Altisource Asset Management (AAMCF) 5 Nov 222022 Q3 Earnings call transcript

Good day, and welcome to the AAMC Investor Call. Today's call is being recorded. At this time, I would like to turn the conference over to Mr. Kevin Sullivan. Please go ahead.

welcome Third and Investor everyone, morning, to Quarter our Call. Good Altisource Sullivan, Corporation. General Kevin Asset Counsel I'm of Management Today, we material will this business investor during update which morning. you on third presentation, and developments quarter, discuss issued the was referenced our the in earlier in our It www.altisourceamc.com. on website found be stockholder's page can our of the at attention statements information. forward-looking on investor information that on the presentation, to and Note, appears we direct your not is copyrighted our material be may duplicated, cast and without reproduced audio This consent. AAMC, rebroadcast or of Chief Executive Financial our Jason Kopcak, I'm Chief by joined Officer, and our Officer, today Krallman. Stephen on will update company's Jason we'll then be to you questions. the any business, and answer happy to you. over Jason,

Thank you, our speak to to to everyone Kevin. you this progress. welcome to I on also to morning, call. you excited like our I'm and would update

in private third business continue our We developing quarter. the credit

produced of year over last of an quarter, through by than XX% five commitments in the profitable. raising over Reserve private current is of second More months, XXX million still Despite increase of end rates basis $XXX portfolio the quarter. one credit points those the or terms We less. commitments, the third Federal XXX% our the from have have

raised are loans a greater, points. in revenue third We currently net earned yield of $X.X rates have revenue with over on or our quarter, our million quarter. the and the of originations originating XX.X% advance in lowered by triple XX We total have more rates dynamically bridge and the our second generated than total

other developments. Turning to

of Flagstar the quarter. with and received the quarter the quarter, we have from Flagstar warehouse entered by million Bank $XX the into during of line During a end approximately third funding

Putnam, of stock sales new repurchased Tampa, and also price. to approximately from XXX,XXX discount opened our shares We a trading the in have headquarters common at a

by bonus accordance proceed. pay claims, required CEO, employment of with his Finally, signing agreement, his and its arbitration Chatterjee, him arbitrator of recently company all permitted our in sanctioned back conduct him to the in Indroneel claims to his dismissed all the former for filed against the miss his remaining

arbitrator Chatterjee's pleased meritless. are Mr. the claims We found

your would are Now, is rate for material housing I the an housing seeing attention the we we housing shortage, the year, strong rise well the as current market to Despite that existing like demand due to in to overview the in past interest still turn States. United modernization of environment conditions. over stock of both as believe

construction, of value ground and and we from our for headwinds maximums bridge that have our this We are to loan continue to the single cost borrowers of accommodate to market levels loan strong we pricing is implemented lower higher in see investment space and and ratios, investors, rehab focus multifamily family the to demand the In accordingly. adjusted increasing the market and in homes dynamically to property experiencing. and and loan space

We affordable and our to provide model services are aligning business assist housing to credit to build homeowners.

and As market. business actively in a yet currently not residential loans are and we consumer the are reminder, mortgages purpose originating providing acquiring

market, the space. we transitional While declines to opportunities are entire residential estate continue home the markets rate many the loan price affecting interest see real in the in in increases

In addition, largest very the MSAs market conditions widely. across the in US the

Southeast significant number Northeast experienced different Coast Midwest, For have West have markets in while declines, other the of example, markets trajectories. and a had

headed. spend Now discussing we some let are me where time

borrower, real investors originations. and alternative estate creating developers two and wholesale through main credit are We the direct-to areas:

yields the better purchasing to than production assets creative products, are of credit purchases shareholders on originating us in as primarily well the creation the being loans. Originations terms to augment can control allow private but loans. as the of focused also more We closed we through of

we on an previously, said being not plan I've As do aggregator.

income in fixed for forward assets. flow selling delayed However, our initiatives markets has volatility the current

investors out new bringing in space, take that we alternative for strides significant making creating. are to bridge assets We are capital the

In our to success. addition, utilizing and believe critical technology, data be will analytics we

