Finance of America Companies Inc (FOA) 2024 Q2 法說會逐字稿

Good day, everyone, and welcome to the Finance of America's second-quarter 2024 earnings call. At this time, I would like to hand the call over to Mr. Michael Fant. Please go ahead, sir.

大家好，歡迎參加美國金融 2024 年第二季財報電話會議。此時，我想將電話轉交給 Michael Fant 先生。請繼續，先生。

Thank you, and good afternoon, everyone, and welcome to Finance of America's second-quarter 2024 earnings call. With me today are Graham Fleming, Chief Executive Officer; Kristen Sieffert, President; and Matt Engel, Chief Financial Officer.

謝謝大家，大家下午好，歡迎參加《美國金融》2024 年第二季財報電話會議。今天與我在一起的有執行長 Graham Fleming；克莉絲汀·西弗特，總裁；和財務長馬特·恩格爾。

As a reminder, this call is being recorded, and you can find the earnings release and presentation on our Investor Relations website at IR@financeofamericacompany.com.

謹此提醒，本次電話會議正在錄音，您可以在我們的投資者關係網站 IR@financeofamericacompany.com 上找到收益發布和簡報。

In addition, we will refer to certain non-GAAP financial measures on this call. You can find reconciliations of non-GAAP to GAAP financial measures discussed in today's call to the extent available without unreasonable efforts in our earnings press release and presentation on the Investor Relations page of our website.

此外，我們將在本次電話會議上提及某些非公認會計準則財務指標。您可以在我們網站的投資者關係頁面上的收益新聞稿和演示文稿中找到今天電話會議中討論的非公認會計原則與公認會計原則財務指標的調節表，而無需做出不合理的努力。

Also, I would like to remind everyone that comments on this conference call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations and are subject to the Safe Harbor statement for forward-looking statements that you will find in today's earnings release.

另外，我想提醒大家，本次電話會議的評論可能是 1995 年《私人證券訴訟改革法案》含義內的有關公司未來時期預期運營和財務業績的前瞻性陳述。這些陳述基於公司目前的預期，並受前瞻性陳述安全港聲明的約束，您將在今天的收益發布中找到這些前瞻性陳述。

Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks or other factors, including those that are described in the Risk Factors section of Finance of America's annual report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 15, 2024.

由於多種風險或其他因素，包括美國金融公司 10-K 表格年度報告的風險因素部分中所述的風險或其他因素，未來期間的實際結果可能與這些前瞻性陳述明示或暗示的結果存在重大差異截至2023年12月31日的年度，於2024年3月15日向美國證券交易委員會提交。

The risk factors may be amended and updated in our subsequent filings with the SEC. We are not undertaking any commitment to update these statements if conditions change. Please note that today, we are discussing interim period financials, which are unaudited.

我們隨後向 SEC 提交的文件中可能會對風險因素進行修改和更新。我們不承諾在情況改變時更新這些聲明。請注意，今天我們討論的是未經審計的中期財務數據。

Finally, following the recently completed reverse stock split effective July 25, all earnings per share metrics for both current and historical periods will be calculated using the updated basic and fully diluted share count to provide an apples-to-apples comparison across time periods.

最後，在最近完成的反向股票分割於7 月25 日生效後，當前和歷史時期的所有每股收益指標都將使用更新後的基本股和完全稀釋股數進行計算，以提供跨時期的同類比較。

Now I'd like to turn the call over to Finance of America's Chief Executive Officer, Graham Fleming. Graham?

現在我想將電話轉給美國金融執行長格雷厄姆·弗萊明。格雷厄姆？

Yeah. Thank you, Michael. Good afternoon, everyone, and thank you for joining us today. To begin, I would like to review our results and discuss several key events that transpired during the quarter and how they will impact FOA.

是的。謝謝你，麥可。大家下午好，感謝您今天加入我們。首先，我想回顧一下我們的結果，並討論本季發生的幾件關鍵事件以及它們將如何影響 FOA。

Kristen will then share some important operational updates, followed by a review of our financials from Matt. For additional information, we have posted a supplemental presentation to our Investor Relations website, which we encourage you to review in concert with today's call.

