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.
|