|Q-S&C\ PL STATE OF FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BOARD FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, Vv. CASE NO. 2009024438 JOHN ROBERT AVRITT, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against John Robert Avritt (“Respondent"), and alleges: ESSENTIAL ALLEGATIONS OF MATERIAL FACT 1. Petitioner is a state government licensing and regulatory agency charged with the responsibility and duty to prosecute Administrative Complaints pursuant to the laws of the State of Florida, including Section 20.165 and Chapters 120, 455 and 475 of the Florida Statutes, and the rules promulgated thereunder. 2. Respondent is currently a Florida state certified residential real estate appraiser having been issued license 6135 in accordance with Chapter 475 Part II of the Florida Statutes. 3. The last license the State issued to Respondent was as an active state certified residential real estate appraiser at 204 H:\FREAB\avritt.doc I FDBPR v. John Robert Avritt Case No. 2009024438 Administrative Complaint North Reus Street, Pensacola, FL 32502. 4. On or about April 7, 2006, Respondent and a supervisor, Joshua Evan Bryant (Bryant), developed and communicated an appraisal report (Report) on a property commonly known as 9016 Larker Woods Road, Navarre, Florida 32502 (Subject Property), valuing the Subject Property at $180,000. 5. The stated purpose of the Report was for a refinance by the owner. 6. The Report was ordered by Pete Ikier, an employee of the client, Advance Mortgage & Investment, 25 W. Cedar Street, Suite 312, Pensacola, Florida. 7. A copy of the Report as obtained from the work file of the Respondent is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 8. Petitioner received a complaint from a lender which had commissioned a review appraisal that valued the Subject Property significantly less using different Comparable Sales and which noted other alleged improprieties. 9. The lender's copy of the Report supplied with the complaint differs from Exhibit 1 in that the Appraiser and Supervisory Appraiser’s Certification signature page lists the name of the client (individual) as “Matt Wheatley,” while Exhibit 1 H:\FREAB\avritt.doc . 2 FDBPR v. John Robert Avritt Case No. 2009024438 Administrative Complaint lists the client (individual) name as “Pete.” A copy of that signature page is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. 10. Further, Exhibit 1 contains 2 Addendum pages not found in complainant’s copy, one dealing with “Final Reconciliations” and “Conditions of Appraisal,” and the other “per lender’s request” dealing with an alleged increase in value of the property since an earlier sale in 2006. 11. Respondent was asked to provide a complete copy of the Subject Property work file and complied by submitting documents on more than one occasion. Respondent failed to provide a copy of the Report as provided to the client (and ultimately to the lender) with the discrepancies noted above, failed to maintain copies of Marshall and Swift documentation to support the valuations in the Cost Approach section of the Report, and failed to maintain contemporaneously obtained documentation from local builders costs, supplying Petitioner's investigator with documentation printed out in 2009. 12. Respondent committed the following errors or omissions in the Report: A) Respondent listed the “year built” for the Subject Property as 1975, despite having an MLS printout in the work file H:AFREAB\awritt.doc 3 FDBPR v. John Robert Avritt Case No. 2009024438 Administrative Complaint (a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 3) showing a year built of 1983. Respondent later provided Petitioner's investigator with a different MLS printout (a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 4) showing the Subject Property structure having been moved to its current location in 1983 and its year built being unknown, and had no documentation from public records sources to show a year built date; B) Respondent disclosed a January 13, 2006 prior sale of the Subject Property for $132,500 but failed to analyze that sale or the reason for the significant increase in value in less than three months against the $180,000 valuation as of the effective date of the Report; Cc) Respondent failed to disclose or analyze the listing history of the Subject Property, despite having the MLS printout in file showing a listing of $145,000 prior to the January 13, 2006 sale for $132,500; D) Respondent misidentified the construction of Comparable Sale 2 as “vinyl” when it was concrete block construction; and E) Respondent misidentified the construction of Comparable Sale 3 as “vinyl” when the only documentation in the Respondent’s H:AFREAB\avritt.doc 4 FDBPR v. John Robert Avritt Case No. 2009024438 Administrative Complaint work file for Comparable Sale 3’s construction stated it was “foundation off grade” and Respondent listed only MLS and public records as data sources for Comparable Sale 3. 13. Respondent’s written response to the complaint is attached hereto and incorporated herein as Administrative Complaint Exhibit 5. 14. Respondent, in developing and communicating the Report, failed to exercise reasonable diligence in adhering to the professional appraisal standards set forth in the Uniform Standards of Professional Appraisal Practice applicable at the time of the Report. 