Good day, and welcome to the Flagstar Bank First Quarter 2020 Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Ken Schellenberg, VP, Investor Relations. Please go ahead, sir.

Thank you, Michelle, and good morning. Welcome to the Flagstar first quarter 2020 earnings call. Before we begin, I’d like to mention that our first quarter earnings release and presentation are available on our website at flagstar.com. I would also like to remind you that any forward-looking statements made during today’s call are subject to risks and uncertainty. Factors that could materially change our current forward-looking assumptions are described on Slide number 2 of today’s presentation in our press release and in our 2019 Form 10-K and subsequent reports on file with the SEC. We are also discussing GAAP and non-GAAP financial measures, which are described in our earnings release and in the presentation we made available for this earnings call. You should also refer to these documents as part of this call. With that, I’d like to now turn the call over to Sandro Dinello, our President and Chief Executive Officer.

Thank you, Ken. And good morning to everyone listening in. My apologies for the delay in getting this going today. And unfortunately, our conference call company is having some difficulties. I don’t think it has anything to do with all of us being remote. So hopefully, the rest of this calls are much smoother than it has thus far. And I hope that all of you, and your loved the ones who have been able to stay safe and healthy. And as I said, in the spirit of proper social distancing, I’m joined remotely this morning by Jim Ciroli, our Chief Financial Officer; Lee Smith, our Chief Operating Officer; Kristy Fercho, our President of Mortgage; and Steve Figliuolo, our Chief Risk Officer. I’m not going to spend much time today on our results, except for some commentary on our provision. I think it’s more important to tell you how we’ve adjusted our operations in the face of COVID-19 and how I think we’ll operate going forward given the uncertainty of the length of this pandemic. With respect to our results, it was a strong quarter with earnings of $0.80 per share, stronger still if you look at our pre-provision net revenue. Details will come from Jim and Lee in their remarks. So let me start with some comments about our position, which totaled $14 million for the quarter. Admittedly, the provision for the quarter was difficult to estimate. We had no option but to use an immature model to estimate life of loan losses in perhaps the most uncertain economic time in our history. And when you add the unknown impact of government assistance programs to the mix, it was a daunting endeavor. Frankly, I don’t think that there is a model that exists that can accurately predict the life…

Thanks, Sandro. Turning to Slide 7. Our net income this quarter was $46 million or $0.80 per share. This performance compares to the $58 million or $1 per share last quarter. The decline on a linked-quarter basis was largely due to the $14 million credit provision this quarter. We had adjusted net income of $37 million or $0.64 per share in the same quarter last year. Diving deeper into this quarter’s performance. Our pretax pre-provision earnings were $70 million this quarter compared to $69 million last quarter. Net interest income was down $4 million or 3% over the prior quarter. Average earning assets grew $442 million. In line with our expectations, the net interest margin decreased by only 10 basis points despite 150 basis points of rate cuts in March that were unexpected. This performance was driven both by our strong core deposit franchise, consisting of granular retail customers and by a well-positioned, well-diversified loan portfolio that has a large composition of fixed rate assets and floors on many of its variable rate loans. We’ll review these numbers further on the next slide. Mortgage revenues were $96 million, a decrease of $2 million or 2% compared to the prior quarter. During the quarter, we saw gain-on-sale margins increased significantly as primary, secondary spreads widened to historic levels and lenders work to manage capacity. However, in the second half of March, extreme market dislocation and volatility occurred, and we experienced $45 million of hedge losses, which I’ll discuss further in a moment. Asset quality remained strong. Net charge-offs were 8 basis points, and nonperforming loans were relatively flat to year-end. Our allowance for credit losses, or ACL, which includes the reserve for unfunded loan commitments, was $152 million at quarter end, up from $110 million at year-end. At these levels, our…

