Thank you call. very our joining on the much, call President; operator. Thank Ajax this CFO. second you Mary Corp’s Doyle, quarter Russell conference are Along our me Great with Schaub, everybody for
to started, Page you X safe of Before we point the disclosure. get the harbor I want to presentation with
continued and previous the delinquent increase, you purchases our loans performance continued quarter has their of of This from time of rates. has expect, and of discount loans of from application XXXX, and loans our our purchase of of reserve May. mortgages discount, as from reduces as pace to because did mortgage second of into continued payment velocity would months low recapture the homes, XXXX Prepayments thereafter. In accelerating venture as excess regular by required GAAP reinstatements of of performance well. slower expectations model mortgage mortgage at This equity GAAP the on effectively, income on which and sales interest their the the particularly given at return quarter structures flow for in cash then forward loan refinancing income in borrowers current CECL. are loans in a acquisition credit and April increased joint third The
significant $XX XX, We unencumbered post-CECL approximately of May, loans. cash. the yields million currently in for we increased increase a velocity of However, the June well securities have cash all-in quarter. as $XX April QX, cash flow GAAP had At approximately as of second has in million amount in even the particularly and bit
Page In the business overview. X,
characteristics market enabled longstanding of the ability transactions probability reperformance. and managers’ mortgage geographic have data for analysis in source resolution and that XXXX. transactions probabilities to three us guides of acquire through relationships and acquired loans quarter loans metrics different believe has prepayment its performance pathway XXX in of loan these We continuing science second and/or the including to Our material we long-term XXXX, loans since
greater and consistent Our prepayment structures time our And more that the loans. a resolution in data affiliated XX% especially up days We’ve at our or approximately increase timelines, managers’ sales, delinquent loan to in be for and processes AAA-rated feedback from non-performing servicer, Funding, certainly a than paying property seen delinquent permit and loop of loans strategic non-regular advantage with XX loan provides for Gregory analytics. performance, significant securitization. of to
a XX.X% have economic warrants. between We servicer our and interest shares in
Our evaluating as private servicers part out and some round programs ventures. driven of new through the equity MSR data and joint currently strategic rolling ventures joint technology
merger part an X. the their as economic servicer described in important was Our our interest release press in agreement Ellington Financial of of July
low times. have At still is corporate XX, June our ratio leverage. We leverage X.X
Our asset QX base leverage X.X times. was ending
markets, currently in clinic and REIT net a XX% freestanding large private invests in specific multifamily properties that national veterinary Gaea of interest conjunction Estate repositioning primarily also a a is veterinary own Gaea Corp. We practices. with equity owners properties in Real in triple lease,
of loan public expect and at interest bank disruption and Gaea and Gaea of sheet per CRE our opportunities carry balance We The market. raise Gaea. creates for company. the current a become lower our more ultimately tightening optionality cost We on credit equity currently additional to environment
It application $X.X million securities recoveries of from excluding income second was $X.XX And in Net of from application million. now was approximately CECL quarter. including $X.X income for CECL. loans of a million discussion of from and the the the interest approximately interest QX
a three reasons little million was lowered. $XX.X income Our is million. $X.XX of application GAAP the gross the are for interest income There CECL interest excluding why
approximately we quarter second loans versus lower million first the interest-earning $XX securities quarter. First, the sheet on had the in and average balance
loans performing. more continuing are significantly expected than we become have to Secondly, delinquent
As we in delinquent can which they flow loans loans performing, discount, become since buy longer provide duration increase performance this a extend at expected a more lowers but cash over yield. period
case the cash environment, in hedge and yields increase of recession and delinquency However, increased housing as a material provide declining the yield corresponding a would loans these duration and price flow materially. shortest
the so designed for is would after reserve recapture reason income CECL banks primarily a write-down. goals part of lower of if CECL. cash greater will NPV is par CECL loans, And interest allocate our allows was loans than flows cash flows. established of We for when the the third to to previous NPV come the expected a discount. basis that purchase loan allow of we pools design that contractual it with new of and us of acquire under The accelerating our
joint recognition in cash are income. expected allowance expected of change interest reduce discount in to accretion. in the our mind increase on up item loans. reverse If required income income related keep is GAAP we periods, from subsequent portion cash yields flows to shows from in in immediate ventures of interest into from income interest loans A these that the flows and increases future the the securities, This not to
