Barriers To Entry – Requirements for Owning and Managing MSR

• Regulatory approval (e.g., Fannie Mae & Freddie Mac)

• A nationally licensed mortgage company in good standing with all regulatory authorities.

• Proper regulatory liquidity capital and proper staffing for legal and compliance requirements.

• Senior management team that is experienced in all details of purchasing, evaluating and monitoring the asset.

• Analytical models to effectively price, value and monitor the portfolio.

• Network of banking relationships to acquire and finance MSRs.

• Retention of established loan sub-servicers with favorable servicing contracts.

• Capital to build an asset management platform enabling investors to invest in this compelling asset class.