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CEO David Burton stated that while not providing guidance, Q4 is historically the largest deployment quarter, and long-term deployment growth would move them toward their target leverage. He explained that a recession would be a net positive, citing the 2008 crisis when a manageable 10% dip in liquidations was far outweighed by a massive increase in attractively priced portfolio supply, leading to superior returns in subsequent years.

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CEO David Burton explained that leverage is expected to move into the 2.0x-2.5x target range through continued deployment growth, particularly with Q4 being a seasonally strong period. He noted that while a severe economic slowdown could temporarily decrease collections (citing a ~10% dip during the 2008 crisis), it would be a net positive overall by significantly increasing the supply of attractively priced portfolios, leading to higher returns.

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CEO David Burton explained that while not giving specific guidance, Q4 is historically the largest deployment quarter, and as deployments grow over the long term, they expect to reach the target leverage range. Regarding a slowdown, he referenced the 2008 recession, where a modest short-term decline in liquidations was significantly outweighed by a massive increase in portfolio supply at attractive prices, making a recession a net positive for the business over the medium term.

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CEO Laurence Penn explained that lower rates would boost Longbridge's business by increasing the principal borrowers can access, a factor for which they are hedged. Co-CIO Mark Tecotzky added that EFC's affiliated originators are dedicated to Non-QM, unlike larger non-banks that might pivot back to agency loans. Tecotzky also noted that while home price weakness is now more widespread, he expects muted national HPA, and Non-QM credit performance remains well-supported by securitization structures.

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CEO Laurence Penn and CFO JR Herlihy confirmed that Q4 net interest income is a good guidepost, noting ongoing liability-side improvements. They also affirmed the expense run rate, with Penn adding context on a one-time item and necessary investments in the loan business. Co-CIO Mark Tecotzky detailed their Agency strategy, emphasizing a focus on Option-Adjusted Spread (OAS) and 'pay-up convexity' for specified pools, and the carry from TBA rolls for TBA longs.

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Co-Chief Investment Officer Mark Tecotzky stated that consistent buying from insurance companies has stabilized non-QM loan prices and reduced volatility, creating a different but manageable market dynamic where they are both competitors and clients. CEO Laurence Penn clarified that the rise in operating expenses was primarily due to a one-time, non-recurring event involving the redemption of employee-held options at the Longbridge subsidiary.

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Chairman & CEO Mark Casale explained the buybacks are both opportunistic, based on a valuation-sensitive grid, and a strategic response to the significant buildup of excess capital. He emphasized the stock's valuation doesn't reflect the company's embedded value. CFO David Weinstock specified that Essent repurchased 3 million shares for $171 million in the second quarter.

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CFO David Weinstock provided the buyback figures: $157 million in Q1 and $61 million in April. He also confirmed that Essent Re's tax exemption in Bermuda expires in 2030, at which point the company expects to pay a 15% tax on earnings there. Chairman and CEO Mark Casale added that a key driver for increasing the ceding percentage was to improve the efficiency of moving cash to the holding company, not solely for tax benefits.

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Chairman and CEO Mark Casale expects the title business results in 2025 to be similar to 2024, viewing the cost as an 'option cost' for a future rate-driven rebound, and attributed the Q4 provision increase to cleanup from a prior acquisition. He confirmed hurricane defaults were in the quarter-end inventory and noted that while overall expenses should be 'relatively flattish,' guidance will change with new segment reporting. He also explained the investment portfolio is being repositioned, causing a temporary yield fluctuation.

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David Weinstock, CFO, confirmed that larger loan sizes directly impact the dollar amount of the provision. Mark Casale, Chairman and CEO, added that the average loan size has increased significantly, which will eventually also drive portfolio growth. Regarding hurricanes, Casale stated they will assess the defaults once they come in before deciding on provisioning, referencing the approach taken in 2017 where 99% of similar defaults cured.

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CFO Brian Brown stated that the plan is to continue hedging the combined MSR portfolios post-close, consistent with Mr. Cooper's current strategy of around 60-70% coverage. He noted they will re-evaluate this approach as they gather more data on actual recapture synergies. Brown also disclosed that during Q2, Rocket layered on a hedge for its own portfolio to preserve the float earnings component of the MSR value, particularly on low note rate loans.

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CEO Varun Krishna responded that the company is currently "absolutely focused" on the critical integrations of Redfin and Mr. Cooper. He emphasized that these two acquisitions are central to the company's purchase strategy by building a top-of-funnel presence and strengthening the recapture flywheel, making their successful integration the primary focus.

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Executive VP & Chief Business Officer, Zachary Carpenter, explained that the spread strength in the Farm and Ranch segment was due to a mix shift, with strong growth in higher-spread loan purchases outpacing maturities in the lower-spread AgVantage product. President & CEO, Bradford Nordholm, added that the overall spread outlook is a balance between growth in new, higher-spread business lines and the timing of AgVantage bond activity. VP & Chief Accounting Officer, Gregory Ramsey, clarified that the tax credit benefit flows through as a reduction to tax expense, while the related legal fees are included in operating expenses.

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Executive VP & Chief Business Officer, Zachary Carpenter, attributed the Farm and Ranch spread increase to a mix shift, with higher-spread loan purchases outpacing lower-spread AgVantage maturities. President & CEO, Bradford Nordholm, added that the overall spread outlook is a contest between growth in new, higher-spread segments and the potential for lower-spread AgVantage bonds to materialize, suggesting current levels are a reasonable baseline. VP & Chief Accounting Officer, Gregory Ramsey, confirmed the tax credit benefit reduces the tax expense, lowering the effective tax rate, and that related legal fees are included in operating expenses.

