ENGAGEMENT LETTER—BROKER’S PRICE OPINION

                                                                           EFFECTIVE 5/08/2025

                                                               SHELLPOINT MORTGAGE SERVICING

This engagement letter is an integral part of the BPO order and is considered an extension thereof. Together the order and the engagement letter constitute E Street AMC’s request for a broker’s price opinion (BPO) on behalf of our client, , Shellpoint Mortgage Servicing and Shellpoint Mortgage Services - Collateral Management

The BPO order must be declined if the real estate agent has valued the subject property within the 12 months preceding this order or if the agent has any professional affiliation with the Realtor currently representing the property. If the agent’s office is more than 50 miles from the subject property, then before proceeding approval is need from the client. Call E Street so that we can contact Shellpoint for approval. If not approved, the order will be canceled.

By accepting the BPO order from E Street Appraisal Management, the agent acknowledges and confirms that the:

1) Agent is a licensed realtor or broker in good standing in the state in which the subject property is located.

2) Agent has a minimum of 12 months experience in completing BPOs in subject’s market area.

3) Agent has not valued the property within the last year.

4) Agent’s office is within 50 miles of the subject property.

5) Agent agrees to meet agreed upon turn times and will respond to clarification and/or reconsideration of value requests within five business days of contact.

                           NOTE: If these requirements cannot be met, the agent must decline the assignment.

CONTACT E STREET BEFORE COMPLETING THE BPO WHEN:

• Subject is zoned for mixed use or a non-residential use like commercial, industrial, or other. Provide documentation confirming current use.
• Subject is significantly damaged, under construction or being renovated. Please provide photos and a description of what was observed.
• If properties are inaccessible due to impacts from fire, flood, earthquake, or other disasters, the general guideline is to notify the Client for further instructions before completing the order.

                           Note: E Street will provide documentation to Shellpoint and request further instructions.

BPO REQUIREMENTS/INCLUSIONS

1) Delivery—There is only one upload fee per order and that fee varies based on the product being uploaded. Call E Street if you want to know upload fee

2) Form—complete all sections of the form and provide detailed descriptions of the subject property and its market area including market conditions.

3) Market conditions—Describe recent market activity in subject’s market area. Report whether market conditions are increasing, stable or declining. Include information on any local factors that are positively or negatively impacting the market.

4) Neighborhood—include a description specific to the subject property. Example: Subject is in a suburban area developed primarily with average quality single family residences built between 1960 and 1975 with scattered multi-family dwellings and newly constructed houses. Most properties appears to be adequately maintained.

5) External—describe any positive or negative factors impacting the subject property including adjacent properties with different uses, views, power lines and similar. Provide photos.

6) Property type—describe in detail and property identify subject as a single family or multi-family, attached or detached, townhouse or row house, interior or end unit, condominium, duplex, triplex, four-plex, mobile/manufactured home (MFH); modular or other.

a) If subject is a MFH that does not have a permanent foundation and not considered real estate, then a land appraisal should be completed. Call E Street so that product ordered can be changed.

7) Site—Report site sizes in acres rather than square feet. Example: 12,000 SF site/43,560 = 0.28 acre.

8) Physical description—do not copy subject data from a prior valuation report; the current BPO agent must independently verify subject’s physical characteristics. Use multiple data sources including MLS data and public tax and assessor records to validate subject’s physical characteristics. Data discrepancies should be identified and addressed. Agent should state which data source was considered more reliable and why.

9) Improvements--address quality and condition observed. If any improvements do not contribute to value, please explain why.

10) Deferred maintenance—list all areas of deferred maintenance and itemize needed repairs. Include an estimated cost to cure and a photo for each item listed.

SELECTION OF COMPARABLE SALES AND LISTINGS

1) Include the most recent sales/listings from subject’s immediate neighborhood.

a) Sales that have closed in the last 3 to 6 months are preferred.

b) For bracketing price, please include one comp that sold higher than subject’s price.

c) If older sales or listing must be used, explain why; comments should be supported by the market conditions that were reported for the neighborhood.

d) Give special consideration to sales and listings on subject’s street.

e) Comps should be within 1 mile in urban areas, 2 miles in suburban areas and 5 miles in rural areas whenever possible.

f) If a comp is located across neighborhood boundaries or in a different neighborhood, describe how the subject’s and the comp’s neighborhoods compare or differ in terms of location, amenities, or property type.

g) If subject is a manufactured home (MFH), then all the sales/listings should be MFH.

2) Report the type of financing, seller concessions, seller assist with financing costs and days on the market for each comparable.

3) Physical characteristics—comps should be reasonable similar in terms of age, quality, condition, lot size, gross living area (square footage), room count, parking and other major items that contribute to value.

a) If photos show subject and the comps are dissimilar, then the reasons why these comparables were chosen should be explained.

ANALYZING THE COMPARABLE SALES AND LISTINGS

1) Differences recognize by the majority of buyers in the market as positives or negatives should receive adjustments based on market reaction to the feature/factor.

a) Inferior features of a comparable require an upward (plus) adjustment.

b) Superior features of a comparable require a downward (minus) adjustment.

2) Address type of financing, seller concessions like closing costs, and days on the market for each comparable sale and listing and impact on marketability and price.

3) Comps should bracket any atypical features for the subject property.

4) Across the board adjustments must be market supported.

5) After adjusting the sales/listings, the range of value indicated from low to high should be reasonable.

6) Comments must be provided that address the adjustments made and the value concluded.

SUBJECT’S HISTORY AND PRICE/VALUE VARIANCES

Agent must provide the subject’s sale and listing history for the 36 months preceding the date of inspection or advise if no prior sales or listings were found.

•  If the subject is for sale by owner, the agent must contact the seller/owner for the listing price and comment on the price and any other pertinent factors.
• Comments should include subject’s original listing price, current price and date listed.
• Agent should address any variance between the listing price and subject’s estimated value.

ADDENDUM ITEMS TO BE INCLUDED

1) Assessor data—include a copy of the assessor’s property record card for subject in the BPO report. If not available, then explain why.

2) MLS data sheet—if subject is currently listed or was previously listed or sold in the last 3 years.

3) Photo requirements:

a) Subject photos must be original, taken on the day of inspection and properly labeled. Photos required will vary depending on whether inspection includes the interior of the subject property or exterior only.

4) For exterior only or drive-by inspection—where subject is not visible from the street—provide an aerial view and online photos if available and cite the sources used.

5) Include photos of anything that adds or detracts from the improvements, the site, or the neighborhood.

6) Include exterior photos of front, rear, and all sides of the dwelling including angled side views.

7) Include photo verifying subject’s address—house or unit number.

8) Include photos of any for sale, for rent or similar sign if present.

9) Include interior photos of each room, bedroom, bathrooms, and basement (if any).

10) Include exterior and interior photos of any outbuildings including garage.

11) Include photos of deferred maintenance and damaged areas of subject improvements.

12) Include multiple street scenes—minimally two—that show both the subject and neighboring properties on the street. If subject is on a corner, provide photos of both streets.

13) Include photos of factors having a positive impact (i.e. mountain, water, panoramic city) or negative impact (i.e. water tower, power lines, adjacent property with commercial use, gas station). Even if view is considered neutral and sales/listings have similar view, a photo is helpful.

                                   Thank you for partnering with E Street Appraisal Management Company.

                                         Your professionalism and experience are appreciated.