Chris Farrar: Yes. Sure. Hi, Eric. We try to price our REOs where they’ll move fairly quickly. We are pretty disciplined there and try to avoid kind of the perception of kind of distressed lender bank kind of blow out. So oftentimes, we will put a little TLC into our REOs to get them ready for market. So I think we probably take a little longer than most folks to sell REOs, but it shows up in the recovery rates. And you can see in the actual final resolutions, we typically, sell them for a little better or right where we had them marked. So our team is pretty good at trying to figure out, where that property will transact. And fortunately, we see a lot of buyers show up at either foreclosure sales or after the fact once, we get the property on the market.
So I would say, it’s going to take us time to work through those REOs. And I would — I think that we still have new ones coming on. So I would say, we’ll stay at this level probably for the rest of the year kind of on a net basis, as we — as new ones come on and old ones come off.
Q – Eric Hagen: Yes. That’s helpful. Thank you. So looking at the….
Mark Szczepaniak: Eric, this is Mark. – Yes this is Mark. I think one of the things just to note is that, over 95% of our nonperforming loans are resolved by either paying off or paying current, less than 5% ever even make it to foreclosure of the REO process.
Q – Eric Hagen: Yes. No, that’s definitely helpful. Make sure flushing that out. Looking at the liquidity position it’s around $80 million, how comfortable do you feel there? Any kind of minimum level of liquidity you feel like, you have to run with your leverage at this level? And then, are there any opportunities to call and maybe relever any of the securitized debt that you have in the stack? Thank you.
Chris Farrar: Sure, Absolutely. So yes, from a liquidity perspective, we feel very good there by retaining our earnings that’s also additional fuel and capital, as we go forward. So we just continue to recycle that capital. So, we’ve got very strong visibility well into next year from that perspective. And then in terms of collapse opportunities, we do have two securitizations out there that one of them is — was sort of done on all of our delinquent assets from prior collapse deals. There’s a significant amount of equity locked up there. That will roll off sometime next year. And then, there’s one other transaction that we have an opportunity to pull some capital out of as it ultimately pays off, or call it away. Combined, that’s in excess of probably $75 million.
The rest of the transactions are structured as pro rata paydowns. So we did that intentionally, because we own this risk. And — so it kind of works nicely that, we’re really not incented to call those deals away, because our cost of funds are staying very stable where as in a sequential structure those cost of funds tend to spike, near the end of their lives. They stay very stable for us. So, by and large most of the deals we probably, won’t call or collapse until near the very end because of that stable fixed rate financing.
Q – Eric Hagen: That’s great. Thank you, guys so much. Appreciate it.
Chris Farrar: Welcome. Thank you, Eric
Mark Szczepaniak: Thanks, Eric.
Operator: This our question-and-answer session. I would like to turn the conference back over to Chris Farrar for closing remarks.
Chris Farrar: Thanks again for — everybody on the call taking the time to hear our story and we look forward to catching up with everyone again, next quarter.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
