untitled

LOCATED AT:

FOR:

AS OF:

BY:

Form GA3 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

13254 Silver Oak StTRACT #16744, LOT 62, BOOK 301, PG 45

HESPERIA, CA 923449267

MD MORTGAGE GROUP, INC5030 CAMINO DE LA SIESTA

SAN DIEGO, CA 92108

12/06/2005

KENDLE R. McCALEBB

APPRAISAL OF REAL PROPERTY

Page #1File No. S6030803

INVOICEFROM:

Telephone Number: Fax Number:

TO:

Telephone Number: Fax Number:Alternate Number: E Mail:

INVOICE NUMBER

DATE

REFERENCEInternal Order #:

Lender Case #:

Client File #:

Main File # on form:

Other File # on form:

Federal Tax ID:

Employer ID:

Lender: Client:Purchaser/Borrower:

Property Address:City:

County: State: Zip:Legal Description:

$

DESCRIPTION

FEES AMOUNT

SUBTOTAL

PAYMENTS AMOUNT

Check #: Date: Description:Check #: Date: Description:Check #: Date: Description:

SUBTOTAL

TOTAL DUE

Form NIV5 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODEDiamond Hill Appraisal Service

JOSEPHS APPRAISAL GROUPCA, INC.10981 SAN DIEGO MISSION RD, STE 115SAN DIEGO CA 92108KENDLE R. MCCALEBB

6192835700

MD MORTGAGE GROUP, INC5030 CAMINO DE LA SIESTASAN DIEGO CA 92108ATTN:MICHAEL ZAPKOWSKI

6193983400 6193983429

03/12/2006

S6030803

200170629

APPRAISAL FOR:13254 SILVER OAK, HESPERIA CA

MD MORTGAGE GROUP, INC MICHAEL ZAPKOWSKIBEJARANO13254 Silver Oak StHESPERIASAN BERNARDINO CA 923449267TRACT #16744, LOT 62, BOOK 301, PG 45

APPRAISAL FEE 350.00

350.00

0.00

THANK YOU FOR YOUR PROMPT PAYMENT 350.00

6192837346


Uniform Residential Appraisal Report File #

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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 State Zip CodeBorrower Owner of Public Record CountyLegal DescriptionAssessor's Parcel # Tax Year R.E. Taxes $Neighborhood Name Map Reference Census TractOccupant Owner Tenant Vacant Special Assessments $ PUD HOA $ per year per monthProperty Rights Appraised Fee Simple Leasehold Other (describe)Assignment Type Purchase Transaction Refinance Transaction Other (describe)Lender/Client AddressIs 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 NoReport data source(s) used, offering price(s), and date(s).

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 notperformed.

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 NoIf Yes, report the total dollar amount and describe the items to be paid.

Note: Race and the racial composition of the neighborhood are not appraisal factors.Neighborhood Characteristics

Location Urban Suburban RuralBuiltUp Over 75% 2575% Under 25%Growth Rapid Stable Slow

One Unit Housing TrendsProperty Values Increasing Stable DecliningDemand/Supply Shortage In Balance Over SupplyMarketing Time Under 3 mths 36 mths Over 6 mths

One Unit HousingPRICE$ (000)

AGE(yrs)

LowHighPred.

Present Land Use %OneUnit %24 Unit %MultiFamily %Commercial %Other %

Neighborhood Boundaries

Neighborhood Description

Market Conditions (including support for the above conclusions)

Dimensions Area Shape ViewSpecific Zoning Classification Zoning DescriptionZoning Compliance Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe)Is the highest and best use of subject property as improved (or as proposed per plans and specifications) the present use? Yes No If No, describe

Utilities Public Other (describe) Public Other (describe)ElectricityGas

WaterSanitary Sewer

Off site Improvements Type Public PrivateStreetAlley

FEMA Special Flood Hazard Area Yes No FEMA Flood Zone FEMA Map # FEMA Map DateAre the utilities and offsite improvements typical for the market area? Yes No If No, describeAre there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No If Yes, describe

General DescriptionUnits One One with Accessory Unit# of StoriesType Det. Att. SDet./End Unit

Existing Proposed Under Const.Design (Style)Year BuiltEffective Age (Yrs)

FoundationConcrete Slab Crawl SpaceFull Basement Partial Basement

Basement Area sq.ft.Basement Finish %

Outside Entry/Exit Sump PumpEvidence of Infestation

Dampness Settlement

Exterior Description materials/conditionFoundation WallsExterior WallsRoof SurfaceGutters & DownspoutsWindow TypeStorm Sash/InsulatedScreens

Interior materials/conditionFloorsWallsTrim/FinishBath FloorBath Wainscot

Attic NoneDrop Stair StairsFloor ScuttleFinished Heated

Heating FWA HWBB RadiantOther Fuel

Cooling Central Air ConditioningIndividual Other

AmenitiesFireplace(s) #Patio/DeckPool

Woodstove(s) #FencePorchOther

Car Storage NoneDriveway # of Cars

Driveway SurfaceGarage # of CarsCarport # of CarsAtt. Det. Builtin

Appliances Refrigerator Range/Oven Dishwasher Disposal Microwave Washer/Dryer Other (describe)Finished area above grade contains: Rooms Bedrooms Bath(s) Square Feet of Gross Living Area Above GradeAdditional features (special energy efficient items, etc.).

Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.).

Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes No If Yes, describe

Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? Yes No If No, describe

Page 1 of 6Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005

S6030803

13254 Silver Oak St HESPERIA CA 923449267BEJARANO BEJARANO SAN BERNARDINO

TRACT #16744, LOT 62, BOOK 301, PG 453057271450000 2005 $5,642N/A 4475/G/7 060710100.20

0.00 0.00

MD MORTGAGE GROUP, INC 5030 CAMINO DE LA SIESTA, SAN DIEGO 92108

TITLE/NDC DATA

NO CONTRACT PROVIDED DUE TO THIS TRANSACTION BEING A REFINANCE.

REFI N/A TITLE/NDC DATA

N/A

250K550K450K

NEW3010

85050505BOUNDED ON THE NORTH BY MAIN ST, ON THE SOUTH BY RANCHERO

RD,ON THE EAST BY MAPLE AVE, AND ON THE WEST BY INTERSTATE 15.SUBJECT NEIGHBORHOOD IS COMPRISED OF PREDOMINANT TWO STORY WITH SCATTERED SINGLE STORY

STYLE RESIDENTIAL DWELLINGS. GENERAL APPEAL OF THE SUBJECTS NEIGHBORHOOD AS COMPARED TO COMPETINGNEIGHBORHOODS IN THIS MARKET AREA IS AVERAGE TO GOOD. THE SUBJECTS NEIGHBORHOOD IS IN CONVENIENT PROXIMITY

CURRENT MARKET CONDITIONS ARE STABLE WITH A BALANCE IN SUPPLY ANDDEMAND OF PROPERTIES FOR SALE. TYPICAL MARKETING TIME RANGES FROM ZERO TO THREE MONTHS FOR MOSTCOMPETITIVELY PRICED PROPERTIES. DIVERSE FINANCING OPTIONS ARE AVAILABLE IN THIS MARKET WITH CONVENTIONAL OR

PLEASE RELY ON SURVEY 6,450 APPROX IRREGULAR RESIDENTIALSINGLE FAMILY RESIDENCE R1

PUBLICPUBLIC

PUBLICPUBLIC

ASPHALTNONE

D 06071C6475F 1/17/1997

THERE ARE NO APPARENT ADVERSE EASEMENTS ENCROACHMENTS NOTED, BUT A SURVEY IS RECOMMENDED SINCE A SURVEYCAN CLEARLY DETERMINE IF A PROBLEM EXIST.

TWO

TRAD2004NEW

NONEN/A

NONE NOTEDN

CONCRETE/GOODSTUCCO/GOODSPANISH TILE/GDALUMINUMALUM SLDNG/GDN/ANO/YES

CPT/TILE/GOODDRYWALL /GOODWOOD / GOODTILE/GOODCERAMIC/GOOD

GASY

1COVD

BLOCKCOVERD

CONCRETE2 CAR

10 5 3 2,486TYPICAL ENERGY EFFICIENT ITEMS NOTED IN HOME ALONG WITH SMOKE DETECTORS,

UPGRADED CARPET AND CERAMIC TILE, CEILING FANS, AND FIRE SPRINKLERS.THE SUBJECT HAS INCURRED NORMAL

PHYSICAL DEPRECIATION AND IS RATED IN GOOD CONDITION. QUALITY IS AVERAGE FOR THE SURROUNDING NEIGHBORHOOD.

NO PHYSICAL DEFICIENCIES WERE NOTED DURING THE TIME OF INSPECTION. THE SUBJECT PROPERTY IS A FAIRLEY NEWCONSTRUCTION SHOWING NO SIGNS OF MAJOR WEAR AND TEAR.

THE SUBJECT PROPERTY CONFORMS WITH THE NEIGHBORHOODS UTILITY, STYLE, USE AND CONSTRUCTION.

Diamond Hill Appraisal Service

Form 1004 — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE



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There are comparable properties currently offered for sale in the subject neighborhood ranging in price from $ to $ .There are comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ to $ .

FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3Address

Proximity to SubjectSale Price $ $ $ $Sale Price/Gross Liv. Area $ sq.ft. $ sq.ft. $ sq.ft. $ sq.ft.Data Source(s)Verification Source(s)VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +() $ Adjustment DESCRIPTION +() $ Adjustment DESCRIPTION +() $ AdjustmentSales or FinancingConcessionsDate of Sale/TimeLocationLeasehold/Fee SimpleSiteViewDesign (Style)Quality of ConstructionActual AgeConditionAbove Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. BathsRoom CountGross Living Area sq.ft. sq.ft. sq.ft. sq.ft.Basement & FinishedRooms Below GradeFunctional UtilityHeating/CoolingEnergy Efficient ItemsGarage/CarportPorch/Patio/Deck

Net Adjustment (Total) + + + $ $ $Adjusted Sale Priceof Comparables $ $ $I did did not research the sale or transfer history of the subject property and comparable sales. If not, explain

My research did 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)My research 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)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 #1 COMPARABLE SALE #2 COMPARABLE SALE #3Date of Prior Sale/TransferPrice of Prior Sale/TransferData Source(s)Effective Date of Data Source(s)Analysis of prior sale or transfer history of the subject property and comparable sales

Summary of Sales Comparison Approach

Indicated Value by Sales Comparison Approach $Indicated Value by: Sales Comparison Approach $ Cost Approach (if developed) $ Income Approach (if developed) $

This appraisal is made ''as is'', subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have beencompleted, 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 thefollowing 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 limitingconditions, 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$ , as of , which is the date of inspection and the effective date of this appraisal.


