New Residential Investment (NRZ)

Alan Andreini IR
Michael Nierenberg CEO
Nick Santoro CFO
Bose George KBW
Doug Harter Credit Suisse
Stephen Laws Raymond James & Associates
Kevin Barker Piper Jaffray
Tim Hayes B. Riley FBR
Trevor Cranston JMP Securities
Call transcript
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Good morning. My name is Kareen and I will be your conference operator today. At this time, I would like to welcome everyone to the New Residential Third Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator Mr. go begin please conference. ahead Andreini, your and Alan

Alan Andreini

welcome would New call. Thank I to you earnings you, operator. XXXX like to quarter Residential’s third

me Executive our our Michael today Financial and Chief Nick Santoro, Joining Chief Officer. here are Officer; Nierenberg,

from their our may will an to results. encourage These be actual you not forward-looking on if differ Certain so. by which already we statements. We have done presentation nature, statements website, and posted have investor materially are you uncertain download made statements, today

In to comparable financial in factors quarterly contained the those can to addition, our encourage some The measures. annual in release reports our non-GAAP filed in found with disclaimers We press we’ll be and the review discussing and you the reconciliations of the presentation SEC. and to the be GAAP risk measures investor presentation. directly review most measures investor

like would I Michael. over call Now, turn to to the

Michael Nierenberg

for everyone Thanks, this thanks Alan. morning. morning, joining Good our call and

similar a more views and we deployment For the this more own a quarter market up consistent our quarter thesis. quarter, well with where extremely of portfolios on securities and is capital -- quarters had bit mortgage picked pretty and our focused the great our performed with MSR where activity to acquisitions the for Investment company acquisition investment prior non-agency rights. call

our help execution with in portfolio our this bond very us good. our strategy. quarter call our growth non-agency grown the have legacy RMBS and been We will investments MSR On has around strategy, call our

fall able this call the reduce and callable. cleanup billion. on levels expect population, is callable the currently which extent delinquencies further, $XX approximately to we be our would To based is increase activity current that of Our we to can more billion, call and advances meaning, $XX factor,

increase well. to a broader way be activity working as solution, on which are we would currently possible industry Another

the On remain very environment, we investing cautious.

near term. create today believe the opportunities volatility we’re some current in market However, seeing the should we

to and end months, existing added at perform onboard of billion end Shellpoint continue clients. approximately Shellpoint our servicing our portfolio business over course has XXXX past they the their XX of Their grow, the believe from loans portfolio of clients of should the the closed have We higher more early to The XX they've new a been has on management job. at head great in at project a XXXX and for and business to well continues We extremely at party third and six the as from July rates another doing billion. will servicing shareholders. -- we grown Shellpoint $XXX team the

our has taking with move online, posted on strategy, to continue like our in which to and a our opportunities us see. advantage the position mention we to access Before any of to been that puts liquidity supplement, I'd while we capital investment

Now, I'm page let's which our New look X. Residential. of going to begin on gives just to the overview supplement. is an page, This

Focusing page, today of on right our portfolio the MSR billion. is side the $XXX

where based yield our stock approximately is on XX%. dividend trades Our

MSRs. new year, acquired of we've the billion On XX

rights be continues to and around call Our in billion. $XXX

XX%. has the our Year-over-year, increased value book return by For X%. up total year, is our

short-term more these term in business, issue results. X, more notes, rather our is Now, financing. financing MSR to fixed as book page our of of MSR rate a continue In On our are we so numbers term around lot nature, XX/XX. than our

try as continue and section to share. billion dividend Servicing Page $XXX income $XXX MSRs. was and of GAAP investment into the our diluted X. through and securities of company, our our for then have $X.XX earnings and to XXX common reviews. or of $X.XX What UPB these, here share XXX loans diluted of we $X.XX calls, we do portfolio go per billion simplify is we quarter million per I'll opportunistic just talk advances, a pay residential Our per share. net million or Core we

think So lower asset of we XX/XX, increased billion. for because net but of securities. $X have little we bit on our amounts, our have you than rights, equity equity. in as XXX rates a On QX, simply the advance net we equity securities is million of rates, $X.X currently book, when On investment a have XX/XX, That acquired servicing in about loan and our investment on residential our not the billion we class. end call net less, of mortgage

