good Thanks morning everyone. Jay, and
with level X. on profitability a high of Let’s Slide review start
reported a loss mentioned, per share, we of largely mark Jay million. a As net $X.XX driven by market of $XXX to
an As in declining know, and we well which our we growth you rates excess through use financings sub-servicing recapture partially to interest and origination have spread of our manage exposure book. as as the capabilities,
to continue exposure. don’t those While grow, entire offsets cover our they
level of this at in some that quarter, recover the at this we’d of the reversed decline, and expect have second far they mark if of to rates So part mortgage QX. remain end
how which profitability the will on see right, quarter, resulted purchase in impacted X.X% couple remaining value, This in period adjustments a at merger, We Under earnings. goodwill our first acquisition get explain there’s effect X the adjustment related for portfolio table earnings the initial and rules, as the you’ll million a XX-month to made book refine to well in cumulative as $X operating turn you reverse we’re tangible which Day let we estimating mentioned was you’ll under to accounting to of the interest. quarter. adjustment see in me ROTCE, so under there. we valuation accounting if the XX-K price a is review. One our WMIH Now
related other we’ve and The acquisition the associated adjustment Assurant, and which by based $XX million. contingent an that liability, of current the of on an included amount calculations liability reduced to earn-out
we and items, backing based and mark $XX the carrying we’re when to original accounting operating in our Pacific related merger tow is relates amortization. in MSR acquisitions, last results out indicative charges on policy more we’re the a $XX adjustment between to these million The and to Seterus intangible adjustment market, million then amortization addition out so difference [indiscernible] the leaving Union which to of and makes profitability. In our costs, underlying back which the integration value back adds third cost,
place through the was returns million $XX if ROTCE operating a path net these was which is over to you’d higher items, income from basis, time. an on look which you that X.X%, see and project for starting Now
income strong organized by in and included redundancies. to operating appendix we’ve to continued at presentation economics to the integrations simple should the that I’ll reduce be mention deck X, additional segment complete you Xome this another segment. the also Slide help quarter steady certain improve the servicing. is the of rebound pressured story from earnings the of in understand of as the Assurant but summary, and we systems pre-tax business this clear: for transition and level be to Turning results In a results strong that should I’ll very level. out information and first by very origination comment this
by the $XXX about Union Pacific X, billion, the and acquisitions. quarter the ended is talk Now let’s Slide servicing which driven on portfolio which at Seterus
servicing mentioned, and that the new boarding of in to a job XX involved to my customers my did all days, teammates I Jay want in As team accomplishment. congratulations fantastic XXX,XXX add
MSR quarter, XX% the from You’ll next in a quarter reflecting you’ll any the last see and MSR later We’ll to from that on contract. in note asset reflected but the in initially quarter’s sub-servicing acquired that we jumped boarded sub-servicing as ratios. take ratio second that’s strategy; Seterus XX% rather, the change not
levels client sell some We and over relationships, our those of our to expect as sub-servicing saw buy sales. but quarter we next will volumes in as clients the sub-servicing and time existing slightly also lower planned result see loans, growth change
$X.X comment during rate portfolio Total the run-off quarter. for Let on replenishment me MSR the owned the was billion.
$X.X first of XX%, to significantly if have rate of rate billion were quarter the production, originations the replenishment year and would is from up replenishment in full been equivalent included quarter. which quarter, Pacific the During XX% of ago XX%, you a the Union’s
portfolio and bulk us at a flow. allows know, has cost improvements in more acquisitions, As ratio the sustain and you MSR replenishment a for positive to implications which attractive cash obviously higher profitability
out portfolio UPB as the laid growth we’ve and as at we’ve the be mentioned profitability. $XXX for high beyond, from digit focus fall, be exceeded targets growth the the mid-single XXXX mark sustained for In with Now previously, remainder of we for a will we’re optimizing for you our water last here and billion, may XXXX this planning rate.