securities for joint interests, these waterfall. For paid venture securities servicing out are the fees of
gross joint unlike which is ventures income interest of So fees. of is fees, from net income from servicing servicing loans, our interest
the lower venture decrease investments investments, since we directly outside loan amount. joint result, loans servicing joint interest amount of by be corresponding have ventures will purchased GAAP a been As of servicing offsetting expense than GAAP growing than faster direct fees and if the will income our by our fee
An of the made XX, XX XX, the our of three I’m months and year This loans. the sorry, March interest time XX% XX.X% our payment or is compares to by loan or XX% at important at At ago. ago XX% discussing performance at made payments we purchased portfolio portfolio. June last least income XX a loan UPB the part of of
loan XXXX $X.XX maintain in these leads months the last and relative and Increases housing discount patterns XX reserves nine the we’ve over and income in previous purchases prices under purchases. quarters. the recaptures helps expected increased additional purchase reserves RPL unallocated to present decreases the the second related to recognition NPL of value CECL XXXX And materially of payment-prepayment in of the reserve Our in had each quarter. million of in
While quarterly reduce extend typically regular higher the this have the result loans loans that discounts, average, we Loans the become regular purchase therefore and interest do yields. that can higher and paying durations pay produce shorter to not loan in of status percentage monthly cash and loans yield income. migrate they on portfolio because at materially life can flows total over on duration
prepayments regular both though. non-regularly and loans that seeing from property are paying for sales We paying continuing, is
quarter venture in Our of loans getting ready agreements in by related joint for average higher weighted some funds of the approximately cost and second XX Most comes than points. basis and remaining floating agreements from the securitization quarter first securities this increase was rate on the repurchase repurchase SOFR.
$XX in make that to Net in to income attributable share. Page easier impact income items common several as had stockholders $X.XX as XX-Q. our it are a million ties negative follow, XX this an that of or to a on on operating GAAP this presentation table well was note have There income quarter. To little we in per earnings
$X.XX $X.XX for decreased per two was in earnings income share. million minus per of QX or was $X.X share. Taxable reasons. primary Taxable negative dividends income Operating net preferred
loans duration in duration. based in loans duration duration, performing monthly expected than yield yield contractual not performing extends significant the taxable performance even is First, become taxable income income increase delinquent on for to more extends GAAP as loans
is loans expected performing for typically XX rather income taxable years than the So XX over life.
performing reserve which to on Second, prepayments typically prepayment non-performing loans income basis in not QX, CECL-related the higher is saw by tax have affected recapture. loans. a increase we Taxable on relative
we larger borrowers purchase than and from discount payments, payments when actually contractual creates of cash taxable capture income. receive So it because
of as We recorded investments of by in affiliates the price partly in of a result second market common mark-to-market the the on our owned a decline our manager quarter. flow-through to loss in shares the
portion to ownership a changes those value Our are the our interest. fee and one-time in shares based flow QX on XX% management of in items a significant few in unusual manager us There through numbers. market their and of shares receives
our joint XXXX-B balance and AAA collect then The and charge loans joint with underlying and This were joint remaining joint life the that that In in sheet cash of beneficial in GAAP ventures a a on securitization loans. we XX% venture securitization. venture the but July, XXXX-C securities securitizations. into DBRS-rated back XXXX-C owned called eighth were and over venture as loans unrated called eight an held resulted we and under as consolidated Since not securitizations we securitizations not interest, June GAAP, XXXX-B interests. was they underlying which legally re-securitizing XX the
Because structure, equal the to unrated $X.X July AAA-rated securities XXXX to June of the QX, the we new is took values of million mark-to-market values we to between re-securitizations and but share. same carrying this the $X.XX impairment an structure the or lower. and XXXX securities in in per market the own In percentage, difference continue
trusts loans were percentages joint our securitizations two QX JV that our from our partners same joint owning eight re-securitizations each. the the XXXX the venture new This is re-securitization. same JV eight same and trusts as to from treatment XXXX in transferred The their called JV venture with are the
