on, and all related electrical, mechanical, and plumbing systems were tested and functional, and all existing kitchen appliances were in working order. The appraiser visually inspected the attic from the attic scuttle (head and shoulders inspection), which revealed no readily visible deficiencies. Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? X Yes No If No, describe. No measurable physical, functional, or external inadequacies were observed. Freddie Mac Form 70 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com Fannie Mae Form 1004 March 2005 Page 1 of 6 1004_05 062906

SALES COMPARISON APPROACH Gillins Appraisal, Inc. Uniform Residential Appraisal Report There are 12 comparable properties currently offered for sale in the subject neighborhood ranging in price from $ 79,000 to $ 110,000. There are 50 comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ 65,000 to $ 119,900. FEATURE SUBJECT COMPARABLE SALE NO. 1 COMPARABLE SALE NO. 2 COMPARABLE SALE NO. 3 3617 Tanglewood Ave 3636 Mount Lassen Avenue 3718 Arbor Avenue 3649 Brabham Avenue Address Rosamond, CA 93560 Rosamond, CA 93560 Rosamond, CA 93560 Rosamond, CA 93560 Proximity to Subject.5 mile NW (APN:472-352-16).1 mile W (APN:472-271-19).1 mile SE (APN:472-273-02) Sale Price $ 104,000 $ 110,000 $ 95,000 $ 108,000 Sale Price/Gross Liv. Area $ 99.52 sq. ft. $ 80.35 sq. ft. $ 91.26 sq. ft. $ 82.76 sq. ft. Data Source(s) Verification Source(s) Physical Inspection Core Logic- Realist (public records) MLS/ Doc #52417/ Inspection Core Logic- Realist (public records) MLS/ Doc #49064/ Inspection Core Logic- Realist (public records) MLS/ Doc #42271/ Inspection VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition $4,160 (4%) 4/18/11 2763-A-5/Avg Fee Simple 5,500 SF SFR neighborhood Conventional Avg+AvgUpgrds 1993 (18 years) Good/Exc 3.6% Seller conc. Conventional 4/22/11 COE 2763-A-4/Avg Fee Simple 5,663 SF SFR neighborhood Conventional Avg+AvgUpgrds 1995 (16 years) Good/Exc 3% Seller conc. VA 4/14/11 COE 2763-A-5/Avg Fee Simple 6,098 SF SFR neighborhood Conventional Average 1993 (18 years) Good +4,000 +4,000 No seller conc. FHA 3/31/11 COE 2763-A-5/Avg Fee Simple 5,663 SF SFR neighborhood Conventional Average 1994 (17 years) Good/Exc +4,000 Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count 6 2D 2 6 3 2 6 2D 2 6 3 2 Gross Living Area $25 1,045 sq. ft. 1,369 sq. ft. -8,000 1,041 sq. ft. 1,305 sq. ft. -6,500 Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck Average FAU/CAC To code 2 car att garage Cov/Open patios Average FAU/CAC To code 2 car att garage Open patio +1,500 Average FAU/CAC To code 2 car att garage Covered patio +1,000 Average FAU/CAC To code 2 car att garage Cov/Open patios Fireplace 1 fireplace 1 fireplace 1 fireplace 1 fireplace Listing conditions- Probate sale Standard listing Standard listing REO Listing Days on Mkt/% of list 2 dom/101.96% list 22 dom/100% list 27 dom/100% list 6 dom/103.25% list Net Adjustment (Total) + X - $ 6,500 X + - $ 9,000 + X - $ 2,500 Adjusted Sale Price Net Adj. -5.9% Net Adj. 9.5% Net Adj. -2.3% of Comparables Gross Adj. 8.6% $ 103,500 Gross Adj. 9.5% $ 104,000 Gross Adj. 9.7% $ 105,500 I X did did not research the sale or transfer history of the subject property and comparable sales. If not, explain File No. 045-7476735 3010501 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) RealQuest.com 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) RealQuest.com 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 3). 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) 9/2/98 $95,399 Core Logic- Realist updated daily 12/31/01 $114,000 Core Logic- Realist updated daily 6/1/98 $59,000 Core Logic- Realist updated daily 12/17/10 $115,000- Trustees Deed Core Logic- Realist updated daily Analysis of prior sale or transfer history of the subject property and comparable sales Trustees deeds (foreclosure transactions) were recorded on comparables #3 and #5 within the year prior to the current dates of sale. The dollar amounts indicated were the actual outstanding loan amounts as of the date the trustees deeds were recorded. Summary of Sales Comparison Approach. See additional comparables page for comments. RECONCILIATION Indicated Value by Sales Comparison Approach $ 104,000 Indicated Value by: Sales Comparison Approach $ 104,000 Cost Approach (if developed) $ 104,000 Income Approach (if developed) $ 0 Greatest consideration has been given to the market comparison approach as it is most commonly utilized by the buying public. 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: This appraisal is made "AS IS". No repairs are required, and no unstated conditions are assumed. 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 $ May 4, 2011 104,000 as of, which is the date of inspection and the effective date of this appraisal. Freddie Mac Form 70 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com Fannie Mae Form 1004 March 2005 Page 2 of 6 1004_05 062906