15. Respondent falsely certified to the intended user that he had complied with the Uniform Standards of Professional Appraisal Practice applicable at the time of the Report. COUNT ONE Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically the Conduct Section of the Ethics Rule, or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. H:\FREAB\avritt.doc 5 FDBPR v. John Robert Avritt Case No. 20090244338 Administrative Complaint COUNT TWO Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically the Record Keeping Section of the Ethics Rule, or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT THREE Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-1(a) and (b), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT FOUR Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-4(b) (ii), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT FIVE Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, H:\FREAB\avritt.doc 6 FDBPR v. John Robert Avritt Case No. 2009024438 Administrative Complaint specifically specifically Standards Rule 1-5(a) and (b), or other provision of the Uniform Standards of Professional appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT SIX Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 2-1(a) and (b), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT SEVEN Based upon the foregoing, Respondent is guilty of failure to retain records for at least five years of any contracts engaging the appraiser’s services, appraisal reports, and supporting data assembled and formulated by the appraiser in preparing appraisal reports in violation of Section 475.629, Florida Statutes, and, therefore, in violation of Section 475.624(4), Florida Statutes. COUNT EIGHT Based upon the foregoing, Respondent is guilty of breaching an implied contract in violation of Section 475.624(2), Florida Statutes. H:\FREAB\avritt.doc 7 FDBPR v. John Robert Avritt Case No. 2009024438 Administrative Complaint COUNT NINE Based upon the foregoing, Respondent is guilty of having failed to exercise reasonable diligence in developing an appraisal report in violation of Section 475.624(15), Florida Statutes. WHEREFORE, Petitioner respectfully requests the Florida Real Estate Appraisal Board, or the Department of Business and Professional Regulation, as may be appropriate, to issue a Final Order as final agency action finding the Respondent(s) guilty as charged. The penalties which may be imposed for violation(s) of Chapter 475 of the Florida Statutes, depending upon the severity of the offense(s), include: revocation of the license, registration, or certificate; suspension of the license, registration or certificate for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 for each count or offense; imposition of investigative costs; issuance of a reprimand; imposition of probation subject to terms including, but not limited to, requiring the licensee, registrant, or certificate holder to complete and pass additional appraisal education courses; publication, or any combination of the foregoing which may apply. See Section 475.624, Florida Statutes and Rule 6171-8.002, Florida Administrative Code. The penalties which may be imposed for violation(s) of Chapter 455 of the Florida Statutes, depending upon H:AFREAB\avritt.doc 8 FDBPR v. John Robert Avritt Case No. 2009024438 Administrative Complaint the severity of the offense(s), include: revocation of the license, registration, or certificate; suspension of the license, registration, or certificate for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 for each count or offense; imposition of investigative costs; issuance of a reprimand; imposition of probation subject to terms including, but not limited to, requiring the licensee, registrant, or certificate holder to complete and pass additional appraisal education courses; publication; restriction of practice; injunctive or mandamus relief; imposition of a cease and desist notice; or any combination of the foregoing which may apply. See Section 455.227, Fla. Statutes and Florida Administrative Code Rule 61J1-8.002. SIGNED this LO_ day of Déetomeam__, 2009. CHARLIE LIEM, Interim Secretary Department of Business and Professional Regulation Donna Christine Lindamood Assistant General Counsel Fla. Bar No. 273694 Department of Business and Professional Regulation Division of Real Estate Legal Section 400 W. Robinson Street, N801l Orlando, Florida 32801-1757 (407) 481-5632 - Telephone (407) 317-7260 - Facsimile PCP Date: 12/09 PCP MEMBERS: sd/ck H:AFREABlavritt.doc 9 FDBPR v. John Robert Avritt Case No. 2009024438 Administrative Complaint NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under Section 120.573 of the Florida Statutes, is not available for administrative disputes involving this type of agency action. PLEASE BE FURTHER ADVISED that pursuant to this Administrative Complaint you may request, within the time allowed by law, a hearing to be conducted in this matter in accordance with Sections 120.569 and 120.57 of the Florida Statutes; that you have the right, at your option and expense, to be represented by counsel or other qualified representative in this matter; and that you have the right, at your option and expense, to take testimony, to call and cross-examine witnesses, and to have subpoena and subpoena duces tecum issued on your behalf if a formal hearing is requested. PLEASE BE FURTHER ADVISED that if you do not file an Election of Rights form or some other responsive pleading with the Petitioner within twenty-one (21) days of receipt of this Administrative Complaint, the Petitioner will file with the Florida Real Estate Appraisal Board a motion requesting an informal hearing and entry of an appropriate Final Order which may result in the suspension or revocation of your real estate license or registration. Please see the enclosed Explanation of Rights and Election of Rights form. H:\FREAB\avritt.doc 10 TIVE APPRAISAL SERVICES 1604 WAKE LANE, GULF BREEZE, FL 32563 SUMMARY REPORT File No. EOS1056. APPRAISAL OF LOCATED AT: 9016 LARKER WOODS ROAD NAVARRE, FL 32566 FOR: ADVANCE MORTGAGE & INVESTMENT 25 W. CEDAR STREET, SUITE 312 PENSACOLA, FL 32502 BORROWER: BURGE, LAWRENCE F AS OF: APRIL 7, 2006 BY: PHONE (850) 916-4495 FAX CO IAT ADMINISTRATIVE COMPLAIN E vw EXECUTIVE APPRAISAL SERVICES 7 4604 WAKE LANE, GULF