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Warehouse Borrowings
9 Months Ended
Sep. 30, 2012
Warehouse Borrowings  
Warehouse Borrowings

Note 6.—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 September 2012, the Company, through its subsidiaries, entered into a Master Repurchase Agreement with a new lender providing a $40 million warehouse facility (Repurchase Agreement 5). The interest rate relating to this agreement is one-month LIBOR plus 3.50 % and expires September 2013. Under the terms of this warehouse facility, the Company is required to maintain various financial and other covenants.

 

At September 30, 2012, the Company was in compliance with all financial covenants.

 

The following table presents certain information on warehouse borrowings and related accrued interest for the periods indicated:

 

 

 

Maximum

 

 

 

 

 

 

 

Borrowing

 

Balance Outstanding At

 

 

 

Capacity

 

September 30, 2012

 

December 31, 2011

 

Short-term borrowings:

 

 

 

 

 

 

 

Repurchase agreement 1 (1)

 

$

40,000

 

$

35,612

 

$

20,163

 

Repurchase agreement 2 (2)

 

30,000

 

27,436

 

24,769

 

Repurchase agreement 3 (3)

 

50,000

 

50,137

 

13,759

 

Repurchase agreement 4

 

25,000

 

6,003

 

 

Repurchase agreement 5

 

40,000

 

12,502

 

 

Total short-term borrowings

 

$

185,000

 

$

131,690

 

$

58,691

 

 

 

(1)         In October 2012, the maximum borrowing capacity increased from $40.0 million to $47.5 million.

(2)         In August 2012, the maturity was extended to July 2013.

(3)         In August 2012, the maturity was extended to November 2012, and is expected to be renewed again at that time.  The amount over the maximum borrowing capacity is due to accrued interest.