FNC Enterprise Collateral Management

Risk Management Tools, Work Flow Automation, Data for Reporting

October 2010

FNC SolutionsPipes (Technologies)

Data Analytics

Enterprise Software—CMS®

Platform for management of all collateral valuation services and supplemental documentation.

Software as a Service—CHQTM

Standardized platform for small/mid-size lenders using best practices from CMS

Ports – Vendor Interfaces

AppraisalPort®—for appraisers

InspectionPort®—for home inspections and BPOs

TitlePort®—for title providers

Aggregated Services Portal

Types of data

Individual property data and documentation on all valuation services

•Operating and performance data on markets and vendors

•Aggregated market data

•Property specific data

National Collateral Database

Blended public record data, assessors data, recording data and appraisal data

Exception management

Collateral DNA

Stand-alone delivery platform for all FNC analytics—can be integrated with all FNC solutions

Appraisal Score

Appraiser Report

QC/Fraud/Market Tools

Market and property-specific analytics

Information about and assessment of market risk, property risk, the neighborhood, the valuation product and the vendor.

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Begins With Data…

• In 1997/98, we worked with the Appraisal Institute to develop appraisal XML standard

• Once in XML, we can export to any flavor of XML desired by the client. (www.aiready.com).

• We take a document any way and convert to data• AI Ready• PDF (first and second generation)• TIFF files• Paper

• All services returned as data-stream including public record data, tax assessed values, AVMs, BPOs, appraisals, other inspections, and reviews.

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FNC Capital Market Solution

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Tools And Data/Analytics

• Tools provide further analysis of individual collateral• Collateral Investigator—Property Scan, QC

Vigilance, Appraisal Score• Appraiser Report• Market Trends

• Data/Analytics• Aggregated property data on the local market• Mortgage Business Intelligence• Property specific data on similar sales from the

National Collateral Database

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FNC CMS® And Ports—Enterprise System For Collateral Information—Servicing

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OneviewTM

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FNC Vendor Portals

AppraisalPort®—work portal for appraisers

InspectionPort®—work portal for BPO providers

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GAAR® - Automated Appraisal Review

• Types of rules

1. Compliance—automated check for compliance with• USPAP• Fannie Mae/Freddie Mac guidelines• Banking and thrift regulations

2. Risk—automated check for risk issues in the valuation document and external validation via third-party data in the National Collateral Database

3. Client or investor-specific rules4. External data validation

• Monthly audits and reports on performance and rule firings

• Benchmark risk across time and in comparison to peers by market

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Appraisal Score & Appraiser Report

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QC Vigilance/Easy Price Opinion

• QC Vigilance—tool for QC Review

• Extracts data on subject and comparables—then plots them on a map to show location

• Clients can show properties from their portfolio

• Clients can show other sales from the National Collateral Database

• Easy Price Opinion—streamlined valuation tool

• Shows subject and comps from the appraisal and also other recent sales

• Creates grid for analysis• Produces report on results

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Market Activity Report

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Property Scan

• Contains…• Comps• Sales transactions• Plat maps• Satellite photos• Homogeneity score• Property use profile• Property

characteristics

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FNC’s Newest Products

• Mortgage Business Intelligence (MBITM)• Fully interactive information resource

• Compare your own data (in CMS) to peer activity

• FNC Residential Price Index• Uses all properties within a region

• Incorporates spatial relationships

• Can be constructed on smaller geographical regions

• Can be constructed based on property characteristics

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Hedonic Index

• FNC is now providing an Hedonic Index.• The index is based on the blended data in the

National Collateral Database.• The index is published monthly on the 15th of

the month with a one month lag. (July is currently online)

• Each month’s index is based on only that month’s activity (not a three month moving window).

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Data Blending

County Assessor Data

County Recordings Comp from Appraisal

Full Appraisal

National Collateral Database

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Appraisal Concentration in NCD

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Peer Reviewed Journal Article

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WWW.FNCRPI.COM

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MSA Indexes Produced Each Month

AL-Birmingham FL-Orlando  OH-ClevelandAZ-Phoenix FL-Port St. Lucie OH-ColumbusAZ-Tucson FL-Sarasota OK-Oklahoma City

CA-Bakersfield FL-Tampa OR-PortlandCA-Fresno GA-Atlanta PA-NJ-Allentown,Bethlehem,EastonCA-LosAngeles ID-Boise City PA-PhiladelphiaCA-Riverside IL-Chicago PA-PittsburghCA-Sacramento IN-Indianapolis RI-Providence

CA-San Jose MA-Boston TN-MemphisCA-SanDiego MD-Baltimore TN-NashvilleCA-SanFrancisco MI-Detroit TX-Austin