BREEZE, FL 32563 SUMMARY REPORT PETE ADVANCE MORTGAGE & INVESTMENT 25 W. CEDAR STREET, SUHE 312 | PENSACOLA, FL 32502 File Number: =£051056 In accordance with your request, | have personally inspected and appraised the real property at: 9016 LARKER WOODS ROAD NAVARRE, FL 32566 The purpose of this appraisal is to develap an opinion of the market value of the subject praperty. a5 improved. The property rights appraised are the fee simple interest in the site and improvements. tn my opinion, the estimated market value of the property as of APRIL 7, 2006 is: $180,000 ONE HUNDRED EIGHTY THOUSAND DOLLARS The attached report contains the description, analysis and supportive data for the conclusions, final estimate of value, descriptive photographs, limiting conditions and appropriate certifications. PHONE (650) 916-4498 FAX (650) 916-4827 : PAGE EXECUTIVE APPRAISAL SERVICES SUMMARY REPORT Uniform Residential Appraisal Report Fi No. EO51056 Property / Cty NAVARRE Berower BURGE, LAWRENCE F Qrmer of Pubic Recot SAME saat TE2S200016SODIOOD tne 2008 Asser Pact 15-28-26 2006-18500-0000 Ta Se 2008 RE. Tares $ 1,198.17 the subject proper ty flere for sale or fas k icon afr forsale in ihe teefve moras aiarto the effective date of his aomrica?_(Xlves [a ——SSS~«* Repat data sees) set, oferng et) and date(s}. MLS/PUBLIC RECORDS SHOW A SALE FOR $132,500 ON 01/42/2006. Contract Price $ Date of Contract N/A is the prperty seer the cuner of putt ts there any francial aedStance fear charges, sale concessions GR or Gowapaymens assistance, ect he pal hy ay party on Dehad of te basrower? Cives (Jno Yes, report the total dollar amount and describe theitemstohe paid. $ {PRE —_Ack_ lowe _—__S2% 3 i 250 Higt 2% % HOMES IN THE AREA EXHIBIT AVERAGE QUALITY & APPEAL AND ARE Senay FRAME OR MASONRY CONSTRUCTION. Market Conditions Gnckuding support for the above concissions) THE MARKET IS CURRENTLY STABLE WiTH MORTGAGE FUNDS AVAILABLE TO | QUALIFIED BUYERS AT COMPETITIVE RATES. a Sli os FEMA Fined Zone we X sah TDORTAOSESE FEMA Nap | Are the utes and of -ste imarovements typical forthe matket area? (XJves [Jno Ts f Ace there ary atvetse se cndtonsorextnal ores (easemets,evTDaChrerts,enviurmentl conan, lad ws CI? LJyes (X]xe tf Yes, describe. [ose Sat $j sas $a coma eer ie iit eet _] flea los Ones { Aopfances [xX] Dxlretieenin [xh EXECUTIVE APPRAISAL SERVICES SUMMARY REPORT Uniform Residential Appraisal Report Fee we. E051056 to$_ 235,000. COMPARABLE SALE NO, 3 2131 CASA DE ORO ST 2228 ESTATE CIR NAVARRE, FL NAVARRE, Ft. APX 2.5 MILE WEST APX 1.0 MILE EAST = 199.500 $ 174 000 | VIA CLOSED 89/29/2005, po 3 s $ G09 q0|3 11045 qt INSPECTION _ | MLS/PUBLIG RECORDS NAL dane2005 SUBURBAN/AVG [SUBURBAN/AVG| [SUBURBaqwavel ~ [suBURBAN/AVG[ | FEE SIMPLE FEE SIMPLE 26 ACREJAVG #200 | 41 ACREISUP — AVERAGE AVERAGE AVERAGE ‘J RANCH [RANCH | AVERAGE AVERAGE lcenTHTaac | ICENTHTg@ac | SCENTHT&AC | FANSAMNETC +500|FANSAMNETC | +5001 FANSAMNVETC | +500] GARAGE-2 72,500 | GARAGE-1 71,250] NONE pO PORCH/PATIO. PORCHIPATIO -750 | FIREPLACE-1 =750{ NONE ENCE .__|____-so0}Fence _{_-s00] FENCE —— [NONE [FENCE [NONE PRINKLER SYS: NONE fies, maslacioutsls oalaciuse Comparables Gros Adj. 9.3% 65 Gass fii, 18.44% $$ 197,750 | Grogs Adi 10.4%, 475,950 #1 DxJaia {_Jcéd not research the sale or transfer histary cf the subject property and comparable sates, ifnot. expizin FIREPLACE-1 F BUILT BEFORE 1995 AND ALL COMPS WERE ADJUSTED FOR ACTUAL AGE ACCORDINGLY. COMPS USED WERE CONSIDERED MOST COMPARABLE TO SUBJECT, IN UTHUTY, GLA, AND IN PROXIMITY. fap Indicated Vaiue by: Comparison AsorERch'S 180,000 jeg SEE ATTACHED ADDENDUM This appraisal Is made (X}casis.” {_}subject tw exenplotion pes phans and sperifications on the basis of a typathetica condition that the impraverents have been completed, (subject to tne fettowing repairs ar alterations on the basis of a hypathetical condition thet the repairs of alterations bave been completed, oF (C3 sutject to the forming required inspection based an the extraordinary assumption that the comikian or deficiency does net require aeration ot repair: SEE ATTACHED ADDENDUM Based an a complete visual inspection of the interiar and exterior areas af the subject property, defined scape af work. statement of assumptions and limiting B | conditions, and appraiser's certification. my (our) cpinian of the market Bias of 04/07/2008 dat EXECUTIVE APPRAISAL SERVICES SUMMARY REPOR’ Uniform Residential Appraisal Report Fie wo. E051056 7 ining Economic Life. ‘Total mamner of units for sata Data source(s) mucina(s) hoa PUD? [ Jves (_1No_ i Yes, dae of comersion. Ives J Sa Are the units, common elements, and recreation facies compicte? [_}yes {_}uo Mo, desevire tne stamss of compiction. bdo = omrmme (UL OF Reo RAs fl TIS T=. EXHIBIT # — “. PAGE __& : EXECUTIVE APPRAISAL SERVICES SUMMARY REPORT Uniform Residential Appraisal Report Fie No, EO51056 This report form is designed fo report an appraisaf 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 nol designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project. ‘This appraisal report is subject fo 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 lo 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 addilional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are alse not permitted. However, add@icnal certifications that do nct conslifute material alterations to this appraisal report, such as thase 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 folowing definition of market value, statement of assumptions and limiting condilions, and certifications. The appraiser must, af a minimun: (1) pesform 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 feast the street, (4) research, verify, and analyze data from reliable public and/or private sources, and {5) report his or ker analysis, opinions, and conclusions in this appraisal