And perhaps at the back end of the curve continues to be steep like this, we may have some opportunity to take on some cheaper funding, at the same time keep some money relatively short to pay down some debt, because obviously, the short-term money is very expensive right now. So we have that optionality on the table.
Dave Rochester: Yeah. Well, to your point on reducing the debt. Just on the deposit side, you guys have obviously been working on a number of deposit initiatives that you talked about earlier and in prior calls. But I was just wondering if you can size the new opportunities that you now have post the deal close? I know you talked about the warehouse customer deposits that you could go after previously once you close the deal, if you could just size that, how big that opportunity is at this point and then hit on any other areas that you could point to?
Thomas Cangemi: I always said when we announced the transaction; I envisioned the embedded nature of just mortgage alone is a $10 billion opportunity. I felt highly confident that with Lee Smith’s business regarding, the escrow business, the loans that we service for others, as well as the warehouse business, it’s a tremendous opportunity in respect to the type of credit facility that we offer some of our clients given our size now. Our balance sheet at $90 billion, managing this business as being number two in warehouse in the country, gives us a good shot at really bringing in real funding opportunities for the bank. That being said, we still have a very interesting opportunity to take the technology that NYCB commonly have that’s going to improve when we combine with Flagstar to make further improvements to start banking the mortgage business.
I think the mortgage business, given the magnitude of our positioning, could have a lot more deposits attached to it. Maybe, Lee, if you want to add some color to the opportunity here on the mortgage side. But this is really what we saw from day one that we could easily build that up. In addition to the other lines of areas that we’re building up, which includes government as a service, doing some technology deposit opportunities, as well as going after the legacy NYCB customers to ensure that we make loans with deposits. So maybe, Lee, if you want to add some color on the lending — the deposit gathering opportunity on the mortgage side.
Lee Smith: Yeah. I think to Tom’s point, and he’s mentioned mortgage as a service for 18 months now. I mean we have, today, about $4.2 billion of escrow deposits from our servicing and sub-servicing book. And NYCB has at least a couple of billion of escrow deposits. And so we can bring more of those deposits in from the people that we’re sub-servicing for, not just the deposits attached to the loans that we’re servicing or sub-servicing but other escrow deposits that they have with other institutions. And then to Tom’s point, given the technology, the New York Community Bank has that we haven’t had at Flagstar, there’s an opportunity to go and raise core deposits from our TPO base. And remember, we’re dealing with about 3,000 TPOs, correspondents, brokers.
By having this technology that allows them to do their business banking with New York Community Bank and I think that’s a big opportunity, and we can also take that technology to our warehouse customers as well, which we haven’t done previously. So I think we can go and bring more escrow deposits in, as well as core deposits as a result of the enhanced technology.