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take Thank [ph]. Please We will Capital question Instructions] Bore from Moore you first [Operator go.. our Jeff from

what process for to you are curious What's frame the do kind should on selling Hi, and of what like. the looks as for you general have Jason, to update I And talking what -- time idea the loan any those book closing be? sales for was loans? the institutions

are Jeff, Those question. to Hi, good again. it's questions. appreciate connect great the I

Let's talk loans, loans. initially about we'll what buying institutions bridge go are then into DSCR

speaking, generally property managers money and DSCR/investment companies, some insurance buy banks So loans. at high REITs, level, a

are several sell largest the REITs to basis. money a flow managers, companies We insurance along fairly and far forward of on

up two have to conversations We to this up. wrapped get takeouts weeks. We're next them these firmed in with expect the ongoing three to in

a the interest As on By minimize I weekly risk, is and these to premium goal principal goal mentioned, you risk, create that goal a yield flow business sell the on the rate into is here to selling to obtain a and loans. aggregate institutions. basis that when basis, capitalizes originate you is sell forward velocity The loans. not on these

not revenue. revenue the sales the to be increase get that current our point that the which which incremental we once at we're So, will goal our loans, effectively increase will through of firmed up, getting to will be generation, currently takeouts effective marketing/lead

the property. where DSCR/investment that's So,

loans/bridge space, in RTL step far counterparties back flow we're a buy this bridge along. pretty forward residential money product. that the companies in managers, takeouts situation similar Again, with you far space, the have hedge credit up we're few speaking, RTL second. a pretty REITs, transitional and side, we're or set insurance On Traditionally funds to space, the where a several along to funds,

the on would sell a expect flows have then three next basis. to We in weeks to and the forward be weekly up, these two to set goal

with mentioned, DSCR our same is risk Again, keeps model. aggregate. things sell we're The not with I that to rate looking RTLs, the to keeps to down. exposure As down, originate exposure goal principal the interest loans,

So these turning that's the generation where products same drive then our relationships that's at. lead start forward our these the flow once in we'll marketing, of to we creation into clients. get At time, place, up

through summarize from that I currently on, People of per loans right and receive talked an imagine, origination. not targeting I To basis you loans. sales we're in we standpoint, selling So just start gaining we're we're will past, again, current from think programmatic getting. spread earnings obtaining we'll I the premiums now have on -- points the that or a you as as start sell basis, revenue we'll can not touch to environment, the XXX of think in now generally about about speaking, some getting

as Jeff? environment. to the loans bridge we earn Hope origination originate we well points your that loans So effect question the them, a product. current about as That's property that's the per as basis be to goal in DSCR per XXX sell both And investment would answers for product.

yes. Yes,

then think you doing So, -- thought to are be in you market going sales be or said still whatever previously be Do buy, you $XXX think you now, right a about the you reduced all things -- want a million do to that's good seem did little be bit number, since slow? that's to to would doing could originations you you of institutions that and these right?

good That's Yes. a question.

million For XXXX, we get $XXX feel total greater, very -- $XXX we'll be at confident in not if production. million

we lead the get along we up, good these loan these environment again, we I we lined about, tested million these to up. we're very the talked that get in us numbers, that system takeouts takeouts production. up. excess For mentioned between in and feel those far in Once have lined to minute even current generation as these we October, in a to pretty that we'll of $XXX created, September marketing ago, have the have we get We're -- lined takeouts --

Even for good it bridge, fixed just There's ago. demand market, still both months not volatility of we was plenty for once about as in liquid there's as yes, feel still there's though there. the still So, demand XX it's the and it. product demand. There's income the rental/DSCR

Okay.

