Quarterly report [Sections 13 or 15(d)]

WAREHOUSE LINES OF CREDIT, NET

v3.25.1
WAREHOUSE LINES OF CREDIT, NET
 3 Months Ended
Mar. 31, 2025
Line of Credit Facility [Abstract]  
WAREHOUSE LINES OF CREDIT, NET
NOTE 9—WAREHOUSE LINES OF CREDIT, NET
Warehouse lines of credit consisted of the following at March 31, 2025 and December 31, 2024.
(in thousands)
Outstanding Balance as of
Master Repurchase Facility Agreement Facility Size as of March 31, 2025
Current Agreement Maturity Date
 March 31,
2025		 December 31,
2024
$250 million(1)
1/14/2026 $ 177,280  $ 84,257 
$250 million(2)
8/26/2025 184,220  164,382 
$400 million(3)
8/11/2025 244,041  287,631 
$60 million(4)
5/31/2025 29,674  99,084 
$140 million(5)
5/31/2025 56,969  — 
$200 million(6)
9/2/2025 90,143  89,597 
$350 million(7)
9/11/2025 84,398  245,821 
$300 million(8)
N/A 69,213  201,778 
$200 million(9)
10/1/2025 89,417  83,410 
$75 million(10)
N/A 12,569  22,216 
$350 million(11)
11/19/2025 184,631  138,201 
$200 million(12)
11/22/2025 4,088  1,076 
1,226,643  1,417,453 
Debt issuance costs
 (2,516) (2,890)
Warehouse lines of credit, net
 $ 1,224,127  $ 1,414,563 
______________________________
(1)The variable interest rate is calculated using a base rate tied to the Secured Overnight Financing Rate (“SOFR”).
(2)The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This line of credit requires a minimum deposit of $1.3 million, included in restricted cash.
(3)The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This facility requires a minimum deposit of $2.0 million, included in restricted cash.
(4)The variable interest rate is calculated using a base rate plus SOFR, with a floor of 2.15% to 3.50%, plus the applicable interest rate margin. This facility requires a minimum deposit of $250,000, included in restricted cash.
(5)The variable interest rate is calculated using a base rate plus SOFR, with a floor of 0.60% plus the applicable interest rate margin.
(6)The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.40%, plus the applicable interest rate margin.
(7)The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.50%, plus the applicable interest rate margin.
(8)The variable interest rate is calculated using a base rate tied to SOFR, plus the applicable interest rate margin. This facility’s maturity date is 30 days from written notice by either the financial institution or the Company.
(9)The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.75%.
(10)The interest rate on this facility is 3.375%. This facility is used for GNMA delinquent buyouts. Each buyout represents a separate transaction that can remain on the facility for up to five years.
(11)The variable interest rate is calculated using a base rate tied to SOFR with a floor of 0.50%, plus the applicable interest rate margin.
(12)The variable interest rate is calculated using a base rate tied to SOFR with a floor of 3.00%, plus the applicable interest rate margin.
The weighted average interest rate for warehouse lines of credit was 5.9% and 6.7% at March 31, 2025 and December 31, 2024, respectively. All warehouse lines of credit are collateralized by underlying mortgages and related documents. Existing balances on warehouse lines are repaid through the sale proceeds from the collateralized loans held for sale. The Company had cash balances of $36.1 million and $8.3 million in its warehouse buy down accounts as offsets to certain lines of credit at March 31, 2025 and December 31, 2024, respectively.
The agreements governing the Company’s warehouse lines of credit contain covenants that include certain financial requirements, including maintenance of maximum adjusted leverage ratio, minimum net worth, minimum tangible net worth, minimum liquidity, adjusted pre-tax net income and limitations on additional indebtedness, dividends, sale of assets, and decline in the mortgage loan servicing portfolio’s fair value. At March 31, 2025 and December 31, 2024, the Company was in compliance with all debt covenants.
The Company has an optional short-term financing agreement between FNMA and the lender described as “As Soon As Pooled” (“ASAP”). The Company can elect to assign FNMA Mortgage-Backed Security (“MBS”) trades to FNMA in advance of settlement and enter into a financing transaction and revenue related to the assignment is deferred until the final pool settlement date. The Company determines utilization based on warehouse availability and cash needs. There were no outstanding balances as of March 31, 2025 and December 31, 2024 on the ASAP financing.
NOTE 10—NOTES PAYABLE
The Company has an agreement for a revolving note from one of its warehouse banks, which it can draw upon as needed. The agreement currently expires in August 2027. Borrowings on the revolving note are collateralized by the Company’s GNMA MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the SOFR rate plus the applicable margin, with a SOFR floor of 0.50%. The revolving note also has an unused facility fee on the average unused balance, which is also paid quarterly. The unused facility fee is waived if the average outstanding balance exceeds 50% of the available facility. The revolving note has a committed amount of $135.0 million and the agreement allows for the Company to increase the committed amount up to a maximum of $200.0 million. The Company has the option to convert the outstanding balance of the revolving note into a term note at its discretion. At March 31, 2025 and December 31, 2024, the Company had $71.0 million in outstanding borrowings on this credit facility.
The Company has an agreement for a revolving note of up to $150.0 million from one of its warehouse banks, which it can draw upon as needed. The agreement currently expires in September 2027. Borrowings on the revolving note are collateralized by the Company’s FHLMC MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the SOFR rate plus the applicable margin, with a floor of 0.50%. At March 31, 2025 and December 31, 2024, the Company had $80.0 million in outstanding borrowings on this credit facility. Subsequent to March 31, 2025 this facility was amended and availability increased to $250.0 million.
The Company has an agreement for a revolving note, which it can draw upon as needed. The agreement currently expires in September 2028. Borrowings on the revolving note are collateralized by the Company’s FNMA MSRs. Monthly interest on the outstanding balance is calculated using a base rate tied to the SOFR rate plus the applicable margin, with a SOFR floor of 2.00%. The revolving note has a committed amount of $250.0 million and the agreement allows for the Company to increase the committed amount up to a maximum of
$400.0 million. At March 31, 2025 and December 31, 2024, the Company had $189.0 million and $149.0 million, respectively, in outstanding borrowings on this credit facility.