Q4 2021 UWM Holdings Corp Earnings Call
Good morning, My name is <unk> and I'll be your conference operator today at this time I would like to welcome everyone to the U W. M Holdings Corporation fourth quarter 2021 earnings Conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll be a question and answer session if you'd like to ask a question.
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Good morning, everyone. This is Blake Colo Chief business Officer, and head of Investor Relations. Thank you for joining us and welcome to the fourth quarter and full year 2021 U W. M Holdings Corporation's earnings call before we start I would like to remind everyone that this conference call includes <unk>.
Looking statements for more information about factors that may cause actual results to differ materially from look forward looking statements. Please refer to the earnings release that we issued this morning, I will now turn the call over to <unk>, Chairman and CEO of UW M Holdings Corporation, and United wholesale mortgage.
Blake I appreciate it so let's jump into it you know I. Appreciate you guys all joining the call today first off you know, let's talk about 2021. He was amazing year for you Debbie and I think it makes sense from your focus on recapping, our key achievements for the year before getting into the quarterly results and outlook for 2022 first UWS set a new production record in 2020.
One with just under $227 billion origination up almost 44 billion from 2020.
One of the most impressive aspects of this.
Is that $87 billion of production was purchase business, which is most in company history in any given year. In addition, we average about $25 billion in purchase production in each of the last three quarters of 2021. My second key point is our consistent growth in profitability quarter over quarter and year over year 2021.
Marked our seventh consecutive year of origination growth and our 15th consecutive year of profitability, we delivered $1.6 billion in net income our second most profitable year ever.
Our continued focus on speed service and best in class technologies, why we continue to deliver these results. However, our scale is now also a huge factor in our success our scales what gives us increased confidence in our continued ability to deliver strong and consistent results for all of our shareholders. My third point is our continued advancement in technology.
In 2021, we launched many amazing technologies, but the biggest one of note is bolt the most advanced underwriting system in the industry, both give us brokers more control brought in the loan origination process and we've found that brokers more control of the process naturally becomes more efficient and lowers our cost per loan we implemented you close.
Technology several years ago with the same goal of making the process and closing more efficient and that has been a huge success as well.
It's technology like bolt and you close to help us close loans faster than anyone in the industry and at lower origination cost.
Lastly, I have to express that none of these accomplishments of 2021, which were amazing it across the board would not be happening without our amazing team members are amazing broker partners, you know and the ideas, we get from them and the partnership we've had it's a huge part of our success with the great partnership I'm excited for our continued success and growth together now.
Now, let's talk about the fourth quarter, we delivered $55 billion in production, representing our best quarter of all time, beating our 2024th quarter numbers. The 24 $5 billion of purchase we delivered in the fourth quarter was a record for us an astounding, 103% over year year over year once again from Q4.
On the purchase side, we know brokers are the dominant player in the purchase market and we are confident you'll see that the number one direct funded purchase lender again in 2022.
We delivered $239.8 million of net income for the quarter with gain margins of 80 basis points with these being some of the lowest margin we've seen in a corner history. We still remained very very profitable I believe these margin numbers or near the bottom and I see the first quarter of 2022 being very similar to the fourth quarter somewhere between.
75, and 85 basis points of margin with $33 billion to $42 billion of production will be very profitable at these numbers and will remain so even if it were lower.
Lastly, I want to focus on the.
The most important part which is 2022.
Number one the broker channel will continue to grow.
Our refi business flows we're seeing retailers converting the wholesale channel the fastest pace in many years, we have dedicated teams, helping these loan officers.
With transition and making sure they're successful from day, one we are seeing the most activity since inception of our beer mortgage broker dotcom platform all signs show that the broker channel is growing and at a faster pace than we've seen in years. We saw some of this happened in 2018 and 19, but this what time it will be much more dramatic and we're seeing early signs at this point number two will be achieved.
Significant scale and remain laser focused on becoming more efficient you know we believe our cost per loan will go down over the next 24 months with bolt as it gets more adoption and we continue to enhance the technology or you do make it even greater and there's other big technology in the works as well.
We continue to contemplate the best time to bring servicing in house you know we have a large servicing book with one of the lowest wax weighted average coupons in the country will likely finish 2020 to over $400 billion, we know theres a lot of opportunity with us we're exploring financial upside of bringing servicing house. We also think there's a great opportunity to develop our own best in class service.