$XXX per I some back market I well. doing point expecting? this So, on $XXX million a in now. you're as are points call like And next you should about getting your of, million cap account have right origination the not on kind million, books mean, spread will you next -- a even of what be Because mean getting basis loans calendar of XXX year, scale, yielding And at it, $XX thing would envelope how margins some $XXX that's be math, if have million What once million, right? $XX year taking that into interest you double-digit of the be that you much on of that's of that at profit. on

building Look, on again, we're going to model of figured want we're good have a question. we still end we day At return where -- the think out. for -- our out don't to it's equity. be I

we're out. frankly, building still So

synergies not building want don't internally I because feel lead and processing it cost compete still say to the these can in our India, we've we're not out REITs. creating effective I and which very in an already aggregator. marketing We We specifics We're us very of proved terms makes is into to have loans. trying get with that generation competitive that out. we're

model the aggregation equity our We see distribute you have originate north well a on the return that what side of feel in to of we is business.

being know but pretty we're equity framework. north to model year, on that you it's and yet, REITs know it's going prove you and where I of general we is next I'm state said, to going I think see and give with to a our we'll aggregators. trying we return what good but want feel to So a heading be at that out, a don't just frame.

are that don't then XXX a your XXX borrower presentation, -- by credit right credit your mean metrics score? or lowering does XXX loan your score like And for are is I you And I and borrowers? it like you average what credit now general score how I you're Like like your the work? process like lowering you said Yeah. cost. the -- seems LTV borrower know, requirements guess, What using to like, a strengthening guys in

a it's question, great Jeff. Again,

products. the investment property -- Again, loans. of we So a XXX we have rental consumer purpose products, neither these couple have business are These are product.

their banks So our active speaking, on insurance we that's and generally REITs, money and who aggregating, develop our and comes the take DSCR marketing. managers criteria companies, rental what right product, criteria, are from very we

look typically a bridge you side speaking, experience a service your side. less. is they more LTV binary that's the borrower, looking on and going or debt generally to what What XXX-plus but you're property XX% is the think I on pretty you're are for coverage, So be product. And for investment --

So transactions with in last on rehabs, history fix ground-up bridge target and we years. borrowers to typically -- six we seven have side, of constructions have the buying we as as well flips, the two a

So Jeff. of -- difference financing have experienced the going we for recent a valuation the points, is And who for continue on we very last two noticed background this and of return business looking -- demand We making less seven six, weeded years getting to with still borrower the But XX, instead done equity, XXs. on on say for a operate for for fraud. experience. an do collateral. the as equity focused return borrowers look projects low issues. have and We financing five, very making rates base. last they the They're at them borrowers, Touch we the we market. We going thing on XX, they being in up. environment continue the still look the of the The see history know the look experience What is XXs, successful, from cost that in experienced strong of still -- current experience looking usual. less leverage for couple up capital we're demand and more are have they're of a to out in have is What high they're a ones is the needs.

borrower us take our of end to the us, accurate the bridge of important go, be property. So the we that does make the expects the for for the opportunity not it's if value to RTL in day, on that the We value is At to go way there. to want space, collateral. sure to had

there, doing those that answer your So we're what are drivers to that's Jeff. -- big question? Did

from Howlett Matthew from question Riley. another have B. Please We Instructions] [Operator go ahead.

Hey, for taking Thanks my Jason. question.

chat. to Nice Matt. Hey,

Yes.

models. superior at just but I this what look level it you what originate in higher, dividend, it go differentiate you about model, you're think But will when over there? we ROE, going versus but bit to at about right space, a I we how heard return from little now. model, are the versus we how a look I the on like How is traditionally differentiated? traditionally over what generate guidance what's see ROE be to again, be see Just you you are how out you to looks say more the the going origination be do they going talk REIT high model mean, going will type profile a time? stable not aggravators, -- I you're to whole we to higher will it versus hear wanted appreciate I AAMC's it, when give

again, questions. Matt, are Yes, those great

the back amount end day, capital in got we step look you trillion. alternative trillions here. of a at the space, raised to think it's upon of at When the take I the asset

massive is, to can't The look -- get them, of alternative in we large insurance The from commits. capital rate this these the that's been we commitments with large to companies business REITs, once money going companies, raised. buy dollars they with alternative forward mean there's lot gone years past, amount and have, lined this a they for direct. incredible managers Street So raised. insurance managers, have amongst a of I capital forward have way capital at In money We're product, anymore. They're up of with they doing assets large large -- trillions a these our these

on forward set originate and So our by a forward have to volume basis is a flow goal fold. up