X, President are of our end a our agree we quote consumer way whether book you the interest expectations this Our just sheet rates rates Ryding, just we think up $X.XX. unless general $XX.XX. with will what really the I are John and do to continue we of Fed, to to operating -- and high the The XX/XX Interest to bit that we slides view generate wanted continues rates, continue back things. can since and value the mortgage our different entire our here from current set that portfolios cash with view mortgage our is our put X% only two environment. continue the refinanceable. exceedingly couple look economists wanted as rate. be changes book $XXX about coupon point on should from balance million or it to mortgage do is time, when little to illustrate a we $XXX When dividend is to call our $XX, to to that and we portfolio the rights, universe our of the at was on servicing climb, beginning is, rights, just we at in One in next of continue to to think continue maintaining loan out we returns highlight Page interest mortgages our that And well an quarter and we have to of all for closed loan our portfolio while XXXX of at anything of a be stable discuss shareholders, about million. good

October, During seen is XXXX. the rate to increased since we've X.X%, XX-year highest the mortgage that level

continue is strong, more opportunities create of rights page, here this and increased to further we signs think to year. good investment. for and rising and Again, to our believe volatility to some will the then overall what better out for CPR the does And shareholders. servicing rest company? our further, to our obviously although, population decline rise, MSRs, continue in we advances we is to all more are housing better Our are portfolio fairly mortgage for value of What callable. good advances the prepayment for our we’re slow for returns good should Slowdown company. see of will mean for remains through market expected we becomes speeds on decline. portfolios, our does Keep continue to servicer that on of lay some Servicer rest cash generate MSR, -- our weakness for mean? go Page should rates continue will the call our flow the The own the X. economy declined stable, starting in continue will provide mind, what rates as

on our rate. loans of Our additional What non-agency rate hedges continue to non-agency then fixed company our have new fixed rate exposure our we acquire overall coupon we legacy higher we again when floating we legacy our income. manage interest the securities is overall rate to interest book, will portfolio a to XX% and assets, exposure, for rates portfolio, we've higher to anywhere exposure, hedges then lead on where net that put have try On rate interest on loans, means is we where acquire to loan higher and our exposure. manage have securities

line flip lag is our Keep we've questions. Page up in third acquired on MSR longer. updates on portfolio our XX this billion billion counterparties, then the Now, I’ll we’ll including portfolio. Again, just XX a in the the this lead little is mind, open quarter. XX or through time from time and bit XX different for the year-to-date,

to a fixed has of MSRs and that So for first likely the the closing seller company. opportunity get it XX, notes great likelihood rate earlier early of intend works On of need XXXX through we in bankers our we'll for robust to set our activity quarter currently the mentioned interest probably rise, some so think we continue believe we're should in come year and the X.X MSR see market, We of capital, through end our would it either do remarks, with or we're that going financing be be more MSR quarter. into more We've to the been is in typically, towards or very the discussion deals, issue XXXX. raise or mortgage way that to of rates timing to the way example. I this closing page issued today as first up, my the that billion around business

ultimately financing Our term is goal of securities about to call MSR $XXX entire XX rights. rights. our portfolio. Page on Again, call and our talks non-agency have billion our

very, Our good. calls been has very our execution around

in coupon collateral. that a high expect Keep to continue. of We have we mind lot

starting loan on trade with they loans continue loans low-XXs the and and well loans, other extremely The thing to re-performing particularly to is, non-performing re-performing currently prices see loans we're in prices, the in non-performing upper-XXs. on