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Executive VP & Chief Business Officer Zachary Carpenter attributed the Farm and Ranch spread increase to a mix shift, with strong growth in higher-spread loan purchases outpacing lower-spread AgVantage maturities. President & CEO Bradford Nordholm added that the overall spread outlook is a balance between growth in newer, higher-spread segments and the timing of lower-spread AgVantage bond draws, suggesting the current level is a reasonable baseline. VP & Chief Accounting Officer Gregory Ramsey explained the tax credit benefit reduces the tax expense, lowering the effective tax rate, while the related legal fees are recorded within operating expenses.

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Executive VP & Chief Business Officer Zachary Carpenter explained that the spread strength was due to a mix shift towards higher-spread loan purchases in the Farm and Ranch segment and faster growth in newer, more accretive segments like infrastructure finance. He noted that a decline in lower-spread AgVantage balances also contributed. President & CEO Bradford Nordholm added that the outlook depends on a "contest" between growth in high-spread new segments and the timing of lower-spread AgVantage draws. VP & Chief Accounting Officer Gregory Ramsey clarified that the tax credit benefit reduces the tax expense, lowering the effective tax rate, and confirmed the related legal fees are included in operating expenses.

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Executive VP & Chief Business Officer Zachary Carpenter attributed the spread strength to a favorable business mix, with growth in higher-spread loan purchases and new segments outpacing lower-spread AgVantage maturities. President & CEO Bradford Nordholm added that this trend is expected to continue. VP & Chief Accounting Officer Gregory Ramsey clarified that the tax credit benefit reduces the tax expense and the related legal fees are included in operating expenses.

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CFO Aparna Ramesh clarified that the primary driver for the higher ROE in the Farm & Ranch segment was a reduction in nonaccrual loan activity compared to the previous quarter. Regarding funding, she explained that the company opportunistically locked in lower funding costs in Q1 when SOFR spreads were narrow, which provides a buffer against current market volatility. While not predicting the economics of the next securitization, she noted continued strong investor appetite for the asset class.

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CEO Bradford Nordholm and CFO Aparna Ramesh detailed how a mix shift and hedging strategies should support the net effective spread, noting it would likely remain flat even with a 100bps rate shock. On credit, management emphasized that recent issues are idiosyncratic, not systemic, and that loss models automatically adjust for shifts in business mix. Regarding political risk, Nordholm stated that existing renewable project tax credits are locked in and that the company can quickly adapt to any future changes in tax law.

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Executive Zachary Carpenter attributed the Farm & Ranch spread increase to a purchased loan pool with accretive spreads and noted the Corporate AgFinance decline was due to a single delinquent loan. CFO Aparna Ramesh added that a reversal of non-accruals also boosted Farm & Ranch spreads and confirmed that earnings are expected to be flat to higher in a range-bound rate environment, thanks to proactive debt management and favorable asset pricing.

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CFO Tony Park stated that FNF expects to be active with buybacks, particularly on share price weakness, but does not provide forward guidance. He clarified that the buybacks do not signal a change regarding F&G, as F&G is well-positioned with its own capital sources and FNF does not anticipate providing it with incremental capital. He disclosed that July repurchases were minimal ($5 million) due to the pre-earnings blackout period.

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CFO Tony Park explained that FNF expects to be in the market daily when not in a blackout period and views any share price weakness as a great use of capital. He clarified that the buybacks do not signal anything specific about F&G, other than that FNF does not anticipate needing to provide incremental capital to F&G, which is pursuing a capital-light strategy. Park confirmed FNF's capital priorities remain the common dividend, M&A, and share buybacks.

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CFO Tony Park indicated that share repurchases will occur on a regular, modest daily cadence outside of blackout periods and will likely be stronger than in Q1 due to a late start. F&G CEO Chris Blunt added that pressures on spreads were already abating, citing strong April sales and the deployment of excess cash into attractive investments, with an expectation for improvement going forward.

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CEO Mike Nolan explained that while they don't provide guidance, they would expect better margins in 2025 than 2024 if transactional volume increases, noting the company is well-positioned to drive strong margins with more volume. CFO Tony Park provided a detailed Q4 margin comparison, breaking down the performance of direct operations (23%), agency (7.5%), national commercial (34%), and loan care (23%), all showing significant year-over-year improvement.

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CEO Mike Nolan described the First Nationwide acquisition as a strategic, though not major, addition of a well-established player in the New York market, providing another brand to build upon as the market recovers. Regarding the post-election landscape, Nolan suggested a Republican administration could lead to a less stringent regulatory environment, which may reduce the impetus for initiatives like the title waiver pilot. However, he emphasized that the company is not taking anything for granted and will continue to advocate for the value of title insurance.

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Chairman, CEO & President Mat Ishbia explained that the margin guidance reflects a deep understanding of current market dynamics rather than a strategic shift. Regarding servicing, he clarified that costs are currently increasing due to the transition and that positive financial impacts and cost savings are expected in 2026, after the project is completed in Q1 2026.

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Chairman and CEO Mathew Ishbia confirmed that controlling the servicing process makes retaining more MSRs a more attractive option, but decisions will remain opportunistic based on market conditions. On GSE reform, Ishbia expressed confidence in the current leadership at the FHFA and HUD, stating that UWM is nimble and prepared to adapt and win under any potential changes, though he sees any major reform as being far in the future.