Platform, which have many additional benefits and present other business opportunities for U W. M. I appreciate everyone on the call for spending time with us today and look forward to seeing a lot of you at our campus for May 12 for UW M life, which is our event where a lot of our clients will be there a very big positive thing about the broker channel we'd love to invite.
Inviting many you guys to join US now I'm going to turn it over to our CFO , Tim forced to give a couple of other details about 2021, and the fourth quarter as well. Thanks, Matt the fourth quarter was successful for the company in an even more challenging environment, our volume in the quarter contributed solidly to a record year and it was rooted in our strength in originating.
Purchase loans originating purchase transaction is more challenging endeavor and our efficient execution is critical to process underwrite and close a purchase transaction.
Our operations are built for the purchase market to enable broker clients to provide a differentiated solution to American consumers.
The competitive environment push margins lower as compared to record margins. We saw in the fourth quarter of 2020 and dropped a bit from the prior quarter.
Even with the increased competition, our financial performance remained strong and our return on equity for the quarter was impressive.
Another item that is important to consider is the composition of our gain margin.
Our production volume was lower in Q4 over Q3.
Our on balance sheet loan balances were up this.
This is primarily a result of the new loan limits and our retention of those loans until we sold them under the new limits into any twenty-two.
To give some context, we sold around 5.8 billion more in loans in the first week of January than we originated in around nine and a half more milk billion more for the month, because we incurred the hedging costs and our gain margin yet the economic benefits in our interest line items. It further pushed down the margins from an already compare.
Live environment.
Overall, the economics made sense for us to hold the loans. It just shows up in different line items had costs and the gain margin interest income and expense both higher or in the case of interest expense higher than it would've otherwise been.
While we did consummate our first MSR sale in 18 months at the end of Q3, our servicing portfolio still increased and delivered additional substantive revenue for the quarter, while our servicing costs increased along with the larger portfolio. The servicing revenue dollar increase was significantly larger than the incremental servicing cost.
As we continue to grow the portfolio. We will increase this benefit this is important from an earnings perspective as well as cash flows.
As noted we held a large balance of loans in Q4 to more efficiently deliver into the agency MBS, while interest income increased expense actually declined a.
The majority of that intra period and a majority of that was intra period self warehousing of loans, where we self fund to use our available liquidity more effectively which then holds down the interest expense give.
Given that our overall warehouse balances were increasing due to the retention of loans. The performance on interest expense was quite positive.
The MSR portfolio was just under 320 billion at December 31, with a weighted average coupon or WAC of 2.94%.
The portfolio was 285 billion at September 30, with a weighted average interest rate of 295.
So up a decent amount and size and slightly down on rate, which positions us well.
Our forbearance rate is roughly 57 basis points down from 83 basis points at prior quarter end. So forbearance has not impacted us as much as others in the industry and we expect that to continue to be the case.
Our severe and overall delinquency continued to be under 1%. So we are continuing to observe better asset quality than the industry overall.
Now that the fed has indicated not only tapering, but a fairly clear path of rate increases to be expected. Our MSR book is well positioned to generate cash the WAC is already well below the market and further upward movement makes it that much more attractive.
We issued a balanced tenor of unsecured debt in the quarter to support our MSR growth in line with our increased capital while maintaining an appropriate ratio between the features each feature.
We believe our operational performance and credit discipline will continue to provide further unsecured debt opportunity if market conditions align with need.
Cost per loan it was again solid in the quarter, we experienced cost per loan of $15 57 for Q4, which continued our performance from prior periods and maintaining discipline efficiency and making necessary investments in our people and processes.
For the year, we continue to perform well on cost per loan and the relationship between fixed and variable costs.
Beyond our immediate cost to produce alone the wholesale model has considerably less fixed cost spread and lower volume environments. As we continue to invest in technology and innovation, we seek to improve such cost performance long term.
As a reminder, when we discuss cost per loan ours is a fully loaded cost without exclusions, we do not exclude allocations corporate costs are measured cost an incremental or a direct basis.
Our board executed their responsibilities engaged management and substantive discussion on the merit of a dividend and believed it was prudent to provide to the public shareholders. As noted in the press release, our board again authorized a regular dividend to be paid to our public shareholders consistent with our track record as a publicly traded company.
We are comfortable with the amount and timing and believe it is appropriate to reward our stockholders.
Okay, now I will turn things back over to our chairman and CEO Maddish via for some closing remarks.
Thanks, Tim.
Before turning it over to your questions I want to summarize a few key points.
