Operator: And we have our next question from Stephen Laws with Raymond James.
Stephen Laws: Congrats on the solid quarter in a very difficult environment. Ivan, I wanted to start, can we talk about — you mentioned the next 2 to 3 quarters being most challenging. I know you said something similar to last quarter. When you look at the fourth quarter ’21 origination volume, you had a pretty big quarter. Two year loans would be hitting original maturity dates next quarter. So can you talk about how many of those have caps that might expire given this outlook increased since the last quarter, how does that impact your expected stress you think you may see in the next couple of months given where rates are? And maybe at a more detailed level, how many of those borrowers do you think are on track with their business plan? How many need more time versus how many have a real cap rate issue around the rate move?
Ivan Kaufman: Yes. Most of our loans are 3-year loans with extensions, it’s not 2-year loans. Just a correction on that comment. It’s an ongoing process. We don’t wait until the expiration of a rate cap or we don’t wait for loans. People have come to us, we’re very proactive. I think the biggest risks other than the rate cap which is a true risk, and that’s just an economic issue because, of course, the new rate cap as a state dollar amount. For us, the real concern is performance and making sure that the assets are being managed. A lot of the bridge assets required execution to get to their business plan. There was a lot of upside in the rents and unit turns and getting them to market. And I think, if anything, is what we see in the industry is the lack of execution, which creates an economic risk for the borrowers and not getting to their numbers.
So we’re putting a lot of time and attention to managing these assets, staying on top of the bars, working with them to change management companies and recapitalize their deals well ahead of time. So it’s an ongoing process. It’s not get to the cliff and deal with it then.
Stephen Laws: Makes sense. I appreciate the correction on the original maturity term. Paul, as a follow-up on the financing side. Couple of lines. I think in the Q, you mentioned that they’re currently being discussed for extensions. I mean can you talk about how those conversations from all of counterparties, you expect those lines to be extended with no change in terms? As you think about CLO buyouts, did you buy any loans out? And if so, kind of what is the typical liquidity need to move out of — loan out of a CLO onto a bank line?
Paul Elenio: Sure. So we have some data for you, Steve. Thanks for the question. During the quarter, we have about $6.5 billion of committed warehouse lines, about 15 different relationships and $4 billion of that was extended during the quarter. If you go look at our Q, we had some maturities come due. We were very successful in extending pretty much all of them. I think there’s one line left that we expect to have done by the end of the month. So no issues there. But the conversations have been pretty similar across the board. We’ve not seen much of a move, if any, on existing product that’s being financed in the vehicle. So we’ve been able to hold the line and keep that pricing pretty consistent. What we’re seeing is more of a conversation about new product and what the pricing would look like on new product.
But for the most part, we’ve done a great job of having very deep relationships with our banks, very long-standing relationships and getting those lines to roll with no significant material changes to the terms that we have outstanding. So that’s been really, really helpful. The second part of your question was around — remind me again, it was…