I loan just you would the ago, in somewhere clock probably a that the roll pricing low-XXs. few if back to non-performing frame for you, the, years in guess, Now, was

increase dramatic overall loan in XX. this a our call pricing. seen Again, help as you've strategy So, Page well. should

call non-QM securitization from Shellpoint. on the million and get portfolio, issued from prior over delinquencies it’s two billion during XXX our today, securitization XX% net the of we the XX, lower Just originated of a an by year. million X.X legacy Page overview called billion non-agency have little and our billion our first were Delinquencies XXX if $XXX declined advances XX bond up today. quarter end, a were to be in rights. bit XX% subsequent billion, to we of could low and equity with collateral in rights call quarter, in past X.X loan years

some $X that we our first mean? approximately and with currently, to billion financed. debt a rate down we go put to to advances an also of healthier, million $X.X securities billion billion expect appropriate our at and acquire this us, believe the rate rate rates calls that back like we cleanup we rate What to protect to billion fixed Servicer one, of business, We continue the smaller had and Today, those securities are senior is legacy advance interest smaller of of is percentages as servicing X.X hedges increase. really will when fixed a billion. continue The X.X with during to help advances, I’d to portfolios, business, the we XX quarter, on servicer homeowners the all number's financed part and to business a non-agency got the portfolio, with and in decline. to two, acquired our going we and we’d that LTV. does point that It's On currently interest that XXX debt equity. at X.X loan of of legacy X.X% AAA

Just to out. that break

the do market the acquiring marketplace, page, part can't an we of the our come On loans this extent of quarter our I off in XX% strategy. out of I expect is Prosper are fourth to loans would to bottom just the very these. we'd seen that can, $XXX much look of of you on say loan to almost point pretty We say do options. be every If obviously, approximately more like call book the currently the to XX the of Most for acquired really IRR. through find we've call, this million. Based we the to and SpringCastle that. robust. XX we the just our think to prices Page rarely What this, on fairly we’ll rest in billion them try consumer our investment, have also returns are we year is NPL the loan portfolio, where calendar to investment. we’re love loans I

acquire third point billion the get to speed up range. with in X.XX consortium warrants we warrants fund Returns what been our something acquired loans do Jefferies along to of company. a XX% up consumer the issue exchange we We should is XXXX. have in of and loans XX% to along we've and The to to Soros, XX% partners. that. with in X fully February billion Just of and date, on agreed To for you of then securitizations of

one love And to of will MSRs in have the we think overall our is rates So up, before to wrap value, way assets up. assets. are MSR go questions. it to well. that as income returns We been turn very just extremely that Overall, over few we're good. positioned the rise continue I fixed

have or to housing some more us believe way. exposure. rate market, on more market our our funding of protect fixed key we hedges we’ll trillion our see a place opportunities increased We come volatility, in $XX and With exposure with

liquidity We continue place. good purchases and to and a MSR work capital, very we’re overall on additional in

So back the take with then to that, I'll turn could some questions. and operator it we


is Your George from with KBW. the of first question [Operator Bose Instructions] line

Bose George

first So in the just the money. terms terms where loans of in question, of prepayability that we are in market and the in are

is As much on for how the improved rates MSR? do trend valuations further, there up you think room

Michael Nierenberg

Good question.

multiple of mark bit overall little our on portfolios X.X a X south Our is a or multiple.

if that down, means it X you that or multiple a at and just XX some X I multiples XX see basis mortgage the break what strip asset servicing on have to X of points. and think could it and that's effectively, basis trade points, will that, turns you X

the basis us, quote I a simple, just when So at to X is points math equal point. a multiple keep for XX to

thought you multiple, X would points XX X.X. about If that be that at a a basis

we You’re Quite are we these with we where market one a numbers. step frankly, extent the but you just those strategy MSRs, rates seeing of the those in our this put place are to high in is we into, bit have believe back to production rise, have from done a extremely we -- some yet, of, them see prints, six the could a little towards but taken of will way see The goes, we out we a handle. up some to market -- thing that conscious the that hedge going or Fed go the protect to newer that company. prints have haven't value

Bose George

do appetite to you actually capacity? origination, acquiring have more an for And just then mortgage switching over origination guys

Michael Nierenberg

towards -- at Shellpoint, acquiring our do they'll could X really do take Mortgage of strategy origination mortgage They're huge, any MSR a very book. by be very business. not year. origination, the way really folks think would billion good difficult about give around more geared the which I The happen is a this is they job. or growth a

our new So, or geared portfolio. create general, will they billion of X acquisitions either with business, that for the in new production be associated But origination mortgage around MSRs of MSRs. any hard MSRs

Bose George

Altisource has just finalized one then actually change can been there from that or benefit last contract, any me, And and the the on you comes that remind is that?

