Mark Hughes: Yes. And then purchase ARPO, this wasn’t much movement but last quarter it was up 4%. This quarter up 2%. Any detail on that? Was that just a geographic mix shift? What do you see there?
Mark Seaton: It’s kind of what we think. I mean there’s two things to drive it. One is housing prices. Housing prices are still rising. I think given the fact that where housing prices are – the increase in housing prices we would expect kind of a 2% fee per file. The other thing that can drive it, depending on the quarter is just the mix. I mean, if we get a lot more business in California, which has a higher fee profile, that could drive things. But really, it’s more a function of where housing prices are.
Mark Hughes: Thank you.
Ken DeGiorgio: Thanks a lot, Mark.
Operator: And our next question comes from the line of John Campbell with Stephens. Please proceed with your question.
John Campbell: Hey, guys. Good morning. Just back to the transition of the HomePoint loans. It sounds like you’re expecting some of that off-boarding to take place in 2Q. I guess, first, will that be the bulk of it? And then, secondly, can you maybe talk to the off-boarding fees, maybe the size and timing of those?
Ken DeGiorgio: Yeah. Thanks, John. So, today, we’ve got roughly about $380 million in deposits, give or take. I mean, it changes by the day. And we think $50 million we’ll leave around May 1st, and $330 million we’ll leave on July 1st. And at that point, we won’t have any more of the HomePoint loans. And as I mentioned earlier, when we lose those deposits at our bank, we’ll lose $20 million on an annualized basis of investment income because we’re really just earning Fed funds. And we’re also paying out Fed funds. So we’ll lose about $20 million of annualized expense as well.
John Campbell: Okay. And then are there fees associated with that off-boarding that are paid to you?
Ken DeGiorgio: There are the boarding fees. I would say they’re pretty de minimis, though. I mean, less than a million dollars. So there are the boarding fees, but it won’t be material.
John Campbell: Okay. That’s helpful. And then from a CapEx standpoint, last quarter, Mark, I think you mentioned expecting $30 million or so of relief just from the wind-down of some software projects. Honestly, that’s been ramped, and you expect higher depreciation from here. But just from an overall CapEx standpoint, kind of what you’re expecting for this year, and maybe if you’ve got visibility for next year, what that looks like for next year?
Mark Seaton: So we think our CapEx has peaked. Last year, we were $250 million of CapEx. We think CapEx will be down somewhere between 15% and 20% this year. And a lot of that has to do with some of these big initiatives. You’re never done, but, you know, sort of the pig’s been pushed through the python, if you will, and we’re kind of over the hump. And also we’re doing things a lot more efficiently now. We’ve found that, just hiring great tech talent, great engineers, it’s just a better way to build products as opposed to going to third parties where you’re paying more and not quite getting the same value. So that’s been a big initiative for us, and we’re seeing early signs of success. So we feel really good about the direction of where we’re going from a tech perspective.
And not only is that going to help us from a performance in terms of building products, but it’s also going to have the effect of saving dollars, particularly CapEx dollars. So 15% to 20% decline this year. And that’s with still making all the strategic investments that we feel like we need to make.
John Campbell: Okay. That’s helpful. And if I could squeeze in one more, I think I might have missed this, but did you comment on the April refi month-to-date orders?
Ken DeGiorgio: The April refi orders are we’re running at about 371 per day, and it’s about the same as where it was last year and about 6% over last month.
John Campbell: Okay, great. Thank you, guys. Thanks, John.
Operator: [Operator Instructions] One moment, please, while we pull for any additional questions. And at this time, there are no additional questions. That also concludes this morning’s call. We’d like to remind listeners that today’s call will be available for replay on the company’s website or by dialing 877-660-6853 or 201-612-7415 and enter the conference ID number 13745. The company would like to thank you for your participation. This concludes today’s conference call. You may now disconnect.