SALES COMPARISON APPROACH Gillins Appraisal, Inc. Uniform Residential Appraisal Report FEATURE SUBJECT COMPARABLE SALE NO. 4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO. 6 3617 Tanglewood Ave 3608 Brabham Avenue 2501 Cold Creek Avenue Address Rosamond, CA 93560 Rosamond, CA 93560 Rosamond, CA 93560 Proximity to Subject.1 mile S (APN:472-274-07) 1 mile SE (APN:473-251-11) Sale Price $ 104,000 $ 102,500 $ 94,000 $ Sale Price/Gross Liv. Area $ 99.52 sq. ft. $ 78.54 sq. ft. $ 91.71 sq. ft. $ sq. ft. Data Source(s) Verification Source(s) Physical Inspection Core Logic- Realist (public records) Agent/ MLS #1103107/ Inspection Core Logic- Realist (public records) MLS #1104087/ Inspection VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition $4,160 (4%) 4/18/11 2763-A-5/Avg Fee Simple 5,500 SF SFR neighborhood Conventional Avg+AvgUpgrds 1993 (18 years) Good/Exc No seller conc. Pending sale 4/28/11-Cntrct date 2763-A-5/Avg Fee Simple 5,663 SF SFR neighborhood Conventional Average 1994 (17 years) Good +4,000 +4,000 Active Listing 4/1/11- List date 2763-C-6/Avg Fee Simple 6,534 SF SFR neighborhood Conventional Average 1993 (18 years) Good +4,000 +4,000 Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count 6 2D 2 6 3 2 6 3 2 Gross Living Area $25 1,045 sq. ft. 1,305 sq. ft. -6,500 1,025 sq. ft. sq. ft. Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck Average FAU/CAC To code 2 car att garage Cov/Open patios Average FAU/CAC To code 2 car att garage Cov/Open patios Average FAU/CAC To code 2 car att garage No patio +2,500 Fireplace 1 fireplace 1 fireplace No fireplace +1,500 Listing conditions- Probate sale Short Sale REO Listing Days on Mkt/% of list 2 dom/101.96% list 13 dom/98.55% list 33 days on market Net Adjustment (Total) X + - $ 1,500 X + - $ 12,000 + - $ Adjusted Sale Price Net Adj. 1.5% Net Adj. 12.8% Net Adj. % of Comparables Gross Adj. 14.1% $ 104,000 Gross Adj. 12.8% $ 106,000 Gross Adj. % $ ITEM SUBJECT COMPARABLE SALE NO. 4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO. 6 Date of Prior Sale/Transfer Price of Prior Sale/Transfer Data Source(s) Effective Date of Data Source(s) 9/2/98 $95,399 Core Logic- Realist updated daily 7/8/98 $60,000 Core Logic- Realist updated daily Not available $ Not avail.- Trustees Deed Core Logic- Realist updated daily Summary of Sales Comparison Approach Of the five comparable properties included in this appraisal report, #1, #2, and #3 closed escrow within 35 days of the subjects effective valuation date, and are excellent indicators of current market conditions. All of the comparable properties utilized are located within one mile of the subject, and all were verified through the local Multiple Listing Service and CoreLogic Realist Data System. The days on market indicated in the adjustment grid, for the subject and all of the comparables, are calculated from the dates which the list prices had been last modified. The average marketing time for the sales (subject included) is 14 days on the market, which is within the <90 day "Marketing Time" indicated in the neighborhood section of this appraisal report. The average list price to sales price ratio for the sales (subject included) is 100.75%, which is considered to be consistent with the statistical figure developed in the MC Addendum, and which an excellent indicator of the current market conditions, as described on the addendum page, under the heading "CURRENT MARKET CONDITIONS & VALUE TRENDS". All of the sales utilized were determined to be "arms length transactions", with no atypically unusual or excessive interested-party contributions or concessions (up to 6% for both FHA/VA & Conventional financing is considered to be typical and customary for this region). File No. 045-7476735 3010501 Comparable #4 is a pending transaction, and comparable #5 is a current active listing, both located in the subjects market area. The negotiated sale price for the pending transaction was verified with the office of the listing agent. These comparables are included in compliance with the standard appraisal guideline that at least two active listings (or 1 active listing & 1 pending sale, or 2 pending sales) be included in the adjustment grid. They are also included in order to represent the current market and the upper end of the subjects value range. Due to the 100% average list/sales price ratio indicated in the MC Addendum, which is supported by the sales utilized in this appraisal (as indicated in the above paragraph), a negative active listing adjustment (which would typically be applied in anticipation of a negative list/sales price ratio) is not market supported, therefore is not applied to the active listing. The sales utilized are all located within the same realm of influence as the subject (within the same infrastructure of support facilities and amenities), and are the nearest, most recent, and most comparable, therefore they are considered to be the best available reflection of the current buying/selling public in the subjects market area. Sale #2 is the same floor plan as the subject. Quality ratings, condition ratings, and specific feature details for all of the comparables, are obtained from MLS descriptions and physical inspections. The quality and condition adjustments utilized represent approximately 50-55% of the actual cost differences for each rating (per Marshall & Swift Residential Cost Handbook figures). Living area adjustments are calculated at $25 per square foot, then rounded to the nearest $500. The subjects den is considered to be equal in contributory value to a third bedroom, therefore room count adjustments are not warranted. Adjustments are based on a paired sales analysis, and this appraisers more than 25 years of experience specializing in the subjects specific region. The individual category adjustments are within standard parameters, and the overall net and gross adjustment percentage totals are relatively low for the majority of the comparables. The comparable properties utilized adequately bracket the subject in all categories. The closed sales are given primary consideration. Freddie Mac Form 70 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com Fannie Mae Form 1004 March 2005 1004_05 062906