-- pools looking looking open-market $XXX random going we're million that with putting okay, out bidding to do going So there. scheduled there. here, $XXX have said, We're to and being is is not a million

but volume up a we much fluid is way revenues, more we that our want volume what process consistent we can want takeout, So for a ramp and targets. lumpy have because not

can product So much going. it's target much demand we we create that way, how and how where ascertain can --

strength. our will companies once have large have forward additional being revenues out with I So said, look set expect, continue We'll partners that our will -- continued that for be capital of we be insurance flows increase. that to for dollars. allow more stable partners looking our that hundreds have billions there of much We'll more ROE for improvement and in up, to there's for size, And forward-looking. our again,

Okay? by A lot originate they go of people trade by trade. and

is, help, make who Our goal out earnings are And effectively and cyclical. the is their managers, smooth These the money capital, we're in should partners. portfolio, insurance view know our our largest there. into Does and companies those we has talks it out largest less that that with originally Matt?

a Well, lot. It helps. helps good. its Look, that Right.

platform. You're be going robust, to a sound -- origination growing very obviously like

high Is flows. grow income, investments to model? compounding the retain origination impact about of to that think its for just I As of how fee the And cash reoccurring the the capital continuing platform. quickly, expect turnover sort get you

Exactly. Exactly. Yes.

$XX company, you they when the maybe space. look in and So at billion insurance an mortgage have

to the get Our to have of asset us sale. and who sell for particular strength history the billion, We We from $X to up a allows goal or clients our the use is in us want obtained certain amount in because able line fees billion our spread of premium potentially India. and company. $X.X front. even management origination That to to be have that

from create that's So income demand this fixed massive. based the on the markets to product goal is the

distribute product go -- that in out accounts, demand, to income fixed actually reach the to these large and and create so is job into create Our

all -- Just credit going and is underwriting, cost? origination sense the obviously, compelling is Look, give the the general color. more look something that just terms like the centralized? more from we'll the in I and overall give just platform, that details, for but on -- me opportunity and originate mean, cost without me you centralization the Is everything how review. way credit platform, a to be one of of a can

question. So, that's a great

So, our of underwriting, underwriting, will distribution, our done fulfillment, be everything India. the processing, out

a deep there. have history We

has mortgages, single-family has Our and REOs. team managed and purchase underwritten XX,XXX homes non-performing over

last it's very for the educated, If So, years. incredibly effect have my been out of this on of talented experienced same at done all experience a there. XX in cost the being it's street the and an team, been shops. we And the relative I've to -- time, highly is there -- very lot material. US in the I've

tremendous that -- the and on at side, we're you advantage data-driven. looking Our very Then start front. we is cost

the tested around We found production concerns in rates market we've it our in good. going our marketing been with has adverse -- We So even housing market generation going days. an in XX and down. find very lead last up housing

So, our lead fantastic. been has generation

Our demand for product is fantastic.

we the and cost-wise, there. the think So very good our numbers demand are is

our generation cost So we feel our good costs structure there. with or lead

capital as in we some feel talks of with to the a providers top there that we're product. buy out So whole,

you And of have out companies, sell effective user biggest end capital so you very when these aggregates into insurance cost of a the capital.

Our operation as well talented, very cost-effective. as very India very is experienced

and in we Our to effectively here tax be USVI structure EDC just us advantage competitive tax because have us more a -- what's that structure competitive allows allows the called a corporate execution. in the pricing

structure So overall, we in advantage experience in feel India. our between and expense

very well be generation. very data very cost, to Our the products originate. think, of we're out are different competitive -- our we lead I going in tax take use competitive structure very, end best-in-class partners as BI in on and that space, as very this and feel We

We lending bigger. is look there out growing in there's queue. tell a the lot to you, forward and the bigger and public disclosures. in not I'll space comps market back alternative I'll Well, more of hop hearing

forward the hearing look REIT certainly on we more differentiation relative the to the to So, model group. about

