good Jay and Okay. morning, Thanks, everyone.
to So with Slide and start let’s turn servicing the portfolio. I’ll X,
We’re $XXX X.X million told which UPB customers. the represents mortgages the quarter of billion, ended at
As more second bulk intentionally year-over-year, in this in quarter. we resulted slowed in the is As growth mentioned, you portfolio quarter pace can repurchase, allocate see, stock up Jay to which fewer the acquisitions but XX% the of cash order to
$X plan. of our trillion frankly, of terms in target, Now, ahead running UPB well we’re
deals, And bulk we I’m arm, minute. a very remain your especially which agreement. just point which the But an patient, with we in whom we’re into our relationship, Subservicing know, little very we would you UPB. acquired we this I’d more owned And UPB close the on about broad we’re we for have which uncertainty investor servicing opportunity default opportunistic, billion the returns. a But first, more in billion So more to provide have in small of a recently surrounding entered talk given believe draw to in to like also be more now number attractive in a whom transaction with right and focused Jay included the at and $XX going market. sold inclined to mentioned to Recapture attention $XX economy. Subservicing RightPath RightPath, now, a active a
of to us with to other additional and pushed pursue opportunities. Now liquidity mix that transaction XX% our back down owned subservice provided to about
scale this because cash. that pointing when to operational our asset-light makes a I’m and more flexibility great we strategy Now, much employing sense, customer the which with allows have it’s of to out, a without base us model, our as which to our growing is example keep pivot business
let’s to Now Slide turn X.
which let’s quickly. starting Now income, Servicing to talk very ramp is about
which pre-tax which with was During million and Servicing prior $X our expectations, line right million the $XX in quarter, income, quarter. generated was the up from with in
or cash a of we’re the again, more, to quarter, head fourth which As most interest we year on from and to In million should annual million as expect forward for And see third really basis. with earnings quarter, XXXX. the And very double to least the us Servicing And curve it’s at require roughly parts CPRs, you Since flow an set amortization optimization. higher equate expect income rates. per lower starting in robust we somewhere of should function the into up the should double of higher to benefits simply quarter. just and benefits the around second projection the reaching operating $XXX much imagination. process $XXX in lower it’s alone doesn’t earnings going this
our when to So which it under is now. during you the of obviously earnings periods is slide flow market provides up, and balanced as solid cash Originations us this with shows business sum pressure model, this the importance
as competitive peers differentiator Since just concentrated of Now, state huge in Mr. for obvious, to a more know, Originations. our Cooper. the is are you this most
shift of from heart the something focus to we which our which strategic control operational expense, interest right lies is thinking. rates our in Now, at let’s can
think perspective. see I upper good very there’s a some If you’ll X, chart turn you’ll story left The historical Slide that you here. to gives
since in you see if at you merger we’ve with completed WMIH. recall, was the reduction a the XXXX, Looking when XX% operational points we expenses portfolio, of basis driven which can
our below can as the the Now we’ve for peer And will you recently widened it which since on you, using see, average some from the lower advantage is And to in significant perspective, with in the to of cost per serve our surprise XX%. driver and can extra cost that of completed those has transaction our shows the and MBA compare is chart increase been able lower chart handle which you costs best-in-class. lower functionality our Sagent, And right cloud scalability servicing the technology, FTE loans the main state-of-the-art the we’re given the you XX% we’ve just left. Survey, to Peer systems. native
Now turning quarters. right, to zero last the on upper the let’s in five
growth which increase in Now there’s we quarter-to-quarter second part and been some by additional first in headcount added with quarter, an the quarter, obviously favorable way as the some in the variability accruals expenses the reflected XX% what in a leverage. year-over-year growth positive acquisition. is of UPB, in good of I which pretty versus XX% you the operating in you’re all is think expenses But example agree, seeing RightPath total,
want don’t have to where operating same recorded, that expenses, set we to expect long-term significantly strategic I pace Now, today. a the that is are you but guide than lower for target we
So about going we’re let’s to talk there. how get
our of of significant work drive efficiencies. a series planning to we’ve part further identified As operational strategic process, streams
like include And contrary, the more of processes reducing of the at Now and for discipline improving trend these a goal produce our streamlining customer and metrics driving our we’re initiatives upward containment escrow. coming much I and other time, Six more aside, these for rolling of none you as personalized, gains, functionality, customer most customers. higher over efficiency see as lower Also, both of experience. should an not our payments self-serve and To out friction-free engagement well. expenses, stress only the and key online in is And an IVR experience with digital areas but this content, drive our rework. will improving expense satisfaction digital errors Sigma that further
United up in And going going with sum to deepen central to cost progress slide, we’re higher we’re a to is we more the residential competitive servicer cement going returns, dominant element mortgage strategy. our make as this leadership position to moat. So drive our we’re our And the of States. costs, as
I you the investors. subservicing very relationships as or together know, high-touch an track We acquired existing a which loans all more information with severely RightPath servicer specialty on Now, and second Servicing, large Slide sophisticated in XX-year on leadership with some a a is team several think focus you quarter, gives X delinquent with this and excellent record. business impressive
to improving tools capabilities customer deep we’re reduce with learning including and this engagement, the machine Now, of very curates very and not our conversion own notwithstanding experience, modification, platform techniques, very while some done and customer interesting drive high very they’ve satisfaction. impressed with work recidivism, optimize
standalone current We’re currently existing as platform going them have integrating then part capabilities, may capability market RightPath well to manage out not and a Mr. option as high-touch subservicing of to the we’re to for as whose onto servicers Cooper’s our loans. take investors
less very think to credit the of strong for you if expect, as expand our will Now, and even severe, conditions, we RightPath. we do there’s opportunity market there capacity experience But recessionary many demand if be an cycle is share.
