Projected MSR Cashflow

Projections assume a capital raise of $10.0m and an initial acquisition of $10m, financed 100% by equity.

After 90 days, 35% of the initial purchase is financed with proceeds from the lender contributed as equity for another acquisition in month 4 for a cumulative total MSR purchase of $15.3m.

During the 2 year reinvestment period, no distributions are made and net cash flows after debt service are reinvested with leverage to purchase a cumulative total of $27.2m in MSRs or approximately $2.3bn in loan balance or approximately 7,000 loans.

Assuming a year 7 exit with the sale of then outstanding MSRs at a 10.0% yield (5.0x multiple), the proposed equity investment is estimated to achieve a 1.71x^ multiple on invested capital (“MOIC”).

Equity investors are projected to achieve a 20.2%^ monthly compounded IRR, net of management fees of 2.0%* on capital under management.

^ Excludes promote incentive compensation to asset manager.

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