Bose George: That’s great, that’s very helpful, thanks. And then actually just a question on the corporate segment outlook there. Actually, this quarter’s number a reasonable run rate going forward? I mean, there are a couple of little blips, but is this kind of a reasonable level?
Jay Bray: No, I think we’ve actually made some investments in the corporate segment to look to reduce it going forward. We think there’s an opportunity in the coming quarters to actually reduce expenses in the corporate segment. So you shouldn’t think — you should really look at that as an investment that we made to actually identify some future savings.
Bose George: So, just specifically, some of the expenses in the first quarter were the investments, so you see it kind of trending down from here.
Jay Bray : Exactly.
Kurt Johnson: Although, Bose it’s Kurt, I just wanted to comment that the debt expense had only two out of three months on the new billion dollar issuance. So that will take up slightly, but it’s pretty close to our run rate. And we do call that out separately.
Bose George: Okay, perfect. Thanks a lot.
Operator: [Operator Instructions] And our next question is going to come from the line of Doug Harter with UBS. Your line is open, please go ahead.
Doug Harter: Thanks, can you talk about the outlook for cost per loan on the servicing side, as you think — can you continue to drive that lower and does that come from the technology investments because it comes from continued scale or both?
Jay Bray : I’ll start and let these guys come in. Hey Doug, I mean I’ll just give you an example of the power of the platform. You know we boarded [$130 billion] (ph) in the first quarter and our actual little compensation expense went down and we think we could board a [$100 billion] (ph) portfolio today and add less than 50 people. And so we’ve got incredible scale, incredible power in the platform. And I think we’re in still the middle innings of what’s possible from a cost per loan standpoint, which is why we — some time today talking about AI and the investments there. But we’ve been investing in data and technology for years, and AI is just now another arrow in the quiver to continue to drive costs down. So we really are bullish on continuing to take costs out there. So I don’t know, Mike, if you would add anything.
Mike Weinbach: Yeah, nothing to add. That’s the plan.
Doug Harter: Great. Thank you.
Operator: [Operator Instructions] And our next question is going to come from the line of Kyle Joseph with Jefferies. Your line is open, please go ahead.
Kyle Joseph: Hey, good morning, thanks for taking my questions. Just looking at Slide 12, wanted to dig a little bit more into industry DQs, particularly on the Ginnie side you’re seeing. DQs even come down in that segment. What’s driving that dynamic? Have you been able to refi those into Fannie and Freddie products?
Kurt Johnson: Hey Kyle, it’s Kurt. I’ll take a stab at that question. You can see obviously FHA coming down a lot faster than VA and USDA. FHA has done a really great job from a modification standpoint of just putting programs in place that are easy for the servicer to implement and really attractive for the customer as well. So they have programs that allow the customer to stay in their low rate mortgages and capitalize sort of all of their [indiscernible] on the back end of the mortgage. And we’ve actually seen them perform quite well as well. So the customer, once they recover from their temporary hardship, is able to go into these, keep the same mortgage rate, and really kind of continue to perform. And that’s why we’re seeing sort of the drop off in FHA.
Now, VA hasn’t had the same programs historically, and so that’s why you’ve seen sort of a slower decline, particularly around customers that are coming off of forbearance. But VA just introduced a new program this last week, where customers can get a modification with a 2.5% rate and a 30 year to 40 year amortization. So we do think that VA in the near-term will probably have some good opportunities as well. But that’s really what’s driving it. And yes, we are seeing it industry-wide. If you look at kind of the FHA performance, you’ll see their delinquencies have dropped overall over the last couple of months, and I think you’ll continue to see them decline as servicers are able to implement these programs.
Kyle Joseph: Got it, and then kind of a [tangential] (ph) follow-up just in terms of Xome, you know, was the first quarter — is that a decent revenue run rate? You know, obviously the lower DQs would impact that business but just give us a sense for how that business is performing given the declines in DQs.
Jay Bray: I mean, I think Xome is performing as expected, right? We’re not expecting anything terribly exciting from Xome in this market. I mean, delinquencies are at all-time lows. We don’t see that changing anytime soon. Given Kurt’s point, the government continues to roll out programs to keep borrowers in their homes, which is obviously very, very positive for the servicing business. But I think, until the cycle changes and you start to see more foreclosures meaningful, I don’t think you should expect a lot out of them. But again, we’re patient. It’s a very valuable asset. We’ve got a great platform there. We continue to win market share, and we’ll be patient.
Kyle Joseph: Got it, thanks very much for taking my question.
Operator: [Operator Instructions] Our next question is going to come from the line of Giuliano Bologna with Compass Point. Your line is open. Please go ahead.
Giuliano Bologna: Good morning. Congratulations on the continued execution.
Jay Bray : Thanks, Giuliano.
Giuliano Bologna: One thing I’d be curious about is, you’ve obviously grown the portfolio a lot, and you obviously have another $100 billion projected for next quarter. Is there any preference for balanced portfolios or at-the-money portfolios going forward? And is there any kind of preference for the different products out there?