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CEO Mathew Ishbia responded that while the balance sheet is a factor, MSR sales decisions are primarily opportunistic and driven by market pricing. He reiterated that UWM's ability to constantly create new MSRs is a key advantage. Regarding expenses, he declined to provide a specific model but emphasized that in a high-volume scenario, the growth in margin and revenue would vastly exceed any related increase in variable costs.

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Chairman and CEO Mathew Ishbia explained that the Q4 guidance of 85 to 110 basis points reflects the current higher-rate environment. He noted that margins expand when rates drop, as seen in Q3, and that ancillary products are gaining adoption as planned, helping brokers differentiate themselves and adding to the margin.

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Founder & CEO Vishal Garg identified partners as next-gen wealth management firms, traditional FinTech lenders expanding into home equity, and large-scale fintechs that missed the last mortgage boom. Regarding profitability, Garg explained that the Tinman AI platform's higher contribution margins are key to reaching breakeven, reducing the reliance on simply scaling the direct-to-consumer (D2C) business, where labor and data costs are already declining due to AI.

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Vishal Garg confirmed that clients they are speaking with, including the new bank partner and NEO, are moving from systems like Encompass. He believes Better has a 'generational lead' because legacy systems are not equipped for modern AI. Regarding competition, he stated that partners don't view Better.com as a direct retail competitor and that when facing a potential 'extinction event,' companies are more focused on survival than on concerns about buying tools from a competitor.

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CFO Michael Roper explained that the forward-looking economic earnings power of the portfolio is already close to the 10% dividend yield on book value, with additional upside from deploying dry powder. CEO Craig Knutson clarified this referred to yield on book value, not stock price. President & CIO Bryan Wulfsohn added that while Non-QM, Agency MBS, and business purpose loans are all attractive, they would prioritize growing business purpose loan originations at Lima One for their higher ROE potential.

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CFO Michael Roper quantified the Q2 impact from swap expirations at approximately $0.02 per share. He noted that while the timing of loan resolution losses is difficult to predict, the total credit discount on the multifamily transitional book is around $40 million. President and CIO Bryan Wulfsohn added that mid-to-high teens ROEs are achievable in both agencies and non-QM, while BPLs can exceed 20%.

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An executive, Harold Schwartz, stated the economic return is around 10%, which aligns with the dividend, and clarified that expiring swaps do not affect the economic outlook. He quantified the DE impact as a drop from a $0.09 contribution in Q4 to $0.02 in Q1. CEO Craig Knutson emphasized that the Board prioritizes the portfolio's overall economic earnings power over a specific DE number. President & CIO Bryan Wulfsohn added that new Agency MBS offer hedged returns in the mid-teens.

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CFO Michael Roper disclosed a $15 million credit mark on the multifamily portfolio during the quarter, with the total portfolio having a UPB of $1.1 billion. President & CIO Bryan Wulfsohn added that the BPL market is competitive, but MFA is focused on regaining volume by adding talent and improving its sales, marketing, and technology efforts.

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President and CEO Phillip Kardis confirmed that Chimera remains open to synergistic acquisitions within its core residential credit competency. CIO Jack Macdowell added that while market dynamics are a factor, the company is building a foundation for higher earnings through the Home Express acquisition, optimizing its existing portfolio of callable securitizations, and growing its fee-based businesses.

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CIO Jack Macdowell clarified that hedges are primarily for floating-rate repo liabilities, not book value protection, so their roll-off will not materially impact book value volatility. He confirmed the total new deployable capital is approximately $287 million, comprising $187 million from re-securitizations and an additional $100 million from refinancing two structured repo facilities.

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EVP & CFO Sean O'Neil explained that professional services expenses can fluctuate based on financing structures or litigation and the recent change was not significant. Regarding the DTA, he stated that its reversal would be viewed by counterparties as an improvement to equity. He added that while the bulk of federal NOLs are indefinite, some state NOLs have expiration dates, but the company expects to utilize them beforehand.

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The company clarified that professional services expenses can fluctuate and the recent change was not significant. Regarding the DTA, its reversal is expected to be viewed as an equity improvement by counterparties. The variables for reversal are detailed in the annual K filing, and while some state NOLs expire, the bulk of federal NOLs are indefinite and expected to be utilized.

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EVP, CFO & Chief Risk Officer Nathan Colson stated that national home price forecasts are generally flat, though regional performance may vary. He emphasized that the company's granular, risk-based pricing model allows for dynamic adjustments to market-specific risks and that slowing appreciation is a long-term de-risking factor. Regarding expenses, Colson confirmed that the full-year operating expense guidance of $195 million to $205 million already incorporates the $4 million Q2 pension charge, as well as expectations for smaller, similar charges in the second half of the year.

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Nathan Colson, EVP, CFO & Chief Risk Officer, responded that national home price forecasts are generally flat, with notable regional variations. He highlighted that MGIC's dynamic, risk-based pricing model allows for granular adjustments to market-specific risks. Colson also confirmed that the $4 million pension charge is included within the reiterated full-year operating expense guidance of $195 million to $205 million.

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CEO Timothy Mattke attributed higher DTIs to housing affordability pressures, noting that strong offsetting credit characteristics and risk-based pricing mitigate the risk. CFO Nathaniel Colson clarified that for new notices received in 2023, the ultimate claim rate expectation is now 3-5%, down from the initial 7.5%, and for more seasoned 2021-2022 notices, it is even lower at 1-3%.