Thanks, Jim, and good morning, everyone. We’re very pleased with our net income of $0.80 per diluted share for the first quarter, which increased tangible book value to $29.52, but more importantly, I couldn’t be more proud of how we’ve responded as an organization to the COVID-19 pandemic. Nothing is more critical than the health and safety of the Flagstar family. And we were able to pivot quickly and ensure the vast majority of our employees were working from home by Monday, March 16. This didn’t just happen. We conducted a 2,500 employee remote work test on Friday, March 13 and expanded our network capacity in the days leading up to stay-at-home orders being put in place, which increased our remote connection capacity by 10,000 users. For those employees still needing to work from Flagstar facilities, we moved to implement distancing standards, an enhanced cleaning regimen and provide necessary protective equipment to ensure they felt as safe as possible while on site. It’s testament to the morale and spirit of the Flagstar team that during this transition, we didn’t miss a beat and continued to serve our customers and partners with the same exceptional standards they’ve come to expect from us. As government relief programs have been rolled out, we’ve moved quickly and efficiently to ensure our customers can participate and benefit. We took over 3,000 applications for the Paycheck Protection Program and have worked with thousands of borrowers requesting forbearance relief on their mortgages. We’ve increased our call center capacity and have not seen material wait or hold times throughout this period. Furthermore, there has been no layoffs or furloughs at Flagstar. A lot has been thrown at us over the last 7 weeks, but the team has stood tall. And I believe the journey we’ve been on over…

Thank you [Operator Instructions] And we’ll first hear from Scott Seifers with Piper Sandler. Please go ahead.

Good morning.

Good morning, Scott.

How are you? Thank you for taking my question.

Sure.

I guess, first question I wanted to ask is just on that increase in the trading securities of about $2.1 billion, and I guess the presumably related $2 billion increase short term and long-term FHLB advances. Maybe a little more color on what the strategy is there. And then as a follow-up between the $2 billion in trading securities and then, of course, the $1 billion-plus jump in the warehouse, they really kind of dinged the TCE ratio. So just curious what your thinking is on the balance between strong regulatory ratios but a comparatively thin TCE ratio?

Let me address the $2 billion and the $1 billion, and then I’ll let Jim chime in on the capital piece of it. So the $2 billion were securities that were kind of trapped in that period of time where there was Fed action going on, and we weren’t able to get them off the balance sheet at the end of the month. We did deliver them into the hedges. Their hedge is in mid-April, I think, around April 15 - 14, 15, so they’re off the balance sheet now. So that’s what that was. And then the warehouse, I mean, we’ve just seen the ability to increase our warehouse commitments grow as other warehouse providers haven’t been in a position to take on more. And that’s because we’ve kept a fairly low concentration limit on our warehouse business historically. And so given the fact that the opportunity is there in the market and then we narrow the collateral that we accepted on our warehouse lines. And then even reduce the advanced levels on certain collateral. So even though we’re at a higher level in our warehouse balances, the risk associated with that, we feel very, very comfortable with. In fact, if you look at that page in the slide that’s on our warehouse business, and I think it’s page 34, you can see the loss history there, and it’s virtually nothing. So even if you go back into the financial crisis, it was $1 million a year there for 4 years. So we’re really comfortable taking the level of warehouse exposure up given the spreads in that business and the low credit risk. So it does impact assets a little bit, but I think a trade-off is very, very helpful to us. So I’ll let Jim then opine on the capital piece of that

Yes. Thanks, Sandro. Just going back quickly, Scott. Just to remind you, at the end of the quarter, there was a lot of dumping of mortgage-backed securities going on, especially with like the Emirates because there were margin calls going on and those entities needed liquidity. That supply imbalance, I think, helped some of the dealers in that space get a lot more aggressive with their bids. And when we saw the bids for our Fannie, Freddie and Ginnie securities, and that’s what comprises that trade securities line is newly created MBS that we weren’t able to sell off our balance sheet at prices that we expected to get. We always had the option to deliver those securities into our TBAs and so rather than - look, we didn’t have to sacrifice execution at quarter end just to get those off the balance sheet. We had - we let our capital levels go down a bit, and our balance sheet balloon a bit. We had the liquidity. We had the capital to be able to do that and deliver those into the TBAs mid month. So that’s a big part of it. My remarks at the end, we continue to emphasize that when you look at Flagstar’s balance sheet between warehouse loans, and Sandro elaborated on the credit loss content that we’ve seen historically there, and I think we’ve strengthened it even more so this past quarter, and loans held for sale. Between those two portfolios, I think you’ve got some pretty strong categories. Not to mention, 97% of our securities portfolio are Ginnie securities. So there’s no credit risk implicitly in that portfolio. And then just look at some of the other categories we have on our balance sheet, you have roughly half our balance sheet. More than half our balance sheet is in categories that really have either no or very, very little credit risk – credit loss content. So the 6.25 [ph] TCE ratio at the end, I think it’s a little low. If you look at it on an average basis because as you’re aware, warehouse spikes at the end of the month, at the end of the quarter. And also we had that end of the quarter back up on our trading securities. But as you’re aware, if you look at - those balances spike up at the end of the quarter, if you look at it on an average basis, the ratio is 7.25 [ph] so 100 basis points higher

Okay. Perfect. That’s good color. I think, particularly on those $2 billion of securities because I think I had estimated that was just a loan, 60 basis points or so.

