12 unchanged sentences
While the U.S.
−Removed: federal government and the Federal Reserve (the "Fed") have taken actions to reduce the negative economic impact of the Pandemic, as described in our Executive Overview-Trends and Recent Market Impacts , the extent to which these actions will mitigate the short-term and long-term negative impacts of the Pandemic on the U.S.
+Added: federal government and the Federal Reserve (the "Fed") have taken actions to reduce the negative economic impact of the Pandemic, the extent to which these actions will mitigate the short-term and long-term negative impacts of the Pandemic on the U.S.
economy, financial markets and our business is unclear, and the drop in the level of U.S.
2 unchanged sentences
and global economic activity due to the Pandemic has resulted in severe financial market dislocations, varying degrees of illiquidity among fixed income assets, and a significant increase in market volatility, and such events may recur, persist or worsen.
−Removed: The economic and financial market turbulence resulting from the Pandemic negatively impacted our results of operations and our tangible net book value during the first quarter and could continue to negatively impact our business.
+Added: The economic and financial market turbulence resulting from the Pandemic negatively impacted our results of operations and our tangible net book value and could continue to negatively impact our business.
Each of the "Risk Factors" described in our 2019 Form 10-K could be materially impacted by conditions resulting from the Pandemic.
1 unchanged sentence
however, you should review each of the risk factors described in our 2019 Form 10-K carefully in light of the Pandemic and related developments.
−Removed: Because the direct and indirect impacts of the Pandemic and related developments are uncertain and depend on future events, they may also affect our operating and financial results in a manner that is not presently known to us or that we currently do not expect to present significant risks.
+Added: the direct and indirect impacts of the Pandemic and related developments are uncertain and depend on future events, they may also affect our operating and financial results in a manner that is not presently known to us or that we currently do not expect to present significant risks.
Model and forecast risks - The Pandemic and its impact on the U.S.
28 unchanged sentences
An increase in prepayments can negatively impact our net interest margin and tangible net book value, which could be material.
−Removed: Over the near term, we anticipate that social distancing, operational headwinds and negative credit conditions arising from the Pandemic are likely to disrupt housing turnover, mortgage originations and refinance activity.
−Removed: These conditions could mitigate an increase in prepayment activity despite the current record low interest rates.
−Removed: However, the extent and duration of any such mitigation is uncertain, and prepayments could materially exceed our expectations.
−Removed: Furthermore, over time, we expect that prepayment activity for much of the mortgage universe will increase as these conditions abate and lenders become increasingly willing to lend.
−Removed: Additionally, technological advances and changes to GSE underwriting requirements, potentially implemented in part or in whole in response to the Pandemic, could lead to materially faster prepayments.
−Removed: It is also possible that after the extended forbearance periods offered by the GSEs, which may extend up to 12 months, borrowers may be unable to resume monthly payments leading to a larger scale of buyouts of delinquent loans from mortgage pools by the GSE's than we anticipate.
+Added: Mortgage rates have declined to historic lows and could continue to decline.
+Added: It is also possible that after the Pandemic induced extended forbearance periods offered by the GSEs, which may extend up to 12 months, borrowers may be unable to resume monthly payments leading to a large scale buyouts of delinquent loans from mortgage pools by the GSE's.
+Added: Additionally, technological advances throughout origination channels and changes to GSE underwriting requirements, potentially implemented in part or in whole in response to the Pandemic, could increase and/or accelerate the pace of mortgage origination activity.
+Added: Any one of these factors could lead to materially faster prepayments.
Furthermore, since prepayment models were not designed to incorporate the unique circumstances associated with the Pandemic, they may be less predictive of prepayment activity, hindering our ability to accurately forecast prepayment rates.
8 unchanged sentences
Hedging strategies are complex and we use analytical models to help manage our risk.
−Removed: Since analytical models may be less reliable given the unprecedented events stemming from the Pandemic, there is an increased risk that our hedging strategies may be less effective, or even ineffective, which could materially adversely affect our financial position and tangible net book value.
+Added: Since analytical models may be less reliable given the unprecedented events stemming from the Pandemic, there is an increased risk that our hedging strategies may be less effective, or even ineffective, which could materially adversely affect our financial
+Added: position and tangible net book value.
There are also many uncertainties associated with the Pandemic and the short and long-term economic and fiscal tolls are difficult to predict.
12 unchanged sentences
Human capital and business resiliency risks - Since mid-March, all of our workforce has been working remotely consistent with our business continuity plan.
−Removed: Stay-at-home orders in effect in the states and localities where our workforce is located may be extended in whole or in part for several additional weeks or months.
+Added: Stay-at-home orders and other Pandemic related restrictions in effect in the states and localities where our workforce is located may be extended in whole or in part for several additional months.
The strain on our workforce and our business operations caused by this shift in our operating environment may result in business interruptions, reduced productivity and other adverse impacts on our operations.
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.