Derivative and Hedging Instruments

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative and Hedging Instruments

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, 2014 and December 31, 2013:

As of September 30, 2014
Facility (in millions)		Facility Name	Purpose	Start	End	Notional (in millions)		Cap Interest Rate (1)
$	325.0	Warehouse Facility II	Cap Floating Rate	06/2013	12/2014	$	325.0	5.50	%
75.0		Warehouse Facility IV	Cap Floating Rate	08/2011	09/2015	41.7		5.50	%
75.0		Warehouse Facility IV	Cap Floating Rate	03/2014	03/2017	33.3		5.50	%
75.0		Warehouse Facility V (2)	Cap Floating Rate	06/2012	07/2015	56.3		5.00	%

As of December 31, 2013
Facility (in millions)		Facility Name	Purpose	Start	End	Notional (in millions)		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 (2)	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	%

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

(2) The interest rate caps associated with this facility were assigned from Warehouse Facility III to Warehouse Facility V in connection with the renewal of the facility during the third quarter of 2014.

The interest rate caps have not been designated as hedging instruments.  As of September 30, 2014 and December 31, 2013, the interest rate caps had a fair value of less than $0.1 million as the capped rates were significantly above market rates.