modest economic quarter a credit how of the mortgages, entire I’ll JR. core quarter, consumer each our coming quarter In from achieved X.X% the for and QX outlook leverage for the the contributions three return we strong X%. Thank and performance fourth an commercial return of total full evolved had quarter portfolio loans. only had and EFC for the our significant mortgages Today year Overall residential positive you, for with year, review EFC. EFC and months. strategies: the a the in was
product achieved having leverage, protecting Our return storm cash or selling mention and moment reasons decision, to the March shocks prices. that distressed lows, most invest. remaining you credit the sensitive you then that what didn't against sell at for our I able of assets in was modest of downside reason the March X.X% structured leverage much because drive seizing our weather deeply focus future performance was into Too to opportunities, coming year is EFC on assets One assets. was crisis QX last any to was volatile every modest and to assets with one the that have primary at the without leverage simultaneous in both ever guided probably had
demonstrates credit year the for disciplined our performance underwriting approach Our to risk.
We are believe and is see loans. have our continue individual the of certainly in a feel but underlying where that assets There large today. headaches property few resolutions well that to confident loans underlying loan was we investments cash remarkably flow highly I portfolio by on few by the we’ll and favorable covered the value the these challenged,
standards You bump. a company's can't really a the underwriting hits speed until judge market
bump, market better three many Before the across the lower to everything into of U.S. LTVs, the higher credit But given markets, practices consumer. problems looks in areas the substantial the extra focus, same always the test of and it XXXX underwriting rates, FICOs, put have to the you'd residential, to disruption of really performs its and capital economy EFCs note the the speed the rather because were have and commercial chased yield. in and shown higher sectors
was our program the with one have assets new and to and and really that our offense process, performance lending origination Because us appraisal was following position to allowed because underwriting attractive. were our Yes underwriting origination a loss it a related the reflected off of Non-QM crisis COVID in were lending lender a really in two strong some when in faith that had spring paid delinquencies, worked and of great ways. we policy. our play EFC its but closely non-QM partner for the servicer challenges opportunities believe as has example. restart we our manageable first so we had confidence, in are income, including distressed the significant that yes that Our LendSure was secure, of our and is borrowers
earnings volumes; LendSure and increased and the rewarding less at new share immediately competition, to in core attractive buy at increasing LendSure by profits it market any non-QM responded community with securitize First, loans able were levels, with broker which prominence drive in EFC. second, helped highly we
many of of XXXX the core So demonstrated our principles. I think efficacy
rarely The many first seller March core turn extra incremental work performance. with leverage. when the can fore against spreads out rewarded end of long higher the on or you, Obviously closely.’ or risk-on two an being saw turned but earnings for but on core been return case, with we credit It certainly last that for to were lot spreads must over extra are of leverage flexibility an turn principle upside tight the have when additional reach structure and assets, buyer an is the to in move March quarter the stable a the be under if at law being balance off. asset like managers managed ‘monitor The slightly difference our is facilities just too. and of of we term between leveraged sheets our are and turn a is your for should The long a liquidity over past run. the sold leverage quarter, extra this matters type a they enemy like leverage when of marginally The non-mark-to-market opportunistic had just have also turn be not several market higher, added term resilience leverage prices attack a
in The we I to a can second In close lender LendSure We market. buying is originating to the ultimate our our Again, when great think example. model is as product like are – principle securities borrower. and than investment product non-QM we core you secondary you the you’re business loans a as manufacturing just are, by to this issuing the better the directly get securitizations. try liked end
priced good underlying about which non-QM but under yesterday, note the a priced the We was deal, at AAA rate X.X%, a loan is Here's the yield why. the illustration securitization on deal of average tranche, XX% X.X%. the
spread enormous gives financing an us that AAA So cost. over
deal lot The there's course a to to we originated a take we loans fees. here. and prepayment have equation and more absorb risk, Of risk the premium; credit
they've process, understanding So we it, with I the simplify and gained originated, of credit. to of to safer much getting entire the by borrower, think compared when deeper able securitized. warehoused over we're much credit just buying them I yielding closer frankly homeowner to and the after more closer don't and the involved a but want to investments manufacture higher the ultimate to the the We are underwriting are been borrower risk and initial overseeing
equity of The third originators we own think businesses belief the can is their in volumes in on term addition ebb community the not franchise for sale and by Gain represent they theoretically core and and because short bumpy capped. is in road drivers to ownership our so originators origination that don't investment flow our But directly that, the marketed excellent Only term. generate can value, bumpy material core time, stakes underappreciated be our value. can the we a can and in in are be can short upsides times. value way margins income alignment principle our be long and great over to origination a grow EFC - platforms, be in book book they
for correlated portfolio us our advantage so earnings security sometimes inversely is Another these of diversification. with in can the some investments be enhance our originator are counter other that cyclical and investments to yields,
we while resolutions had completed both portfolios, For securitizations. our and two many credit the and even grew we agency quarter, loan
which November. our still Leverage covered core increase. and has Our room in low earnings is dividend comfortably we to raised
grow several opportunities that and be we're dry result little we That's also that portfolio quarter, Consumer some of should deployed throughout powder the pie have some the resolutions. shrunk substantially was November. do did securitization intending Looking but very NPLs so. past that to that’s attractive building currently had banks to portion slide in a we're we up of in inventory this in to a consistent CMBS us loans defaulted year, mainly the seeing the commercial given and loans, shrunk seven, expecting loan deals. of the where We're at chart origination the at commercial help performance due our to on successful the strategy of
We we of expect loan the The grew transition both loans, in growth and from loans securitized. non-QM portfolio. residential net mortgage portfolio residential that even
Our demonstrated allocated year up than on had finishing quarter, portfolio strategy strong to the its more strategic agency company also again the capital. agency very X% another The value XXXX. in
March in Over also last the years and not April. times such a as return, has only it of source of stress source liquidity been it's a been but of
fourth strong as of quarter isn't as it yielding asset into quite which appreciation, start bring the high was the we of significant came means of core Our well a earnings start the as price from the combination that as QX. at year portfolio earnings,
of of of CMBS, we the the things the own. quarter true loans of For securities the In expected plus some agency way true less we for at the consistent targeting. start, financing But and year, it's the we than yield expensive some more our that's terms. looking half sectors seeing of last example, in are also end for at was second many with credit better the for potential are many
Our to loan focus strategies and forward and grow to our to focus both is going securities. real-estate investments continue consumer
in some expanding seen focusing incremental mortgage particular on agency month. yield rates and always, non-prime could investment improving and as already steepening curve arrangements. financing demand have are drive attractive and higher this A in our and we opportunities non-agency We also sectors
to been originators. footprint we fertile so and our origination supporting for resources has focused very their in continue they market businesses, on can grow to a Finally, are expand and providing what
Now, Larry. back to
