on joining Paul, call. you, Thank us today's thanks for everyone to and
As to another navigate environment. effectively morning's challenging you strong quarter release, see can through from we continue this as press had this we
very and this market, expectations. our the positioned we in our in line discussed and business succeed in with executing we As past, to appropriately the we effectively are plan company
time countercyclical consistently over structures major model are in margin. wide well of has which We and with peers long are liability class to asset capitalized, in outperform a income have financial invested a allowed and category with by the our appropriate a every diversified streams business period right us the many
value fact, have dividends have a the total our book negative cut and erosion most significant years. over experienced of generated their X return In peers last substantially, have shareholder
and short As see and results nothing remarkable, in charts you a we can we leader our posted many outperforming have are stated our space. on the of been website, the and have from times, clearly consistent
As for to we discussed be the we and challenging well this expected X leak part the third of on as of year could last longer. most first I cycle. calls, the fourth few the thought quarters remained higher quarters it into rates also the
less rate see result in positive around and With we much and by rate recent becoming able deals to off XX million, began a market. significant in Fed and a buyers fixed point the -- cut moving sidelines a the the far borrowers drop outlook and becoming access as more of XX-year costs cap basis the being the less to of X- becoming to expensive and tenure agency $XX active low a extremely
recovery will has And changed the our a bit could consistent is now However, again be backdrop been lead in with to XXX, XX-year previous there's somewhat believe fourth the and the quarter, a to little guidance. slower tenor. we challenging which which that a
appropriate. renovation $X.X fund be interest the to very getting from a interest into and rate This fresh and million these deals reserves purchase caps, our equity interest third by the collect injected loan to to current sponsors. $XX effective In with of of rate balance of past pay bring to cash and committed includes down new recap working interest deals portfolio job caps. we billion where do purchase quarter, to continue through bars and another loans We their modified
at billion consensually progress or the continue make of sponsorship into XX June the either either $X in guidance by them simultaneously previous bringing foreclosure. closing loans taking passed approximately REO with due for our also on or these new with modifying were line in to loans We that
would XX% loans we fourth XX% of in as the modified XX%, on we remaining to off third pool quarter, expect XX% back be taken these another we Last and be discussed million successfully the $XXX our roughly to of REO. XX% modified pay quarter, approximately modify these estimated In XX% plans XX% would the would or to we loans, and quarter. for and the that
million next the of $X few we're plus in third We and off one payoff over to in quarter the quarters. $XXX million delinquent also had loan expecting for another delinquencies full pay
in REO just roughly back is took over take to in $X million million or XX had down This next loans quarters. $XXX strong progress $XXX has few another a June September quarter XX, Additionally, XX% and quarter X $XX of the third to plus reduced billion to million as the and in we at we delinquencies back are decrease. expecting at over
additional million, did we the we delinquencies $XXX which second at experience from new resolutions quarter million our onpeak in delinquencies expected, $XXX approximately of resulting a in our defaults, And environment, bringing approximately total total we additional exceed quarter. while XX anticipate down XX% to September queries will decline during continued delinquencies. in having as our billing is this the in But believe
to $XX important back we new own REOs sponsorship million and to in to also operate and we and operate own debt. in $XX operate assume very Of and REOs took our operate we successfully million, new distinguish take we that between million, bring of OREO $XX sponsors now we the directly. in and and QX, a It brought is assume and back ourselves.
which objectives. our in pleased is are be achieved, earnings. assets income-producing investments plan, delinquencies working in the into accordance our our our the hard and highly that and are delinquencies progress will resolving work, when I'm making our with in to demand in will noninterest-earning a very future convert with accordance challenging we exceptionally accretive resolving We This with
this levels have with the we million the in approximately liquidity and our needed opportunities critical adequate formal of capital. maintaining balance appropriate and the environment. on flexibility liability on exist take success this Currently, is to we which generate $XXX advantage and focus to us liquidity, providing in continue also structures, market We cash manage terms in to that our of the downturn through this to
ramping short bridge bottom is platform. lending of opportunities of have before, best loans And exist to significant our build our us level in is is strong to I pipeline critical future program to time of agency cycle. while up are some that the One and loans take some the allowing deals, best in again lending short-term to returns our advantage run of of bridge continuing the the the said these believe a to generate bridge of We made the in times appropriate our the capital the start high-quality opportunities up originate strategy. now market of which on
our debt. balance We have and short-term deleveraging on reducing excellent exposure also to bank our sheet done an job
We have have down $X.X secured approximately of CLO nets our of in non commercial the is low outstandings billion, nonrecourse with billion and mark-to-market, banks, in we which peak XX% from $X a vehicles.