and whether through non-cash underlying flow to life refinancing over is rather sales because ourselves the the reduce for the impact. in and income tax We the loans effectively because is, form from mark-to-market from securities of ourselves and in assets sold This sale triggers only in would or which than we sale on sold change. go loss to taxable and GAAP recaptured cash securities. this not effectively we loss own partner our also ourselves re-securitizations. book under is value, assets, therefore, no of difference the assets There a JV the GAAP. so mark-to-market fully tax, GAAP non-cash the a the a It's the expected doesn't a of there's It as our of form loan sale under of expected we partner amount no exchange expect ourselves, for to two
an primarily $XX.XX Book dividends decreased that is value was balance our paid At in mark-to-market in average QX cash with million second JV in loss cash debt had for Book value table of book of approximately daily $XX.X and XX. adjustment offset we details GAAP June had an Page the We equivalent change approximately And had investment million $XX.X cash on at a and our of XX positive we the value. quarter. million. by securities. $XX.X approximately from June cash. There in collections XX,
small also a more of of loans months securities Page months XX. on which loan at to least compared XX.X% made RPLs since XX, increased UPB from we’ll ago a have portfolio detail from XX% Approximately our significant NPLs unencumbered unencumbered in amount the and and time and securitizations This at joint fraction by June of significantly XX% we of more XXXX. ventures last assets, At mortgage unencumbered buying discuss middle XX despite the three of their XX payments acquisition. and XX ago, our
income Reperformance interest duration quarter. increases life extension reduces but in flows, and cash the yield current loan the of
As taxable more materially reperform rather or this as default, purchased income prepay delinquent than well. lowers loans
on this Financial XX, Ellington August with described you potential securities depending which or As for Great seen potential as shareholders in well of agreement a Ajax into prior certain all as we agreement June share the to adjustments any stock our The Ajax on to probably upon entered of per as was merger receive the XXXX. stock Ellington of Great Inc., distribution X.XXXX S-X read Financial X, closing. shares repurchases filed in cash subject would a merger
and represented at consecutive If We purchase XX. RPLs that portfolio loan of we XX%. X, at represent and to specifications average. a positive LTV on months loans. We move buy XX% suggest certain less had primarily RPLs made sales migration, related underlying they seven to property analytics June NPLs ago, well-seasoned level XX purchased approximately loan lower our that our typically Page property payment prepayment and payments lead
loans, expected performance our portfolio. we than in continue residential stronger to see For
at not in increase increase increase our slowing, have credit seen tightening and interest and economic the default point, potential an in material delinquency although portfolio. we some thus we’d However, expect given the delinquency in an far rates in for
loan residential set a have expect aggressive as better develop. a result, opportunity As been to we in we hesitant be too will acquisitions
to auto financial Historically, engaged they payments. One pay mortgage regular borrowers and and maintain of absolute more we seen attached increase is times to and therefore credit HPA loans typically home that pay cards of determined resulting first have mortgages equity lines stress. their in before credit made thing properties dollars significant material borrowers the to we have and equity, financially their in and seen more
However, increased result cards dollars for not for of the seasoned of but seeing and auto first their increases mortgages. loans, as are delinquency a equity significant loans credit for we in absolute now
estate be opportunities and and and real well, we in believe get commercial see loans We as significant into as to fared Commercial there. later year in opportunities sub-performing loans are real have estate we not beginning non-performing many thereafter. there will this calendar markets
We it portfolio CRE mid-size a less preview the and of mid-size frequently bank have in liquidity They performance. talked on last and months, about portfolios seen of percentages higher sub this a is loan loan having few have with their exposure. effect
loans for and from expect set sale We institutions are beginning will that to grow. these see CRE opportunity
will as well. We also this consolidation expect that stimulate bank
non-agency sub commercial up partners larger banks MSRs in venture as large from From We dollars have banks, us $X increments UPB sale are and significant put billion well and being as seeing we originators. of the find opportunities. MSR agency like same joint of for that would offerings to
a look banks months many value are it these marketing thing significant be is will note, predictable are MSRs in current as We actually sales of MSR trading for however, opportunity MSR set not economic going the these XX.X% interest servicer the to as marked and having they to settle. below as of think at to to banks. there two As owning beneficial. be are take One and liquidity, smaller offerings bids is also these MSR Gregory many four
million in of own loans. with XX% we structures have of XX.X% quarter, put UPB. $XX.X and the of MSR investors. place at LTV purchased We second value venture RPLs several We institutional lower property In joint
price value and RPL UPB. XX% is overall XX% about purchase current approximately Our of property of
