Joint VenturesWith New Penn Financial

Who is New Penn Financial?Headquartered in Philadelphia, originations are through four lending channels; Correspondent, Direct to Consumer, Retail/JV, and Wholesale.

With over 150 offices across the country and over 2,000 employees we serve thousands of customers each month.

Founded in 2008, the company and its reputation have grown rapidly under the guidance of a management team with years of experience in the mortgage industry.

After becoming a member of the Shellpoint Partners family of companies in 2011, New Penn acquiredindustry-leader Shelter Mortgage Company in 2014. This strategic acquisition bolstered New Penn’sJoint Venture experience, adding over 30 years of success in the market.

We’re looking forward to becoming a part of New Residential Investment Corp, (NRZ). Our acquisitionwas announced in November 2017 and the closing is scheduled to take place in the coming weeks.

Mortgage Executive Magazine’s list of 50 Best

Companies to Work For

Scotsman Guide Top U.S. Mortgage

Lenders

Inc 500/5000 Fastest Growing Companies

since 2010

Licensed and originates in 49 states and D.C.

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The New Penn Advantage

Technology to Support Customer Experience

• Customizable platforms to meet both client and customer expectations

• Technology tools to support customer self-service processes as well as cater to high-touch (“concierge”) customers

• Dedicated to engaging with the latest (and future) mortgage technologies –data validation services, eClosing, etc.

Revenue Opportunity

• Fully functioning JV will drive a consistent income stream.

• J/V approach lessens capital investment to enter the market.

Financial Strength & Strategic Alignment

• New Residential relationship provides:

• Capitalization to support strategic vision and growth

• Product - Smart, HELOC, Non-QM, Private Label MBS

• Stability• No product conflicts• Significant customer

portfolio

Proven Success & Onboarding Playbook

• 30+ years in JV experience• Focused on operational

excellence• Manufacturing quality in our DNA• Dedicated to industry-leading

customer service

Partnered Mortgage Servicer

• SMS servicer enables ability to private label service

• Focus on quality and customer experience

• High-touch, boutique experience compared to large servicers

• Aligned to originator success –technology and process to enable cross-sell and customer retention efforts

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Who Is New Residential?New Residential Investment Corp. (NYSE: NRZ) is a leading capital provider to the U.S.

mortgage industry. They aim to drive strong risk-adjusted returns primarily through investments in three main portfolios: Mortgage Servicing Rights & Advances, Non-Agency

Securities & Associated Call Rights, & Opportunistic Investments.

A publicly traded mortgage real estate investment trust (“REIT”) with a $5.7 billion market capitalization. Their portfolio consists of high-quality assets capable of

generating stable returns across different market environments. 4

The New Penn Financial JV Family

New Penn originates through multiple subsidiaries and joint ventures. The team isgeographically diverse and focused on a variety of lending specialties.

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Strength In JV PartnershipWe partner with progressive Real Estate firms that aspire to expand their current

business model and aim to maximize value potential.

Creating Value TogetherPartnership Benefits:• Application of proven best practices

• Agile and flexible approach to meet your business model needs

• Expertise in compliance of all state & federal regulatory guidelines

• Over 30 years of successful Joint Venture integrations and implementations with diverse partner groups

• Robust product suite-including non-QM loans- to differentiate from market competitors and increase conversion of leads

• Enhanced buyer experience

• Greater control & transparency of home sales cycle

• Dedicated Loan Officer support for your projects

• Extended Rate Locks to help mitigate pipeline risks

• Technology based, efficient, low deft rates

• Culture focused, strong sales platform

• Scalable platform

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Joint Venture Legal Structure

Joint Venture legal structure and framework are formulated based on your goals and available resources. Proven success in compliant Joint Ventures both Standalone and Consortium that adhere strictly to RESPA requirements and HUD 10 factor balancing tests. All legal and operating agreements are in full compliance and ensure proper governance and entity independence.