S603080315 339,500 479,00012 375,000 489,900

13254 Silver Oak StHESPERIA, CA 923449267

REFI

RESIDENTIALFEE SIMPLE6,450 APPROXRESIDENTIALTRADAVERAGEA2 EFF/NEWGOOD

10 5 32,486

N/AN/AAVERAGEFAU /CENTRALTYPICAL2 CARGARAGEPORCH/PATIO

Assessor's Parcel # 3057271450000POOL/SPA NONE/NONEFIREPLACE 1FIREPLACE

12/04/2004$329,500TITLE/NDC DATA03/13/06

14442 ARTHURHESPERIA0.22 miles

428,515168.57

COMPETING BUILDERHIDDEN CANYON

CONV80% LTV11/2005RESIDENTIALFEE SIMPLE9,148 SQ.FT 2,700RESIDENTIALTRADITIONALAVERAGENEWGOOD

9 4 32,542

N/AN/AAVERAGEFAU/CENTRALTYPICAL2CAR GARAGEPORCH/PATIONEW CONST.POOL/NONE1FIREPLACE

2,700

425,815

NONENOTED WITHIN 36 MONTHSNDC DATA

13244 SILVER OAKHESPERIA0.12 miles

400,000150.49

TITLE/NDCDOC# 641331

CONV90% LTV08/2005RESIDENTIALFEE SIMPLE6,600 SQ.FTRESIDENTIALMODEL MATCHAVERAGEA1 EFF/NEWGOOD

11 6 32,658

N/AN/AAVERAGEFAU/CENTRALTYPICAL2 CAR GARAGEPORCH / PATIO3057271460000NONE/NONE1FIREPLACE

400,000

NONE NOTEDWITHIN PAST 36 MONTHSMLS/TAX03/13/06

9176 MOSS CREEKHESPERIA0.35 miles

414,500167.68

TITLE/NDCDOC# 650881

CONV85 % LTV09/2005RESIDENTIALFEE SIMPLE6,700 SQ.FTRESIDENTIALTRADITIONALAVERAGEA1 EFF/NEWGOOD

10 5 32,472

N/AN/AAVERAGEFAU/CENTRALTYPICAL2 CAR GARAGEPORCH / PATIO3057271310000NONE/NONE1FIREPLACE

414,500


RESEARCH WAS PERFORMED ON THESUBJECT AND COMPARABLES(SEE BELOW).

SUBJECTS LAST TRANSFER DATE WAS 12/14/04 FOR $329,500.

NATIONAL DATA COLLECTIVE/UNITED TITLE

SUBJECT PROPERTY WAS LAST TRANSFERRED ON 12/04/2004FOR $329,500. NO PRIOR TRANSACTION INFORMATION WAS FOUND IN THE APPRAISERS DATA FOR COMPARABLES SALES WITHINTHE PAST 12 MONTHS.

SEE ATTACHED GENERAL TEXT ADDENDA

425,000425,000 424,864 NOT DVLP

MOST WEIGHT HAS BEEN PLACED ON THE SALES COMPARISON APPROACH. THE COST APPROACH LENDS SUPPORT TO VALUE.THE INCOME APPROACH WAS CONSIDERED BUT NOT INCLUDED.

THE CONCLUSION WAS BASEDUPON THE MARKET CONDITION AS OF THE INSPECTION DATE. SUBJECT WAS APPRAISED IN "ITS AS IS" CONDITION.

425,000 12/06/2005




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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)

ESTIMATED REPRODUCTION OR REPLACEMENT COST NEWSource of cost dataQuality rating from cost service Effective date of cost dataComments on Cost Approach (gross living area calculations, depreciation, etc.)

OPINION OF SITE VALUE =$DWELLING Sq.Ft. @ $ =$

Sq.Ft. @ $ =$=$

Garage/Carport Sq.Ft. @ $ =$Total Estimate of CostNew =$Less Physical Functional ExternalDepreciation =$( )Depreciated Cost of Improvements =$"Asis" Value of Site Improvements =$

INDICATED VALUE BY COST APPROACH =$Estimated Remaining Economic Life (HUD and VA only) YearsINCOME APPROACH TO VALUE (not required by Fannie Mae)

Estimated Monthly Market Rent $ X Gross Rent Multiplier = $ Indicated Value by Income ApproachSummary 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 AttachedProvide 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 ProjectTotal number of phases Total number of units Total number of units soldTotal 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 multidwelling units? Yes No Data SourceAre 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.