of important a extent and is equity and the loans to environment. target dollars always levels potential lower there been RPLs absolute have We more focused for with on even with LTVs in locations. of This threshold geographic certain that NPLs recessionary is
of our have shorter can and we’ve purchases duration. significantly QX QX XXXX, versus RPLs. increased Since average on NPL NPLs
balance XX% value. and sheet property For arrearage total NPLs XX% our UPB, purchase the of on of of including prices, are owing balance, overall XX%
result of loan-to-value of seen reperformance we and a NPL absolute on equity have portfolio, for low NPLs. significant As average our on the dollars reinstatement and higher
credit at and both declines duration XX% property materially. to hedge mentioned earlier, dollars recession to I housing corresponding low has NPLs, equity RPLs increases natural in As increases seasoned discounts for a values quite purchasing price as significant and that absolute and loans and of shortened LTV yields provides resulting delinquencies,
June XX%, loans segment approximately XXXX. XX% our so nearly at our California to and At has XX% in were been loan California in XX, approximately far our markets. of XXXX, continues of of largest prepayments XXXX, target however, represent portfolio in the all
and loans California in Diego are counties. San Los Our Angeles, Orange mortgage primarily
of portfolio Florida Broward are Miami-Dade, represents approximately Beach and XX% and XX% approximately our Palm counties that. of
homes both in We in continue buyers. for demand our to our markets, rental see target and ranges potential price our homeowners from
with this at rather now consecutive Much is dollars of quarter payments. seven appreciation. that versus absolute we last XX performance XX% June approximately XX approximately at a NPLs our is XX the XXXX have home at to in than of three third before significant the basis working of the ago. made least low of payments made due purchased monthly increase payments Over delinquent ago. only XX% more of since Approximately made XX% at on XX of and Funding The our LTV mentioned primarily of portfolio As to a XX, at XX% the RPLs. personal notable end Gregory last compared loan loan least months of XX.X% least XX% portfolio and XXXX, given to likely year borrowers
HPA markets market for dollars. are each significantly analytics that our by data predict in As forward determined target
typically payments have the reached point. when Seven our seen been seven XX to consecutive they time. consecutive loans than the purchase we that Historically, get of payments statistical consecutive more XX% turning has payments
We have and acquisitions of RPL under NPL a small number contract.
expand. earlier set As I to mentioned we opportunity the for call, are on the waiting
investment some opportunity an starting sector in and risk banking brewing result loans. particularly to a CRE are issues as We see risk recession set of
holders dividend We XX. and August share record August of XX $X.XX be a paid on to of declared cash per
on while The in joint Mortgage sheet into XXXX we income As structures. of I described securitization securitization Loan and venture XXXX-B joint earlier and these appear in QX closed on transactions Ajax re-securitized venture economics structures new XXXX-C of these QX July two show eight the Trust the for statement call, GAAP balance XXXX. in for XXXX. up
our yields significant cash beneficial primarily loan a little joint Average ventures to on due equity average and interest in May. in flow April loan yields and increased
is and loans For servicing fees gross of remember debt servicing interest, on of beneficial security fees. yield yield that is to net
sale expectations of in beneficial April our HPA significant underlying discount, since accelerated are extend GAAP demographics of interest and loans loans, and XXXX. of and led buy reperformance minimum prepayment delinquent reduce markets in but relative The in balance interest the properties ventures with The reperformance borrowers increase to duration how loans delinquent equity under target from and sheet securities with absolute excess yield. May. types loans our delinquent material have of expectations. is both and Debt our Since the in excess of and to amounts on in average, of of and purchased has materially we underlying certain been presented equity in increased our increased loans on borrow loans dollars the and sales steady, we home on from geography joint by dollar both can absolute for loans
with ended for level companies times. X.X debt Leverage continues in be low, to at We especially asset sector. our QX
issuance rates for little of since Our quarter, second notes of XXXX repurchase in average the in debt agreement rise was our unsecured base cost resulting primarily higher the asset-based debt securitized debt total and the of August rate from XX total SOFR June debt debt percentage a debt. of loan down Fixed our they corporate were prepayment. and approximately at higher of total pays a fixed rate as XX% are from outstanding
agreement June $XXX in debt million was XX non-mark-to-market, expected our on was joint at non-recourse loan sub mortgage senior approximately Class financing primarily two of Our repurchase related with bonds was million and total years. financing million, $XXX $XXX remaining lives AX ventures
significant We have unencumbered also assets.
relative amount rate rate our debt. floating the to declining to debt expect continue We of fixed
or regarding With know that, happy has quarter please to questions anybody us and second answer. the let if any other,
