New Wave Loans Residential LLC

Item 5. Fees and Compensation
The fees and expenses that are applicable to an investment in a PIV are set forth in the PIV Offering
Documents. Please note that fees are assessed based upon the outstanding loan balance, which could
include non-performing loans.
The PIVs are each responsible for their own fees and expenses, such as audit expense, tax accounting and
preparation, K-1 reporting, legal fees, and other PIV operating expenses as disclosed in the applicable PIV
Offering Documents.
NWLR may receive additional fees in the normal course of business for additional services rendered for a
PIV, such as mortgage origination fees. Any such fees are at market rate or lower and must be consistent
with the PIV’s offering documents. In the case of a third-party loan made, NWLR or an affiliate may receive
an arrangement fee paid by the borrower of any loan made by NWLR or any related entities.
Ongoing management fees and other operating expenses are deducted in accordance with the offering
documents of each investment vehicle.

Item 7. Types of Clients
As described in Item 4, NWLR’s only clients are the PIVs, which are privately placed pooled investment
vehicles.