John Greene: Sure. So as we sit here today, we feel comfortable with what we shared in terms of low double digit expense growth this year. We’ve taken a preliminary look at next year. We’ll share — we’ll share that at appropriate time after — after we kind of review and get our plan approved by our Board. But I’m feeling like it’s very, very achievable. And that’s why we — we enunciated that target or that goal. But I would say this. As we see opportunities to grow profitably and not — no contradiction to Roger’s point earlier about the demand for our products, but we’ll continue to take a look and invest for the medium term and longer term. And we’re going to do that on the growth side. We’re focused right now on the compliance side and we’ll dial each of the expense levers in order to ensure we achieve results that our shareholders want, that our Board expects and that the management team expects.
Kevin Barker: Are there any particular areas where you see the most opportunity to create efficiencies, whether it’s marketing or headcount or anything out there that you see that can allow you to continue to hit your goals?
John Greene: Yeah. So we’re investing in advanced analytics that we’re driving efficiencies in our rewards cost. We continue to look at third-party spend and have achieved great results in terms of year-over-year reduction in unit cost. The situation this year is that we’ve invested heavily in resources, people. So we’re up — we’re about up about 3,000 people this year. So when you bring on additional people, both in collections and customer service as well as salary personnel, there’s other costs that go along with it. So as we manage through this situation, I continue to believe there will be opportunities to drive efficiencies by combining like activities, taking a look at how resources are deployed to organizational structures and over time optimizing that.
But right now, with the situation we’re in, we’ve decided that the first priority is get the right resources in to focus on the issues we’ve talked about. And then we’re going to be able to drive efficiencies in the future.
Kevin Barker: Okay. Thank you for taking my questions.
Operator: Thank you. We’ll take our next question from Mihir Bhatia with Bank of America.
Mihir Bhatia: Hi, good morning. Thank you for taking my question. Wanted to start maybe just on the business and the application quality of new applicants that you’re seeing. I think you mentioned in response to John’s question tightening underwriting. I guess, firstly, was that a new action you took in the second quarter? And then just related to that tightening of underwriting and application quality, I was wondering just if you — I know you’ve talked in the past about monitoring — actively monitoring the health of the consumer and the portfolio. Was there — is there something you’re seeing that is flashing red or caution that’s making you tighter underwriting further here or just trying to understand who is the demand environment who is applying for a new loan currently, what’s driving some of the underwriting changes?
Roger Hochschild: Yeah. Good question. So the tightening was not in the second quarter and was not in response to something we’re seeing. And actually in terms of applicant quality, whether it’s for home equity, personal loans, student loan or in card, where we’re seeing very stable characteristics in terms of average FICO, in terms of the custom scores we use. So it was a series of changes we made, I would say, in prior quarters. But a lot of stability in terms of the quality of applicant over the course of this quarter.