I Matt. right, think you're

because movers you bought I our known transitional demand acquired them. and alternative they've that large name money space out the and up is got look the accounts but a think at quickly of they the the went peers when of the household managers, and the early see to not lot bridge again, assets, there have they well going names, the I’m lot -- bought in opportunity, by, opportunity

don't out really So aren't alternative asset originate know to -- any I there. of there distribute any originator

that we're earnings, like we net earnings, space a of feel We as a we in of bought a have excited. very and lot very we're companies been in attractive public some a good So have feel runway. lot company,

So

Just circle you put but what size? a huge how clearly market market, do just you back, know what’s overall the question, -- -- know curious the it's what the a market. look at I it’s I broad

products? Size-wise for

Yes.

– product. at When look flip/ground and So it's looking fix one at – single-family no look data single-family bridge you -- source. construction, each there's

at investment and million start the and speaking, years bridge When $XX generally that’s space, property think $XX single-family, that's It's generally why that billion you billion. When $XX out properties there, sensor look just another its I out -- thrown DSCR to million $XX are track. at in you billion. XX billion. speaking, $XX the million. looking to multi-family okay, normalized that's the That's $XXX rental between value, the there's numbers XX billion for

a situation or another and purpose great of how really opportunity massive, when their model because DSCR doesn't space us banks, to comes banks. into at for the and flow investment real kind And create income okay? knows property/business they it is GSEs documentation this, but -- GSEs to dated the evaluate And the when you estate. is the credit effectively, everybody space and that's look So

think is I undervalued, how of size market it's the So massive. big. And the pretty

So does hoping, help that

It's and going and the day single-family. absolutely read helps like like just up buy you normal. pick it's be just about to you newspaper institutions to every seems Yes, going here industry just it the more it's

So said, your like I model? nothing traded publicly in

X this trading is in in known that's there's just the probably they to shortage. Yes, time, a shortage the million is same US, And number everybody X ore and at affordable housing. that from well million houses housing the

in we're driver is housing what a key doing. definitely affordable So

buy have a – millennials lot families. to housing of have are We starting

estate tremendous years, nothing demand a borrowers, rental seen we from frankly, demand income institutional. space opportunity -- also we've much builders, of So by the XX more growth markets. there's demand last just And be builders, fixed to there's tremendous grew as there's from investors as industry real the a amount over in property well owners. cartage – But

institutional sides, space we're per seeing on a great It's that's a opportunity. think demand. both very So We it's se. not

and very in experience So special. areas of that's create lot us and it for apply our friction there's there's some and a and come to take where ability

We look to forward I Okay. look hearing more that. forward. certainly about

Thanks a lot, Matt.

Matt. Thanks,

Boro We from Instructions] question Capital Jeff Moore [Operator will Please go ahead. from [ph]. follow-up a take

Hi, Jason, okay.

the market were originations total you that numbers caller hear than -- total to yearly last it did of going that your less all I sounds the the the the is So saying like be to X.X% size, about -- TAM, that right?

I -- numbers on Yes. do the out than – it's million Absolutely. can right, million less you are that that? The originate put we amount X.X%. we we is $XXX think out $XXX I is the more look, mean, of than threw

the scale in market it's huge. So to is there, the ability

reasons why So the we of that's that's very excited. we're -- one

Lowe's mean advertisements from And like or like. on like you like And since stuff estate. Okay. whatever. I been mean, some really I like or I anything haven't real mean, or yet. like and guys CoreVest Yes, I even yes, Instagram you do yes. people I'll have advertising also I already seen for LendingHome Twitter,

guide you I can think without that all you right? really, guess, So

Exactly, Jeff.

we've done like get we ability of What then very done the our that our can set feel different it's trying we've way. an massive institutional is amount -- So takeout we XX a that in getting We can their purpose up scale is and very our do analysis -- channels, Then the getting we takeout the We we're and up feel, very up over running. turn to set distribute. one, our done the in By scale marketing. going third-party before to between days. to space. two, analysis; for that, being doing feel we incredible, go market last who testing had material, which is business we what marketing up. we're and do a that running, we create we analysis. can -- Go the to is We of product on a and need do office back very

we want we don't big that on each and -- good one create loan on cost to quickly per is have a the feel and we So loan space. handle how each how much is how in the market to