S6030803

LAND VALUE WAS NOT USED, THEREFOREABSTRACTED DUE TO THE LIMITED AMOUNT OF RECENT LAND SALES INFORMATION WITHIN THE SUBJECTS IMMEDIATE MARKETAREA. SITE VALUE IS ESTIMATED VIA EXTRACTION METHOD AND LAND TO VALUE RATIOS.

MARSHALL & SWIFTAVG 3/2006

134,2002,486 100.00 248,600

NONE

550 70.00 38,500287,100

1,936 1,936285,164

5,500

424,864

REPLACEMENT COST ARE ABTRACTED FROM RECENT NEWCONSTRUCTION SITE AND FROM DATA COLLECTED FROMBUILDERS, DEVELOPERS AND SUPPLIERS. PHYSICALDEPRECIATION IS CALCULATED BY THE AGE/LIFE METHOD. SITEVALUE IS ESTIMATED FROM LAND PRICES BASED ON LAND SOLDIN THE SUBJECTS LOCAL MARKET AREA. ESTIMATED REMAININGECONOMIC LIFE=6065 YEARS. SEE SKETCH CALCULATION AND

70

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This report form is designed to report an appraisal of a oneunit property or a oneunit 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 amanufactured 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 intendeduse, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser mayexpand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisalassignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that donot constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser’scontinuing 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 thereporting requirements of this appraisal report form, including the following definition of market value, statement ofassumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visualinspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of thecomparable 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 thesubject 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 openmarket under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assumingthe price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date andthe passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) bothparties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) areasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in termsof financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property soldunaffected 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 arenecessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs arereadily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financingadjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutionallender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanicaldollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market’sreaction to the financing or concessions based on the appraiser’s judgment.

STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser’s certification in this report issubject 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 titleto it, except for information that he or she became aware of during the research involved in performing this appraisal. Theappraiser 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 determinationof 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 anidentified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express orimplied, 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, thepresence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he orshe became aware of during the research involved in performing the appraisal. Unless otherwise stated in this appraisalreport, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of theproperty (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 suchconditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any suchconditions 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 asan 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 satisfactorycompletion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property willbe performed in a professional manner.


S6030803




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 inthis appraisal report.

2. I performed a complete visual inspection of the interior and exterior areas of the subject property. I reported the conditionof the improvements in factual, specific terms. I identified and reported the physical deficiencies that could affect thelivability, soundness, or structural integrity of the property.

3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional AppraisalPractice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were inplace 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 salescomparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approachfor this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not developthem, 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 forsale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subjectproperty 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 priorto 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 thathas 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 subjectproperty 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 inthe 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 listingservices, 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 fromreliable 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, subjectproperty, and the proximity of the subject property to adverse influences in the development of my opinion of market value. Ihave noted in this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, thepresence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of thesubject property or that I became aware of during the research involved in performing this appraisal. I have considered theseadverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value andmarketability of the subject property.

15. I have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, allstatements 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, whichare 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 orprospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially orcompletely, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, maritalstatus, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of thepresent 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 notconditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) apredetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause ofany party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pendingmortgage loan application).

19. I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If Irelied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisalor the preparation of this appraisal report, I have named such individual(s) and disclosed the specific tasks performed in thisappraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to makea change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and I will take noresponsibility for it.

20. I identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization thatordered and will receive this appraisal report.


S6030803




21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of theborrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; othersecondary 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 toobtain the appraiser’s or supervisory appraiser’s (if applicable) consent. Such consent must be obtained before this appraisalreport may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, publicrelations, 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 certainlaws and regulations. Further, I am also subject to the provisions of the Uniform Standards of Professional Appraisal Practicethat 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, mortgageinsurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as partof 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 aredefined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of thisappraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable andvalid 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/orcriminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United StatesCode, 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’sanalysis, 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 subcontractor or an employee of the supervisory appraiser (or theappraisal 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 andpromulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisalreport was prepared.

5. If this appraisal report was transmitted as an ''electronic record'' containing my ''electronic signature,'' as those terms aredefined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of thisappraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable andvalid as if a paper version of this appraisal report were delivered containing my original hand written signature.

APPRAISER

SignatureNameCompany NameCompany Address

Telephone NumberEmail AddressDate of Signature and ReportEffective Date of AppraisalState Certification #or State License #or Other (describe) State #StateExpiration Date of Certification or License

ADDRESS OF PROPERTY APPRAISED

APPRAISED VALUE OF SUBJECT PROPERTY $LENDER/CLIENTNameCompany NameCompany Address

Email Address

SUPERVISORY APPRAISER (ONLY IF REQUIRED)

SignatureNameCompany NameCompany Address

Telephone NumberEmail AddressDate of SignatureState Certification #or State License #StateExpiration Date of Certification or License

SUBJECT PROPERTY

Did not inspect subject propertyDid inspect exterior of subject property from streetDate of InspectionDid inspect interior and exterior of subject propertyDate of Inspection

