Financial Data and Key Metrics Changes - For Q4 2025, the company reported GAAP net income of $18.3 million, or $0.13 per share, compared to a GAAP loss of $9.5 million, or $0.08 per share in Q3 2025 [22] - Book value per common share was $7.36 at December 31, 2025, slightly up from $7.35 at September 30, 2025 [22] - Economic return on book value was 2.6% for the quarter, including $0.04 from share repurchases and $0.18 per share common dividend [22] - Non-GAAP earnings available for distribution (EAD) increased from $0.01 in Q3 to $0.20 in Q4, exceeding the common dividend [22][23] Business Line Data and Key Metrics Changes - The Sequoia platform locked $5.3 billion of loans in Q4 2025, a 5% increase from Q3 and up 130% from Q4 2024 [12] - Aspire locked a record $1.5 billion of loans during Q4 2025, a 20% sequential increase, with total 2025 lock volume exceeding $3 billion [16] - CoreVest closed out 2025 with full-year volumes up 13% versus 2024, with RTL representing nearly 40% of Q4 production [17] Market Data and Key Metrics Changes - The company estimates that between $200 billion and $300 billion of jumbo mortgages could become refinanceable as mortgage rates hover just above 6% [8] - The company’s full-year 2025 jumbo market share was approximately 7%, significantly up from prior years [13] Company Strategy and Development Direction - The company is shifting focus towards increasing capital to mortgage banking platforms, with over 80% of capital now invested in core operating activities, up from 57% in 2024 [6] - The company plans to leverage AI to enhance risk management, accelerate capital deployment, and improve operating leverage [10] - The company is winding down its legacy investment portfolio to free up capital for core activities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for increased volume in 2026, driven by a favorable economic environment and housing affordability initiatives [10] - The company expects core operating performance to drive consolidated earnings above the common dividend in 2026, enabling earnings retention and reinvestment [11] Other Important Information - The company reported a 44% year-over-year reduction in operating costs per loan, attributed to technology enablement and operational efficiencies [20] - The company is focused on maintaining a flexible balance sheet and strong liquidity, with $256 million of unrestricted cash at quarter end [28] Q&A Session Summary Question: Impact of recent mortgage rate changes on business volume - Management reported January volume at $3.6 billion, indicating continued acceleration from Q4 [30][31] Question: Opportunities in the Aspire non-QM platform - Management highlighted strong momentum in non-QM products and expected growth in the non-QM market, estimating it to be $130 billion for 2025 [32][34] Question: Future of third-party capital providers - Management noted strong demand for production and ongoing discussions with capital partners to support growth [40][41] Question: Current margins in non-QM and jumbo channels - Management indicated targeting margins in non-QM similar to Sequoia, with expectations for improved execution through securitization [44][46] Question: Competitive landscape in non-QM - Management acknowledged increased competition but expressed confidence in their ability to grow market share [48][49] Question: CoreVest originations and margins - Management projected higher volumes in Q1 with consistent margins, focusing on smaller balance products [73][75]