repert. INTENDED USE: The intended use of this appraisal report is for the fender/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 repon is the jende/client. DEFINITION OF MARKET VALUE: The most probable price which a propetty should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and saller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. implicit in this definition is ihe 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 formed or well advised, and each acting in what he or she considers his or her own best interest; @) a reasonable time is allowed for exposure in the open markef, (4) payment is mada in terms of cash in U_ S. dollars ar in terms of financial arrangements comparable thereto; and (5) the price represenis the nonnal consideration for the property sold unaffected by special or creative financing or sales concessions” granted by anyone associated with the safe. “Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are nornally paid by sellers as a resut of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transaciions. Special or crealive financing adjusiments can be made to the comparable property by comparisons to financing terms olfered by a third party insfitulfonal 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 GF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser's certification in this report is subject to the following assumptions and ieiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the properly 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 tite. 2. The appraiser has provided a sketch in this appraisal repart 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 4. The appraiser will nol give testimony or appear in court because he os she made an appraisal of the property in question, unless specific arrangements tg do so have been made beforehand, or as otherwise required by Jaw. 5. The appraiser has noted in this appraisal report any adverse candifions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, ete.) observed during the inspection of the subject property or that he or she hecame aware of during the research involved in performing this appraisal. Uniess 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 fess valuable, and has assumed that there are no such condifions 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 act 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 thai the completion, repairs, or alterations af the subject property will be performed in @ professional manner. REL HIBIT te PAGE __ or EXECUTIVE APPRAISAL SERVICES SUMMARY REPORT Uniform Residential Appraisal Report Fie No, E0S1056 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 4. { have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report, 2. 1 performed a complete visual inspection of the interior and exterior areas of the subject property. t seported the condition of the improvements in factual, specific terms. | identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. | performed this appraisal in accordance with the requiremenis of the Uniform Standards of Professional Appraisat 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 reat property that is the subject of this report based on the sales comparison approach to value. | have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that | considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report. . 5. 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 prir safes 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 sate, unfess otherwise indicated in this report. 7. 1 selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. l have not used comparable sales that were the resuit of combining a land sale with the contract purchase price of a home thai has been built or will be built on the tand. 9. | 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. t verified, from a disinterested source, all information in this report thal was provided by parties who have a financial interest in the sale or financing of the subject property. WW | have knowledge and experience in appraising this type of property in this market area. 12. | am aware of, and have access to, the necessary and appropriate public and private data sauices, such 2s muitipte listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 413. | obtained the information, estimates, and opinions fumished by other parties and expressed in this appraisal report from reliable sources that | believe to be true and correct. 44. t have taken into consideration the factors that have an impact on value with respect to the subject neighborhocd, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. | have noted in this appraisal report any adverse condilions (such as, but net imited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental condiions, efc.) observed during the inspection af the subject property or that | became aware of during the research involved in performing this appraisal. | have considered these adverse conditions in my analysis of the praperty value, and have reparted on the effect of the conditions on the value and marketability of the subject property. 15. Uhave 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 comeci. 16. | 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 appraisat report. 17. | have no present or prospective interest in the property that is the subject of this report, and | have no present or prospective personal interest or bias with respect to the participants in the transaction. | did not base, eithar partially or completely, my analysis and/or opinian 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 faw. 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 } would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value thal 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 morigage loan application). 