COMPARABLE SALES

Did not inspect exterior of comparable sales from streetDid inspect exterior of comparable sales from streetDate of Inspection


S6030803

KENDLE R. McCALEBB

KENDLE R. McCALEBBJOSEPHS APPRAISAL GROUP, CAINC

10981 SAN DIEGO MISSION RD, SAN DIEGOCA 92108

619283[email protected]

March 13, 200612/06/2005

AL031424

CANOVEMBER 30,2006


425,000

MICHAEL ZAPKOWSKIMD MORTGAGE GROUP, INC

5030 CAMINO DE LA SIESTA, SAN DIEGO92108




SALE

S C

OM

PA

RIS

ON

APP

RO

AC

HSA

LE H

ISTO

RY

AN

ALY

SIS

/ CO

MM

ENTS

FEATURE SUBJECT COMPARABLE SALE # COMPARABLE SALE # COMPARABLE SALE #Address

Proximity to SubjectSale Price $ $ $ $Sale Price/Gross Liv. Area $ sq.ft. $ sq.ft. $ sq.ft. $ sq.ft.Data Source(s)Verification Source(s)VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +() $ Adjustment DESCRIPTION +() $ Adjustment DESCRIPTION +() $ AdjustmentSales or FinancingConcessionsDate of Sale/TimeLocationLeasehold/Fee SimpleSiteViewDesign (Style)Quality of ConstructionActual AgeConditionAbove Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. BathsRoom CountGross Living Area sq.ft. sq.ft. sq.ft. sq.ft.Basement & FinishedRooms Below GradeFunctional UtilityHeating/CoolingEnergy Efficient ItemsGarage/CarportPorch/Patio/Deck

Net Adjustment (Total) + + + $ $ $Adjusted Sale Priceof Comparables $ $ $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 # COMPARABLE SALE # COMPARABLE SALE #Date of Prior Sale/TransferPrice of Prior Sale/TransferData Source(s)Effective Date of Data Source(s)Analysis of prior sale or transfer history of the subject property and comparable sales

Analysis/Comments

Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005

S6030803


REFI

RESIDENTIALFEE SIMPLE6,450 APPROXRESIDENTIALTRADAVERAGEA2 EFF/NEWGOOD

10 5 32,486

N/AN/AAVERAGEFAU /CENTRALTYPICAL2 CARGARAGEPORCH/PATIO

Assessor's Parcel # 3057271450000POOL/SPA NONE/NONEFIREPLACE 1FIREPLACE

12/04/2004$329,500TITLE/NDC DATA03/13/06

13276 LONG MEADOWHESPERIA0.83 miles

415,000156.13

TITLE/NDCDOC#703323

CONV80% LTV09/2005RESIDENTIALFEE SIMPLE6,200 SQ.FTRESIDENTIALMODEL MATCHAVERAGEA1 EFF/NEWGOOD

11 6 32,658

N/AN/AAVERAGEFAU / CENTRALTYPICAL2CAR GARAGEPORCH / PATIO3057271070000NONE/NONE1FIREPLACE

415,000


0 0

4 5 6

4 5 6

Form 1004.(AC) — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE


Borrower/ClientProperty AddressCityLender

County State Zip Code

Form PIC3x5.SR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

Subject Photo PageBEJARANO13254 Silver Oak St

HESPERIA SAN BERNARDINO CA 923449267MD MORTGAGE GROUP, INC

Subject Front

Sales PriceGross Living AreaTotal RoomsTotal BedroomsTotal BathroomsLocationViewSiteQualityAge

13254 Silver Oak StREFI2,4861053RESIDENTIALRESIDENTIAL6,450 APPROXAVERAGEA2 EFF/NEW

Subject Rear

Subject Street




Form PIC3x5.SI — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

Subject Interior Photo PageBEJARANO13254 Silver Oak St


Subject Interior

Sales PriceGross Living AreaTotal RoomsTotal BedroomsTotal BathroomsLocationViewSiteQualityAge

13254 Silver Oak StREFI2,4861053RESIDENTIALRESIDENTIAL6,450 APPROXAVERAGEA2 EFF/NEW

Subject Interior

Subject Interior




Form PIC3x5.CR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

Comparable Photo PageBEJARANO13254 Silver Oak St


Comparable 1

Prox. to SubjectSale PriceGross Living AreaTotal RoomsTotal BedroomsTotal BathroomsLocationViewSiteQualityAge

14442 ARTHUR0.22 miles428,5152,542943RESIDENTIALRESIDENTIAL9,148 SQ.FTAVERAGENEW

Comparable 2


13244 SILVER OAK0.12 miles400,0002,6581163RESIDENTIALRESIDENTIAL6,600 SQ.FTAVERAGEA1 EFF/NEW

Comparable 3


9176 MOSS CREEK0.35 miles414,5002,4721053RESIDENTIALRESIDENTIAL6,700 SQ.FTAVERAGEA1 EFF/NEW




Form PIC3x5.CR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

Comparable Photo PageBEJARANO13254 Silver Oak St


Comparable 4


13276 LONG MEADOW0.83 miles415,0002,6581163RESIDENTIALRESIDENTIAL6,200 SQ.FTAVERAGEA1 EFF/NEW

Comparable 5


Comparable 6



NOTICE: THIS NOTICE MUST REMAIN WITH THIS APPRAISAL IN ORDER FOR THE APPRAISAL TO BE CONSIDEREDVALID. REMOVAL OF THIS NOTICE VOIDS THIS APPRAISAL, OPINIONS OF VALUE CONTAINED WITHIN THEAPPRAISAL REPORT AND ALL OTHER ANALYSIS OR CONCLUSIONS MADE BY THE APPRAISER(S).