UWS remained steadfast in our commitment to the wholesale channel. The channel continues to grow its share in the industry and we will see more retail loan officers migrated the channel is rate rise even as our market share stays the same at 33% Theres a big opportunity for you Wm and I believe our market share will continue to decline.
Our cost structure and scale enable us to have highly profitable at these margins.
And our dividend and accelerated share repurchase demonstrate our commitment to our shareholders.
We're real excited about 2022, it's going to be another great year at you Wm and now I'm looking forward to turning it over in taking some questions from you. Thank you.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, if at any time you'd like to remove yourself from the queue. Please read press star one at this time, we will pause momentarily to assemble our roster.
We will now begin the Q&A session. Your first question comes from the line of Doug Harter with Credit Suisse. Your line is open.
Ah Thanks, hoping we could get more into the cost side, you know kind of as as industry volumes come down in 'twenty 'twenty. Two could you just talk about the mix you know how much is fixed costs and how in the short to intermediate term, we should expect that the cost per loan to trend.
Hey, Doug It's Tim Yeah, I would expect that just like anything when you have a smaller denominator the cost will increase a slight amount, but what we projected and what our goal and target for 2022 is still going to remain at $500 per loan of cost per loan in the first quarter normally you'll see a little bit higher cost per loan.
For for a couple of reasons, you'll have a higher cost load.
For various expenses in January February March.
As some of the limits get get hit into a threshold, but also because there was some of the lighter volume do you expect in the first quarter. So we do expect first quarter to have a little bit of higher cost, but that will be made up in Q2 and Q3 is as volume comes through the seasonal seasonal process as far as the proportions.
Typically you see somewhere between 70, and 80, 82% being a fixed costs relative to our portion.
How to produce alone if you do that on a comparative basis to the retail channel.
Our share of variable cost is much higher and that theres more variable variability in the cost to produce a loan through the wholesale channel than there is retail so while we would expect 80% of our cost per loan at 500 or $15 50 to be <unk>.
Fixed cost.
On the overall scale, including both broker compensation, it's a it's a highly it's more highly variable as far as cost structure.
Great very much appreciate it thank you.
Yes.
Your next question comes from.
Kevin Barker with Piper Sandler Your line is open thanks.
Taking my questions just wanted to follow up on the guidance for the first quarter. It seems like your guidance would indicate nearly a 30% quarter over quarter decline in originations.
That is more in line with the refi.
Hum.
Expectations for the quarter on a quarter over quarter basis.
But it would seem like the brokers are more focused on the purchase side, which has seen a little bit less decline is there some dynamic going on on a quarter to quarter trends that would.
Cause it to be more refi heavy versus purchase heavy and therefore, the decline quarter over quarter.
Yeah. This is Matt. Thanks for the question no I think you're looking at a little bit differently than I think of it part of the purchase growth, which January February March are always the slowest purchase months of the year.
Besides the northern state just in General school, a lot of different aspects, but then the piece that were not taken account as inventory throughout the market and so although.
<unk> locations are strong on purchased the movement of houses and the lack of inventory does.
Make the purchase not us.
A vibrant in the first quarter as it would have been in the.
Whatever fourth quarter or third quarter, So I R. R.
Perspective is that the market will be.
Longer than the second quarter from a purchase perspective, but we're going to have a great quarter in the first quarter volume wise and I think if you look at our Q1 2021 versus our Q1 2022. The decline that you wm will be substantially less than all the other refi shops, you're speaking about but not as small would decline as we'd hope it purchase inventory was stronger.
Same thing if you look at Q4 2020.
Q4, 2021, where almost everyone went down in volume we did not we actually grew our mortgage volume. So I think youll start to see that trend difference with new Wm and the strength of our business going forward as you already saw in the fourth quarter with the volume numbers.
Okay and then.
Your revenue recognition on fallout adjusted locks or is it on origination volume.
And then as your fallout adjusted locks going to be above or below your origination volume in the first quarter.
Yeah. Our revenue recognition is upon in the origination of loan we don't recognize revenue when we receive an application. So there is a difference between that so the fallout adjusted that you see in some of the other companies that report.
Have a direct implication on immediate income or revenue, it's more of a forecast into the future periods.
Okay, and then a quick question follow up on Doug's questions around expenses.
What order of magnitude do you expect the expenses to decline in the first quarter just given.
The decline in production volume I know you addressed some of it is being variable expense.
But I was hoping maybe you can give a little more detail on some of the expense decline that could occur.
Given seasonality and the movement in production volume.