a strategy, nature advantage tremendous are major strategic of a of dislocation of they to us and times provide elements. the with the and CLOs Our in nonrecourse our due distress business part
significantly in and like warehousing to parameters. contributed banks, a fluctuating pricing are times alternative this providing which points In addition, lower leverage they cost for
equity as income our drivers In of to that a business We changes outsized a low-cost are debt well and us make rate fact, which very returns vehicles big structure. our allowed capital substantial our low-cost, has our long-dated as our generate in to one sources, fixed instruments of the approach continue CLO significant amount to of were strategic part capitalizing capital. with of on a up funding
third Another significant was volumes. streams resulted a of we major originations, of $X.X cash produces value our third long-dated of we quarter agency our predictable produced to capital saw a which increase in income the agency unique is massive billion, in and $X.X of considerable which as immediately pipeline big platform, highest annual generates also which the with model premium a have requires second dip a we In billion component range line it approximately tenure seen. our quarter, one agency is and limited our to in flow. $X.XX, which the business the levels to in significant ever quarter, $X.XX In offers
the by the compounded agencies delay significantly affected of got to up in certainly backed which creating backup weeks, closures, frame, a X by is time was which again. our recent X solvable that the X% During rates timing of above
in $X.X we factors range If fourth the at of pipeline, in As we stay our be $X.X a quarter these rates levels, billion quarter $X.X very again, which our can our $X.X billion ranges of billion. we for guiding dependent. of is are meaningfully the fourth confident but can below confident originate and are billion, the given if to produce to volumes result rates rate get these of X%, the magnitude we
We do balance an always been and loans our into a also key X significant continued strategies our to product, sheet our job from converting differentiator effective agency peers. which at of has
production. the months agency $X.X of become billion into business meaningful payoffs decline, for of XX% interest XX% over we these forward. fixed loans our if $XXX $XXX into or quarter, In deals being third we runoff an X sheet past, generated that more year have this as million million continue first captured or agency even balance we and in of rate refinanced of the this rates will And the of expect I to our part said going
another approximately fee-based $X servicing year-over-year grew a generates which portfolio, cash X% in compared this flow. $XXX Our and million billion, to recurring XX% quarter year
generate strong also our significant cash We earnings balances. on
roughly cash annually totals which, of X.X% earning annual or our million are or a we $X.XX earnings and fact, around In million income $X.X of gross combined $XXX share. $XXX billion balances with on annuity servicing
sale to vast margins business extremely And our before of gain generate the in The lights day. that revenues. the our we important our strong even is net platform. generates to This on occurs it's emphasize over originations XX% on turn of every agency from which addition majority we
to unique completely our is This platform.
strong top We to year platform. of continue funding and $XXX is of another from do numbers brings $X.X had already right and job commitment on in billion, growing million with to volume billion for which commitments the now this up, of total X-month to brings We our an business. another last quarter signed all single-family our rental our $X.X of $XXX million excellent ads which total
doing providing level to turns pipeline X short we benefits streams. the this by committed of our our bridge and remain business have and generate and large returns term diversifying offers construction, while lending opportunities on income long-term a is capital permanent significant that through in Additionally, strong further
when capital make capital returns very business. XX% to generating accretive obtain unlevered on high We to This returns progress we steady and by XX% is in added produce our our business can a level we mid- returns continue newly our to believe construction also leverage. a lending to initially
the first our $XXX LOIs closed quarter see and the We third application $XXX million in and pipeline in $XX additional and we current roughly and bridge of our appropriate $XXX million, screening. to We permanent million with continue capital growth in it for turns and deal lending product in believe platform, our construction, deals under million X offers us agency our opportunities. is this through on for very
And future our again, grow to expect loan agency lending and amount we generate significant continue and be SOFR products construction a importantly, of our to capital, seeing returns our while book balance on between very our sheet production. strong able to
although results. our and through plan are to call improving, to peers. realized still We to is continue excellent outperform and deals had an assets that to over balance the to execute our market job to equity as with this of to our to through loan productive dislocation. take their financial positioned there this well backdrop working environment. quarter we a and working bringing of fresh well getting done we quality believe our through now underperforming and We to through loans. lot summary, manage the Paul very manage I we in nonperforming will And manage another the in as are in feel sponsors the have recap work through is turn bars we be we working business hard done book In you