margin, which that basis the full Titan servicing the expenses, left basis the was Titan to it and we’ve historically and turn on points X.X with in discussed quarter let’s and Now in. excluding mark X.X expenses basis points
in during We’re the from with you we trust. the you however, pleased with last this collapse margin, we a which benefit $XX earned is line shared I’d million the with very call for of securitization out fall; quarter the guidance
see time margin We to the claim a in related time, various largely we expect rule settlements, from servicing transactions quarter. from you large first for levels and than general to more benefiting modest what but recoveries plan as the to
here, the first higher quarter, were to them therefore expect we increase CPRs you while forward. should from low going in expect amortization Additionally, and
average marks Seterus we’re the of Pacific margin that due to and anticipating the points. excluding quarter, somewhere rates. year, portfolios, entirely result, around higher slightly but had delinquency out remainder over and X higher the Union were of to in servicing a As Titan basis was which boarding spending, the Delinquencies the the
would continued these Excluding delinquencies to have slightly. our acquisitions, decline
to insight million the As at have of with stable now their low nearly very the and health delinquencies largest for third data levels. servicer our points consumer, into current good the X remaining customers, we
Now and originations about let’s XX. switch on gears talk Slide
a the a a part As in efficient in origination is you lower plays key cost new flow origination model at business MSRs role of than improve improve market transactions returns. company’s our the buying profitability, and originate free Strong, at to our and cash segment MSRs know, key prices. bulk strategy we capabilities because
acquisition. at $XX a above two we targets million, quarter to in we which is seeing EBT delivering point you’re the with shared volume of This was a with Pacific margin the you benefit Union, last increase and case four-fold worth fall and of months’ or the announced when in origination
As Jay mentioned, the integration well. is extremely going
lock the volume the Excluding Pacific which gain quarter, volumes as strong as in reflecting margins. our reflecting slightly, markets to on in Union, normal The conditions, rebounded to XX and increase sale last impact origination of lagging rate were well points seasonality. capital fall’s margin down more basis shock favorable improved led
the look in second good. and to margins continue So quarter, volumes far
right-sizing, consolidation, Slide Turning to cost mentioned, the million impact lot that the team. see with XX, good to $X AMS conversions, but reflect won’t which a facilities review integration, quarter includes systems additions associated to as out Jay momentum, on of leadership Xome a results can you continue strategic I’d planning operational and in call a also that the the of there’s recur.
a with little As on current about very breakeven result if year-end, before not remaining and conversion Assurant feeling schedules, then. systems reaching a we’re good by
AMS, income low seasonality reflecting flat, pre-tax delinquencies. Xome’s roughly Excluding the and was impact very from
higher capital that time against or as to strong this aware plan higher environments investor and While Xome’s overall lot cash levels unit the income originations. delinquency to so In and a acts to do have that drive way integral is as profitability potential Xome remaining. we flow part well has natural same that happen, to disciplined requiring our over a regard, contribute returns, company’s but execution small hedge of the right without servicing of now, a an in to the we’re was make of
as for by to I’ll turn nets wrap of proxy amortization as cash operating as perspective, you’ll debt cost the up it From is flow, new flow. items a out cash and depreciation, out addressing several level XX, rough originating defined non-cash leverage fair and a marks, value MSRs. reverses such and cash our my high covenants comments its If adjusted in Slide EBITDA
the will the some to to improved long we you in the the level debt a they adjusted flexibility with is in believe of can should to first that led is the to and financial see quarter operated occur. EBITDA and improve EBITDA a term in first of thanks origination the us profitability, historically, chart, increased five dry and EBITDA to or ratio profitability this ratio. basis, strongly debt On times As which company dislocations, take less, advantage leave where market powder a reduction
see ratio and are further also conditions when team us favorable, to market uses us to wrap I’ll the may up the and against grows, to time seeing EBITDA of cash. the us a cash you With over that, to and building reducing the for expect to may but debt which as it period management de-leveraging would turn of debt up. We other decline optionality feel EBITDA time back Ken be board liquidity offer weigh things you
