10 March 2014 Good Afternoon! I know you've received several communications from Primary Capital Mortgage recently and I appreciate you taking the time for this one as well.  One reason you are receiving so much from PCM is because there are a lot of great things going on and we want to keep you informed!  In this letter, I would like to provide some perspectives driving our strategy and introduce a few of the key people we have brought on board. We all see the highly competitive market that exists today and there is little on the horizon to suggest it will change in the near term.  Compounding the difficult environment is the recent onslaught of unprecedented regulation of the mortgage industry, which challenges the operational capabilities and financial viability of many lenders.  Sitting in your chair, it can be difficult to predict which lenders will be around one year from now and of those, which can consistently serve your needs across the spectrum.  We believe that in order to survive and thrive in this new environment, mortgage companies require:

1. Significant Capital2. Superior Service3. Talented People4. The ability to access Capital Markets for Non-Agency Mortgage Backed

Securities (MBS)  We have significant capital in the Company and additional capital available from PCM's parent, Resource Capital Corp. (NASDAQ:RSO).  PCM provides great service and the team is working every day to improve the experience for all of our key constituents (applicants, brokers, referral sources, correspondents, etc.).  None of this happens without great people and PCM is rich with talent.  The fourth critical component is developing a capability to issue non-Agency MBS in support of expanded product capabilities.   We have hired three individuals with significant experience in all aspects of Non-Agency MBS:   Brian Bernard joined in January from JPMorgan, where he ran the firm's Non-Agency MBS banking business.  He has been around the industry for over 25 years and is highly respected by investors, Wall Street conduits, Non-Agency warehouse lenders and industry professionals.  Brian was also a senior banker at RBS Greenwich Capital Markets (see full profile here).  Brian is responsible for managing our access to warehouse lending and ultimate securitization of Non-Agency assets. Robert Newman also joined the team in January.  Robert ran a proprietary trading desk at Citigroup.  Previous to Citi, he worked at C-Bass where he managed over $50Billion of securitization issuance and served as portfolio manager on a $2Billion RMBS securities portfolio (see full profile here).  Robert has purchased over $30Billion of non-Agency whole loans during his career and has a deep understanding of pricing, hedging and positioning Non-Agency assets.  Robert will

1000 Parkwood Circle | Suite 600 | Atlanta | Georgia | 30339www.primarycapital.com

build out our investment in assets acquired in the secondary market, assist in hedging activities and work with Brian on warehouse and securitization facilities. Steven Schallop joined in October, 2013.  Steve ran analytics at C-Bass and RBS Greenwich Capital Markets.  During his 24 year career he has worked at DLJ, First Boston and Prudential Bache Securities (see full profile here). Steve is responsible for building our analytic capabilities to evaluate assets in the secondary market and structure securitizations. As you can see, we have invested heavily in hiring highly-experienced people who have the knowledge, experience and relationships to develop reliable access to capital markets.  This allows PCM to offer non-Agency products and evolve our product offerings over time. Thank you for the business you have done with PCM.  We look forward to doing more together as PCM evolves.   If you have any questions or wish to discuss our strategy, please do not hesitate to call me at (212) 506-3850. 

 

Anthony ConiglioSVP, Resource America AConiglio@ResourceAmerica.comPhone:  (212) 506-3850 

1000 Parkwood Circle | Suite 600 | Atlanta | Georgia | 30339www.primarycapital.com