Gillins Appraisal, Inc. Uniform Residential Appraisal Report File No. 045-7476735 3010501 EXISTING DWELLING INSPECTION REPORT (HUD)- "CERTIFICATION" "The subject property meets, and is in compliance with, FHA Minimum Property Requirements for existing dwellings, as outlined in the HUD Handbooks 4150.2 & 4905.1 (available from HUD ordering desk @ 1-800-767-7468, or online @ www.hud.gov)." As of the subjects effective date of valuation, the status of Evan R. Gillins on the "FHA Roster" is "ACTIVE", and with the California State Office of Real Estate Appraisers (OREA) is "ACTIVE/in GOOD STANDING" as a Certified Residential Real Estate Appraiser. "This Appraisal has been performed in compliance with the Applicable Appraiser Independence Laws and Guidelines." "The Intended User of this appraisal report is the Lender/Client noted in the Subject Section on page #1 of this appraisal report, its' successors or assigns, and HUD/FHA. The Intended Use of this appraisal report is to support the underwriting requirements for an FHA-insured mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser." ADDITIONAL COMMENTS "If this appraisal is digitally signed, the digital signature requires a security password known only to me. No changes or modifications can be made to any portion of the appraisal once it has been digitally signed. The digital signature on this appraisal is an accurate representation of my signature. If this report has a hand applied signature, this comment does not apply." "The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which includes the Uniform Standards of Professional Appraisal Practice." "USPAP CERTIFICATION- Appraisers Three Year Service History" Evan R. Gillins has not performed an appraisal service with regard the the subject property in the three years proceeding this assignment. COST APPROACH TO VALUE (not required by Fannie Mae) 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) Vacant land sales are not available for development of the site value. The site value utilized in the cost approach is developed via the extraction method. COST APPROACH ESTIMATED REPRODUCTION OR X REPLACEMENT COST NEW Source of cost data Marshall & Swift Residential Cost Handbook Quality rating from cost service Average+ Effective date of cost data daily update Comments on Cost Approach (gross living area calculations, depreciation, etc.) See the Sketch/Area Table Addendum for detailed dimensions and calculations. Land to building ratio is typical for the area. Substantial functional depreciation is observed due to the difference between the estimated reproduction cost (depreciated) and market value. OPINION OF SITE VALUE...= $ 20,000 Dwelling 1,045 Sq. Ft. @ $ 95.75... = $ 100,059 Sq. Ft. @ $... = $ Fireplace, Kitchen built-ins, Covered & open patios 8,200 Garage/Carport 476 Sq. Ft. @ $ 16.25... = $ 7,735 Total Estimate of Cost-New...= $ 115,994 Less Physical Functional External Depreciation $23,994 $15,000 $0 = $ ( 38,994) Depreciated Cost of Improvements... = $ "As-is" Value of Site Improvements... = $ 77,000 7,000 PUD INFORMATION INCOME Estimated Remaining Economic Life (HUD and VA only) 50-55 Years INDICATED VALUE BY COST APPROACH... = $ 104,000 INCOME APPROACH TO VALUE (not required by Fannie Mae) Estimated Monthly Market Rent $ Not developed X Gross Rent Multiplier 0 = $ 0 Indicated Value by Income Approach Summary of Income Approach (including support for market rent and GRM) The income approach is not applicable as dwellings in this area are typically owner occupied. 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 an 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 70 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com Fannie Mae Form 1004 March 2005 Page 3 of 6 1004_05 062906