DEFINITIONTHE SCOPE OF THE APPRAISAL IS DEFINED AS A DESCRIPTION OF THE EXTENT AND COMPREHENSIVENESS OF THEFOLLOWING: (1) THE APPRAISAL (2) THE REPORT (3) THE DATA COLLECTION, AND (4) THE VERIFICATION OF DATA.

THE COMPREHENSIVENESS AND EXTENTTHE COMPREHENSIVENESS AND EXTENT OF THE APPRAISAL AND THE REPORT ARE GOVERNED BY THE FOLLOWING FOURENTITIES: (1) APPRAISAL FOUNDATION REQUIREMENTS (2) FEDERAL NATIONAL MORTGAGE (FNMA) GUIDELINES (3) THELENDER’S ADDITIONAL REQUIREMENTS (WHEN APPROPRIATE), AND (4) STANDARDS OF PROFESSIONAL PRACTICE ANDCONDUCT OF THE SOCIETY OF REAL ESTATE APPRAISERS.

HIGHEST AND BEST USETHE HIGHEST AND BEST USE OF A SITE IS THAT USE, AMONG THE VARIOUS LEGALLY PERMISSIBLE USES, THAT SUPPORTSTHE HIGHEST PRESENT VALUE AS OF THE EFFECTIVE DATE OF THE APPRAISAL. HIGHEST AND BEST USE IN THE CONTEXTOF MARKET VALUE IS THE MOST PROBABLE USE.

DATA COLLECTIONTHE PRIMARY DATA SOURCES FOR THE SUBJECT PROPERTY INCLUDE THE FOLLOWING: (1) PERSONAL INSPECTION, (2)REPRODUCTION OF THE COUNTY ASSESSOR’S RECORDS, (3) OTHER GOVERNMENTAL AGENCIES (IF APPLICABLE), AND (4)THE OWNER AND OR OTHER KNOWLEDGEABLE PERSONS (IF APPLICABLE).

THE PRIMARY DATA SOURCES FOR COMPARABLE SALES AND RENTALS ARE AS FOLLOWS: (1) MULTIPLE LISTING SERVICEOF THE LOCAL REALTY BOARDS (MLS), (2) CALIFORNIA MARKET DATA COOPERATIVE (CMDC), AND (3) REPRODUCTIONS OFTHE COUNTY ASSESSOR’S RECORDS. THE FACTORS FOR "REPRODUCTION COST NEW" WERE OBTAINED FROM MARSHALL &SWIFT RESIDENTIAL COST HANDBOOK".

THE EFFECTIVE AGE AND REMAINING ECONOMIC LIFE WERE ESTIMATED AFTER INSPECTING THE SUBJECT PROPERTY ANDTHE COMPARABLE SALES. PHYSICAL DEPRECIATION WAS ESTIMATED BY THE AGELIFE METHOD. DATA, OBTAINED FROMTHE ABOVE SOURCES, WAS THEN ANALYZED, CORRELATED, AND RECONCILED INTO THE FINAL ESTIMATE OF VALUE.

MARKET EXPOSURE TIME MAY BE DEFINED AS FOLLOWS: THE ESTIMATED LENGTH OF TIME THE PROPERTY INTEREST BEINGAPPRAISED WOULD HAVE BEEN OFFERED ON THE MARKET PRIOR TO THE HYPOTHETICAL CONSUMMATION OF A SALE ATMARKET VALUE ON THE EFFECTIVE DATE OF THE APPRAISAL; A RETROSPECTIVE ESTIMATE BASED UPON AN ANALYSIS OFPAST EVENTS ASSUMING A COMPETITIVE AND OPEN MARKET.

VERIFICATIONTHE PRIMARY VERIFICATION, THAT THE COMPARABLES HAVE CLOSED AND RECORDED, ARE PUBLIC RECORDS. CUSTOMERSERVICE OF VARIOUS TITLE COMPANIES ARE UTILIZED. THESE SOURCES PROVIDE (FROM PUBLIC RECORDS) THETRANSACTION PRICE AND CONCURRENT ENCUMBRANCES.

OBJECTIVETHE OBJECTIVE OF THIS APPRAISAL ASSIGNMENT IS TO SATISFY THE REQUIREMENTS OF BOTH THE PURPOSE (ESTIMATEMARKET VALUE) AND FUNCTION (SECURITY FOR A PURPOSED LOAN) OF THE REPORT. THEREFORE, IN THE APPRAISER’SOPINION, THE SCOPE OF THIS ASSIGNMENT WAS ADEQUATE FOR BOTH THE PURPOSE AND FUNCTION OF THE REPORT.

