Projected MSR Cashflow

Projections assume two acquisitions of similar representative MSR investments from a regional bank and exit in year 7 assuming a 10% yield on the remaining net cash flows or a 5.2x exit multiple.

With reinvestments of distributions from the first 8 quarters ($2M), a $5M initial investments is projected to enable the acquisitions of $750M in UPB of MSRs - $10.0M  in total purchase price financed by $3.0M of debt (30%) and $7.0M of equity (70%).

Investment is projected to return  a compounded and annualized monthly IRR of 13.0% or a multiple on invested capital of 1.25x, including reinvestments, or 1.90x on just the initial $5M invested.

* Excludes promote incentive compensation to asset manager.

* May be reduced at $25m, $50m, and $100m.