I spoke with Mr Justin Mosio, their IR Guy and got the following answers, which I am paraphrasing:
1. The apparent substantial increase in REO properties was due to the change in the way properties were listed. In the new list, properties which are available and properties in escrow are listed. In the old list, properties in escrow were not included. My impression is that the change was needed since a large number of in escrow properties fall out.
2. There is no present intent to leave or enter new market or business areas.
3. The focus of the company will be to originate and sell mortgages, and they are opening new offices/locations to do so.
With the very turbulent existing conditions and uncertainties, the company is unwilling to provide any guidance with respect to growth or profitability.