Tim Mattke: And it’s Tim. Just I guess to answer your question on what we’re hearing from originators and the origination market, I think it’s safe to say that we thought this year for them could be a little bit of a challenge, just not a ton of volume and not meaningfully higher than what last year. Obviously, there was some hope, I think from some corners coming into the year that, interest rate reduction over the course of the year might spur a little bit more activity. I think it’s safe to say there’s a little bit more pessimism around that at this point. From our standpoint though, I think we still feel like from an MI origination standpoint, pretty similar position that we were at the beginning of the year, because we weren’t going to see a lot of refi volume.
I do think there is I’m a believer in that people do get somewhat accustomed to interest rates and feel more comfortable transacting there. I do think this is an interesting dilemma that we have though as far as supply of housing coming on the market where you have this lock in effect that we talked about that there’s just not a lot of supply coming and there’s not a lot of incentive for people to put their homes on the market. And so, I think that that’s creating a pretty strong tension as far as where home prices are, bringing supply to the market to actually create enough origination volume. But it is as we’ve said in our opening comments, it’s sort of surprising a lot of support for home prices, which is good from our standpoint on an overall basis.
Operator: Now we’re going to take our next question. And the question comes from the line of Douglas Harter from UBS. Your line is open. Please ask a question.
Douglas Harter: Thanks, and good morning. Hoping you could talk about the opportunity to retire some of your older reinsurance deals as a potential use of capital and kind of how the returns on that look today?
Nathan Colson: Thanks for the question. It’s Nathan. That is something that we’ve built into a lot of our reinsurance agreements, especially in the traditional reinsurance market. We have exercised a lot of those options. So, we’ve recaptured the risk, I think really up through 2020, have some options upcoming on 2021 related deals. The ILN market is a little bit different. There’s no kind of natural ways to cancel outside of the kind of five or six or seven-year calls depending on the deals. We have done a tender offer for some older tranches of deals that we wanted to recapture there. But it is something that we continuously evaluate, something that as we think about not only what is our retained risk profile look like with and without reinsurance, what is our kind of target PMIERs kind of excess capital position and how would that be impacted?
And then I think more than anything, our strategy is really to focus reinsurance buying on the most recent vintages, where we think there’s the most kind of economic risk, the most volatility of financial results, modeled results. So, when you look at our reinsurance program today, it’s really concentrated in the last three or four years and we’ve effectively captured we captured everything from 2020 and prior and are kind of holding all of that risk ourselves at this point. So, I’ve been very happy with how the reinsurance program is situated today. Obviously, you have to keep doing new deals and keep managing deals as they get older to keep maintaining the position that we have today. So, I’d expect that that we’ll continue to evaluate those things and like we have in the past and we think that they make sense for us to do, feel comfortable recapturing that season risk.
Operator: Dear speakers, there are no further questions. I will now turn the call back over to the management for closing remarks.
Tim Mattke: Thank you, Nadia. I want to thank everyone for your interest in MGIC. We will be participating in the BTIG Housing Conference on Tuesday, May 7. I look forward to talking to all of you in the near future. Have a great rest of your week.
Operator: Thank you very much. This concludes today’s call. [Operator Closing Remarks].
