Chris Abate: I think it’s pretty dislocated. So Kevin, I think on any given loan, we still will compete with a handful of other lenders who will be aggressive. I think they’re unbalanced, though there are a lot of shops that have retrenched significantly or completely, frankly. And one cohort there obviously is the banks. As I mentioned, we are starting to see a lot of loans, whether it’s smaller multifamily or build for rent, all day would have been the stomping ground of the banks were those loans are coming our way. So that’s definitely a tailwind. But as you know, there’s a lot of private lenders in the space. And there’s a fair amount of private capital as well. But I think on any given loan, like I said, the competition can be deep, but in general, I think the competitive landscape is probably as good as it’s been in the past few quarters, given our overall position, our ability to stand up these capital partnerships, and just there are fewer folks able to lend constructively than there were three or four quarters ago.
Kevin Barker: Would you categorize this the returns on capital within that business as expanding significantly relative to where it was 6 to 12 months ago? On any new business that you’re underwriting?
Chris Abate: I think it’s mixed. I think on — I think the — what we consider BPL mortgage banking, where we are originating and securitizing our term loans. I think those gain on sales are pretty static from where they were a few quarters ago. We were certainly pleased with it. I think that business — businesses are I think is generally consistent. I think on the overall bridge side, I think, yes, in certain pockets we have seen some tightening bias on loans, just in general because frankly, there are not as many good loans to do as there were a few quarters ago, right. And so, the good sponsors, with a — for the lower leverage, which obviously is where lenders are, there can be some pricing pressure there. So I think there has been some expansion on are always in the bridge space. I think BPL mortgage banking is probably overall consistent with where it’s been.
Kevin Barker: Thank you very much.
Operator: Thank you. Our next question comes from Steve Delaney – JMP Securities. Please go ahead.
Steve Delaney: Great. Hey, good afternoon, everyone. Some good discussions this afternoon. Chris, I think it was you that mentioned something in the context of some expanding relationships. I believe you mentioned a CRT product, something new that was evolving. Could you elaborate on that a little bit please? Didn’t get that rush, that it was you?
Chris Abate: It probably was.
Steve Delaney: Okay.
Chris Abate: On CRT, I think, we’ve been focused with banks on their back books, certainly. And as we’ve signed up banks, I think we have 50 or more recently approved with a big pipeline behind that. We’re getting better access, better visibility to portfolio challenges that they may have. And so we’ve introduced some structures that we think are pretty straightforward. And obviously, the Fed recently issued some guidelines. And I think there’s, to me, the market feels like it’s more accepting of some of these structures than perhaps a few years ago. And so, we’re definitely open for business there. It is a big capital expenditure. And that’s where I mentioned, we are focused on partnerships. So, our business, our franchise is having access to these opportunities.
And we’re excited to partner with other businesses to fund them — to fully fund them. But I think the arbitrage, if you will, on lowering risk capital through CRT is very real. And as the real change is going to effect, I think more and more banks, in particular, will look to CRT, potentially via credit link notes to be a solution. Again, that doesn’t allow them or doesn’t require them to sell the assets, sell the loans and record big P&L charge wise. Yes, they’re good loans, right. So they’re good loans, they’re paying loans. So keeping them on the books and reducing the risk capital is probably the right way to go.
Steve Delaney: Yes, so maybe cost them — a little more cost to carry little hit to net interest income, but not the big capital hit for selling the assets off of the discount. So — thank you on that.
