Giuliano Bologna: That’s great. Thank you so much. And Chris, you’re right, I’m looking to working with you for the next 15 months. So you’ll have a good runway there.
Christopher Marshall: Likewise, thank you.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Kyle Joseph with Jefferies. Your line is open.
Kyle Joseph: Hey, good morning. Thanks for taking my questions. I just wanted to touch on the MSR fund. Any idea for the sense of target assets under management and the fee structure and then how that will flow through the P&L once it’s up and running?
Christopher Marshall: I appreciate the call Kyle. We have high hopes for our first fund. We’re targeting $1 billion fund, but and we’ve gotten some very positive feedback, but we are in the very, we’re in the first inning. So we hope to close that first fund by the end of the first quarter. And then start to put that money to work in second quarter probably really hit our stride in the third, but as you know and as you I’m sure you know and as I’ve experienced many, many times in the past, things seem great, you get out and start making calls and it’s a long process. So I’d rather as we’ll tell you a little bit more specifically in terms of details and timelines as we progress through the fourth quarter, maybe the beginning of the first quarter, but that’s our target.
Kyle Joseph: Got it. That’s totally fair. And then just one followup from me. I think you mentioned you’re seeing some margin compression in the correspondent channel, that’s just a function of rate movements or just give us an update on the competitive dynamics in that Channel?
Christopher Marshall: I think they’re both linked. There is — higher rates means lower volume across the country and you’ve got all the correspondent focused companies competing for that smaller amount of volume. So it’s actually going to be more pricing pressure and I think you’ll see that as long as rates stay high and volume are low. But that’s the only reason that we see causing the compression.
Kurt Johnson: And the only thing I’d add to that is, I won’t say we’re indifferent to it, but as we’ve told you guys many times, you know we deploy our capital where the highest returns are and clearly right now we’re seeing the highest returns in the bulk market. We’re achieving 15 unlevered returns in that market. We think that’s going to continue. We also play in the co-issue market, we see similar returns there. And so while the margins have compressed, we’ll continue to be a player, but we’re going to allocate our capital where the highest returns are and we’re extremely bullish on the bulk market.
Kyle Joseph: Got it. Thanks very much for answering my questions. Thank you.
Kurt Johnson: Thank you, Kyle.
Operator: Thank you. [Operator Instructions] Next question comes from the line of Bryant [indiscernible] with Wedbush Securities. Your line is open.
Unidentified Analyst: Hey, thanks for taking my question. Congrats on a good quarter. Just one quick one from me related to the earlier quote credit question, strong delinquency performance so far, but there was a sequential increase in modifications and workouts. I was just wondering is that related to Home Point and Roosevelt coming on or is there some other sort of increase in the organic portfolio, any commentary there and I guess how do you see those trending you know in the near-term?
Kurt Johnson: Yes, it’s Kurt. Thanks for the question. We’re actually not really seeing it from Home Point. Where we’re seeing it is in our Ginnie Mae portfolio and particularly our FHA portfolio. FHA rolled out a not a new program but an expansion of eligibility in the early part of the year and it was really well received by our customers and we were able as a result of that to take the delinquencies down from FHA. It also drove part of our ancillary income increase as well as FHA pays the success fee for those modifications. But you can see I think on page 17 [ph] of the presentation, our FHA delinquencies, how much they’ve come down and they’ve in fact crossed over via USDA [ph] and are lower than the VA USDA portfolio, but that’s primarily where the delinquencies come down.
Christopher Marshall: Just really just due to the new program, right, guys? It’s really the new program, yes.
Unidentified Analyst: Okay, great. Thank you.
Operator: Thank you. I’m showing no further questions in the queue. I would now like to turn the call back over to Jay for closing remarks.
Jay Bray: Thank you everybody for joining us and we look forward to continued conversation. Have a great day. Thank you.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.
