Email from Rapid Financial Services CTO to RER Solutions CEO, Apr. 13, 2020

Summary

An email chain led by an April 13, 2020 message from Bogdan Nastea, CTO of Rapid Finance, to Errin Green, CEO of RER Solutions, Inc. Nastea writes that the system should still be able to hit 100k per day, that almost 190k applications have been processed with a duplication rate of 18%, and that without the contract bump, contract availability runs out at some point that night. In earlier messages Green writes that duplicates don't generate a fee and that only final approve or decline recommendations on unique applications trigger payment. Green also writes that "we can not decision more than 250,000 unique applications" and that making loans is considered an inherently governmental function that contractors can not perform. An April 11, 2020 message reports loan sizing changes deployed to production.

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Please let me know when you have time to speak.

Thank you,
Errin

From: Bogdan Nastea [ii > SS
Sent: Monday, April 13, 2020 8:33 AM NO

To: Erin Greer ES Wy I 02)

Subject: RE: A few updates

Hi Team, a

After some more tinkering with the system on both sides of voaine Qe now able to
consistently run at nearly 2 applications processed per second. Obvi aH e are still making
changes and so processing has to be stopped at times as we spdatoo we e, but we should still be
able to hit 100k per day even with the down time. Once it’s more stable, we should be close to 175k
per day and then we can see if we can push it even faster. ~)

That said, we have processed almost 190k applications‘sg far. We have a duplication rate of 18% but
| expect that to drop at least to 15% if not closer to 1Q% or less as we have progressed past these
previous applicants who received multiple confusing emails asking them to resubmit. So if | assume
12% duplication and since all non-duplicates are at least decisioned on the advance, then we would
need to stop at 285k applications processed.

Without the contract bump, we out of contract availability at some point tonight. We should
have whatever conversations, eded to get the mod signed. Thanks.

Direct:
Email:

€ named person's use only. It may contain confidential, proprietary or legally privileged information. If you
receive this m: please immediately delete it and all copies of it from your system, destroy any hard copies of it and notify the
sender. You J J
The Host eserves the right to monitor all e-mail communications through its networks. Any views expressed in this message are those

sender, except where the message states otherwise and the sender is authorized to state them to be the views of any such

of the j it
entity
aA Went: Sunday, April 12, 2020 9:31 AM

To: Bogdan Nastea

Subject: RE: A few updates

Sorry I realize I only partially responded.
Duplicates don't generate a fee. Only final approve or decline recommendations on unique
applications trigger payment. Recommendations for review also don't trigger a payment as
these will ultimately be resolved to an approve or deny recommendation.

government make all loan decisions. Making loans is considered an inherently governmental
function that contractors can not perform. So as contractors we can only make approve/decline Cy

recommendations. si
oS

Errin Green

RER Solutions, Inc. \y
950 Herndon Parkway, Suite 410 A®
Herndon, VA 20170

Mobile: iii x

www.rer-solutions.com

The only significance of recommendation vs. decision relates to the requirement that the a&

From: Bogdan Nastea <
Date: 4/12/20 9:18 AM

I’m still a little unclear on wh i call decisions. Is a grant award a decision? A decision that an
application is a duplicate? ine recommendation? And approval recommendation? Review

recommendation? On e | w what to look for | can plan to slow the system down from processing
or stop emails.

| would insist that yes/no on advances are decisions since we incur most of the data cost up front
and use system to determine if an application should be sent an advance. If we were to process
2 milli ances but only be paid for 250,000 decisions, that would not be ideal. But please

poe Nastea | CTO
~~ apid Finance®

Direct:

S Message 1s inten: € Named person's use only. It may contain confidential, proprietary or legally privileged information. If you
receive this message in error, please immediately delete it and all copies of it from your system, destroy any hard copies of it and notify the
sender. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message if you are not the intended recipient.
The Host System reserves the right to monitor all e-mail communications through its networks. Any views expressed in this message are those
of the individual sender, except where the message states otherwise and the sender is authorized to state them to be the views of any such
entity.]
From: Errin Green

Sent: Sunday, April 12, 2020 9:11 AM

To: Will Tumulty {i >; Bogdan Nastea _i

Subject: RE: A few updates

That's fantastic news! Noy
Just a reminder that we can not decision more than 250,000 unique applications for exgs Qo
loans. If we'd like to speed up processing I'll need at least a couple of days notice a QS
approach that number.