Yes. And just if I could, so all the things that you mentioned are kind of not related. So the looming of the balance sheet due to the backup of the trading securities on the balance sheet is different from what we’re trying to do in terms of the long-term FHLB advances, which is, we think the rates are just attractive at these low levels. And given our rate position that I walked you through from a deposit and a loan perspective, we think it’s the right thing to do now to lock in these low rates for that 3 to 7 year period of time.

Yes. No, I agree. I think it can be interesting, though. Just looking at the outside -- from the outside without that color, the almost a dollar-for-dollar match. So it looks like more of a conscious decision for some things that end up being sort of mutually exclusive. So that color is tremendously helpful. And I appreciate it. And then separately, I was just hoping to ask on the gain on sale revenue. So I appreciate the color on the $90 million so far, and it certainly sounds like that transitory hedge stuff will not impact. So I can back into what sort of a core gain on sale margin would be. But just given all the fluidity in the mortgage market right now, maybe any sense for what sort of ongoing gain on sale margins might look like and the big factors impacting in your minds?

I’m not going there, Scott. I don’t have the crystal ball. I can’t tell you what the margins are going to be going forward. But what I said in my prepared remarks, I’ll just reiterate and emphasize. If what Fannie thinks is going to happen, happens - and by the way, it’s not much different than what the NDA or Freddie thinks. I just picked Fannie for my prepared comments, if we have that kind of strength in the mortgage market going forward this year, then the opportunity to have gain on sale, maybe not at these levels, who knows. But they have continued gain on sale, strong gain on sale numbers, I think is - likelihood of that is strong. And then similarly, that does great things for our warehouse business as well. And we did say it was over $90 million. It’s actually now over $95 million. So this - right now, it looks very good, but we’re just not going to speculate on where it might go. And honestly, your guess is as good as mine.

Yeah. Fair enough. So good luck. Thank you guys very much.

Thank you. Next, we’ll move to Bose George with KBW.

Good morning. I want to ask about the loan sub-servicing business and how that gets impacted by the increase in delinquent loans, how you said the 9% loan requires more hands on approach. How does the contract work in terms of what you guys have compensated for that?

Yes. So Lee will obviously answer that one. That’s the deal. But I’ll just start by saying it’s different when you’re a sub-servicer versus a servicer, and I know that Lee will highlight that difference for you. So Lee, why don’t you take this one?

Yes. Yes. Let me just pick up on the last point you made, and I made this in my prepared remarks. First of all, of all the loans we sub-service or service, only 9% are owned by Flagstar. So that’s a very small percentage. And from a liquidity point of view, it’s going to be immaterial, just given our position as a bank and the available liquidity we have. In terms of our sub-servicing contracts, so there’s a couple of things that are going on. As loans become more delinquent than the fees that we get do increase. But obviously, given the higher requests for forbearances and that activity, we’ve obviously had to increase capacity, first of all, on the collection side of the business. And we’re now and have been increasing capacity in terms of loss mitigation activity because we know that is coming further down the line. So while there will be an increase in revenue the way the contracts are structured, there’s also an increase in our cost base just given the higher activity levels.

And Scott, no, I’m sorry. Bose, the other thing I would add is, if you look at our servicing portfolio, and they noted that it’s under 10% of the total loans of service, it’s not much different than your typical bank. So when you look at our servicing, our own servicing, it is very comparable to what any bank would have. It’s the sub-servicing that’s the big number. And as we articulated, that’s a very different dynamic.

Thank you. And then can you guys also just give a little more detail on your credit positioning within the CLE exposures, particularly the hotel and retail and senior housing? Just sort of what do you think was the provision levels to go for those exposures in a stress scenario?

