Paul Elenio
CFO at Arbor Realty Trust
The 60 plus delinquent loans or NPLs were approximately $652,000,000 this quarter compared to $625,000,000 last quarter due to approximately $128,000,000 of loans progressing from less than sixty days delinquent to greater than sixty days past due and $153,000,000 of additional defaulted loans during the quarter, which was largely offset by 134,000,000 of payoffs and modifications and $120,000,000 of loans taken back as REO. The second bucket consisting of loans that are less than sixty days past due came down to $167,000,000 this quarter from $319,000,000 last quarter due to $157,000,000 in modifications and runoff, $128,000,000 of loans progressing to greater than sixty days past due, which was partially offset by approximately $133,000,000 of new delinquencies during the quarter. And while we're making good progress in resolving these delinquencies, at the same time, we do anticipate that we will continue to experience new delinquencies, especially in this current rate environment. In accordance with our plan of resolving certain delinquent loans, we have foreclosed on some real estate and we expect to take back more over the next few quarters as Ivan guided to earlier. The process of taking control and working to improve these assets and create more of a current income stream takes time, which is even more challenging in this climate. Visually, we have been very successful over the last few quarters in collecting back interest owed when we would modify certain loans. A good portion of our remaining delinquencies are more of a heavy lift through the foreclosure and repositioning over time, which will likely result in less back interest being collected going forward on workouts.