Mathew Ishbia : Yes. So we’ve seen a very active market. And what we found actually, I have to do a little research, and Blake Kolo and his team do a great job at this, is realizing what our business is and who we are has made it, so our bids are maybe a little bit higher than others in the market. So we’ve seen a really great market. We get multiple bids anytime we bring something out. We get people usually bidding up on it, and it’s really tough because we like to partner with people and be consistent with them. But a lot of people are looking for that product. And I think as this new year starts, people will be looking for the product again. If there’s less originations out there, and there’s less opportunity out there, the less people they have the low rate, and there’s less people that are originating the current product.
And so I think there’s actually a really big market out there for MSR buying and for MSR selling as well, obviously. It’s a supply and demand issue. I think we have a lot of the supply, and there’s a lot of demand out there.
Operator: Your next question comes from the line of James Faucette from Morgan Stanley.
Jeffrey Adelson: This is actually Jeff Adelson on for James. Just noticed that the direct loan production costs were up 50% this quarter even though your originations were down a little bit. Just wondering if there’s anything to highlight there as a driver of those costs this quarter.
Mathew Ishbia : Yes. So actually, 1% down. Is that correct, Andrew, you want to…
Andrew Hubacker: Yes. Part of that is the initiative for our affordable programs, our 1% down program. That’s where most of the increase is there.
Mathew Ishbia : So it’s not tied to what you’re asking because expense is something we’re doing to help affordability, which FHFA, Fannie and Freddie are very supportive of. And so it’s in that bucket, but that’s not what it is. Our expenses are not up 50% on a loan-by-loan basis or product — on a variable cost basis.
Jeffrey Adelson: Understood. Okay. And then just — there’s been a few headlines recently about rate of loan repurchase request for the industry increasing from Fannie, Freddie. Just wondering if you guys are seeing anything there, what kind of impact you’re expecting for the industry going forward. And I know your Ginnie repurchase eligible loans were up, but not necessarily related to that issue, something different. So just maybe just talk about that.
Mathew Ishbia : Yes. I think this is a hot topic in the industry and to give credit to FHFA Director, Sandra Thompson does a great job, and she knows what’s going on in the market. And she realized it after it’s been brought to our attention. And I think Fannie and Freddie are making changes to be more aligned with what the industry expects and what FHFA expects. And so it’s not been a real issue. It’s been more of just same old thing. And I think actually, with some of the changes they’re making, I think it will be even reduced even beyond what we’ve seen in the last 24 months. So I think it will be a positive change. Some of the stuff that Fannie Mae and Freddie Mac are doing because I think some of it got a little bit out of normal course because of some of the interpretations tied to COVID, if you want to get to the real details. But I think overall, it’s not a big deal and it won’t be a big deal going forward.
Operator: [Operator Instructions] Your next question comes from the line of Kevin Barker from Piper Sandler.
Kevin Barker: Great. And just a follow-up on some of the affordability comments that you made. I noticed you moved down in credit score to the 580 from 620. Is that move partly due to trying to expand the credit box and push to make more affordable loans? Can you just maybe give some more color on that move?
