Curt S. Culver – Chairman and CEO
Yeah, I would say that the overall benefit to the country outweighs the issues that there are in Texas or North Dakota. So I think this is a net positive to all our borrowers to a couple of States that may have some issues although still I think they are insignificant issues. I think the price is still at a level that people can make money at and won’t impact those States as much as may have been indicated, but I think the overall benefit to consumers across the country will far outweigh any issues that this may cause.
Q: Okay, great. And add my congratulations as well, thanks.
Curt S. Culver – Chairman and CEO
Yeah, thank you.
Operator
Our next question comes from Sean Dargan with Macquarie. Your line is open.
Q: Thank you, and good morning. I am trying to reconcile the guidance that the new insurance written will be slightly higher in 2015 versus 2014 with the comment that 20% of 2014’s business will be cheaper under FHA under the new premium rates at FHA. I guess what internally are you assuming you are going to lose incrementally to FHA?
Timothy J. Mattke – EVP and CFO
First let’s start with the fact that we are looking at a smaller overall origination market in 2015 versus ‘14 and then with our industry market share being right around 15% plus change and we are right around the 20% market share. Part of that it does assume modest growth in our industry’s market share and we continue to have modest growth in our market share throughout the year. And you start with that as a micro environment and then when we started getting into competition relative to where the product goes it’s just as Curt said earlier, we have advantages and disadvantages. We lose technically 5% of the business we wrote in 2014 was cheaper on a monthly payment basis yet we got that business.
So we’ve said 20% of the business would fall technically being more have a cheaper monthly payment even though the all-in cost would be more expensive. So to quantify how much of the additional 15% we lose if you will, when I say we don’t know it I mean there is going to be on the margin, there is going to be a borrower that maybe goes that way but they are on the margin they come back our way too.
Curt S. Culver – Chairman and CEO
And then what I would recommend you do is talk to mortgage lenders and you will find that mortgage lenders anything close will go conventional. And I think by 97s being offered, it will offer that’s a net increase. I think the re-finances will be significantly higher next year than this year given where rates are and where I think they will remain to be. I don’t think, again as I said on the FHA I think that will ultimately with a 97s, well the gain in business there will outweigh the loss of business that may have happened because of the price decrease.
So I am stepping out of this thing, but I got to tell you I am more optimistic relative to volume than what I stated here and as far as the company I think it will be a good year for volume next year.