Yes. So I can’t - kind of like gain on sale, I can’t tell you where the provision is going to go. I just know - I just feel, like I said in my comments, that we’re going to be looking at economics forecasts that are much, much different and worse at June 30 compared to March 31. But if you look at our portfolios, so go to Page 31, and you see the commercial lending and then 32, the detail on commercial real estate and 33, the detail on C&I. I mean, especially look at 32 and 33, and look at each of those categories, and you just don’t see any big number in any one category. And that’s what we talk about relative to diversification as well as concentrations. The biggest number is in home builder at $900 million, and we haven’t had one deferral request from our homebuilder clients thus far. So when I look at this portfolio, and again, as I said in my comments, this is a $27 billion balance sheet that has less than $5 billion in commercial exposure. I don’t think there’s any other $27 billion bank in the country that can say that. And that’s pretty low. So - and then you look at the diversification that’s here, and even in the syndicated portfolio, it’s over 90-plus credits, that number comes from. And so the average balance on each is relatively manageable. And when you look at the loan-to-value ratios in our CRE portfolio, they’re low. So I mean, if you really dig into the detail, we provided you a lot of detail on these pages. I think you’ll see that the risk content is on the low end of the scale. And we’re - we’ve always been very conservative when it comes to our allowance, and we’re not going to change that posture today. We feel very good about it based on the economic scenarios at the end of March, and we’ll do the right thing by the allowance, come the end of June. But I don’t have a crystal ball, man, to tell you what I think the provision could be in Q2. I just don’t know.

Okay. Appreciate your comment. Thank you.

You’re welcome.

And next, we’ll move to Daniel Tamayo with Raymond James.

Hi, Dan,

Hi. Hi, guys, how are you? Just on the NIM and then how the PPP program impacts that. I think you’d mentioned that the NIM should be relatively flat in the second quarter, including the PPP benefit. How much benefit is assumed from PPP in that, if I heard that right, in that flatten in?

Yes, I’ll let Jim answer, but I don’t think there’s a real benefit from PPP to the NIM. Jim?

That’s correct. No, it’s dilutive to the NIM that we would expect, Danny. But I would also say it’s not going to be material

It’s in the niche. Okay. I was assuming that there was some kind of recapture of fees in there, but if it’s an immaterial number, then that’s fine. All right. And then the floors in the warehouse business, did you benefit from those at all in the first quarter? And then how much would you – how many - or how much - what percentage - however much you could disclose are in the money at this point?

I don’t know if I know the answer to the, how many are in the money per se. But we have bumped into to a lot of the floors. It’s not that I don’t want to give you that information. I just don’t know that I know it off the top of my head. Jim does? Okay, Jim?

Danny, if you look at Slide 9, probably 1% of those warehouse loans have LIBOR floored at something higher than zero. So I think you can safely assume with LIBOR where it is today. And it just continues to come down to tighten the test spread on the difference between where LIBOR is 1-month LIBOR and Fed funds. So as that comes down, even more of those. But if you look at that 71% of that portfolio, have LIBOR something north of zero. A floor - a LIBOR floor north of zero.

Okay. Thank you. And then just one last question. On the CRE portfolio, do you - have you disclosed how much of that is construction?

Did we disclose how much of that is construction? Well, if you go to Page 32, and Jim, check me on this, but if you go to Page 32, you see the book value is $3.1 billion, the commitment level is 4.8. If we take the homebuilder piece out of it, the total commitment would be 3.9. So it would be something less than $800 million. And I don’t know, Jim, if you know what that is.

I don’t have those answers specifically, Danny. But if you -- when you look at our December call reports and when you look at our soon to be filed March call reports, it will break out in the loan section, RCC, it’ll break those amounts out for you.

All right, perfect. Thanks for answering my questions, guys.

You’re welcome.

And next, we’ll move to Henry Coffey with Wedbush.

Yes. Hello, I would like to say good morning, but its launch time. And thank you very much for taking my call. Three questions. Number one, it’s probably an editorial as well as a question. Given the reliance everyone has particularly on Moody’s COVID forecast for their diesel adjustments, is there any risk that, that becomes countercyclical and starts affecting your lending decisions? I mean, obviously, your portfolio doesn’t reflect the reserve add, it’s all CECL related. And so we know that the Moody’s forecast is more negative in April. It probably gets worse in May and June. And does that - that could affect your reserving as you’re stuck with the models, but does it affect your lending behavior?

