Financial Data and Key Metrics Changes - The company funded $602 million in volume, representing a 35% increase from 2024 and a 7% increase from the prior quarter, marking the fifth consecutive quarter of volume growth [6][16] - GAAP net income was reported at $80 million or $3.16 basic earnings per share, compared to a loss of $5 million in the same period last year [16] - Adjusted net income was $14 million or $0.55 in adjusted earnings per share, with adjusted EBITDA of $30 million [6][17] - Year-to-date adjusted net income totals $27 million compared to a loss of $7 million in the first half of last year [7] Business Line Data and Key Metrics Changes - Q2 originations topped $600 million, with submissions rising nearly 11% overall and HomeSafe second submissions growing by almost 23% [10] - Wholesale volume grew nearly 55% in Q2 relative to 2024 [10] - The average market share for HMBS issuance in Q2 was 28%, reflecting a 4% improvement over the average of the prior three quarters [11] Market Data and Key Metrics Changes - Subordinate lien loans for senior borrowers grew 20% year over year, reaching $49 billion in volume [14] - The company increased its HMBS issuance market share in June to over 29%, the highest monthly share since January 2024 [11] Company Strategy and Development Direction - The company aims to drive greater awareness and education around accessing home equity through retirement, focusing on expanding scalable digital tools and enhancing customer experience [8][9] - The company is committed to becoming the most trusted brand for homeowners entering the next chapter of life, building a smarter, scalable, and service-led retirement solutions platform [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term opportunity for reverse mortgages, anticipating continued market leadership as more homeowners seek to utilize housing wealth for retirement [10] - The company reaffirmed its full-year guidance of $2.4 billion to $2.7 billion in originations and $2.6 to $3 in adjusted EPS [20] Other Important Information - The company completed its first-ever $1 billion plus HomeSafe securitization in July, highlighting strong investor demand for its assets [8] - The company paid off its higher-cost working capital facility and entered into an agreement with Blackstone to acquire the remaining equity stake in Finance of America [21] Q&A Session Summary Question: Clarity on reiterated guidance and impact of working capital line pay-off - Management indicated that the guidance was on track to meet targets even without the working capital line pay-off, but the transaction will reduce annualized interest expense by about $10 million [25][26] Question: Sources and uses to pay off the working capital line and fund buyback - Management confirmed that the convertible deal closed and the working capital was paid off, with a series of transactions planned to fund both the equity repurchase and bondholder payments [28] Question: Long-term capital structure and leverage levels - Management discussed the importance of retiring existing debt and indicated that the remaining convertible note will likely convert to equity, with future thoughts on capital structure to be considered after achieving certain milestones [29][30]