19. | personally prepared ail conclusions and opinions about the real estaie that were set forth in this appraisal report. if | relied on significant real property appraisal assistance from any individual or individuats in the performance of this appraisal or the preparation of this appraisal report, | have named such individual(s) and disclosed the specific tasks performed in this appraisal report. | certify that any individual so named is qualified fo perform the tasks. | have not authorized anyone to make a change io any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and | wil take no responsibility for it. 20. | identified the tender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report. AUMINISTRATIVE CoMeLain an PAGE. ¢ gr Seieieenaee Lb CD EXECUTIVE APPRAISAL SERVICES. SUMMARY REPOR’ Uniform Residential Appraisal Report Fie No. EOS1056 21. The tender/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 reporiing services; professional appraisal organizations; any department, agency, oF 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 oblained 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. 1am 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, | 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 of ifs successors and assigns, mortgage insurers, govemment sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance iransaction that involves any one or more of these pariies. 24. If this appraisal report was transmilted as an *efectronic record” containing my “electronic signature,” as those terms are defined in applicable federal and/or stale 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 shail 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 appraisaf repost may resuil in civil ability and/or criminal penalties including, but not Emited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq., or simfar state laws. SUPERVISORY APPRAISER'S CERTIFICATION: The Supervisory Appraiser cerlifies and agrees that: 41. directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraisers analysis, opinions, statements, conclusions, and the appraiser's certification. 2. [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. 2 ‘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 taw. 4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice thal were adopted and promuigated by the Appraisai Standards Board of The Appraisal Foundalion and that were in place at ihe time this appraisat report was prepared. 5. If this appraisal report was transmitied 2s an “electronic record” containing my “electronic signature,” as those lermns 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 oF representation of my signature, the appraisal report shall be as effective, enforceable and valid as # a paper version of this appraisal repori were delivered containing my original hand written signature. Company Name EXECUTIVE APPRAISALS Company Address 1604 WAKE LANE GULE BREEZE, FL 32563. Telephone Number 850-916-4493. Email Address EXECORDERS@MSN.COM Date of Signature and Report 04/07/2008. Effective Date of Appraisal 04/07/2006 State Cestification # REGISTERED TRAINEE RI 73319 or State License # or Other (describe) State # State FL Expiration Date of Certification or License 11/30/2006 ADDRESS OF PROPERTY APPRAISED $016 LARKER WOODS ROAD NAVARRE, FL_ 32566 APPRAISED VALUE OF SUBJECT PROPERTY $ 180,000 BE Finer Wiech TO Teco ee Asta a8 OTT mea ie Appraisal Services EXHIBIT # | . pact = SUPERVISORY APPRAISER {ONLY IF REQUIRED) Signature Lenfick. Name Ji ANT Company EXECUTIVE SAL SERVICES Company Address 1604 WAKE LANE GULE FL 32563, Telephone Number 850-916-4495 Email Address EXECORDERS@MSN.COM Date of Signature 04/10/2006 State Certification # ST.CERT.RES.REA 4312 orState License #0 State FL Expiration Dale of Certification or License 11/30/2006 SUBJECT PROPERTY ()0id not inspect subject property (did inspect exterior of subject property from street Date of Inspection (KiDid inspect interior and exterior of subject property Date of Inspection 04/07/2006 COMPARABLE SALES ()bj}d not inspect exterior of comparable sates from street (X] Did inspect exterior of comparable sales fram street Date of Inspection 4/07/2006 POA A EXECUTIVE APPRAISAL SERVICES Uniform Residential Appraisal Report COMPARABLE SALE NO. 5 SUMMARY REPORT File No. EQS1056 FIREPLACE. Bsencatsrs = REPLACE Spanair howe enero —— 7 Seen | thal mel 3 om ousn 5% $ Borrower BURGE LAWRENCE F Property Address; 9016 LARKER WOODS ROAD ‘Gi NAVARRE Lender, ADVANCE MORTGAGE & INVESTMENT Final Reconciliation THIS REPORT iS INTENDED FOR USE BY ADVANCED MORTGAGE & INVESTMENTS FOR MORTGAGE PURPOSES, AND IS NOT INTENDED FOR ANY OTHER USE OR PARTY. METHOOS USED FOR THIS REPORT AND CONCLUSIONS SHOULD BE CONSIDERED IN WHOLE. USE OF ANY PARTIAL ENTITY WATHIN REPORT IS NOT VALID. Conditions of Appraisal THIS REPORT IS SUBJECT TO THE ATTACHED ASSUMPTIONS AND LIMITING CONDITIONS. ADDENDUM: THE BORROWER OWNS THE ADJOINING PARCEL (PARCEL # 15-2S-26-0000-00314-0000) ADDRESS IS 9016 LARKER WOODS. THIS PARCEL IS VACANT LAND AND WAS NOT CONSIDERED FOR VALUE IN THIS APPRAISAL. ADDENDUM 2: THE SUBJECT PROPERTY'S MARKET AREA HAS BEEN EXPERIENCING PROPERTY VALUE INCREASES ANNUALLY OF 15-35% SINCE HURRICANE IVAN, THIS 1S DUE TO THE HiGH DEMAND AND LIMITED SUPPLY OF AVAILABLE PROPERTY IN THE SUBJECT MARKET AREA DUE TO SUBJECT BEING LOCATED ONA NARROW PENINSULA WITH LAND DEVELOPMENT BEING CONFINED TO THE EAST OR WEST. Adcenaam Page 1 oft DSENISTRATIVE COMPLAINT -°s-~ - OR exmieiy #_! C3 “ee eage /O of SUBJECT PROPERTY PHOTO ADDENDUM Borrower: BURGE, LAWRENCE F Property Address: S016 LARKER WOODS ROAD City: NAVARRE tender: ADVANCE MORTGAGE & INVESTMENT FRONT VIEW OF SUBJECT PROPERTY Appraised Date: APRIL 7, 2006 Appraised Value: $ 180,000 REAR VIEW OF SUBJECT PROPERTY STREET SCENE COMPLAIN LC COMPARABLE PROPERTY