They’re sitting on significant, significant home equity, before any of these positions incur meaningful losses. So we continue to feel very, very good about, where the book is positioned, certainly including with some downside scenarios with a recession. And I think we’re, our job is just to keep maintaining, monitoring the book and managing credit. But why don’t I look at continue to BPL, which is the other piece of the puzzle.
Dash Robinson: Sure. Thanks, Chris. I would say similar to the consumer part of the book, the empirical performance within BPL remains really, really good, bridge delinquencies. We’re down from where they were earlier in the year ago, just over 2%, very strong level. The single family rental book, which is largely securitized, as I mentioned, in my prepared remarks, we saw a slight uptick in early stage delinquencies in that book and year-end that has been trending in the right direction, already year-to-date, just with our asset management team, as they always are just engaging very directly with borrowers. So just as a reminder, on the bridge portfolio, the vast majority around 90% of what we finance are in some shape or form a rental or stabilization strategy.
And so while the durability of the cash flows remain really, really good. What we do is look around the corner, and try to anticipate where the areas of stress are going to be. And we try to guard for that up front with our underwriting, our multifamily loans are typically underwritten to close to a 9% debt yield or higher, we’re very careful about how we try and rents and all that’s overlaid with focusing on the most sophisticated sponsors with the best liquidity. I think the reality, Rick, even as rates have come down here, the 10 years sits right now probably 55 basis points below its peak from Q4. The reality is across the bridge space, there will likely be sponsors that need to come out of pocket by a few LTV points to refinance into an agency loan, et cetera.
And our focus is making sure we’re with sponsors that have the capital to do that, and they’re executing on their business plans. We have a lot of bites at the apple, as I think in terms of our drawers, and ensuring that reserves are rebalanced and we’re revaluing properties. And so as more and more of those data points come in. Here, we’re more and more heartened by how those both sponsors are executing. But that’s the area as you can imagine, have increased focus here. Rental growth has obviously tapered a bit we expect that but we’re still seeing strength and average hourly earnings, which is a direct input into how we think the underlying tenants are going to perform. So, again, the empirical performance has been really, really good. But all that stuff that I just mentioned is really top of mind for us for the next few quarters.
Operator: Our next question comes from Eric Hagen with BTIG. Please state your question.
Eric Hagen: I think I’ve three questions, so just bear with me here. I mean, how would you say the return on capital and securitizing both the jumbo and BPL compares, say now versus a year ago when spreads were at some of their tightest levels? And then is the capital that you have in the jumbo segment more or less, kind of the minimum that you envision, just given where the market is. Is there any scale that you can achieve with the capital that you have there if origination volume improves? And do you see Wells Fargo exit, their exit from the correspondent channel being an opportunity. And then on the originations in BPL, how often would you say agency funding is a viable takeout for those loans? I think I just heard you mentioned that.
In some cases, it is. Like, is there any connectivity to the fact that GE fees have risen for those loans? And in cases where it’s not an agency loan, which does apply the takeout, what is the source of capital? But that typically does. Thanks a lot.
