Quarterly report pursuant to Section 13 or 15(d)

Other Financing Lines of Credit (Tables)

v3.22.2
Other Financing Lines of Credit (Tables)
 6 Months Ended
Jun. 30, 2022
Other Financing Lines Of Credit [Abstract]  
Summary of components of other financing lines of credit The following summarizes the components of other financing lines of credit (in thousands)
 
 
 
 
 
 
 
 
 
 
Outstanding borrowings at
 
Maturity Date
 
Interest Rate
 
Collateral

Pledged
 
Total
Capacity
(1)
 
 
June 30, 2022
 
 
December 31,
2021
 
Mortgage Lines:
 
 
 
 
 
August 2022 - June 2023
   LIBOR / SOFR
+ applicable
margin		   First Lien
Mortgages		   $
 
 
 
 
 
 
 2,875,000    
$
 
 
 
 
 
945,532
 
   $
 
 
 
 
 1,802,348  
March 2026
   Ameribor +
applicable
margin		   MSRs     150,000    
 
120,209
 
     138,524  
August 2022 - September 2022
   SOFR +
applicable
margin		   Mortgage Related
Assets		     40,821    
 
40,821
 
     55,666  
           
 
 
    
 
 
    
 
 
  
Subtotal mortgage lines of credit
       $ 3,065,821    
$
1,106,562
 
   $ 1,996,538  
           
 
 
    
 
 
    
 
 
  
Reverse Lines:
                                
August 2022 - June 2023
   LIBOR / SOFR
+ applicable
margin		   First Lien
Mortgages		   $ 1,450,000    
$
773,871
 
   $ 714,013  
July 2022 - September 2022
   Bond accrual
rate +
applicable
margin		   Mortgage Related
Assets		     330,000    
 
293,345
 
     297,893  
September 2022
   LIBOR +
applicable
margin		   MSRs     90,000    
 
42,325
 
     78,952  
May 2023
   Prime + .50%;
6% floor		   Unsecuritized
Tails		     51,877    
 
43,376
 
     38,544  
           
 
 
    
 
 
    
 
 
  
Subtotal reverse lines of credit
       $ 1,921,877    
$
1,152,917
 
   $ 1,129,402  
           
 
 
    
 
 
    
 
 
  
Commercial Lines:
                                
August 2022
   LIBOR +
applicable margin		   Encumbered
Agricultural Loans		   $ 75,000    
$
22,221
 
   $ 25,127  
April 2023 - January 2024
 
LIBOR / SOFR
+ applicable
margin
 
First Lien
Mortgages
 
 
 
 
 
 
 
 
 
 
 
407,500
 
 
 
 
 
 
 
 
 
272,690
 
 
 
 
 
 
 
 
 
167,159
 
August 2022
 
10%
 
Second Lien
Mortgages
 
 
45,000
 
 
 
38,900
 
 
 
24,175
 
N/A
 
LIBOR +
applicable margin
 
Mortgage Related
Assets
 
 
—
 
 
 
—
 
 
 
5,041
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Subtotal commercial lines of credit
 
$
527,500
 
 
$
333,811
 
 
$
221,502
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Total other financing lines of credit
 
$
5,515,198
 
 
$
2,593,290
 
 
$
3,347,442
 
(1)
 
Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions, and covenants of the respective agreements, including asset-eligibility requirements. Capacity amounts presented are as of June 30, 2022.
Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios
As of June 30, 2022, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios):

Financial Covenants
  
Requirement
 
  
June 30, 2022
 
  
Maximum Allowable
Distribution
(1)
 
FAM
                           
Adjusted Tangible Net Worth
(2)
   
$
225,000
 
   
$
227,279
 
   
$
2,279
 
Liquidity
   
 
55,000
 
   
 
60,080
 
     
5,080
 
Leverage Ratio
   
 
13:1
 
   
 
8.7:1
 
   
 
75,388
 
Material Decline in Lender Adjusted Net Worth:
     


                   
Lender Adjusted Tangible Net Worth (Quarterly requirement)
(3
)

   
$
225,805
 
   
$
227,278
 
   
$
1,473
 
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly
requirement)
(3)

   
 
128,988
 
   
 
227,278
 
     
98,290
 
FAR
                           
Adjusted Tangible Net Worth
(2)
   
$
300,000
 
   
$
361,029
 
   
$
61,029
 
Liquidity
   
 
64,423
 
   
 
122,674
 
     
58,251
 
Leverage Ratio
   
 
6:1
 
   
 
4.2:1
 
     
106,461
 
 
(1)
 
The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary.
(2)
 
This amount is based on the most restrictive financing line of credit covenant.
(3)
 
This amount is the covenant calculation specific to FNMA.
As of December 31, 2021, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios):
 
Financial Covenants
   
Requirement
     
December 31, 2021
     
Maximum Allowable

Distribution
(1)
  
FAM
                           
Adjusted Tangible Net Worth
(2)
    $ 150,000      $ 180,032      $ 30,032  
Liquidity
      40,000        43,734        3,734  
Leverage Ratio
      15:1        13.9:1        12,154  
Material Decline in Lender Adjusted Net Worth:
                           
Lender Adjusted Tangible Net Worth (Quarterly requirement)
(3)
    $ 150,539      $ 214,979      $ 64,440  
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly
requirement)
(3)

      114,830        214,979        100,149  
FACo
                           
Adjusted Tangible Net Worth
    $ 85,000      $ 87,350      $ 2,350  
Liquidity
      20,000        32,728        12,728  
Leverage Ratio
      6:1        2.8:1        46,895  
FAR
                           
Adjusted Tangible Net Worth
    $ 417,826      $ 527,443      $ 109,617  
Liquidity
      20,000        23,845        3,845  
Leverage Ratio
      6:1        2.9:1        264,134  
 
(1)
 
The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary.
(2)
 
This amount is based on the most restrictive financing line of credit covenant.
(3)
 
This amount is the covenant calculation specific to FNMA.