| Summary of components of other financing lines of credit |
The following summarizes the components of other financing lines of credit (in thousands):
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Outstanding borrowings at |
| Maturity Date |
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Interest Rate |
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Collateral Pledged |
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Total Capacity(1)
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September 30, 2022 |
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December 31, 2021 |
| Mortgage Lines: |
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| October 2022 -August 2023 |
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SOFR + applicable margin |
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First Lien Mortgages |
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$ |
2,000,000 |
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$ |
601,635
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$ |
1,802,348 |
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| March 2026 |
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Ameribor + applicable margin |
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MSRs |
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50,000 |
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10,227
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138,524 |
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| November 2022 - December 2022 |
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SOFR + applicable margin |
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Mortgage Related Assets |
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39,065 |
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39,065
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50,559 |
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| November 2022 |
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SOFR + applicable margin |
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HI Consumer Loans |
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50,000 |
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11,770
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5,107 |
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| Subtotal mortgage lines of credit |
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$ |
2,139,065 |
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$ |
662,697
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$ |
1,996,538 |
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| Reverse Lines: |
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| November 2022 - September 2023 |
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LIBOR + applicable margin |
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First Lien Mortgages |
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$ |
1,475,000 |
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$ |
935,434
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$ |
714,013 |
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| October 2022 |
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Bond accrual rate + applicable margin |
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Mortgage Related Assets |
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345,000 |
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292,524
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297,893 |
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| N/A |
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LIBOR + applicable margin |
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MSRs |
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— |
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— |
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78,952 |
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| May 2023 |
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Prime + .50%; 6% floor |
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Unsecuritized Tails |
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50,000 |
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40,000
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38,544 |
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| Subtotal reverse lines of credit |
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$ |
1,870,000 |
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$ |
1,267,958
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$ |
1,129,402 |
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| Commercial Lines: |
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| August 2023 |
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2.50% / 3.25% |
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Encumbered Agricultural Loans |
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$ |
75,000 |
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$ |
27,310
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$ |
25,127 |
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| April 2023 - November 2023 |
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Ameribor + applicable margin |
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First Lien Mortgages |
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309,000 |
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290,534
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167,159 |
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| February 2023 |
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15% |
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Second Lien Mortgages |
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45,000 |
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45,000
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24,175 |
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| January 2024 |
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SOFR + applicable margin |
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Mortgage Related Assets |
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12,500 |
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12,500
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5,041 |
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| Subtotal commercial lines of credit |
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$ |
441,500 |
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$ |
375,344
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$ |
221,502 |
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| Total other financing lines of credit |
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$ |
4,450,565 |
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$ |
2,305,999
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$ |
3,347,442 |
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(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 September 30, 2022.
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| Summary of maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios |
As of September 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):
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| Financial Covenants |
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Requirement |
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September 30, 2022 |
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Maximum Allowable Distribution(1)
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| FAM |
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Adjusted Tangible Net Worth(2)
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$ |
150,000
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$ |
174,785
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$ |
24,785
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| Liquidity |
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55,000
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66,098
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11,098
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| Leverage Ratio |
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13:1 |
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8.9:1 |
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55,118
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| Material Decline in Lender Adjusted Net Worth: |
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Lender Adjusted Tangible Net Worth (Quarterly requirement)(3)
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$ |
170,459
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$ |
174,785
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$ |
4,326
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Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement)(3)
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174,734
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174,785
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51
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| FAR |
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Adjusted Tangible Net Worth(2)
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$ |
250,000
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$ |
250,750
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$ |
750
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| Liquidity |
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20,000
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69,951
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49,951
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| Leverage Ratio |
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7:1 |
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6.2:1 |
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30,765
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(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):
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| Financial Covenants |
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Requirement |
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December 31, 2021 |
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Maximum Allowable Distribution(1)
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| FAM |
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Adjusted Tangible Net Worth(2)
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$ |
150,000 |
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$ |
180,032 |
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$ |
30,032 |
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| Liquidity |
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40,000 |
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43,734 |
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3,734 |
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| Leverage Ratio |
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15:1 |
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13.9:1 |
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12,154 |
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| Material Decline in Lender Adjusted Net Worth: |
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Lender Adjusted Tangible Net Worth (Quarterly requirement)(3)
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$ |
150,539 |
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$ |
214,979 |
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$ |
64,440 |
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Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement)(3)
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114,830 |
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214,979 |
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100,149 |
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| FACo |
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| Adjusted Tangible Net Worth |
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$ |
85,000 |
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$ |
87,350 |
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$ |
2,350 |
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| Liquidity |
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20,000 |
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32,728 |
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12,728 |
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| Leverage Ratio |
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6:1 |
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2.8:1 |
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46,895 |
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| FAR |
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| Adjusted Tangible Net Worth |
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$ |
417,826 |
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$ |
527,443 |
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$ |
109,617 |
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| Liquidity |
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20,000 |
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23,845 |
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3,845 |
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| Leverage Ratio |
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6:1 |
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2.9:1 |
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264,134 |
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(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.
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