Gillins Appraisal, Inc. Uniform Residential Appraisal Report File No. 045-7476735 3010501 This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project. 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 70 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com Fannie Mae Form 1004 March 2005 Page 4 of 6 1004_05 062906

Gillins Appraisal, Inc. Uniform Residential Appraisal Report File No. 045-7476735 3010501 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 have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, 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. 10. 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. 20. 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. Freddie Mac Form 70 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com Fannie Mae Form 1004 March 2005 Page 5 of 6 1004_05 062906

Gillins Appraisal, Inc. Uniform Residential Appraisal Report File No. 045-7476735 3010501 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). 22. 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 1001, 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 Evan Gillins Company Name Gillins Appraisal, Inc. Company Address 4083 West Avenue L, #293 Lancaster, CA 93536 Telephone Number (661) 722-1992 Email Address value@myavappraiser.com Date of Signature and Report May 10, 2011 Effective Date of Appraisal May 4, 2011 State Certification # AR007293 or State License # or Other (describe) State # State California Expiration Date of Certification or License February 10, 2013 ADDRESS OF PROPERTY APPRAISED 3617 Tanglewood Ave Rosamond, CA 93560 APPRAISED VALUE OF SUBJECT PROPERTY $ LENDER/CLIENT Name Lisa LaFayette Company Name Platinum Home Mortgage Corp. ** Company Address 42309 10th Street West Lancaster, CA 93534 Email Address 104,000 Signature Name Company Name Company Address Telephone Number Email 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 70 March 2005 Produced using ACI software, 800.234.8727 www.aciweb.com Fannie Mae Form 1004 March 2005 Page 6 of 6 1004_05 062906

