CLGX
#It's a couple of factors.
Expenses should trend down in the back half of the year, that's number one.
And number two, it's obviously we've got FNC, which is a higher margin area for more of the second quarter than the first quarter.
And then we have ---+ we have basically our cost management programs benefits as well kind of progress.
Those are the three areas.
No.
It runs through ---+ it still runs through the balance of the year.
It comes down in the fourth quarter, assuming everything goes to plan, and so far so good.
So, we still have ---+ there are still into integration-related costs, everything that's significant undertaking we are dealing with through our major partners there.
We have to also manage to their needs as well.
But everything is going really well.
I think we were, as <UNK> mentioned, we're focused on doing smart deals.
So, nothing major necessarily on the horizon at this point in time.
We are pretty busy right now integrating what we have.
But certainly, <UNK> has done a great job of expanding our powder and I think we have a tremendous capital structure now, so if something really synergistic or valuable appears, we might be able to capitalize on it.
But as of now we are in the integration mode.
If we look at anything, it will be probably product extensions and stuff.
I don't think we are, at this point at least, I don't want to say never or no to anything, but we don't have anything that's significant in our pipeline.
But just around our product offerings are product extensions.
Thanks <UNK>.
I'm sorry can you repeat that, <UNK>.
In terms of the saves themselves, we included the $30 million as part of the full year, we are progressing against that.
And the way I would look at a month of segments, it's pretty equally distributed between the two segments in corporate.
In terms of the investments, those are coming along as planned.
I think you can work with <UNK> on the details.
I think in terms of roughly just some of those as we articulated in the earnings release relate to areas like compliance and information and security, that apply broadly across the Company.
I would say the biggest chunk that would be specific would be the VSG-related, which is obviously all ---+ probably 40% of the total would be related to that.
I think the purchase market is starting to stabilize to some extent.
There's going to be always puts and takes, and the refi activity that's going to be determined by rates, and we don't think ---+ well, there's a lot of people saying that the Fed is not going to touch the rates, but there is also thinking that the Fed could make a rate change at the end of the year.
So, refis are going to be dependent upon that.
But we see solid footing on purchases that's going to only increase with new homes coming in and also single-family renters moving into homes.
I don't necessarily worry about it.
I think with the current underwriting criteria, it's pretty tight.
So, if there's anything, I don't think it's a question of affordability, it is probably going to be a question of how credit capacity is being viewed by the lenders and regulators.
So that's still ---+ has to settle down.
FNC has over 100 lender clients, and those tend to be ---+ there are some large clients, but they tend to be more clustered in the mid and what we call the mid-and-mass market.
That's an area that we've invested behind the last maybe three or four years to build out our footprint in.
It's very symbiotic from that standpoint.
I think where the opportunity lies for us is some of the mid-mass market clients that may or may not use some of our other data sets like flood or credit, we think we can package through the FNC platform more of our content, and that would be, again, a 2017 type ---+ because that requires some technology and some distribution enablement.
No.
I think that was just a ---+ I think you're referring to the FDC [consent agree] towards helping realty track and that seems going according to plan, and I don't think we've had any significant impacts from that.
It's a very minor part of our focus in the market.
Its by product.
What we talked about was the total addressable market that's the $4 billion out there, but we don't certainly cover everything.
But when it comes to AVMs, we have a pretty large share out there with our own product and also with white label products and private label products out there.
So, there is still opportunity in the [hot-to-go pockets], the front end of the appraisal market is a wide open market.
That's where everybody ---+ you can have solutions that control the appraiser's desktop and help them to funnel information into a entity like FNC to go into the lenders.
So, there are area pockets in the areas of growth where we could really address.
It's tough to put a market share out there.
We are trying to figure out all these things, and I think once the integration for VSG is done, we will have a better feel for what other big pieces of the market that we cover, what we want and what do we consider to be longer-term market share opportunities for us.
That's excluding FX.
Correct.
We've factored in a modest ---+ the fact of the matter is that the USD ---+ our viewpoint is that it's trending a little bit stronger.
I don't think it's a material change, but it's a little bit more of a drag than we thought.
As a settlement service provider, we have very strong connections with our lenders out there.
And if they switch software, usually we work with them and ---+ to write databases and data maps to include our products in their offerings out there.
But there's two areas that we work with.
One is with the lenders themselves would request it, if they're switching it from one port over another.
The other area is, we also work with the providers out there.
I think of credit, for example, it's kind of like the deep factor standard with any origination system that you would touch.
So, we do try to work with them on placing our products with good placement.
To the extent that it's incremental in terms of installation, yes.
But most of these things, if they're switching from one provider to another, we are already there.
I think what that meant was standards in the past couple of years were not established out there.
And now we are seeing a little bit, especially with TRID being behind us for a while and some of the other things that they have relationships with.
Whether it's CFAD or other regulatory agency.
They know what's expected of them.
Prior to this, lenders had to make their own guess, so as they do it, there was a lot of information to be gathered about knowing your customer, so to speak.
Now, they know clear standards have been established.
That was the shift a little bit.
I think in the long-term there will be tailwinds for us, because of all the regulatory impacts, because the kind of things that they have ---+ the lenders have to comply with, now it's a lot more than what they had before.
And a lot of those things are going to be served by providers such as us.
Yes.
I think <UNK> can parse out the ---+ there isn't lower pricing.
There could be some mix differences, because within our credit volumes we have auto and we have lenders.
There is some different mix, it could be a mix issue.
But we have not had a price change or price decline.
And just to add to <UNK>'s comments, we are going to have integration costs associated with FNC, but also we will still have some real estate costs as a result of our productivity program there as we are consolidating footprints that will hit in the second half of the year.
I don't think they are one-time costs, <UNK>.
I think the costs we talk about are things like compliance and InfoSec and I think those were in the same boat probably more so than our competitors because of our scale.
We have to invest in ongoing and compliance.
I think that's a strength as I think one of the discussions earlier was about compliance and a regulatory environment.
I think it's our strength and clearly we've benefited a lot the last couple of years, it's like the quality where people are looking at quality vendors and we are certainly one of them, so we have to invest in those areas.
I don't think those are one-time.
The integration stuff is lumpier in one-time, but the InfoSec, that kind of stuff is the cost of doing business.
It may be a quarter that's a little heavier than others, but that's an ongoing in my opinion.
We are focused significantly on raising that growth rate.
As I mentioned, we have a lot of levers to do it.
We are going to fight like nobody's business to get those growth rates up in the second half of the year.
And I think we had a pretty good selling season towards the back half of the second quarter.
Which gives us some confidence level, but it's a little bit uncertain (inaudible) the people are ---+ I think we lose track of the fact that a lot of our clients are spending hundred and millions of dollars on a regulatory environment, and that's sapping in their ability to look at proactive and other spending areas that traditionally they would've done so.
I think having said all that, we have a good product array coming out in the market, we have good traction on our new products and we think that growth rate should come up.
But we will prove that over the second half of the year.
Yes.
That's reasonable, it's about $0.04 or $0.05.