然後克里斯汀將分享一些重要的營運更新，隨後馬特將回顧我們的財務狀況。如需了解更多信息，我們已在投資者關係網站上發布了補充演示文稿，我們鼓勵您結合今天的電話會議查看該演示文稿。

Overall, I'm pleased to share that Finance of America continued to deliver improved fundamentals across the business in the second quarter, resulting in our fourth consecutive quarter of improved ANI. As a team, we've been dedicated to executing our strategic plan, strengthening our operations, and advancing our path to profitability.

總的來說，我很高興地告訴大家，美國金融公司第二季整個業務的基本面繼續改善，導致我們的 ANI 連續第四季度改善。作為一個團隊，我們一直致力於執行我們的策略計劃，加強我們的運營，並推進我們的獲利之路。

As a result of our efforts, we see continued growth across the business. Both volume and revenue grew, and expenses declined over the prior quarter.

經過我們的努力，我們看到整個業務持續成長。與上一季相比，銷量和收入均有所增長，而費用則有所下降。

Taking a high-level look at the numbers on a continuing operations basis, we recorded GAAP net loss of $5 million or $0.20 per basic share. On an adjusted basis, we recognized a net loss of $1 million or $0.05 per fully diluted share and adjusted EBITDA of positive $9 million. This marks the first quarter of positive adjusted EBITDA since 2022.

從持續經營的基礎上對這些數字進行宏觀分析，我們發現 GAAP 淨虧損為 500 萬美元，即每股基本股 0.20 美元。在調整後的基礎上，我們確認淨虧損為 100 萬美元，即每股完全稀釋每股 0.05 美元，調整後的 EBITDA 為正 900 萬美元。這是自 2022 年以來首季調整後 EBITDA 實現正值。

Looking back, Q2 '23 marked the first quarter of the combined businesses of Finance of America and AAG. Since that time, our revenues, excluding other fair value changes have grown by 33% and our expenses have reduced by 26%. Year over year, we have markedly reduced our ANI from $26 million to $1 million.

回顧過去，23 年第二季是美國金融公司和 AAG 合併業務的第一季。自那時起，我們的收入（不包括其他公允價值變動）增加了 33%，而我們的支出則減少了 26%。與去年同期相比，我們的 ANI 從 2,600 萬美元顯著減少到 100 萬美元。

Furthermore, we have made substantial turnaround in adjusted EBITDA, improving from a negative $26 million in '23 to a positive $9 million in '24. Beyond these improved results, we see significant milestones throughout the second quarter that we believe further establish a foundation for continued operational improvement and growth.

此外，我們在調整後的 EBITDA 方面取得了重大轉變，從 23 年的負 2,600 萬美元改善到 24 年的正 900 萬美元。除了這些改進的業績之外，我們在第二季度看到了重要的里程碑，我們相信這些里程碑進一步為持續的營運改善和成長奠定了基礎。

First, we announced a 1:10 reverse stock split, recently completed in July, which put us back in compliance with the New York Stock Exchange continued listing standards. As we have said in the past, we are committed to maintaining access to the public markets and trading on the NYSE.

首先，我們宣布了 1:10 的反向股票分割，最近於 7 月完成，這使我們重新符合紐約證券交易所的持續上市標準。正如我們過去所說，我們致力於保持公開市場的准入和在紐約證券交易所的交易。

Second, we announced an exchange offer support agreement and that holders of over 93% of our senior unsecured notes had indicated their intent to participate in the exchange offer. As of today, holders of over 99% of senior unsecured notes have indicated their intent.

其次，我們宣布了一項交換要約支持協議，超過 93% 的高級無抵押票據持有人已表示有意參與交換要約。截至目前，超過 99% 的高級無抵押票據持有人已表明了他們的意圖。

This is a significant milestone for the company. And the transactions contemplated by the exchange offer support agreement will have later maturities, enhance our financial flexibility, and help align our cash flows with our debt obligations, thereby improving our capital structure for the future. We appreciate the partnership we have with these investors and look forward to their continued support.

這對公司來說是一個重要的里程碑。交換要約支持協議所設想的交易將有較晚的到期日，增強我們的財務靈活性，並有助於使我們的現金流與債務義務保持一致，從而改善我們未來的資本結構。我們感謝與這些投資者的合作關係，並期待他們的持續支持。

Next, we closed on two related warehouse facilities with two lending partners new to the reverse space to help minimize haircuts on our proprietary loan production. These new loan relationships are another example of greater interest being shown to the reverse mortgage industry by interested counterparties.

