Good day, ladies and gentleman and welcome to the Fourth Quarter and Full Year 2011 Earnings Conference Call. [Operator Instructions] As a reminder, the conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today Mr. Stan Kurland, PMT's Chairman and CEO. Please proceed.

Thank you. Before we begin, please take a moment to review the forward-looking disclaimer statement on Slide 2. Let's now turn to Slide 3 and review PMT's fourth quarter highlights. The fourth quarter benefited from a substantial leap in the activity of our correspondence mundane business. PMT's corresponding capabilities position the company at the forefront of the emergence of non-bank financial intermediaries positioned to address the changing mortgage landscape. The growing contribution of this segment clearly demonstrates the validity of our strategy to build and develop a correspondent lending business. The combination of the increase in correspondent volume and strong investment portfolio activity generated very good earnings performance. Our fourth quarter earnings per share have grown by over 60% from the comparative quarter a year ago and sequentially are strong given the third quarter results were driven primarily by considerable investment gains. We are pleased with both the level and composition of the fourth quarter results and hope to continue the strong performance into 2012. For the fourth quarter PMT reported earnings per diluted share of $0.70 with an annualized return on equity of over 15%. The board of directors increased the dividend by 10% to $0.55 per share for the quarter. During the quarter PMT raised $8.7 million of equity to support the dramatic growth in our correspondent lending business. With fundings of almost $1 billion and locks of over $1.3 billion, additional capital was necessary to continue growing this business. During the quarter we supported our growth with the reallocation of capital from our distressed mortgage business. We also expanded PMT's borrowing capacity with an addition of $375 million in correspondent credit facilities bringing PMT’s total secured credit facilities to over $1 billion. This striking growth led to pre-tax gains from the correspondent segment of $7.4 million. Our…

Thank you Stan. For the fourth quarter PMT reported net income of $19.6 million or $0.70 per diluted share on net investment income of $39.1 million. Interest income increased 23% over the third quarter as modifications have increased the size of PMT’s portfolio of performing loans and the amount of correspondent loans earning net interest income while in inventories has increased. Correspondent lending accounted for over 19% of net investment income mostly due to net gain on mortgage loans of $7.4 million. Valuation gains in our investments were 14.3 million down from 23.8 million for the third quarter. Lastly as mentioned earlier the annualized return on average equity for the quarter was over 15%. The Board of Trustees has approved a dividend of $0.55 per share for the quarter, a 10% increase over the third quarter. This dividend represents an annualized yield of over 13% based on the December 30 closing stock price. I would like to spend a little bit of time discussing PMT’s valuation changes as they relate to our home loan investments. Turning to Slide 8 you can see the breakdown of our home loan investment income. As I have done in previous quarters, I would like to discuss the composition of this line item. Of the total $19.9 million in changes reflected in loans carrying values, $14.3 million was due to valuation changes and $5.5 million was due to gain by this position. Because we account for our portfolio of mortgage loans held for investment at fair values, changes in fair value are included in the results of our operation each period. Theoretically, if the entire portfolio was sold in its entirety on the first day of new quarter, we would report no gain or loss on that sale. All other factors held constant, non-performing loans…

Thanks Anne. Let’s now turn to Slide 12 to discuss our correspondent lending business in greater detail. Our correspondent lending segment funded $991 million in prime loans during the fourth quarter compared to $211 million in the third quarter. Conventional conforming prime loans was the leading loan product during the quarter representing over 1/2 of all fundings. For the month of January 2012, fundings were 450 million with locks eclipsing the $600 million mark. We are targeting to reach approximately 1.8 billion in locks for the first quarter of which 1.1 billion are estimated to come from conventional and jumbo loans. The company raised $8.7 million in equity through PMT’s controlled equity offering program in the fourth quarter. This equity was added to support the dramatic growth of the correspondent lending business. Capital was also allocated from liquidations of our distressed whole loans to further support this growth. As the business continues to expand we will continue to allocate capital aimed at providing the highest return to our shareholders. Let’s now take a closer look at the jumbo and conventional fundings on Slide 13. On this slide we segregate the conventional and jumbo loans from our FHA fundings. From an economic standpoint our conventional and jumbo production is the primary source of value in PMT's correspondent lending segment. As we discussed previously PMT has a relationship with PLS, PMT's servicer who is also a Judy May [ph] seller servicer. And PMT enjoys a servicing fee and the net interest income for the period we hold these loans. Also on our product menu that includes FHA and VA loans or correspondent customers is critical to our growth strategy. By offering a full product compliment including FHA and VA mortgages, we are able to establish relationships with more correspondent lenders in that…

Thanks David. We would like to thank all of our current and future shareholders for listening to this earnings presentation. I would like to invite all those investors who have questions to please submit them to our Investor Relations department by e-mail or call us directly. If we receive a substantial number of questions we will post a question-and-answer document on our website. We thank you again for your time.

Ladies and gentlemen, that concludes today's conference. Thank you for your participation. You may now disconnect.