PHOTO ADDENDUM Borrower: BURGE, LAWRENCE F File No. EG51056 Property Address: 9016 LARKER WOODS ROAD Case No.: SUMMARY REPORT City: NAVARRE State: FL Zip: 32566 Lender: ADVANCE MORTGAGE & INVESTMENT COMPARABLE SALE #1 9420 VICTORIA LN NAVARRE, FL Sale Date: 10/07/2005 Sale Price: $ 167,000 COMPARABLE SALE #2 2131 CASA DE ORO ST NAVARRE, FL Sale Date: 08/08/2005 Saie Price: $ 199,500 COMPARABLE SALE #3 2228 ESTATE CIR NAVARRE, FL. Sale Date: 09/28/2005 Sate Price: $ 174,000 — COMPLAINT (TM) COMPARABLE PROPERTY PHOTO ADDENDUM Bomower: BURGE, LAWRENCE F File No.: E051056 Property Address: 8016 LARKER WOODS ROAD Case No.: SUMMARY REPORT City: NAVARRE State: FL Lender. ADVANCE MORTGAGE & INVESTMENT. Zip: 32566 COMPARABLE SALE #4 2184 FRONTERA ST - NAVARRE, FL Sale Date: 01/31/2006 Sale Price: $ 195,500 COMPARABLE SALE #5 2153 HILLARY LN Saie Date: 06/03/2005 Sale Price: $ 183,500 COMPARABLE SALE #6 Sale Date: Sale Price: $ INTERIOR PHOTOS: Borrower: BURGE, LAWRENCE F File No; EG51056 Property Address: 9016 LARKER WOODS ROAD Case No.: SUMMARY REPORT City: NAVARRE State: FL Zip: 32566 Lender. ADVANCE MORTGAGE & INVESTMENT LIVING ROOM KITCHEN ADMINISTRATIVE COMPLAINT 1 ©) EXHIBIT # - Borrower: BURGE, LAWRENCE F FLOORPLAN File No.:_ EOG51056 Address: 9016 LARKER WOODS ROAD Case No.: SUMMARY REPORT City: NAVARRE 2 State: FL Zip: 32566 Lender: ADVANCE MORTGAGE & INVESTMENT. ‘Sketch by Apex IV Windows™ PLAT MAP Borrower: BURGE, LAWRENCE F LOCATION MAP Borrower: BURGE, LAWRENCE F File No.. EOS1056 Property Address: 9016 LARKER WOODS ROAD Case No.: SUMMARY REPORT Zip: 32566 AUMINISTRATIVE COMPLAINT FAX (50) 916-4827 PAGE _/ 7 oF PHONE (850) 914-4498 FEMA FLOOD MAP Borrower: BURGE, LAWRENCE F Property Address: 9016 LARKER WOODS RCAD Prepared for: InterFlood EXECUTIVE APPRAISAL SERVICES 3016 Larker Woods Dr Navarre, FL 32606-2708 PHONE (850) 916-4498 FAX C50) T6497 Cipit EXECUTIVE APPRAISAL SERVICES 4604 WAKE LANE, GULF BREEZE, FL 32563 SUMMARY REPORT File No_E051056. wenewees® INVOICE Sree File Nurnber: £0571056 ADVANCED MORTGAGE & INVESTMENTS, LLC 25 CEDAR ST, STE. 312 PENSACOLA, FL 32501 Borrewer : BURGE, LAWRENCE F invoice # : E051056 Order Date : 64/03/2006 ReferenceiCase #: SUMMARY REPORT PO Number : JOHN AVRITT URAR 9016 LARKER WOODS ROAD NAVARRE, FL 32566 inveice Total State Sales Tax @ Deposit. Deposit Terms: NET 30 DAYS-10% INTEREST AFTER 30 DAYS, ADDED EVERY 30 DAYS Please Make Check Payable To: EXECUTIVE APPRAISAL SERVICES 1604 WAKE LANE GULF BREEZE, FL 32563 Fed. 1.D. #: 419-27-4008 THANK YOU FOR THE OPPORTUNITY TO SERVE YOUR APPRAISAL NEEDS! ADMINISTRATIVE COMPLAINT, C4 \) PHONE (850) 916-4498 FAX (850) easily 3 Borrower: BURGE, LAWRENCE F File No.:_ EG54056 Property $5: 9016 LARKER WOODS ROAD Case No.: SUMMARY REPORT PER LENDER'S REQUEST: SINCE HURRICANE IVAN, PROPERTY VALUES IN THE GULF BREEZE/NAVARRE AREA HAVE INCREASED DRAMATICALLY. THE INCREASE OF PROPERTY VALUE FOR THE SUBJECT SINCE ITS LAST SALE WOULD BE DUE TO ITS LOCATION RIGHT OFF OF HWY 98 AS WELL AS THE IMPROVED CONDITION OF THE HOME SINCE IT WAS PURCHASED. EXHIBIT # - PAGE 20 OF Ls EXECUTIVE APPRAISAL SERVICES SUMMARY REPORT Uniform Residential Appraisal Report Fie No, E051056 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 appraisat 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. | am aware that any disclosure or distribution of this appraisal report by me or the iender/client may be subject to certain laws and regulations. Further, | 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 of 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 penaities 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 appraisers analysis, opinions, statements, conclusions, and the appraiser's certification. 2. | accept full responsibility for the contents of this appraisal report including, but not simited 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 appraisat 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) Company Name EXECUTIVE APPRAISALS Company Nanfe EXECUTIVE APPRAISAL SERVICES Company Address 1604 WAKE LANE Company Address 1604 WAKE LANE GULF BREEZE, FL 32563 GULF BREEZE, FL 32563 Telephone Number 850-916-4498 Telephone Number 850-916-4498 Email Address EXECORDERS@MSN.COM COM. Email Address EXECORDERS@MSNCOM_ COM Date of Signature and Report 04/07/2006 Date of Signature 04/10/2006 Effective Date of Appraisal 04/07/2006 State Certification # ST.CERT.RES.REA 4312 State Certification # REGISTERED TRAINEE RI 13319 or State License # or State License # State FL or Other (describe) «State # Expiration Date of Certification or License 11/30/2006 State FL Expiration Date of Certification or License 11/30/2006 * ADDRESS OF PROPERTY APPRAISED SUBJECT PROPERTY 9016 LARKER WOODS ROAD Did not inspect subject property NAVARRE, FL_32566 Did inspect exterior of subject property from street Date of Inspection 04/07/2006 APPRAISED VALUE OF SUBJECT PROPERTY $ 180,000 Obia inspect interior and exterior of subject property Date of [nspection LENDER/CLIENT Name MATT WHEATLEY. COMPARABLE SALES Company Name ADVANCE MORTGAGE & INVESTMENT ‘Did not inspect exterior of comparable sales from street Company Address 25 W. CEDAR STREET, SUITE 312 Did inspect exterior of comparable sales from street PENSACOLA, FL 32502 Date of Inspection 04/07/2006 Email Address 7 Papal & Apprajsal Services EXHIBIT ae maar ‘Produced using AGI solwware, BOUZ34 5727 wavw achwed.com Detached Single Family Full Customer Report hetp:!