Dean Mitchell: Yes. Thanks for the question. So I think thinking about dividends in terms of tools that we have at our disposal may be the most appropriate place to start. So we’ve obviously initiated the quarterly dividend. Our expectation is to continue prospectively. We also initiated the share repurchase program. That gives us a tool that’s very opportunistic both opportunistic based on valuation as well as opportunistic through time to return capital to shareholders. And then we’ll continue to evaluate special dividends at the end of years based on a combination of business performance as well as the prevailing macroeconomic environment. So I think the cadence we have is probably the cadence you’ll see subject to those dynamics playing out.
Bose George: Okay. Great. Thanks. And then the new notices in the FEMA disaster areas. Can you remind us how that would be reserving for those works?
Dean Mitchell: Sure. So Bose is your question in the context of PMIERs, or is your context in the — question in the context of reserves?
Bose George: In the context of reserves actually, yes.
Dean Mitchell: Yes. So we apply our best estimate of ultimate claim on FEMA-designated delinquencies in the same manner same approach that we do with any other delinquency. We do rely on our storm-related experience. Think about Harvey, Irma, Superstorm Sandy those types of storm-related activity and how delinquencies have performed historically based on our experience. Our experience suggests that those will cure at elevated rates. And so our claim rates reflect that.
Bose George: Okay. Great. Thanks.
Operator: Thank you. One moment for our next question. And that will come from the line of Eric Hagen with BTIG. Your line is open.
Eric Hagen: Hi. Thanks. Good morning. Just one on new delinquencies, which are so low to begin with. But would you say that there’s any trends that you’re spotting within those loans and that bucket of delinquencies? Like is it unemployment? Is it some homeowners that could be underwater in some cases? And how do you see that maybe developing from here?
Dean Mitchell: Yes, Eric. Thanks for the question. I think consistent with our prepared remarks credit performance remains strong. There’s a lot of factors I think that support good credit performance everything from the quality to underwrite the strong credit quality of our insured loans and then even the macroeconomic landscape that despite the risk that Rohit referenced remains pretty balanced in its current form with strong employment cumulative home price appreciation and then meaningful household savings all of that kind of goes into a mosaic that has been supportive of strong credit performance. I do think the one thing that we have our eye on is we do have large new books that are aging through their normal loss development pattern and that could increase new delinquencies heading into 2023.
But at the end of the day I think 2023 credit performance is going to largely be driven by the macroeconomic environment. So we have a keen eye towards that. And maybe more specifically, Eric to your question, we believe that future credit performance is going to be more highly correlated with unemployment during this part of the cycle and employment has remained strong to date. So what we’re going to look at is the macro, look at unemployment and if recessionary pressures emerge that have more significantly affect employment, we’d expect some deterioration in the credit. That would be ultimately impacted. How those — if delinquencies increase, as a result of those recessionary pressures, then we’d see how they ultimately progress the claim being impacted by cumulative home price appreciation and other loss mitigation activities that we employ during times of financial challenges.