INTENDED USE OF THE APPRAISALTHE INTENDED USE/PURPOSE OF THE APPRAISAL IS TO AID A LENDER/CLIENT IN IT'S LOAN DECISION MAKING ANDUNDERWRITING PROCESSES REGUARDING THE SECURITY OF IT'S LOANS.

INTENDED USERS OF THE APPRAISALTHIS APPRAISAL REPORT IS INTENDED FOR USE BY ONLY THE LENDER/CLIENT NAMED ON PAGE 1 OF THE URAR REPORT ANDTHAT LENDER/CLIENT'S OWN INTERNAL APPRAISAL DEPARTMENT, UNDERWRITERS AND LOAN OFFICERS, AS WELL AS BYPOSSIBLE PROSPECTIVE SECONDARY MARKET INVESTORS.

PURPOSE OF THE APPRAISALTHE PURPOSE OF THE APPRAISAL IS TO ESTIMATE MARKET VALUE. THE DEFINITION OF MARKET VALUE IS CONTAINED ONFHLMC FORM #439, WHICH IS ATTACHED.

File No.Borrower/ClientProperty AddressCity County State Zip CodeLender

Form TADD — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

S6030803BEJARANO13254 Silver Oak St



NOTE TO THE UNDERWRITER/APPRAISER REVIEWER:THERE WERE SEVERAL ERRORS ON THE APPRAISAL REPORT WHICH WERE SOFTWARE ISSUES FOUND ANDCORRECTED BY WINTOTAL TECHNICAL SUPPORT. THE ERRORS MENTIONED IN THE APPRAISAL CONDITIONSWERE IN FACT SOFTWARE ISSUES WHICH INCORPORATED TWO APPRAISAL REPORTS INTO ONE, PROVIDINGINFORMATION FROM EACH. PLEASE ALLOW MY SINCERE APOLOGIES, AND UNDERSTAND THAT THESE TYPES OFERRORS SHOULD NOT HAPPEN IN THE FUTURE. PLEASE REVIEW THE APPRAISAL IN IT'S CORRECT FORM, AND IFANY QUESTIONS PLEASE CONTACT THE OFFICE DIRECTLY.

COMMENTS ON SALES COMPARISON:ALL SALES USED ARE CLOSED SALES WHICH HAVE SOLD WITHIN THE FANNIE MAE GUIDELINES OF 12 MONTHS.THE DATES SHOWN IN THE MARKET GRID ARE CLOSED DATES ACCORDING TO THE BUILDERS, AND NDC DATASOURCE. THIS SALE IS CONSIDERED TO BE REFLECTIVE OF CURRENT MARKET CONDITIONS. SALE #'S 1 AND 4WAS ADDED TO SHOW VALUES FROM NEARBY COMPETING BUILDERS. SITE SQUARE FOOTAGE WAS ADJUSTED@ $1.00 PSF (ROUNDED +/).

THE APPRAISER IS NOT AWARE OF ANY PERSONAL PROPERTY, FIXTURES, OR INTANGIBLE ITEMS WHICH WERECONSIDERED IN THE FINAL VALUE ESTIMATE.

THE SUBJECT PHOTOS AND COMPARABLES CONTAINED IN THIS APPRAISAL ARE ORIGINAL PHOTOGRAPHS TAKENAND PROCESSED ELECTRONICALLY, HOWEVER DUE TO OCCASIONAL CAMERA MALFUNCTIONS, THERE MAY BEPHOTOS USED FROM THE MULTIPLE LISTING SERVICE TAKING NOTE THAT EACH COMPARABLE SALE USED FROMTHE MULTIPLE LISTING SERVICE WAS IN FACT OBSERVED WITHSTANDING, AND IN PLACE AT THE TIME OFINSPECTION.

THE APPRAISERS DATA SOURCES USED TO AID IN THE APPRAISAL PROCESS ARE: UNITED TITLE COMPANY ANDNATIONAL DATA COLLECTION

ELECTRONIC SIGNATURETHE ELECTRONIC SIGNATURE IN THE REPORT IS SECURED BY A PASSWORD, WHICH INSURES THEAUTHENTICITY, WHICH CAN ONLY BE ALTERED BY THE SIGNING APPRAISER. IF THERE SHOULD BE AHANDWRITTEN SIGNATURE, CONSIDER THIS REPORT NULL AND VOID.

File No.Borrower/ClientProperty AddressCity County State Zip CodeLender

Form TADD — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

S6030803BEJARANO13254 Silver Oak St



FIRREA / USPAP ADDENDUM

BorrowerProperty AddressCity County State Zip CodeLender/ClientPurpose

Scope

Intended Use / Intended User

History of PropertyCurrent listing information:

Prior sale:

Exposure Time / Marketing Time

Personal (nonrealty) Transfers

Additional Comments

Certification Supplement1. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or an approval of a loan.2. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value

estimate, the attainment of a stipulated result or the occurrence of a subsequent event.