MARKET RESEARCH & ANALYSIS Gillins Appraisal, Inc. 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, 2009. Property Address 3617 Tanglewood Ave City Rosamond State CA Zip Code 93560 Borrower Lopez-Zermeno & Lopez 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 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 Prior 7 12 Months 29 4.83 16 Prior 4 6 Months 9 3.00 12 Current 3 Months 12 4.00 12 X X X Overall Trend Months of Housing Supply (Total Listings/Ab.Rate) Median Sale & List Price, DOM, Sale/List % 3.31 Prior 7 12 Months 4.00 Prior 4 6 Months 3.00 Current 3 Months X Overall Trend Median Comparable Sale Price Median Comparable Sales Days on Market $89,900 23 $92,000 56 $87,450 29 X X Median Comparable List Price Median Comparable Listings Days on Market $85,000 73 $85,000 81 $88,000 61 X X Median Sale Price as % of List Price 100.00% 100.00% 100.00% X Seller-(developer, builder, etc.)paid financial assistance prevalent? X Yes No X 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.). In the past 12 month period, seller paid contributions for sales of properties which are comparable to the subject have been stable, with as high as 6% of the sales price (for both FHA/VA & Conventional financing) being typical and customary for this region. The search parameters utilized for the statistical data shown above (which are the same search parameters utilized in order to determine the best available comparables for inclusion in the Sales Comparison Approach adjustment grid) include- NEIGHBORHOOD- Refer to the defined boundaries in the neighborhood section of the appraisal report; LIVING AREA- 730 to 1,360 square feet (30% < and > than subject); YEAR BUILT- 1980 to 2010. Are foreclosure sales (REO sales) a factor in the market? X Yes No If yes, explain (including the trends in listings and sales of foreclosed properties). Although foreclosure activity, and the availability of REO properties in the subjects area continues to be steady, the majority of these REO properties are being marketed and sold at or near current market values. Therefore, the effects of REO properties on the subjects value and marketability, are considered to be part of, and have been included within, this appraisal analysis. File No. 045-7476735 3010501 ANALYSIS OF STATISTICAL CHANGES- (See comments below **). Cite data sources for above information. The above information has been derived directly from the local MLS (GAVAR). NOTE- The amount of recent comparable listing and sales activity in the subjects specific region is very limited, therefore the statistical figures noted above are less reliable. However, in order to develop general residential statistics in the region, search parameters (living area and distance) were expanded significantly. 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. Since the 1st quarter of 2009, market activity in the neighborhood has experienced a steady increase. This increasing market activity is clearly evidenced by exceptionally short listing periods (typically 1-60 days) and multiple, competitive offers, on all reasonably priced listings (both REO & non-reo). These multiple competitive offers have begun a trend of negotiated sales prices which are higher than the list prices, which has greatly increased absorption rates, and has decreased the number of active listings. As the availability and pricing of active listings typically represent the upper end of any value range, and generally lead current and future market trends, these recent market factors are strong indications of more stable market activity. For these reasons, based on very recent market statistics, property values in the area are currently considered to be stable. CONDO / CO-OP PROJECTS If the subject is a unit in a condominium or cooperative project, complete the following: 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) Project Name: Prior 7 12 Months Prior 4 6 Months Current 3 Months Overall Trend Are foreclosure sales (REO sales) a factor in the project? Yes No If yes, indicate the number of REO listings and explain the trends in listings and sales of foreclosed properties. ** ANALYSIS OF STATISTICAL CHANGES- As indicated by the above statistics, over the past 12 month period, the total # of active listings, and the months of housing supply, have remained relatively low. This limited availability of active listing inventory has resulted in a slight decrease in the Median Comparable Listing Days on Market, relative stabilization (over the past 12 month period) of both the Median Comparable List and the Median Comparable Sale Prices, and the balancing (remaining at 100%) of the Median Comparable Sales Price as a % of List Price. Taking into consideration that slight numerical changes (both increasing and declining) which are within 5% are considered to be statistically stable, the figures above are good indicators of current market conditions over the past twelve month period. Summarize the above trends and address the impact on the subject unit and project. APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) APPRAISER Signature Name Evan Gillins Company Name Gillins Appraisal, Inc. Company Address 4083 West Avenue L, #293 State License/Certification # AR007293, exp. 2/10/13 State CA Email Address value@myavappraiser.com Signature Name Company Name Company Address State License/Certification # Email Address Freddie Mac Form 71 March 2009 Produced using ACI software, 800.234.8727 www.aciweb.com Fannie Mae Form 1004MC March 2009 Page 1 of 1 1004MC_2009 041709 State