I think the expenses will actually go up on a on an overall basis, both on a nominal basis because some of the tax implications of how people are compensated. So so number one I think the overall expenses are a little bit higher, but we'll offset that as our staffing levels and some of them we address some costs.
And what we do on the ongoing management of the business will be a little bit shorter in the first quarter. So overall the expense on a per loan basis, maybe a little bit higher on the fixed side because they overall volumes are also a small amount of pickup in the overall expense because of some of those tax features and other relevant items and just to add to that Kevin. So you understand where we're.
To be highly profitable in the first quarter so too.
Just like we were in the fourth quarter. So youre thinking of expenses is lower volume that expense are going to become an issue, they're not because of our technology and our cost to originate is so much better than the industry youre going to see that in the first quarter numbers.
Okay. Thank you for taking my questions.
Your next question comes from the line of James Faucette with Morgan Stanley . Your line is open.
Great. Thank you very much.
I'm wondering.
If you think about the kind of the change in obviously the interest rate environment.
Et cetera.
And the impact that that's having on on Refis generally, but I am wondering where does cash out refi fit in and can you talk a little bit about the traction that you may have had within cash out refi and is that impacting your business planning at all for 2022.
Yeah. Thanks for the question. So you know interest rates moving up which we're all very aware of.
Again, I've talked about it for over a year now is a positive sign for the broker channel positive sign for you Wm from a market share perspective cash outs, one way that a lot of lenders are going to try to.
Up their business and we will do cash out refinance because theres a lot of opportunity out there in that world, but purchase business as the Terminator of success in a rising rate environment. There's a lot of different gimmicks and lot different ways to try to do a lot of refi business, which we'll do revise and will do cash outs and will do.
Much business as we can however, you'll start to see this.
Signs of business based on purchase volume and at the same time youll be able look over year over year, and see who is dependent on refi and who's not as dependent on refi.
So cash out will be a bigger part of the business in 2022, however, with equity in house going up however.
It's not the saving Grace that's going to keep People's volumes at what they were in 2021, and so when Youll see our first quarter volume will feel really confident with where we're at compared to our competition and that will drive our market share up and that tied to the broker channel as well loan officers are joining the broker channel and our biggest push.
The we've seen since 2018, and it's gonna be much bigger than 18, and so we're excited about that opportunity as you Wm only plays into 20% of the market the broker channel and as that market goes to 30%.
We're going to grow even though the market share or the overall market will decline.
Thanks.
I wanted to ask a quick follow up question on expenses and I think you've touched on this earlier, but just looking for a little more color here with volumes down and in compensation.
<unk> expenses down similarly, but production costs up around.
Third quarter over quarter could you describe again for me, what's happening there and I guess the bigger question I have is.
How can we think about the room for future efficiencies and mortgaging mortgage servicing overall and how expenses in UWS you can can achieve more efficiency in the overall process.
Yes, so if youre talking about servicing which are you seeing mortgage loans I couldn't follow up youre, asking about servicing or origination yeah. So as I was trying to refer sorry, I was trying to refer primarily to origination.
Great. So I mean I mentioned it in my in my remarks earlier about a lot of different technology and efficiencies. We've put in place bolt is the is the main one that's done a lot of different things and as that adoption continues that will be a major.
Springboard for lower cost and more efficiencies UWS already the most efficient lender in the country closing loans faster than the market by a wide margin even in the purchase market, which is a major competitive advantage, but also our cost to originate is lower as Tim mentioned already and that's why even in low margin scenarios.
As the fourth quarter was we were highly profitable that will continue going forward and our efficiencies will only grow and be more successful one as both becomes a bigger part of it so bolt along with you close which are closing technology are both.
Our proprietary and highly effective ways to reduce costs improve efficiencies and it's a great service for our clients.
Thank you.
Again, if he would like to ask a question Press Star then number one on your telephone keypad. Your next question comes from Bose George with <unk>. Your line is open.
Hey, everyone. Good morning, actually I just wanted to ask about gain on sale margin sort of outlook. After the first quarter, just curious I guess.
Seasonality gets better but just curious your thoughts on competition, whether that you think that intensifies just outlook for later in the year would be great.
Yes. Thanks for the question so being in the wholesale channel our margins are already lower in general than the retail channel, where youre going to see a lot of compression as a lot of these retail lenders and other lenders are going to be.
Bringing their margins down like I said in my remarks, I think we're basically at the bottom levels. That's why I guided to $75 to 85, which is up 80, which what we did this quarter was right in the middle of that number.