which XX turn million, quarter Now, expectations. results our line billion. $X.X let’s for to second $XX income Slide funded and of discuss the basically was Pre-tax segment, volume produced Originations with in on
capacity gotten think the Obviously, of but I current to was correspondent in in shift notice XXXX strictly DTC profits was conditions. that, down line basis to points, the well XXXX. you’ll ratio is pretty our XXX quarter. mix news in Now, the But we due to is generated that market this as the much below increased we the and with good margin
rates, say, minus swings real conditions, foreseeable see deterioration for economic as new as so, $XX further pre-tax the or don’t And income. rate while our plus be in this we in should million at future run let’s of long
innovation Now, is that’s investment evolve. know And Originations in demand one key the that continuously you difficult all of needed capacity especially the big it and running sustain adjusting pace swings to make the an of to in challenges platform.
talk how platform. let’s So to Slide let’s improving XX our about turn and DTC continuously we’re
calls. heard As drive are a lot Project which our about and projects cost-to-originate, us on efficiencies talk primary Flash, focus you’d expect, now on past reduce right like you’ve that
fulfillment-related And and middle tasks, As also be but allocate office originations. not only manually, of to digitizing used cost call which workflow assistance performed includes a low optimize to we the using specialized automating it to Flash involves reminder, autonomous various what tasks to resources.
XX% sale you very a is gain XX% year in margins the experience of critically And And by from the steadily the As help on are through see think fundings from percentage you us very team difficult loans total XX% can ago metrics. a the benefit a will se we’ve of has is XX% sustain Flash which our Flash margins, reduction a that from already year gain increased lifting more part satisfaction because during channel. EBT as this of only to meaningful which DTC on our customers, our on a total important, efficiency expects not driven a per faster and left, creating if that about the end, cycle. processed for efficiency it for chart that’s and this consistent important comes we’re Flash, is cost-to-originate today, the
Flash processes. vastly our legacy more Finally, is scalable than
So Originations and to ramp in our volumes, that whenever improves, an may market excellent when you the be, be should we’ll expect that margins. up position maximize
processes sophisticated in addition application These been the are online customer-facing like several improving times. Flash, some members. team our chat response driving and improving our and goal our more all rolling of functionalities, text a which and experience optimize to technology, working In we’ve of to improvements much customers capabilities digital out with better include basic for
Now, most these you’ll investments the if some where you’re paying are side of off, turn the page, if you wondering KPIs. right can important our of see to
mentioned, Jay improving established strategic XX% a and recapture, when we we refi year ago, in hit kept which we First, As we July, our hit target XX%.
retail transaction now with a borrowers through have us relationship, have already best-in-class. gone we is which whom is with recapture customers XX%, For meaning who a
industry. better think good than have not reason we in So as anyone as to this we’re a very if good
when ago Now wasn’t about it something I’d a which a on focus, X%. started purchase year only it’s But like requires the very process. the sales we because rate different was recapture, to talk historically about about working
we’re now very to progress. running second can chart slow, making And from about on pleased but the you be steady X.X%. the right, see As we’re
of a our branch networks importantly to for distributed about isn’t DTC But equates much about it’s higher meaningful a material step, a first report many as us. funded in this volumes for level Now, is quarter, peers and of which centralized numbers. per million brag with platform, $XXX
our to out closest accounting such approaches. mention to platform provides variety and is customer our performance new us to which on different We’re of surprise history from And here equity as get DTC given long and acquisition, $XXX,XXX update second special channels, a XX%. of the is organic It to developed near-term as be consumer finally partnerships. $XX,XXX time-to-time during adapted equity can our excellent, But average white the and that debt, you out may the customers we technology cash DTC new with volumes, we and here. in shouldn’t a point I’d And going we’ve as available customers. to our know important products a be of give of which that well optionality for purchase this in cash more target on amount it as label a our for XX% you that sense have huge interest should you our quarter, product, opportunity the had of in
if an share I’ll update on XX, Xome. Now, Slide turn you’ll to
second quarter, roughly was Xome line During guidance. the right with breakeven, which our was in
in Another new year share a XX% inventories, by reached which positive we see and business continue track on the to end. the for was growth our high market
experienced guidance, we’ve recent calls. points, which Now, regulatory cautious as about to some variability inflows with relative talked servicers continue is to something we’re stance take still in a made having very these
pause borrowers have led assistance, in additional for you activity. As mandated heard seeking the may to government which overall a slowdown XX-day an foreclosure during April,
the July, they with X level XX-day running our June. However, period inflows now at in nearly are were times in expired, having that
delinquent to will out the forbearance XXX,XXX continue many that According with had data, expire. pandemic. delinquent, backlog FHA on plans XX-days customers were more the the monitor or borrowers latest still soon who to coming We of there of
during in rate is in than we’d expect end, are faster As a process we half to there year nothing to less expect to far, recession. in which what get we’d of a data we’d FHA see foreclosures only of to status. so closer migration expect foreclosure say normalized a put much about XX,XXX what market this To perspective,
going Now with financials. it over I’ll through you who’s to turn take to that, the Jamie,
