Robert Heimowitz's questions to ALTISOURCE PORTFOLIO SOLUTIONS (ASPS) leadership • Q4 2024
Question
Robert Heimowitz of Concise Capital asked about the expected lag time for the recent pickup in foreclosure starts to impact financial results. He also inquired about other government agency policies that might be ending, similar to the VA moratorium, and sought clarification on the expected accounting gain on the balance sheet in Q1 from the debt restructuring.
Answer
William Shepro, Chairman and CEO, explained that while Altisource is conservatively forecasting flat delinquency rates, they are hearing anecdotally from clients to expect an increase in foreclosure starts. He noted that re-defaults on FHA-modified loans are increasing, which may drive future activity. Regarding the financial impact, Shepro confirmed annualized interest expense would drop from approximately $32 million to $13.4 million. Michelle Esterman, an executive, clarified that Q1 interest expense will still be relatively high because the prior debt structure was in place until February 19.