Use of Appraisal Reports by In-House Appraisers or Affiliated Appraisers

In underwriting a loan, provided that the Bank complies with the provisions of the Appraiser Independence Requirements, the Bank may use an appraisal report:

•        Prepared by an appraiser employed by:

∗     The Bank;

∗     An affiliate of the Bank;

∗     An entity that is owned, in whole or in part, by the Bank; or

∗     An entity that owns, in whole or in part, the Bank.

•        Prepared by an appraiser employed, engaged as an independent contractor, or otherwise retained by an appraisal company or any appraisal management company affiliated with, or that owns or is owned, in whole or in part, by the Bank or an affiliate of the Bank.

The Bank also may use in-house staff appraisers to:

•        Order appraisals;

•        Conduct appraisal reviews or other quality control, whether pre-funding or post- funding;

•        Develop, deploy, or use internal Automated Valuation Models; or

•        Prepare appraisals in connection with transactions other than Mortgage origination transactions (e.g., Mortgage workouts), if the Bank complies with the provisions of the Appraiser Independence Requirements.