David will go into additional details regarding our strategy of that investments in the performing whole loans that MSR will follow a response from this pool of (indiscernible) and we will continue to pursue additional re-performing whole loan investments going forward.

The second quarter results underscore the strength of PMT’s business model and our ability to capitalize on opportunities as they emerge. Our success is occurring at a time when the mortgage markets appear to be showing signs of stabilizer.

Let’s turn to slide 4, and examine a few of the potentially positive indicators. In the second quarter (indiscernible) signs of stabilization in home prices generally and specifically results in the country, in REO improvement. Indicators of stabilization were evident in the economic data of home side is released in the second quarter in addition to market feedback we received – own REO and third-party foreclosure liquidation process.

A general sense that housing is nearing the bottom seems to be applying the growing consensus among economist, which is (indiscernible) from the negative housing forecast we’ve seen over the last five years. Some of the recent improvement in housing initiatives can be attributed to similar factors that typically a company with strength and (indiscernible). But taken as a whole, it seems that home prices are nearing or have reached the bottom.

The chart on slide 4 shows the change into the index values from the trough in the post year-to-date class cycle from 2007 to present. And you can see that all of the changes in the index are above the trough. Many of these cities have only recently come back above their levels and some are still below year-ago level. However, most of the cities and the pace of our index had either experienced year-to-date increases, entirely separate home value index or have seen levels of price declines flow when compared to year-ago levels.

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