Appraiser(s):

Effective date / Report date:

Supervisory Appraiser(s):

Effective date / Report date:

Form FUA — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

Diamond Hill Appraisal Service

BEJARANO13254 Silver Oak St


THE PRIMARY PURPOSE OF THIS REPORT IS TO ESTIMATE MARKET VALUE OF THE IDENTIFIED.

THE SALES DATA IN THE REPORT HAVE BEEN VERIFIED THROUGH EITHER PUBLIC RECORDS, MLS DATA, BUILDERS AND LOCALBROKERS (WHEN AVAILABLE)

THE INTENDED USE IS FOR LENDING PURPOSES, THEIR INSTITUTIONS AND/OR ASSIGNS. NO OTHER USE FOR THIS APPRAISAL ISWARRENTED.

THE SUBJECT HAS NOT CHANGED OWNERSHIP WITHIN THE PAST 36 MONTHS.

NOT KNOWN IN THE PAST 36 MONTHS

THE ESTIMATED MARKETING TIME FOR THE SUBJECT IS 3 TO 6 MONTHS. THE ESTIMATED EXPOSURE TIME IS ALSO 3 TO 6MONTHS.

NO VALUE WAS GIVEN TO PERSONAL PROPERTY ITEMS ON THIS REPORT.

APPRAISER HAS NO INTEREST IN THE SUBJECT PROPERTY OR IN THE PARTIES INVOLVED IN THIS TRANSACTION.

DIAMOND HILL APPRAISAL SERVICE (562) 7536555

KENDLE R. McCALEBB12/06/2005


DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditionsrequisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in thisdefinition 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 aretypically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowedfor 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 pricerepresents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated withthe sale.

* Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessaryfor those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiablesince the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to thecomparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in theproperty or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concessionbut the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on theappraiser's judgement.

STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION

CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the followingconditions:

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. The appraiser assumes thatthe title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsibleownership.

2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assistthe reader of the report 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 notedin the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makesno 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 doso have been made beforehand.

5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. Theseseparate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used.

6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxicsubstances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performingthe appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property oradverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, andhas assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. Theappraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether suchconditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as anenvironmental assessment of the property.

7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to bereliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by otherparties.

8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice.

9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, oralterations on the assumption that completion of the improvements will be performed in a workmanlike manner.

10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report(including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisalorganizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgageinsurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentalityof the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to datacollection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must alsobe obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media.

Freddie Mac Form 439 693 Fannie Mae Form 1004B 693Page 1 of 2

Form ACR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODEDiamond Hill Appraisal Service


APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that:

1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject propertyfor consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significantvariation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reducethe adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have madea positive adjustment to increase the adjusted sales price of the comparable.

2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have notknowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in theappraisal report are true and correct.

3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingentand limiting conditions specified in this form.

4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias withrespect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal reporton the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the presentowners or occupants of the properties in the vicinity of the subject property.

5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing thisappraisal is contingent on the appraised value of the property.

6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate,the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. Idid not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan.

7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the AppraisalStandards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of thoseStandards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market valueand the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in thereconciliation section.

8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report.I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediatevicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent thatI had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property.

9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professionalassistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) anddisclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to performthe tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will takeno responsibility for it.

SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that:I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser,agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report.

ADDRESS OF PROPERTY APPRAISED:

APPRAISER: SUPERVISORY APPRAISER (only if required):

Signature: Signature:Name: Name:Date Signed: Date Signed:State Certification #: State Certification #:or State License #: or State License #:State: State:Expiration Date of Certification or License: Expiration Date of Certification or License:

Did Did Not Inspect Property

Freddie Mac Form 439 693 Fannie Mae Form 1004B 693Page 2 of 2

Form ACR — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

13254 Silver Oak St, HESPERIA, CA 923449267

KENDLE R. McCALEBBMarch 13, 2006

AL031424CA

NOVEMBER 30,2006


Form SCA — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE




Form SKT.BldSkI — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

Building Sketch (Page 1)BEJARANO13254 Silver Oak St


Comments:

AREA CALCULATIONS SUMMARYCode Description Size Net TotalsGLA1 First Floor 1194.00

SECOND FLOOR 1292.00

GAR

2486.00

Garage 550.00 550.00

TOTAL LIVABLE (rounded) 2486

Breakdown SubtotalsLIVING AREA BREAKDOWN

First Floor 23.0 x 38.0 874.00

16.0 x 20.0 320.00SECOND FLOOR

34.0 x 38.0 1292.00

3 Calculations Total (rounded) 2486

Sketch by Apex IV™

23.0

'38.0'

43.0

'

16.0'

34.0

'

38.0'

34.0

'

38.0'25

.0'

22.0'

LIV

ING

RO

OM

DIN

ING

RO

OM

FAMILY ROOMKITCHEN

BA

TH

BREAKFAST

BEDROOM

BEDROOM

BA

TH

MAIN BEDROOM MAINBATH

DEN

LAUNDRY

BEDROOM




Form MAP.LOC — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

Location MapBEJARANO13254 Silver Oak St



untitled

Documents

appraisal fee

appraisal factors

windows appraisal software

summary appraisal report

date of contract

subject property

la siestasan diego ca

client file