Sean O’Neil: I believe — I have to go back and look at our K. It was — the actual valuation allowance includes the deferred tax asset plus some other drivers. I can give you the exact number out of the K. I don’t have it handy on me right now.
Matthew Howlett: Got you. Just — if I’m looking at it right, it could be — what you’re saying, it could be as much as $20 per share. I mean, that could come on theoretically the book value if that reserve was fully released at some point in time?
Sean O’Neil: At some point in time, with input from our external tax council, yes, that could have a significant impact now. The reason it also declines over time because as you produce MSRs, owned MSRs create a deferred tax liability that can offset that, but that’s usually partially. We believe the [Indiscernible] releases it should be a significant improvement to our network.
Matthew Howlett: Yes, exactly, your ratios are going to look completely different and you’re obviously not going to be a taxpayer for a significant period of time. Look, I appreciate that. I look forward to the update. Congrats on really solid results and good guidance.
Operator: [Operator Instructions] We have a follow-up question coming from the line of Eric Hagen from BTIG.
Eric Hagen: I think you mentioned the MSR portfolio that is owned by you is around $1.5 billion. Can you say what the advanced funding is that’s associated with that $1.5 billion? And is the $642 million of net advances, is that — like how is that allocated?
Sean O’Neil : Yes. So if you look near the end of the earnings deck, there’s a page on MSR valuation. I think it is, hang on a second, Page 29 this quarter. And from there, if you look at the third quarter, you can see the GSEs or the Fannie-Freddie column, is fairly normal for delinquencies, it’s pretty low. The 30, 60, 90 buckets, 1.8. And then you can see the PLS or the non-agency column is the other extreme at 15% and the Ginnies are somewhere in the middle. And the Ginnies, as Glen pointed out earlier, actually a mix of newer Ginnies which have low, what I’d call, normal delinquencies and very old pre-2008 crisis Ginnies, which are very delinquent. The delinquent Ginnies and the delinquent PLS drive the bulk of our advances.
So the vast majority of our advances are coming out of that non-agency book. Hence, Glen’s comment that we’ve had a renewed focus for several quarters now to kind of improve resolution on our non-agency book because that will bring our advances down. In terms of our kind of newer book, which would be the newer Ginnies and all the GSEs, that has relatively normative advances aligned with a fairly low delinquencies on that. And we have excess advanced capacity right now to finance in the event that advances do pick up.
Operator: There are no further questions at this time. I’d now like to turn the call back over to Mr. Glen Messina for final closing comments.
Glen Messina: Thanks, Laura. I’d like to thank our shareholders and key business partners for their support of our business. I’d also like to thank and recognize our Board of Directors and our global business team for their hard work and commitment to our success. I look forward to updating everyone on our progress on our next quarter earnings call. Thank you.
Operator: Thank you so much. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.
