A Reverse Mortgage Loan is much different than a Regular Mortgage Loan. In order to secure a Reverse Mortgage Loan, you and your spouse must have reached the grand old age of 62. You and your spouse must own your home and also live in your home. In a Reverse Mortgage Loan the homeowner(s) are taking out the equity that has built-up in the home over the years of homeowner(s) occupancy. Some highlights of the Reverse Mortgage Loan are as follows:

1. The homeowner(s) shall receive a monthly income, tax-free
2. The homeowner(s) eliminate their current mortgage payments
3. The homeowner(s) do not have to comply with any credit requirements mandated by Lender
4. The homeowner(s) do not have to meet any income requirements
5. The homeowner(s) do not have to pay any out of pocket expenses
6. The homeowner(s) do not have to make any monthly payments
7. The homeowner(s) maintain title and 100% ownership to their home
8. The homeowner(s) Social Security & Medicare benefits are not affected in any way
9. The homeowner(s) may move, sell or repay the mortgage balance at any time in the future
10.The homeowner(s) shall receive all appreciation in market value that accumulates over the years

The Reverse Mortgage Program is regulated by HUD (Department of Housing & Urban Development) and insured by the FHA (Federal Housing Administration).

At present, approximately 275,000 Senior American Citizens have achieved a much greated amount of financial security via the Reverse Mortgage Loan Program. It appears that the Reverse Mortgage loan Program has become so popular in the United States, that Uncle Sam may have to place a limit on the number of Senior American Citizens that can participate in the Program.

The Reverse Mortgage Loan Program along with all loan costs and fees are regulated by a federal governmental agency. Typical Reverse Mortgage Loan Program closing costs would include the following items:

1. Real Estate Appraisal Report
2. Credit Report
3. Title Insurance
4. Loan Orignation Fees
5. FHA Insurance Premium
6. Recording Fees

Please NOTE, that ALL of the above costs, fees and charges may be financed into the Reverse Mortgage Loan so that the Senior Homeowner(s) have no out-of-pocket expenses to pay during the loan acquisition process. The Reverse Mortgage Loan does not have to be repaid until the last and/or remaining homeowner/borrower permanently leaves the home. The homeowner(s) heirs have six (6) months or mote to either refinance and keep the home or sell the home and keep all of the remaining equity left after the sale.

Any and all repairs noted by the real estate appraiser may be financed into the Reverse Mortgage Loan so that the homeowner(s) has no out-of-pocket expenses.

No Senior American Citizen may secure a Reverse Mortgage Loan unless they attend a government mandated course and be assisted by an approved counselor.

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Visit our REcampus site for Real Estate Sales Exam Prep, Pre-License, Post-License and CE in the state of Georgia.

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American Appraisal Services, Inc.

NOTE TO THE REAL ESTATE APPRAISER: As a newly registered real estate appraiser, it is imperative that you are aware of what mortgage company reviewers are looking for when they review your uniform residential appraisal report (URAR). Please peruse the items below and be sure to refer to them each time you are in the process of completing residential appraisal reports for American Appraisal Services, Inc.

APPRAISAL REVIEW ITEMS:

• Is the sales comparison section complete and accurate?

• Has the appraiser selected his or her comparable sales from the subject neighborhood?

• If not, has the appraiser explained why comparable sales were selected from a different neighborhood?

• In your opinion, are the comparable sales really similar with respect to location, site, design and style, quality and amenities, as well as size and utility?

• Are all of the comparable sales recent sales of similar properties from the subject neighborhood?

• If the comparable sales are over three months old, has the appraiser explained why he/she failed to use the most recent sales?

• Are room counts and square foot areas of the subject and comparable sales similar?

• Do the sales prices and prices per square foot of the comparable sales correlate and indicate comparability?

• Are there large differences in the price per unit and per square foot between the subject and comparable properties?

• Has the appraiser bracketed his/her sales data (before making adjustments)?

• Do time adjustments, for date of sale, appear reasonable in light of market trends and current market conditions?

• Has the appraiser made excessive adjustments (gross adjustment figures that are 25% or more of comparable sales prices and individual line adjustments that are 10% or more of comparable sales prices)?

• Has the appraiser made numerous large adjustments?

• Has the appraiser adjusted all three comparable sales in a reasonable and consistent manner?

• Does the appraiser make unsupportable or faulty adjustments?

• Is there any missing or inaccurate information in the market analysis section?

• Are the appraiser’s mathematical calculations accurate?

• Is there a convincing value range with respect to the three adjusted comparable sales? In brief, are the adjusted value conclusions reasonable and similar?

REVIEWING YOUR APPRAISAL WORK -2-

________________________________________________________________________

• Does the appraiser’s final value conclusion relate to the adjusted comparable sales?

• Has the appraiser selected good market data and handled it well?

• Has the appraiser commented on the subject’s marketability?

• Does the Appraiser’s marketability information appear to be accurate?

• Does it appear that the appraiser is backing into any or all of the approaches to value?

• Is there a lack of clarity with respect to the appraiser’s reasoning?

• Can you read the appraisal report, step by step, and arrive at the same conclusion of value as the appraiser?

• Does the appraiser appear to be an advocate rather than an individual offering an independent and impartial third party opinion of value?

• Are there missing photographs or photographs that do not adequately show the subject property and comparable properties?

• Is other illustrative material missing or poorly done?

• If the appraiser is using computer-generated data, are the facts and comments in the report accurate and applicable to the subject and comparable properties?

• Does it appear that the appraiser is using the computer as a substitute for thinking?

• Are the appraiser’s comments and final reconciliation of value adequate and does the appraisal give insight into the value and marketability of the subject property?

• Is the appraiser’s value conclusion reasonable?

• Do you wind up with a different value conclusion from the appraiser, based upon data contained within the report?

• In your opinion, has the appraiser failed to prove his/her case?

• Does it appear that the subject property has been over appraised?

• Has the appraiser signed the report and typed his/her name under the signature?

• Is there a phone number on the report and/or cover letter, which would enable the reviewer to contact the appraiser and clarify a questionable appraisal report?

• Is the valuation section of the report (page two) acceptable?

FINAL NOTE: If you comply with the above review items, I am sure that your real estate appraisal reports will be of the highest quality and over and above the majority of the appraisal work done in the Atlanta metropolitan area. Thank you and Good Luck!!!

10/2001 Dr. Eric T. Martin, President

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