Warehouse Borrowings |
Note 5.—Warehouse Borrowings
The Company, through its subsidiaries, enters into Master Repurchase Agreements with lenders providing warehouse facilities. The warehouse facilities are used to fund, and are secured by, residential mortgage loans that are held for sale. In accordance with the terms of the Master Repurchase Agreements, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings which are included in restricted cash in the accompanying consolidated balance sheets.
At December 31, 2013, the Company was not in compliance with a covenant for a warehouse line, however the Company received a waiver.
The following table presents certain information on warehouse borrowings for the periods indicated:
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Balance Outstanding
at December 31, |
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Maximum
Borrowing
Capacity |
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Allowable
Advance
Rates (%) |
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Rate
Range (1) |
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2013 |
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2012 |
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Maturity Date |
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Short-term borrowings: |
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Repurchase agreement 1 |
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$ |
75,000 |
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$ |
50,794 |
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$ |
31,600 |
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90-98 |
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1M L +3.5 - 6.5% |
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June 20, 2014 |
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Repurchase agreement 2 |
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40,000 |
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19,493 |
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19,780 |
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75-98 |
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Prime + 1-6% |
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July 1, 2014 |
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Repurchase agreement 3 (2) |
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50,000 |
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15,592 |
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16,554 |
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80-98 |
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1M L +3.5 - 4.0% |
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March 27, 2014 |
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Repurchase agreement 4 (3) |
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100,000 |
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33,755 |
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39,670 |
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95 |
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BR +3.5-4.0% |
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September 17, 2014 |
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Total short-term borrowings |
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$ |
265,000 |
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$ |
119,634 |
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$ |
107,604 |
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- (1)
- 1 ML represents One-month LIBOR. BR represents the lender defined base rate.
- (2)
- In September 2013, at the request of the Company, the maximum borrowing capacity was reduced from $75.0 million to $50.0 million. In March 2014, the maturity was extended to June 2014.
- (3)
- In January 2014, the maximum borrowing capacity increased from $100.0 million to $125.0 million.
The following table presents certain information on warehouse borrowings for the periods indicated:
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For the year ended
December 31, |
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2013 |
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2012 |
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Maximum outstanding balance during the year |
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$ |
197,455 |
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$ |
159,669 |
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Average balance outstanding for the year |
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111,335 |
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79,707 |
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Underlying collateral (mortgage loans) |
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124,688 |
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112,103 |
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Weighted average rate for period |
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4.02 |
% |
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4.20 |
% |
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