Michael Nierenberg

been It hasn't finalized.

extending hope wrapped We with we have Shepro been it, discussion and if Bill group end. and have that up year we continue to in by his

Bose George

And is for that’s as look P&L? the there to, some finalized benefit once we forward should

Michael Nierenberg

It's this hard to at point. tell


Harter question line Your Doug of Credit next from the with is Suisse.

Doug Harter

what see about context of banking the about Thanks. I talk is sort you in there in the the you you guess, see the you if challenges -- wondering, some sizing of how the as MSRs, opportunities, were mortgage and then valuations. potential larger opportunities kind MSR for do saying of community

Michael Nierenberg

The that a path. we point today put coupon that of entire different challenged. to around to think banking or a mortgage partnership figuring X.XX that mortgage the mortgage having slide out out universe industry either X% I continue a do to these lot like that With on banks rate. we is something the in, smaller based refinanceable capital, be of going is current I one just

folks it's very, think do you very stay expenses, good. hard. folks to very if business. very production how So their very, is in about it's it's When come manage hard, that, how good, a going it's it's from, where When hard do business,

We're out through just whether or more as be it MSRs. opportunities outright of the come So our pointed side expect capitalized, I Bose purchases well origination way. to would

up MSRs point The other can’t is, go forever.

continue they'll to as go some So up. at they'll rates up, rise, but point, going stop

Doug Harter

-- what on to how we what’s the your expect securitization talk financing we should out or magnitude equity of then of on and you kind securitization, looks often kind you? originations non-QM can of of could like And about there return of the kind see and

Michael Nierenberg

get The a providing mortgage place issue non-QM be a a deal we’re to was to like the We're good with number in to would discussions to to issuing business, What where deal I around we’d pricing about we of did them volume. acquire able to other a deal. just more say loans, quarter. a bankers

talking Our business, for business CNRG been non-QM years not mortgage the has so. or about business, the four

be are We to how remains frankly, Doug, starting production more of plenty little is mortgage product But speeds going to market. seen something to down to the key this be more the we on and we're much to our bit this all we’re see overall going quite but thing a have other and be business out seeing keep road. of the -- it that and see should performance. issuance quicker it's on the We and are believe performance good, eyes


James. Your Stephen next is from question Raymond Laws with

Stephen Laws

your It looks the is in maybe strategy about but like, execute to that sizable bit call to about portfolio could very bit active on how a as -- behind versus when the we decision talk amount you forward? this behind last, little little about and move should callable, a call we bit a of a prepared touched business you on think quarter Can cleanup clean those talk that calls up you and executing less strategy, remarks. little as when that

Michael Nierenberg


it I’ll we from call -- math about on It's obviously. money the kind cleanup something the we're kind create for and calls, have one it, anywhere perspective, of is do a to we So value think from, P&L to make of we it going whenever this. could points on been call averaging, two to is time shareholders,

has delinquencies I stuck -- the sizable brought kind the market the around of such I I and advances. legacy population, up, that it’s XX a point On out, billion reason mortgage pointed that

step went a -- would and a would more got loans deals. in because take or delinquent better you would be The a for if money, much servicing got in better company, we’d put Bond place would senior place good. for services because reduced would holders, bondholders they then and and capital be whole our be the advances delinquencies back it outlay system make If their away more reduced, advances healthier. call them overall

figure of this with that is quarter agencies, XXX try of quite issued code, we’ll out bondholders, to with advances And really you you the took So there, to a and as really be the that can that. trustees, will way market, XX called our folks collateral, crack would all of go a that legal have of billion in figure holder, to goals is one work winner net clean the that collateral, deals, portion to you'd to have with a accelerate work new that But forward imagine, plenty push billion -- frankly. in if work up delinquencies call with scenario. really work a to supply, of that then, the come you everybody's our rating may because bond call only out at down bunch

focused So that's on where we're

Stephen Laws

and to on the Can side RMBS, of sequentially. there flip XXX an investment about like that face legacy acquired million the then grow opportunity non-agency to And you what portfolio? that, you're looks talk seeing value continue you it of increase

