Mark DeVries: Okay. Fair enough. And then I was just hoping to get a little bit more context about what kind of gives you comfort that there will be a significant ongoing impact from the incident. Is there anything you can kind of share about the nature or frequency of any kind of regulatory conversations or inquiries around it? And also just discuss kind of what efforts you’re doing to identify and fixed vulnerabilities in your systems there?
Kenneth DeGiorgio: Yes. I mean I think the big thing about kind of getting back to normal or no ongoing impact is just, first of all, the orders we saw, the order counts we saw come in, in January. And then the feedback we’ve gotten from our customers. I think by and large, our customers have indicated that they put the incident behind them. And unfortunately, in this day and age, these types of things are becoming more and more commonplace as we’ve seen with competitors and other participants in the industry. Obviously, when you have an intent like this, there’s regulatory inquiries and potential litigation. But because our information security program really was probably best in class. I don’t anticipate, but again, you never know with regulators, but I don’t anticipate to have fines or the live coming out of regulators.
Now obviously, plaintiff lawyers are different. They always come out of the woodwork in instances like this. But I don’t anticipate that any of that would be material. And I would layer in as well that we also have a fairly robust cyber insurance program, which would help mitigate the impact of some of those expenses as well.
Mark DeVries: Okay. That’s helpful. And then just one last follow-up on that last point. I think you — Mark, is there any sense you can give us for — if you do get insurance recoveries what those might look like?
Mark Seaton: I’m sorry, Mark, you broke up there. Can you repeat the question?
Mark DeVries: Yes. Just is there any sense you can give us for the insurance recoveries and what — if you receive them what those might look like?
Mark Seaton: Well, we have a $5 million deductible that we booked in Q4. And so we’ll have expenses that hit in 2024 related to the incident. But as long as we feel like those are probable in terms of recoveries, then we won’t see them hit the P&L. So we don’t see any significant impact in terms of the P&L in 2024 because of the incident we feel like it was all kind of booked in Q4.
Operator: Our next question comes from Soham Bhonsle with BTIG.
Soham Bhonsle: Mark, I just wanted to quickly follow up on your comment on margins for ’24. So I think you said something along the lines that it’s going to be similar to ’23, but then you also said low double digits. I mean low double digits could be a pretty wide range there. So could you maybe just put a little bit of finer point there for this year?
Mark Seaton: Well, our adjusted margin in ’23 in title was 9.9%. So I mean it’s — so our margins in ’24, given all the commentary I gave earlier is more like, call it, a 10% margin. Now listen, if the MBA is right and originations are up 15% to 20%. We’re going to do a lot better than that. So we’ve got more kind of scale in our business, and we’re running it more efficiently than we ever have. I mean to have a 10% margin here the trough in cycle is pretty good for us given historical standards. So we just — again, if we see modest improvement in 2024, we’ll still be at that 10% range.
Soham Bhonsle: So should we think about a 10% sort of like if volumes are up mid-singles right, versus sort of 10% to 15%. Is that the right way to think about it?
Mark Seaton: Yes. I’d say low to mid-single digits will be a 10%. Now obviously, there’s a lot of moving pieces, but that’s our expectation this early in the year.
Operator: There are no additional questions at this time. That 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 13743995. The company would like to thank you for your participation. This concludes today’s conference call. You may disconnect now.
