perceived protected characteristics of a geographically defined area to develop an opinion of value, 135 unless permitted under the law and under the exception in the Nondiscrimination section of the ETHICS 136 RULE. The use of or reliance upon race and information about race is never permitted when developing 137 or reporting an opinion of value for residential real property. Therefore, a discussion of race should not be 138 included in the Appraisal Report? 139 2. An appraiser agrees to perform an assignment to develop an opinion of the market value of a residential 40 property for a financial institution where the intended use is in connection with a mortgage loan. The resulting ro Appraisal Report states that the subject property is located in an “ethnically diverse neighborhood.” What 12 concerns could be raised by the appraiser's inclusion of this information in the Appraisal Report? 8 i. 9 id 10 See FHFA Advisory Bulletin AB 2021-04 - Enterprise Fair Lending and Housing Compliance, hitips:/vwwihia.cov! ‘SupervisionRegulation/AdvisoryBulletins/AdvisoryBulletinDocuments/AB%202021-04%20Enterprise%20Fai%s20Lending%20and%20 Fair%20Housing%20Compliance.pat: New Orleans Fair Hous. Ctr. St. Bernard Parish, 641 F. Supp. 2d 563, 571-72 (ED. La. 2009). ‘11 See Emily Badger, Time Magazine, “How Section 8 became a ‘racial slur” (June 15, 2018), hiis/wwwn.washingtonpost.com/news/ wonk/wp/2015/06/15/how-section-8-became-s-racial-slur/; Abby Vesoulis, Time Magazine, “A Mask for Racial Discrimination. How Housing Voucher Programs Can Hurt the Low-income Families They're Designed to Help” Feb. 20, 2020), hitosy/time.com/5783945/ hhousing-vouchers-ciscrimination/; Antonia Fasaneli & Philip Tegeler, American Bar Association, “Your Money's No Good Here: ‘Combatting Source of Income Discrimination in Housing” (Nov. 30, 2019), hips/iww.americanbar.org/groups/crsi/publications/human.. rights_magazine_home/economic-justice/your-money-s-no-good-here-combatting-source-of-income-discriminl. 12. Ina review of millions of appraisals, the Federal Housing Finance Agency noted, “Ihe racial and ethnic composition of the neighborhood should never be a factor that influences the value ofa family's home. Our observation of appraisals suggest that racial ‘and ethnic compositions of a neighborhood are still sometimes included in commentary, clearly indicating the writer thought it was important to establishing value.” FHFA, “Reducing Valuation Bias by Addressing Appraiser and Property Valuation Commentary” Dec. 4, 202, Commentaryaspx. 130 USPAP Guidance: Advisory Opinions he Appraise Foundation --- Page 219 --- Ens. ‘ADVISORY OPINION 40 ‘Answer: USPAP requires the appraiser to understand which factors are relevant in developing an opinion 143 ‘of value and which are permitted to be used under USPAP and under applicable law, including the FHAct, 14 ECOA, and the Civil Rights Act of 1866. The appraiser may not use factors related to actual or

Appraiser does not guarantee that the Property is free from defects. The appraisal establishes the value of the Property for mortgage insurance purposes only. Certifications Appraiser Certifications The Appraiser certifies and agrees that: 1. I have no present or prospective interest in the property that is the subject of this report, or relationship with the present or prospective owners or occupants of the subject property, or other parties involved in this transaction. 2. I performed this assignment without bias with respect to the parties involved in this transaction, the property that is the subject of this report, or the demographics of the area where the property is located. 3. I am aware of and have complied with all applicable laws and regulations including antidiscrimination laws, rules, and requirements that apply to the appraiser and to the assignment. 4. I did not base any part of my appraisal on the actual or perceived race, color, religion, sex (including sexual orientation or gender identity), age (other than as applicable for legally age-restricted communities), marital status, disability, familial status, or national origin of the present or prospective owners or occupants of either the subject property or properties in the area of the subject property or on any other basis prohibited by the Fair Housing Act or the Equal Credit Opportunity Act, or any other basis prohibited by law. 5. I stated in this appraisal report my own personal, unbiased, and professional analyses, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 6. I have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report. 7. I meet the credential requirements for this assignment as of the date of this appraisal report and have knowledge and experience in appraising this type of property in this market area. 8. I am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records, and other such data sources for the area in which the property is located. 9. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct. 10. I personally performed an onsite inspection of the interior and exterior areas of the subject

Reference ID AMC Reference ID Completion Report Page [Page] of [Pages] Completion Version # Fannie Mae | Freddie Mac 4FQUFNCFS
 Intended Use The intended use of this certification of completion is for the lender/client to confirm that the requirements or conditions stated in the appraisal report referenced above have been met. Additional Intended Use Additional Intended Use cannot be contrary to the original Intended Use. Intended User The intended user of this report is the lender/client. FHA and the Mortgagee are the intended users of this report. The USDA and any other identified lender/client are intended users of this report. The VA is also an intended user of this report. Additional Intended Users Additional Intended Users cannot be contrary to the original Intended User. Certifications Appraiser Certifications The Appraiser certifies and agrees that: 1. I have no present or prospective interest in the subject property, or relationship with the present or prospective owners or occupants of the subject property, or other parties involved in this transaction. 2. I performed this assignment without bias with respect to the parties involved in this transaction, the subject property, or the demographics of the area where the property is located. 3. I am aware of and have complied with all applicable laws and regulations including antidiscrimination laws, rules, and requirements that apply to the appraiser and to the assignment. 4. I did not base any part of my conclusions on the actual or perceived race, color, religion, sex (including sexual orientation or gender identity), age (other than as applicable for legally age-restricted communities), marital status, disability, familial status, or national origin of the present or prospective owners or occupants of either the subject property or properties in the area of the subject property or on any other basis prohibited by the Fair Housing Act or the Equal Credit Opportunity Act, or any other basis prohibited by law. 5. I stated my own personal, unbiased, and professional analyses, opinions, and conclusions, which are subject only to the assumptions and limiting conditions herein. 6. I certify that I did perform a personal onsite inspection of the subject property to determine if the conditions or requirements stated in the original appraisal have been satisfied. 6. I certify that I did not perform a personal onsite inspection of the subject property to determine if the conditions or requirements stated in the original appraisal have been satisfied. Description: 7.