接下來，我們與兩個新進入反向空間的貸款合作夥伴關閉了兩個相關的倉庫設施，以幫助最大限度地減少我們自營貸款生產的削減。這些新的貸款關係是感興趣的交易對手對反向抵押貸款行業表現出更大興趣的另一個例子。

Lastly, the release of the preliminary term sheet for Ginnie Mae's HMDS 2.0 program at the end of June marked an important step in providing enhanced liquidity to the reverse mortgage industry. This exciting program provides a more favorable HMBS structure that will significantly reduce the capital required for buyouts and allows for the securitization of these buyouts into pools backed by Ginnie Mae.

最後，吉利美 HMDS 2.0 計劃於 6 月底發布的初步條款清單標誌著向反向抵押貸款行業提供增強流動性的重要一步。這項令人興奮的計劃提供了更有利的 HMBS 結構，將顯著減少收購所需的資本，並允許將這些收購證券化到吉利美 (Ginnie Mae) 支持的資金池中。

This has the potential to have a positive impact on earnings, tangible net worth, and liquidity. Each of these events has left Finance of America in a better position to achieve long-term success and help homeowners unlock the joy that comes from realizing the full potential of their retirement.

這有可能對收益、有形淨值和流動性產生正面影響。這些事件中的每一個都使美國金融公司能夠更好地實現長期成功，並幫助房主釋放充分發揮退休潛力所帶來的快樂。

Our entire team has worked diligently to improve the operations of the business while integrating and becoming a unified financing market. We sincerely appreciate all the hard work, and I want to share a huge thank you to everyone that has been a part of our company's transformation over the past two years.

我們的整個團隊努力改善業務運營，同時整合並成為統一的融資市場。我們衷心感謝所有的辛勤工作，我想向過去兩年為我們公司轉型做出貢獻的所有人表示衷心的感謝。

To tell us more about the brand transition to Finance of America and further operational updates, let me turn the call over to Kristen.

為了告訴我們更多有關美國金融品牌過渡和進一步運營更新的信息，請允許我將電話轉給克里斯汀。

Thank you, Graham, and good afternoon, everyone. Beginning in late 2022 and taking place over the last 18 months, we've worked to transform our operations to align with our refocused strategy centered on retirement, the 55-plus demographic and home equity.

謝謝格雷厄姆，大家下午好。從 2022 年底開始，在過去 18 個月裡，我們一直致力於營運轉型，以符合我們以退休、55 歲以上人口和房屋淨值為中心的重新調整策略。

With most of the work completed, we've turned our attention to strategic initiatives to optimize our platform and pave the way for future growth. This translates into improved operations, improved conversion, and a better customer experience overall.

隨著大部分工作的完成，我們將注意力轉向策略舉措，以優化我們的平台並為未來的成長鋪平道路。這轉化為改進的營運、改進的轉換以及更好的整體客戶體驗。

Last month, we successfully unified all of our brands under the single name, Finance of America. This milestone included launching new brand assets consisting of television ad featuring Tom Selleck, a streamlined corporate website, enhanced social media presence, and new multimedia advertising and collateral.

上個月，我們成功地將所有品牌統一為「美國金融」。這一里程碑包括推出新的品牌資產，其中包括以 Tom Selleck 為主角的電視廣告、精簡的企業網站、增強的社交媒體形像以及新的多媒體廣告和宣傳材料。

In concert with the brand unification, we also developed and introduced a singular company purpose and shared values. This achievement marks a significant step in our evolution, enabling full alignment across the organization to maximize our productivity as a group and realize the full value of our investment.

為了配合品牌統一，我們也制定並引入了獨特的公司宗旨和共同價值。這項成就標誌著我們發展的重要一步，使整個組織能夠全面協調，最大限度地提高我們作為一個團隊的生產力並實現我們投資的全部價值。

Within our retail division, we modified our go-to-market strategy to focus on our most efficient channel and stepped away from strategies that have been less fruitful over time. We expected to see outsized returns from this shift, and early results are supporting this theory.