JV StandaloneWill be licensed in all needed states

JV ConsortiumMultiple companies partnering under one

umbrella leveraging resources, capital, technology & marketing

Returns to members based on ownership percentage and not contribution

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Your Timeline To Profitability

Our compliant, established procedures and protocols mitigate risks and reduce extra expenditures.

Our High-Level Launch Plan Entails:

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Joint Venture SupportNew Penn Financial has a tried and true comprehensive onboarding transition

process ensuring no gap in production and no growing pains.

Experienced-Based Operational ExcellenceWe have decades of proven experience operating one of the largest origination and servicing platforms in the country to support our Joint Ventures. Using best practice methodologies, we know how to close more loans efficiently, quickly, and with the highest level of customer service.

Products & Programs:Impressive range of programs

qualify more borrowers and broaden buyer base.

• Non-Agency suite of high

balance jumbo

• Non-QM suite for those who

may not qualify under

government backed and agency

mortgages

Origination & Processing:Borrower/Loan Officer centric

processes increase transparency and close loans quickly.

• Processors assist LOs with

welcome calls, docs & comm.

• Smooth & efficient process

• Accessible, solution-focused UW

• Defined, dedicated teams

Operational Structure:An established operational toolbox for rapid, compliant and efficient deployment.

• HR Payroll Setup

• Servicing (MERS)

• Digital Direct to Consumer

Centers

• Appraisal Management

• IT Systems

• IT Comm. + Hardware

• Vendor Management 11

Marketing & Lead GenerationStrategic Growth Initiatives:• Predictive buyer/seller technology, tested marketing initiatives supporting lead

generation, brand recognition and client support

• Professional, customized co-branded marketing materials supporting Agents, Loan Officers & Borrowers

• Comprehensive marketing plan providing guidelines to launch venture quickly & in compliance

BorrowersProfessional Website

Buyer Educational Materials

Automated Pre-Approvals

Post Closing Campaign

Online Application Portal

Loan OfficersCustomized Co-Branded

Marketing Materials

Automated Social Media

State-Of-The-Art Robust CRM

Training on Technology,Products, and Compliance

REALTOR®/AgentsCo-Branded Buyer Education

and Program FlyersIn-House Communication onLoan Status and Red Flags

Automated BorrowerPre-Approvals

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Direct to Consumer- A Proven Model to Success• Power in Numbers: Over 300 call center loan officers across 9 service

centers• 3 anchor centers and 6 regional locations to cover variety of

demographics and consumer needs• New Penn has a track record of agility and adaptability and can quickly

and efficiently create a new call center for your brand• Our “Private Label” capabilities and brand specific training will increase

conversion rates to increase profitability• Strong CRM systems (Velocify and Salesforce) to enable loan officers to

spend more time cultivating relationships• Reliance on predictive analytic tools to drive conversion and lead quality:

• Pipeline Monitoring• New Rez portfolio scan- over 3M loans• Lead nurturing• “Likelihood to enter market” analysis

• Industry tools to engage partners and borrowers:Rate Plug, Total Expert, MLS monitoring, Satisfaction Survey

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Customer Experience – Origination Technology• Configurable Online Application provides flexibility to tailor experience(s) for

SoFi customers- Customize logo and other graphics for consistency with other SoFi

digital tools- Completely configurable workflow – update questions, application

sequence / flow, optional vs. required fields- Ability to incorporate dynamic product availability and pricing - options

update as borrower fills in information (or hide until later in the process; or entirely)

- Can incorporate eligibility criteria during the application process -examples include soft or hard stops if assets are insufficient for down payment, or low income is making DTI too high for desired loan amount

• Mobile- and tablet-friendly using responsive-UI• Supports Data Validation services in the online application (if desired)

including multiple vendor options for Asset Validation• Ability to “pre-fill” data for known customers – either with personal link or on-

demand call• In review with several vendors to incorporate co-browsing and video chat

functionality (target Q3)• Also have capabilities to leverage existing SoFi online application or review

alternative providers

New Penn has a flexible Online Application ready to customize to meet SoFi expectations –tailored to your market and your desired experience