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CEO Tim Mattke attributed the NIW growth to gaining market share by being more aligned with market pricing, while emphasizing a long-term focus on returns over quarterly share fluctuations. CFO Nathan Colson addressed the credit question by stating the company de-emphasizes mark-to-market LTV on delinquent loans, as losses can occur even with home price appreciation, and the focus remains on loans in areas not experiencing average appreciation.

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CEO Timothy Mattke described the meeting with the FHFA Director as an introductory 'meet and greet' to establish a relationship, stating he doesn't expect private mortgage insurance to be a top priority. Regarding the merger, Mattke noted that while they are following it closely, it is tough to know the exact operational outcomes and he does not see a direct read-through or impact for the MI industry at this time.

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President Nicholas Mah detailed the expected returns, stating that fully hedged agency RMBS yields are in the mid-teens. He compared this to mid-to-high teens for BPL rental and bridge loans, and low-double-digits to low-teens for the multifamily mezzanine loan portfolio, which supports the strategic rotation into the company's core single-family strategies.

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CFO Kristine Nario explained that the growth in adjusted net interest income, now at $0.36 per share, is getting closer to aligning with the current $0.20 dividend. CEO Jason Serrano added that the company's goal for its excess liquidity is to rotate it into the agency market and residential credit, with a near-term constructive view on agency bond acquisitions due to the normalizing yield curve.

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President Nicholas Mah confirmed that past book value volatility primarily stemmed from the multifamily JV equity book, which now has a minimal remaining value of $19 million with clear resolution paths for most assets. He stated that with this portfolio nearly wound down, the volatility should subside. Mah also provided a quarter-to-date update, noting that adjusted book value was down between 1% and 2%.

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CEO Rick Thornberry explained that the mortgage conduit business was the primary driver of the segment's loss, with an impact of approximately $9 million in the quarter due to spread volatility and mark-to-market adjustments on a growing portfolio. He also noted the company decided to discontinue investment in its real estate technology business. While not providing a specific breakeven timeline, he mentioned the title business saw revenue growth and that the team is focused on achieving a positive contribution from the remaining businesses.

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CEO Rick Thornberry clarified that the increased loss in the 'All Other' segment was primarily driven by the mortgage conduit business, which experienced a $9 million negative impact from mark-to-market adjustments and spread volatility. He also announced a decision to discontinue investment in the real estate technology part of the former HomeGenius business. While the title business is seeing some growth, Rick Thornberry noted that the segment's volatility comes from the conduit business and that the team is actively working to find avenues for growth and positive contribution.

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CEO Rick Thornberry explained that the 'All Other' segment's increased loss was primarily driven by the mortgage conduit business. He specified a $9 million negative impact from mark-to-market adjustments on a growing loan pipeline and higher related expenses. He also noted that Radian decided in Q2 to discontinue investment in the real estate technology business, previously part of the HomeGenius segment, and that the title and real estate services businesses were relatively stable.

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CEO Rick Thornberry clarified that the increased loss in the "All Other" segment was primarily driven by the mortgage conduit business, which experienced a negative mark-to-market impact of approximately $9 million due to spread volatility. He noted that the company has decided to discontinue investment in its real estate technology platform. He added that the title business saw revenue growth, and the segment's volatility was not from the title or real estate services operations.

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CEO Rick Thornberry explained that the 'All Other' segment's results were impacted by about $9 million from mark-to-market spread volatility in the mortgage conduit business. He also noted the decision to discontinue investment in the real estate tech platform. Mr. Thornberry mentioned that while the title business saw some growth, the segment's volatility was primarily from the conduit business and a $4 million inter-company accounting reclassification. He stated the team is focused on finding growth and positive contribution, with more updates to come.

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CEO Rick Thornberry clarified that the increased loss in the 'All Other' segment was primarily due to a $9 million negative impact from mark-to-market volatility on interest-only instruments within the mortgage conduit business. He also announced a decision to discontinue investment in the real estate technology platform, formerly part of HomeGenius. Thornberry noted that while the title business grew, the segment's volatility came from the conduit business and a $4 million inter-company accounting reclassification, not the core real estate services. He indicated that future strategic plans for the segment are still being developed.

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President and CFO Sumita Pandit confirmed an accelerated pace of buybacks in Q1 ($207 million) and expects a similar level in Q2, citing the stock's attractive valuation and ample holding company liquidity. CEO Richard Thornberry highlighted Radian's consistent track record, having repurchased 39% of shares over 7 years. Ms. Pandit noted that while there is no formal payout ratio guidance, up to $795 million in distributions can move from the insurance subsidiary to the parent company in 2025. She also confirmed that approximately 75% of new defaults have more than 20% equity.

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CFO Sumita Pandit explained that the leverage reduction was a strategic use of excess liquidity and the company is comfortable with its current leverage level, which organically delevers over time. Regarding capital returns, she highlighted the strong dividend capacity from Radian Guaranty but refrained from setting a specific payout target, instead pointing to the company's consistent track record of returning capital to shareholders.

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EVP, CFO & Treasurer Dean Mitchell acknowledged that while HPA has slowed, the aggregate amount on new delinquencies this quarter remains substantial and serves as a significant loss mitigant. He clarified that the 9% claim rate assumption for new delinquencies is not aligned with current performance but is a prudent measure reflecting heightened economic uncertainty. He noted that actual performance has been meaningfully better, which has been the primary driver of the company's consistent reserve releases, including the $48 million release in Q2.