在我們的零售部門，我們修改了進入市場的策略，專注於我們最有效的管道，並放棄了隨著時間的推移效果不佳的策略。我們預期這項轉變會帶來巨大的回報，而早期結果也支持了這個理論。

Looking at our industry leading suite of products, we continue to have strong demand from our best-in-class wholesale channel as we introduce solutions that appeal to the vast customer base held by our wholesale partners. We are confident in our ability to grow originations and continue to explore new strategies to attract and meet the needs of more customers.

縱觀我們業界領先的產品系列，我們不斷推出一流的批發管道，以滿足我們批發合作夥伴所擁有的廣大客戶群的需求。我們對發展創新的能力充滿信心，並繼續探索新的策略來吸引和滿足更多客戶的需求。

In Q2, we enhanced the LTV of HomeSafe Second to appeal to a wider segment of borrowers and introduced a streamlined underwriting option for high credit quality customers. In that same period, we experienced a 168% increase in submission volume quarter over quarter and a 30% reduction in average term time. We will continue to expand the estate availability each quarter and plan to launch HomeSafe Secon-specific marketing campaigns in our retail channel by the end of Q3.

第二季度，我們提高了 HomeSafe Second 的 LTV，以吸引更廣泛的借款人，並為高信用品質客戶推出了簡化的核保選項。同一時期，我們的提交量較上季成長了 168%，平均學期時間減少了 30%。我們將繼續每季擴大可用空間，並計劃在第三季末之前在我們的零售通路中推出 HomeSafe Secon 特定的行銷活動。

Last in our efforts to increase the penetration of the total addressable market, we continue to invest in digital technologies that capitalize on growth opportunities and create tailored experiences for our customers. With the heavy lift of the LOS and brand transitions behind us, we're shifting the team's attention to building out these capabilities as their top priority and look forward to sharing updates around these enhancements as they're introduced.

最後，在努力提高整個目標市場的滲透率的過程中，我們繼續投資數位技術，利用成長機會並為客戶創造量身定制的體驗。隨著 LOS 和品牌轉型的艱鉅任務過去，我們正在將團隊的注意力轉移到構建這些功能上，並將其作為首要任務，並期待在引入這些增強功能時分享有關這些功能的更新。

Now I'll turn it over to Matt to discuss our financials.

現在我將把它交給馬特討論我們的財務狀況。

Thank you, Kristen, and good afternoon, everyone. Within our continuing operations, we recognized GAAP net loss of $5 million or $0.20 per basic share for the second quarter. On an adjusted basis, the company recognized a net loss of $1 billion for the quarter or $0.05 per fully diluted share, the fourth consecutive quarter of improved results in our business.

謝謝克里斯汀，大家下午好。在我們的持續經營業務中，我們確認第二季 GAAP 淨虧損為 500 萬美元，即每股基本股 0.20 美元。在調整後的基礎上，公司確認本季淨虧損 10 億美元，即每股完全攤薄後的每股虧損 0.05 美元，這是我們業務業績連續第四個季度改善。

As Graham mentioned earlier, it's been just over a year since the acquisition of certain assets of AAG. During that time, the business has completed its integration and seen significant improvement in its operations. We saw origination volumes increased by 5% from the first quarter. We originated $447 million in loan volumes, up from $424 million in the first quarter.

正如 Graham 之前提到的，距離收購 AAG 的某些資產才過去一年多的時間。在此期間，該業務已完成整合，營運狀況顯著改善。我們發現發起量較第一季成長了 5%。我們發放的貸款額為 4.47 億美元，高於第一季的 4.24 億美元。

While we came in slightly under the provided guidance range for the quarter, we did see positive momentum in our production. In fact, our higher margin, retail and broker channels grew volumes by 18% and 12%, respectively, offset by decreased production in our correspondent channel.

雖然我們的季度業績略低於所提供的指導範圍，但我們確實看到了生產的積極勢頭。事實上，我們較高的利潤率、零售和經紀通路的銷售量分別成長了 18% 和 12%，但卻被我們相應通路的產量下降所抵銷。

Focusing on our retail and broker origination channels was a conscious financial decision that led to improved operating results and higher overall margins for the business. Additionally, we have seen an increase in average loan balances, both for proprietary and HECM products, which have resulted in part from the recent decrease in interest rates.