So do I think that the margins are going to go up in the second third and fourth quarter.
<unk> or <unk> or flat they will not go down as my perspective, and it's really not as much competitive pressures as the opportunity to move loan officers from the retail channel to the wholesale channel. It's a business development strategy, it's working fantastically and we feel great about where we're going with it and so we will decide on how long that will continue and how it will go.
Going forward, but the reality is.
Don't see it going lower than the 75 to 85 basis points.
Number I gave you earlier today.
Okay, Great. That's helpful. Thanks, and then actually just in terms of disposition to move servicing or potentially move servicing in house is it purely a cost thing or are they are there other benefits to doing that.
Yes, so there's a lot of different benefits to potentially doing that we look at a lot of different things from cost potentially but also service to our consumers into brokers, which help as we continue our servicing book continues to grow it's a bigger part of our business overall and so we look at all things and that's why I mentioned that is something that we are going to look at.
And we've added but at the same time, we have great servicing and sub servicing partners right now that are doing a very good job for us and we feel confident in the process we have today.
Okay, great. Thanks.
Your next question comes from the line of Henry Coffey with Wedbush. Your line is open.
Yes, good morning, and thank you for taking my call.
You know there's been a lot of talk about technology.
Of how if I were to open up.
Brokerage firm Tomorrow, how comprehensive with the United wholesale offering be I mean, what.
What I need.
Other resources to be able to originate loans with what you offer sort of created total in house platform for me.
Yeah, Henry So good question.
We have the platform and so I like to call it turnkey or we call. It broker in a box. However, you want to think about it but we can get someone up and running the longest pole in the tent is usually the state licensing or the state recognizing a new broker shop, and so that some states are 30 days and some states are 90 days whatever it may be but we put that ability and so loan officers that are calling.
We're getting one hundreds and hundreds and hundreds and hundreds.
We are reaching out to us, saying, let me start my shop, Let me let me go through that process. Let me leave the retail channel enjoying a broker channel we first find out whether they want to join the channel and it worked for a loan originator and other brokerage up and we can always refer them or connect them to other ones in the neighborhood or in their area or if they want to start their own shop, if they are leaving a retail company.
It's like I said, it's broken a box, we can walk them through soup to nuts start to finish they can use our technology to originate loans. They can use our technology to closed loans. They can use our technology to stay in front of their past clients. They can use our technology. It's all been built proprietary all the way from start to finish where it will make us they don't go out and get 18 different.
<unk> just become a mortgage broker so it's a huge competitive advantage. That's why everyone calls us obviously, we're the leader in the industry and a lot of people just start using that technology and thats, what they use going forward.
So on so I don't need to go use Ellie Mae as long as I'm.
Or someone else some other vendor as long as I am content with being just in the brokerage channel.
Absolutely.
<unk>.
Talked a lot about.
<unk>.
The growth of the brokerage channel and we've seen a little bit of that statistically in the historical numbers, but.
Can you give us some comments on why you think it's going to grow to 30% and.
Over what timeframe.
Yes, so it's going to grow to 33% by 2025, 'twenty six 'twenty 'twenty five 'twenty six thats when we projected.
You'll see a big part of that leap in the second third and fourth quarter. This year because the loan officers all migrating right now you've heard about multiple retail lenders, whether they're cutting compensation for loan officer or losing money or struggling we're not in that position. We're here to help guide those loan officers to be successful in the broker channel and help them win and so.
It's a very strong position that we're in and those one offs are going to move and migrate with that being said the big thing that I don't think people realize the mega retail lenders I won't name names, but you know who they are are very reliant on churning their past servicing book to get all their volume so when they say they retain all of their business, that's a big part of that.
Origination volume that's not our origination volume is not the brokers origination volumes. So just by the fact that these large retail lenders that have refinanced ensuring their servicing book for the last two years, and that's where 60, 70% of their volume came from that coming out of the market is a big part of the decline in the overall origination space brokers don't have that at that.
At that scale and so therefore, the broker channel will naturally grow because the retail channel is going to go down faster loan officers are going to migrate over it's going to be a win win for brokers and once again the pie for you Wm will grow or we will not shrink like the retail channel and Thats why youll see our market share in 2020 to be the largest it's ever been.
On the on the overhead by comparison can you give me some sense of what origination.
The cost to originate a loan was either in the third quarter or the year ago period, and what it's likely to look like in 2022, and then just related to that and I'll get off the phone and listen.