/ecarmls.com/EmeraldReports/ListitLib/report_builder.aspx Detached Singk Family Click photo to enberge of view mulli-phatas MiSa; 399083 ListPrice: S148 0D : ee Stas: Sul Lavt Climge: LG 2y00 AyproxSF: LO BG, Address: 9016 LARKER WOODS RP Sale Type: VARRE, FL S55aqt: ST2aS Ay: 3 Bedrasns: 3 Commty: | SANTA KOSA Bate Fuikiatt 9 oh MainArwa:}! NavasresGall Breeze Stnsiew: ' SubAvex: 92 EAST NAVARRE YearBatit: wes Subdiv; LARKER WOOD ESTATES InmaQec? ¥ PrapewiTD: 15:28 26-ites. IRS ComstrStsts Construction Complete . BlesaSch: HOLLEN NAVA BRE Mithle: HOLLEY-NaVARRE Hist: NAVARRE wars NORTH ON LARKER WOUDS FROM HWY 98. THE STREET [8 JUST WEST OF HE "SATELLITE STURE Lega: LOT 18 19. LARKER WOODS EXT UNREC (FULL LEGAL GN OFFICE: CUTE HOME IN NAVARRE THAT SITS ON 2 LOTS, NEW CARPET IN GREAT ROOM, AND HARDWOOD FLOORS THROUGHOUT THE REMAINDER OF THE HOME PRIME iS BEINGNGOLD AS 5, HOWEVER THE SELLER WILL RE-SHRIGLE ROOF OR GIVE AN ALLOWANCE FOR FT To BR DONE Inermation bereln {5 spprocamte apd nol exact. PrrkingSpares: Let OI00 LotAcr:Comnty Road, Pavel Read Wat Fini: Dina: Prk ingrest: Acres: Zoning: Mobic Home, Reswlertial Sing: Family Wat View: WEE eee ‘LetPentcCiarsd, Cub De-Sac, Woded Proifscit: Room ‘type it Lavingitcom 1 Other Bederva dant 1 GreatRuwen J Foundtaticn Of Grale. Frame, Roof Composite Shingle. Sing awd Bath: Fell 1 Deck Open Dining’ Kirten: i Breakin’ Gas. SooHardeoud FoorTie, Hear Carpet Bath: Master i BedrmMusies 1 Ustawaalict, Kethgeaaice, Stovertwen Hlectre, Utitintes: Blecirie. Pubic Water, Seplic Tank TY Cable Bednia dint 2 10M Energy: av0, Conted Electric. Celing Fans, Heat: Ceuta Biecarig, Water Hieuter: theethis Mbedidbuth: Mbath Shower Only Hinata: 6 SaleSuhjio Lease: Land Lease/Vear: MonthiyRtent: AssmMteT zp: Asani Fees: LesseEspDote: Finwockog: Convertionnt NewBuyerFre: BsistLesies: Asto_Neosinelinde; ESWR REMAX SOUTHERN REAL: - FW ‘SoldPrice: SLI2500 @ BuyerName: Cloveliae: Bren a NewM artT spe: ContractDate: HrigiMs WjCs0ar: PAe2w06 SaleNotes: SetingOm ‘WI PELICAN REAL ESTATE Sellagl: ES07S DAVIEHICKS CoseHoTe CoSelAgi: ADMINISTRATIVE COMPLAINT \y Detached Single Family Full Agent Report 4 Page | of 1 Oetached Single Famity Misa: — 399283m Offioutwes: ListPrice: $145,000 Stem: Sold Last Change: 1/13/2006 Approxsr: 1,720 OG: dddrese: 3026 LARKER WOODS BD Sate $77.03 NAVARRE, F Bedrosma: 3 Zip: 32566 Baths Full/Halt; 2/0 ‘County: SANTA ROSA Stories: 1 MainArem:t1 Navarre/Guif Breeze ‘Yeorsuin: 1963 ‘SubAres: 02 EAST NAVARRE Ovestat: vacant Subdiv: LARKER WOOD ESTATES IamOcc? Y ParcellD: 15-25-26-0000-18500-0000 Cowntrotat: Construction Complete: ElemSch: HOLLEY-HAVARRE Midkdfle: HOLLEY-RAVARRE High: NAVARRE ir: NORTH ON LARKER WOODS Foe HWY 96, THE STREET IS JUST WEST OF THE “SATELLITE” STORE Legal: LOT 18 & 19, LARKER WOODS EST UNREC (FULL LEGAL IN OFFICE) _ a CUTE HOME TM NAVARRE THAT SITS ON 2 LOTS, REW CARPET IN GREAT ROOM, AND HARDWOOD FLOORS THROUGHOUT THE REMAINDER OF THE HOME. HOME IS BEING SOLD AS IS, HOWEVER THE SELLER WILL RE-SHINGLE ROOF OR GIVE AM ALLOWANCE FOR IT TO BE DONE. Agent Hotes: THES PROPERTY TS CURRENTLY IN PROUATE, CALL LISTING AGENT FOR MORE IKFORMATION, OWNER MOVED THIS HOME TO THE LOT IN 2983, IT IS UNKNOWN WHAT YEAR IT WAS QUILT. LAM CURRENTLY WORKING UN GETTING CORRECT LOT DIMENSIONS. PLEASE HAVE BUYER VERIFY ALL DATA FOR THEMSFIVES. OR —_> Cick tere to repert an enor inthis ting bo the ating Agent <— ee Ee OES ParkingSpaces: tat | TAXI Lethiee: County fad, Famed Bead = heen: Acres: Single Famay Wrreet: Lotfant:Cieared, Gul-De-Sac, Wooded ProjFuct: . - ten Aeom Type = Ld Dinan LiviegRoon 1 15.5X13.5 Design: Other Redrm:Addini =1 10K10.75 GeeatRoom 1 20x24 Const/aiidiag: Foundation Of Grade, Frome, Roof Composite Shingle, Siding Wood Gath: Full 1 10.5XS Gxtfeatures: Deck Open Diniog/itchen ! mans Entfeatmres: — Sreatfast Bar, Floor:Htardwood, Floor:Tile, Floor: w/w Carpet Betrm:Masier 1 12X71 Apptlances: —_Olswashet, Petigerator, Stove/Oven Electric ‘Ueiitbes Bectric, Public Water, Bedrm:Additnt = 1 10110.75 Enengy: AVC: Central Glectric, Ceiling Fans, Hest: Central Electric, Water Hemter: Electric Mbed/ttsath: Mbath Shower Gay Hmatd: W SubatinbftoLonee: ns a in New SuyerFee: Existianses: LstOft: ESWR RE/MAX SOUTHERN REALTY - FW, istagt: F faent Cel Pm S50. 943-2810 Usttvo: «ERS NendExcpt? ‘o-Oft: Agent -: agency: Coast: Office Pr 850-664-2510 Seller: Sua: 2% Office Fam Sell: 851-8710 - ‘Trans-Brk: 2% Mon-Rep: 6 CalstAgt, SuprelBox Qusi/Var? Ln, Sarvice 7:tto fro: ON Comp Notes: (Qurrent Days on Market: 69 List Date: 02/08/2005 Exp Date: N/A ee ScldPrice: $232,500 Dore: @ Quyetasx: surge ChoseDate: 01/13/2006 DUC: as BewHertType: NONE ContractDate; «10/16/2005 PricieDene: 91/16/2006 SaleRotes: ‘Seltingorr: EPE4 PELICAN REAL ESTATE ‘Seflagt: E5978 DAVE HICKS CopeHOr: Casetiagt: eS — a 1 http:/ecarm!s.com/ListitEmeral d/listitlib/report_builder.aspx?report=members_full_propl&... 4/6/2006 AUMINISTRAIIVE CUMrLAINL EXHIBIT. # PAGE ___| OF _- 06/05/2009 To whom it may concern, This is my written response to the complaint that was filed against my supervisor, Joshua Bryant by Mark Liley of Flagstar Bank on a report that I provided assistance and helped develop on 9016 Larker Woods Dr, Navarre, FL 32566. I would like to start by addressing Mr. Liley’s concems from his complaint. 1) Appraiser did not include listing history for the subject in the original appraisal. In the Subject section on pg.1, the box is marked yes as to if the subject has been for sale or is currently for sale within the 12 months prior to the effective date of the appraisal and is clearly typed out underneath the box that the MLS & public records show a sale for $132,500 on 01/12/2006. This is also stated in the sales comparison approach under the subject as well as the analysis of prior sale or transfer history of the subject and comparable sales. 2) Review appraiser notes subject's subdivision to be manufactured housing. As you will notice there is a printout from the Santa Rosa County Property Appraiser’s record card. Under land information, you have the Land code, Description, and Zoning. This information was copied and typed into the appraisal report in the site section on pg.1: Specific zoning classification was marked RM1 and zoning description was single family residential, exactly from public records. 