Jay Bray : Again I think the way we think about it is we’re always going to be a market participant and we’re always going to look at what’s in the market and stick with our kind of disciplined approach to hit our targeted returns. And so we today, I would say, are buying more conventional than Ginnie. And historically, I’ve bought more out of what I would call out of the money portfolios. But as the market evolves and changes, I think you’ll see more at-the-money portfolios coming to market, especially from the originators. And so we’re going to be active, but we’re going to be disciplined. And we don’t see really any change in the velocity of what’s coming to market just given where the banks are at and where the origination markets at we’ll just continue to focus on what we do and we have a real competitive advantage from a loan boarding standpoint, cost standpoint, recapture standpoint, so we feel good about the opportunity.
Mike Weinbach: The only thing I’d add is that we do look at all the transactions on an option adjusted spread basis. And so we price with the optionality at-the-money portfolios and where we see value, we will buy and to Jay’s point, we’re relatively indifferent. We just want to make sure that we’re adding value to our shareholders with every single purchase that we do. We do think our recapture is best-in-class. And so as there are opportunities for at-the-money, I think that there’s some good opportunities for DTC and to leverage that platform a little bit more. So you may see us a little bit more active at closer to at-the-money and giving our portfolio a little bit of room for growth from an originations perspective. But again, discipline around the price and we said we looked at 52 portfolios.
You know, we didn’t win anywhere close to 52. So it’s still a competitive marketplace and where we think — we see value and where we see additive to our earnings potential, that’s where we’re going to be a winning bettor.
Giuliano Bologna: Yeah, that’s very helpful. And then, one that the — hopefully it’s [not] (ph) — too early to bring up, but Freddie Mac has a proposal out, still a proposal, hasn’t been approved yet, but around insuring and enabling second mortgages that would be fixed rates in 20 years’ term instead of HELOC for current Freddie Mac loans. I’m curious if you think about that type of a product, obviously it’s only proposed for Freddie so far, and it’d be interesting to see the goes for, it ends up being close for Fannie as well. But I’m curious if there’s any opportunity around that product or you’ve thought about the potential opportunity, because it could obviously bring in another wave of origination, kind of quasi cash or refi volume that could be added to the origination platform and also to the servicing platform. Just curious if you’ve thought about — what that opportunity could look like. I realize it’s fairly early days.
Mike Weinbach: Yeah, hey, Giuliano, it’s Mike. You said a lot of the answer in your question which is — it’s relatively early days but we think it’s very interesting and we exist to serve homeowners and if there are more tools that give us opportunities to help homeowners take advantage of the equity in their home, it’s great for our customers and it’s great for us. As this market is developing, I mean, if you think back to the HELOC market before the financial crisis, obviously that didn’t end up very well. And so since then it’s been much more responsible and we appreciate that and support that and want to continue to see that. And it’s still in the early innings of evolving. So the vast majority of Americans with a mortgage have a mortgage at a much lower rate than where loans are being originated today.
I go back to some of the stats I threw out earlier. Over $30 trillion of equity available in homes against $14 trillion of mortgages. So the LTV of the market as a whole is in the low-30s. So there’s a lot of opportunity there. And we’d love to see products come out that are simpler for homeowners. And Freddie is in a great position. They have the first-lien. They know a lot about that customer. They know a lot about the value of the loan. They know a lot about the security of the instrument. And so we’re really excited to see they’re looking at ways to innovate to make things easier for customers and their servicers and their investors to help customers take advantage of the equity in their homes.
Jay Bray: And the only thing I’d add is we’re doing second-lien today, right, when you look at our platform, it’s a — not an insignificant percentage of what the origination platform is funding today. So we have the operational capability to roll this out. So, you know, we’re excited about it, and I think it will be a real opportunity.
Giuliano Bologna: That’s very helpful, and I appreciate it. And I will jump back in the queue.
Operator: [Operator Instructions] And our next question is going to come from the line of Terry Ma with Barclays. Your line is open. Please go ahead.
Terry Ma: Hey, thanks. Good morning. I just want to follow up on the MSR opportunity, maybe to ask it a slightly different way. Maybe like this quarter out of 52 deals, can you give us a sense of how many of those deals actually hit your return hurdles or [were in your] (ph) wheelhouse? And then out of that, maybe how many did you win due to pricing and competition?
Jay Bray : I think we’re still winning a pretty small percentage in the grand scheme of things. We don’t really comment on specifics around that process, but we looked at it all alone. We have a very tight investment committee process around that — and we’re still winning a fairly small percentage, which again we’re okay with because we want to make sure we’re hitting the returns for our shareholders.