專注於我們的零售和經紀發起管道是一項有意識的財務決策，它改善了經營業績並提高了業務的整體利潤率。此外，我們也看到自營產品和 HECM 產品的平均貸款餘額增加，部分原因是近期利率下降。

Since the fourth quarter of '23, the average size of a HECM loan across our retail channel has increased around 10%. Note that we have enhanced the revenue section of our income statement presentation, which more clearly lays out the key drivers of our business. You can see this on slide 8 of the earnings supplement posted to our Investor Relations website.

自 2023 年第四季以來，我們零售通路的 HECM 貸款平均規模增加了 10% 左右。請注意，我們增強了損益表演示中的收入部分，這更清楚地列出了我們業務的關鍵驅動因素。您可以在我們的投資者關係網站上發布的收益補充資料的幻燈片 8 中看到這一點。

As you can see, year over year net portfolio interest income is flat while runoff has decreased from $55 billion to $48 million, resulting in a higher accretive yield on our portfolio. In addition, net origination gains have increased from $33 million to $40 million. As we grow new loan origination volumes in the future, this will show up in the net origination gains and fee income lines of the income statement.

正如您所看到的，淨投資組合利息收入同比持平，而徑流從 550 億美元減少到 4800 萬美元，導致我們的投資組合的增值收益更高。此外，淨發起收益從 3,300 萬美元增加到 4,000 萬美元。隨著我們未來新貸款發放量的成長，這將反映在損益表的淨發放收益和費用收入線中。

Excluding fair value changes to market inputs or model assumptions, total revenue for our continuing operations was $68 million in the second quarter of '24 compared to $51 million in the second quarter of 2023. This is a 33% increase in revenue across our operations in the last year. While revenues have increased year over year, we continue to see an overall decrease in expenses.

不包括市場輸入或模型假設的公允價值變化，我們持續經營業務的總收入在 2024 年第二季為 6,800 萬美元，而 2023 年第二季為 5,100 萬美元。去年我們整個業務的收入成長了 33%。儘管收入逐年增加，但我們仍然看到支出整體下降。

For continuing operations, total expenses declined from $110 million in the second quarter of 2023 to $91 million in the first quarter of 2024 to $85 million in the second quarter of 2024. As the cost reduction initiatives we have taken over the past year have continued to materialize.

對於持續運營，總支出從 2023 年第二季的 1.1 億美元下降到 2024 年第一季的 9,100 萬美元，再到 2024 年第二季的 8,500 萬美元。我們過去一年採取的成本削減措施不斷取得成效。

Turning to the balance sheet, our unrestricted cash balance was $47 billion at the end of the second quarter, comparable to March as the new financing Graham mentioned earlier, reduced the cash invested in our balance sheet as of the end of the quarter.

轉向資產負債表，第二季末我們不受限制的現金餘額為470 億美元，與3 月份相當，因為格雷厄姆之前提到的新融資減少了截至本季末投資於我們資產負債表的現金。

Finally, I want to reiterate our excitement surrounding the initiatives Finance of America was able to accomplish during the second quarter beyond our operating results. We have been discussing these actions for several quarters, and we are very pleased to be able to share the results of our efforts.

最後，我想重申，我們對美國金融公司在第二季度除了我們的經營業績之外能夠完成的舉措感到興奮。我們幾個季度以來一直在討論這些行動，我們很高興能夠分享我們努力的成果。

The reverse stock split announced in June and effective July 25 puts Finance of America back into compliance with New York Stock Exchange continued listing standards. The transactions contemplated by the exchange offer support agreement are expected to improve Finance of America's capital structure, and we look forward to the continued support of our noteholders.

6 月宣布並於 7 月 25 日生效的反向股票分割使美國金融公司重新符合紐約證券交易所的持續上市標準。交換要約支持協議所設想的交易預計將改善美國金融公司的資本結構，我們期待票據持有人的持續支持。

Additionally, the recently published proposed term sheet for the HMBS 2.0 program is expected to be a significant benefit to Finance of America and the reverse mortgage industry at large. The program allows for the securitization of buyouts into Ginnie Mae-backed securitizations and limits the capital required to manage these buyouts during the claims process.