Gillins Appraisal, Inc. CURRENT MARKET CONDITIONS & VALUE TRENDS The following data has been obtained from local MLS statistics. The derived analysis and conclusions are based on this appraisers more than 25 years of appraisal experience, specializing in residential properties in the subjects specific region. (PAST DECLINING MARKET VALUES)- In the 2nd quarter of 2006, the subjects general region began to experienced a strong decline in residential property values. This decline was evidenced by a significant increase in foreclosure activity, an over supply of active listing inventory, slow absorption rates, competitive reductions in list prices, and excessively long marketing times (120 to 180+ days). (TRANSITION FROM PAST DECLINING TO MORE STABLE MARKET VALUES)- Beginning in the 4th quarter of 2008, through the end of the first quarter of 2009, the decline in market values began to slow, and then began to stabilize. This stabilization had been taking place in the subjects specific market area, as evidenced by a more balanced supply of active listing inventory, fewer list price reductions, much lower marketing times (90-180 days on market), and negotiated sales prices which are typically very close to the list prices (98-102%). (EVIDENCE OF CURRENT MARKET STABILITY)- In the 2nd quarter of 2009, market activity began to increase substantially. This increasing market activity is clearly evidenced by exceptionally shorter listing periods (typically 1-60 days) and multiple, highly competitive offers on all reasonably priced listings (both REO & non-reo). These multiple competitive offers have begun a trend of negotiated sales prices which are higher than the list prices, has greatly increased absorption rates, and has significantly decreased the number and availability of active listing inventory. As the availability and pricing of active listings typically represent the upper end of any value range, and generally lead current and future market trends, these recent market factors are strong indications of more stable market activity. Additionally, based on the statistical analysis of market data derived from the local Multiple Listing Service for the past 12 month period, (see the attached Market Conditions Addendum for statistical details), the total # of settled sales, the total # of active listings, and the months of housing supply, have all declined significantly. The absorption rate has remained stable. All of these changing factors are due to the high level of market activity in the first half of 2009, which has resulted in the current limited availability of active listing inventory. This limited availability of active listing inventory has thus resulted in the stabilization of Median Comparable List and Sale prices in the region, which is the reason that property values in the area are currently considered to be stable. COMMENTS CONCERNING AUTOMATED VALUATION MODELS ("AVM"s) Automated Valuation Models" ("AVM"s), such as CoreLogic.com, ValueFinder.com, Realtor.com, Zillow.com, etc., are useful tools for establishing statistical data in general market regions. However, the statistics provided by these "AVM"s do not typically include the most immediately recent transaction data for a specific neighborhood, and do not have the capacity to analyze critical data in categories which have significant effect on property values, particularly specifically defined neighborhoods, buyer/seller circumstances for each transaction, location variances, construction quality, or condition ratings. For this reason, although "AVM"s are effective as a source for general statistics in any region, they are not considered to be reliable sources for statistical data within a specific neighborhood, or value range. The information presented in the above paragraph is a detailed analysis of statistical data derived from the local Multiple Listing Service. The parameters of this analysis included homes which are considered to be specifically comparable to the subject, in as many factors of value as possible. FORECLOSURE ACTIVITY Although foreclosure activity, and the availability of REO properties, in the subjects area continues to be steady, the majority of these REO properties are being marketed and sold at or near current market values. Therefore, the effects of REO properties on the subjects value and marketability, are considered to be part of, and have been included within, this appraisal analysis. However, in limited, atypical situations, these REO properties are marketed and sold substantially below current values, either at auction or in the local MLS. Refer to the comments below for a detailed explanation and analysis of these Below Market Transactions in the area. VANDALIZED PROPERTIES AND BELOW MARKET VALUE TRANSACTIONS There are several listings, pending transactions, and sold properties located in the subjects market area, which initially, do not appear to support the subjects appraised value. However, per the local MLS, most of these properties were either in extremely poor condition (uninhabitable due to vandalism- requiring substantial repairs), or were listed and sold, atypically, below their current market value. The effects of REO properties and "Lender Short Sales" on the subjects value and marketability are considered to be part of, and have been included within, this appraisal analysis. However, there are several (an atypical minority) REO and Lender Short Sale property sellers, which tend to market and sell substantially below current values, either at auction or in the local MLS. Based on current market statistics gathered in the subjects area and price range, it is clearly evident that this minority of listings are associated with marketability difficulty due to bank/seller restrictions, and very slow communication and negotiation processes. Significant monetary penalties to the buyers (for delays which are typically beyond the buyers control) for escrow closings which extent beyond the sellers time frame restrictions, are also a strong negative factor. This lengthy, difficult, frustrating, and often nonsale closing process of purchasing an REO or Lender Short Sale property from these specific banks/owners causes very strong buyer resistance to these listings. Data extracted from Local Multiple Listing Services statistics in the subjects immediate region conclude these properties are are generally listed and sold at approximately 20-25% below current market values. Under the appraisal industry (USPAP) definition of market value ("..under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus...1) buyer and seller are typically motivated;.."), these specific below market listings, pending transactions, and closed sales, do not qualify as, and cannot be considered to be, reasonable representations of fair market values. TXT4 Produced using ACI software, 800.234.8727 www.aciweb.com

