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Executive Terry Schmidt addressed both questions. On compensation, he stated that Guild's approach is 'status quo' and they will follow regulations, not anticipating a significant impact on the company or its competition. Regarding tariffs and home prices, Schmidt said the impact is not yet clear but noted that housing values have been largely stable, and he does not foresee a major effect on the company's volume.

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Desiree Elwell, an executive, confirmed that MSR valuations naturally decrease as interest rates fall, directing investors to rate shock disclosures in SEC filings for potential impacts. She emphasized that the company's business model acts as a 'natural hedge,' where the origination segment's expected increase in activity serves to offset the negative valuation changes in the servicing portfolio.

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President Nicholas Mah explained that RPL prepayment speeds have been consistently robust, ranging from 50s to 60s CPR, and are expected to remain so in 2025 regardless of the rate environment, as they are driven by project completion. He confirmed that several deals are currently callable and the decision to relever is made on a deal-by-deal basis, weighing economic benefits against the ability to redeploy freed-up capital.

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Executive Daniel Perotti stated that PMT had approximately $430 million in direct liquidity at quarter-end, plus several hundred million in additional borrowing capacity. He confirmed that the company will actively look for opportunities in 2025 to access capital markets, such as through a 'baby bond' or convertible debt issuance, to address the 2026 convertible note maturity.

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Interim CFO William Dellal and President and CEO William Greenberg confirmed that while they work with traditional lenders, new entrants are entering the MSR financing space, making it a healthy and expanding market. Greenberg also explained that while their floating-rate financing costs decline with Fed cuts, this is partially offset by lower float income from the MSR asset. He emphasized that the portfolio is hedged across the yield curve, minimizing the net impact of rate changes.

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President and CEO Phillip Kardis explained that as older deals have paid down and interest rates have declined, the company is now more aggressively exploring opportunities to re-lever its portfolio. He stated that pulling cash out of these deals to reinvest in accretive assets would be a driver to enhance overall portfolio returns, which could support future dividend growth.

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CFO Brandon Filson acknowledged a recent slight pickup in prepayments. He explained the portfolio's dual composition, with a low-coupon segment less sensitive to rate changes and a high-coupon segment that is more sensitive. Filson noted that falling rates also reduce financing costs, allowing for reinvestment. He stated that the company expects a return to the historical non-QM prepayment norm of 25-30 CPR, up from recent single-digit levels, over the next several quarters.

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CEO and President T.J. Durkin reiterated that the agency position is temporary and leverage will decrease as the company reverts to its historical target of approximately one turn of economic leverage post-Q3. Chief Investment Officer Nicholas Smith added that the non-QM portfolio is well-protected from prepayment risk, as the underlying loan coupons are significantly below current market rates.

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