此外，最近發布的 HMBS 2.0 計劃擬議條款清單預計將為美國金融和整個反向抵押貸款行業帶來重大好處。該計劃允許將收購證券化為吉利美支持的證券化，並限制在索賠過程中管理這些收購所需的資本。

Looking forward, we are excited about the early results in our third quarter. July volumes were strong, and recent declines in market interest rates, should they hold, would result in positive adjustments to the fair value of our assets. From an operational standpoint, we expect volumes in the third quarter to be between $475 million and $500 million. And given our reduced expense base and higher margins, we expect to return to ANI profitability during the third quarter.

展望未來，我們對第三季的早期結果感到興奮。7 月的交易量強勁，近期市場利率的下降（如果持續下去）將導致我們資產的公允價值積極調整。從營運角度來看，我們預計第三季的銷售額將在 4.75 億美元至 5 億美元之間。鑑於我們的費用基礎減少和利潤率提高，我們預計 ANI 將在第三季恢復獲利。

With continued improvement across our top and bottom lines, we expect to continue on the path to sustained profitability. With that, let me hand it back to Graham for closing remarks.

隨著我們的收入和利潤不斷改善，我們預計將繼續走上持續獲利的道路。接下來，讓我將其交還給格雷厄姆進行結束語。

Thank you, Matt. Given the material move in market rate interest rates so far in the third quarter and the potential for a shift in Fed policy, it may be worthwhile to recap how these events impact our business. In a declining rate environment, our operations will benefit in two key ways.

謝謝你，馬特。考慮到第三季迄今市場利率的重大變動以及聯準會政策轉變的可能性，可能有必要回顧一下這些事件對我們業務的影響。在利率下降的環境下，我們的業務將從兩個關鍵方面受益。

First, we have the potential for an increase in tangible net worth as asset values are expected to increase. Secondly, we would expect originations to increase as lower rates result in higher initial loan-to-value ratios on new loans, allowing more borrowers to qualify. Increased funded volumes with minimal near-term changes to our fixed expense structure would also reduce our origination cost per funded loan.

首先，隨著資產價值預計會增加，我們有形淨值有增加的潛力。其次，我們預期貸款發放量將會增加，因為較低的利率會導致新貸款的初始貸款與價值比率較高，使更多的借款人符合資格。增加資助量，同時對我們的固定費用結構進行最小程度的近期變化，也將降低我們每筆資助貸款的發起成本。

Throughout the second quarter, Finance of America stayed the course and continue to focus heavily on growth, delivering a strong customer experience and continuous innovation. We're excited about our pipeline and submission volumes, and we see a massive total addressable market over the long term, which we are well positioned to capture as the market grows.

在整個第二季度，美國金融公司堅持到底，繼續專注於成長，提供強大的客戶體驗和持續創新。我們對我們的管道和提交量感到興奮，從長遠來看，我們看到了一個巨大的潛在市場，隨著市場的成長，我們已經做好了抓住這個市場的準備。

When you consider the record number of seniors who are financially unprepared for retirement, while simultaneously holding a record amount of home equity, we'll be poised to meet their needs with our home equity-based retirement products.

當您考慮到在經濟上沒有為退休做好準備的老年人數量達到創紀錄水平，同時持有創紀錄數量的房屋淨值時，我們將準備通過我們基於房屋淨值的退休產品來滿足他們的需求。

Today, FOA holds top market share, and we're more confident than ever that we will continue to grow our customer base and transform lives by helping our customers make the most out of their largest asset, their home.

如今，FOA 佔據著最高的市場份額，我們比以往任何時候都更有信心，我們將繼續擴大我們的客戶群並透過幫助我們的客戶充分利用他們最大的資產（他們的房屋）來改變他們的生活。

As in previous quarters, we continue to execute on what we can control. We have built a strong platform that positions us well for growth and profitability while delivering an enhanced experience to our customers. And with that, we'll open the call up for any questions.

與前幾季一樣，我們繼續執行我們可以控制的事情。我們建立了一個強大的平台，使我們能夠實現成長和獲利，同時為客戶提供增強的體驗。這樣，我們將打開電話詢問任何問題。

(Operator Instructions) Doug Harter, UBS.

