| 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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March 31, 2024 |
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December 31, 2023 |
| Reverse Lines: |
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| June 2024 - October 2026 |
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Bloomberg short-term
bank yield (“BSBY”) index/Secured Overnight Financing Rate (“SOFR”) + applicable margin |
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First Lien Mortgages |
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$ |
932,500 |
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$ |
433,829
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$ |
432,918 |
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Various(2)
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Bond accrual rate/SOFR + applicable margin |
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Mortgage Related Assets |
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498,228 |
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482,228
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344,367 |
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| October 2027 |
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SOFR + applicable margin |
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MSR |
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70,000 |
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69,231
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69,231 |
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| October 2024 |
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BSBY + applicable margin |
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Unsecuritized Tails |
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30,000 |
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28,750
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23,620 |
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| Subtotal reverse lines of credit |
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$ |
1,530,728 |
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$ |
1,014,038
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$ |
870,136 |
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| Mortgage Lines: |
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| October 2024 |
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BSBY + applicable margin |
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First Lien Mortgages |
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$ |
12,500 |
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$ |
1,446
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$ |
2,135 |
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Various(2)
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Bond accrual rate + applicable margin |
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Mortgage Related Assets |
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35,707 |
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35,707
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36,208 |
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| Subtotal mortgage lines of credit |
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$ |
48,207 |
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$ |
37,153
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$ |
38,343 |
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| Commercial Lines: |
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| July 2024 |
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SOFR + applicable margin |
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Mortgage Related Assets |
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$ |
20,000 |
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$ |
20,000
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$ |
20,000 |
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| Total other financing lines of credit |
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$ |
1,598,935 |
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$ |
1,071,191
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$ |
928,479 |
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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 March 31, 2024.
(2)These lines of credit are tied to the maturity date of the underlying mortgage related assets that have been pledged as collateral.
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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 March 31, 2024, 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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March 31, 2024 |
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Maximum Allowable Distribution(1)
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| FAM |
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| Adjusted Tangible Net Worth |
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$ |
10,000
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$ |
10,667
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$ |
667
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| Liquidity |
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1,000
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2,300
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1,300
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| FAR |
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| Adjusted Tangible Net Worth |
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$ |
250,000
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$ |
474,156
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$ |
224,156
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| Liquidity |
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40,000
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42,731
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2,731
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| Leverage Ratio |
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6:1 |
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3.2:1 |
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219,827
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| FAH |
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| Adjusted Tangible Net Worth |
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$ |
220,000
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$ |
456,467
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$ |
236,467
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| Liquidity |
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40,000
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45,763
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5,763
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| Leverage Ratio |
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10:1 |
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3.7:1 |
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288,165
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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.
As of December 31, 2023, 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, 2023 |
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Maximum Allowable Distribution(1)
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| FAM |
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| Adjusted Tangible Net Worth |
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$ |
10,000 |
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$ |
15,264 |
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$ |
5,264 |
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| Liquidity |
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1,000 |
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2,254 |
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1,254 |
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| FAR |
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| Adjusted Tangible Net Worth |
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$ |
250,000 |
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$ |
447,571 |
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$ |
197,571 |
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| Liquidity |
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40,000 |
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41,656 |
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1,656 |
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| Leverage Ratio |
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6:1 |
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3.0:1 |
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223,460 |
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| FAH |
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| Adjusted Tangible Net Worth |
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$ |
220,000 |
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$ |
446,321 |
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$ |
226,321 |
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| Liquidity |
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40,000 |
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45,282 |
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5,282 |
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| Leverage Ratio |
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10:1 |
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3.3:1 |
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297,445 |
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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.
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