Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Dave Rochester.
Greg Standlea
Hi Dave.
Dave Rochester - Friedman, Billings, Ramsey & Co.
Hi guys. Thank for taking my questions. Just real quick on a liquidity position: With the $60 million line, you said you have $49 million that leaves you $11 million. Did I get those numbers right?
Greg Talbott
That's correct. The line is presently at $60 million.
Dave Rochester - Friedman, Billings, Ramsey & Co.
Okay. And in terms of the DBS portfolio, have you guys ultimately decided at this point to just allow that to run off completely?
Greg Talbott
Our current strategy is to allow that to generally to run off. In isolated instances, there may be a need to put some additional dollars into the portfolio to protect positions, but those situations will be very few and far between. So, yes, we are in a risk reduction mode with respect to DBS portfolio and allowing that to pay down upon proceeds to retire debt.
Dave Rochester - Friedman, Billings, Ramsey & Co.
Okay. And in terms of absorption rates, you said the average is about two homes per month in your markets, and I would imagine that is comparable to the one and a half homes, if I am getting that number right from the last quarter. So it sounds like you are seeing a modest improvement, but we saw marks on the portfolio go down pretty significantly in the NPAs, and then we had some new loans coming into special mention substandard. So, at what level do we need to get to an absorption to see that flow into those lower grade stop and ultimately reverse?
Greg Standlea
Dave, I think we need to see absorptions in the 3.5 to 4 per month.
Dave Rochester - Friedman, Billings, Ramsey & Co.
Okay. And at this point, you said you had seen some recent upticks as early as or as recent for the last few weeks. At this point, I know that it is too early to call anything a trend. But what are you seeing at this point, are you seeing near that range, three, maybe four, homes? Or are we still around that two mark?
Greg Standlea
I am pretty encouraged the last few weeks. And it's too early to actually put numbers to it. But we've have a number of builders report to us because we get reports weekly on having sales. Now sales is not a closing, of course -- but a number of the projects that been a lot of sales are reporting three and four sales per week. And that really goes to how aggressive they price the product.
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