So to money up, analysis. to would set more well get we've and our have I as We I we if get fix takeout done feel could set money out up, the turn flip -- a SCR, need across that good about yesterday, spent wanted yesterday, I but up. number it. Frankly, once I spend it the going as multifamily. even And think, the proved takeout is across volume than we be to bridge

and value-add You note $X between million size. that $X multifamily a notional -- and know, opportunity million tremendous size bridge there's space in

right? that Yes. just about already like cash note, -- are unaware I is setting to an the up predetermined for these doing? more you're for you model, I you're way were like it not for I me, excited buyers, pretty And not what was predictable, an guess, your I as flows much you reassuring I investor, should the which guys basically mean, as auction were mean, said, -- amounts you was So subject a things make

is – be to trade. goal a not won't The it’s programmatic not business make systemic systemic. it We

They're to and feel not opportunity we you look at paper is business values a in documentation. is of this between a agencies. is like at this -- they look kind way the So income one of have massive again, archaic

the opportunity you that well the homes massive housing feel When we shortage, there's So look we at when look multifamily, at single-family there. a housing there. as that shortage, if you as see

our trades. with excited So we're lot very a very very will systemically. going than we're trade. And smoother And partnerships create model. going the able be be is a this to out that that we buying earnings good business we and to is scale this not that a one-off This and more takeout feel right

question So anyways, yes, is, your answer to yes.

Okay. then going your that's also the principal $XX.X well you one your in value million looks assuming like over had Q very over mean, last repayment. these had books back in repayment $X.X long. have of $XX.X on if on principal million things -- it only multipart but couple like haven't back seems loans million It about million kind XX% in through Well, marked Is what the thoughts of paid like going repayment got And, well, you looks quarter, months. that question. loans? I'm all like a have the your are books more, talk of your already principal markdown for that you've you And had forward like, that kind warehouse. loans. like of, call you on on accurate? your I Can of, you I funds. repaid and had of slight you $X.X it It borrowed And your about in you down that

It’s pretty stood.

the buy questions beginning. and the a some In step the there. in think okay? buying so season months season my -- demonstrate back, in a that. end day, I paper that we create originating long-term. XX said, of And expected off, speaking, rate and we bought see and mind, been paper in view, And goal that's that. then couple then did or paper. look, Yes, the different at paid in rising that duration, we paper to generally have was seasoned. months bought because that it good space, season four that season I say some we're we being With is five very not at when very they're And income, we the we're very We is of less Keep some bridge. the also environment, paper and in in or bought paper

those pay So are off loan. you're pay expectancy does paying -- loans off, bridge borrowers the months bridge average the one. some of of off paper those loans life Number quick. two, in the speaking Generally do quick. already this XX of Experienced number at space, looking

flip the we side, environment. you the of So that want content hard one we enterprising as that replenish on inventory rate burn your

played Mark, play Number So out, talk that we how one. about number to so exactly -- it'd thought try two, to we that's marketing.

up, to relative market the rates -- rates As the rate go in discount market. your to the portfolio

some money. we So the at We're taken where book effectively off. we've losses and we bought still front, we're on making that stuff's but where financed that, paid

whole, profitable. a is As book our very

We cash originated end we loans loans in the the at $XX of in have into quarter approximately or about bought million have cash. -- that

all not the line. portfolio financed of warehouse is So our through

was a held fair that in and warehouse on have the line. portfolio amount We of amount cash fair a

pay per its XXX the not why a downs that's XXX% is weren't So financed. because respectively

of So warehouse question, our paid your some of Does line, on answer that off on again, and some so. it's cash Jeff? paid it’s

Yes. I'm you guys. excited That's super for awesome.

bought reason is And we're the in is just one more cash, originations The thing, loans of part to business Jeff, getting going. mind, keep time. when take we of the

platform, start people an yourself, and you one. switch build you when So underwriting origination originating takes tomorrow. a don't hired you your getting It marketing time just to put your

