Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Brian Foran – Goldman Sachs.
Brian Foran – Goldman Sachs
I guess, when I put together all your comments, the different comments you made about pre-provision, and I know there's a lot of moving parts with FTPS and the net interest margin, but it seems like you're talking about pre-provision could be like $700 million next quarter. Is that a reasonable range to think about, or am I double counting somewhere, or some offset that I'm missing?
Kevin Kabat
Well, this quarter, Brian, our core pre-tax pre-provision was 680, and we're not giving guidance on that, but we did indicate that mortgage revenue will be down, obviously. And also the joint venture, there's about $40 million of pre-provision revenue that will go with that. So I don't think you would end up with that number. You wouldn't end up with a 700 kind of number.
Brian Foran – Goldman Sachs
And then on credit the trends were obviously very positive this quarter, in terms of trajectory. I guess, really the only thing to pick at it is the TDR book, and when you talk about a re-default rate of 33%, is that the re-default you've experienced so far? Or is that where it's tracking for a lifetime re-default rate, and if it's the former what does 33% translate to, in terms of lifetime re-default?
Mary Tuuk
Yes, that 33% is the rate that we've experienced pretty consistently since we've begun that program in the latter part of 2007. It's based on looking at 30 days past due and over trends. And we also look at it on a number of different calculations. We'll look at it in terms of overall modified loans. We also look at trends based on loans that are eligible for actual cure based on a prior modification, and as we look at all of the different ways of calculation, we believe that we're absolutely in line with the rest of the industry.
That being said, we would expect that at some point as there is a little bit more aging of the modification activity that you'll see some of that trend reappear in some of our future mortgage trends, but we don't expect that it would be anything out of line with what the rest of the industry is seeing.
Brian Foran – Goldman Sachs
Your reserve coverage and reserve adequacy screens very nicely relative to other regionals right now, and a few of the other banks that are now over 4% are kind of talking about the end of the reserve building process being in sight. Can you just give us a little bit color where you see your reserve building cycle and what the triggers are based on your reserve methodology? What needs to happen for reserve building to come to an end?
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