Nursing Department, which we continue to resolve those NPL resolutions at favorable gains on all of our NPA assets, which are comprised of the NPL loans as well as the REOs. The table to the right on page seven shows our loans held for investment portfolio, which include both the amortized cost loan portfolio and the fair value loan portfolio. And it shows the total year-over-year non-performing loan valuation allowance that we have for non-performing loans. As of June 30th, the amortized cost loan portfolio had a $5.1 million CECL loss reserve, and the fair value loan portfolio had a $24.3 million valuation adjustment loss allowance for a combined total portfolio valuation loss allowance of 42 basis points. Remember, both of those valuation adjustments are required under US GAAP. The unrealized loss valuation adjustment on our non-performing FBO loans under US GAAP represents the market value for which Those loans could be sold in a secondary market. However, we do not plan on going out normally in the secondary market and the whole loan market and selling or not performing loans anywhere at a discount because we've got a history of producing net gains on their product. Page 8 shows our CECL loan loss reserve activity. The CECL reserve, again, keep in mind, is only applicable to our amortized cost loan portfolio, which is dwindling down as it continues to pay down. and it does not include the loans being carried at fair value. The CESA reserve as of the end of the quarter was 5.1 million or 28 basis points of the outstanding amortized cost HFI portfolio. On page nine, you see our real estate owned REO activity. The graph to the left shows our ratio of REO assets to total HFI loans and that ratio has been relatively stable over the last 12 months on a year-to-year basis. In the table to the right, we show all of our REO activity. It's broken out. The top half of the table reflects the gain or loss from recording new REOs in the period, and it segregates that new REO activity between being sourced from our amortized cost loan portfolio and our failed value loan portfolio. And for Q2 of this year, there was a $5.4 million gain on transfers of non-performing loans to new REOs compared to $7.1 million gain year-over-year in the second quarter of 25. The bottom half or second half of that table presents the gain or loss activities on the existing REOs subsequent to the initial recording of the REO, which reflect the lower of cost or low-com accounting. In Q2 of 26, there was a $3 million loss on REO activities compared to a $1.4 million loss year-over-year in second quarter of 25. So if you take those two sections combined, the new REO activity as well as existing REO activity, it presents a holistic picture of our overall REO profit and loss activity for the period, which for second quarter of this year was a net gain of 2.4 million compared to a net gain of 5.7 million for Q2 of 25. And page 10 shows our non-performing loan resolution activity. For Q2, we resolved almost $91 million in UPB of non-performing loans, and we had total resolution dollars recovered, which includes all the past due net contractual interest 6.9 million or 7.7 percent over and above the UPV compared to the resolution of 90 million dollars of UPV of non-performing loans with total resolution dollars recovered of 8.7 million or 9.7 percent year-over-year in second quarter 25. If you want to see what the amount recovered was over and above UPV and contractual interest, meaning by pure gain, there's a net gain column in those tables. Net gain column over and above recovering all UPB and past due contractual interest was for second quarter of this year, 2.5 million or 2.7% compared to a net gain of 2.8 million or 3.1% year over year for second quarter of 25. Then on page 11 shows our durable funding and liquidity position at the end of the quarter. Total liquidity as of June 30th was 240 million. That's comprised of about $76 million in cash and cash equivalents and another $164 million that we had in available liquidity and unfinanced loan collateral. The available warehouse line capacity at the end of the quarter was just under $662 million with a maximum line capacity of $975 million. So plenty of available capacity on our existing warehouse lines. In Q2, as Chris mentioned, we issued two securitizations. We issued the 2026-2 security. with a little over $398 million in securities issued. And we also did a 2026 MC2 security, which is comprised of non-performing loans, where the loans that were sold into the trust with Velocity retaining a $30 million trust certificate of a CMBS security from that trust. And that MC2 security generated a little over $11 million in net proceeds for us. Our recourse debt-to-equity ratio at the end of the quarter remained low at 1.2 times. and our total debt equity, if you include all the non-recourse securizations, was at 9.7 times at the end of the quarter. With that, I'll turn it back over to Chris for the Q2 financial recap.

Thank you, Mark. On page 12, just an overview of things going forward. We think the market is healthy and doing well. Credit is stable and we like the performance there. Capital markets are very supportive and wide open, which is great for our business. From an earnings perspective, we think we're going to continue to achieve above 3.5% NIM and good growth going forward. So we like the way things are lining up for the rest of this year and into 27. So with that, that concludes our prepared remarks, and we'll open it up for questions.