You did say that your overhead was going to be higher in the first quarter, but that sounds like that's more sort of seasonal stuff is that correct.
Yes, more in the first quarter, it's a seasonal function off first of all the expenses tend to be a little bit higher in the first couple of months and secondly, the volumes a little bit lower so the overall cost the fixed cost portion is going to be a little bit off.
During Q1, when we look back at prior years.
The number comes in around 500, or we might have been around <unk> hundred.
In our peak volume point.
I look at it monthly we look at it monthly together and so those can go down to those levels. It can and has in Q1 for instance, there was one month. This year that was as high as $2000 per loan because of some costs that happened in a specific month. So.
Yes, it's still a profitable period for still a profitable <unk>.
<unk> I wouldn't say that the costs should go up to that level.
During 2022 for any quarter, but even at those levels. We are still in a good position and when I compare it to the overall retail cost structure.
Still with that added onto the overall fully comprehensive amount originated alone we're still still well inside the overall retail production costs.
Great. Thank you very much and thanks for taking my questions.
Our final question comes from Kevin Barker with Piper Sandler Your line is open.
Sorry to follow up with the expenses again, but.
When I look at your.
Your guidance for production income.
With the gain on sale and originations and then Tim.
Timna servicing continues and you back out the fair value of the MSR.
We have about a 20% decline in revenue.
And you're saying the expenses are going to be flat to maybe up.
That would indicate a pretty pretty strong.
Decline in.
Being profitable I mean, you mentioned that you're going to be.
You know fairly I don't want for words in your mouth, but fairly profitable in the first quarter.
What is your definition of being.
Profitable or.
Or your comments around how properly youre going to be.
Relative to some of the guidance that's out there how would you view that profitability.
So depending on how you look at things I guess my perspective real quick is I don't think Youre models correct in some of the.
Analysis Youre, putting together there.
We will be highly profitable even if you think originations decline as we talked about as I guided if we.
Hit our guidance will be highly profitable is how I think about it what's highly everyone has a different definition, but.
I guess youll see in the first quarter, a lot of success and from our business model.
Per loan basis, we make money not even counting MSR values, which will rise up because we have a very low WAC weighted average coupons, which makes our MSR is extremely profitable as well, but just running the business, which is why focus on we're highly profitable just like we were in the fourth quarter and we were in the third quarter and we have been I think for every quarter.
Yes, and one other piece of it.
We mentioned it earlier that our staffing levels have naturally migrated a little bit lower so on an overall expense basis, and I may have misspoken, a little bit or cost per per loan will go up.
Some of our expenses will go up but because we've managed our head count and how we are hiring rates. Our overall head count is a little bit lower than we expect it to be a little bit lower in the first quarter. So it does match with a lower expense we tend to look at things very Granularly as Matt said, we're looking at it on a per loan basis and how that.
<unk> together with the volume so overall expenses there tends to be a little bit more load per team member in the first quarter and with lower volume that will seem to be higher but overall our expenses because most of our expenses are driven by the number of people we have.
Because we have fewer people at this point than we did in Q3 or Q2.
That overall cost will be a little bit lower as well.
Okay and then.
Our employee count has increased consistently for the last.
I would say nearly four years.
Maybe longer.
Disclosures back then but.
Are you, making a conscious effort to adjust for.
The industry in <unk>.
Demand that's in the market today.
Thanks for the question I'm, making a conscious effort to run the business as successful as possible. So no. We're not cutting people, we're not like everybody else and so you can get confidence that we will run the business will be highly profitable youll see the numbers.
The board and so are.
Our people.
We hired we hired a lot so far this year will continue to hire.
We will continue to grow and succeed and excel in our business platform and the numbers will continue to come through very strong. Besides in the earnings but also in the dividend.
It was very strong as well so we feel really great about the business and we're not we don't lay off like other companies and we don't have the need to because of our cost originate our technology is superior to our competition and youll see that in the numbers once again as you've seen for the last year and Youll continue to see going forward.
Thank you. Thank you very much thanks for taking my questions.
That will wrap up the Q&A portion I'd like to turn the call back over to Matt <unk> for closing remarks.
Yes, well. Thank you guys all for the questions and the feedback. We appreciate you and we're looking forward to another great quarter in 2020 to the first quarter and actually hopefully have in one of our best years ever once again, thanks for the time and look forward to talking to you guys next quarterly call.
This concludes today's conference call you may now disconnect.
Please wait the conference will begin shortly.
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