You go and you hire good salespeople, salespeople go and call on title agents. And again, it doesn’t happen overnight, right? This took us a long time on the MI side, but we’re slow and steady wins the race. So we’ll attack it on the agency services that way. The lender services channel is actually more — it’s a lot more geared at centralized refinance. So it’s a lot more geared to lenders. So that is national buy. So it’s a 50-state title and settlement services business, it’s quite a valuable platform. And I think as we continue to invest in the infrastructure there, we will offer that out to our key lenders. We’re not at that phase right now. I mean they do work with lenders. But I think we really want to make sure it’s kind of firing on all cylinders.
So we’ll have kind of 2 channels, agency services, lender services. It will be supported by an operational group. But you can see there, it’s going to be regional. It is almost the agency services will be much more regionally targeted where the lender services will be more of a national footprint.
Richard Shane : Got it. Okay. That’s helpful. And then the other question, and we’ve been asking this in a few different ways, but very unique time volumes, particularly concentrated in purchase given the limited supply of existing home stock for sale, particularly concentrated in new home sales. That drives mortgage originations, particularly through builder channels and there tend to be some subsidies there in terms of buydowns. Curious how you’re approaching that, in particular, the risk associated with buydowns, whether they are short term or permanent?
Mark Casale : Yes. I mean, I think with buydowns. One, taking a step back, Rick, it’s probably 3% or 4% of our originations has buydowns in and so it’s not super material. And remember, we underwrite that at full rate and we’ve had similar questions around student loans, same thing with student loans, right? We underwrite those assuming they’re going to pay back the loan. So there’s some concentration, I think, around builders because clearly, they’re not building a lot in the Northeast because there’s not a lot of land. So it’s always going to be more Southwest, Southeast a little bit of on the West. But we don’t see any big concentration issues or things like that. I think it’s really — one of the things we’ve gotten asked this question too is just there’s not enough supply in the country.
So the fact that homebuilders are putting supply out, I think longer term, that’s good, very good for the homebuilders. And clearly — and most of these are obviously first-time home buyers. So it’s good for MI, but certainly, it’s the concentration. It’s certainly something you had to look at, but it’s not something we’re concerned about at this time. And Chris has a few words on this, too.
Chris Curran : Rick, when you look at the buy down product, that certainly we’re ensuring from the builders, the majority of those buydowns are permanent. So in a way, it is beneficial to, I’ll call it, the financial makeup of the borrowers, certainly having additional cash flow for them. So that is 1 certainly a benefit of the permanent nature of these buydowns and certainly by extension that will benefit the credit performance as well.
Richard Shane : Got it. Okay. And Mark, I think on a personal level, there are some congratulations in order as well.
Mark Casale : Thank you. Yes, that’s why we’re having the call on Thursday because my daughter is getting married on Saturday. I have the rehearsal dinner tonight. So I was not allowed to have the call tomorrow. So that’s why I appreciate some of our competitors. They were very gracious in moving their times. But yes, thank you Rick.
Operator: Your next question comes from the line of Eric Hagen with BTIG.
Eric Hagen : Congratulations, Mark. A quick modeling question upfront. You feel like the ceded premium of 5 basis points is a good way to think about modeling that going into next year?
Chris Curran : It’s Chris. Yes, I think that’s a reasonable range. I mean, really, when you look at certainly our history within in that range, so that’s reasonable from a modeling perspective.