（操作員說明）Doug Harter，UBS。

Thanks. Hi. this side is actually [Will Nasta] on for Doug today. I heard you touch on the new HMBS 2.0 program in your prepared remarks. I was really just hoping, you could expand a bit more on the potential cash flow benefits that you might receive from this program.

謝謝。你好。今天這一邊其實是道格的[威爾·納斯塔]。我聽說您在準備好的發言中談到了新的 HMBS 2.0 計劃。我真的只是希望，您可以進一步擴展您可能從該計劃中獲得的潛在現金流收益。

So it's a little early to define exactly the net cash proceeds. I think the industry, as a whole, gave feedback to capturing that total that came out just recently. And we expect the final the churn to come out in the coming months.

因此，現在要準確定義淨現金收益還為時過早。我認為整個行業都針對最近公佈的總數提供了回饋。我們預計最終的流失將在未來幾個月內出現。

However, based on the draft proposal that was presented, we see a significant portion of our buyouts that would be eligible to be put into the new program with advance rates clearly above where we are today on our warehouse line. So we'll be quantifying those numbers more closely over the coming quarters as that gets finalized.

然而，根據提出的提案草案，我們看到很大一部分買斷將有資格納入新計劃，其預付款率明顯高於我們目前的倉庫線水平。因此，在未來幾季最終確定後，我們將更仔細地量化這些數字。

Okay, great. Thanks. And then just one follow-up, I know you commented on the third quarter origination outlook. And given the recent move in rates, if you can just comment on the pipeline you're seeing so far? And then how would you expect level of revenue margin to trend going forward given that move in rates?

好的，太好了。謝謝。然後是一個後續行動，我知道您對第三季的創始前景發表了評論。考慮到最近的利率變動，您能否對目前看到的管道發表評論？那麼考慮到利率的變化，您預計未來的收入利潤率水準會如何？

On the pipeline (inaudible) --

在管道上（聽不清楚）——

Yes, the pipeline has remained strong. I think we're -- with the refinance activity, if we see any with rates coming down, we'll probably see that funding in Q4. But the increase in borrowers that are qualifying today on new leads coming in, we're already starting to see that pick up this week in that built into the guidance that we gave for the origination volumes in Q3.

是的，管道仍然強勁。我認為，透過再融資活動，如果我們看到利率下降，我們可能會在第四季看到融資。但是，今天符合新線索資格的借款人有所增加，我們已經開始看到本週這種情況有所回升，這是我們為第三季度的發放量提供的指導中所包含的。

And I think the second part of the question on margins, I think generally, you might see a little bit of margin expansion on our loan products, but maybe not significant. And then we'll watch for spread land in terms of the margin we could securitize these loans for. The market is a little volatile right now. Spreads are moving around a little bit, but we think that will settle in here in the coming weeks.

我認為問題的第二部分是關於利潤率的，我認為一般來說，你可能會看到我們的貸款產品的利潤率擴大，但可能並不顯著。然後我們將根據我們可以將這些貸款證券化的保證金來觀察土地的分佈。目前市場有點波動。價差略有波動，但我們認為這種情況將在未來幾週內穩定下來。

Okay. Thank you.

好的。謝謝。

Stephen Laws, Raymond James.

史蒂芬勞斯，雷蒙德詹姆斯。

Hi. Good afternoon. Congrats on the EBITDA positive. Reiterating hitting ANI positive next quarter, I know it's something you guys have worked very hard to achieve over the past four to six quarter. So nice to see the progress you've made so far.

你好。午安.祝賀 EBITDA 為正值。重申下個季度 ANI 為正值，我知道這是你們在過去四到六個季度努力實現的目標。很高興看到您迄今為止所取得的進展。

I wanted to touch base kind of around some smaller things. First to verify the volume outlook, you guys say in the prepared remarks that July was kind of 10% up or kind of can you help quantify where July volumes are?

我想圍繞一些較小的事情進行接觸。首先要驗證成交量前景，你們在準備好的發言中說 7 月份增長了 10%，或者您能幫忙量化一下 7 月份的成交量嗎？

So I think that the guidance we gave for the third quarter is between $475 million to $500 million. And our July production was on a pace to really hit that target for the quarter.

