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    Bradley Capuzzi • Piper Sandler & Co.

    Bradley Capuzzi's questions to AG Mortgage Investment Trust Inc (MITT) leadership

    Bradley Capuzzi's questions to AG Mortgage Investment Trust Inc (MITT) leadership • Q4 2024

    Question

    Bradley Capuzzi of Piper Sandler Companies asked for management's high-level thoughts on Arc Home's origination volume outlook for 2025 and their current view on dividend coverage by Earnings Available for Distribution (EAD).

    Answer

    Chief Investment Officer Nicholas Smith stated that Arc Home's non-agency focused model is more resilient than the broader mortgage market and expects continued growth due to investments in the platform. CEO T.J. Durkin explained that Arc Home's drag on EAD has neutralized and is expected to become a positive contributor in 2025, providing the necessary tailwind to support dividend coverage going forward.

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    Bradley Capuzzi's questions to AG Mortgage Investment Trust Inc (MITT) leadership • Q3 2024

    Question

    Bradley Capuzzi asked for the company's outlook on its dividend coverage, given the recent dip in EAD, and how the team is positioning the portfolio for potential volatility related to the U.S. elections.

    Answer

    CEO T.J. Durkin addressed dividend coverage by highlighting plans to rotate $40-$50 million of capital into higher ROE opportunities, such as home equity loans with expected 20% ROEs, and noted the improving profitability trend at Arc Home. Regarding election volatility, Durkin stated that MITT is fundamentally less exposed due to its credit-focused, low-leverage portfolio and sees long-term tailwinds from bank retrenchment regardless of the political outcome.

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    Bradley Capuzzi's questions to AG Mortgage Investment Trust Inc (MITT) leadership • Q2 2024

    Question

    Bradley Capuzzi of Piper Sandler & Co. asked for an update on the demand for securitizations and the outlook for Arc Home's origination volumes through 2025, including the rate environment needed for normalization.

    Answer

    Chief Investment Officer Nicholas Smith described the securitization market as healthy but sector-specific, with non-QM debt performing well while prime jumbo faced some pressure. For Arc Home, he anticipates continued growth driven by efficiency gains, though volumes will be seasonal. He noted the trajectory is still up, aligning generally with MBA forecasts.

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    Bradley Capuzzi's questions to UWM Holdings Corp (UWMC) leadership

    Bradley Capuzzi's questions to UWM Holdings Corp (UWMC) leadership • Q4 2024

    Question

    Bradley Capuzzi from Piper Sandler asked for an update on competitive dynamics and pricing rationality in the broker channel. He also inquired about the interest rate hedges from 2024 and whether they would continue into 2025.

    Answer

    CEO Mathew Ishbia asserted that UWM controls pricing in the wholesale channel, with competitors following their lead, and has not seen an increase in irrational pricing competition. He clarified that the hedges were a temporary measure to protect against volatility around the election, were removed in December, and are not part of the current 2025 plan, though this could be reassessed.

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    Bradley Capuzzi's questions to UWM Holdings Corp (UWMC) leadership • Q3 2024

    Question

    Bradley Capuzzi from Piper Sandler asked for an update on competitive dynamics within the broker channel and whether pricing is expected to remain rational. He also inquired about the company's forward-looking strategy for MSR sales.

    Answer

    Chairman and CEO Mathew Ishbia asserted UWM's dominance in the wholesale channel, stating they control margins and are unconcerned by competitors' commentary. On MSRs, he explained that sales are opportunistic, driven by cash needs and attractive multiples, and that the company is not required to sell, managing the portfolio based on what is best for the business.

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    Bradley Capuzzi's questions to Redwood Trust Inc (RWT) leadership

    Bradley Capuzzi's questions to Redwood Trust Inc (RWT) leadership • Q4 2024

    Question

    Bradley Capuzzi, on behalf of Crispin Love at Piper Sandler, asked about the competitive landscape for Business Purpose Lending (BPL) and the expected trend for corporate leverage in 2025.

    Answer

    President Dashiell Robinson described the BPL competitive environment as a tailwind, highlighting Redwood's advantages in product depth and distribution channels. CFO Brooke Carillo projected that recourse leverage would generally trend around 2.4x, with potential for temporary increases based on the timing of large portfolio acquisitions, and confirmed the company's strong liquidity position to support these activities.

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    Bradley Capuzzi's questions to Redwood Trust Inc (RWT) leadership • Q3 2024

    Question

    Bradley Capuzzi from Truist Securities asked about the sustainability of the newly increased dividend and the potential implications of the upcoming U.S. presidential election on Redwood's business.

    Answer

    CEO Christopher Abate expressed confidence in the dividend, noting EAD performance is ahead of schedule. CFO Brooke Carillo cited long-term tailwinds like unlocking portfolio discounts and scaling operations as supportive of future growth. Regarding the election, Abate highlighted a rare bipartisan focus on housing accessibility, positioning Redwood as a key solution provider regardless of the outcome.

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    Bradley Capuzzi's questions to LendingClub Corp (LC) leadership

    Bradley Capuzzi's questions to LendingClub Corp (LC) leadership • Q4 2024

    Question

    Bradley Capuzzi inquired about any changes in loan performance across different consumer cohorts and the strategy for holding more loans on the balance sheet, particularly as loan sale pricing improves.

    Answer

    CEO Scott Sanborn stated that loan performance remains stable and in line with expectations, with some outperformance noted in the near-prime segment. CFO Andrew LaBenne explained that while they will retain similar amounts of held-for-investment (HFI) loans, they also plan to increase inventory in the held-for-sale (HFS) portfolio to meet growing buyer demand. Sanborn added that building the HFS portfolio is a successful strategy to facilitate large buyers.

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    Bradley Capuzzi's questions to LendingClub Corp (LC) leadership • Q3 2024

    Question

    Bradley Capuzzi asked about loan performance trends across different consumer credit cohorts (prime, near-prime) and the high-level outlook for expenses heading into 2025.

    Answer

    CEO Scott Sanborn stated that performance is stable across all segments, with notable outperformance in higher-yielding cohorts due to significant credit tightening. He emphasized that the company is delivering strong, sustained returns. CFO Drew LaBenne projected a step-up in Q4 expenses similar in magnitude to the Q2-to-Q3 increase, driven primarily by amortization from recently completed technology projects.

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