Derivative And Hedging Instruments

9 Months Ended

Sep. 30, 2013

Derivative And Hedging Instruments [Abstract]

Derivative And Hedging Instruments

7.           DERIVATIVE AND HEDGING INSTRUMENTS

Interest Rate Caps.  We utilize interest rate cap agreements to manage the interest rate risk on our Warehouse facilities.  The following tables provide the terms of our interestrate cap agreements that were in effect as of September 30, 2013 and December 31, 2012: 

(Dollars in millions)
As of September 30, 2013
Facility		Facility Name	Purpose	Start	End	Notional		Cap Interest Rate (1)
$	325.0	Warehouse Facility II	Cap Floating Rate	06/2013	12/2014	$	325.0	5.50	%
	75.0	Warehouse Facility III	Cap Floating Rate	06/2012	07/2015		56.3	5.00	%
	75.0	Warehouse Facility IV	Cap Floating Rate	08/2011	09/2015		75.0	5.50	%

(Dollars in millions)
As of December 31, 2012
Facility		Facility Name	Purpose	Start	End	Notional			Cap Interest Rate (1)
$	325.0	Warehouse Facility II	Cap Floating Rate	07/2011	06/2013	$	325.0		6.75	%
	75.0	Warehouse Facility III	Cap Floating Rate	09/2010	09/2013		37.5		6.75	%
	75.0	Warehouse Facility III	Cap Floating Rate	06/2012	07/2015		18.8	(2)	5.00	%
	75.0	Warehouse Facility IV	Cap Floating Rate	08/2011	09/2015		75.0		5.50	%

(1) Rate excludes the spread over the LIBOR rate or the commercial paper rate, as applicable.

(2)The notional amount increases to $56.3 million in September 2013 when the original Warehouse Facility III interest rate cap for $37.5 million ends.

The interest rate caps have not been designated as hedging instruments.  As of September 30, 2013 and December 31, 2012, the interest rate caps had a fair value of less than $0.1 million as the capped rates were significantly above market rates.