Jeff Adelson: Got it. That’s helpful. And just given the difficult environment out there, the rate environment has turned more unfavorable in recent months, would you anticipate doing more expense reductions next year if things kind of stay where they are? Or do you feel comfortable with what you’ve done so far? And as part of that, if we do stay in this kind of higher for longer environment, I know you talked about some more excess capacity coming out of the system, but what do you think it would take for you to get to more consistent profitability? Or what are you looking to reach that if the environment doesn’t turn?
Varun Krishna: Thank you for the question. I’ll start and then maybe, Brian, you can add any perspective. I’d just start by saying that our primary focus is on growth. You have a $5 trillion home buying TAM. You have a fragmented market. The mortgage market is $1.5 to $2 trillion. And we have this crazy opportunity to be very disruptive with AI. Now we’re always looking for efficiency. We think we’re in a good place. But as Brian shared earlier, I mean we’re well capitalized. And our perspective is we’re in a position to actually invest. And we’re looking for ways to increase our focus, our prioritization, but we are being very opportunistic given where we are in the market.
Brian Brown: Yes, that’s right. And the only other thing I’d add, just going back to those prepared remarks, we’re happy to report. We talked about expense reduction plan of $150 million to $200 million. We’re pleased to report we’re at the high end of that. And we pursuit of operational efficiency that Varun has alluded to, and that’s not something you start and stop. That’s something that’s built into your DNA.
Jeff Adelson: Great. Thanks for taking my question.
Brian Brown: Thanks, Jeff
Operator: [Operator Instructions] And our next question comes from Arren Cyganovich with Citi. Arren go ahead.
Arren Cyganovich: Thanks. I was wondering if you could talk a little bit about your progress making pickup in market share on the purchase side and whether or not the BUY+ program that you’ve put in place earlier this year is making a notable difference.
Varun Krishna: Thank you for the question, Arren. I’ll start and then Brian can add any perspective. Just start by saying that our purchase products just continue to be relevant and resonate with our clients. A few examples. We have our BUY+ program. And since the launch, we’ve seen the attachment rate double our One+ program, which is a 1% down program. We’ve seen the units triple between June and September. We also have our home equity loan program, and we’ve seen loan units and net rate lock volume double just in the Q3 alone. And so I think the goal for us is to ensure that the programs that we’re putting out are innovative. And more importantly, that they’re relevant and that they resonate with the clients. And so we’re excited to see that progress, and we’re also excited to continue to innovate. And Brian, anything that you would add?
Brian Brown: Yes. I think that’s great. I think the only thing I’d add, we’ve talked about in terms of how we measure share. We, of course, use the industry forecast, but a really good indication is securitization data. When we look at that, and that’s, of course, available to everyone, it shows us taking purchase share quarter-over-quarter and year-over-year. We also look at a lot of internal data to get more real-time results like Optimal Blue and CoreLogic. But the nice thing is no matter how you do that math, all three of them point in the same direction that we’re continuing to take share. And we’re seeing capacity continue to come out of the system, so it’s no surprise.
Arren Cyganovich: Thanks. On that last point, from a capacity standpoint, I guess where do you think we are in that process? Do you think there’s still a lot of capacity that continues to need to come out of the market?
Brian Brown: Look, I think we talked a bit about what 2024 could look like, at least from how the industry forecasters are looking at it. And if rates are higher for longer, that bodes well for us from capacity continuing to come out I think we’d all like it to come out faster. But if you think about all these mortgage companies that went public and raised capital, at that time and put them in a different position. Time will tell in terms of how that shakes out. Again, we think about us. We think about our balance sheet, our liquidity profile, be able to keep investing through these cycles. That’s the stuff that gets us excited.
Arren Cyganovich: Got it. Thank you.
Brian Brown: Thanks Arren.
Operator: And our final question today will come from Don Fandetti with Wells Fargo. Don, go ahead.
Don Fandetti: I was wondering if you could just talk a little bit about the acquisition strategy. If you see any fintech opportunities to kind of feed the funnel and also just an update on Rocket Money and how you feel like that traction is moving?
Varun Krishna: Yes. I’ll take this one. Thank you, Don, for your question. I think the first thing I would just point to, again, as Brian alluded to, is one of the great things about Rocket is, we have a very robust capitalization structure. We have what we call a fortress balance sheet and high levels of liquidity. And I think that gives us a lot of flexibility and it affords us the chance to be opportunistic, especially in this market where you think like valuations being down. So, what I would share is just we are actively in the process of writing the next chapter of our strategy with our leadership team, and we’re going to be pursuing ways to accelerate that strategy, whether it’s organic or inorganic. And so I look forward to sharing more as we write that next chapter.
And so more to come. We are going to have an Investor Day in the coming quarters. And so we’ll have an opportunity to go very deep on our strategy with all of our folks in the investor community. And I’d also just say with Rocket Money, we’re pleased with the progress that we’re making, and I look forward to sharing more with you in the quarters ahead.
Don Fandetti: Thanks.
Operator: Thank you, Don. Thanks to all who ask questions today. I will now turn the call back over to Varun Krishna for closing remarks. Varun, over to you.
Varun Krishna: All right. Thank you, everybody, for joining us today. We appreciate you, and we look forward to connecting again next quarter.
Operator: Thanks, Varun. Ladies and gentlemen, that does conclude today’s conference call. You may now disconnect. Have a great day, everyone.