Thanks,
Errin a
Errin Green s

CEO
RER Solutions, Inc.

950 Herndon Parkway, Suite 410
Herndon, VA 20170
Office:

-------- Original message --------
From: Will Tumulty
Date: 4/12/20 9:00 AM (GM
To: Bogdan Nastea
Looney
Errin Green -
Subject: RE: A few updates

_ , Joe

Very nice.

wis message 1s inten r the named person s use only. It may contain confidential, proprietary or legally privileged information. If you
receive this message in error, please immediately delete it and all copies of it from your system, destroy any hard copies of it and notify the
sender. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message if you are not the intended recipient.
The Host System reserves the right to monitor all e-mail communications through its networks. Any views expressed in this message are those
of the individual sender, except where the message states otherwise and the sender is authorized to state them to be the views of any such
entity.]

From: Bogdan Nastea
Sent: Sunday, April 12, 2020 8:39 AM

To: Acchione, Mark nn Will Tumulty
Subject: RE: A few updates

Looks like the 60k finished processing at 7:30 AM. We are averaging 0.45 seconds per application. (S
Rapid Decision side fell behind a little bit so we will configure a little more bandwidth on that side to we
match the pace and retest but it should work. Everything tends to be a little faster over night, but \Y
let’s say we averaged 0.55 per application, we would pace to over 150k applications per day. Rey
Bogdan Nastea | CTO ©

Rapid Finance®
Direct
S message 1s inten: or the named person's use only. It may contain confidential, proprietary or legally privilefe {a jpation If you

receive this message in error, please immediately delete it and all copies of it from your system, destroy any hard (Mi and notify the
sender. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message ifgoysar the intended recipient.
The Host System reserves the right to monitor all e-mail communications through its networks. Any views XSI this message are those
of the individual sender, except where the message states otherwise and the sender is authorized to state at) the views of any such

entity.] RQ

From: Acchione, Mark
Sent: Saturday, April 11, 2020 11:35 PM

To: Will Tumulty i ; Joc Looney
Lunsford, Todd ie : Errin Gregg,

Subject: Re: A few updates

This is OUTSTANDING! You, and your team, aré)a true magicians Bogdan. Simply
incredible!

Happy Easter and | look forward fo putting the machine to the test on monday.

Mark Acchione iS
Chief Investment Officer, mae
Rocket Loans : )

Sent: ay, April 11, 2020 11:10:55 PM

To: Ity, Will

Subject: A few updates

Hi Team,

We have tested the latest loan sizing changes and deployed the changes to production. So we
should be ready when we turn the emails back on.
Also, in order to get previously quoted and approved clients to the larger amounts, the team has
tested the approach of reverting the stage back to offer accepted. Everything worked fine. So we
could do that for all clients that are not already obligated or declined and will ask SBA to send them
an email asking them to go again to see if they qualify for more (we should provide some verbiage). gQ
We made pretty good progress with DocuSign functionality for secondary signers (for loans over >
$200k), we will have DocuSign email the secondary signers when it’s time to sign, so we don’t ha

to build additional functionality for them. We will just have to put some finishing touches on ines

Monday morning. ° oS

Lastly, our performance improvements seem to have had the desired effect. For now w

artificially keeping the pace “slower” at around 0.65 seconds per deal. | have set @ chp pf 60k deals
that | expect to be processed by the morning, and I'll double check on everythi e if Rapid
Decision and the vendors kept up with all the operations. If we see that w ely keep up this
pace (over 130k per day) then we can experiment with increasing pac ire.

Without the artificial restrictions, it was running around 0.15 second yer application, but at that
pace I’m pretty sure something would break — we just have to see what and how often. That would
be over 0.5 million applications per day. But we will see if w, payee actual hit this without high error

rates at some point. Might be a little fast for current evels anyway.

Bogdan Nastea | CTO
Rapid Finance®

Direct:
Email
[This message 1s inten or the named person:

. It may contain confidential, proprietary or legally privileged information. If you
receive this message in error, please immediat and all copies of it from your system, destroy any hard copies of it and notify the
sender. You must not, directly or indirectly, se, distribute, print, or copy any part of this message if you are not the intended recipient.
The Host System reserves the right to moni il communications through its networks. Any views expressed in this message are those
of the individual sender, except where tne states otherwise and the sender is authorized to state them to be the views of any such


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