So burn get we to place. processes closed down out effective cash our slow in buy had to go loans to and

goal had address. was that But to we -- the to is going we're we we loans knew buy different areas long-term, that closed goal the So because was to aggregate. never wanted

a in creating burn, allowed it other get So us has at helped get lines. in place, allow look us that our cash down tremendously to line warehouse It process revenues our definitely us to in slow warehouse place.

the whole a model loan. with us but help same and loans our originating ton, by So buying by time, it's our the is at cash, close not in business

going that's we plan to So be originate been has it's our always sell, going to our plan. will forward, and

Okay, Jeff.

you're I a partners think I that you guess Yes. million and buy or want that only obvious million maybe that saying, of for got I warehouse do market, you like throwing of can seems you you and thing. out, to X.X% job based the weekly, know on they like whatever. talking it one how the question, these you're we however warehouse more you've one lease, be whatever much you are very given because or outgrow that getting everybody or Because your these numbers less basis going it space. of to or -- want you're that at I $X looks other a Okay. when to $XX monthly, that going out, taking resume to very lie, line I such And you have going in The only million like anyone but could did that on the know And hey, facility? loans than you're mean figure $XX good be said they're yearly I easily. seems the

does or become point what at not $XX have -- million you does like so and the when guys investments, enough million you $XX all? plus for million cash So in like that million or $XX

this reality getting off, we do you is for three of thanks takeout sweep the one. an if days. up, aware already that world, path well complement, two number but down line, a Number is First a go are ideal should properly, second going we loans set it. on Like these every in

could $XX you million you $XX really million. lot So could a and take do with

back a our with we're warehouse our with be that is volumes to have more market the ability with we line. our office view operations, lot to going However, expectations

We right is is up. are to the that of partnerships the get selling priority set But different working now. for -- matter our loans fact on the on the product

So looking in warehouse yes, other at parallel, line. we're

great we Flagstar our though partner Our demonstrate a as is current velocity. they'll increase line, I'm sure partner,

On want days. are on the role every to flip And focused get three loans sell we I loans. side, selling very I

those you the those a leverage So to math, there's, do $XX five really room lines. days. three lines million, as returning every really There's loans turn can to to

yet, those just but So we don't we're it. need today addressing

a we your Jeff question need So answer I the for greater warehouse be -- it's Does that am sorry. and [indiscernible] need. -- to see lines

you Yeah. really more forward I'm all. updates from looking Yeah. to

super everything also. I'm And well. all doing are exciting You amazingly

thanks. Thanks, appreciate. I

Thanks for time. the

Thanks, Scott.

are couple in no a we'll questions questions the other call. came in As to queue, there of answer that the prior

a are a So outstanding. that there's but of lot have been still addressed already, which few

of do Jason, how loan book? your the you monitor So health

some look, processes we Well, have place. in

we the top our servicers estate builders. at reaching loan portfolio. real these again, it's an for If India. And payments XXth. playing Any that's We slow have borrowers. So, we again, say, management investors, not -- the the have teams made, these have -- the -- team out of example, asset and are do have on, are, reviews been we of in experienced due our the servicers extremely weekly management of they

somebody knock. tap payment. We them We assure an door send payments. them prodding and even have have a to make to We person make out aggressive he the our

So we're all over.

very our of that's It's on We And and performing. good. are basis, very a it to-date, stay our helped -- at the loans. same portfolio these servicing the of healthy. But all book been is very weekly reviewing we're time, it's actively

kind So real market, mentioned think market. -- Furthermore, I earlier, concerns the the in but headwinds realty the and just estate I with this of around

space view data days a figured side, on year low historically that little out make bridge and and lowering be bridge slowing LTCs by with had rates, housing, a the we And and attractive LTC we lowered entering the from it market our and points. for short that We more would LTVs by rates far. ago longer. market rising should by XX to and buyers into the worth take historically it's LTVs, so on housing the levels On the we end interest down was the should our cautious our our buy loans

