Terry Schmidt: First of all, the capital position we’ve been in has been extremely conservative, and we, over the last several years, we’ve kept a lot of capital in the business. And so we felt that it was reasonable to issue the dividend. And Amber, did you want to say something else?
Desiree Elwell: I just think, Rick, it’s a combination of a lot of factors, right? We’re looking at the business now, what we think the future holds. We do stress tests on our MSR. And we’re just ensuring that we have ample liquidity in any given situation. And then based on those factors, what do we feel comfortable with? And making sure that we stay in a strong position from a capital liquidity.
Rick Shane: Got it. And look, you referenced a couple of different things during the call. And one of the things is you did say that the environment is going to remain challenging, and you guys are managing through that profitably and gaining share. When you think about a challenging environment and declaring a special dividend, is the consideration, hey, we believe that we’re in a position where we are going to be profitable so we don’t need to worry about sort of putting in the extra $0.50 — saving the extra $0.50 of capital for now? And at the same time, if you were sort of looking forward to a market where you thought originations were going to be really strong, you might actually — even though you know that profitability would improve, you might actually retain a little bit more capital because you might need it into a more vibrant market?
Is that the sort of balance you’re working here, which is thinking about profitability, but also thinking, hey, it’s going to be a slow market we don’t need as much capital?
Terry Schmidt: We’re constantly looking at what our opportunities are out there. And we feel like the opportunities for continued growth is still very strong through this year. And then we evaluate what capital do we have, what do we think we’re going to need, and make sure that we’ve got plenty of access to capital and we’re in a good position. I mean I do think again that the rest of the year is still going to be an opportunistic year. And what’s really great about Guild is it doesn’t matter what market we’re in. Whether we’re in this market, we can take advantage and gain share. Whether we’re in a refi market and our loans in the portfolio are paying off, we can recapture. We recapture better than anybody. So whichever direction the market turns, we’re in a good position.
Rick Shane: Got it. And then last question — and look, I understand that a special dividend sends a signal to the market. At the same time, you guys did increase the buyback. But finance theory would suggest that if you’re trading at a discount to book, trading at a discount to tangible book, the more efficient way to return capital would be through repurchase. What’s the rationale — again, like if your stock is trading at a premium to book, the dividend makes more sense. But what’s the rationale of returning the preponderance of the capital through dividend versus repurchase when you’re trading at a discount?
Desiree Elwell: Well, we’re doing both, right? I mean we’re continuing to do our share repurchase program and returning dividends. And we look at what makes sense on the price and where we’re trading in tangible net book value and looking at that. So we feel like, like we said, we can do the share repurchase program, do the dividend, and continue to invest in both organic growth, acquisitions and technology back into our business.
Rick Shane: Okay. Thank you very much. Really appreciate it.
Operator: Our next question comes from Eric Hagen with BTIG. Please proceed with your question.
Eric Hagen: Hi, thanks. Hope you guys are well. I want to get your perspectives on the stability for gain on sale margins, especially for the purchased loans. And how much of an impact do you think the various concessions that you guys are offering have had on the margin, maybe even the trajectory for margins for the remainder of the quarter?
Desiree Elwell: We really haven’t been much change in overall margin. I mean we — both on the pricing margin side and execution, it’s about flat. Like I said, if you take out all the timing differences over the last 1.5 years, we’re about 340 average. I think a couple of quarters ago, I said 330. And we haven’t seen much change. And so I think until something else changes in the market, we’re thinking, ideally, that it will be stable. We haven’t seen anything else that has ticked it up or down right now, except within — the volatility within certain days.
Terry Schmidt: Yes. I would say that — yes, that’s right. I mean, we — if the rates start declining, typically, we historically have found that that’s when really there’s more movement on the gain on sale, because then people have — you’re getting more business in and you’re not fighting for every loan that you get. And until we’re in a meaningful refinance situation, this is — we’re not seeing much change here on the gain on sale.
Eric Hagen: Got you. That’s helpful. And I think you mentioned holding on to around 75% of your production and then selling MSRs for the remaining 25%. Can you kind of comment on conditions for selling MSRs? What are some variables that could get you to sell more MSRs than you’ve currently targeted for the remainder of the year? Thank you, guys.