3) Original appraiser did not discuss the moving of the subject’s house to its current location, Review appraiser notes MLS data to indicate house moved to lot in 1983. Original appraisal has the appearance of a doublewide manufactured .home with a stick built addition. Original appraiser used inappropriate stick built comps for the subject's valuation. Review appraiser has used similar manufactured homes. Just because a house has been moved to different location does not automatically make it a manufactured home. Along the gulf coast it is common for stick built homes to be relocated for various reasons. Does that mean that one of these stick-builf homes is now automatically a manufactured home? My supervisor spoke with the listing Realtor and it was verified that the house that was built in 1975 and was moved from Ft. Walton to its current location. Per the subject’s MLS sales sheet, the realtor does say the house was moved to its current location in 1983 but it does not state the home is a manufactured home. It does say that it is unknown when the house was built. The home was listed under residential detached Single-family dwellings, NOT manufactured or mobile homes. The realtor stated that this home was a stick built home, after a full interior and exterior inspection, I determined the subject to be a stick built home. My supervisor determined it to be a stick built home and The Santa Rosa County Property Appraiser also determined the subject to be a stick built home. I have included a printout of the record card from the county appraiser’s office on the enclosed CD. You will notice there is a land code and use code 000100. I have also Ty. ADMINISTRATIVE COMPLAINT REPORT | exHiBit# EXHIBIT # PAGE#__-Gy- included the DOR definition codes for your review. Code 000100 is for a stick built single family. If this had been a mobile home, code 000102 would have been used which is for single-family mobile homes. The original digital photos that were taken when I inspected the interior & exterior of the property back in 2006. You will notice the interior photos do not resemble a manufactured home. In addition to the Santa Rosa County Appraiser’s record card proving it is a stick built home, I have also included on the CD recent photos of the subject property, which includes pictures of the underside of the home. It is common for mobile homes to have metal framing and beams for towing and transporting. You will notice from the photos that the underside of the home has a complete wood sub frame built with 2X6 & 2X12’s. The reason this file is front of you today is because a review appraiser did a drive-by without getting out and inspecting the subject property, he failed to ascertain the use & land codes provided by the County Appraiser’s Office, and then grossly failed to use reasonable diligence by using inferior manufactured homes instead of stick built homes as comparables and misleading the intended user into thinking the subject was a manufactured home. Because the review appraiser used incorrect comparables he produced an appraisal with an error that significantly affected his appraisal thus becoming negligent and misleading. The review appraiser has clearly violated USPAP standards 1-1(a)(b)(c), 1-4(a), & 2-1(a)(b) — not myself or Joshua Bryant. If you have any further questions or concems, please do not hesitate to contact me, The allegations and complaint filed because of the error that has been made from the review appraisal need to be corrected immediately. FL St.Cert.Res.REA # RD6135 Executive Appraisal Services 204 N. Reus St. Pensacola, FL 32502 Office # 850-916-4498 Fax # 866-855-4557 RATIVE COMPLAINT Pr torWeT Tisha . “TL =— | J PRIORITY° MAIL TATES POSTAL SERVICE mailable material may be enclosed, as long 11s not modified, and the contents are d within the envelope with the adhesive 1means of closure. yo” a —_, | ccmmematinemmee on] | 'E = =e | oe —eewe . EEE | n & : —_ : Me i —————S a : “ee —amces TT SS 1. ; =z LSS A : —eees = Cl 8 — os F EE i b=. S= = ; —— em. =——— | . § P SS . i see 2 =—— M —....__ ———es 8 Il U.S, POSTAGE PLEASE PRESS FIRM! * Ba PENSHEDLI FL | JUN-T?, “09 “em UNITED STATES. | AMOUNT POSTAL SERVICE 1006 32547 00053343-03 Flat Rate a Mailing Envelope For Domestic and International Use iN Visit us at usps.com yy, Ge & From:/ ut ® For Domestic = Ba PRIORITY and in al Use tal MAIL fe UNITED STATES POSTAL SERVICE 2 From f- . = fod KM aus R- Ults}oq 4 ately, Fl 3As02 TO DBRR , Division af Reql Bite Adin. Took Case (03 Lewis St Ft. Walton Beh, FL 4547 Label 228, January 2008 Page 1 of 1 Case, Jack From: ExecAppraisers@aol.com Sent: Sunday, June 21, 2009 5:38 PM To: Case, Jack Subject: case # 2009024433 Good afterncon Mr. Case, In regard to our conversation on Friday | went back and reviewed the additional comment regarding the increase in value since hurricane Ivan. It has been over 3 years since | worked on the with Mr. Bryani, but the way that comment is laid out is not wording that | use in my reports which makes me think that | was not the one who added that to the report. As far as the adjustments and market conditions/housing trends, Mr. Bryant would normally send us trainees about 25 - 100 sold comps for comparative data within the subject's area for us to review and compare, but being the supervisor, he would make the final decisions and adjustments on the report before the appraisal was completed and sent off. | hope that answers your questions. Sincerely, John Avritt FL St.Cert.Res.REA # RD6135 204 N. Reus St. Pensacola, FL 32502 Office # 850-916-4498 Fax # 866-855-4557, A Good Credit Score i is 700 or Above. See yours in just 2 easy steps! ADMINISTRATIVE COMPLAINT EXHIBIT ol PAGE OF REPORT 4 EXHIBIT#___ ‘a PAGE#

Docket for Case No: 10-002661PL