所以我認為我們對第三季的指引是在 4.75 億美元到 5 億美元之間。我們 7 月的產量正在穩步實現本季的目標。

The high end of the target.

目標的高端。

Fantastic. As you think about funding that and cash flow need, can you talk about how the cash balance will trend through the back of the year? And are you happy with working capital loan? And I guess the non-funding interest expense increased slightly sequentially. So curious what drove that, if it was the weight increase on that working capital and or something else?

極好的。當您考慮資金和現金流需求時，您能談談今年下半年現金餘額的趨勢嗎？您對流動資金貸款滿意嗎？我猜非資金利息支出會比上一季略有增加。很好奇是什麼推動了這一點，如果是營運資金權重的增加或其他原因？

So on the first part of the question, in terms of funding the new production, the one thing that Graham mentioned in his remarks, we do have a new -- a couple of lenders that have kind of partnered to go in to help fund our pre-loan production and is greatly decreased our haircuts necessary to hold those loans that are on a phone. That's really helpful from kind of minimalizing the cash burn. On the second part, that maybe was a rate driven on the non-funding notes.

因此，在問題的第一部分，就為新作品提供資金而言，格雷厄姆在他的演講中提到的一件事是，我們確實有一個新的——幾家貸款機構合作，幫助資助我們的項目。這對於最大限度地減少現金消耗確實很有幫助。在第二部分，這可能是非融資票據驅動的利率。

Great. And then last one for now, a lot of accomplishments from the expense reduction initiatives. Is this kind of a good rate down moving forward? Do you think there's more kind of synergies or expense reductions that can occur from here? Kind of curious what your outlook is on the expense side.

偉大的。最後一項是削減開支措施所取得的許多成就。這種降息是否會向前推進？您認為這裡可以產生更多的綜效或費用減少嗎？有點好奇你對費用的看法如何。

I think that we've largely got the heavy lifting behind us at this point. We don't see no major significant reductions, but I think there's always opportunity to kind of sharpen the pencil. I think to some extent, we still have some legacy contracts and whatnot that were entered into when we were a much larger company.

我認為目前我們已經完成了大部分繁重的工作。我們沒有看到任何重大的減少，但我認為總是有機會削尖鉛筆。我認為在某種程度上，我們仍然有一些遺留合約以及當我們是一家更大的公司時簽訂的諸如此類的東西。

Then as those roll off, we enter into more right-sized contracts, more current organization due to continued requests for those contracts follow of. So I think there will be continued kind of downward pressure on the expense line, but I wouldn't expect at changes in this plan.

然後，隨著這些合約的推出，我們會簽訂更合適規模的合同，由於對這些合約的持續要求，我們的組織也更現代。因此，我認為支出線將持續面臨下行壓力，但我預計該計劃不會改變。

Although I would add that we expect to see lower cost per funded loan because our fixed expense base can support a much higher level of production than we're doing today. So we expect to see that in the coming quarters.

儘管我想補充一點，我們預計每筆資助貸款的成本會更低，因為我們的固定費用基礎可以支持比今天更高的生產水平。因此，我們預計在未來幾季會看到這一點。

Great. Appreciate the comments this afternoon. Again, congrats on a nice second quarter.

偉大的。感謝今天下午的評論。再次恭喜第二季度的精彩表現。

Thanks, Stephen.

謝謝，史蒂芬。

Thank you.

謝謝。

Everyone, at this time, there are no further questions. I'll hand the call back to Graham Fleming for any additional or closing remarks.

諸位，此時，已經沒有其他問題了。我會將電話轉給格雷厄姆·弗萊明，請他發表補充或結束語。

Again, thank you for joining our Q2 call, and we will look forward to having our call in November and we'll update everybody on our progress in Q3. So thank you very much, everybody, and we'll talk to everybody soon. Thank you.

再次感謝您參加我們的第二季電話會議，我們期待 11 月的電話會議，我們將向大家通報第三季的最新進展。非常感謝大家，我們很快就會與大家交談。謝謝。

And again, that does conclude today's conference. We would like to thank you all for your participation. You may now disconnect.

今天的會議到此結束。我們衷心感謝大家的參與。您現在可以斷開連線。