Thank you. If you have a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you wish to remove yourself from the queue, simply press star 1 again.

One moment please for your first question.

Your first question comes from the line of Chris Muller of Citizens Capital Markets. Your line is open.

Hey guys, thanks for taking the questions and congrats on another really solid quarter here. So I guess the government-insured multifamily originations jumped in the quarter. Can you just refresh my memory on this product, and will we see more of this going forward, or was 2Q an outlier with that?

Sure. Hi, Chris. Yes, so that is our Century Health and Housing division that produces HUD multifamily loans. Those are very large in terms of average UPB and tend to be very lumpy. I would say in prior years with the way the Fed moved rates around, their volumes kind of slowed down for a while. Things have kind of stabilized there and normalized, I would say, in terms of market rate expectations. And so now we're starting to see better traction. It was a nice quarter for them, but their pipeline looks very robust, and we expect to see levels kind of like this going forward. So I don't think it's necessarily an outlier. I think it'd be something similar to that on a go-forward basis.

Got it. That's helpful. And then the $222 million of loan sales, I assume that's separate from the NPL securitization. And if that's true, can you just give Some details on those sales, just what percent of par and anything you could provide would be helpful.

Sure. Mark, do you want to cover those?

Sorry, I had to take my phone off mute.

What were the $222 million in loan sales that you're referring to, Chris?

I was looking at the bridge portfolio. I'm trying to see what slide that was.

Slide 19.

Okay, so that's part of the actual MC2 security. So again, as we said, the MC2 security, we actually sold the loans into the trust. So unlike previous REMIC securitizations where when the loans go into the trust, we have a consolidation accounting where the loans stay on our books because we have to consolidate that trust as a VIE as part of Velocity. The MC2 security was structured in such a way where We are not the primary beneficiary of that 2026-MC2 trust. So the loans that were transferred to the trust come off our books. They're actually sold into the trust. That's why now we have a, I mentioned we retained a $30 million security at CMBS. From all of our other securitizations, we don't really have a security because the trust consolidates on our books, right? So the loans stay on our books and the certificates that are issued to the outside investors just become debt because it all consolidates within Velocity. The MC2 trust does not consolidate on Velocity's books, so the loans that were transferred into it are actually considered sales. They actually came off our books, and because we retained an interest in that trust, we now have a CMBS security. On the balance sheet, you'll see it'll say retained interest in securitization.

Got it.

That's what the loan sales are. It's all part of that MC2 trust.

Yeah, and then I would add the century activity on top of that.

Right, right, right. Because you have about $136 million in the MC2, and you had $80 or $80-some million on the century deal as a helper sale loan that was sold to Jenny, correct?

Got it. That clears it up, and that was all very helpful. Appreciate you guys taking the question today, and congrats again on another really solid quarter. Thanks.

Thanks, Chris.

Your next question comes from the line of Doug Harder at BTIG. Your line is open.

Thanks. I think you mentioned that we expect a little bit faster loan growth in the second half. Wondering if you could size that?

Wondering if we could what, Doug? I'm sorry, tailed off.

Size that change in pace and loan growth.

Oh, got it. Size it, yeah. We don't give formal forward guidance, but I can say that July was... Best month we've had in terms of submissions. So we've seen volume really pick up just recently in the last 45 days. And that's kind of typical in terms of seasonality. The second half of the year tends to be really good for us. So definitely think we'll beat last year's volumes. But we don't have a formal guidance in terms of how much that looks like or what size that is.

Great. And talk about how you're thinking about capacity to continue to grow the balance sheet. Obviously, you're retaining capital and compounding that way, but how do you think about the ability to kind of be more efficient with the current balance sheet?

Yeah. It's something that we keep an eye on, and it's largely driven by how much growth we achieve. The portfolio obviously throws off nice cash flows, but to your point, depending on how aggressively we grow, we will need to access more capital potentially, and we have a forward plan on that, and we update that regularly. Fortunately, the markets are all open to us right now, both on the equity and debt side. So I would think as we grow and as we move forward, we will either tap equity or debt markets, depending on where we are and where the best execution is. We won't get much more than 10 times leverage. We are a levered finance company, but don't want to really exceed that. That will probably be somewhat of a governor in terms of whether we raise equity or debt.

Great. Appreciate the answers. Thank you. Sure. With no further questions, that concludes our conference call.

Thank you for your participation. You may now disconnect.