I don’t think it directly affects our lending behavior. I mean, indirectly, if the economy is continuing to weaken, then that has an impact on our decisions in the commercial areas, whether it’s business banking, C&I or CRE. I mean right now, I don’t remember the last time I looked at a commercial loan for approval. And we’ve tightened our approval process down such that three of us are Chief Commercial Officer or Chief Better Officer and myself have to sign off on every new commercial loan right now. And I - like I said, I can’t remember the last one I signed off on. As time goes on, as things get better, we’ll make decisions to make commercial loans where we feel like a business has revenue confidence that allows us to have underwriting confidence. That’s the problem right now. It’s just very difficult to have confidence in cash flows with most businesses and so therefore, we’ve drawn back quite a bit. So I think our lending activities will probably be ahead of the Moody’s analytics in terms of when we start lending, when more opportunities come about that makes sense, but I don’t think there’s a direct correlation.

Great. Thank you. And then two more questions. Obviously, a $90 million gain on sale revenue in one month is quite spectacular. Do you have enough insight into the pipeline to get a feeling for how May and June play out? Can you - were there any - are there any sort of aberrant outcomes in April that really changed that? Or are you just seeing a big flow of business and obviously, a return on gain on sale margins to where you would expect they would be, which is much higher?

Kristy, if I’m wrong on anything, correct me, but I don’t think there’s anything much different in April than March other than we didn’t have the hedging challenges in April. The business continues to be very strong. The question, Henry, is can the margins continue at the levels they’re at today? I think the volume for the next couple of months looks pretty good, but whether the margins continue, I don’t know. And that was the question that was asked of me earlier that I punted on because I don’t know. But I’ll let Kristy add anything she’d like to that.

Yes, Henry. I mean, one thing I’ll share is, I mean, you only have to look at the strategy that we’ve really deployed over the last year, which is really evaluating those opportunities where we could optimize our returns through product, through volume and through channel mix. And then really just continue to focus on how do we bring value to our customers. And so we’ve continued that strategy in April as the market has really been dislocated over the last two months and really taking advantage of that to the $90 million plus benefit that we’ve seen. So there’s no reason to expect that, that won’t continue as we get into the future months, and our strategy will continue to be the same, optimizing that channel mix.

So we can go back to looking at primary secondary spreads as kind of the guidepost as to what to expect. And given the volatility seen in March, that probably doesn’t come up for a while. Is that a fair conclusion?

Yes. And it’s a great point that you bring that up because actually, if you look at primary, secondary spreads, these the historic high of 233 basis points at the end of March. And over the last 2 weeks, we’ve actually seen that tighten about 60 basis points. So that’s a good measure of, obviously, the competitive dynamic in the market as well as capacity. And so you’re absolutely right. I think that’s a good thing to watch. We certainly watch that and pick in terms of what our pricing power is in the market every day.

Great. Thank you. And then moving on, on the servicing side. For you, it’s not a question. You don’t have to worry about service or advances. You’ve got plenty of liquidity. And as you pointed out on the call, owned MSRs are a small part of your servicing book. But maybe you could give us some insight into what’s going on with your sub-servicing clients. Are they seeing an April of growing uptick in service or advance requirements? Are they - are you working with them on this to provide a liquidity line to help them with this, given that the Fannie and Freddie are kind of sitting on their hands? I was wondering what your - how does that business look like from the perspective of your clients? And what are you doing to work with them?

Yes. I’ll let Lee give you the detail, but the only comment I’ll make is, obviously, with 4 months maximum advance that the FHFA announced was, I think, a big relief to a lot of our partners. But yes, we’re going to work with them, just like we’re going to work with every commercial customer, and Lee can give you some detail on that.

Yes. I think you’ve hit the nail on the head, Sandro. I mean the FHFA announcement last week, it gave our sub-service or MSR owners who we Sub-service for a lot of certainty because it effectively capped the amount of time that they would have to make the advances for. And so I think that was very helpful for all of them in being able to, from a liquidity need, plug it into their models and understand what they would want or what they may need. And then on the Ginnie Mae side, you’ve obviously got the PTAP program that Ginnie Mae has put in place. That’s helpful. And of course, we work with partners where we can, and we do have some financing lines that are out there. And if we can be helpful in any way with our partners, we will do that. As I said, we’re in the fortunate position that we’re a bank, well capitalized. We have a lot of liquidity. And if it makes sense to do so, and we can help our partners, we will look to do that. But I think, I think the uncertainty that was there around liquidity maybe 3 weeks ago, 2 weeks ago, it’s ease given the certainty that people now have with the FHFA announcement.