Michael Nierenberg


So, the pretty I've quarters, not investing past great. environment been is of couple the vocal

our we purpose we we’ll that strategic assets, have that do related is However, where these call opportunities extent purpose a to and strategy, to so. see acquire to the strategic

quarter. for the in example, was the on dollar those securities quarter average our for XXX So, $X.XX the weighted million, price

price our rate non-agency would I is softening or overall, be which softening prices $X.XX, don't is our see around So when pricing, to strategy, call floating in extent obviously weighted think average accretive about but for volatility you a something us. yet for give it, legacy great I portfolio there creates our market the take on think that

So investment opportunities, they are there.

point. rear but at their We’re little bit, still great see not starting them to they're this a head

Stephen Laws

much to at opportunity you're what the a you into if recession, Ginnie, head good you What -- then capital? continue see putting the places we other does and capital that looking do if on us look to update can economy place with if the we’re seeing deploy And turn? is market there

Michael Nierenberg

As we're pretty Shellpoint Mae of Ginnie, Quite it MSRs. to robust say. -- relates the a not Ginnie frankly, pipeline, would is I there's licensed acquirer

as Ginnie -- I as think let's risk, related because attractive taking a dollar price on are are on MSR, not asset more just conventional overall the to either side today. or to you the where MSRs is the They're the us, servicing class. say,

going we're they're for If work return like to plenty targets a capital. we’ll get we as them and MSR, MSR, see pricing Shellpoint, the So, overall. deploy are I little work probably of think Mae of deploy plenty think but cheaper, to with we there, as on not we'll seeing see Ginnie the right side enough think, I cheap now, we capital

Stephen Laws

for And third about on then forward. time Are we one what line in impacted a line, expense that expenses just question going the should that as G&A the think that one number quarter? final normalized any there

Nick Santoro

primarily There driven is increase were expenses is What no the the Shellpoint acquisition. one-time you’re the quarter. by in seeing


with Your Barker Jaffray. question is from Kevin next Piper

Kevin Barker

In Shellpoint, gain to how sale originations quarter did margin what you on was? the lay you on could regards this many and UPB out

Michael Nierenberg

Shellpoint’s overall going something the be around volume billion. origination year to X is for

not product is coming in products it divide it the frankly that from more -- much. it’s than it's if of on the So sale up -- gain we non-QM the and agency been side. so quite has non-agency -- The from been than quarters, some that it has

I’d on kind but a thing. say, meaningful It's agency a not frankly specialty products, gain the But overall, non-QM not -- low it's on sale would gain. we're So, overall, on not I'm and very of to jumbos, huge. very, and going the say, side seeing that's of the prime where I quite kind count

Kevin Barker

a much for the How than see total quarter the X fourth year? would obviously. what assume quarter third the in to the represent -- a of how third much you billion first going was you’re the as year, I did on On the percentage quarter seasonality, do higher and

Michael Nierenberg

back probably you is you. me back be to have let guess to number. actual get My around XX%, will I'd an something get with it but to

Kevin Barker

then was of out Shellpoint. Okay. And much revenue servicing coming directly how

So -- gain revenue when increase the in allocated directly was to the that servicing increase sale, much how so Shellpoint. on and of in

Nick Santoro

of terms out approximately coming servicing of million is In revenues, Shellpoint. XX

Kevin Barker


you net from P&L was the from what when Shellpoint contribution actual quarter. so the in income And this the Shellpoint, increase expense, think given about G&A

Given some lot what there near on the on is -- you is a the at give an of gain pressure we’re margins, trough obviously us just P&L Shellpoint. industry, of idea across but can sale

