[Issuer] New Silver April 2022 Update

Dear Community,

We do not believe things have materially changed since the March update and the AMA we did with MakerDAO in April. At the macro level, the Federal Reserve increased the funds rate by 50 basis points (the market was expecting 75), this caused a short term rally in the equities markets, followed by major declines. The equities markets are still trying to find their footing amongst the global macro events - the war in Ukraine, energy prices, broken supply chains and potential embargoes and inflation.

In the US, real estate prices continue to appreciate, but we have recently seen a small increase (3% yoy on a weekly trendline) in new listings. There are also some newer trends emerging where people who can no longer afford (or don’t want to for other reasons) to buy property in the areas where they live and are starting to look elsewhere, specifically towards the South of the country. Our lending activities support that trend, with Florida and other southern states continuing to be very active.

We have also heard through some industry contacts that we may start seeing longer term mortgages being offered to consumers, specifically, a 40 year fully amortized loan (for context, the longest available has been 30 years). This product is already available as a modification option for existing loans, so we are keeping a close eye on that. If this comes to fruition, it will be a positive for consumers, as it will lower the monthly borrowing costs and stimulate demand (though with such short supply, it may further drive up prices).

Good news - New Silver has recently become a member at US Green Building Council, which oversees the LEED certification. Here is how they describe it “LEED provides a framework for healthy, efficient, carbon and cost-saving green buildings. LEED certification is a globally recognized symbol of sustainability achievement and leadership.” New Silver will be announcing its “Rebuild Greener” initiative, in conjunction with LEED, very shortly, stayed tuned!

Loan Originations in Tinlake
based on finance date

New Loans:14
New Loan USD Volume: $3.44mm
Average Originated Interest Rate: 9%
Average Tinlake Finance Fee: 6.33%
Average Loan Amount: DAI 246,000
Average Loan to Value: 71%
Average FICO score: 711
Average Term: 10.7 months
Loans Paid Back: 8
Current MakerDAO Debt Ceiling: $20mm with about $17mm used

Portfolio Analytics

Loan Performance

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

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Terminology question. The Average Originated Interest Rate is noted as 9%. Is this what borrowers pay to New Silver? And is this synonymous with the “Asset Repayment Premium” (7-12% per yr) referred to in the “Summary of Terms” (page 3 of Executive Summary: https://storage.googleapis.com/tinlake/docs/summaries/NS2.pdf)?