The Company posted a press release earlier today that declared a split-adjusted dividend of $0.16/share, up from the $0.12/share dividend in Q1. While still likely to be a return of capital, the cash flow is certainly there to support the dividend. I would rather see management buyback stock and utilize the available tax losses with the free cash flow, but the dividend payment does give the stock a floor and rewards very patient shareholders.
Most importantly, the Company resolved approximately $4.3 million in REO properties and approximately $4.9 million in loans greater than 60 days delinquent held in securitization trusts. As of June 30, 2008, the Company had 1.18% of loans greater than 60 days delinquent and 0.13% in REO properties as compared to 1.82% and 1.21% as of March 31, 2008, respectively. This kind of performance shows meaningful operating improvement and a continued turnaround.