Valuation Services

MIAC’s Capital Markets Group (“CMG”) specializes in providing FAS 157 compliant fair market value appraisals of prime, Alt-A, subprime and commercial mortgage servicing rights, new and seasoned whole loans and retained mortgage residual interests. MIAC’s CMG staff adheres to a comprehensive, systematic and regular price and assumption discovery processes. MIAC’s fair market value includes an extensive analysis of the mortgage collateral behavior and the sensitivity of the price of the mortgage assets to the various input pricing assumptions such as prepayment rates, forward curves, frequency of foreclosure, loss severity, and Option-Adjusted Spreads (“OASs”).

All MIAC third-party asset valuation methodologies and business control procedures are regularly audited through our SAS 70 – Type II audit by Grant Thornton, LLP, www.gt.com.

NEW YORK, November 7, 2006 — Mortgage Industry Advisory Corporation (MIAC), New York, has been identified in “An Analysis and Description of Pricing and Information Sources in the Securitized and Structured Finance Markets” as a leading provider of Secondary and Residual Pricing in the Securitized and Structured Finance markets. The Bond Market Association's MBS and Securitized Products Division and the American Securitization Forum jointly undertook a research project to understand and describe pricing and information sources and offer insights and observations of a general nature into the price discovery and valuation process. The 128-page study covered the entire range of structured and securitized product sectors. A copy is available online at www.MIACAnalytics.com.

Residual Asset Valuation

	Review of Mortgage Residual Asset Assumptions
	Review of Assumption Discovery and Validation Process
	Review of Residual Asset Business Control Procedures
	Review Client's Model for consistency w/Industry Best Practices
	Estimate of Fair Value – FAS 157 and Sensitivity Analysis

Servicing Valuation

We are currently valuing in excess of $300 Billion  each  month in Mortgage Servicing Rights for a wide variety of clients. These servicing  valuations encompass the entire spectrum; SubPrime, Commercial, Residential  and Home Equity. We have developed  valuation solutions for:

	Large Residential Servicers who adopted FAS 156 Fair Value
	Middle Tier Residential Servicers that need assistance with FAS 140 risk stratification and GAAP basis tracking and FAS 157 Fair Market Value standards.
	Smaller Mortgage servicers through our Internet Pricing Service TM.

All of the pricing and assumptions that MIAC uses in our MSR valuations are based off of  information we obtain through actual trades and through our interaction with the top participants in the marketplace. MIAC’s Generic Servicing Assets – GSAs TM are the industry leading MSR Price Discovery Tool. 

Whole Loan Pricing

Since 1989, Residential and Commercial Whole Loan Valuation and Pricing are another one of MIAC's hallmarks. MIAC prices over $200 billion of whole loans each month for institutions ranging from the Federal Home Loan Banks to Wall Street Dealers to small Community Savings Banks. Our thorough and transparent assumption discovery procedures and business control procedures are fully audited through our SAS 70 – Type II Audit. Our third-party valuations are fully consistent with the Fair Market Value standards in FASB 157. We have the expertise to price both performing and non-performing mortgages, all types of fixed and adjustable loans, Subprime loans, Home Equity Loans, Manufactured Housing loans and Small balance Commercial loans.

The following Sample Valuation Reports are available upon request:

    Residential or Commercial Servicing.
    Prime, Alt-A, Subprime, or Commercial Whole Loan.
    Prime, Alt-A, Subprime, or Commercial Residual Valuations.