Thank you. I think you’re in a great position. We’ve heard at least from the press that there’s 1 or 2 major correspondent lenders that may walk away from that business. Do you have the capacity from a technology, and a people, and a lending perspective to pick up even more market share, if that’s where we end up?

Yes. I mean, look, here’s what I’d say. You never like to benefit from adversity or if others are struggling. I mentioned in my prepared remarks, we’re servicing or sub-servicing a little over 1 million loans right now. And we have the capacity to service or sub-service 2 million loans. And look, we will just continue to do what we’ve always done in terms of growing that portfolio. And we’ve been very successful in doing that up to now. And so as opportunities arise, we will evaluate them and see if they make sense. I’m certainly not going to talk about benefiting from others sort of falling down at this moment.

Great. Thank you very much.

Thank you. Sandro, what did you want to say? I’m sorry, I cut you off.

Yes. I was just going to emphasize what Lee said. This isn’t the time to look at significant growth in our servicing business. I think we take slow it and easy and take advantage of the really strong opportunities that may present themselves. But the way we’ve been building this business over time has been - has worked really well, and we’re just going to continue to file that same very thoughtful path.

Very well. Thank you very much. This call was extremely helpful and the stock has responded well.

Thanks, Henry.

And next, we’ll move to Steve Moss with B. Riley.

Good morning. Just two questions for me. You guys provided a lot of detail here, but just one on the non-interest deposit growth for the quarter. I apologize if I missed it. Just wondered if you could give some color there.

I’m sorry. You cut out on me. I couldn’t hear your question. Hit me again, please.

Yes, sorry. On the non interest-bearing deposit growth for the quarter. Just wondering what the - what were the drivers there? Any color there would be helpful.

Yes. I think it’s primarily custodial deposits.

Okay. And then in terms of the disclosures around the leverage lending and the shared national credit portfolios here. Just wondering if you guys have any specific reserves for those portfolios. Any color there would be helpful.

Well, that’s Page 37, where we give you that breakdown. And it is within the CECL model. Jim?

Zero specific reserves on either of those portfolios.

Okay.

I’m sorry.

Okay. And there aren’t specific reserves but - let me just clarify, okay? There aren’t specific reserves in the GAAP terminology. But when you look at the CECL model, each industry has reserves, obviously, which would all be part of both the leverage and the syndicated portfolio.

Okay. That’s helpful. And then in terms of - just wondering about the $35 million in loans that were special mention, are substandard at quarter end. Has that increased quarter-over-quarter? Or is that relatively - just any dynamics there?

Yes, it’s relatively flat. Those had nothing to do - yes, those had nothing to do with COVID.

Okay. Thank you very much. I appreciate that.

You’re welcome, Steve.

And that will conclude today’s question-and-answer session. At this time, I would like to turn the call back over to Sandro DiNello for any additional or closing remarks.

Yes. Thank you, Michelle. I’d like to close by talking about the Flagstar spirit. This company has come together in a way that I’ll never forget, not just in the daunting deadlines, they have met and the crushing workloads they shoulder. But in the way they have brought fun into the things like the Flagstar COVID Facebook group, and a virtual happy hour, and company-wide photo contest showing their at home workstations. And while we’ve moved over 4,000 people to work at home, some folks do have to support bank branches, and some do have to be in an office building. And as you heard in Lee’s comments, we are doing all that we can to put them in a safe environment and have rewarded them with over $1 million in bonuses. Plus, though we changed the work week for our branch employees to 4 days, we’re paying them for 5, and we continue to pay employees who are not working due to the virus. We also set up an employee assistance program through our foundation to help employees experiencing COVID-19-related financial hardships. And in addition to the community support I noted earlier, we also opened our Paycheck Protection Program to nonprofits that were not previous Flagstar customers. Additionally, we set up a special small dollar loan program for people impacted by COVID-19 that live in low- to moderate-income areas. We know that we’re in the fight of our lives, and we’ve given expressions of that sentiment with the Flagstar versus COVID-19 T-shirts for every employee. We are tough, and we will prevail. Finally, thank you to the entire Flagstar family, and I appreciate all you do more than my words can express and all of the best to everyone else listening. I urge to stay home as much as you can, and I pray that you stay safe and healthy.

And that will conclude today’s call. We thank you for your participation.