non-core this and residential the quarter again adding spreads our non-qualified active some repositioning to holdings were We selling portfolio, assets. Bonnie. as widen and Thanks, mortgages
our spread our interest in on Through executing first we rate grow notes million was and year, was notes of as noted. into we loans were last the both rate securitization million principal us we quarter XXX has to the whole The on collateral the economic non-QM XX% of July, obtained. During and the portfolio enabled was and by which portion pool we on into payoffs translates which Bonnie XXX and and offer value, weighted adjustments. return as the of equity modest basis an completed transaction have X.XX% we the this of the in mortgages average approximately residential approximately of contributed rate loans of coupon In year-to-date, of an of estimate loans, acquired half of XXX impact securitization, points, X.XX% of fourth of placed million before purchased the for which million weighted long-term to latest fixed financing anticipation XXX securitization, the amounts our on net XX because X% the between mortgages we of average approximate XX%. trust, mark-to-market over our discount par
long-term was the permanent past believe lock is this it than While to lower in spread securitizations, we in time financing. right
than X% of quarter total continues in value of portfolio XX the underwriting non-QM their Our at being perform less end. loans borrowers quality terms meaningful high our dollar with than focusing our credit of standards, delinquent homes. equity underscores on days have that This well, to in more effectiveness
loan-to-value score Our original borrowers and for weighted origination average XXX. at XX% average was our FICO ratio the is
housing to supply well we While remain market mortgage demand more we normalized home dynamics and and price believe the expect recent historic its higher from levels, will moderate rates. supported with appreciation
XXXX X% for appreciation As year adjusted flat, would of pre-pandemic to at around In a forecasts half a still anticipate the we the leave be home price which return result, second our and we appreciation beyond, the to lending second qualify X%. have XXXX national demand at today per or levels meaningfully in around mortgage to stand will rate the have year, fewer as of X%. rates, of is Non-QM expected year. higher borrowers contract which of X% to half
We funds. market higher be cost to also by continuing of see pressured returns
current and market are is from provide the of prices second high the defaults While today's there XXXX and carrying half rates therefore that we to and incremental price see XXXX pricing do believe decline will implies. corrections market will and We that to home significantly. into WMC. to potential activity value benefit volatility spreads expected strong the the return that normalization total believe moderate, risk expect in spread the and moderate significant We of of not inflation or and housing
commercial turning Now, our to portfolio.
aggregate expectations. in performed discount just During of a although these only loans currently loans commercial with were quarter-end, by mortgage of to $XXX million holdings widened At the sector seven marked $XXX fair million, value the across loans negligible second $XXX have in our quarter one but spreads performing held move. represent six a The market we principal commercial at balance of generally modestly and credit are million whole impacted at commercial cost. line over the
We loans refinanced. or pay next expect properties off sold several the over quarters these to as are either
and pay to our depends and engage of when to potential With are and of offs timing whether the been continue complexity in ultimate the no backed respect process. borrower loan, several assurance resolution these there lenders on could the negotiations and have and expected the entertainment property, retail of longer certain factors complex However, These and to the Northeast, involved in junior specific potential occur. number taking as located payoff by than ongoing to pertaining discussions loan judicial alternative to mezzanine months be other will each due structures. the realization with the to parties a for or we regarding somewhat
are property in the We and attendance, encouraging positive growth believe continue sales and meeting as upside seeing activity. as to has well momentum in significant
hotel million, outcomes similar the there marked uncertainty non-agency Within remains is value This and loan is $XX.X have As our at a valued million cater under of regarding currently these risk portfolio leisure we mortgage-backed to a possible of quarter. the slightly properties our certain noted ongoing first credit given the at prior loan previously, consists retail further down to commercial $XX scenarios, impairment that of portfolio mainly from Class securities, travelers. quarter. large A
assets XX% original at We these This had our million either remain to momentum representing one portion less properties. are number positive portfolio operating portfolio current. than of high-quality of approximate and see sponsors. equity $X the these properties loans generally of with strong continuing $XX These an million a are loan-to-value of
their collateral that believe values have impaired. So not we permanently or been materially
million during now we were holdings investments RMBS, our that whole to investments, million on now non-accrual new values loan debt sales and focused sold CMBS to we pay remain optimizing that purchases these the proceeds of All recourse CFO, proceeds is CMBS CRT Our our during The the the non-core referenced. assets target $XX.X sold over the intend Bob? levels commercial call our fund reinvest were quarter. portfolio over exposure Bob $XX returns. Lehman, in portion partially to and securities attractive, conduit offer residential We valued quarter. at our conduit non-Agency those to used together, the to adjusted as including our from of into use and to down continue I'll the risk turn equity recovery just