Michael Nierenberg

the we do I Yeah. mind, the of as $XX -- about But more from It's the July P&L grow. non-QM million look, and it's coming we a in actually on bit origination jumbo, for July. We’d the as origination coming X quarter, most little the early or but Kevin, side. only There's we side. think, more from servicing we closed should keep expect, acquisition,

the in going a a it to will different So we together way strategies telling we forward, on grow and the as more fully story work integrated be company -- business. as gets

Kevin Barker

potentially the expect fourth into first you effect then just current to origination significantly and within the mortgage because from that Would quarter, into the market be of and there seasonality middle near increase XXXX? levels of

Michael Nierenberg


a is Shellpoint. Here think to way about

even be an perspective. P&L quite think origination that billion billion to from X X billion or business I is not origination of X overall at the going or meaningful frankly

their are. real is The and and I a team be, job, that, down ish could the Bruce ’XX business done that. for what budgeted numbers volumes the building a great origination continue our third-party $XX servicing P&L going around it's something path million have with around depending they’re to business, think, think, others for business his upon I

I to XXX in that as third-party and and it’s the billion, that where client does quite more business a NRZ see to end, year side third-party Bruce only, in get hopefully going the third And We project What and pointed the put and clients grow in that, and Jack way, think servicing team as has It's same see growth, will well. and the is a the growth. XX billion. continue to you're revenue business. not from at I earlier, be their out going we by frankly. we Kevin that's grown business clients anybody to we're party growth are pricing

of do we and business, opportunities title appraisal part they other and do that services think The they there's other as where well. an to and grow for is have have ancillary that

and changes forward, the while we the Bruce some to new that we're will the other at So able for perspective, be overall, years, it into the what I able you to where growth they we then know will expect company revenue clarity the think from be the profitable and to and company, and each I going model a relationship there we thrilled It's and XXX grow. give should be expect more do think into more we're But we'll down road, and with investment. truly a be. –

Kevin Barker

is And servicing portfolio. existing then when you refinancing platform think that about Shellpoint, right, utilizing obviously, part your of

can portfolio servicing either refinance how the that much your own UPB Shellpoint existing you or as using you of originator? So

Michael Nierenberg

other with -- there. we is with origination a production of on We called some servicers New arm, newer bunch our of and have Currently, MSRs agreements are there's will which Shellpoint or working third-party the Financial. have who Penn don't

thing to going or other the go become with highlight The meaningful, is, recapture rates less rise. to forward morning is XXX we wherever want this to mortgage rate the as today we extent I that are

So in and I business, around it. think, will be the origination challenged

with side some bit serviced now, we MSRs our partners. get that are the the that the a and little legacy origination for other be the But rating that lift on continue trustees transferred as doing of some a of our right on servicing could is I of name on at and into think us portfolios work the opportunities to agencies.

Kevin Barker

ones, Are there including you that when portfolios you any of more servicing, the but the look they have, umbrella Shellpoint largest the not an refi under all which of is that now? out access So are portfolios, the Nationstar, can Shellpoint. ones largest Ocwen, or at right you are which purely

Michael Nierenberg


New the Penn stuff and a July. on seen think quite some closed collectively recapture as a other a strategy. Have early the under decent of it’s Around I Cooper is that, around or Ditech $XXX a on is Ocwen That need again, PHH of job I services, PHH obviously does no, from provide job for to for Shellpoint working and there. and ongoing on billion have take for and a give example, that. Ocwen extent us to disclosed mean, in we loans a or Ocwen recapture. that? on around stuff, a well. do recapture portion and are us of frankly, has use does extent Ocwen today. good the it little lot The rates there's that Shellpoint to Shellpoint just Mr. we the answer job together all fruit refinancing And, integration because, that folks done around good PHH Under

So, maximize cooperate assuming think a we'll that it's in rates that fruitful. our we way try recapture, to


Hayes from is question next Your Tim B. with Riley FBR.

Tim Hayes

rights on call A follow-up the strategy. quick

was what the quarter? this earnings contribution Just

Nick Santoro

$X.XX was the It for quarter.