CA-Stockton MN-Minneapolis TX-Dallas CA-Ventura MO-KS-Kansas City TX-El PasoCO-Denver MO-St Louis TX-Houston CT-Hartford NC-Charlotte TX-San AntonioDC-Washington NC-Raleigh UT-Salt Lake

FL-Cape Coral, Fort Myers NV-LasVegas VA-Richmond

FL-Jacksonville NY-NewYork VA-Virginia Beach

FL-Lakeland NY-Rochester WA-SeattleFL-Miami OH-Cincinnati WI-Milwaukee

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FNC’s Residential Price Index National Composite Indexes

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FNC’s Residential Price Index LA – Zip Code Level

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FNC’s Residential Price Index LA – Zip Code Level

91411$550,000

90068$952,000

90008$350,000

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FNC’s Residential Price Index Atlanta – Number of Bedrooms

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30 MSAS

Worst-Preforming MSAs July 10 RPI Jul 10(Jan 2000=100) 4-Year Cumulative Annualized 3 1/2-Year Cumulative Annualized vs. Jan 03

1 Cape Coral-Fort Myers, FL 87.2 (70.0%) (26.0%) 113.8% 28.0% (35.9%)2 Stockton, CA 103.7 (65.9%) (23.6%) 90.0% 23.1% (35.2%)3 Port St Lucie-Fort Pierce, FL 112.3 (58.9%) (19.9%) 106.1% 26.4% (15.3%)4 Las Vegas 95.5 (57.5%) (19.2%) 87.9% 22.7% (20.1%)5 Riverside, CA 132.2 (57.0%) (19.0%) 119.2% 29.0% (5.7%)6 Phoenix 93.6 (55.3%) (18.2%) 78.5% 20.7% (20.2%)7 Bakersfield, CA 135.2 (54.5%) (17.9%) 138.7% 32.6% 8.7%8 Fresno, FL 146.4 (53.4%) (17.4%) 119.0% 28.9% 2.1%9 Orlando, FL 115.0 (50.5%) (16.1%) 87.4% 22.6% (7.2%)

10 Sacramento, CA 140.0 (50.1%) (15.9%) 76.1% 20.1% (12.1%)11 Miami, FL 135.6 (50.0%) (15.9%) 98.1% 24.8% (0.8%)12 Lakeland, FL 106.7 (45.8%) (14.2%) 73.2% 19.5% (6.1%)13 Boise City 104.6 (45.3%) (14.0%) 75.6% 20.0% (3.9%)14 San Francisco, CA 146.1 (43.7%) (13.4%) 64.9% 17.6% (7.2%)15 Tampa, FL 131.2 (41.0%) (12.3%) 74.3% 19.8% 2.9%16 Ventura, CA 171.1 (40.1%) (12.0%) 88.3% 22.8% 12.7%17 Sarasota, FL 142.9 (38.6%) (11.5%) 70.6% 18.9% 4.7%18 San Diego, CA 171.9 (36.5%) (10.7%) 61.0% 16.7% 2.2%19 Los Angeles, CA 191.8 (35.8%) (10.5%) 105.7% 26.4% 32.1%20 Detroit 77.3 (34.9%) (10.2%) 3.1% 1.0% (32.9%)21 San Jose, CA 134.2 (34.9%) (10.2%) 54.2% 15.1% 0.4%22 Tucson 132.1 (32.1%) (9.2%) 66.7% 18.0% 13.2%23 Minneapolis 127.3 (31.1%) (8.9%) 28.3% 8.4% (11.6%)24 Jacksonville, FL 124.9 (30.9%) (8.8%) 49.8% 14.0% 3.6%25 Providence 157.8 (29.5%) (8.4%) 49.3% 13.9% 5.2%26 Washington DC 181.9 (26.7%) (7.5%) 90.1% 23.2% 39.3%27 Atlanta 105.7 (22.4%) (6.1%) 14.9% 4.6% (10.8%)28 New York 180.7 (21.5%) (5.9%) 60.1% 16.5% 25.7%29 Cleveland 103.0 (19.8%) (5.4%) 13.5% 4.2% (8.9%)30 Chicago 121.8 (19.5%) (5.3%) 24.3% 7.3% 0.1%

Average 130.3 (41.8%) (12.6%) 72.8% 16.5% 0.6%

Fallout: Jul 10 vs July 06 Peak Runup: Jul 06 Peak vs. Jan 03

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Sample Of Clients

• American Home Mortgage Servicing

• Aurora Loan Services• Bank of America• BB&T• CapitalOne• Fannie Mae• First Tennessee• ING Direct

• JPMorgan Chase• MetLife• OneWest Bank• Quicken Loans• SunTrust• TCF Financial• Union Bank of California• US Bank• Wells Fargo

Over 50,000 Appraisers and Appraisal Firms Nationwide

For further information, please contact:

sales@fncinc.com888-649-2966