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Customer Experience – Origination Technology• Post-application Consumer Portal to communicate with customer, deliver status updates, collect

authorizations and documents, and electronically sign disclosures- Customize logo, graphics and other style elements for consistency with other SoFi digital tools- WalkMe guided tutorial software - which can be used to present additional SoFi-specific content

(including videos) throughout the process – could include welcome/intro materials, content/status explanations, tooltip-style “help” content, and a searchable library of other materials

- Can create SoFi-specific borrower tasks (“to-dos”) to collect additional data, authorizations or other specific communication/checklist

• Proprietary product designed around tight integration with POS/LOS ensuring data consistency and sales efficiency by managing process through a single platform

• Within 5 months of launch, over 75% of funded loans having customers using the portal – logging in on average nearly 6 different days during the process

• Entire Portal is built on web service architecture - can support SoFi customer portal connecting to our endpoints and delivering all functionality within existing SoFi experience

New Penn Consumer Portal includes the features and functionality to drive top-tier digital experience while maintaining tight LOS integration – as well as ability to seamlessly integrate with SoFi platform

“My clients really love it and enjoy the ease of uploading documents especially. My team also likes the ease of the system and being able to retrieve documents quickly. It’s a BIG upgrade in security for our clients and is also much easier for them.”

- #1 Top Producing Loan Officer

“When are clients are very active with the portal, it has had a HUGE positive impact on speeding up the process. When we receive conditioned docs before we even request them, it makes life on the processing side so much easier.”

- Loan Officer Assistant / Production Support to Top Producing Team

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Loan Officer Technology• Developed a proprietary workflow within our point-of-sale called FLOW (Fast Loan Origination Workflow)• Linear workflow designed for Call Center / Direct-to-Consumer environment to enable Loan Officer to easily

go through application process, deal structuring and disclosure process while on the phone with a customer

• Contextual data collection based on borrower and loan attributes• AUS Evaluation engine scrubs data and presents fields for remediation prior to running DU/LP• Has dramatically simplified the new Loan Officer training and onboarding process – making new hires

more productive quicker• Embedded WalkMe technology – ability to quickly integrate SoFi-specific scripting or other content

Simplified point-of-sale enables sales effectiveness, allows embedding of SoFi-specific content, and drives industry-leading customer service

“If it wasn’t for FLOW, I wouldn’t have 11 loans on the board in May.”- Retail Loan Officer (started in March and

new to mortgage industry)

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Leading Edge Technology• Progressive technology delivers leading edge tools to enhance the

consumer experience, automate the loan process and creates Loan Officer efficiency

• Automation tools and advanced workflow create exception-based processing with less manual work and lower origination costs

• Increase in Application Volume, Conversation Rate & Market Share

• Fully automated portal allows paperless transactions with opportunities to interface with in house sytems

• Agent, Consumer and Loan Officer Communication & Collaboration

• Client Relationship Management (CRM), Co-Branding, and Cost Sharing Systems

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ADDENDUM: PRODUCT MIX

Leverage New Penn’s Mortgage Products

Our wide array of products include jumbo and unique non-agency programs that fill critical service gaps in the market as well as government and agency.

Variety of loan products to address the needs of borrowers.

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SMART Series* of Non-QM Products

* SMART Series products are portfolio pooled and securitized 20

Jumbo Series & Agency Products

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Expanded Government Loans

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THANK YOU.

Our MissionEXCEED THE EXPECTATIONS

OF OUR

RESIDENTIAL MORTGAGE BORROWERS & BUSINESS PARTNERS

through SUPERIOR SERVICE,

SIMPLE PROCESSES, &

EFFECTIVE COMMUNICATIONS.

©2018 New Penn Financial, LLC. All Rights Reserved. 4000 Chemical Road, Suite 200, Plymouth Meeting, PA 19462. Corp NMLS#: 3013 (www.nmlsconsumeraccess.org). This communication is provided for use by real estate or mortgage professionals only and is not intended for distribution to consumers or other third parties. This does not constitute an advertisement as defined by Section 1026.2(a)(2) of Regulation Z.

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