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CFO and Treasurer Dean Mitchell confirmed that there has been no change in the low level of borrower-initiated cancellations, with most lapses still driven by refinancing or loan amortization. Regarding 'other income,' Mitchell explained it includes contract underwriting services and other items, and advised that a run rate closer to $1 million would be more typical than the $2 million reported in Q1, which was slightly inflated by a non-recurring reinsurance-related item.

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CFO and Treasurer Hardin Mitchell stated that there has been no change in borrower-initiated cancellation behavior, with most lapses driven by refinancing and loan amortization. He clarified that 'other income' includes contract underwriting services and that the current quarter's figure was slightly inflated, suggesting a more normal run rate would be closer to $1 million.

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Hardin Mitchell, Chief Financial Officer and Treasurer, explained that the $350 million capital return guidance is the current plan but will be reassessed based on performance, market conditions, and the regulatory landscape, noting a similar mid-year guidance increase occurred in 2024. Rohit Gupta, President and Chief Executive Officer, added that the reinsurance business (Enact Re) is well-positioned to grow if GSEs increase their risk-transfer activities, which would represent an attractive opportunity for capital deployment.

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CFO and Treasurer Dean Mitchell detailed that delinquency curves typically plateau between years 3 and 4, but the level is highly dependent on a book's specific credit characteristics and the macroeconomic environment. President and CEO Rohit Gupta clarified that most buydown volume comes from permanent, fixed-rate forward commitments by builders, not temporary buydowns. He added that all loans are qualified at the fully indexed rate and that historical data does not show a difference in credit performance for these products.

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CFO Brooke Carillo confirmed the 9-12% EAD target is a blended number calculated on the full book value. CEO Christopher Abate explained that moving the HEI portfolio accelerates the company's transition to a capital-light model, allowing them to redeploy appreciated capital into higher-return operating platforms. He added that they "leaned in" on the marks to reflect actionable levels for disposition, driven by a conviction to transition the business model quickly.

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CFO Brooke Carillo clarified that Q4 EAD was impacted by temporary factors and would have been higher normalized. She identified growing net interest income, lower funding costs, and capital optimization as key future drivers. CEO Christopher Abate affirmed the Board's commitment to the dividend, citing strong liquidity, and stated that based on strong forward-looking volume metrics, they expect EAD and the dividend to converge over the next few quarters.

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CFO Brooke Carillo attributed roughly half of the mortgage banking revenue outperformance to interest rates, with the remainder split between spread tightening and gain on sale. CEO Christopher Abate noted that lock volumes accelerated through Q3 and that October started strong, with consistent securitization activity supporting healthy margins.

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President & CEO Adam Pollitzer stated that NMIH does not expect the FHFA's proposal to have a consequential impact, as access and affordability will remain policy priorities regardless of the specific program. On the tax deduction, he explained that since the Tax Cuts and Jobs Act, approximately 90% of filers take the standard deduction, meaning the MI deduction provides a meaningful benefit to a deserving but smaller subset of borrowers who itemize.

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President and CEO Adam Pollitzer responded that the company's pricing models already incorporate conservatism for potential downturns, so while they monitor emerging risks, it does not lead to wholesale strategy shifts. Both Adam Pollitzer and CFO Aurora Swithenbank clarified that the provision for new notices was approximately $26 million in aggregate for Q1, which is consistent with Q4 on a per-notice basis after normalizing for disaster-related notices and other factors.

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President and CEO Adam Pollitzer confirmed that share repurchases remain the primary capital return tool, with a dividend being a future possibility as cash flows to the holding company grow. He also noted that while NMI continues to monitor markets like Texas and Florida for higher inventory, there have been no fundamental changes to its risk outlook.

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CFO Aurora Swithenbank stated the mark-to-market LTV on the defaulted portfolio is roughly 73%. President and CEO Adam Pollitzer added that reserves are established with the expectation that a subset of delinquent loans will progress to a claim. Regarding yields, Swithenbank reported the current portfolio yield is 3.1%, while new money is being invested at approximately 5%.

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William Greenberg, President & CEO, explained that the EAD metric is based on historical purchase yields, making it asynchronous, while the return outlook slide reflects forward-looking mark-to-market yields. William Dellal, VP & CFO, added that EAD will likely trend below the economic return due to recent spread widening. Nicholas Letica, VP & CIO, stated that a payout of the reserved capital would not fundamentally change their general view or approach to leverage, though it would be a factor in managing asset composition.

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Chief Investment Officer Nick Letica confirmed that the estimated $0.03 increase in return potential applies to both the high and low ends of the projected range. He also affirmed the company's confidence in its ability to support the dividend at current levels, citing the benefit of wider spreads and the current portfolio composition.

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Chief Investment Officer Nicholas Letica attributed the wider range to increased variability in prepayment expectations and repo funding rates. He confirmed that with the recent rise in rates and spread widening, the current return profile is moving back towards, and potentially even wider than, the previous quarter's levels, making mortgage spreads look very attractive.

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Chairman, President & CEO Michael Nierenberg explained that a separate NewRez listing is not imminent, as the current focus is on organic growth and increasing earnings. He stated that value creation will be driven by scaling the asset management business through bolt-on acquisitions in credit and insurance. Nierenberg clarified that any insurance M&A would likely occur at the Rithm level, starting with a smaller, scalable platform rather than through the SPAC.