Tim Hayes


you Okay. if weakness pace optimistic, and outlook at your on you're also this DQs right that credit And some those but signs of the signs seeing can your call business dampens just and of and for mentioned all? ready touch for seems in pretty you outlook

Michael Nierenberg


seems higher housing up we’re market side, been obviously, great. slowing not of I weakness. recent not result of I as -- think down, really resi housing like credit some brought it's seeing the of a signs have on the rates, prints the

should we believe we execute call thing go have economy to continue I overall, have rights, we’ll healthy forward. if The fine think you consumer as like healthy you on a and on strategy. for a our call be credit believe, I us credit been real

the clean shareholders the lift is everybody. a it's do way think legacy with can I big try market. mortgage up our home figure to a to we for run If out company and industry for our to the for working that, us

Tim Hayes

scale I banking on know then in And touched earlier, what is you more are your execute you say but years on three would just needing from the briefly given business, M&A you to this those or ago. seeing mortgage opportunities point maybe M&A you challenges greater than and at two the highlighted appetite

Michael Nierenberg

yes and answer the is think yes. I

or quite a the lot would we’re as acquisition, very more it's a seeing bankers. for more it’s lot say, for for appetite time around I Our banking there incoming, a folks, mortgage assuming accretive always is today and challenging shareholders frankly mortgage opportunity just that today

Tim Hayes

earnings would comfortable ability with feel you to said, that sustain with the in portfolio? core With your you power say place

Michael Nierenberg

do continue As to best do to much we to can we we're going can, possibly so. as the

and way to to continue very, So, statements, difficult We core in $X.XX. continue forward-looking to very up. course love for to that us pay add the We home think hard our we it's and they're stay and replicate due earnings set where general, can, we but give that love drive our we're to to portfolios.


Your from Instructions] with question [Operator is Cranston Securities. JMP Trevor next

Trevor Cranston

detail non-QM within a give family more to rental a you non-QM are you flip exactly follow or Just the have space. bit an And business. guys as secondary as opportunity, discussed on focused single Thanks. of as on what Most that products on find but the like little there's a already, then around can you can of if if up my loan you questions question, lending. fix that any been loans guys discuss a maybe other such interesting types

Michael Nierenberg

in been side, the of times the the of extremely are someone we the through of world product on careful through out. world, and in best all, the roll of kind mortgage we mortgage that the First on origination worst been being that's times

asking details we but it think bank a for, self-employed get is we're that's FICO of specific going borrower around statements the we general, of to could or that when et of be borrower back times the the to all on in with deposits, see. who non-QM type So be borrower, XXX that have verification I’d the what cetera lot and plus to about you a

fix On we I’ll all. at them the is down And it of just to flip types products, a for me flip rental look other break and and fix second, and actually REO interesting, to reasonable get coupons. I pretty can honest loans there and yet business. I'd us like you to with at there. if a like that be We're XX to not make LTV see

July and some working we’re think Kevin's acquisition think Bruce closing and I explore Going I those the of some we’ll and team with opportunities. his back of to questions, just

rental to frankly. quite business, we're OREO the late, On

think at we -- I'm bit sure say, and will a this haven't over you cycle. slowing we in not just We portfolios, or gone are different down we've if seen rolling there just housing's point I'd little the here but

that call of we own amount OREO a create have our We small from business.

if If the unless late. be XX loans of they dollars, the up think cracks interesting you're don't around you better call I -- we we're percent going million right back, to we stuff, in and pull XXX what rental quarter x think believe are. It's now that take we pick of with the to that deals We a call, than far not odd last just each truly for is but step XXX going that something returns in be could we play could I OREO just OREO. to


at time. questions the turn to no presenters. are back the There call further I over this

Michael Nierenberg

joining for this to of questions, us I just we're morning. in A position. look to, again thanks forward think lot good great a Well, summarize,

power be is very Our portfolio capital our very to of strong. base existing good. Earnings continues

put look and positioned on earning rate views are interest to and shareholders. our continue consistent with for to numbers I Our way forward the we're you think hopefully we call next up the that good updating

So dialing a in. day. great thanks Have for


This concludes call. today’s

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