FLOORPLAN 34.0 12' 16' 12' Open Patio 12' Covered Patio 12' 45.0' Master Bedroom Bedroom Living Room Dining Room 24.0' 24.0' Bath 11.0' 2.0' Bath 7.0' 2.0' 3.0' Den 8.0' 3.0' Ent. 7.0' 3.0' Cov. Porch Kitchen Nook 9.0' 6' 5.0 24' 22.0' Garage 22.0' 5.0 21.0' 20.0 Sketch by Apex Medina Comments: AREA CALCULATIONS SUMMARY Code Description Net Size Net Totals GLA1 First Floor 1045.0 1045.0 GAR Garage 476.0 476.0 P/P Covered Porch 165.0 Covered Patio 192.0 Open Patio 144.0 501.0 LIVING AREA BREAKDOWN Breakdown Subtotals First Floor 45.0 x 21.0 945.0 2.0 x 11.0 22.0 2.0 x 11.0 22.0 1.0 x 29.0 29.0 3.0 x 9.0 27.0 Net LIVABLE Area (rounded) 1045 5 Items (rounded) 1045 4083 West Avenue L, #293, Lancaster, CA 93536 (661) 722-1992/ email- value@myavappraiser.com

PLAT MAP 4083 West Avenue L, #293, Lancaster, CA 93536 (661) 722-1992/ email- value@myavappraiser.com

LOCATION MAP 4083 West Avenue L, #293, Lancaster, CA 93536 (661) 722-1992/ email- value@myavappraiser.com

FEMA FLOOD MAP 4083 West Avenue L, #293, Lancaster, CA 93536 (661) 722-1992/ email- value@myavappraiser.com

SUBJECT PROPERTY PHOTO ADDENDUM FRONT VIEW OF SUBJECT PROPERTY REAR VIEW OF SUBJECT PROPERTY STREET SCENE

ADDITIONAL SUBJECT PHOTOS WEST SIDE OF SUBJECT DWELLING EAST SIDE OF SUBJECT DWELLING

ADDITIONAL SUBJECT PHOTOS LIVING ROOM DINING ROOM KITCHEN

ADDITIONAL SUBJECT PHOTOS MASTER BEDROOM MASTER BATH SECONDARY BATH

COMPARABLE PROPERTY PHOTO ADDENDUM COMPARABLE SALE #1 3636 Mount Lassen Avenue Rosamond, CA 93560 Sale Date: 4/22/11 COE Sale Price: $ 110,000 COMPARABLE SALE #2 3718 Arbor Avenue Rosamond, CA 93560 Sale Date: 4/14/11 COE Sale Price: $ 95,000 COMPARABLE SALE #3 3649 Brabham Avenue Rosamond, CA 93560 Sale Date: 3/31/11 COE Sale Price: $ 108,000

COMPARABLE PROPERTY PHOTO ADDENDUM COMPARABLE SALE #4 3608 Brabham Avenue Rosamond, CA 93560 Sale Date: 4/28/11-Contract date Sale Price: $ 102,500 COMPARABLE SALE #5 2501 Cold Creek Avenue Rosamond, CA 93560 Sale Date: 4/1/11- List date Sale Price: $ 94,000

APPRAISERS' REAL ESTATE APPRAISER LICENSE ("Certified Residential")- State of California 4083 West Avenue L, #293, Lancaster, CA 93536 (661) 722-1992/ email- value@myavappraiser.com