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Michael Nierenberg, Chairman, President & CEO, stated that a separate listing for NewRez is not planned for today, as the immediate focus is on growing the business's earnings and third-party servicing footprint. He emphasized that growing the asset management business is the primary driver for unlocking value and that Rithm is actively pursuing M&A in credit and insurance, though with valuation discipline. He added that any insurance acquisition would likely be a smaller platform to grow from the Rithm level.

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Michael Nierenberg, Chairman, CEO, and President, explained that while a Newrez listing isn't imminent, preparatory steps like separate segment reporting are complete. He stated the goal is to restructure into a C-corp with a dedicated REIT and operating companies below to unlock shareholder value, expressing a hope to achieve this in 2025 to address the company's undervaluation. He also noted that any potential SPAC would be a Rithm company designed to create more fee-earning businesses.

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Michael Nierenberg, Chairman, CEO, and President, explained that while a Newrez listing is a goal, the company is "not there yet" and must first grow the scale of its REIT. He hopes to achieve the C-corp structure in 2025 but gave no firm timeline. He clarified that any potential SPAC would be a Rithm company, not part of Sculptor, to create new fee-earning businesses.

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Chairman, CEO, and President Michael Nierenberg stated that a potential public listing for Newrez is being evaluated as a way to address the company's equity valuation, suggesting it would likely be a 2025 event. He also confirmed that the company's book value was approximately $12.50 per share as of October.

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Chairman, CEO, and President Michael Nierenberg responded that a public listing for Newrez is more likely a 2025 event as the company continues to evaluate its options, including M&A. He also confirmed that the current book value is approximately $12.50 per share.

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Daniel Perotti, Senior MD & CFO, clarified that the run-rate ROE increase was driven by multiple factors. These include retaining non-agency senior and IO MBS (contributing to the interest rate-sensitive strategies), an improved outlook for volumes and margins in correspondent production, and additional investments in high-return non-agency subordinate MBS (contributing to the credit-sensitive strategies).

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CFO Daniel Perotti clarified that the increase was driven by multiple factors. The net interest rate sensitive strategies benefited from retaining senior and IO MBS from securitizations. The correspondent production segment's outlook improved due to higher expected volumes and margins. Additionally, new investments in non-agency subordinate MBS, which are part of the credit sensitive strategies, also provided a positive contribution to the overall run-rate return potential.

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EVP & CFO Daniel Perotti reported a 2-3% post-quarter book value decline due to rate volatility and spread widening, noting that hedging has contained the impact and the current run-rate ROE reflects these conditions. Chairman & CEO David Spector emphasized the stability provided by their non-mark-to-market CRT financing. Perotti then clarified that PMT does not necessarily expect to increase its proportion of loan acquisitions, as the current focus is on deploying capital into credit-sensitive strategies rather than creating more MSRs.

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Executive Daniel Perotti explained that the overall steepness of the yield curve benefits the interest rate-sensitive strategies, regardless of whether the long end rises or the short end falls. He also clarified that PMT generally employs a tighter MSR hedge than PFSI due to its portfolio's higher concentration of lower note rate loans and receiving a smaller share of recapture benefits.

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Executive Daniel Perotti confirmed PMT is fairly agnostic to how the curve steepens, as the key driver is the spread between long-term asset yields and short-term financing rates. Executive David Spector noted that jumbo securitization returns are approaching their targets but are not there yet. He described the whole loan buyer base as deep and diverse, consisting of non-bank entities like insurance companies and private equity-backed conduits, but not traditional banks.

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CEO Mark Seaton responded that the Q3 margin will be highly dependent on the strength of the commercial business, and while it's possible to approach Q2's level, it is not the current expectation. Regarding the FHFA pilot, he described it as a limited-scope program for low-risk refinances that they are monitoring. He confirmed communication with regulators and emphasized that First American is well-positioned with its data and distribution network should the market evolve toward title waivers.

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CEO Mark Seaton responded that Q3 margin performance will heavily depend on the strength of the commercial business, and while it's expected to be strong, it is not currently expected to exceed the record level set in Q2. Regarding the FHFA, Seaton confirmed the title waiver pilot is underway with Fannie Mae, limited to low-LTV refinance transactions. He stated that First American is in communication with the FHFA and GSEs and is monitoring the pilot. He emphasized that if the market were to shift towards waivers, First American's unique data assets and distribution network would provide a significant competitive advantage.

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CEO Mark Seaton responded that Q3 margin performance will heavily depend on the strength of the commercial business. While a similar margin is possible if commercial results are exceptionally strong again, it is not the company's current expectation. Regarding the FHFA, Seaton confirmed the title waiver pilot is underway with a limited scope for low-LTV refinances. He stated that First American is monitoring the situation, has been in communication with the FHFA, and believes the company is well-positioned with its data and distribution assets if the market were to shift in that direction.

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CEO Mark Seaton quantified the margin impact from the initiatives at 130 basis points for the quarter, noting it should narrow as earnings grow. He explained that as these platforms become more integrated, separate disclosure will be less meaningful. He confirmed the company is carrying redundant costs by supporting new platforms alongside legacy systems, but this is a transitional phase. The long-term goal is to decommission older systems, which will reduce costs and enhance productivity.