So…

does What average like? borrower look your

six borrower side six, mentioned a bridge as average or we target, has effectively earlier, that who the I want investor XX renovations realty last is seven the borrowers or on we done builder in to flips a Our months.

that's So, audience. target our

three four. people in We four that -- XX, have XX, have and there or done have have people done we

but DSCR is then So the two -- side, flip but a you have out. X% want we'll look for our at LTV see least two of running And three target if grid rental people properties part, that ideally, when we rental. there's experience some like the have to minimum But most we'd at a a to business. involved, lower see do for first to to they rental the borrower with properties, three time around

someone opposed as lender? would another use why to AMC And

go the before can customize working I us, again, this that's they access -- maybe just experience, think their do you're living. want question and not the that's bank Well, we with bank, I really first product a for one to what not the speed, do to we specialty, distribute it. Typically, when

lot understand a like done speed. what go, good outlets. If and can a the opportunity, can number Two than close we is can We can We quick, can. one. quicker of bank much opportunity, a it's We close get and we have where quick.

that's lot So A just is the that's we bespoke. is two main do what of customized. other more reasons. And part

what find estate otherwise real box credit bespoke we done look manner. try on you provide, to figure or So the go get bank, they don't fit you a you We out at here. either box fit to the they if a to it you'll execute provide is, it, how and

this market? a you trade little space what are about And earlier, in companies the for but bit the in talked

Matt, Again, earlier mention private. these to are as of companies I lot A

by at multiple. were So times our Generally of lot a these peers speaking, traded money and managers. larger have private private got transactions. to the again, -- That income nine proven XX net bought a platforms are

earnings. money few income there's So point management XX bought quite net a a it's around been space nine I've to at hedge earnings, XX and hard to where times to for but And platform trades, a coming been public, funds the now. years go

you bonds for using capital? raising baby Have considered

looked of origination. ultimately, us, grow book, if to our going and going we Look, to need forms the No. some -- there's be we're use capital at growth because warehouse different we some debt for at have to to grow point

looking at definitely we're it. So

at right is open but market gathering what we information, yet, that our we looking anything takeouts done on to now. are haven't We we are are focused and

the shares the buy additional Putnam back company transaction? to Is since any looking

go on keep most you're is as focus front actions Look, buyback end saying we the a selling once our regular that's it. and ability or of throughout always start at originations the accretive and I I this call. on think Once basis, do that shareholder we'll programmatic benefit stock, selling we definitely forward basis in have back the of consider other because day, us, to a that the established important

do a it to just how be of the market. you think to take general to long do rebound Then couple sector? or normalized the long in questions -- How for expect margins on you

a crystal Look, I ball. don't have

With on I borrower fixed major ball. is The anybody said, economy. clarity I crystal has on rates where factors right all housing are clarity and clarity don't longer think, process now. headed, we're think being the a for unemployment behavior, that in on view are

liquidity, ton participating. market money some what the so them and and we're insurance seeing banks limit of And a definitely but froze and is has we up caused securitization have see actively

liquidity, just over six probably next will for nine expand Q&A current will I should should the think But what a And effectively creates our is -- which that happen more to normalization equity, very very in when environment, us the to will feel we what months. more our do or out that it stable more. of earn margins. can attractive widen a on still market margins I expect. End the return stabilizes, we environment good

very been about -- since was accomplished very that's We're here. everybody's I we've have. or I so we're happy we the that what think the time Kevin, today, business. five in I've So, months gotten only the excited question appreciate

India. in are We blessing important team we have been Croix, a people. nothing St. have what Tampa incredibly but tremendous do, and to good in in They're the St. team. I people these a my to want thank Croix,

plus we in what five So accomplished and the months. I'm we've very who thankful last have

to continue I that’s That’s forward Kevin, and business the forward. look push So And I to it. all have. growth think

Yeah.

If e-mail Investor to number. out you or get reach have hesitate to in a to able to get please session, didn't our phone don't the question we weren't submit, to or Relations

Thank Thanks. you.

That Thank today's call. your conference may will disconnect. Ladies for and you participation. now you conclude gentlemen,