Soham Bhonsle: Got it. Okay. Thank you for the color. And then on the embedded equity disclosure this quarter, super helpful. I mean it’s remarkable that 70% of the portfolio still has 20% or more. And even your DQs are sitting on 80% or more at 20%. So I mean, assuming that home prices just remain stable, right, and they don’t go up or down and in the scenario where sort of the borrower defaults today. What do you actually think is a realistic scenario for what you could be on the hope for because you still have reinsurance that is sitting on the back end here. And so I think it will just be helpful if you could sort of characterize for investors the range of outcomes in a potential default scenario, assuming that embedded equity just remains stable going forward?
Rohit Gupta: Yes, Soham, very good question. So I would say from an embedded equity perspective, that is a tailwind for our portfolio. I think a good expression of what you see on Page 13, the numbers you just mentioned, are driven by some pretty significant increases in 2020 and 2021. So I do want to acknowledge that because that is not normal in our market. I think the home price appreciation numbers you’re seeing right now, including the number that just came out a few days ago, are much more in the range of what we have seen historically. So you will see that normalize over a period of time. That being said, home price appreciation is a tailwind for us, both on frequency and severity when it comes to losses. Frequency because consumers before they actually go into delinquency, if they’re able to sell their home because they have enough equity built up that frequency never happens.
And then, second thing, even if they go delinquent and they can sell their home using a presale instead of getting foreclosed on, that reduces frequency, and in some cases, severity. So I think those are the mitigants in our market. It’s difficult to put that in quantitative terms because consumers who stay delinquent and finally get to claim are typically the consumers where that home price appreciation and embedded equity was not sufficient to completely offset the claim. So by the time consumers get to claim, those claims do come closer to 100% severity, but along the journey, we see improved cure rates because of the factors you outlined. And if you look at the cure rate performance of our book over the last 8 quarters or so, you see that performance coming through driven by those factors.
Soham Bhonsle: Got it. And if I could just squeeze one more. I mean NIW results are still coming in for the whole sector. But it does look like your NIW declined a little bit more than peers this quarter. So I’m just wondering, what were you seeing in the market out there, right? Are you taking a different view on certain cohorts? Anything else that’s notable would be helpful.
Rohit Gupta: Soham, thank you for the question. Are you referring to year-over-year decline or quarter-over-quarter?
Soham Bhonsle: Ye, year-over-year.
Rohit Gupta: Soham when you think about our market participation, first thing, as you said, we don’t have final market share numbers. So it’s still tough to tell where we landed in the overall market, we’ll know on Friday. Second thing, I would just emphasize is when we think about our NIW, we like the profile of the $10.5 billion we wrote. We like the profile from a pricing and mix perspective. I made the point in my prepared remarks that we saw pricing in the market being constructive, and we took several pricing actions in the market to make sure that from a risk selection perspective and return perspective, we were actually driving the right book. So that all being said, I would say, from a year-over-year perspective, our market share in first quarter 2023 was actually slightly elevated, and that could be driven by certain other players pulling back from the market based on their risk appetite.
Our risk appetite has been generally very stable. But right now, we believe that our market participation is very much in line with our expectations. We think of our share and that’s 16% to 18% range and we believe that’s where we are landing. And if you look at our participation in fourth quarter ’23 and first quarter ’24, you’ll see those numbers generally being stable. We might have been flat. We might have lost a little bit, but we don’t think that, that’s an issue with our strategy. And as a reminder, we don’t focus on share as a metric, we focus on kind of our right strategy of driving the right price for the right risk and managing our layered risk concentration and we believe we are doing the right job on that front.
Operator: I would now like to turn the conference back to Rohit Gupta for any further remarks.
Rohit Gupta: Thank you, Michelle. We appreciate everybody’s interest in Enact, and I look forward to seeing you in New York at the BTIG Housing Ecosystem Conference next week. Thank you.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