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CFO Mark Seaton quantified the full-year 2025 pretax income benefit from the portfolio rebalancing at $42 million, which he confirmed equates to roughly 50 basis points of margin. CEO Ken DeGiorgio noted this was a baseline for improvement, with potential for more from cost controls. Seaton explained that while the $42 million benefit is largely offset by a $45 million headwind from Fed rate cuts, they still expect overall investment income to grow year-over-year due to market growth and strategic deposit initiatives.

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CEO Kenneth DeGiorgio expressed strong conviction for the 2024 margin outlook and expects further improvement in 2025, but deferred providing a new normalized range. He confirmed a significant opportunity to reduce technology spend by centralizing and simplifying operations, such as shifting from third-party contractors to in-house staff, without compromising key innovation projects.

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CEO & Co-CIO David Finkelstein reported that book value was up approximately 0.5% quarter-to-date, resulting in a 1.5% economic return. He affirmed confidence in the dividend, noting that the company has consistently out-earned it and expects to continue doing so. Finkelstein explained the goal is for the economic return to approximate the dividend yield, and he feels good about the current environment's potential to achieve this.

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CEO David Finkelstein reported that book value was up approximately 0.5% quarter-to-date. He affirmed the company's confidence in the dividend, stating they have out-earned it and expect to continue covering it for the remainder of the year, with the portfolio's economic return goal being to approximate the dividend yield.

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CEO David Finkelstein explained that swap spreads have tightened due to a flight to quality amid volatility, but he anticipates they will normalize and widen as market confidence returns. He also noted that expected regulatory reforms, such as changes to the SLR and Basel endgame, should serve as a tailwind for swap spread widening in the coming quarters, which would be beneficial.

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CEO David Finkelstein explained that MBS spread widening relative to swaps was driven by market volatility and a flight to quality. He anticipates swap spreads will widen as volatility subsides and noted that expected regulatory reforms, such as changes to the SLR and Basel endgame, should provide a tailwind for the market in the coming quarters.

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CEO David Finkelstein confirmed that the current earnings level is in line with the portfolio's potential, supported by current spreads and lower expenses. He suggested Q1 2025 earnings would be comparable and expressed confidence that the dividend is well-covered and feels safe for 2025, pending quarterly board review.

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CEO David Finkelstein confirmed that the current earnings level is reasonably contextual given stable spreads and lower expenses, and he anticipates Q1 earnings will be similar. He also expressed confidence that the dividend is safe for 2025, noting the board's rigorous quarterly evaluation process and an optimistic outlook.

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CEO Fred Eppinger stated he feels good about the commercial pipeline and expects continued growth, though likely not at the 45% rate seen in Q2. He attributed the 25% agency growth to increased resourcing and enhanced commercial capabilities for agents. Eppinger explained the agent retention rate decline is due to geographic mix, particularly lower share in high-split states like Florida. CFO David Heisey and Eppinger noted that higher investment income was driven by reinvesting at higher yields and increased balances, with potential future upside from growth in the commercial business.

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CEO Frederick Eppinger explained that the 'other orders' line will remain choppy but is expected to be slightly better than the prior year. Regarding Real Estate Solutions margins, Eppinger clarified that a temporary margin dip was caused by a timing issue related to passing on increased credit data costs to clients, a process completed between January and April. He expects margins to normalize back to the low teens (11.5%-12%) for the remainder of the year.

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CEO Frederick Eppinger projected low single-digit growth for the Commercial market in 2025, noting current choppiness but continued strength in sectors like data centers. Regarding Real Estate Solutions margins, Eppinger and CFO David Hisey explained that Q4 margins were impacted by temporary startup costs and vendor price increases. They anticipate a rapid improvement as customer contract repricing was actively being implemented, with a full-year cash margin goal of around 13%.

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CEO Frederick Eppinger attributed the higher commercial fee per file to the business mix, specifically larger deals in the alternative energy sector, noting the figure can be volatile. Both Eppinger and CFO David Hisey explained that the increase in 'other' orders was driven by large bulk transactions, such as those in the single-family rental business.

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CFO Daniel Perotti stated that Q2's servicing profitability was lower due to some quarter-specific items and expects it to return to the 9-10 basis point range seen in prior quarters, driven by normalization in amortization and other expenses. He clarified that the cross-channel volatility was primarily due to spread volatility in non-agency and other loan products during the quarter.

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Executive Daniel Perotti clarified that the hedge ratio is dynamic; it's lower when production income is more rate-sensitive, which can lead to positive or negative GAAP impacts depending on rate direction. He stated that the long-term relationship between GAAP and operating ROE depends on the yield curve and volatility. Perotti also agreed that reaching the $2 trillion market forecast would likely require episodic refinance volume driven by rate volatility.

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Executive David Spector confirmed that new customer acquisition is a major strategic focus for 2025. He indicated that the company is making a significant commitment to building the PennyMac brand and will be making a series of related announcements in the coming quarter, including direct marketing for purchase transactions.

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Daniel Perotti (executive) clarified that the hedge covered 78% of the MSR value change, which was in line with their adjusted target of 80-90%. He attributed elevated hedge costs in Q3 to rate volatility and the inverted yield curve, noting costs have since normalized. He stated that over longer periods, GAAP ROE and operating ROE should converge closely, though GAAP ROE may remain slightly lower due to some persistent hedge costs.

