Risk Factors Update Summary

• Increased variable rate indebtedness to $16.5 billion (62% of total) exposes us to interest rate risk.
• The company had approximately $17.04 billion of HMBS related obligations as of December 31, 2023.
• Increased costs related to rectifying internal control issues may divert funds from business expansion.
• The company has transformed its business to focus on a modern retirement solutions platform.
• The company no longer has desk rental agreements, potentially subject to RESPA violation.
• Increased economic factors added, including interest rates, slow economic growth, and inflationary pressures affecting loan demand and borrower qualifications.
• Transition from LIBOR to SOFR and BSBY may increase cost of variable rate indebtedness.
• The company's senior secured indebtedness increased from $8.8 billion to $10.4 billion as of December 31, 2023.
• Increased regulatory scrutiny and compliance costs due to enhanced governmental scrutiny and increased fines.
• Mention of a $72.0 million definite-lived intangible asset impairment for the Mortgage and Lender Services reporting units.
• The company's unused total borrowing capacity increased from approximately $0.6 billion to $0.7 billion.
• The company shifted its focus to developing a streamlined reverse mortgage origination and retirement solutions business.
• Potential adverse effects on investor confidence and market price due to internal control weaknesses.
• The company's revenues decreased from $1.7 billion in fiscal year 2021 to $234 million in fiscal year 2023.
• Disclosure of a reduction in the number of warehouse lines of credit from 26 to 13, with an aggregate borrowing capacity decrease from $2 billion to $1 billion.
• Dilution risk from the issuance of additional Class A Common Stock and Class A LLC Units.
• The company's total indebtedness increased from $20 billion to $26 billion as of December 31, 2023.
• The company's corporate indebtedness increased from $399 million to $410 million as of December 31, 2023.
• Potential substantial tax payments under Tax Receivable Agreements could impact liquidity significantly.
• Interest rates increased, with the Federal Reserve raising rates eleven times in 2022 and 2023.
• The company's net losses were $218.2 million, $715.5 million, and $1,176.7 million for the years ended December 31, 2023, 2022, and 2021, respectively.
• The company's success depends on managing challenges to capitalize on the reverse mortgage market opportunity.
• The company's geographic concentration in California poses risks due to natural disasters and economic conditions.