Note 15 - Mortgage Credit Facility

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Disclosure of Warehouse Agreement Borrowings [Text Block]

1

5.

     

Mortgage Credit Facility

At

September 30, 2017,

we had

$152.8

million outstanding under our mortgage financing subsidiary’s mortgage credit facility. This mortgage credit facility consisted of a

$300

million uncommitted repurchase facility, maturing in

June 2018.

This facility requires our mortgage financing subsidiary to maintain cash collateral accounts, which totaled

$3.0

million as of

September 30, 2017,

and also contains financial covenants which require CalAtlantic Mortgage to, among other things, maintain a minimum level of tangible net worth,

not

to exceed a debt to tangible net worth ratio, maintain a minimum liquidity amount based on a measure of total assets (inclusive of the cash collateral requirement), and satisfy pretax income (loss) requirements. As of

September 30, 2017,

CalAtlantic Mortgage was in compliance with the financial and other covenants contained in this facility.