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Peter Federico, President, CEO & CIO, confirmed that a 50/50 blend of swap and treasury hedges is the right long-term mix, though they are currently overweight swaps to benefit from expected spread widening. He also affirmed that the decline in the portfolio's lifetime CPR was a direct result of higher forward mortgage rates implied by the steepening of the long end of the yield curve during the quarter.

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Peter Federico, President, CEO, and CIO, explained that while the company's total cost of capital has risen to about 18% due to the book value decline, the go-forward expected returns on the portfolio are now between 19% and 22%. He stated that these higher expected returns, driven by historically wide mortgage spreads, align well with the cost of capital, supporting the dividend.

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Peter Federico, Director, President and CEO, explained that equity issuance is opportunistic, driven by accretion benefits for existing shareholders rather than a goal of growth for its own sake. He detailed that while treasury-based hedges currently offer better market value protection due to tight swap spreads, a future rotation back to swap-based hedges could increase carry and ROE, assuming swap spreads stabilize.

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Peter Federico, President and CEO, confirmed the hedge repositioning is designed to benefit from expected yield curve steepening, with nearly 80% of hedges now 7 years or longer. He affirmed that core earnings should align with long-run economic returns over time, explaining that the recent decline in net spread income was due to maturing low-cost swaps and a strategic shift to treasury-based hedges, whose positive carry is not captured in that specific metric.

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Co-CEO Smriti Popenoe explained that current leverage reflects a return to a more normal risk environment and that raising common equity above book value is currently the most accretive strategy. CIO T.J. Connelly added that leverage was increased methodically as policy uncertainty lifted and confirmed that book value was nearly unchanged quarter-to-date after accounting for the accrued dividend.

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Chief Investment Officer Terrence Connelly responded that repo funding costs have been remarkably stable, ranging from 15 to 17 basis points over SOFR, with strong availability. He added that swaps are considered a more natural hedge for their mortgage portfolio and that the company is comfortable with its current hedge composition.

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CIO Terrence Connelly explained that swap spreads reached levels that adequately compensate for potential fiscal issuance and that the shift could add 200-300 basis points to marginal ROE. CFO Robert Colligan clarified the accounting differences, noting futures gains are amortized on a straight-line basis while swap income follows the swap curve. Co-CEO Smriti Popenoe added that book value was essentially flat quarter-to-date.

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Co-CEO, President, and CIO Smriti Popenoe stated that the decision to increase leverage hinges on navigating near-term event risks like the U.S. election. Post-election, the focus will be on the macro environment and marginal ROEs. She confirmed the hedge switch to swaps does capture the 40 bps differential, which also allows Dynex to lock in favorable forward financing costs, a key factor supporting the recent dividend increase.

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CIO Nick Smith noted a slight consumer pullback in home purchases but believes Arc Home is somewhat insulated and expects gain-on-sale margins to normalize or improve. CEO T.J. Durkin explained that with Arc Home no longer a headwind, its expected positive contribution to EAD will directly augment the investment portfolio's stable earnings, driving future growth.

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Chief Investment Officer Nicholas Smith detailed that MITT has approximately $75 million to $100 million in capital that can be rotated or newly deployed, stemming from maturing CRE positions, inefficient financing roll-offs from the WMC acquisition, and other potential rotations. CEO T.J. Durkin added that the company is comfortable with its current leverage ratios, has been managing them for some time, and is actively monitoring the market for new preferred deals.

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Chief Investment Officer Nicholas Smith stated that the home equity sector is expected to "dominate the next quarters and years" in terms of capital deployment. He added that as assets mature, there is room to redeploy equity and take on additional leverage to drive ROEs higher, noting the company's current aggregate economic leverage is modest.

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CEO and President T.J. Durkin acknowledged that Q3 is an interim period ahead of a September note maturity and that the company is actively working to avoid cash drag. He indicated the portfolio would normalize prospectively but stated it was too early to provide a quarter-to-date book value update.

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CEO Jay Bray stated that correspondent share is expected to continue growing, driven by the company's scale and cost leadership. CFO Kurt Johnson confirmed that Q1 will include a full three months of Flagstar production. Regarding the PPO business, Bray explained that after a strategic review, the company decided the broker channel was not a business they wanted to pursue, but they ensured a smooth transition for the team members to a new partner.

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Chairman and CEO Jay Bray clarified that the bulk opportunity has not played out and will continue to be a factor, but that the company intends to grow the correspondent channel significantly beyond the past quarter's levels. He reiterated that capital deployment will remain disciplined, directed toward the best opportunities. CFO Kurt Johnson addressed the expense question, clarifying the corporate expense was $53 million, not $72 million, and that it included some one-time costs. He guided for it to return to the prior run rate of around $40 million in Q4.

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President and CEO Robert Crowl affirmed that the sale represents a superior path for shareholders compared to dissolution, as detailed in their analysis. CFO Mike Bogansky stated he could not comment on Ocwen's future plans for the deferred tax asset.

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Robert B. Crowl, President and CEO, explained that an excess MSR sale would be a potential alternative for monetization. Regarding the direct-to-consumer initiative, he described it as a natural extension of the existing call center that would require investment in technology and marketing, likely involving an MSR partner for gain-on-sale economics.

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President and CEO Robert Crowl explained that the business development group is in its early stages, targeting banks, credit unions, and REITs, with positive market receptivity and a goal of 10% unit growth. He noted the New Residential contract fees are not public. CFO Michael Bogansky added that expense reductions will affect both direct costs from the private label wind-down and corporate shared services.

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