New Silver May 2021 Update

We wanted to give you an update on our activities in the month of May. Though housing supply is short, we continue to outperform and posted a record number of loan applications, over 150 in May. This led to substantial growth in the pipeline and originations.

We were also able to decrease our pricing, and we believe we are now one of the more competitively priced lenders in the marketplace. We are not looking for a “race to the bottom”, however, price competitiveness should bring in more highly qualified borrowers. On top of that, we continue to innovate on the technology front and introduce features to make borrowing faster and easier, and give prospective borrowers the tools they need to be successful (more on this topic soon).

One challenge we are working through is collateral valuation - we rely on a third-party network of independent appraisers, who are extremely busy and very slow. This affects the whole US real estate industry, and there is little we can do to improve it. If we can speed up valuation with a process that is as good or better than what we have today, we would be able to further improve origination speed and continue to gain market share. We are in the market for a technological solution, if one exists, to help us speed up this process.

Loan Originations

New Loans: 12
New Loan USD Volume: $3.56mm
Average Interest Rate: 9.5%
Average Loan Amount: $297,400
Average Loan to Value: 77%
Average FICO score: 705
Current MakerDAO Debt Ceiling: $5m with about $2.1mm used

Loan Performance

90+ day late: 0
Forbearance: 0
Foreclosure: 0

Technology

We are on track for a major release this week that will include a brand new Servicing module which will allow us to track loans after closing, report, manage construction draws, and integrate with the servicer of record for real-time updates. This will also open the door to help us build more transparency into each outstanding loan.

People

There were no new hires in May. We have been focused on bringing on a full-time recruiter to help us fill open positions. One of the newly hired loan consultants did not work out, and we will be replacing that role, and hiring others, in the coming months.

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Were there any changes to the terms and conditions of the DROP agreement and associated documents since initially entering into the agreement?

If so – and New Silver is entitled to do so under section 4.F. – what were they, when did they go into effect, when was notice given in writing (via email as described in the agreement), and to whom?

Thanks!

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Yes, any material term changes are sent via email 2 weeks in advance to all of the DROP token holders. If this process needs to improve, we are happy to try to accommodate.

@prankstr25 what positions do you have open that need to be filled? Sorry if I missed a post on it.

At the moment we are focused on the recruiter role, but then additional loan consultants, marketing and software development.

Thanks. Are there job descriptions available? Sorry, I’d check the website career section (assuming there is one) but not able to view the MakerDao site at all today (is it down?).

We are hoping to be making an offer to the recruiter tomorrow so the posting has been closed.

How about the description for the consulting, marketing and loan consultant jobs?

Not live yet, once the recruiter gets going, we can share.

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Got, thank you for your responses.

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